KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.Kiriacoulis Mediterranean Cruises Shipping Sole Shareholder Co. LTD.Annual Financial Statementsfor the year 20061 January to 31 December 2006It is certified that the attached Financial Statements are those approved on 16 March 2007 and havebeen published and posted on the internet at the website of the parent company, KIRIACOULISMEDITERRANEAN CRUISES SHIPPING SA, www.kiriacoulis.com. It is noted that the summaryfinancial figures that have been published in the press aim at providing the reader with some generalfinancial information but do not provide a full picture of the financial position and the results of theCompany, in accordance with the International Accounting Standards. It is also noted that, forsimplification purposes, some figures have been abbreviated and reclassified in the summaryinformation published in the pressSpiridon KiriacoulisAdministrator ofKIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SOLE SHAREHOLDER CO. LTD.Financial Statements of the fiscal yearFrom 1 January to 31 December 20061

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.CONTENTSREPORT OF THE INDEPENDENT CHARTERED AUDITOR - ACCOUNTANT ..................................................... 4MANAGEMENT’S REPORT.......................................................................................................................................... 5INCOME STATEMENT .................................................................................................................................7Balance sheet ...................................................................................................................................................8Statement of changes in Company’s equity.....................................................................................................9Cash Flow Statement .....................................................................................................................................101. Information on the company ......................................................................................................................111.1 General Information.................................................................................................................................................. 111.2 Nature of Activities................................................................................................................................................... 112. Framework for the compilation of the financial statements.......................................................................113. Main accounting principles........................................................................................................................123.1 Information per sector............................................................................................................................................... 123.2 Tangible Assets......................................................................................................................................................... 123.3 Intangible assets........................................................................................................................................................ 133.4 Impairment of assets ................................................................................................................................................. 133.5 Financial instruments................................................................................................................................................ 133.6 Inventories ................................................................................................................................................................ 133.7 Trade receivables ...................................................................................................................................................... 133.8 Cash and cash equivalents......................................................................................................................................... 143.9 Non-current assets classified as held for sale............................................................................................................ 143.10 Share capital............................................................................................................................................................ 143.11 Income tax & deferred tax ...................................................................................................................................... 143.12 Employee benefits................................................................................................................................................... 153.13 Provisions................................................................................................................................................................ 153.14 Recognition of revenue and expenses..................................................................................................................... 163.15 Leases ..................................................................................................................................................................... 163.16 Distribution of dividends ........................................................................................................................................ 164. Risk Management ......................................................................................................................................175. Information by business activity ................................................................................................................186.1 Tangible Assets......................................................................................................................................................... 186.2 Intangible assets........................................................................................................................................................ 206.3 Other long-term receivables...................................................................................................................................... 206.4 Trade receivables ...................................................................................................................................................... 206.5 Other receivables ...................................................................................................................................................... 206.6 Other current assets................................................................................................................................................... 216.7 Cash and cash equivalents......................................................................................................................................... 216.8 Shareholders equity................................................................................................................................................... 226.9 Deferred tax .............................................................................................................................................................. 236.10 Employee benefits................................................................................................................................................... 236.11 Trade creditors and other liabilities......................................................................................................................... 236.12 Current tax liabilities............................................................................................................................................... 246.13 Short-term bank liabilities....................................................................................................................................... 246.14 Other short-term liabilities...................................................................................................................................... 256.15 Turnover – Cost of sales ......................................................................................................................................... 256.16 Administrative/selling expenses ............................................................................................................................. 26Financial Statements for the fiscal yearFrom 1 January to 31 December 20062

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.17 Other operating income/expenses ........................................................................................................................... 266.18 Financial income/expenses ..................................................................................................................................... 266.19 Other financial results............................................................................................................................................. 276.20 Income tax............................................................................................................................................................... 276.21 Profits per share ...................................................................................................................................................... 276.22 Contingent claims- liabilities .................................................................................................................................. 276.23. Transactions with related parties............................................................................................................................ 28Financial Statements for the fiscal yearFrom 1 January to 31 December 20063

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.REPORT OF THE INDEPENDENT CHARTERED AUDITOR -ACCOUNTANTTo the shareholders of the Limited Liability Company“KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SOLE SHAREHOLDER CO. LTD.”Report of the Financial Statements.We have audited the attached Financial Statements of “Kiriacoulis Mediterranean Cruises ShippingSole Shareholder Co. LTD.”, that consist of the corporate and consolidated balance sheet of 31December 2006, the income statements, the statement of changes in equity and the cash flowstatement for the year ended on that date, as well as the summary of significant accounting policiesand other explanatory notes.Management responsibility as to the financial statements.The Company's Management is responsible for the preparation and fair presentation of theaforementioned Financial Statements, according to the IFRS, as these have been adopted by theEuropean Union. The above responsibility includes the planning, implementation and maintenanceof a system of internal controls relevant to the preparation and fair presentation of the financialstatements, free of material misstatement, due to fraud or errors. The said responsibility alsoincludes the selection and implementation of appropriate policies and the realisation of accountingestimates that are considered fair for the case in question.Auditor responsibility.Our responsibility is to express an opinion on these Financial Statements based on our audit. Weconducted our audit in accordance with the Greek Auditing Standards which are based on theInternational Standards on Auditing. These standards demand full compliance with the code of ethicsand require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatements. The audit includes the implementation ofprocedures for the concentration of audit evidence, regarding the information that is included in thefinancial statements. The procedures are selected by the auditor according to his judgment andinclude risk assessment as to material misstatements in the financial statements due to fraud orerror. For this risk assessment, the auditor takes into consideration the system of internal controls forthe preparation and presentation of the financial statements, aiming at planning audit proceduresand not expressing an opinion regarding the efficiency of the system of internal controls of thecompany. The audit also includes the evaluation of the appropriateness of accounting policiesimplemented and the reasonable estimations applied by the management, as well as the evaluationof the whole presentation of the financial statements. We believe that the audit evidence that wehave gathered are sufficient and appropriate and provide a reasonable basis for our opinion.OpinionAccording to our opinion, the attached Financial Statements provide a fair presentation of thefinancial status of the Company as at 31 December 2006, its financial performance and cash flowsfor the year ended at this date, according to the International Financial Reporting Standards, asadopted by the by the European Union.Report on other legal and regulatory issuesThe content of the Management’s Report is consistent with the attached financial statements.Athens, 29 March 2007The Chartered Auditor - AccountantMeletios D. SiastathisSOEL Reg. no.: 12181Financial Statements for the fiscal yearFrom 1 January to 31 December 20064

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.MANAGEMENT’S REPORTA. General reviewThe company “KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SOLE SHAREHOLDERCO. LTD.” has been operating since 1981 in the sector of professional sea tourism.In 2006 the turnover amounted to € 983,229 reduced by 15% compared to the year 2005. Incomefrom commissions from chartering third parties’ yachts– which is the main income category for thecompany – increased by 48% compared to 2005.All operating expenses presented a decrease resulting to an overall decrease of operating expensesby 20%.As a result, Profit before Taxes, Financing-Investment Results and Depreciations increased by 88%and Profit before Taxes, Financing and Investment Results increased by 117%.However, the increase of financial expenses by € 24,541, was the main reason for the decrease ofprofits after taxes by 15%.Net profit margin stood at 5.64% compared to 5.61% in 2005.The working Capital of the company is considered to be adequate, based on the value of the currentratio, which stands at 1.02. It is noted that the current ratio coincides with the “quick” ratio given thatthe Company does not hold any inventories.B. Goals - ProspectsSince the creation of the company in 1981, Management set goals with a view to providing highstandard client service, creating trusting relationships with the suppliers of the Company and thesatisfaction of the personnel. Dedicated to these basic principles the Management has set for 2007the following goals:• The increase of the income from commissions from chartering third parties’ yachts by 15-20%.• Further improvement of Net Profit Margin.The prospects for 2007 are believed to be favourable for the following reasons:• The increased identifiability that Greece has developed as a tourist destination thanks to thewell planned marketing program in progress worldwide that further improved the Country’simage thanks to the Olympic Games.• The positive future outlook for global tourism, as this is reflected in scientific studiespublished to date.Financial Statements for the fiscal yearFrom 1 January to 31 December 20065

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.• The measures announced for attracting national and international funds for investments intourism, such as the plans for private and public sector partnership and tenders for leaseand development of the existing tourism infrastructure by private Bodies .C. Events after 31.12.2006 (reference date for the financial statements)Not applicable.E. Dividend PolicyThe proposed dividend per share for 2006 is 166.66 €, amounting to 50,000 € in total.SPIRIDON KIRIACOULISADMINISTRATORFinancial Statements for the fiscal yearFrom 1 January to 31 December 20066

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.Statement of changes in Company’s equityShare Capital Other reservesResults CarriedForwardTotalBalance as at 1 January 2005, under IFRS 54,000 37,977 25,562 117,539Readjustment of reserve's deferred taxation 9,479 (9,479) 0Transfer of dividends to liabilities (30,000) (30,000)Net Results for the Period 01/01-31/12/2005 0 166 65,038 65,204Total Recognized Profit/loss for the Period 0 9,645 25,559 35,204Balance of Equity as at 31 December 2005 54,000.00 47,622.04 51,121.10 152,743.14Balance as at 1 January 2006, under IFRS 54,000.00 47,622.04 51,121.10 152,743.14Transfer of dividends to liabilities (50,000.00) (50,000.00)Net Results for the Period 01/01-31/12/2006 55,422.38 55,422.38Total Recognized Profit/loss for the Period 0.00 0.00 5,422.38 5,422.38Balance of Equity as at 31 December 2006 54,000.00 47,622.04 56,543.48 158,165.52Financial Statements for the fiscal yearFrom 1 January to 31 December 20069

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.Cash Flow Statement1/1 - 31/12/2006 1.1 -31.12.2005Cash flows from Operating ActivitiesEarnings for the period before taxes 88,642 107,073Plus/minus adjustments for:Depreciations 20,810 14,768Provisions 9,149 4,557Income from provisions 0 (42,945)Results (income, expenses, profit and loss) from investment activities- Profit / Loss from sale of fixed assets (7,239) (2,627)-Interest income and related income (1,883) (4,334)Interest expenses and related expenses 47,841 23,300Plus / less adjustment for changes in items of working capital or items relating tooperating activitiesDecrease/(increase) of receivables (1,458,431) (567,198)Increase/ (decrease) of other current asset accounts (276,870) 48,484(Decrease)/increase of liabilities (apart from banks) 1,761,031 241,267Minus:Interest expenses and related expenses paid (47,841) (23,300)Paid taxes (22,230) (42,427)Net cash flows from operating activities (a) 112,977 (243,381)Cash flows from Investment ActivitiesAcquisition of tangibles and intangible fixed assets (114,138) (198,106)Proceeds from sale of tangible and intangible fixed assets 105,007 143,302Interest received 1,883 4,334Net cash flows from investment activities (b) (7,248) (50,470)Cash Flows from Financing ActivitiesProceeds from issued/received loans 1,474,050 1,299,228Loan payments (1,509,728) (1,067,318)Dividends paid (50,000) (30,000)Net cash flows from financing activities (c) (85,678) 201,910Net change in cash and cash equivalents for the period 20,051 (91,941)Cash and cash equivalents at the beginning of the period 138,262 230,203Cash and cash equivalents at the end of the period 158,313 138,262Financial Statements for the fiscal yearFrom 1 January to 31 December 200610

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.1. Information on the company1.1 General InformationThe company “KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SOLE SHAREHOLDER CO. LTD.”was established in 1981 in Athens. The headquarters of the company are located in Alimos, Attica (7Alimou Ave., 174 55).The financial statements for the year that ended on 31 December 2006 were approved by the Board on 28March 2007.1.2 Nature of ActivitiesThe company operates in the professional sea tourism field as a charter agent and charters mainly thirdparties’ yachts or its own yachts.2. Framework for the compilation of the financial statementsThe present financial statements of “KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SOLESHAREHOLDER CO. LTD.” that refer to the period from 01.01.2006 to 31.12.2006 have been compiledaccording to the International Financial Reporting Standards (IFRS), as adopted by the European Unionand were in effect on 31.12.2006.The accounting principles that were used for the preparation of the financial statements of 31.12.2006 arethe same as the ones used for the compilation of the annual financial statements of the company at31.12.2005 in compliance with the IFRS.The financial statements for the period 1.1-31.12.2006 have been compiled according to the historical costprinciple, as this is amended by the adjustment of certain assets and liabilities to current values, the accrualbasis of accounting according to which, the impact of transactions and other events in which a financial unitis involved are accounted for when the transactions and the other events happen and not when they aresettled in cash. The principle of activity continuation, according to which the financial statements werecompiled under the assumption that the company is continuing its activities with almost the same conditionsthat were valid on that date, i.e. that the financial unit does not have the intention or the need to cash in itsassets or to limit significantly its range of activities.The compilation of financial statements according to IFRS requires the use of estimates and judgment bythe management of the Company during the application of the accounting principles, which affect theamounts in the financial statements and the notes to the financial statements. These estimations were keptobjective and are based on the know-how of the Company, the historical facts and current circumstancesand expectation for future events. The final actual results may differ from these estimations. For this reasonthey are under continuous revision.Financial Statements for the fiscal yearFrom 1 January to 31 December 200611

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.3. Main accounting principlesThe accounting principles on the basis of which the attached financial statements are compiled and whichthe company consistently applies are as follows:3.1 Information per sectorA business segment is defined as a group of assets and activities that provide products and services, whichis subject to different risks and returns than other business segments. A geographical segment is defined asa geographical area in which products and services are provided, which is subject to different risks andreturns than other geographical segments.The company is active in the professional maritime tourism sector through chartering of owned and thirdparty professional tourist recreational vessels in the International Charter Market. From a geographicalperspective, charters are made in Greek territory, in the Euro Area and in Other Countries. The companyoperates yacht and customer service stations in France (Mediterranean Coasts & Caribbean), Italy andGreece (within the Euro Area) and in Croatia and Turkey (Other Countries)3.2 Tangible AssetsThe tangible fixed assets are reported in the financial statements at cost less depreciations. The acquisitioncost includes all the directly attributable expenses for the acquisition of the assets.Subsequent expenditure is recorded as an addition to the carrying value of the tangible fixed assets, or as aseparate fixed asset only to the extent that these expenditures increase the future financial benefits that areexpected to emerge by the use of the asset and the cost of these can be reliably calculated. The correctiveand preventive maintenance costs are recorded in the results of the fiscal years they are performed.Depreciation of fixed assets, other than land which is not depreciated, is calculated using the straight linemethod over their useful lives, which is as follows:TYPE OF FIXED ASSETUSEFUL LIFEBUILDINGS40 YEARSINSTALLATIONS IN THIRD In line with the durationPARTY BUILDINGS of the leaseMACHINERY6-10 YEARSVEHICLES6-10 YEARSFURNITURE5- 8 YEARSVESSELS20 YEARSCOMPUTERS3-5 YEARSFinancial Statements for the fiscal yearFrom 1 January to 31 December 200612

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.The useful lives and the residual values of the fixed assets are under review at each annual balance sheet.When the book values of tangible fixed assets exceed their recovery value, the differences (impairment) aredirectly registered as an expense in the results.Upon sale of the tangible fixed assets, any difference between the proceeds and the carrying value isbooked as profit and loss to the results. Sale of vessels where the residual value is considered to be theselling cost of the vessel is excluded.3.3 Intangible assetsIntangible fixed assets comprise software licenses and other rights held by a foreign subsidiary.Software licenses are valued at cost less depreciation. Depreciation is booked based on the straight-linemethod throughout the useful life of these assets, which is set to 3-5 years.3.4 Impairment of assetsAssets that are depreciated are subject to an impairment review when some events suggest that thecarrying value may not be recoverable. A review for the existence of such events takes place on every dateof annual balance sheet.The recoverable value is the larger amount of net sales value and the value in use.The net sales value is the amount received from the sale of an asset at an arm’s length transaction in whichparticipating parties have full knowledge and participate voluntarily, after deducting any additional directcosts for the sale of the asset, while value in use is the present value or estimated future cash flows that areexpected to flow into the company from the use of the asset and from its disposal at the end of its estimateduseful life.3.5 Financial instrumentsA financial instrument is any contract that creates a financial asset for one enterprise and a financial liabilityor equity instrument for another.The financial assets and the balance sheet requirements include cash, receivables, participations andshort-term and long-term liabilities.3.6 InventoriesThe company has no inventories.3.7 Trade receivablesTrade receivables are booked at their fair value, less any provision for impairment. The impairment losses,i.e. when there is objective evidence that the company is unable to collect all the amounts owed based onthe contractual terms, are recognized in the income statement.Financial Statements for the fiscal yearFrom 1 January to 31 December 200613

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.3.8 Cash and cash equivalentsCash and cash equivalents include cash in the bank and in hand as well as short term highly liquidinvestments such as money market products and bank deposits.3.9 Non-current assets classified as held for saleAssets that are held in order to be sold include other assets (including goodwill) and tangible fixed assetsthat the company intends to sell within one year after the assets have been classified as “held for sale”Assets classified as “held for sale” are valued at the lower of their book value immediately prior to theirclassification as held for sale and their fair value less the selling cost. Assets classified as “held for sale” arenot subject to depreciation. Profits or losses resulting from the sale and revaluation of “held for sale” assetsare included in “other income” and “other expenses”, respectively, in the income statement.The company has not classified any non-current assets as “held for sale”.3.10 Share capitalThere is one type of shares.. When new shares are issued they are recorded in equity at their nominalvalue. The amount at which the issuing price exceeds their nominal value is recorded in share premium.Expenses incurred for the issuance of shares reduce, after deducting the relevant income tax, the proceedsfrom the issue. Expenses related to the issuance of stock for the purchase of companies are included in theacquisition cost of the company acquired.Upon acquisition of owned shares, the price paid including the relevant expenses is represented as adecrease of owned capital.3.11 Income tax & deferred taxThe period charge for income tax comprises current tax and deferred tax, i.e. the tax charges or tax creditsthat are associated with economic benefits accruing in the period but that have been assessed by the taxauthorities in different periods. Income tax is recognized in the income statement of the period, except forthe tax relating to transactions that have been booked directly to equity, in which case it is, accordingly,booked directly to equity.Current income taxes include the short-term liabilities or receivables from the fiscal authorities that relate totaxes payable on the tax income of the period and any additional income taxes from previous periods.Current taxes are measured according to the tax rates and tax laws in effect during the fiscal years to whichthey relate, based on the taxable profit for the year. All changes to the short-term tax assets or liabilities arerecognized as part of the tax expense in the income statement.Deferred income tax is determined according to the liability method, which results from the temporarydifferences between the book value and the tax base of assets or liabilities. The deferred income tax is notFinancial Statements for the fiscal yearFrom 1 January to 31 December 200614

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a businesscombination, that at the time of the transaction affects neither accounting nor taxable profit or loss.Deferred tax assets and liabilities are valued based on the tax rates that are expected to be in effect duringthe period in which the asset or liability will be settled, taking into consideration the tax rates (and tax laws)that have been put into effect or are essentially in effect up until the balance sheet date. In the event whereit is impossible to identify the timing of the reversal of the temporary differences, the tax rate in effect on theday after the balance sheet date is used.Deferred tax claims will be recognised in the extent that there will be a future taxable profit to use thetemporary difference arising from the deferred tax claim.Deferred income tax is recognized for the temporary differences that result from investments in subsidiariesand associates, except for the case where the reversal of the temporary differences is controlled by thecompany and it is probable that the temporary differences will not be reversed in the foreseeable future.Most changes in the deferred tax assets or liabilities are recognized as part of the tax expense in theincome statement. Only changes in assets or liabilities that affect the temporary differences that arerecognized directly in the equity of the company, such as the revaluation of real estate property, have as aresult the relevant change in the deferred tax assets or liabilities to be charged to the relevant account inequity.3.12 Employee benefitsShort-term benefits: Short-term employee benefits (except post-employment benefits) monetary and inkind are recognized as an expense when they accrue.Benefits on employment termination: The Company has not activated, officially or unofficially, anyspecial benefit plan for its employees. The only plan that has been activated in the past is the contractualobligation (according to the legislation in effect, N. 2112/20) for the payment of a lump-sum that isdepending on the years of previous employment, the level of salary and the method of retirement from work(dismissal or retirement).The specified compensation during exit from service come within the defined benefit plan based on IAS 19“Employee Benefits”Commitment to defined benefit is annually calculated with the projected unit credit method by independentactuaries The accrual cost of the defined fees plans is recorded as expense for the period it concerns.3.13 ProvisionsProvisions are recognized when the company has present legal or construed obligations as a result of pastevents, their settlement through an outflow of resources is probable and the exact amount of the obligationcan be reliably estimated. Provisions are reviewed at the date when each balance sheet is compiled so thatFinancial Statements for the fiscal yearFrom 1 January to 31 December 200615

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.they may reflect the present value of the outflow that is expected to be required for the settlement of theobligation. Contingent liabilities are not recognized in the financial statements but are disclosed, except ifthe probability that there will be an outflow of resources that embody economic benefits is very small.Contingent assets are not recognized in the financial statements but are disclosed provided that the inflowof economic benefits is probable.3.14 Recognition of revenue and expensesRevenue: Revenues include the value of service provision (commission) from chartering of non-privatelyowned recreational vessels, the value of other services provided to third party vessels, the commissions forintermediating in the sale of third party vessels. Revenue is recognised as follows:- Provision of services: Revenue from the provision of services is accounted for in the period during whichthe services are rendered.Expenses: Expenses are recognized in the profit or loss account on an accruals basis. Interest expensesare recognized on an accruals basis.3.15 LeasesGroup company as the lessee: Leases of fixed assets with which all the risks and benefits related withownership of an asset are transferred to the Company, regardless of whether the title of ownership of theasset is eventually transferred or not, are finance leases. These leases are capitalized at the inception ofthe lease at the lower of the fair value of the asset and the present value of the minimum lease payments.Each lease payment is apportioned between the reduction of the liability and the finance charge so that afixed interest rate on the remaining financial liability is achieved. The relevant liabilities from leases, net offinance charges, are reported as liabilities. The part of the finance charge that relates to finance leases isrecognized in the income statement during the term of the lease. Fixed assets acquired through financeleases are depreciated over the shorter of their useful lives and the lease term.Lease agreements where the lesser transfers the right of use of an asset for an agreed period of time,without transferring, however, the risks and rewards of ownership of the fixed asset are classified asoperating leases. Payments made with respect to operating leases (net of any incentives offered by thelesser) are recognised in the income statement proportionately throughout the term of the lease.3.16 Distribution of dividendsThe distribution of dividends to the shareholders of the company is recognized as a liability in the financialstatements at the date on which the General Meeting of the shareholders authorizes the distribution.Financial Statements for the fiscal yearFrom 1 January to 31 December 200616

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.5. Information by business activityPrimary segmentation – business sectorsThe company “KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SOLE SHAREHOLDER CO. LTD.”operates in the sector of professional sea tourism.The company's turnover is analysed as follows:1/1-31/12/2006 1/1-31/12/2005Revenues from commissions on charters of third parties’ yachts 782,234 530,234Revenues from other servises to third parties' yachts 154,284 124,028Sales of owned yachts 0 143,302Charter fees of owned yachts 0 3,445Revenues from commissions 0 360,761Revenues from advertisements 46,711 0TOTAL 983,229 1,161,770Secondary segmentation – geographic sectorsThe areas of operation for the company include Greece, the Euro zone countries and other countries. Thebreakdown of sales per geographic sector is:SALES 1/1-31/12/06GREECE 879,360EUROZONE 50,814OTHER COUNTRIES 53,055TOTAL 983,229Turnover presents significant variations due to the fact that the sector of sea tourism is characterized byintensive seasonality since the main volume of charters, which is the most important part of the turnover isperformed during the months from April to October.6.1 Tangible AssetsTangible assets are recorded in the Financial Statements at cost less the accumulated depreciation andlosses due to their impairment. Depreciation was calculated using the straight-line method in accordancewith Management’s expectations regarding the useful life of fixed assets.Financial Statements for the fiscal yearFrom 1 January to 31 December 200618

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.Financial Statements for the fiscal yearFrom 1 January to 31 December 200619

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.2 Intangible assetsSoftwareTotalGross Book valueAccumulated depreciation and valueimpairmentBook value as at 1 January 2005 0.00Gross Book value 0.00 0.00Accumulated depreciation and value0.00impairmentBook value as at 31 December0.002005Gross Book value 1,277.50 1,277.50Accumulated depreciation and value(109.43) (109.43)impairmentBook value as at 31 December20061,168.07 1,168.076.3 Other long-term receivables31/12/2006 31/12/2005Given Guarantees 600 600Other long-term receivables of the Company refer to rent deposits exclusively.6.4 Trade receivables31/12/2006 31/12/2005Trade debtors 325,357 466,173Minus: Impairment provisions 0 0Net Trade Receivables 325,357 466,173Customers:The account concerns receivables from chartering yachts.6.5 Other receivablesOther receivables of the Company are analysed as follows:Financial Statements for the fiscal yearFrom 1 January to 31 December 200620

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.31/12/2006 31/12/2005Checks Receivable62,227 91,721Sundry Debtors 152,538 205,040Receivables from charters 2,091,858 511,972Receivables from ship owners 203,016 127,440Receivables from the Greek State 48,616 24,486Advances 3,238 0Net receivables from Debtors 2,561,493 960,660Minus: Provisions for doubtful receivables (4,251) (4,251)Total 2,557,242 956,408It is noticed that the fair values are not different to the above carrying amounts, due to the expectedcollection of the relevant amounts within twelve months.6.6 Other current assetsOther current assets are analysed as follows:31/12/2006 31/12/2005Deferred expenses 276,870 0.00276,870 0.006.7 Cash and cash equivalents31/12/2006 31/12/2005Cash in hand 45,675 17,318Short-term bank deposits 112,638 120,943Total 158,313 138,262Financial Statements for the fiscal yearFrom 1 January to 31 December 200621

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.8 Shareholders equityi) Share capitalNumber of shares Share capital TotalBalance as at 1 January 2005 300 54,000 54,000Issuance of new sharesBalance as at 31 December2005 300 54,000 54,000Issuance of new sharesBalance as at 31 December2006 300 54,000 54,000The total number of issued Shares is 300 with nominal value of 180 € / share. All shares are ownedby KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SA. Each share provides the right of onevote at the General Meetings of the Company Shareholders and the right to receive the dividends thatthe Company decides to distribute.ii)Other reservesAccording to the clauses of the Greek Company Law (N. 2190/20), the creation of regular reserves,with annual transfer of amount equal to 5% of the annual after tax profits, is mandatory up to the levelof regular reserves reach the 1/3 of the share capital. The above amount has already been covered.The tax-free reserves regard accumulated profits for which tax exemption or taxation at smaller rateapplies, provided that reserves are not distributed. In case of distribution, income tax is owed with thetax rate effective at the time of distribution. Their distribution will be performed when decided by theGeneral Meeting of shareholders. The remaining reserves regard accumulated profits, after tax. Thedistribution of reserves is decided by the General Meeting of the Shareholders.The other reserves of the Company and the Company are analysed as follows:OrdinaryreserveSpecialreservesTax-exemptreserves Other reserves TotalBalance as at 1 January 200518,000 29,622 0 47,6220.04Changes during the period - 0Balance as at 31 December200518,000 0 29,622 0 47,622-Changes during the period 0 0 0 0Balance as at 31 December200618,000 0 29,622 0 47,622Financial Statements for the fiscal yearFrom 1 January to 31 December 200622

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.9 Deferred taxThe deferred tax claims/liabilities as resulting by the temporary tax differences are as follows:31/12/200631/12/2005Asset Liability Asset LiabilityNon Current AssetsTangible Assets (8,596.51) 437.54 0.18 (64.48)De-taxation of reserves (8,590)Total (8,596.51) 437.54 0.18 (8,654)According to tax law some income is not taxed on the period it was acquired but on the period it isdistributed to shareholders. The accounting principle of the Company is to recognise the deferredincome tax liability on the period the income is realised, irrespectively of the time of distribution.The set-off for the deferred tax claims and liabilities takes place when, in the case of the company,there is an applicable legal right and when the deferred income tax is referring to the same taxauthority.6.10 Employee benefitsShort-term employee benefits (except post-employment benefits) monetary and in kind arerecognized as an expense when they accrue; non-existent. (Note 3.12)6.11 Trade creditors and other liabilitiesThe analysis of trade creditors balances and the relevant liabilities for the Company are as follows:31/12/2006 31/12/2005Trade creditors 0 1,673Checks payable 167,635 31,920Total 167,635 33,593Financial Statements for the fiscal yearFrom 1 January to 31 December 200623

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.12 Current tax liabilitiesThe difference between the tax, based on the earnings before tax for the company, differs from thetheoretical amount that would result by using the weighted average tax rate on the consolidatedearnings. The difference is reported in the following table:31/12/2006 31/12/2005VAT and other taxes - duties payable in the next period 14,416 0Tax expense that corresponds to the period 33,714 22,879Provision for taxes of the unaudited fiscal years 20,000 20,000Adjustment of deferred tax due to creation of tax free reserve 0 (893)Change in deferred taxes due to change in tax rate 0 (116)Total 68,130 41,869Following the tax audit order no. 35/02.02.2006 by Piraeus Ships Tax Authority the Company is underregular tax audit up to the year 2004.6.13 Short-term bank liabilities31/12/2006 31/12/2005Short-term loansBank loans 196,232 231,910Total short term loans 196,232 231,910Total loans 196,232 231,910The amount refers to a long-term financial leasing agreement for lifting bridge crane.There are no other loans.Financial Statements for the fiscal yearFrom 1 January to 31 December 200624

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.14 Other short-term liabilitiesAn analysis of short-term liabilities is following:31/12/2006 31/12/2005Social Security Funds 16,121 13,137Liabilities to shipowners 1,633,040 529,039Prepayments for charters 75,119 57,720Sundry Creditors 1,108,153 615,444Total 2,832,434 1,215,3406.15 Turnover – Cost of salesTurnover is analysed as follows:1/1-31/12/2006 1/1-31/12/2005Revenues from commissions on charters of third parties’ yachts 782,234 530,234Revenues from other servises to third parties' yachts 154,284 124,028Sales of owned yachts 0 143,302Charter fees of owned yachts 0 3,445Revenues from commissions 0 360,761Revenues from advertisements 46,711 0TOTAL 983,229 1,161,770The cost of sales is analysed as follows:1/1 - 31/12/2006 1/1 - 31/12/2005Employees wages salaries andexpenses 173,934 154,050Third-party fees and expenses 124,538 77,432Third-party services 13,221 9,898Sundry expenses 53,611 73,700Depreciations of fixed assets 4,100 5,647Vessel expenses 108 141,947369,512 462,675Financial Statements for the fiscal yearFrom 1 January to 31 December 200625

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.16 Administrative/selling expensesADMINISTRATIVE EXPENSES1/1 - 31/12/2006 1/1 - 31/12/2005Third-party fees andexpenses 24,527.43 51,621.36Third-party services 43,866.56 34,511.22Taxes - duties 30,625.25 20,364.74Sundry Expenses 112,828.82 119,194.17Depreciations of fixed asset 16,709.50 9,120.86Provisions 9,148.73 4,557.34Total 237,706.29 239,369.69SELLING EXPENSES1/1 - 31/12/2006 1/1 - 31/12/2005Employees wagessalaries and expenses 115,956 102,700Third-party services 8,814 6,599Sundry expenses 220,813 367,593345,583 476,8926.17 Other operating income/expensesOther administration income and expenses are as follows:1/1 - 31/12/2006 1/1 - 31/12/2005Other operating incomeIncome of related activities (concessions, commiss 12,509 4,621.62Income from provisions 0 42,945.41Other income 9,385 941.99Total 21,895 48,509.02Other operating expensesOther expenses 446 7,4506.18 Financial income/expenses31/12/2006 31/12/2005Interest income from:-Banks 1,883 4,3341,883 4,334Interest expenses from:-Bank loans and related expenses 47,841 23,30047,841 23,300Financial Statements for the fiscal yearFrom 1 January to 31 December 200626

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.19 Other financial results1/1-31/12/2006 1/1-31/12/2005Other income 82,723 102,14782,723 102,147The amount refers to financial income from third party yacht chartering.6.20 Income tax31/12/2006 31/12/2005Tax for the period 33,714.26 22,878.56Provision for tax differences 20,000.00Deferred tax (Note 6.9) (495.08) (1,009.56)33,219.18 41,868.996.21 Profits per share31/12/2005 31/12/2004Profit corresponding to shareholders 55,422 65,204Weighted average number of shares 300 300Basic earnings per share 185 2176.22 Contingent claims- liabilitiesInformation regarding contingent liabilitiesPending legal claims exist against the Company and the Parent company of the amount ofapproximately € 314.000. According to the estimation of the Company’s lawyer it is much possiblethat these claims will be rejected. Further to the above there are not any other legal or underarbitration cases that may significantly affect the financial position of the Company.The un-audited fiscal years of the company are 2003-2006, for which there is a provision for incometax difference of € 20.000.Financial Statements for the fiscal yearFrom 1 January to 31 December 200627

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.6.23. Transactions with related partiesA) Purchases and sales of the Company accumulated from 1.1-31.12.2006 are as follows:Purchases and sales of the Company accumulated from 1.1-31.12.2005 are as followsBUYERSELLERKIRIACOULISMEDITERRANEANCRUISESKIRIACOULISMEDITERRANEAN CRUISESCONSOLIDATEDSARLKIRIACOULISGOUVIA MARINAS.A.TOTALKIRIACOULISMEDITERRANEAN87,343.48 87,343.48CRUISES SHIPPING S.A.MEDITERRANEANCRUISES SHIPPING SOLE-232,757.79 360,760.55 4,621.62 598,139.96CONSOLIDATED SARLKIRIACOULIS FRANCE82,000.00 82,000.00LEFKAS MARINA S.A. 234.90 234.90KAPA FIN S.A. 44,043.94 44,043.94TOTAL232,757.79 213,622.32 360,760.55 4,621.62 811,762.28B) The balance of receivables and liabilities of the Company as at the end of period 1.1-31.12.2006are as follows:The balance of receivables and liabilities of the Company as at the end of period 1.1-31.12.2005 areas follows:Financial Statements for the fiscal yearFrom 1 January to 31 December 200628

KIRIACOULIS MEDITERRANEAN CRUISES SHIPPING SS CO. LTD.ALIMOS, 16 MARCH 2007THE ADMINISTRATORTHE ACCOUNTINGDIRECTORSpiridon St. KiriacoulisChariklia D. TheodorouID. No. Ξ 072425 ID No. Σ 620678Financial Statements for the fiscal yearFrom 1 January to 31 December 200629