Today Rilken S.A. reports the 1st half-year results of 2003. The company recorded net sales of 13,883 TEURO and operating profit of 1,353 TEURO.

Rilken reported sales of 13,883 TEURO vs 11,597 TEURO of the corresponding period of 2002, a total increase of 19.7%. This increase is mainly due to the change of the distribution agreement into distribution under consignment, since January 1st, 2003, as well as the improved business picture caused by the discontinuation of the distribution of the Coppertone brand. The increase in real sales was approximately 1%.

The change of the distribution agreement between Rilken and Schwarzkopf & Rilken Hellas affected significantly the Gross Profit of the 1st half-year 2003 (23.8% increase), the Operating Result, as well as the Selling Expenses. The Selling Expenses increased by 31.8% vs the same period of 2002. This increase is mainly due to the distribution commission. The rest of selling expenses were kept on a lower level in comparison to previous year.

Profits before taxes decreased by 8.6% to 1,144 TEURO vs 1,252 TEURO of last year, due to the same reasons that resulted to the change of Operating Result.

For the Rilken Group, which consists of Rilken SA and its retail distribution company Schwarzkopf & Rilken Hellas S.A, consolidated net sales reached 16,500 TEURO. The decrease of 23.5% vs last year is the result of the new distribution structure. From January 1st, 2003, Rilken Group sales include only the sales commission for Henkel Hellas products.

Operating profit of the Group increased by 235 TEURO to 1,448 TEURO due to the above mentioned reasons. Consolidated profit before taxes increased also by 112 TEURO (9.8% increase) to 1,256 TEURO mainly due to the decrease of administrative expenses vs last year.

Rilken S.A. is an Athens based manufacturer and marketer of Cosmetics, specialized in Hair Care products. The company is a member of the Henkel Group which is the majority shareholder of Rilken S.A. via its subsidiary Henkel Hellas S.A.

The financial statements of Rilken S.A. for the 1st half-year of 2003, including the consolidated financial statements, will be published on 27th August 2003.