POLARIS S.A.

POLARIS INDUSTRIAL & COMMERCIAL SOCIETE ANONYME with the distinctive name "POLARIS S.A." was founded in September 1999 (Government Gazette No 7783/29.9.1999). The company is registered in the Societe Anonyme Register of the Prefecture of Aitoloakarnania, its number being 43921/10/Β/99/22 and its particulars are as follows :

• The company is based in Nafpaktos and has two branches in Athens, one at Peristeri (86 Filikon Str.) and one at Pefki (95 Kolokotroni Str.)
• Duration 50 years
• Its (main) scope of activity is manufacture and trading of ready made clothes
• Submitted share capital 3,245,000.00 euro divided into 1,100,000 unregistered shares of euro 2.95 nominal value each
• Shareholders are the following :

  No	Name of the shareholder	Shares	%
  1.	Nafpaktos Textile Industry S.A.	561.000	51,00
  2.	Polychronos Vasilios	207.625	18,875
  3.	Polychronos Dimitrios	207.625	18,875
  4.	Polychronou Aikaterini	79.750	7,25
  5.	Inherits of Pantazis Christos	44.000	4,00
  	Total	1.100.000	100,00

• The board of directors' tenure of office is 5 years (until 30.06.2010). It was elected by the general meeting of 21.06.2005. Its members are:
  1. Dimitrios Polychronos, Chairman
  2. Vasilios Polychronos, Vice-Chairman & Managing Director
  3. Anastasios Polychronos, Consultant
  4. Aikaterini Polychronou, Consultant
  5. Konstatntinos Pantazis, Consultant
• The average staff number is 40.

  In the first quarter of its activity (27/9/99-31/12/99), the company organised its operations in order as from the year 2000 to achieve the goals concerning the penetration and establishment in the market of ready- made clothes and the achieving of a significant number of sales and profits.

  In order to succeed in these goals :

  1. As of 1.1.2000 the company was granted use of the LEE COOPER, LOIS and EAST & WEST trademarks and succeeded in having its clothes accepted easier by the market.
  2. In order to provide for the company' s needs, the company rented three buildings in Nafpaktos, Peristeri and Pefki.
     a) The main branch is in Nafpaktos
     b) the facilities in Peristeri (86 Filikon & Vamvas Str.) is used for:
     • Product, design and development,
     • Designing, and cutting of patterns,
     • Cutting of fabrics,
     • Raw and ancillary material warehouses and final product warehouses and
     • Quality control and final product packaging
     c) The Pefki facilities (95 Kolokotroni Str.) include:
     • The accounting and financial services
     • The clothes warehouse and
     • The company' s show room.
  3. The company purchased and installed the necessary equipment.
  4. It bought 100% of the Albanian company SILVER STAR Sh.p.k. for 150 million GRD (440,205 euro); the company's activities were in the field of cutting and sewing ready made clothes and it employed 250 employees to cover its production needs.
  5. Part of the SILVER STAR Sh.p.k. equipment was renewed and this resulted in better quality of the units produced with even less defected products.
  6. The main branch and all other branches were equipped with all necessary facilities and communication networks.
  7. The company employed specialised and experienced personnel.

Business Strategy - Prospects

The company, during the last three years of its function, has formed the conditions of developing a dynamic, short-term programme for the promotion of its products to ready-made clothing retailers all over Greece through an organized agent network. Moreover, with the employment of specialized personnel, it enforces the department of designing and cutting of fabrics and methodically follows the fashion trends so as to adjust its production to the revealing preferences of the consumers on time.

The designing and developing of the clothes and the cutting of fabrics are carried out at the Peristeri branch. Sewing is carried out in Albania, in the factory of "SILVER STAR SH.P.K.", the company's subsidiary. This results in achieving lower production cost for the products produced and satisfactory profit margins.

The course of the company in the mid-term is estimated rising and this provision is based on the favourable influence of: a) the great and constantly improving quality of our products, b) the support of sales through advertisement, c) the further development of the organization, and d) the controlling of the production cost.

The investment of "NAFPAKTOS TEXTILE INDUSTRY" in this company is considered as fully successful taking into account that the yield of 1.646,4 thousand euro that was used for its participation, amounts for the last three years 2000 - 2002 on average to 21.20% annually.