ΣΧΕΔ

ΙΑΣΜ

ΟΣ

- Π

ΑΡΑ

ΓΩΓΗ

280, Thisseos Avenue176 75 Kallithea, Athens GREECETel.: +30 210 9472222 , Fax: +30 210 9472223

www.newsphone.gr

According to the provisions of article 16 of decision No. 5/204/14.11.2000 of the Board of Directors of the Capital Market Commission, as amended under decision No. 7/372/15.02.2006 of the Board of Directors of

the Capital Market Commission.

�

5

6

9

13

15

53

58

61

63

�

INFORMATION ON THE DRAFTING OF THE ANNUAL REPORT

The Annual Report includes all the necessary information and financials for the fair valuation, of the property, financial status, results and prospects of the company under the legal name NEWSPHONE HELLAS S.A. (hereon the “Company” or “NEWSPHONE HELLAS S.A.”), by their investors and their investment advisors.Investors interested for further information may contact, during working days and hours the Company’s head offices, 280 Thiseos Ave., P.C. 176 75 Athens:• Mr. E. Apergis, Managing Director, 280 Thiseos Ave., tel. +30 210 94 72 222.• Mrs. E. Giatra, Financial Manager, 280 Thiseos Ave., tel. +30 210 94 72 222.

The compilation and distribution of the current Annual Report is in accordance with the provisions of decision No. 5/204/14.11.2000 of the Capital Market Commission, as amended under decision No. 7/372/15.02.2006 of the Board of Directors of the Capital Market Commission.

The people responsible for the compilation and accuracy of the information within the Annual Report are listed below:

• Mr. E. Apergis, Managing Director, resident of Athens, 280 Thiseos Ave., tel. 210 94 72 222.• Mrs. E. Giatra, Financial Manager, resident of Athens, 280 Thiseos Ave., tel. 210 94 72 222.

The Company’s Board of Directors declares that all of its members have been informed about the contents of the current Annual Report and along with their editors confirm and believe that:

• All information and data included within the Annual Report is complete and actual.• There are no further facts and no other incidents have taken part, concealed or omitted so as to render the entire or part of the data and information of the Annual Report.

Chartered Auditors-AccountantsThe Company is audited by charted accountants.

The Company’s audit for fiscal year 2006 was conducted by the Chartered Auditor - Accountant Mrs. Reggina S. Loukisa (REG. NO. ICPA 13.791) of the company S.O.L. S.A., 3 Fokionos Negri, tel: 210 86 91 100-107. The same Chartered Auditor-Accountant conducted the audit of the consolidated financial statements of the Company.

6

REPORT OF THE BOARD OF DIRECTORS

Report of the Board of Directors to the Ordinary General Shareholders Meeting regarding the Annual Company and Consolidated Financial Statements, dated 31st December 2006,

as well as the financial year 2006 results

Dear Shareholders,I welcome you and thank you for attending the annual General Shareholder Meeting.The NEWSPHONE group consists of the parent company NEWSPHONE HELLAS and the subsidiaries CALL CENTRE HELLAS SA, by a percentage of 70 % and NOETRON ADVANCED IT APPLICATIONS SA, by 74.998 %. 2006 was yet another year of growth, recognition and success for our group. During this financial year, NEWSPHONE HELLAS succeeded in expanding its turnover and profits. This year could be regarded as an especially successful one, not only due to the improvement of its financial results, but also with regard to business developments, which have set a solid and healthy basis for further expansion in the coming years. The group is now active in 3 business units. • High-added value services, available to the public either in cooperation with land-based and mobile telephone networks or directly via Newsphone Hellas branded services. • E-government services, through which the group has turned into the state’s strategic associate with respect to the development of innovative services, which aim at improving citizens’ services. • Telephone Directory services. The group has been the first alternative telephone directory provider, following the liberalisation of the respective market. The Management’s intention is the promotion of a balanced growth in all areas of the group’s activities, in order to attain synergies and to ensure business risk dispersion, to counterbalance eventual deficiency or delay of one business unit. The common ground in all activities involved lies with content data collection, processing and management. NEWSPHONE has developed a significant know-how and specialisation in this field; this is reflected by the group’s success both in the completion of its projects as well as the performance of daily business and operations. The use of a shared body of knowledge in different projects implies the achievement of economies of scale and the improvement of financial results.The most important corporate developments, per business unit, of this past financial year are listed below:• In the Added-value Services’ Sector, the group successfully completed Mobile Marketing projects, and it recorded for the first time in its turnover, sales outside Greece. The respective total turnover for 2006 exceeded EUR 10 million.• In the field of E-government the 2006 financial year was characterised by 3 important tenders, with a total budget of EUR 25.2 million that were awarded to the company by the Greek State. The projects concern a) the Provision of services through the development and operation of the necessary infrastructures for the service of the Citizen Service Centres (KEP), b) The award of Information Call Centre Services Helpline for OSE customers and c) The provision of Infrastructure and Services for Productive Operation of the Health Services Demand Management System (SDZYY), with regard to Central Call Centres (KTME) and Health units (MY) of the Social Security Institute (IKA) in the entire country. NEWSPHONE’s dominance in the above tenders is a clear sign of the trust that it enjoys with regard to the execution of e-government projects that it undertakes.

�

REPORT OF THE BOARD OF DIRECTORS

In the sector of telephone directory services, 2006 was the benchmark year for the service provided by the parent company through the 11880 phoneline. The management of NEWSPHONE is especially satisfied from the acceptance of the service as well as from the market share increase. Moreover, it expects an even greater future utilisation of a significant asset, which is 11880. During the financial year, the D.A. services gradually became accessible by the networks of the mobile phone companies such as Tim, Cosmote and Vodafone. It is noted that this business unit includes the telephone directory service 11833, which is operated on behalf of the VODAFONE group. Finally, the group strengthened even more its presence in this particular market by providing phone directory services through 11821. The said service is provided by subsidiary company NOETRON.

Comments on the Results of the Previous Financial Year With regard to the development of the results statement, the main data of the 2006 financial year are the following: The group’s income amounted to EUR 46.8 million, increased by 36.8% compared to 2005. Pre-tax profits, interest, amortisations and financial and investment results (Earnings Before Taxes Depreciation and Financial & Investment Results) amounted to EUR 8.6 million in 2006, increased by 14.1% compared to 2005. The group’s pre-tax income amounted to EUR 6.1 million, increased by 4.4% compared to 2005.The group’s profitability after taxes and minority rights for 2006 amounted to EUR 4.3 million, increased by 10.7% compared to 2005.It must be noted that the financial year 2006 incurred payments that decreased its profitability by EUR 641 thousand. The said amounts refers on the one hand to the full amortisation of the unamortised part of an intangible asset, which is assessed to be of no use any longer during the group’s productive procedure and on the other, to the creation of provisions for bad debts.

With respect to balance sheet data of 2006, we note the following:The group’s net investments in fixed equipment, necessary for the provision of services, amounted to EUR 1.5 million. The major part of this amount concerns the creation of necessary infrastructures for the completion of the project associated with provision of support services to the Social Security Institute (IKA).Liabilities from customers of the Group as well as other liabilities were significantly increased in 2006 and amounted to EUR 39.5 million compared to EUR 29.6 for 2005. A major part of this increase is due to provided services associated to IKA and Citizen Service Centres (KEP) projects, which were paid within 2007. It must be noted that the above procedure is the one specified by the signed agreements and the group is paid regularly. However, it must be noted that the group’s two primary customers, the Greek State and mobile or land-line companies, are customers with great credibility and therefore they are not likely to create any essential bad debt issues regarding group liabilities.The group’s reserves on 31 December 2006 are especially increased and amount to EUR 6.1 million. Approximately, half of the reserves are blocked bank deposits used for the issuance of letters of guarantees for the execution of IKA and KEP projects. The equity paid to shareholders of the parent company was increased due to the profitable financial year and amounted to EUR 15.8 million on 31 December 2006, forming a very satisfactory equity performance index of 27%.The aforementioned increase of the group’s liabilities has significantly raised its needs for working capital, which was financed through bank loans, the remaining balance of which amounted to EUR 15.9 million on 31 December 2006. It must be noted that the said bank liabilities concern, to a great extent, the pre-payment of invoiced liabilities and are linked to agreements awarded to the group, regarding projects of the Greek State.

8

REPORT OF THE BOARD OF DIRECTORS

Moreover, the suppliers balance increased significantly on 31 December 2006, due to customer advance payments. In particular, an amount of EUR 4.5 million concerns advance payments for IKA and KEP projects.

Dividend PolicyWithout prejudice to its acceptance by the Ordinary General Shareholders Meeting, the Company’s Board of Directors, recommends the amount of EUR 0.10 per share as dividend, taking into consideration the results of the financial year 2006 and the business planning for financial year 2007 as well as the Group’s estimated capital needs.Concluding, I would like to express the management’s optimism regarding the progress of the group’s operations in the next financial years. NEWSPHONE HELLAS is carefully planning the next steps of its expansion both in Greece and abroad. The group’s strategic planning, provides for a balanced long-term growth, which takes advantage and utilises in the best possible way the skills and know-how that has been developed.

Kallithea, 05 March 2007

The Chairman of the Board of Directors

Georgios TheodosisID Card No. K-820079

�

EXPLANATORY REPORT OF THE BOARD OF DIRECTORS

BRIEFING REPORTTO THE ORDINARY GENERAL SHAREHOLDERS MEETING OF NEWSPHONE HELLAS S.A.

ACCORDING TO ARTICLE 11a OF LAW 3371/2005

Regarding the provisions of Article 11a of Law 3371/2005 and the obligation to provide detailed briefing, we would like to inform the shareholders of the following:

1. Share Capital Structure.

The Company’s share capital amounts to eight million, three hundred fifty four thousand and four hundred euro (EUR 8,354,400.00), divided into twenty seven million and eight hundred forty eight thousand (27,848,000) ordinary registered shares, with a right to vote, of a nominal value of 30 euro cents (0.30 €) each. The shares are listed on the Athens Stock Exchange. According to the company’s Articles of Association, each share grants the right of one vote in the General Meeting.Each ordinary registered Company share incorporates all the rights and obligations stipulated by the Law and the Company’s Articles of Association, which do not stipulate provisions more restrictive than those provided by Law. The Company’s Articles of Association do not state special rights in favour of certain shareholders.Shareholder liability is limited to the nominal value of the shares they own. The shareholders participate in the Company’s Management and profits pursuant to the Law and the provisions of the Articles of Association. The rights and obligations arising from each share are embodied in same and transferred to any general or special shareholder assignee. The shareholders exercise their rights with respect to the Company’s Management, only through the General Meetings. The shareholders have pre-emptive rights in every future increase of the Company Share Capital, depending on their participation in the existing share capital, as stipulated in Article 13, paragraph 5, of Codified Law 2190/1920. Each share grants the right to liquidation proceeds of the company’s property, in the event of Company dissolution and to the distribution of its profits on the basis of a ratio of the paid share capital to the total paid share capital. In case of a share capital increase, which may not be carried out (a) through a contribution in-kind or (b) the issue of bonds with a right of conversion into shares or (c) within the framework of a Stock Option Plan, pursuant to paragraph 9, Article 13, of Codified Law 2190/1920, the pre-emptive right is granted to the entire new capital or bond loan in favour of shareholders at the time of issuance, depending on their participation in the existing share capital. Upon request of the shareholders, who represent one twentieth (1/20) of the paid share capital (a) the Board of Directors is bound to call an extraordinary General Meeting, (b) the Chairman of the Meeting is bound to postpone, only once, the decision-making process of the General Meeting, whether ordinary or extraordinary, regarding all or certain issues, (c) the Board of Directors is bound to announce to the General Shareholder

1 0

EXPLANATORY REPORT OF THE BOARD OF DIRECTORSEXPLANATORY REPORT OF THE BOARD OF DIRECTORS

Meeting the amounts paid by the Company during the last two years to members of the Board of Directors or the Managers or its employees for any reason, as well as any other benefits granted to these parties or agreement of whatever nature between same and the Company and provide certain required information on Company affairs, if necessary for the actual evaluation of issues on the agenda, (d) decisions on agenda items of the General Meeting will be taken on roll call. Furthermore, shareholders representing one twentieth (1/20) of the paid share capital have the right to request the audit of the Company by the competent court of the district where the Company’s has its registered office. Shareholders representing one third (1/3) of the paid share capital (a) are entitled to request from the Board of Directors, which in turn must provide them or their representative if preferable, with information on company affairs and assets during or prior to the General Meeting, (b) may request the audit of the company from the competent court of the district where the Company has its registered office, if the course of events regarding company affairs in general demonstrates that management is not sound and ethical. In the aforementioned cases under points 3 and 4, the shareholders making the request are obligated to deposit the shares entitling them to the aforementioned rights (points 3 and 4) for the time periods set by Codified Law 2190/1920. Ten (10) days before the Ordinary General Meeting, every shareholder can ask for the annual financial statements and the relevant reports of the Board of Directors and the Auditors. The dividend for each share is paid to the shareholders within two (2) months from the date of the Ordinary General Shareholder Meeting that approved the annual financial statements. The manner and place of payment will be announced through the Press.Dividends that have not been collected after a period of five years, are payable to the State.As far as the procedure for depositing shares, in order for the shareholder to participate in the Company’s General Shareholder Meetings and in the dividend payment process, the stipulated guidelines of the Operating Regulation of Liquidation of the Book Entry System of the Central Securities Depository will be applicable, as each time in force.

2. Limitations in Transferring Company Shares.

There are no limitations in transferring company shares

3. Significant Direct or Indirect Participations Pursuant to the provisions of Presidential Decree 51/1992.

The significant direct and indirect participations in the Company’s share capital pursuant to Presidential Decree 51/1992 on 31 December 2006 are as follows:

Full Name of Shareholder Number of Shares Percentage of Share Capital

THEODOSIS MALIOURIS GEORGIOS 8,568,160 30.76%

Direct Participation 6,473,160 23.24%

Indirect Participation 2,095,000 7.52%

COMMERZBANK AGFRANKFURT A/C COMINVEST 2,036,000 7.31%

EXPLANATORY REPORT OF THE BOARD OF DIRECTORS

11

EXPLANATORY REPORT OF THE BOARD OF DIRECTORS

EXPLANATORY REPORT OF THE BOARD OF DIRECTORS

4. Shareholders that have special control rights and description of respective rights.

There are no Company shares granting their owners special control rights.

5. Voting Right Limitations.

No voting right restrictions, arising from its shares, are stipulated by the Company’s Articles of Association.

6. Agreements between shareholders, which constitute limitations in the transfer of shares or voting rights.

The Company is not aware of any agreements whatsoever between its shareholders that establish limitations to the transfer of Company shares or the exercise of voting rights.

7. Regulations on the appointment and replacement of BoD members and on the amendment of Articles of Association, differentiating them to the ones stipulated by Codified Law 2190/1920.

Pursuant to the provisions of Article 19 of the Company’s Articles of Association:• The Company is managed by the BoD, which consists of 3 to 7 members.• The term of the BoD members is five years.• The members can be re-elected.

8. Competency of the BoD or of certain BoD members regarding the issuance of new shares or the purchase of own shares, pursuant to Article 16 of Codified Law 2190/1920.

Pursuant to the provisions of Article 13, par. 1, section B of Codified Law 2190/1920 the BoD has the right to increase the Company’s share capital, following a decision by the General Meeting, which is subject to the obligations of publications. For this decision an extraordinary quorum of two thirds (2/3) is required and according to Article 5 of the Company’s Articles of Association, the share capital may increase up to four times the paid capital or two times of same, following the approval of the relevant amendment of the Articles of Association. According to the provisions of paragraph 5 to 13 of Article 16 of Codified Law 2190/1920, the companies listed on the Athens Stock Exchange may, following a decision by their General Shareholders Meeting, own up to 10% of their total shares for the purpose of supporting their stock market value and based on the special particular terms and procedures that are provided in the above paragraphs.

9. Agreements that have been signed by the company, which come into force, are amended, or terminated in the event of change of Company control, following a takeover bid.

There are no agreements, which come into force or are amended in the event of change of Company control, following a takeover bid.

1 2

EXPLANATORY REPORT OF THE BOARD OF DIRECTORS

10. Agreements with BoD Members or Company Personnel.

There are no agreements between the Company and members of the Board of Directors or its personnel, which provide for the payment of compensation, especially in the event of resignation or termination of employment without reasonable grounds or termination of term or employment due to a takeover bid.

Kallithea, 23 April 2007

The Company’s Board of Directors

Theodosis Maliouris Georgios Chairman of the BoD

EXPLANATORY REPORT OF THE BOARD OF DIRECTORS

1�

AUDIT REPORT OF THE INDEPENDENT CHARTERED AUDITOR - ACCOUNTANT

TO The ShARehOlDeRS OF The COMPAnY “neWSPhOne hellAS S.A.”

Report on the Financial Statements.

We have audited the accompanying financial statements of the company “NEWSPHONE HELLAS S.A.” (the company) as well as the consolidated financial statements of the Company and its subsidiaries (the Group) which comprise the company and consolidated balance sheet as of 31-12-2006, and the income statement, statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards as adopted by the European Union. This responsibility includes: designing, implementing and maintaing internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. This responsibility also includes the selection and application of appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Greek Auditing Standards which are based on the International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement on the financial statements, whether due to fraud or error. In making those risk assessments, the audito considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriatness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained its sufficient and appropriate to provide a basis for our audit opinion.

1 4

AUDIT REPORT OF THE INDEPENDENT CHARTERED AUDITOR - ACCOUNTANT

Opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company and the Group as of 31 December 2006 and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards, as adopted by the European Union.

Without stating reservation regarding the conclusions of the audit we call your attention to:1. The income tax returns of the company and the group for the years 2002 until 2006 have not been audited by the tax authorities, with the result, there is the possibility additional taxes and accessions to be imposed in the year that they will be examined and finalized. The result of the tax audit it is not possible to be predicted at this time, and for this reason, no provision on the financial statements for this issue has made. (Related note on paragraph 6.25 of the Appendix).2. It is noted that there is a delay in the payment of liabilities from the State and the general Public sector, of a total amount of EUR 15.3 million of which 11.3 are litigious. In particular, the company has filed a claim (30 December 2005), before the Administrative Courts of Appeal of Athens and until today a hearing date has not been set. According to the opinion of the Legal Counsel the claim is quite likely to be successful in favour of the company. (Relevant reference in par. 6.25 of the annex).

Report on Other Lagal and Regulatory Requirements

The information included in the Board of Director’s Report is consistent with the accompanying financial statements.

Athens, March 12, 2007The Certified Auditor - Accountant

Loukissa S. Reginna SOEL Reg. No. 13791

SOL S.A.

AUDIT REPORT OF THE INDEPENDENT CHARTERED AUDITOR - ACCOUNTANT

1�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

InCOMe STATeMenT

Note The GROUP The COMPAnY

From 1st January till From 1st January till

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Sales 5 46,765,566.18 34,165,158.59 45,038,273.08 32,758,375.00

Cost of sales 6.18 (29,477,519.46) (19,219,340.65) (28,914,413.14) (18,902,187.92)

Gross profit 17,288,046.72 14,945,817.94 16,123,859.94 13,856,187.08

Other income 6.20 175,331.72 -- 209,895.59 --

Administrative expenses 6.19 (4,076,002.49) (3,504,942.86) (3,027,987.91) (2,776,947.09)

Research and development expenses

6.19(20,793.27) (146,543.94) (20,793.27) (146,543.94)

Selling expenses 6.19 (6,256,252.53) (4,855,169.36) (6,016,050.91) (4,589,555.43)

Profits before interests and taxes 7,110,330.15 6,439,161.78 7,268,923.44 6,343,140.62

Financial expenses 6.21 (1,002,295.46) (627,460.59) (839,297.15) (508,409.51)

Financial revenues 6.21 41,505.78 6,726.30 39,815.16 6,650.01

Other financial results 6.21 (17,184.65) 56,016.56 (242,179.65) 56,016.56

Profits before tax 6,132,355.82 5,874,444.05 6,227,261.80 5,897,397.68

Income tax 6.22 (1,941,866.76) (2,023,044.35) (1,907,235.12) (1,959,492.03)

net Profits after taxes 4,190,489.06 3,851,399.70 4,320,026.68 3,937,905.65

Distributable to:

Equity holders of the company

4,264,663.08 3,850,545.82 4,320,026.68 3,937,905.65

Minority rights (74,174.02) 853.88 0.00 0.00

net profits per share

Basic and diluted (in €) 6.23 0.15 0.14 0.16 0.14

Proposed dividend per share - (in €) 0.10 0.10 0.10 0.10

The attached notes on pages ( 20-52) are an integral part of the financial statements.

1 6

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

BAlAnCe SheeT

THE GROUP THE COMPANY

ASSeTS Note 31.12.2006 31.12.2005 31.12.2006 31.12.2005

non-current assets

Tangible assets 6.1 4,959,689.77 4,552,610.77 4,086,842.47 3,819,648.49

Intangible assets 6.2 523,814.22 965,174.02 224,404.49 521,888.37

Other long term receivables 6.4 110,925.74 92,010.12 66,577.39 72,436.87

Investments in affiliated companies 6.3 -- -- 3,122,946.31 3,347,946.31

Deferred income tax 6.5 -- 99,275.2 37,583.97 108,252,82

Total non-Current Assets 5,594,429.73 5,709,070.14 7,538,354.63 7,870,172.86

Current assets

Inventories 6.6 163,477.50 119,534.00 43,943.50 --

Clients and other receivables 6.7 34,571,735.53 24,944,964.62 31,657,534.41 23,023,456.59

Other receivables 6.8 4,933,012.90 4,637,127.45 5,050,802.75 4,444,428.90

Financial assets a fair value through results 6.9 491,763.49 499,287.72 491,763.49 499,287.72

Cash and cash equivalent 6.10 6,716,145.21 2,532,101.10 6,318,009.80 1,873,005.69

Total current assets 46,876,134.63 32,733,014.89 43,562,053.95 29,840,178.90

Total Assets 52,470,564.36 38,442,085.03 51,100,408.58 37,710,351.76

TOTAl eQUITY AnD lIABIlITY

equity 6.11

Share Capital 8,354,400.00 8,354,400.00 8,354,400.00 8,354,400.00

Share premium 3,941,804.84 3,941,804.84 3,941,804.84 3,941,804.84

Αποθεματικά 1,086,464,19 870,462,86 1,083,248,71 867,247,38

Other reserves 2,407,294.72 1,143,434.46 4,907,156.80 3,587,931.45

15,789,963.75 14,310,102.16 18,286,610.35 16,751,383.67

Minority interests 367,435.64 441,603.17 -- --

Total equity 16,157,399.39 14,751,705.33 18,286,610.35 16,751,383.67

lIABIlITIeS

long term liabilities

Long term bank liabilities 6.12 1,406,250.00 -- -- --

Employee benefit provisions 6.13 493,509.93 413,750.14 294,124.18 230,822.00

Deferred tax liabilities 6.5 6,025.26 -- -- --

Financial leasing long term liabilities 6.14 445,464.84 513,715.77 309,058.81 343,461.54

Grants of assets 6.15 68,539.24 33,209.92 43,631.80 --

Total long term liabilities 2,419,789.27 960,675.83 646,814.79 574,283.54

Short term liabilities

Suppliers and other liabilities 6.16 17,102,775.78 11,346,286.20 16,932,093.78 10,245,367.70

Current income tax 6.17 1,697,809.68 1,353,412.85 1,697,809.68 1,353,412.85

Short term bank liabilities 6.12 14,467,207.52 9,347,807.62 13,116,786.82 8,403,667.37

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

1�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Financial leasing short term liabilities 6.14 625,582.72 582,197.20 420,293.16 282,236.63

Provision -- 100,000.00 -- 100,000.00

Total Short term liabilities 33,893,375.70 22,729,703.87 32,166,983.44 20,384,684.55

Total liabilities 36,313,164.97 23,690,379.70 32,813,798.23 20,958,968.09

Total equity and \liabilities 52,470,564.36 38,442,085.03 51,100,408.58 37,710,351.76

For reasons of proper information, certain rearrangements have been made in the balance sheet funds on 31 December 2005 (note 6.21)

The attached notes on pages ( 20-52) are an integral part of the financial statements.

1 8

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

STA

TeM

enT

OF

Ch

An

GeS

In

eQ

UIT

Y

The

GR

OU

P Sh

are

capi

tal

Shar

e pr

emiu

mO

ther

rese

rves

Reta

ined

earn

ings

Tota

l Equ

ityof

par

enta

l com

pany

’s

shar

ehol

ders

Min

ority

Rig

hts

Tota

l Equ

ity

Bala

nce

as o

f 1st

Jan

uary

20

058,

354,

400.

003,

941,

804.

8467

9,23

5.06

2,45

0,63

1.85

15,4

26,0

71.7

567

1,03

3.88

16,0

97,1

05.6

3

Inte

rcom

pany

elim

inat

ion o

f ac

quisi

tion o

f sha

reho

ldin

g to

a

subs

idia

ry

----

--(2

,181

,715

.41)

(2,1

81,7

15.4

1)(2

30,2

84.5

9)(2

,412

,000

.00)

Divid

ends

pai

d--

----

(2,7

84,8

00.0

0)(2

,784

,800

.00)

-- (2

,784

,800

.00)

Rese

rves

----

191,

227.

80(1

91,2

27.8

0)--

----

Net

pro

fits o

f FY

2005

----

--3,

850,

545.

823,

850,

545.

8285

3.88

3,85

1,39

9.70

Bala

nce

as o

f 31s

t De

cem

ber

2005

8,35

4,40

0.00

3,94

1,80

4.84

870,

462.

861,

143,

434.

4614

,310

,102

.16

441,

603.

1714

,751

,705

.33

Bala

nce

as o

f 1st

Jan

uary

20

068,

354,

400.

003,

941,

804.

8487

0,46

2.86

1,14

3,43

4.46

14,3

10,1

02.1

644

1,60

3.17

14,7

51,7

05.3

3

Divid

ends

pai

d--

----

(2,7

84,8

00.0

0)(2

,784

,800

.00)

--(2

,784

,800

.00)

Rese

rves

----

216,

001.

33(2

16,0

01.3

3)--

----

Oth

er a

djus

tmen

ts--

----

(1.4

9)(1

.49)

6.49

5.00

Net

pro

fits o

f FY

2006

--

----

4,26

4,66

3.08

4,26

4,66

3.08

(74,

174.

02)

4,19

0,48

9.06

Bala

nce

as o

f 31s

t De

cem

ber

2006

8,35

4,40

0.00

3,94

1,80

4.84

1,08

6,46

4.19

2,40

7,29

4.72

15,7

89,9

63.7

536

7,43

5.64

16,1

57,3

99.3

9

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

1�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

The COMPAnY

Share capital Share premium Other reserves Retained earnings Total Equity

Balance as of 1st January 2005 8,354,400.00 3,941,804.84 679,019.53 2,626,053.60 15,598,278.02

Dividends paid -- -- -- (2,784,800.00) (2,784,800.00)

Reserves -- -- 191,227.80 (191,227.80) --

Net profits of FY 2005 -- -- -- 3,937,905.65 3,937,905.65

Balance as of 31st December 2005 8,354,400.00 3,941,804.84 867,247.38 3,587,931.45 16,751,383.67

Balance as of 1st January 2006 8,354,400.00 3,941,804.84 867,247.38 3,587,931.45 16,751,383.67

Dividends paid -- -- -- (2,784,800.00) (2,784,800.00)

Reserves -- -- 216,001.33 (216,001.33) --

Net profits of FY 2006 -- -- -- 4,320,026.68 4,320,026.68

Balance as of 31st December 2006 8,354,400.00 3,941,804.84 1,083,248.71 4,907,156.80 18,286,610.35

It is noted that the minority rights for financial year 2005 have been published without a relevant analysis whereas they are listed in detail in the above table.The attached notes on pages (20-52) are an integral part of the financial statements.

CASh FlOW STATeMenT

The GROUP The COMPAnY

From 1st January till From 1st January till

Operating activities 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Income from receivables 58,383,487.19 18,666,123.44 47,467,905.78 20,782,132.19

Payments to suppliers, employees, etc. (54,170,325.87) (17,789,059.04) (41,758,582.96) (20,003,610.97)

Payments (refund of income) taxes (1,353,720.56) (963,028.96) (1,353,720.56) (1,044,957.55)

Interests paid (937,994.29) (627,460.59) (813,120.07) (508,409.51)

Total inflow / (outflow) from operating activities (a)

1,921,446.47 (713,425.15) 3,542,482.19 (774,845.84)

Investing activities

Payments for acquisition of tangible and intangible assets

(1,720,064.41) (1,846,928.24) (1,412,100.05) (1,731,785.86)

Income from sale of tangible and intangible assets

263,592.42 218,756.34 263,692.42 178,235.06

Income (payments) from sale (purchase) subsidiaries, affiliated, joint ventures etc

5.00 -- 5.00 (2,412,000.00)

Income (payments) from sale (purchase) Investing titles (shares, securities)

-- (2,412,000.00) -- --

Collected interets 30,533.94 -- 28,843.33 --

Collected dividends 2,453.28 -- 2,453.28 --

Total inflow / (outflow) from investing activities (b)

(1,423,479.77) (4,040,171.90) (1,117,106.02) (3,965,550.80)

2 0

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Financing activities

Income from issued / undertaken loans 33,561,540.25 38,492,716.70 31,303,987.39 37,253,532.16

Loan payment (26,427,314.57) (29,933,193.21) (26,144,050.21) (28,851,194.30)

Payment from leasing liabilities (667,260.27) (523,736.11) (359,421.24) (243,568.38)

Dividends paid (2,780,888.00) (2,726,030.47) (2,780,888.00) (2,726,030.47)

Total inflow / (outflow) from financing activities (c)

3,686,077.41 5,309,756.91 2,019,627.94 5,432,739.01

net increase / (decrease) in cash and cash equivalents (a) + (b) + (c) 4,184,044.11 556,159.86 4,445,004.11 692,342.37

Cash and cash equivalents at beginning of year

2,532,101.10 1,975,941.24 1,873,005.69 1,180,663.32

Cash and cash equivalents at end of year

6,716,145.21 2,532,101.10 6,318,009.80 1,873,005.69

The attached notes on pages ( 20-52) are an integral part of the financial statements. 5.1 InFORMATIOn On The GROUP

5.1.1 GeneRAl InFORMATIOn

The company “NEWSPHONE HELLAS S.A.” with distinctive title NEWSPHONE (the Company) as well as two of its subsidiary “CALL CENTER HELLAS S.A.” and “NOETRON ANONYMOUS COMPANY OF ADVANCED APPLICATIONS OF INFORMATION SYSTEM” are active in the provision of services through the audiotext system as well as through large specialised information systems.The companies’ facilities are on 280, Thiseos Avenue, 176 75, in the Municipality of Kallithea and their websites are www.newsphone.gr, www.callcenter.gr, www.noetron.gr. The Group’s companies have the form of Anonymous Companies and the parental company “NEWSPHONE HELLAS S.A.” is listed on Athens Stock Market since FY 2003.The company and consolidated financial statements for the year ended as of December 31, 2006 (including the comparative results for the year ended as of December 13, 2005) are approved from the Company’s Board of Directors on March 5, 2007. 5.1.2 SUBJeCT OF OPeRATIOn

The Group operates in 3 business units. • The Value Added Services, which are provided to the public either in a partnership with networks of fixed and mobile telephony, or directly through as Newsphone Hellas branded services.• The e-government services through of which it has been modified to a strategic partner of the state for the development of innovating services with the purpose the improvement of customer service. • The telephone directory services. The Group was the first alternative provder of telephone directory services after the liberalization of the relevant market.

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

21

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.2 BASIS OF PRePARATIOn OF The FInAnCIAl STATeMenTS The Company’s and Group’s financial statements as of December 31, 2006 that cover the period from January 1, 2006 to December 31, 2006, have been prepared on the historic cost basis as this is modified with the re-adjustment of particular assets in fair vaule, the principal of going concern and are in accordance with the International Financial Reporting Standards (hereinafter I.F.R.S.) issued form the International Accounting Standard Board (I.A.S.B.), as well as their interpretations, which are issued from the International Financial Reporting Interpretation Committee (I.F.R.I.C.) of I.A.S.B. and are adobted by the European Union.

I.A.S.B. have issued a series of Standards wich are referred as “I.F.R.S. Stable Platform 2005”. The Group and the Company implements I.F.R.S. Stable Platform 2005 since January 1, 2005.

5.3 BASIC ACCOUnTInG PRInCIPleS

The accounting principles, based on which the financial statements were prepared, and which the Group consistently implements are consistent with those that have been utilized for the preparation of the financial statements of the previous year’s except for the cases below:

5.3.1 neW ACCOUnTInG STAnDARDS AnD IFRIC InTeRPReTATIOnS eFFeCTIve In 2006 ThAT ARe RelATeD TO The ACTIvITIeS OF The GROUP AnD The COMPAnY.

IAS 19 (amendment) Employee Benefits (effective from January 1, 2006)This amendment provides entities the choice of an alternative method for actuarial gain or loss recognition. The Group is not expected to alter that followed accounting policy as far as it concerns the method for actuarial gain and losses and as from this the financial statements are not expected to change.

Amendment of IAS 21 – changes in foreign exchange currency (effective from January 1, 2006)This amendment specifies that currency assets between a Group’s subsidiary company with a foreign activity may be considered as part of the Group’s investment in this foreign activity. The resulting foreign exchange differences are transferred during the consolidation in own equity considered that the settlement of the currency asset is not expected to occur in the forthcoming future. This amendment is not applicable for the Group and the Company.

IAS 39 (amendment) Fair value measurement considerationsThis amendment alters the definition of the financial instruments as financial instruments at fair value through profit or loss. The Group is not expected to be affected from the adoption of this amendment as all financial instruments that are classified as financial instruments at fair value through profit and loss are holded for commercial purposes.

IFRIC 4, Determining whether an arrangement contains a leaseIFRIC 4 requires to be determined, whether a business agreement is or includes a lease or not. Every arrangement that gives the right to use the asset with an exchange of payments will be considered a lease. Interpretation 4 is not expected to alter the accounting treatment of any of the Group’s current business contracts.

2 2

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

IFRIC 10, Interim Financial Reporting and ImpairmentThis Interpretation determines that specific claims of IAS 36 (in relation to goodwill) and IAS 39 (in relation to financial instruments available for sale) precede of the claims of IAS 34 and therefore impairment losses recognized for those instruments in interim financial period cannot be reversed in forthcoming periods. The group has not been affected from the adoption of the interpretation as it has not progressed to reverses of impairment losses.

The IFRIC 8 Scope of IFRS 2This Interpretation acquires the implementation of IFRS 2 for the arrangement of every transaction related with the issue of shares, where the collected recognisable price is lower than the fair value of the issued shares. The Group is not affected from the adoption of the interpretation.

IAS 39 and IFRS 4 (amendment) Financial guarantee contractsFinancial guarantee contracts are displayed from the issuer as financial instruments. They are initially recognized at fair value at the day where the guarantee is issued and later are valued at the greater value between (a) the initial, decreased by the estimated depreciations, so as the accrued revenue from commissions during the contract, to be recognised by the direct method in the income statement (IAS 18) and (b) the expense required to regulate the commitment at the Balance Sheet date (IAS 37). Whether the issuer decides that these contracts are insurance contracts, then one should choose whether one will implement IAS 39 “Financial instruments: recognisition and measurement” or IFRS 4 “Insurance contracts”. This amendment is not applicable for the Company and the Group.

5.3.2 STAnDARDS, AMenDMenTS AnD InTeRPReTATIOnS WITh COMPUlSORY eFFeCT In 2006 ThAT ARe nOT RelATeD WITh The ACTIvITIeS OF The GROUP.

• IAS 39 (Amendment), Cash flowhedges anticipated for Group transactions• IFRS 1 (Amendment), First time adoption of International Financial Reporting Standards.• IFRS 6 Exploitation and estimation of mineral resources• IFRS 6 (Amendment) Exploitation and estimation of mineral resources• IFRIC 5 Rights to Interest arising from Decommissioning, Restoration and Environmental Rehabilitation Funds.• IFRIC 6 Liabilities arising from participating in a specific market – waste electrical and electronic equipment.• IFRIC 7 Applying the restatement approach in hyperinflationary economies.• IFRIC 9 Re-measurement of embedded derivatives.

5.3.3 STAnDARDS, AMenDMenTS AnD InTeRPReTATIOnS In CURRenT STAnDARDS WITh A POSTeRIOR eFFeCTIve DATe (AnD The GROUP hAS nOT PROCeeDeD TO An OPTIOnAl IMPleMenTATIOn).

The International Accounting Standards Board, as well as the IFRIC, have already issued a series of new accounting standards and interpretations that is not compulsory to be implemented for the accounting periods that begin on January 1, 2006. The estimation of the Group in relation with the effect of those new standards and interpretations is as follows:

IAS 1 (amendment) Capital disclosuresDue to issuance of IFRS 7 supplementary disclosures were added in IAS 1 in order for a company to disclose useful

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

2�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

information to its users, in relation to the purposes, the policies and the procedures of capital administration. The Group will implement the amendments of IAS 1 beginning from January 1, 2007.

IFRS 7, Financial Instruments DisclosuresIFRS 7 introduces added disclosures of IAS 32 in order to improve the information provided regarding the financial instruments (except for those fall on other standards – i.e. 27, 28, 31). It requires for the significance of the financial instruments for the performance and the financial position of the company to be disclosed. Morever, the disclosure of qualitative and quantitative information regarding the risk exposure due to financial instruments. The group will apply IFRS 7 from January 1, 2007.

IFRS 8, Operational segmentsIFRS 8 preserves the general purpose of IAS 14 and sets different disclosure claims in relation to information per activity segment. IFRS 8 is valid for periods that start at 1st January 2009 and is anticipated to be adopted by the Group.

IFRIC 11, IFRS 2 - Group and Treasury Share TransactionsThis Interpretation gives instructions in relation to whether a payment agreement is based on the share value of the entity, which receives commodities or services as an exchange for its own shares, will be accounted as a transaction which is settled with shares or as a transaction in cash. IFRIC 11 is valid from January 1, 2007 and is not expected to be adopted by the Group.

IFRIC 12, Service Concession ArrangementsThe Interpretation 12 handles the way with which the concessionaries will have to apply the existing IFRS to register the duties they undertake and the rights which are bestowed upon them by the service concessions arrangements. IFRIC 12 is valid from January 1, 2008 and is not expected Group’s financial statements.

5.3.4 SIGnIFICAnT ACCOUnTInG DeCISIOnS, ASSeSSMenTS AnD ASSUMPTIOnS

During the drafting of the financial statements, according to the IFRS, the Management is required to take decisions, make assessments and use assumptions that affect the amounts recorded in the statements, the financial assets, the liabilities, the income and expenditures. The actual results might be different due to these assessments. The assessments change constantly and are based on historical data and other factors such as expectations of future events that are expected to happen under the given circumstances.

5.3.5 ACCOUnTInG DeCISIOnS

During the implementation procedure of the accounting policies, the management takes decisions related to: • Investment Classification • Payment of Claims• Obsolescence of Reserves• Classification of a lease as operational or financing.

2 4

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.3.6 ASSUMPTIOnS AnD ASSeSSMenTS

Recording the value of certain assets and liabilities in the financial statements requires the use of assessments that are based on certain assumptions relevant to values and conditions that are not known with certainty on the date of drafting of the financial statements. The Group continuously evaluates these assessments which are made based on historical data, the work of special advisors, trends and methods that are considered suitable for assessing certain conditions as well as assessments on how these assumptions can change in the future. Assumptions and assessments are required to record: • Projections on the amounts of future payable income taxes and deferred taxes.• Fair value of other financial instruments• Provision amountsContingent claims and liabilities

5.3.7 COnSOlIDATIOn

Subsidiaries: These are all the companies managed and controlled, directly or indirectly, by another company (parent), either through the holding of the majority of the company’s shares or through the subsidiary’s dependence on know-how provided to it by the Group. That is, subsidiaries are the corporations over which the parent company exercises control. IDISEOFONIKI HELLAS S.A. acquires and exercises control through the voting rights. The existence of any voting rights that may be exercised at the time of drafting of the financial statements is taken into account, in order to substantiate whether the parent company exercises control over the subsidiaries. The subsidiaries are fully consolidated (total consolidation) using the buy-out method from the date when control over them is acquired and they stop being consolidated from the date when such control ceases to exist.The buy-out of a subsidiary by the Group is accounted for based on the purchase method. The acquisition cost of a subsidiary is the fair value of the assets provided, shares provided, and liabilities undertaken on the date of the transaction, plus any cost directly associated with the transaction. The individual assets, liabilities and contingent obligations acquired in a business purchase are accounted for during the buy-out at their fair values irrespective of the percentage of participation. The purchase cost beyond the fair value of the individual assets acquired is recorded as goodwill. If the total purchase cost is less than the fair value of the individual assets acquired, the difference is recorded directly in the results.Cross-company transactions, balances and non-realised profits from transactions between the companies of the Group are written-off. The non-realised losses are also written-off, unless the transaction provides indications of impairment of the transferred asset. The accounting principles of the subsidiaries have been amended so that they conform to those adopted by the Group.For handling accounting transactions with minorities, the Group applies the accounting principle according to which it treats these transactions as transactions with third parties, i.e. with parties outside the Group. Sales to minorities create profits and losses for the Group, which are listed in the results statements. Purchases from minorities create goodwill, which is the difference between the price paid, and the percentage of the accounting value of the acquired subsidiary company’s net position.

5.3.8 GROUP STRUCTURe

The companies of the Group included in the consolidated financial statements are thefollowing:

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

2�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

GROUP STRUCTUReCompanies that consolidated % Consolidation MethodNESWSPHONE HELLAS S.A. Parent CompanyCALL CENTER HELLAS S.A. 70.000% Full ConsolidationNOETRON S.A. 74.998% Full Consolidation

5.3.9 SeGMenT RePORTInG The Group and the Company provide audiotext services as well as the creation of large specialised information systems and the provision of services through those. The said services are aimed at the Private sector as well as the Public Sector. The Management’s business decisions have the same weight and promote equally all the fields of activity.The company operated in the Eurozone and other countries for the first time in 2006. 5.3.10 FOReIGn CURRenCY TRAnSlATIOn

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the ‘functional currency’). The consolidated financial statements are presented in euros, which is the Company’s and all the subsidiaries functional and presentation currency.Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. Translation differences on non-monetary financial assets and liabilities which are stated at their fair value, are considered as a part of the fair value and therefore they are recorded where the differences of the fair value.

5.3.11 TAnGIBle ASSSeTS

The Company does not own any fixed assets (land plots – buildings). The company’s tangible assets are computers, furniture, appliances and equipment that have appropriately adjusted software programmes through which the telecommunication services are provided. These are measured at acquisition cost minus any accrued amortisations and any impairment losses, if applicable. The acquisition cost includes all the expenses directly attributable to the acquisition of the assets. The cost may also include profits or losses from hedging the currency risk during the purchase of these assets, which have been recorded in the equity reserves. No such case has risen.Posterior expenses are charged as an increase of the fair value of the tangible assets or as an independent asset only to the extend that these charges offset an increase in future financial benefits expected to occur from the use of the asset and their cost can be measured reliably. All repairs and maintenance are charged to the income statement during the financial period in which they incurred.At the sale of tangible assets, the differences between the consideration received and the book value are recorded as gains or losses to the income statement. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

2 6

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

In the event that the accounting value of the tangible assets exceeds the recoverable value, the difference (impairment) is recorded as expense in the results. The cost of using third party buildings is amortised according to the number of years that the building is leased.

Depreciation on tangible assets is calculated using the straight-line method to allocate the cost of each asset to its residual value over its estimated useful life, as follows:

Mechanical equipment 7-13 years

Vehicles 7-9 years

Other equipment 4-7 years

The cost of loaning that is associated directly with the acquisition, construction or production of assets, the completion of which requires a significant amount of time, is added to their cost until the time at which they are ready for use or sale. It is noted that the company has not received capital with the intent of investing in fixed assets.

5.3.12 InTAnGIBle ASSeTS

Computer software and licensesSoftware licenses are valued at acquisition cost less depreciation. Computer software are amortised using the straight-line method over their estimated useful lives (5 -20 years).Expenses required for the development and maintenance of software are recorded as expenses when they occur. Expenses made for the development of specific software controlled by the group are recorded as intangible assets when the following conditions are fulfilled: a) a specific asset is created, b) there is evidence that the asset created will bring financial benefits and c) the development cost can be reliably measured. Such expenses include employee remuneration and general expenses analogy. Brands and licenses are valued during the useful life of these assets which is about 5-15 years.

5.3.13 IMPAIRMenT OF ASSeTS

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment and when some facts indicate that the book value is not recoverable. Assets that are subject to amortisation or depreciation are reviewed for impairment whenever there are indications that the carrying amount may not be recoverable. The recoverable value is the amount of the net selling price, or the value-in-use, whichever is higher. If the recoverable amount is lower than unamortised value then the unamortized value is reduced to the amount of the recoverable (or the Cash Flow Generating Units).Impairment losses are recorded as expenses in the period in which they occur if the asset has not been readjusted.

5.3.14 InvenTORIeS

The Group and the Company buy merchandise with the intent of re-selling them according to the agreements they have signed. On the balance sheet date the reserves are measured at acquisition cost.

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

2�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.3.15 ClIenTS AnD TRADe ReCeIvABleS

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.In the event that the un-amortised value or the cost of a financial asset exceeds its current value, then the asset is measured in its recoverable cost, namely the current value of the asset’s future cash flows, which is calculated on the basis of the initial actual interest rate. The relevant loss is carried over directly to the results. Impairment loss, i.e. when there is actual evidence that the Group is in no position to collect all of the amounts due pursuant to the contractual terms, is recorded in the results.

5.3.16 CASh AnD CASh eQUIvAlenTS

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.Money market products are financial assets that are measured at fair value through the results statement.

5.3.17 FInAnCIAl InSTRUMenTS

Financial instrument is every contract that creates a financial asset in a company and a financial liability or equity holding in another company. The Group’s financial instruments are classified in the following categories based on the subject matter of the contract and the purpose for which they were acquired.

i) Financial Assets Measured at their Fair Value Through the Results (P&L) of the Financial Year StatementThis involves financial assets that satisfy any of the following conditions:- Financial assets held for commercial purposes (including derivatives, excluding those that are specified and effective as hedges, those that are acquired or created with the intent of sale or re-purchase and finally those that are part of a portfolio of recognised financial instruments).- During the initial recording it is defined by the Group as an asset measured at fair value, given that it meets the criteria of IAS 39 “Choice of fair value” with the accounting of the changes in the Results (P & L) Statement of the Financial year.

ii) Loans and ReceivablesThese comprise non-derivative financial assets with fixed or defined payments, which are not traded in active markets. This category (Loans and Receivables) does not include:a) receivables from advance payments for the purchase of goods or services,b) receivables involving tax transactions, which have been imposed by the state through legislation,c) anything not covered by an agreement, in order to give the company the right to receive cash or other financial fixed assets. The loans and receivables are included in the floating assets, apart from those with a maturity term longer than 12 months from the date of the balance sheet. The latter are included in the non-floating assets.

2 8

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.3.18 ShARe CAPITAl

Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs attributable to the issuance of shares for the acquisition of a company, are included in the cost of the company acquired.During the acquisition of the Company’s equity share capital, the consideration paid, including any directly attributable incremental costs, is deducted from equity. 5.3.19 DeFeRReD InCOMe TAx

Recorded in the financial year are income taxes consisting of the current taxes and deferred taxes, i.e. taxes or tax relief related to the economic benefits arising in the period but which have already been accounted for or will be accounted for by the tax authorities in other periods. The income tax is recorded in the financial year results account, apart from the tax that refers to transactions recorded directly to equity, in which case it is recorded directly to equity accordingly.The current income taxes include the short-term liabilities and/or receivables to the fiscal authorities that are related to the taxes payable on the taxable income of the financial year and any additional income taxes of previous financial years.The current taxes are calculated in accordance to the tax rates and tax laws applied during the financial periods with which they are related, based on the taxable profit for the year. All of the changes in the short-term tax assets or liabilities are accounted for as part of the tax expenses in the financial year results statement.The deferred income tax is determined using the method of liability arising in all of the provisional differences between the book value and the tax base of the assets and liabilities. Deferred income tax is not accounted for when it arises from the initial recording of an asset or liability in transaction, with the exception of company unification, which, when the transaction was made, did not affect neither the book nor the tax profit or loss.Deferred tax receivables and liabilities are measured according to the tax rates that are applicable on the balance sheet date. Deferred tax receivables are accounted for to the extend that there will be future taxable profit for the use of the provisional difference generated by the deferred tax liability.Deferred income tax is accounted for the provisional differences arising from investments in subsidiaries and affiliated companies, except in the case where the reversal of the provisional differences is controlled by the Group and it is likely that the provisional differences will not be reversed in the foreseeable future.The changes in the deferred tax receivables or liabilities are accounted for as a part of the tax expenses in the financial year results statement. Only the changes in assets or liabilities temporarily affecting the differences are accounted for directly in the Group’s equity, such as the re-evaluation of real estate value, and which result in a relevant change in deferred tax receivables or liabilities being charged against the relevant account of the net position.

5.3.20 eMPlOYee BeneFITS

Short term benefits: The short-term benefits to the employees (the benefits for the termination of the labour relationship) in cash and in goods are recorded for as an expense when they become payable. The company has not officially or unofficially brought into force any special benefits plan for its employees. Any outstanding amount is recorded as a liability, while in the case where the amount already paid exceeds the amount of the benefits, the company records the excess amount as its asset (prepaid expense) only to the extend that the

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

2�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

prepayment will lead to the reduction of future payments or to a return.

Post-employment benefits: The benefits after exit from service include both specific contribution plans as well as specific benefits plans. The payable cost of the specific contribution plans is recorded as an expense in the corresponding period.

• Specific contribution planBased on the specific contributions plan, the obligation of the company (legal or presumed) is limited to the amount it has agreed to contribute to the organisation that manages the contributions and provides the benefits. Therefore, the amount of benefits that the employee will receive is determined by the amount that the company (and/or the employee) will pay and by the paid investments of these contributions. The payable contribution by the company to a specific contributions plan is recorded as a liability, following the subtraction of the contribution paid, or as an expense respectively.

• Specific benefits planThe liability that is recorded in the balance sheet for the specific benefits plans represents the current value of the liability for the specific benefit minus the fair value of the assets of the plan (if applicable) and the changes arising from any appropriate profit or loss as well as the cost of previous employment. The commitment of the specific benefit is calculated annually by an independent actuary, using the projected unit credit method. The interest rate used for the discount is that of the long-term Greek State bonds.The proportional profits and losses are elements of the liability of the company benefit, as well as of the expense, which will be recorded in the results. Those arising from the adjustments based on the historical data, are plus or minus below the 10% margin of the accumulated liability and they are recorded in the results within the expected average time of employment of those participating in the plan. The cost of previous service is recorded directly in the results, with the exception where the changes of the plan depend on the remaining time of service of the employees. In this case the cost of previous service is recorded in the results using the fixed method within the maturity period.

Termination benefits: Termination benefits are payable when employment is terminated before the normal retirement date. The Group recognises termination benefits when it is demonstrably committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the balance sheet date are discounted to present value based on the yields of the high rated corporate bonds or government bonds.In the event of an offer that is made to encourage voluntary exit from service or measurement of the benefits for end of work relationship, this should be based on the number employees willing to accept the offer.In the case of a termination in which it is not possible to define the number of employees that are going to make use of the related benefits, the obligation is not accounted for but it is disclosed as a contingent liability.

5.3.21 GRAnTS

The Group records the state subsidies, which satisfy the following criteria cumulatively: a) there is a presumed certainty that the company has complied or will comply with the terms of the subsidy and b) it is likely that the amount of the subsidy will be collected. Those are recorded at fair value and accounted in a systematic way in the income, based on the principle of correlation of the subsidies with the respective costs that they subsidise.

3 0

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Subsidies that involve assets are included in the long-term liabilities as income of future financial years and are recorded systematically and reasonably in the income item throughout the useful life of the fixed asset. This income appears in the Other Operational Income item.

5.3.22 PROvISIOnS

Provisions are recorded when the Group has current legal or presumed liabilities as a result of past events, and their settlement is likely through the outflow of resources; also the estimation of the exact amount of the liability may be effected in a reliable way. The provisions are reviewed on the date of drafting of each balance sheet and adjusted in order to reflect the current value of the expenditure expected to be required for the settlement of the liability. Contingent liabilities are not recorded in the financial statements but they are notified, unless the likelihood of a resource outflow, which incorporates economic benefits, is minimal. Contingent receivables are not recorded in the financial statements but they are notified when the inflow of economic benefits is likely.

5.3.23 RevenUe / exPenSeS ReCOGnITIOn

Revenues: Revenues comprises the fair value of the consideration received or receivable for the sale of goods and services. Revenue is shown, net of value-added tax, rebates and discounts and after eliminated sales within the Group. Revenue is recognised as follows:

- Sale of services: Revenues from sales of services are recognised in the accounting period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.- Interest income: Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at original effective interest rate of the instrument. Interest income on impaired loans is recognised using the original effective interest rate.- Dividend: Dividend income is recognised when the right to receive payment is established.

Expenses: The expenses are recorded in the results when they become payable. Payments made for operational leases are carried over to the results as expenses throughout the lease term. Expenses from interest are recorded when they become payable.

5.3.24 leASeS

Group’s company as a lessee: Leases of tangible assets where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges are included in liabilities. The interest element of the finance cost is charged to the income statement over the lease period. The tangible assets acquired under finance leases is depreciated over the shorter of the useful life of the asset or the lease term.Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the lease period.

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

�1

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Group’s company as a lessor: The company does not have investment property, but it is subletting part of the leased property it has. The income from this operation is recorded and appears in the Other Operational Income item of the financial year results. Cross-company income within the Group is written-off entirely.

5.3.25 DIvIDenD DISTRIBUTIOn

Dividend distribution to company shareholders is recorded as a liability to the consolidated financial statements at the date when the distribution is approved by the Ordinary Shareholders Meeting.

5.4 FInAnCIAl RISk MAnAGeMenT

The Group and the Company is exposed it to a variety of financial risks: market risk, credit risk, liquidity risk and cash flow risk from changes in interest rates. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Management focuses on the balanced development of its three business units that the Group activates with the aim of diversifying business risk.

Foreign exchange currency riskThe Group and the Company up to financial year 2006 were not exposed to currency risks. In 2006 the company recorded foreign sales, for the first time. The most important part from the said sales concerns projects that took place within the eurozone and therefore did not create any currency risk. A potential boost in the group’s activity abroad may lead to the creation of currency risk in the future. It is estimated that, in any case, this risk is limited for two reasons. On the one hand it is expected that a significant part of the sales will keep on being made within the eurozone and on the other because the sales are associated to projects/interactive actions that have a short-term completion schedule.Furthermore, it is noted that the entire amount of the Group’s loan liabilities has been made in euros.

Credit riskGiven that the company’s major clients are the Greek State, public legal entities and the companies of fixed and mobile telephony, the collection of its receivables is not doubted.

Liquidity riskDue to the fact that the Greek public sector and the public legal entities (Social Security organizations) do not settle their obligations on time, mainly due to bureaucratic procedures and to the fact that in many cases matters regarding the readjustment of the budget for projects already delivered, the company faces significant problems of liquidity given that a substantial cost in the provision of services is the employee remuneration.Liquidation risk is also increased because the implementation of projects related to the Public sector and the broader Public Sector occupies a large number of employees. However it must be noted that in order to handle this risk the Company’s management, in previous financial years, turned to the development of new business units that have a short-term cash return and contribute to the Group’s cash flow. The Group’s activity in the phone directory services market is a result of this strategy and has contributed significantly to the limitation of such cash-flow risks. The above conclusion is proven by the structure of the Group’s cash flows from operational activities in 2006.

3 2

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Interest rates fluctuation riskBoth short-term as well as long-term Group loans have fluctuating interest rates, which the Group evaluates on a regular basis taking into consideration current market conditions. The financial department monitors the events that could affect the interest rates and in the event that it is deemed necessary it will proceed to change to group’s borrowing terms from fluctuating to fixed interest rates. Primarily due to the limited risk of change in interest rates, the company’s management has not adopted a systematic hedging strategy. If in the next financial years it is deemed that the group’s exposure to the said risk is increasing, then it is quite possible that the respective hedging strategy will be adopted. However, it must be noted that any adverse, increase in interest rates cannot essentially affect the group’s results, considering that the point of reference for the fluctuating interest rates is the European Central Bank interest rate (Euribor).

5.5 SeGMenT RePORTInG

Primary reporting format – Geographical Sectors

Company’s Head office and its primary activity is located in Greece.For the first time during 2006 the company offered services outside the geographical boundaries of Greece and in particular to countries in the Eurozone and third countries. The results of the Group and the Company for each sector for financial year 2006 are analysed as follows:

The GROUP The COMPAnY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

DOMeSTIC InTeRnA-TIOnAl

DOMeSTIC InTeRnA-TIOnAl

DOMeSTIC InTeRnA-TIOnAl

DOMeSTIC InTeRnA-TIOnAl

Turnover 36,038,948.84 10,726,617.34 34,165,158.59 0.00 34,311,655.74 10,726,617.34 32,758,375.00 0.00

Gross Profit 12,229,127.74 5,058,918.98 14,945,817.94 0.00 11,064,940.96 5,058,918.98 13,856,187.08 0.00

earnings after tax 1,830,633.25 2,359,855.81 3,851,399.70 0.00 1,960,170.84 2,359,855.81 3,937,905.65 0.00

Secondary reporting format – Business Sectors

The Group and the Company provide audiotext services as well as the creation of large specialised information systems and the provision of services through those. The said services are aimed at the Private sector as well as the Public Sector. The management’s decision consider all areas of activities of equal importance and promote them accordingly.The sales activities of the Group and the Company per business sector are analysed as follows:

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

��

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

The GROUP The COMPAnY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Additional value services 18,407,178.46 14,321,102.11 18,407,178.46 14,321,102.11

E-governance services 11,324,041.70 14,386,104.90 9,596,748.59 12,979,321.31

Telephony directory services 17,034,346.03 5,457,951.58 17,034,346.03 5,457,951.58

Total 46,765,566.19 34,165,158.59 45,038,273.08 32,758,375.00

5.6 nOTeS On The FInAnCIAl STATeMeMenTS

5.6.1 TAnGIBle ASSeTS

The tangible assets of the Group and the Company are recorded at historical acquisition cost minus the accrued amortisations and any depreciation in value.There are no mortgages or pledges on the tangible assets of the Group and the Company.

The GROUP

Lots & Buildings

Mechanical equipment Vehicles Other equipment Total

Acquisition cost

Balance as of 1st January 2006 631,264.21 5,942,276.42 55,524.65 1,037,060.60 7,666,125.88

Additions 116,476.02 1,432,511.93 62,701.91 136,483.59 1,748,173.45

Decreases 0.00 (197,383.13) (62,701.91) (15,522.47) (275,607.51)

Balance as of 31st December 2006 747,740.23 7,177,405.22 55,524.65 1,158,021.72 9,138,691.82

Depreciations

Balance as of 1st January 2006 264,287.44 2,140,184.02 14,536.65 694,507.00 3,113,515.11

Additions 68,813.61 883,332.49 6,139.81 122,692.15 1,080,978.06

Decreases 0.00 (1,034.74) (32.17) (14,424.21) (15,491.12)

Balance as of 31st December 2006 333,101.05 3,022,481.77 20,644.29 802,774.94 4,179,002.05

Unamortized value as of 31st December 2006

414,639.18 4,154,923.45 34,880.36 355,246.78 4,959,689.77

Unamortized value as of 31st December 2005 366,976.77 3,802,092.40 40,988.00 342,553.60 4,552,610.77

3 4

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

The COMPAnY

Lots & Buildings

Mechanical equipment Vehicles Other equipment Total

Acquisition cost

Balance as of 1st January 2006 346,383.90 4,991,887.34 55,524.65 550,914.19 5,944,710.08

Additions 23,578.17 1,306,115.49 62,701.91 19,014.48 1,411,410.05

Decreases (197,383.13) (62,701.91) (13,898.75) (273,983.79)

Balance as of 31st December 2006 369,962.07 6,100,619.70 55,524.65 556,029.92 7,082,136.34

Depreciations

Balance as of 1st January 2006 117,470.51 1,609,397.13 14,536.65 383,657.30 2,125,061.59

Additions 39,180.62 783,464.52 6,139.81 56,412.79 885,197.74

Decreases (1,034.74) (32.17) (13,898.55) (14,965.46)

Balance as of 31st December 2006 156,651.13 2,391,826.91 20,644.29 426,171.54 2,995,293.87

Unamortized value as of 31st December 2006

213,310.94 3,708,792.79 34,880.36 129,858.38 4,086,842.47

Unamortized value as of 31st December 2005 228,913.39 3,382,490.21 40,988.00 167,256.89 3,819,648.49

Analysis of the Group’s and company’s amortizations-depreciations is presented in paragraphs 5.6.18 &5. 6.19.

5.6.2 InTAnGIBle ASSeTS

The intangible assets of the Group and the Company include software and software licenses which have been bought by third parties and which do not include intrinsic value. This software is used for the production and operation of Group and Company projects.

The GROUP

Licenses Other rights Software Total

Acquisition cost

Balance as of 1st January 2006 393,397.25 437,476.98 89,105.83 1,465,980.06

Additions 3,827.13 0.00 690.00 4,517.13

Decreases 0.00 0.00 0.00 0.00

Balance as of 31st December 2006 943,224.38 437,476.98 89,795.83 1,470,497.19

Depreciations

Balance as of 1st January 2006 267,339.66 149,423.03 84,043.35 500,806.04

Additions 362,039.15 80,305.74 3,532.04 445,876.93

Decreases 0,00

Balance as of 31st December 2006 629,378.81 229,728.77 87,575.39 946,682.97

Unamortized value as of 31st December 2006 313,845.57 207,748.21 2,220.44 523,814.22

Unamortized value as of 31st December 2005 672,057.59 288,053.95 5,062.48 965,174.02

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

��

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

The COMPAnY

Licenses Other rights Software Total

Acquisition cost

Balance as of 1st January 2006 678,791.02 50,068.70 85,481.78 814,341.50

Additions 690.00 690.00

Decreases 0.00

Balance as of 31st December 2006 678,791.02 50,068.70 86,171.78 815,031.50

Depreciations

Balance as of 1st January 2006 164,551.62 47,243.96 80,657.55 292,453.13

Additions 291,975.26 2,824.74 3,373.88 298,173.88

Decreases 0.00

Balance as of 31st December 2006 456,526.88 50,068.70 84,031.43 590,627.01

Unamortized value as of 31st December 2006 222,264.14 0.00 2,140.35 224,404.49

Unamortized value as of 31st December 2005 514,239.40 2,824.74 4,824.23 521,888.37

Analysis of the Group’s and company’s amortizations-depreciations is presented in paragraphs 6.18 & 6.19.

5.6.3 PARTICIPATIOn In SUBSIDIARIeS

The item “Participations”, as appears in the Group and Company Balance Sheet is analysed as follows:

The GROUP The COMPAnY

value dispayed in balance sheet value dispayed in balance sheet

CompanyCompany %participation

31.12.2006 31.12.2005 31.12.2006 31.12.2005

CALL CENTER HELLAS S.A. 70% 0.00 0.00 3,122,946.31 3,122,946.31

NOETRON S.A. 74.998% 0.00 0.00 0.00 225,000.00

Total 0.00 0.00 3,122,946.,00 3,347,946.31

The above companies where consolidated with the full consolidation method.

On 10 August 2006, the parent company sold 1 share of it subsidiary NOETRON S.A. and its 75% participation in financial year 2005 fell to 74.998% for financial year 2006. Moreover, the value of its participation fell from EUR 225,000 during financial year 2005, to EUR 224,995.00 for financial year 2006.During the financial year 2006 the subsidiary company “NEOTRON S.A.” had a negative net position and Article 48 of Law 2190/1920 can be applied. The subsidiary company is planning to continue its activities and is willing to take measures which will be decided on during the upcoming Ordinary General Shareholders Meeting. Since financial year 2007, “NEOTRON S.A.” has been operating the 11821 phoneline, it has been producing and trading software programmes and software licenses both to Prefectures & Municipalities as well as to the parent company.

3 6

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Moreover, we clarify the following:1. The participation of the subsidiary company has been fully depreciated in the financial statements of the parent company.2. No guaranties have been given from the parent company in favour of the subsidiary company.3. The subsidiary’s total assets compared to that of the group is 2%.

5.6.4 OTheR lOnG TeRM ReCeIvABleS

Group’s other long term receivables are analyzed in the following table:

The GROUP The COMPAnY

Granted Guarantees 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Granted guarantees 110,925.74 92,010.12 66,577.39 72,436.87

Total long term receivables 110,925.74 92,010.12 66,577.39 72,436.87

These receivables involve lease deposits and other guaranties that will be collected after the end of the next financial year.

5.6.5 DeFeRReD TAx

The deferred taxed receivables-liabilities as resulted from the temporary tax differences are as follows:

The GROUP The COMPAnY

Deferred income tax 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Deferred tax receivables

Employee benefits provision 169,344.40 146,213.80 98,459.94 80,120.30

Establishment expenses 83,469.13 139,229.54 79,647.94 132,786.59

252,813.53 285,443.34 178,107.88 212,888.89

less:

Deferred tax liabilities

Leasing 245,895.60 168,242.82 127,580.72 86,710.78

valuation of commercial portfolio 12,943.19 17,925.29 12,943.19 17,925.29

258,838.79 186,168.11 140,523.91 104,636.07

Total deferred tax receivable - liabilities (6,025.26) 99,275.23 37,583.97 108,252.82

The income tax rate for the Group and the Company for 2006 was equal to 29%.Offsetting deferred tax receivables and liabilities takes place on the part of the Group and the Company, only when there is an applicable legal right thereto and when the deferred income taxes are handled by the same tax authority.

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

��

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.6.6 InvenTORIeS

The analysis of the account “Inventories” is as follows:

The GROUP The COMPAnY

Inventories 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Merchandise 163,477.50 119,534.00 49,943.50 0.00

163,477.50 119,534.00 49,943.50 0.00

5.6.7 ClIenTS AnD TRADe ReCeIvABleS

Clients and Trade Receivables of the Group and the Company are analyzed as below:

The GROUP The COMPAnY

Clients & other trade receivables 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Clients 35,355,397.78 25,463,403.74 32,675,608.70 23,412,895.71

Receivables from guarantees 573,911.39 81,844.50 10,499.35 81,844.50

Down payments 0.00 457,289.38 0.00 457,289.38

35,929,309.17 26,002,537.62 32,686,108.05 23,952,029.59

less: Impairment provisions 1,357,573.64 1,057,573.00 1,028,573.64 928,573.00

34,571,735.53 24,944,964.62 31,657,534.41 23,023,456.59

In the current financial year the company’s liabilities from commercial transactions have increased by 38% approximately, primarily due to the respective increase in turnover. From those liabilities, EUR 24 million concern the State and the general Public sector. In particular, included among those are the disputes in court against the Ministry of Interior, Public Administration and Decentralisation (IPESDDA) and the Agricultural Insurance Fund for claims amounting to approximately EUR 11.3 million in total, as well as a claim from a previous financial year amounting to EUR 3.8 million, for which even though an agreement exists, and the project has been delivered, the payment is being delayed and we are expecting it to be settled soon. Beside the above claims, which existed during the previous financial year, new ones have been created mainly from new agreements with the (IPESDDA) and IKA, which on 31 December 2006 amounted to EUR 7.6 million; payment of these claims is proceeding normally within the financial year 2007 and no problems have been encountered.

5.6.8 OTheR ReCeIvABleS

Group’s and Company’s Other Receivables are analyzed as follows:

3 8

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

The GROUPThe COMPAnY

Other Receivables 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Tax receivables 950,421.51 809,747.56 917,030.77 782,052.93

Next period expenses 892,734.62 92,086.88 937,078.98 71,196.59

Other receivables 3,189,856.77 3,735,293.01 3,296,693.00 3,591,179.38

5,033,012.90 4,637,127.45 5,150,802.75 4,444,428.90

less: Impairment provisions 100,000.00 0.00 100,000.00 0.00

4,933,012.90 4,637,127.45 5,050,802.75 4,444,428.90

The balance sheet item “Next Financial Year Expenses” for both the company and the group is with regard to the cost that was produced and invoiced within the financial year 2006 and is associated with the implementation of a new project of IPESDDA (Ministry of Internal Affairs) which was awarded to the company through a tender procedure. In particular, the corresponding cost was recorded in financial year 2006, and the balance is carried over to the next financial years until the agreement is completed (February 2009).The item “other liabilities” for both the company and the group concerns the advance payments that have been given to audiotext suppliers and for fixed equipment, advertising companies and companies promoting new projects abroad.

In particular:• With regard to the advance payments to the advertising companies, 65% of the project has been executed within the 1st quarter and is completion is expected within the financial year 2007. • The advance payments to suppliers of fixed assets is mainly associated with work and equipment at the company’s new offices on 68 Singrou Avenue, a major part of which has been completed.

5.6.9 FInAnCIAl InSTRUMenTS MeASUReD AT TheIR FAIR vAlUe ThROUGh The ReSUlTS OF The FInAnCIAl YeAR STATeMenT

The GROUP The COMPAnY

Securities 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Shares of domestic companies listed in ATHEX 42,788.18 42,788.18 42,788.18 42,788.18

Provisions of securities depreciation 37,801.80 54,986.45 37,801.80 54,986.45

Repos 411,173.51 401,513.09 411,173.51 401,513.09

Total financial instruments at fair value through results

491,763.49 499,287.72 491,763.49 499,287.72

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

��

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.6.10 CASh AnD CASh eQUIvAlenTS

The GROUP The COMPAnY

Cash & cash equivalents 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Available in hand 42,846.99 69,826.64 41,046.66 39,936.44

Sight deposits 3,145,377.35 2,462,274.46 2,749,042.27 1,833,069.25

Sight deposits in guarantee 557,920.87 0.00 557,920.87 0.00

Time deposits in collateral 2,970,000.00 0.00 2,970,000.00 0.00

Total 6,716,145.21 2,532,101.10 6,318,009.80 1,873,005.69

The cash reserves in the present financial year appear increased due to the cash-time deposits used as collateral for the issuance of bank letters of guarantee in order to secure the new projects by the Greek State.

5.6.11 eQUITY

Share CapitalCompany’s share capital is consisted of 27,848,000 common registered shares listed on the Athens Stock Exchange with a par value of 0.30 €.

number of shares Share Capital Share Premium Total

31.12.2005 27,848,000 8,354,400.00 3,941,804.84 12,296,204.84

31.12.2006 27,848,000 8,354,400.00 3,941,804.84 12,296,204.84

The amount of EUR 3,941,804.81 concerns the issuance of shares above par. The shares were issued after the share capital increase that took place after the public subscription and the listing of the Company’s shares on the Athens Stock Exchange. It is noted that during the Public Subscription procedure an amount of EUR 8,216,409.54 in total, was drawn, after issuance costs. According to a decision of the Ordinary General Shareholders Meeting on 23 June 2006, the amount of EUR 4,020,000 from the total amount drawn remains un-allocated and concerns the programmed expenditure on the purchase of a building, which however to date has not been purchased. The company’s management is still planning to purchase a building considering that this will best serve its long-term strategic goals. The company shares are floating in the Athens Stock Exchange. ReservesGroup’s reserves are analyzed as follows:

The GROUP The COMPAnY

Regular reserve

Balance as of 1st January 2005 679,235.06 676,019.58

Changes during the period 191,227.80 191,227.80

Balance as of 31st December 2005 870,462.86 867,247.38

Balance as of 1st January 2006 870,462.86 867,247.38

Changes during the period 216,001.33 216,001.33

Balance as of 31st December 2006 1,086,464.19 1,083,248.71

4 0

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.6.12 lOAn lIABIlITIeS

The GROUP The COMPAnY

loan liabilities 31.12.2006 31.12.2005 31.12.2006 31.12.2005

long term loans

Bank loans 1,406,250.00 0.00 0.00 0.00

Total long term loans 1,406,250.00 0.00 0.00 0.00

Short term loans

Bank loans 14,467,207.52 9,347,807.62 13,116,786.82 8,403,667.37

Total short term loans 14,467,207.52 9,347,807.62 13,116,786.82 8,403,667.37

Total loans 15,873,457.52 9,347,807.62 13,116,786.82 8,403,667.37

The long-term loan refers to a five year bond of a subsidiary company “CALL CENTER HELLAS S.A.” which is due on 15 July 2011, and the repayment of which will begin in October 2007 with fixed quarterly instalments of EUR 93,750.00.The group and company short-term loans are increased compared to the previous financial year, due to the needs for working capital because of the increase of claims against the State and delayed payments.The interest rate for long-term loans ranged during the financial year from 4.85% to 5.50%, where the short-term ranged from 5.4% to 6.50%.

5.6.13 eMPlOYee BeneFITS lIABIlITIeS

The company has used an actuarial study to determine liability regarding the personnel compensation due to retirement.

The GROUP The COMPAnY

employee benefits liabilities 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Balance Sheet liabilities

Retirement benefits 493,509.93 413,750.14 294,124.18 230,822.00

Total 493,509.93 413,750.14 294,124.18 230,822.00

Charges to the profit & loss account

Retirement benefits 79,759.79 (46,729.86) 63,302.18 22,822.00

Total 79,759.79 (46,729.86) 63,302.18 22,822.00

5.6.14 FInAnCIAl leASInG COnTRACTUAl lIABIlITIeS

Part of the company’s assets have been bought using financial leasing and the liabilities arising from this transaction, depending on the repayment time are analysed as follows:

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

41

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

The GROUP The COMPAnY

leasing liabilities 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Short term liabilities up to 1 year 625,582.72 582,197.20 420,293.16 282,236.63

Long term liabilities up to 3 years 445,464.84 513,715.77 309,058.81 343,461.54

Total 1,071,047.56 1,095,912.97 729,351.97 625,698.17

5.6.15 GRAnTS OF ASSeTS

This subsidy concerns the purchase of fixed assets of the Group and the Company and their amortisation is carried out according to the amortisation time of fixed assets.

The GROUP The COMPAnY

Grants 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Grants of investments in assets 68,539.24 33,209.92 43,631.80 0.00

Total 68,539.24 33,209.92 43,631.80 0.00

5.6.16 SUPPlIeRS AnD OTheR lIABIlITIeS

The supplier balance analysis and other similar liabilities of the Group and the Company are as follows:

The GROUP The COMPAnY

Suppliers & other liabilities 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Suppliers 2,436,139.31 2,477,820.30 6,174,109.08 3,061,697.43

Dividends payable 181,125.51 177,213.51 181,125.51 177,213.51

Cheques payable 3,794,473.17 4,466,502.01 3,199,021.86 4,109,503.14

Stuff remunerations payable 1,564,983.08 551,123.13 801,792.36 166,763.86

Accrued exprenses 151,968.78 293,960.57 100,572.64 264,364.12

Tax liabilities 2,002,653.13 2,740,944.74 1,175,087.17 2,151,797.48

Insurance organizations 1,210,789.69 489,590.67 590,690.15 166,148.25

Customer down payments 5,627,371.88 0.00 4,578,913.58 0.00

Sundry creditors 133,271.23 149,131.27 130,781.43 147,879.91

17,102,775.78 11,346,286.20 16,932,093.78 10,245,367.70

The significant increase (66%) in the liabilities of the parent company’s financial year with respect to the previous financial year is due primarily to the following causes:• Advance payments for projects awarded during the fiscal year from IKA and IPESDDA amounting to EUR 4.5 million in total.• Payable salaries that concern salaries that have been accounted for in December and which the Group and the company pay at the beginning of the next month, as per regular practice.• The increased liabilities in taxes and insurance funds, which are linked to the personnel increase within the financial year 2006, as well as the increased obligation in V.A.T. due to increased turnover. These liabilities have been paid within the lawful deadlines of financial year 2007.

4 2

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.6.17 InCOMe TAx lIABIlITIeS

The GROUP The COMPAnY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Currnet income tax 1,697,809.68 1,353,412.85 1,697,809.68 1,353,412.85

1,697,809.68 1,353,412.85 1,697,809.68 1,353,412.85

5.6.18 COST OF GOODS SOlD

Cost of goods sold is analyzed as follows:

The GROUP The COMPAnY

Cost of Goods Sold 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Purchases of merchandise 331,237.20 59,416.98 360,198.48 --

Employee remunerations & expenses 13,638,934.79 7,664,814.37 6,030,452.04 2,991,061.30

Third parties remunerations & expenses 48,474.61 256,619.38 23,681.00 5,512.50

Third parties provisions 13,465,326.73 10,276,434.89 21,116,610.77 15,192,102.70

Taxes & fees 16,986.91 9,957.94 8,121.47 4,789.98

Other expenses 245,096.67 88,475.40 182,444.16 82,703.82

Depreciations of assets 1,254,869.58 910,351.55 938,622.96 603,195.62

Income provisions 476,592.97 (46,729.86) 254,282.26 22,822.00

Total 29,477,519.46 19,219,340.65 28,914,413.14 18,902,187.92

The cost increase of sales of the group and the company in the current financial year with respect to the previous financial year is due to the following:• Increase in personnel, both for the company and the group (CALL CENTER), due to the undertaking of new projects and the increased need for new job positions.• The increase in third party benefits which is 39% for the company with respect to the previous financial year and is due to the increased services of the subsidiary companies to the parent company as well as the remaining cost due to the company’s increase in turnover. On a group level that percentage fell to 30.9% due to the elimination of intra-company transactions. 5.6.19 ADMInISTRATIve, SellInG AnD ReSeARCh exPenSeS

Administrative, selling and research expenses are analyzed as below:

The GROUP The COMPAnY

Administrative expenses 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Employee remunerations & expenses 1,389,190.38 1,113,143.46 604,609.71 582,008.05

Third parties remunerations & expenses 1,423,197.44 1,071,593.84 1,320,978.76 993,385.67

Third parties provisions 570,422.71 459,882.26 492,655.59 434,262.49

Taxes & fees 105,096.68 106,187.35 88,321.15 82,208.82

Other expenses 310,470.80 485,484.92 271,249.04 473,771.65

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

4�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Depreciations of assets 270,168.79 211,744.50 244,748.66 204,042.81

Income provisions 7,455.69 100,000.00 5,425.00 100,000.00

Sale of other inventories 0.00 (235.00) 0.00 (235.00)

Grants & other revenues 0.00 (12,637.83) 0.00 (7,765.50)

Revenues from other activities 0.00 (30,220.64) 0.00 (84,700.90)

Total 4,076,002.49 3,504,942.86 3,027,987.91 2,776,947.09

The GROUP The COMPAnY

Selling expenses 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Employee remunerations & expenses 544,315.82 519,080.50 400,822.36 367,437.59

Third parties remunerations & expenses 79,529.80 82,462.25 0.00 30,490.25

Third parties provisions 70,714.80 86,830.37 67,253.83 47,651.78

Taxes & fees 1,576.77 1,255.05 856.04 872.99

Other expenses 5,554,652.74 4,155,778.73 5,543,523.12 4,143,102.82

Depreciations of assets 1,801.14 9,762.46 0.00 0.00

Income provisions 3,661.46 0.00 3,595.56 0.00

Total 6,256,252.53 4,855,169.36 6,016,050.91 4,589,555.43

The item “Other expenses” concerns advertising through television, the press and outdoors.

The GROUP The COMPAnY

Research expenses 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Employee remunerations & expenses 18,062.98 76,026.85 18,062.98 76,026.85

Third parties remunerations & expenses 0.00 0.00 0.00 0.00

Third parties provisions 1,494.40 22,399.60 1,494.40 22,399.60

Taxes & fees 51.26 532.19 51.26 532.19

Other expenses 1,184.63 47,585.30 1,184.63 47,585.30

Depreciations of assets 0.00 0.00 0.00 0.00

Income provisions 0.00 0.00 0.00 0.00

Total 20,793.27 146,543.94 20,793.27 146,543.94

5.6.20 OTheR InCOMe RevenUeS

The other operational revenues for financial year 2005 have been subtracted from management expenses, whereas in 2006 they are as follows:

4 4

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

The GROUP The COMPAnY

Other income revenue 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Grants-subsidies (GMEO) 13,465.50 0.00 1,585.50 0.00

Grants of assets 16,002.28 0.00 7,699.80 0.00

Revenues from previous period provisions 107,949.69 0.00 100,00.00 0.00

Revenues from services to third parties 8,796.00 0.00 8,796.00 0.00

Revenues from assets realization 5,084.32 0.00 4,674.29 0.00

Revenues from rents 23,932.50 0.00 87,038.57 0.00

Revenues from communal expenses 0.00 0.00 0.00 0.00

Other revenues 101.43 0.00 101.43 0.00

Total 175,331.72 0.00 209,895.59 0.00

5.6.21 FInAnCIAl RevenUeS – exPenSeS AnD OTheR FInAnCIAl ReSUlTS

The GROUP The COMPAnY

Financial revenues – expenses & other financial results 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Interest income from:

Securities income 2,455.54 0.00 2,455.54 0.00

Other interest income 29,077.51 2,618.81 27,386.89 2,542.52

Differences (income) from participations & securities sales 9,356.65 3,888.72 9,356.65 3,888.72

Other capital income 616.08 218.77 616.08 218.77

Total 41,505.78 6,726.30 39,815.16 6,650.01

Interest expenses from:

Interests & expenses from long term bank financing 64,486.96 0.00 0.00 0.00

Interests & expenses from short term bank financing 662,391.00 460,141.73 595,417.64 380,227.45

Interests from leasing 71,544.87 63,659.34 46,953.85 30,042.15

Commissions from guarantees 173,641.15 92,880.65 170,697.66 91,846.65

Other bank expenses 30,231.48 10,778.87 26,228.00 6,293.26

Total 1,002,295.46 627,460.59 839,297.15 508,409.51

Other financial reuslts

Profit / loss at fair value through profit & loss account (17,184.65) 56,016.56 (17,184.65) 56,016.56

Impairment participation in subsidiary 0.00 0.00 (224,995.00) 0.00

Total (17,184.65) (56,016.56) (242,179.65) 56,016.56

The Company’s financial income appears increased due to the cash-time deposits, whereas the financial expenses increased due to an increase in loans; moreover the other financial results increased due to depreciation provisions made for participations and securities.

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

4�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.6.22 InCOMe TAx

Income tax is analyzed as below:

The GROUP The COMPAnY

Income tax 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Income tax 1,836,566.27 1,859,091.57 1,836,566.27 1,859,091.57

Differences from tax audit 0.00 0.00 0.00 0.00

Deferred taxes 105,300.49 163,952.78 70,668.85 100,400.46

Total 1,941,866.76 2,023,044.35 1,907,235.12 1,959,492.03

5.6.23 eARnInGS PeR ShARe

Total earnings per share attributed to shareholders of the parent company have as follows:

The GROUP The COMPAnY

earnings per share 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Earnings distributed to parent company’s shareholders 4,264,663.08 3,850,545.82 4,320,026.68 3,937,905.65

Weighted average number of shares 27,848,000 27,848,000 27,848,000 27,848,000

Basic earnings per share (Euro per share) 0.15 0.14 0.16 0.14

5.6.24 PleDGeS

Guarantees of the Group and the Company are analyzed as follows:

The GROUP The COMPAnY

Guarantees 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Granted warranties & deposits 5,848,455.55 872,266.16 5,848,455.55 872,266.16

Granted bond guarantees & participations 5,292,027.82 3,434,423.64 4,961,515.82 3,386,570.14

Total granted guarantees 11,140,483.37 4,306,689.80 10,809,971.37 4,258,836.30

The increase in guaranties is due to the new agreements of the company and the group with the Greek State and the general Public sector.

5.6.25 COnTInGenT ClAIM - lIABIlITIeS

i. Tax auditUnaudited tax years of the Group’s companies have as below:

Group Companies Unaudited Fiscal Years

NEWSPHONE HELLAS S.A. 2003-2005

CALL CENTER HELLAS S.A. 2002-2005

NOETRON S.A. 2003-2005

4 6

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

For the un-audited financial years that are listed in the above table, there is a possibility that additional taxes and surcharges will be imposed when they are examined and finalised. The outcome of the tax audit cannot be predicted and therefore no provisions are included in the financial statements.

ii. litigationLegal cases of the Group and the Company are as follows:

For the Company:

1. Case of MOBIlePhOnIA BvDecision of the Athens Court of First Instance 5309/2005 against the company and in favour of the prosecutor MOBILEPHONIA BV for the amount of 469 th. €. which was adjudicated by the Athens Court of Appeals and decision No. 8841/2006 was issued which rejected the appeal. Against that decision a motion for suspension as well as an appeal was filed before the Supreme Court. At the same time a motion has been filed against MOBILEPHONIA BV for EUR 4.2 million in total and against that motion, MOBILEPHONIA BV has filed a counter-motion for EUR 3.8 million; both motions are being heard by the Multi-member First Instance Court of Athens on 20 September 2007. The opinion of the Legal Counsel on this case is the following:• The motion for the amount of EUR 4.2 million will be accepted for a higher amount than the one adjudicated, i.e. EUR 496 thousand.• The counter-motion of the litigant for EUR 3.8 million lacks any chance of success.In view of the above, the counsel considers that even if the Supreme Court rejects the company’s appeal, the entire legal outcome will not affect the financial status of same.

2. IPeSDDA Case Additional Project “ARIADnI I”In context to the implementation of the “ARIADNI I” agreement with the IPESDDA, which concerned the creation and operation of the Citizen Service Centres, an additional project to that of the agreement was supplied (additional phone calls compared to those of the agreement) for the purpose of covering the national elections in March 2004, a fact that was advertised by the IPESDDA through the media. The agreement was completed and delivered during financial year 2005, through which all the phone calls were delivered both the contractual and the additional. The IPESDDA did not proceed as it should, to amend the initial agreement to include the additional project, even though:• this was provided for in a special article of the agreement• it had received the positive opinion by the Government’s Legal counsel• the IPESDDA had taken delivery of the entire project Following this outcome and not having any other choice, an invoice was issued for the additional offered services to the IPESDDA, for a total amount of EUR 3.4 million plus EUR 0.6 million in V.A.T., paid the respective taxes (V.A.T., income tax), the invoice was accepted by the IPESDDA and at the same time the motion was filed at the Athens Administrative Court of Appeals (30 December 2005), which will set the hearing date. The opinion of the company’s Legal Counsel on these issues is that it is quite likely that this case will end in favour of the company.

3. IPeSDDA – OGA Case In context to the implementation of the above project, “ARIADNI I”, the company gathered, digitised, updated and supplied general information for OGA, through the Citizen Service Call Centre phone line (1564).

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

4�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

Over time it was discovered that an increasing number of insured persons were asking, through 1564, for information that they could not receive by directly calling OGA. So, in May 2003, OGA contacted the company, officially, and requested from them to submit specific proposals. However, because OGA was not willing to incur the cost of the project, it turned to IPESDDA and requested that the project be included in the “ARIADNI” agreement above.IPESDDA accepted the request and gave the order for immediate implementation of the project while at the same time it requested from the company to submit a technical report in order to schedule the approval for the expenditure and the signing of the agreement. The company had already begun providing the service, in expectation of the signing of the agreement with IPESDDA, which however did not happen until the project was completed. The project was completed during financial year 2005, the delivery of which was signed by the Director of OGA with a full and detailed listing of the man-hours provided by the company throughout the implementation of the project.Having no other means to claim the amounts for financial year 2005 and following delivery of the project, the company issued an invoice for a total amount of EUR 6.1 million, plus V.A.T., paid the respective taxes to the Greek State and at the same time filed a motion (31 December 2005) in the Athens Administrative Court of Appeals against OGA and IPESDDA. The opinion of the company’s Legal Counsel on these issues is that it is quite likely that this case will end in favour of the company.

4. Magisterial dispute with OTEThe Hellenic Telecommunications Organisation (OTE) has filed a lawsuit against the company before the Multi Member First Instance Court of Athens, claiming the amount of 2.9 €, mainly for the company’s advertising campaign for the directory assistance service 11880, which at its opinion is illegal and misleading. At the same time, a motion was filed against OTE before the Multi Member First Instance Court of Athens through which the company raised claims and documented actual and future damages that OTE had caused by paying increased amounts for more advertising but also for slander through the press for a total amount of EUR 7.2 million. The two motions were jointly heard on 17 May 2006 and decision No. 5502/2006 was issued, which rejected the company’s motion and accepted OTE’s motion as to the part that forces the company:• To cease using the “131” phone line in any commercial spot as well as any combination of same with 11880. • To state in its commercials the company name and trade name. To date, none of the two parties have appealed against the above decision and the opinion of the legal counsel is that currently there is no impact on the company’s financial results.

5. Motion of Medical Doctor Theodorakopoulos Doctor Theodorakopoulos has filed a motion against the company at the Multi Member First Instance Court of Athens for a total of 102.8 thousand, which is analysed in 2.8 thousand for overtime and 100 thousand for moral damages.The opinion of the Legal Counsel is that this claim does not bear any risks, and its outcome shall not affect negatively the company’s financial status.

6. Other motions by the company against third parties Motions have been filed against third parties and mainly against regional mass media companies, for a total claim of EUR 455 thousand approximately, compared to EUR 268 thousand recorded in the company’s books. The opinion of the Legal Counsel is that these motions will be partly or entirely accepted. Regarding the possibility that

4 8

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

the said claims will not be paid in full by 31 December 2006, a bad debt provision has been formed, amounting to EUR 85 thousand which will be recorded against the results of financial year 2006.

For Subsidiary Company “CALL CENTER HELLAS S.A.”

1. An amount of EUR 102,862.16 as moral damage and overtime pay is being claimed against the company through a motion for which a decision is expected to be issued soon. According to the opinion of the Attorney-at-law in charge, the motion does not bear any risks for the company, nor is their any implication that might negatively affect the company’s financial status, because the company terminated the respective agreement, lawfully, timely and by observing all the provisions of the Law and therefore the respective claim for overtime pay as well as the subsequent claim for compensation due to moral damages are both unfounded.

The Subsidiary Company “NOETRON S.A.”

1. The company Dimotiki Anaptixiaki Zakinthou S.A. is disputing our company’s claim according to which they do not acknowledge our company’s invoices amounting to EUR 260 thousand approximately, a dispute that was expressed through an extrajudicial document that was served to the company on 7 March 2006. With an extrajudicial reply that was served on the company Dimotiki Anaptixiaki Zakinthou S.A. on 21 March 2006, our company claimed on reasonable grounds that the contractual services were provided fully and timely, whereas no reply or reaction was observed from Dimotiki Anaptixiaki Zakinthou S.A., something which on its own can be evaluated. Moreover, an important piece of evidence that strengthens our position in the said dispute is that Anaptixiaki Zakinthou has accepted the transfer of the invoices to the bank. In order to avoid any potential damage from the non-payment of the claim, the company has made provisions against the results amounting to EUR 100 thousand.2. Our company filed a motion in the Multi-member First-instance Court of Athens against the S.A. company trading under the name “BUNG GmbH BERATENDE INGENIEURE”, with trial brief filing number 12121/29.12.2006 and the hearing date set on 13 December 2007. With the said motion we request from the defendant to pay the contractual amount that it owes, which amounts to EUR 179 thousand (including V.A.T. 19%). It is expected that the motion will be accepted. In order to avoid any potential damage from the non-payment of the claim, the company has made bad debt provisions against the results amounting to EUR 100 thousand.

5.6.26 TRAnSACTIOnS WITh AFFIlIATeD PARTIeS

Transactions with subsidiaries

The following transactions and balances are transactions of the Group’s subsidiary companies. These transactions, between companies that are included in the Group’s consolidated financial statements, are deleted as a result of the consolidation process.

InTeRCOMPAnY ReCeIvABleS – lIABIlITIeS 31/12/2006

lIABIlITIeS

ReCe

IvA

BleS

neWSPhOne hellAS S.A. CAll CenTeR S.A. nOeTROn S.A. TOTAl

NEWSPHONE HELLAS S.A. 0.00 156,679.17 156,679.17

CALL CENTER S.A. 3,931,787.63 12,845.00 3,944,632.63

NOETRON S.A. 0.00 0.00 0.00

TOTAl 3,931,787.63 0.00 169,524.17 4,101,311.80

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

4�

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

InTeRCOMPAnY SAleS – PURChASeS 31/12/2006

SelleR

PURC

hA

SeR

neWSPhOne hellAS S.A. CAll CenTeR S.A. nOeTROn S.A. TOTAl

NEWSPHONE HELLAS S.A. 67,772.54 100.00 67,872.54

CALL CENTER S.A. 8,032,583.22 21,877.16 8,054,460.38

NOETRON S.A. 1,272,921.20 0.00 1,272,921.20

TOTAl 9,305,504.42 67,772.54 21,977.16 9,395,254.12

InTeRCOMPAnY ReCeIvABleS – lIABIlITIeS 31/12/2005

lIABIlITIeS

ReCe

IvA

BleS

neWSPhOne hellAS S.A. CAll CenTeR S.A. nOeTROn S.A. TOTAl

NEWSPHONE HELLAS S.A. 0.00 0.00 0.00

CALL CENTER S.A. 664,982.90 21,861.44 686,844.34

NOETRON S.A. 352,663.61 352,663.61

TOTAl 1,017,646.51 0.00 21,861.44 1,039,507.95

InTeRCOMPAnY SAleS – PURChASeS 31/12/2005

SelleR

PURC

hA

SeR

neWSPhOne hellAS S.A. CAll CenTeR S.A. nOeTROn S.A. TOTAl

NEWSPHONE HELLAS S.A. 64,826.56 0.00 64,826.56

CALL CENTER S.A. 5,066,415.24 21,101.80 5,087,517.04

NOETRON S.A. 902,164.75 902,164.75

TOTAl 5,968,579.99 64,826.56 21,101.80 6,054,508.35

Transactions with other related companies

ReCeIvABleS FROM OTheR AFFIlIATeD PARTIeS(ADMInISTRATIve MeMBeRS, 1ST DeGRee RelATIvePeRSOnS OF TheM, eTC.)

The GROUP The COMPAnY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Balance of other receivables 0.00 0.00 0.00 0.00

APERGIS – DIMITROKALLIS LTD 1,075.23 0.00 1,075.23 0.00

FERGON S.A. 48,849.97 52,606.77 48,849.97 52,606.77

FILOSOFIA ZOIS S.A. 1,864.40 1,864.40 1,864.40 1,864.40

Total 51,789.60 54,471.17 51,789.60 54,471.17

5 0

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

lIABIlITIeS FROM OTheR AFFIlIATeD PARTIeS(ADMInISTRATIve MeMBeRS, 1ST DeGRee RelATIvePeRSOnS OF TheM, eTC.)

The GROUP The COMPAnY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Balance of other liabilities 33,779.20 36,999.21 24,153.56 24,914.10

Total 33,779.20 36,999.21 24,153.56 24,914.10

SAleS TO OTheR AFFIlIATeD PARTIeS(ADMInISTRATIve MeMBeRS, 1ST DeGRee RelATIvePeRSOnS OF TheM, eTC.)

The GROUP The COMPAnY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Revenues of other activities 4,046.82 8,093.64 0.00 0.00

APERGIS – DIMITROKALLIS LTD 4,066.38 3,753.00 4,066.38 3,753.00

FERGON S.A. 1,200.00 1,200.00 1,200.00 1,200.00

FILOSOFIA ZOIS S.A. 0.00 1,580.00 0.00 1,580.00

Total 9,313.20 14,626.64 5,266.38 6,533.00

No purchases were made by other affiliated members.

Remunerations of high executive members

The GROUP The COMPAnY

Benefits to basic executive members 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Board of Directors

Remunerations of BoD members 761,000.00 300,000.00 761,000.00 300,000.00

Managerial Members

Remunerationsand other short term benefits 990,174.38 1,005,852.51 600,009.88 689,120.26

Total 1,751,174.38 1,305,852.51 1,361,009.88 989,190.26

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

�1

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.6.27 eMPlOYee BeneFITS

The personnel cost is analysed as follows:

The GROUP The COMPAnY

employee Cost 31.12.2006 31.12.2005 31.12.2006 31.12.2005

Salaries, wages, benefits, bonuses 12,600,903.52 7,310,679.90 5,560,098.13 3,191,165.54

Social security expenses 3,265,657.07 1,875,319.95 1,412,329.17 744,687.58

Redundancy 79,878.15 165,424.10 69,773.75 65,794.17

Other benefits 21,788.40 21,641.23 11,746.04 14,886.50

Total 15,968,227.14 9,373,065.18 7,053,947.09 4,016,533.79

The personnel of the Group and the Company on 31 December 2006 and 2005 is analysed as follows:

The GROUP The COMPAnY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Employees 539 142 435 85

Wage earners 1370 502 489 63

Total 1909 644 924 148

5.6.28 ReSTATeMenT OF ITeMS In The FInAnCIAl STATeMenTS OF 31ST DeCeMBeR 2005

On the comparative items of the balance sheet on 31 December 2005 and for reasons of proper information the following reclassifications were made:

The GROUP The COMPAnY

Account Published Amount

Reformed Amount Reformation Published

AmountReformed Amount Reformation

Receivables of deferred tax 82,300.03 16,975.20 99,275.23 88,215.92 20,036.90 108,252.82

Other Receivables 4,658,260.20 21,132.75 4,637,127.45 4,464,465.80 20,036.90 4,444,428.90

Liabilities from leasing contracts

586,354.75 4,157.55 582,197.20 282,236.63 -- --

1. From the Current Asset item “Other Receivables”, the amount of EUR 21,132.75 for the Group and EUR 20,036.90 for the Company associated with deferred tax liabilities was transferred to the “Deferred Tax Liabilities” item of the Non-Floating Assets.

2. From the short-term claims item “Claims from financing lease agreements” an amount of EUR 4,157.55 concerning deferred tax claims was transferred and offset in the “Deferred Tax Liabilities” item of the Non-Floating Assets.

5 2

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

5.6.29 POST BAlAnCe SheeT evenTS

According to a decision by the extraordinary general shareholders meeting on 12 January 2007, the parent Company has adopted a plan to purchase own shares. The plan provides for the purchase of 2,784,000 shares, namely 10% of its share capital. In context with the above plan and according to Article 16 of Law 2190/1920 and EC Regulation 2273/2003, the Company has acquired as of 5 March 2007, 120,695 Shares.

Kallithea, March 05, 2007

The President of theBoard of Directors

Managing DirectorAccounting Manager

George TheodosisID No. Κ-820079

Efstratios ApergisID No. ΑΕ-011559

Stavroula KilakouReg. No. ΟΕΕ ΑΔ. Α’ 17315

ANNUAL COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS

��

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

NEWSPHONE HELLAS S.A.AUDIOTexT, COnTenT AnD APPlICATIOnS SeRvICeS

DATA AND INFORMATION FOR THE PERIOD FROM 01 JANUARY TILL 31 DECEMBER 2006 (according to the l.2190, Article 135 for the companies that prepered annual financial statements,

consolidated or not according to i.A.S)

The following figures and information are intended to offer a general overview on the financial condition and results of NEWSPHONE HELLAS S.A. and the Group. Readers, seeking full information on the financial position and the financial results of the company should access the annual financial statements according to International Financial Reporting Standards together with the Audit Report of the Chartered Auditor Accountant. Suggestively, readers can visit the company’s web site, where the said information is posted.

COMPAnY DeTAIlS

Headquarters 280, Thiseos Av., 176 75 Kallithea

No in the register of Societes Anonymes 33090/06/Β/95/3

Supervisory Authority Ministry of Development, General Secretariat of Trade,

Department of Societes Anonymes

Σύνθεση Διοικητικού Συμβουλίου George Theodosis, Tereza Theodosi, Efstratios Apergis,

Athanassios Argyropoulos, Spyridon Pyromallis

Dimitrios Tranakas

Date of approval of the Financial Statements 5-March-07

Certified Auditor-Accountant Loukisa S. Reggina

Audit firm SOL S.A.

Review report Audit report with accord

Company’s Website www.newsphone.gr

5 4

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATIONSUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

BALANCE SHEET (amounts in th. €)

ASSETS THE GROUP THE COMPANY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Fixed Assets 5,594,429.73 5,709,070.14 7,538,354.63 7,870,172.86

Inventories 163,477.50 119,534.00 43,943.50 0.00

Trade receivables 34,571,735.53 24,944,964.62 31,657,534.41 23,023,456.59

Other assets 12,140,921,60 7,668,516,27 11,860,576,04 6,816,722.31

TOTAl ASSeTS 52,470,564.36 38,442,085.03 51,100,408.58 37,710,351.76

CAPITAl AnD lIABIlITIeS

Long-term liabilities 2,419,789.27 960,675.83 646,814.79 574,283.54

Short-term bank liabilities 14,467,207.52 9,347,807.62 13,116,786.82 8,403,667.37

Other short-term liabilities 19,426,168.18 13,381,896.25 19,050,196.62 11,981,017.18

Total Liabilities (a) 36,313,164.97 23,690,379.70 32,813,798.23 20,958,968.09

Share Capital 8,354,400.00 8,354,400.00 8,354,400.00 8,354,400.00

Other Shareholders Equity 7,435,563.75 5,955,702.16 9,932,210.35 8,396,983.67

Total Shareholders equity (b) 15,789,963.75 14,310,102.16 18,286,610.35 16,751,383.67

Minorities (c) 367,435.64 441,603.17 0.00 0.00

Total equity (d)=(b)+(c) 16,157,399.39 14,751,705.33 18,286,610.35 16,751,383.67TOTAl CAPITAl AnD lIABIlITIeS (e)=(a)+(d) 52,470,564.36 38,442,085.03 51,100,408.58 37,710,351.76

InCOMe STATeMenT FOR The PeRIOD(amounts in th. €)

THE GROUP THE COMPANY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Sales 46,765,566.18 34,165,158.59 45,038,273.08 32,758,375.00

Gross profit/ (loss) 17,288,046.72 14,945,817.94 16,123,859.94 13,856,187.08

EBIT 8,637,169.66 7,571,020.29 8,452,295.06 7,150,379.05

EBITDA 7,110,330.15 6,439,161.78 7,268,923.44 6,343,140.62

Profit/(loss) before taxes 6,132,355.82 5,874,444.05 6,227,261.80 5,897,397.68

Less taxes (1,941,866.76) (2,023,044.35) (1,907,235.12) (1,959,492.03)

Profit/(loss) after taxes 4,190,489.06 3,851,399.70 4,320,026.68 3,937,905.65

Attributable to:

Shareholders 4,264,663.08 3,850,545.82 4,320,026.68 3,937,905.65

Minority interest (74,174.02) 853.88 0.00 0.00

earnings per share - basic (in euro) 0.15 0.14 0.16 0.14

Suggested divident per share - (in euro) 0.10 0.10 0.10 0.10

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

��

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

STATeMenT OF ChAnGeS In eQUITY(amounts in th.€)

THE GROUP THE COMPANY

31.12.2006 31.12.2005 31.12.2006 31.12.2005

Equity balance at the beginning of the period (01.01.2006 & 01.01.2005 respectively)

14,751,705.33 16,097,105.63 16,751,383.67 15,598,278.02

Profit after taxes for the period 4,190,489.06 3,851,399.70 4,320,026.68 3,937,905.65

Total 18,942,194.39 19,948,505.33 21,071,410.35 19,536,183.67Distribution of dividends (2,784,800.00) (2,784,800.00) (2,784,800.00) (2,784,800.00)Other adjustments 5.00 0.00 0.00 0.00

Change in Equity from the acquisition of an additional share of a subsidiary

0.00 (2,412,000.00) 0.00 0.00

equity balance at the end of the period (31.12.2006 & 31.12.2005 respectively) 16,157,399.39 14,751,705.33 18,286,610.35 16,751,383.67

CASh FlOW STATeMenTS(amounts in th. €)

THE GROUP THE COMPANY

1.1-31.12.2006 1.1-31.12.2005 1.1-31.12.2006 1.1-31.12.2005

Operating Activities

Proceeds from receivables 58,383,487.19 18,666,123.44 47,467,905.78 20,782,132.19

Payments to suppliers, employees, etc. (54,170,325.87) (17,789,059.04) (41,758,582.96) (20,003,610.97)

Tax return payments (1,353,720.56) (963,028.96) (1,353,720.56) (1,044,957.55)

Interests paid (937,994.29) (627,460.59) (813,120.07) (508,409.51)

Total inflows/ outflows from operating activities (a) 1,921,446.47 (713,425.15) 3,542,482.19 (774,845.84)

Investing Activitites

Payments for the purchase of tangible and intangible assets

(1,720,064.41) (1,846,928.24) (1,412,100.05) (1,731,785.86)

Proceeds from sale of tangible and intangible assets

263,592.42 218,756.34 263,692.42 178,235.06

Proceeds (payments) from the sale (acquisition) of subsidiaries, affiliated companies,joint-ventures, etc.

5.00 0.,00 5.00 (2,412,000.00)

Proceeds (payments) from the sale (purchase) of financial instruments (shares,securities)

0.00 (2,412,000.00) 0.00 0.00

Interests collected 30,533.94 0.00 28,843.33 0.00

Dividends collected 2,453.28 0.00 2,453.28 0.00

Total inflows/ outflows from investing activities (b) (1,423,497.77) (4,040,171.90) (1,117,106.02) (3,965,550.80)

Financing Activities

Proceeds from issued loans 33,561,540.25 38,492,716.70 31,303,987.39 37,253,532.16

Payments from loans (26,427,314.57) (29,933,193.21) (26,144,050.21) (28,851,194.30)

Payments from loans (667,260.27) (523,736.11) (359,421.24) (243,568.38)

Dividends paid (2,780,888.00) (2,726,030.47) (2,780,888.00) (2,726,030.47)

5 6

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATIONSUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

Total inflows/ outflows from financing activities (c) 3,686,077.41 5,309,756.91 2,019,627.94 5,432,739.01

net increase (decrease) in cash and cash equivalents (a)+(b)+(c) 4,184,044.11 556,159.86 4,445,004.11 692,342.37

Cash and cash equivalents at the beginning of the period 2,532,101.10 1,975,941.24 1,873,005.69 1,180,663.32

Cash and cash equivalents at the end of the period 6,716,145.21 2,532,101.10 6,318,009.80 1,873,005.69

ADDITIOnAl DATA AnD InFORMATIOn

1. The consolidated financial statements include the following companies:

Corporate name Headquarters Share of participation Consolidation method

NEWSPHONE HELLAS S.A. 280, THISEOS AVE. KALLITHEA Parent

CALL CENTER HELLAS S.A. 280, THISEOS AVE. KALLITHEA 70.00% Full

NOETRON S.A. 280, THISEOS AVE. KALLITHEA 74.998% Full

2. The parent company NEWSPHONE HELLAS S.A. has been tax audited through FY 2002, its subsidiary “CALL CENTER HELLAS S.A.” through FY 2001, while its subsidiary “NOETRON S.A.” has not been tax audited since its establishment in 2003. Therefore, the company’s tax obligations have not yet been finalized. 3. The main Accounting principles of the Balance Sheet as of 31.12.2005 have been adopted. 4. The Company and the Group do not have any properties and therefore no encumbranc.5. The company has filed suits against third parties of € 16.7 mil, while the suits filed against the company amount to € 4,5 mil.6.The total number of people employed on 31.12.2006 by the Company and the Group amounts to 924 and 1.909 people respectively.7.The amounts of sales and purchases cumulatively from the beginning of the financial year which have arisen from transactions with affiliated parties, as per IAS 24, are presented in the following table:

THE GROUP THE COMPANY

a) Sales of goods and services 9,313.20 73,138.92

b) Purchases of goods and services 1,751,174.38 10,666,514.30

c) Receivables 51,789.60 208,468.77

d) Liabilities 33,779.20 3,955,941.19

e) Transactions and fees of Managers and top executives 1,760,487.58 1,366,276.26

f) Receivables from managers and top executives 51,789.60 51,789.60

g) Liabilities to managers and top executives 33,779.20 24,153.56

8. For aims of better information the classification of certain chalk-lines of Economic situations has changed and reformed the respective balances of previous year so that they are rendered comparable.9. The subjects of accent of report of control of auditor- accountant are reported in the unaudited financial years and in the delay of liquidation of requirements from the Public and wider Public sector:

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

��

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

The taxation returns of company and group for the financial years 2002 till 2006 have not been examined by the taxation authorities, so that exists the possibility of imposition of additional taxes and increases at per year that will be examined and are definitized. The result of tax audit it is not possible to be forecasted in the present stage and, consequently has not become any forecast in the financial statements related to this subject. The delay of liquidation of receivables from the Public and wider Public sector, total amount 15,3 from € from which 11,3 have been litigated. More specifically the company has file a lawsuit (30-12-2005), front the Administrative Court of appeal Athens and up to now has not been determined actionable. According to the estimate of the Legal Adviser the judicial success of this lawsuit in favour of the company is possible.

Kallithea, March 5, 2007

CHAIRMAN OF THE BORD MANAGING DIRECTOR ACCOUNTING MANAGERGEORGE THEODOSIS EFSTRATIOS APERGIS STAVROULA KILAKOU

ID No Κ-820079 ID No ΑΕ 011559 License No Α’17315

5 8

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATIONSUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

The company “ NEWSPHONE HELLAS – ANONYME COMMERCIAL COMPANY – TELESOUNDINFORMATION SERVICES – COMPLETED IT AND COMMUNICATION SERVICES” which is headquartered in Kallithea, Attica and its offices are on a building at 280, Thisseos Ave. and is affiliated with the following companies as per article 42e par. 5 of Cod. Law 2190/1920 and for financial year 2006 the following transactions between IDISEOFONIKI HELLAS S.A. and the associated companies has occurred with the respective income and expenses:

With the company Call Center Hellas S.A.:1. From the company Call Center Hellas S.A. an income occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 62,772.54 from the leasing contract as of 1-3-2003 on the property on 282, Thisseos Ave.2. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 1,190,243.00 from the contract as of 1-7-2003 for the appointment by NEWSPHONE HELLAS S.A. to Call Center Hellas SA of part of the ARIADNE project, as it was extended with the private agreement as of 1-2-2005, and as it was extended and amended with the private agreement as of 1-10-2005. 3. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 395,258.04 from the contract as of 2-10-2006 for the appointment from NEWSPHONE HELLAS S.A. to Call Center Hellas SA of part of the project undertaken for the account of the Social Security Organisation (IKA).4. IDISEOFONIKI HELLAS S.A. incurred an expense from Call Centre Hellas S.A. amounting to EUR 281,061.81, arising from the agreement dated 1 October 2006 between IDISEOFONIKI HELLAS S.A. and Call Centre Hellas S.A. regarding the assignment of administrative support to public works.5. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 19,390.05 from the leasing contract as of 24-2-2004 for the 4th floor property on 280 Thisseos Ave.6. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 731,857.00 from the contract as of 1-10-2004 for the appointment by NEWSPHONE HELLAS S.A. to Call Center Hellas SA of part of the project undertaken for the account of the Hellenic Railways Organisation (OSE), as it was extended and amended according to the private agreement as of 1-7-2005. 7. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 13,034.00 from the contract as of 1-10-2004 for the appointment by NEWSPHONE HELLAS S.A. to Call Center Hellas SA of part of the project undertaken for the account of the Youth & Sport Organisation (ONA).8. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 276,657.50 from the contract as of 2-7-2005 for the appointment by NEWSPHONE HELLAS S.A. to Call Center Hellas SA of part of the project undertaken for the account of Agricultural Insurance Organisation.9. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 4,909,142.50 from the contract as of 4-7-2005 for the appointment by NEWSPHONE HELLAS S.A. to Call Center Hellas SA of part of the project for the telephone number 11880, and as extended and modified with the private agreement as of 1-4-2006. 10. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 97,852.50 from the contract as of 1-12-2005 for the appointment by NEWSPHONE HELLAS

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

��

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

SUMMARY ANNUAL COMPANY AND CONSOLIDATED DATA AND INFORMATION

S.A. to Call Center Hellas SA of part of the project undertaken for the account of PANAFON, and as extended and modified with the private agreement as of 1-4-2006.11. From the company Call Center Hellas S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 118,082.82 from the agreement as of 1-10-2006 for the cover by NEWSPHONE HELLAS S.A. on behalf of Call Center Hellas SA of 40% of the expenses for the maintenance and general use of the common places, things and facilities of the building on Thisseos avenue in Kallithea Attica.

With the company NOETRON S.A.: 1. IDISEOFONIKI HELLAS S.A. incurred an expense from NOETRON S.A. amounting to EUR 18,600.00, arising from the agreement dated 1 October 2006 between IDISEOFONIKI HELLAS S.A. and NOETRON S.A. regarding the provision of software development services and technical support on electronic administration issues as well as ICT standards application in Greece and abroad.2. IDISEOFONIKI HELLAS S.A. incurred an expense from NOETRON S.A. amounting to EUR 20.000,00, arising from the agreement dated 10 October 2006 between IDISEOFONIKI HELLAS S.A. and Call Centre Hellas S.A. regarding the provision of project management services and execution of part of a project that has undertaken for the Public Supplies Management Organisation (ODDI). 3. IDISEOFONIKI HELLAS S.A. incurred an expense from NOETRON S.A. amounting to EUR 465.000,00, arising from the agreement dated 1 April 2006 between IDISEOFONIKI HELLAS S.A. and NOETRON S.A. regarding the assignment of part of the ARIADNI II project.4. IDISEOFONIKI HELLAS S.A. incurred an expense from NOETRON S.A. amounting to EUR 70.000,00, arising from the agreement dated 10 October 2006 between IDISEOFONIKI HELLAS S.A. and NOETRON S.A. regarding the assignment of part of the project it has been assigned by the Prefecture of Athens and Piraeus. 5. IDISEOFONIKI HELLAS S.A. incurred an expense from NOETRON S.A. amounting to EUR 459,321.20, arising from selling ORACLE end-user licenses.6. From the company NOETRON S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting euro 240,000.00 from the contract as of 1-1-2005 for the appointment by NEWSPHONE HELLAS S.A. to NOETRON S.A. of the maintenance and support of the software for organising and promoting citizens’ requests, as it was extended with the private agreement as of 1-4-2005 and as of 4-5-2006.7. From the company NOETRON S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 471.00 for the purchase of fixed equipment.

With the company FERGON S.A.:From the company FERGON S.A. an expense occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 1,200.00 from the leasing contract as of 15-1-2002 for the property on 280 Thisseos Avenue from NEWSPHONE HELLAS S.A. to FERGON as amended with the private agreements as of 23-4-2004 and 18-5-2004.

With the company E. APERGIS – M. E. DIMITRIKALLI LTD:From the company E.APERGIS – M.E. DIMITROKALLI LTD. an income occurred for the company NEWSPHONE HELLAS S.A. amounting to euro 4,066.38 from the leasing contract as of 8-9-2004 for the property on 282 Thisseos Avenue from NEWSPHONE HELLAS S.A. to E. APERGIS – M.E. DIMITROKALLI LTD.For the financial year 2006 the following transactions have occurred between the company Call Center Hellas S.A. and its affiliated companies with the respective income and expenses:

6 0

REPORT OF TRANSACTIONS WITH AFFILIATED COMPANIESREPORT OF TRANSACTIONS WITH AFFILIATED COMPANIES

With the company NOETRON S.A.:From the company NOETRON S.A. an income occurred for the company Call Center Hellas S.A. amounting to 21,101.80 from the leasing contract as of 24-7-2003 for the property on 280 Thisseos Avenue from Center Hellas S.A. to NOETRON S.A.

Finally the BoD, agrees unanimously and orders the Managing Director Mr. Efstratios Apergis to notify the above report to the supervising authorities pursuant to Article 4 of Law 3016/2002.

Having no other issue for discussion, the meeting is adjourned and the present minutes are signed as follows:

The President of the BoD The Vice-President The Managing Director The Members

REPORT OF TRANSACTIONS WITH AFFILIATED COMPANIES

61

REPORT OF TRANSACTIONS WITH AFFILIATED COMPANIES

REPORT OF TRANSACTIONS WITH AFFILIATED COMPANIES

For the period 1/1/2006 – 31/12/2006 the company made available to the investment public the following information, which can be found in its website www.newsphone.gr:

Date Information Website

19/12/2006 Invitation to Extraordinary General Meeting (12 January 2007) www.newsphone.gr

8/12/2006 Comments on Publications regarding the share value growth www.newsphone.gr

29/11/2006 Expiry of Special Negotiation agreement www.newsphone.gr

23/11/2006 Presentation to foreign institutional investors www.newsphone.gr

16/11/2006 Financial Results for 9M 2006 www.newsphone.gr

16/11/2006 Financial Results for 9M 2006 www.newsphone.gr

5/10/200611880 to sponsor OLYMPIACOS FC during the upcoming football season

www.newsphone.gr

28/9/2006 The company to provide support for 184 phone line of IKA www.newsphone.gr

26/9/2006Awarded project for the Provision of Information and Services to OSE customers

www.newsphone.gr

25/9/2006The Group’s management informs the shareholders that the Group’s presentation has been posted on the Company’s website

www.newsphone.gr

22/9/2006Provide support to 11880 in view of municipal, community and prefectural elections

www.newsphone.gr

7/9/2006 Expansion of NEWSPHONE HELLAS in new office building www.newsphone.gr

30/8/2006 Financial Results for 6M 2006 www.newsphone.gr

27/7/2006 Financial Results for 6M 2006 www.newsphone.gr

6/7/2006 Participation of the Company in Public Sector projects www.newsphone.gr

26/6/2006 Payment of dividend for financial year 2005 www.newsphone.gr

26/6/2006 Decisions of the Ordinary General Meeting www.newsphone.gr

22/6/2006 NEWSPHONE cooperates with VODAFONE Spain www.newsphone.gr

13/6/2006 Silver EFFIE AWARD 2006 for 11880 of NEWSPHONE www.newsphone.gr

05/06/2006 Invitation to Ordinary General Meeting (23 June 2007) www.newsphone.gr

24/5/2006 New Board of Directors www.newsphone.gr

19/5/2006NEWSPHONE HELLAS undertakes the project to provide phone directory services for VODAFONE through 11833

www.newsphone.gr

18/5/2006Re-publication of company data and information for financial year 2005

www.newsphone.gr

11/4/2006Re-publication of company data and information for financial year 2005

www.newsphone.gr

7/4/2006Re-publication of company data and information for financial year 2005

www.newsphone.gr

5/4/2006 Participation in two-day meeting by SAL. OPPEINHEIM www.newsphone.gr

9/3/2006Re-publication of company data and information for financial year 2005

www.newsphone.gr

6 2

REPORT OF TRANSACTIONS WITH AFFILIATED COMPANIES

9/3/2006Presentation to Members’ Association of the Athens Stock Exchange – SMEHA

www.newsphone.gr

24/2/2006 Financial Results for the Financial Year 2005 www.newsphone.gr

7/2/2006 Corrections to Financial Statements 6M 2005 www.newsphone.gr

26/1/2006NEWSPHONE HELLAS S.A. undertakes the continuation of the ARIADNI project

www.newsphone.gr

19/1/2006 Voluntary exit of Management Executive from the company www.newsphone.gr

11/1/2006NEWSPHONE HELLAS undertakes the installation of information system in the Prefecture Office of Athens - Piraeus

www.newsphone.gr

REPORT OF TRANSACTIONS WITH AFFILIATED COMPANIES

6�

INFORMATION AS PER ARTICLE 10 OF N. 3401/2005

The annual financial statements, the auditors’ reports and the reports of the Board of Directors on a corporate and consolidated level of “NEWSPHONE HELLAS S.A.” are posted on the Company’s website www.newsphone.grThe annual financial statements, the auditors’ reports and the reports of the Board of Directors of “CALL CENTER HELLAS S.A”, a Company which is incorporated in the consolidated financial statements of “NEWSPHONE HELLAS S.A.” are posted on the website www.callcenter.grThe annual financial statements, the auditors’ reports and the reports of the Board of Directors of “NOETRON S.A.”, a Company which is incorporated in the consolidated financial statements of “NEWSPHONE HELLAS S.A.” are posted on the website www.noetron.gr

ΣΧΕΔ

ΙΑΣΜ

ΟΣ

- Π

ΑΡΑ

ΓΩΓΗ

280, Thisseos Avenue176 75 Kallithea, Athens GREECETel.: +30 210 9472222 , Fax: +30 210 9472223

www.newsphone.gr