BALKAN EXPORT S.A.'s financial results experienced increase during the nine-month period of January to September 2002, improving the Company's position in the domestic market despite the high competition in the wood market sector.

More specifically, the company's pre-tax profit increased 13 percent to ? 1,516,560 during the first nine months of 2002, versus ? 1,341,590 in the same period of 2001.

BALKAN EXPORT S.A.'s turnover increased with a rate of 12.7 percent to ? 15.9 million, comparing to ? 14.1 million in the first nine months of 2001.

The Company's total production increased 16.5 percent during the same period and was as following:

In the same period the Company had zero long- and short-term debt.

Balkan Export's management is currently implementing a comprehensive restructuring program in order to achieve better control of expenditures, to drastically decrease the stocked materials and to reduce the tied operating capital.

These measures will contribute significantly so as the Company remains competitive and profitable, both in the domestic as well as the regional wood market.