Bird flu scare hurts FRH

Renos Hadjioannou Farm Pcl (FRH) issued a negative profit warning for its second half results following the decline in consumer confidence in

poultry products due to the bird flu scare, which is likely to affect the profitability of the Company.

However the Company expects improved profitability in 2005 compared to 2004. The drop is attributable to the drop in sales due to the outburst of the bird flu in neighbouring countries. Despite assurances that there are no cases of bird flu in Cyprus and the disease is not spread via fresh or frozen chicken, the consumers panic affects sales negatively. At the current stage, the Company cannot proceed to forecasts on the duration of the reduced sales but it would like to ensure its shareholders that it has taken all the necessary measures and follows the instructions of the veterinary services closely in order to protect its chickens (that are in 12 different locations in Nicosia, Limassol and Larnaca) from a possible contact with migratory birds.