MICHANIKI's financial results showed further improvement in the first half of 2003 as a result of a continuing increase in the number of private and public works projects undertaken by the group.

Based on its June 30th 2003 financial statements, MICHANIKI Group pre-tax profit after minorities grew 43.3% to 12.51 million euros from 8.73 million euros in the first half of 2002. Group turnover rose 38% in the first half of the year and reached 76.74 million euros from 55.63 million in the same period a year earlier.

There was also an impressive rise in consolidated operating profit during the period to 12.98 million euros from 7.21 million in the first half of 2002, an increase of 80%. Excluding depreciation, Group operating profit rose 210% to 9.96 million euros from 3.21 million.

At a parent company level, MICHANIKI SA had pretax profit growth of 30% at 9.4 million euros from 7.2 million in the first half of 2002. The company's turnover rose 68% reaching 53.32 million euros from 31.69 million last year.

MICHANIKI SA operating profit improved by 80.5% to 10.78 million euros in the first half from 5.97 million in the same period in 2002. The increase was larger, 206%, excluding depreciation and reached 8.39 million euros from 2.74 million last year.

Both group and company liabilities showed further improvement. MICHANIKI SA has no long-term liabilities while short-term liabilities were reduced to 19.8 million euros from23.2 million last year. At a Group level, long-term liabilities amount to just 0.2 million euros while short-term liabilities dropped to 41.8 million from 45.5 million euros last year.

The Company's debt-to-equity ratio stands at 1/14 or 7% and at 1/11 for the group (9%).