First Quarter 2007 Financial Results

Athens, May 29th 2007. Folli Follie S.A. presents first quarter 2007 financial results by fully consolidating Hellenic Duty Free Shops for the three-month period. Due to the consolidation, comparisons on a yearly basis cannot be made.

The highlights of the group financial results are expressed in record sales growth of 96,8% to € 121,6 million due to the formation of the new group, an EBITDA growth of 61,0% to €33,8 million, a steady growing net profit while taking into account the group’s active expansion strategy and increased interest expenses by € 5,5 million compared to the first quarter 2006 and with regard to the group’s last quarter results (FY 2006) an improved gross margin by 4,7%.

For the period January 1st, to March 31st 2007 the new group presents consolidated sales of € 121,6 million by showing an increase of 96,8% compared to € 61,8 million the same period last year.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) reached € 33,8 million from €21,0 million, an increase of 61,0% and Earnings Before Taxes was € 25,1 million compared to € 20,6 million (+21,8%).

The group could record net profit after taxes of € 18,3 million from € 16,5 million the

same period last year, representing an increase of 10,9%. Net earnings after taxes and

minorities reached € 17,4 million, increasing by 5,5 % compared to € 16,5 million the

year before.

Finally, the profits per share reached 0,53 € from 0,50 € showing an increase of 6%.

Folli Follie results highlights:

With regards to Folli Follie S.A. stand alone figures (based on DFS equity method) sales for the period January 1st, to March 31st 2007 amount to € 69,0 million from € 61,8 million, increasing by 11,6% in comparison to the same period last year. At comparable exchange rates sales would have increased by 21% reaching € 74,7 million.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) reached € 24,3 million from € 21,0 million the year before increasing by 15,7%.

The gross margin increased steadily from 60,8% to 62,7% supported by a favourable

sales mix.

Net sales by geographical region:

In an analysis of Folli Follies total sales for the first quarter 2007 on a stand-alone basis*

and by looking at each region, Japan accounted for 17% recording a growth of 0%, the rest of Asia reached 53% of total sales and growing by 17%, Europe generated 15% of sales showing an increase of 13% and Travel Retail operations reached a sales participation of 14% growing by 17% compared to the same period last year.

In a breakdown of sales per region at constant currency terms Japan would have reached € 12,7 million of sales instead of € 11,5 million (+10%), Asia reaching € 40,5 million instead of € 37,0 million (+28%) and the Travel retail sector would record € 10,8 million of sales instead of € 9,8 million (+19%) compared to Q 1 2006.

Sales per product category:

According to the sales per product category, jewellery account for 60% of sales, watches account for 34% and accessories for 6%.

Folli Follie is a Greek company which designs, manufactures and distributes jewellery, watches and fashion accessories under the Folli Follie brand. Nowadays, Folli Follie is active in 24 countries, has more than 340 points of sale, and continues to develop new strategically important markets around the world while strengthening its presence in existing ones.