6-K 1 form6k_080204.txt REPORT OF FOREIGN PRIVATE ISSUER AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 4, 2004 -------------------------------------------------------------------------------- FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 2004 ANTENNA TV S.A. (Translation of registrant's name into English) KIFISSIAS AVENUE 10-12 MAROUSSI 151 25 ATHENS, GREECE (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [_] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [_] No [X] If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__________. ================================================================================

~~UNAUDITED~~PAGE ~~THREE MONTHS ENDED UNAUDITED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30,~~ ----~~----------------~~ ~~---------------------------~~PART ~~NOTES~~I ~~2002~~FINANCIAL ~~2003 2002 2003 2003 ----- ---- ---- ---- ---- ---- ((EURO)) ((EURO)) ((EURO)) ((EURO)) ($) Advertising revenue~~INFORMATION.................... ~~16,095 18,945 82,827 91,007 106,023 Related party revenue~~.................. ~~2 1,032 1,846 3,269 4,873 5,677 Publication revenue~~.................... ~~4,734~~ ............5~~,447~~ ~~13,110~~ITEM ~~17,256~~1. ~~20,103~~UNAUDITED ~~Other~~FINANCIAL ~~revenue~~STATEMENTS.......................... ~~3,993 4,276 14,178 15,255 17,772 ------- ------- ------- ------- ------- Total net revenue~~...........................5 11Consolidated ~~25,854~~Statements of Operations for the three months ended June 30,~~514~~ ~~113,384~~2003 ~~128,391~~and ~~149,575~~2004 ~~-------~~and ~~-------~~for ~~-------~~the ~~-------~~six ~~-------~~months ~~Cost~~ended ofJune ~~sales~~30, 2003 and 2004.......................... ~~12,333 13,477 47,653 51,521 60,023 Selling, general and administrative expenses~~............................ ~~6,685 7,857 20,530 23,001 26,795 Amortization of programming costs~~.........................5 3Consolidated ~~11,835~~Balance ~~13,550~~Sheets ~~34,152~~as ~~38,736~~of 45December 31,~~127~~ ~~Depreciation~~2003 and ~~amortization~~June 30, 2004.......... ~~11 2~~......6,~~343~~7 ~~1,745~~Consolidated ~~6,459~~Statement ~~5,177~~of ~~6,031~~Shareholders' ~~-------~~Equity ~~-------~~for ~~-------~~the ~~-------~~six ~~-------~~months ~~Operating~~ended ~~(loss)~~June ~~income~~30, 2004............... ~~11 (7,342) (6,115) 4,590 9,956 11,599 Interest expense, net~~.................. ~~7,8 (5,703) (5,342) (16,984) (15,871) (18,490) Foreign exchange gains, net~~............ ~~9 490 671 5,465 5,829 6,791 Other (expense) income, net~~.......................8 11Consolidated ~~(3,653)~~Statements 37of ~~(4,544)~~Cash ~~146~~Flows ~~170~~for ~~Minority~~the ~~interest~~six inmonths ~~(income)~~ended ~~loss~~June of30, ~~consolidated~~2003 ~~entities~~and 2004............... ~~(15) (2) 724 21 24 ------- ------- ------- ------- ------- (Loss) earnings before income taxes~~.... ~~(16,223) (10,751) (10,749) 81 94 (Benefit) provision for income taxes~~...................................................9 6Notes ~~(5,567)~~to ~~(3,567)~~the ~~(2,449)~~Consolidated ~~2,912~~Financial ~~3,392 ------- ------- ------- ------- ------- (Loss) before change in accounting principle~~Statements........................... (.............10~~,656)~~ ~~(7,184)~~ITEM ~~(8,300) (~~2~~,831)~~. ~~(3,298)~~MANAGEMENT'S ~~Cumulative~~DISCUSSION ~~effect~~AND ofANALYSIS aOF ~~change~~FINANCIAL inCONDITION ~~accounting~~AND ~~principle~~RESULTS ~~(net~~OF ~~of income tax of(euro)117)~~OPERATIONS.................... ~~1 -- -- (953) -- -- ------- ------- ------- ------- ------- Net (loss)~~.................................................25 ~~(10,656)~~ITEM ~~(7,184) (9,253) (2,831) (~~3~~,298)~~. ~~=======~~QUANTITATIVE ~~=======~~AND ~~=======~~QUALITATIVE ~~=======~~DISCLOSURES ~~=======~~ABOUT ~~Basic~~MARKET ~~and diluted (loss) per share before cumulative effect of the change in accounting principle~~RISK...... (0.~~5) (0~~.~~3) (0~~.~~4) (0~~.~~1) (0~~.~~1) ======= ======= ======= ======= ======= Basic and diluted (loss) per share of the change in accounting principle~~.. ~~-- -- -- -- -- ======= ======= ======= ======= ======= Basic and diluted (loss) per share~~..... (0.~~5) (0~~.~~3) (0~~.~~4) (0~~.~~1) (0~~.1).35 ~~=======~~PART ~~=======~~II ~~=======~~OTHER ~~======= ======= Exchange rate for the convenience translation of the September 30, 2003 balances is (euro)1~~INFORMATION.00........................................................................37 toITEM $14.~~165~~ ~~The~~OTHER ~~accompanying notes are an integral part of the consolidated financial statements~~INFORMATION.................................................................37

i This report (the "Quarterly Report") sets forth certain information regarding the financial condition and results of operations of Antenna TV S.A., a Greek SOCIETE ANONYME, for the fiscal quarter ended June 30, 2004. In June 2003, we filed a Form 15 with the U.S. Securities and Exchange Commission to terminate the registration of our equity and debt securities under the Exchange Act. However, because of provisions in the indentures governing our senior notes, we are required to voluntarily file quarterly and annual reports with the SEC. The unaudited financial statements included in this Quarterly Report, in the opinion of our management, reflect all necessary adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, the results of operations and cash flows for the periods presented. The unaudited financial information included in this Quarterly Report has been prepared in accordance with U.S. generally accepted accounting principles. For a description of the our accounting policies, see the notes to our financial statements in our Annual Report on Form 20-F for the year ended December 31, 2003. ii PART I FINANCIAL INFORMATION ITEM 1. UNAUDITED FINANCIAL STATEMENTS ANTENNA TV S.A. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2004 AND FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2004 (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT PER SHARE DATA)

UNAUDITED ~~DECEMBER~~THREE 31MONTHS ENDED UNAUDITED SIX MONTHS ENDED JUNE 30, ~~SEPTEMBER~~JUNE 30, ------------ ---------------- ---- ~~NOTES 2002 2003 2003~~ ----- ---- ---- ---- ~~((EURO)) ((EURO)) ($) ASSETS~~ -------------- NOTES 2003 2004 2003 2004 2004 ----- ------ ------- ------- ------- ------- ~~Current~~((EURO)) ~~assets:~~((EURO)) ~~Cash~~((EURO)) ~~and~~((EURO)) ~~cash~~($) ~~equivalents~~Advertising revenue..................... 8945,~~815~~027 6345,~~423~~975 7372,~~888~~062 ~~Marketable~~76,012 ~~equity~~92,575 ~~securities~~Related party revenue.................. 52 31,~~531~~165 31,~~813~~696 43,~~442~~027 ~~Accounts receivable~~2,389 ~~less allowance for doubtful accounts of(euro)6~~2,~~747~~910 inPublication ~~December 2002 and(euro)7,147 in September 2003~~revenue...... ~~77,715 83,031 96,731 Inventories~~..............~~.....................~~ 25,~~303~~801 26,~~097~~371 211,~~443~~809 ~~Due~~11,960 ~~from~~14,566 ~~related~~Other ~~parties~~revenue.......................... 25,915 1510,~~799~~513 1810,~~279~~979 2115,~~295~~732 ~~Advances~~19,160 to-------- ~~related~~--------- ~~parties~~--------- --------- --------- Total net revenue...................... 210 357,~~761~~908 364,~~515~~555 497,~~095~~877 ~~Advances~~106,093 to129,211 ~~third~~-------- ~~parties~~--------- --------- --------- --------- Cost of sales.......................... 720,~~786~~838 921,~~744~~589 1138,~~352~~045 ~~Deferred~~38,852 ~~tax~~47,318 ~~assets~~Selling, general and administrative expenses............................ 68,298 410,~~137~~490 315,~~898~~143 418,~~541~~999 ~~Prepaid~~23,139 ~~expenses~~Amortization ~~and~~of ~~other~~programming ~~current assets~~costs...... ~~684~~3 ~~913~~11,368 111,~~064~~453 ~~Income~~25,186 ~~and~~24,595 ~~withholding~~29,954 ~~tax~~Depreciation ~~advances~~and amortization........... 10 1,~~451~~734 1,~~646~~594 13,~~918~~432 3,193 3,889 -------- ------- -- ----- ~~Total current assets....................... 206,982 190,359 221,769~~ ---- --- ------- --------- ~~Investments~~15,670 19,429 Operating income ......................~~.............~~ 1310 16,~~532~~071 1320,~~532~~454 1524,~~765~~911 ~~Property~~Interest ~~and equipment~~expense, net................... 217 (5,~~319~~124) 22(4,~~482~~921) 26(10,~~191~~529) ~~Broadcast~~(9,776) ~~transmission~~(11,906) ~~and~~Foreign ~~printing~~exchange ~~equipment~~gains ~~under capital leases~~(loss), net.....~~...~~ ~~4,102~~8 32,~~514~~986 ~~4,094~~(558) ~~Deferred charges~~5,158 ~~net.........................~~ (1 5,~~559~~005) 4(1,~~437~~224) ~~5,169~~Other ~~Programming~~(expense) ~~costs~~income, net............~~.................~~ 39 ~~98,755~~(140) 8818 109 (2,~~448~~191) ~~103~~(2,~~042~~668) ~~Due~~Minority ~~from~~interest ~~related~~in ~~party~~loss of consolidated entities...............~~.........~~ 243 ~~9,754~~15 ~~9,480~~23 ~~11,044~~33 ~~Advances~~40 to-------- ~~related~~--------- ~~parties...................~~--------- 2--------- ~~153~~--------- ~~189~~Earnings ~~220~~before ~~Goodwill~~income taxes..........~~............................~~ 113,435 513,~~120~~983 510,~~699~~832 67,~~639~~515 ~~Other amortizable intangible assets~~9,153 ~~net......~~Provision ~~474~~from ~~403~~income ~~469 Deferred tax assets~~taxes............~~...............~~ 6 176,~~561~~997 156,~~542~~308 186,~~106~~479 ~~Other assets..................................~~ 4 9,~~230~~818 95,~~223~~868 ~~10,745~~-------- --------- --------- --------- ~~Total~~--------- ~~assets~~Net income............................~~...~~ ~~392~~6,~~541~~438 ~~363~~7,~~308~~675 ~~423~~4,~~253~~353 2,697 3,285 ======== ========= ========= ~~Exchange~~========= ~~rate~~========= ~~for~~Basic ~~the~~and ~~convenience~~diluted ~~translation~~profit ~~September~~per ~~30,~~share..... ~~2003~~0.3 ~~balances~~0.4 ~~is(euro)1~~0.002 ~~to $~~0.1 0.~~165~~2 ~~The~~======== ~~accompanying~~========= ~~notes~~========= ~~are~~========= ~~an integral part of the consolidated financial statements.~~=========

Exchange rate for the convenience translation of the June 30, 2004 balances is (euro)1.00 to $1.2179. The accompanying notes are an integral part of the consolidated financial statements. ANTENNA TV S.A. CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND JUNE 30, 2004 (IN THOUSANDS OF EURO AND US DOLLARS)

~~UNAUDITED~~ DECEMBER 31, ~~SEPTEMBER~~UNAUDITED JUNE 30, ------------ ----------------------- NOTES ~~2002~~ 2003 ~~2003~~2004 2004 ----- -------- -------- ------- ((EURO)) ((EURO)) ($) ~~LIABILITIES~~ASSETS ~~& SHAREHOLDERS' EQUITY -------------------------------------------------~~ Current ~~liabilities~~assets: ~~Bank~~Cash ~~overdrafts~~ and ~~short-term~~cash ~~borrowings~~equivalents..... ~~17,875 17,301 20,155 Current portion of obligations under capital leases~~................ 81,395 48,320 58,849 Marketable equity securities................... ~~870~~5,10 ~~824~~2,852 ~~960~~1,315 ~~Current~~1,601 ~~portion~~Accounts ofreceivable, ~~long-term~~less ~~debt~~allowance ~~............~~for 8doubtful ~~489~~accounts --of(euro)7,929 --at ~~Trade~~December ~~accounts,~~2003 ~~notes~~ and(euro)8,293 ~~cheques~~at ~~payable~~June 2004........... 3474,~~790~~304 3698,~~644~~140 42119,~~690~~525 ~~Program license payable~~Inventories................................... 202,~~723~~036 142,~~554~~523 163,~~955~~073 ~~Customer~~Due ~~advances~~from related parties......................~~.......~~ 12 18,~~174~~878 118,~~912~~049 221,~~226~~982 ~~Payable~~Advances to related parties.................... 2 233,376 382,794 443,403 ~~Accrued~~Advances ~~interest~~to third parties.....................~~.........~~ 97,~~644~~026 48,~~399~~088 59,~~125~~850 ~~Accrued~~Deferred ~~expenses~~tax ~~and other current liabilities 13,268 15,817 18,427 Income taxes payable~~assets........................... 6 103,~~646~~268 32,~~317~~104 32,~~864~~562 ~~Deferred~~Prepaid ~~tax~~expenses ~~liability~~and other current assets..... 807 923 1,124 Income and withholding tax advances...........~~........~~ 61,669 31,~~712~~902 32,316 ~~3,863~~ --------- --------- --------- Total current ~~liabilities~~assets....................... ~~113~~195,~~214~~611 98184,~~122~~158 ~~114~~224,~~309~~285 --------- --------- ------- ~~Long~~-~~term~~- ~~liabilities: Senior notes~~Investments................................... 75 ~~212~~12,~~691~~932 ~~202~~12,~~080~~932 ~~235~~15,~~424~~751 ~~Long-term~~Property ~~obligations~~and ~~under~~equipment, ~~capital leases~~net.... ~~1,998 1,338 1,559 Payable to related parties~~............... 22,442 20,992 25,566 Broadcast, transmission and printing equipment under capital leases, net........ 3,327 2,892 ~~398~~3,521 ~~398~~Deferred ~~464~~charges, ~~Employee retirement benefits~~net......................... 1 3,~~742~~999 13,~~747~~299 24,~~035~~018 ~~Long-term~~Programming ~~provisions~~costs............................. ~~481~~3 ~~275~~90,109 ~~321~~89,634 ~~-------~~109,165 ~~-------~~Due ~~-------~~from ~~Total~~related ~~liabilities~~party.......................... ~~330~~2 7,~~524~~160 ~~303~~7,~~960~~695 ~~354~~9,~~112~~372 ~~-------~~Advances ~~-------~~to ~~-------~~related ~~Minority interests~~parties...................~~............~~ 662 4553 53 ~~-------~~65 ~~------- ------- Shareholders' equity: Share capital~~Goodwill...................................... 5,~~825~~631 5,~~825~~631 6,~~786~~858 ~~Additional~~Other ~~paid-in~~amortizable ~~capital~~intangible assets, net...... 378 221 269 Deferred tax assets........................... 846 18,~~270~~247 8415,~~270~~707 9819,~~174~~129 ~~Accumulated~~Other ~~(deficit)~~assets......................... ~~(28,225) (31,056) (36,180) Accumulated other comprehensive income~~ ......... 814 ~~264~~9,230 ~~308~~9,252 11,268 --------- --------- --------- Total ~~shareholders' equity~~assets................. ~~61,951 59,303 69,088 ------- ------- ------- Total liabilities and shareholders' equity~~.............. ~~392~~369,~~541~~119 ~~363~~352,~~308~~466 ~~423~~429,~~253~~267 ========= ========= ======= ~~Exchange rate for the convenience translation of the September 30, 2003 balances is(euro)1.00 to $1.165 The accompanying notes are an integral part of the consolidated financial statements.~~==

Exchange rate for the convenience translation June 30, 2004 balances is (euro)1.00 to $1.2179 The accompanying notes are an integral part of the consolidated financial statements. 2 ANTENNA TV S.A. CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND JUNE 30, 2004 (IN THOUSANDS OF EURO AND US DOLLARS)

~~ACCUMULATED~~DECEMBER ~~(DEFICIT)~~31, UNAUDITED JUNE 30, ------------ ----------------------- NOTES 2003 2004 2004 ----- -------- -------- ------- ((EURO)) ((EURO)) ($) LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Bank overdrafts and short-term borrowings..... 18,767 19,054 23,206 Current portion of obligations under capital leases................................... 748 662 806 Trade accounts, notes and cheques payable..... 31,349 31,519 38,387 Program license payable....................... 26,287 21,629 26,342 Customer advances............................. 1,455 1,209 1,472 Payable to related parties.................... 2 500 338 413 Accrued interest.............................. 8,849 8,274 10,077 Accrued expenses and other current liabilities 16,187 18,699 22,773 Income taxes payable.......................... 6 2,212 1,992 2,426 Deferred tax liability........................ 6 3,563 2,063 2,512 --------- --------- --------- Total current liabilities.................. 109,917 105,439 128,414 --------- ~~LEGAL,~~--------- ~~TAX~~--------- ~~FREE~~Long-term ~~ACCUMULATED~~liabilities: ~~ADDITIONAL~~Senior ~~AND~~notes.................................. ~~OTHER~~7 ~~SHARE~~193,751 ~~PAID~~179,217 218,268 Long-INterm ~~OTHER~~obligations ~~ACCUMULATED~~under ~~COMPREHENSIVE~~capital ~~GRAND~~leases.... ~~COMPREHENSIVE~~1,168 ~~CAPITAL~~859 ~~CAPITAL~~1,046 ~~RESERVES~~Employee ~~(DEFICIT)~~retirement ~~TOTAL~~benefits.................. ~~INCOME~~1,974 ~~TOTAL~~2,068 ~~INCOME~~2,519 Long-term provisions.......................... 579 582 708 --------- --------- --------- Total liabilities.......................... 307,389 288,165 350,955 --------- --------- --------- Minority interests............................... 71 38 46 --------- --------- ~~BALANCE~~--------- ~~DECEMBER~~Shareholders' ~~31,~~equity: ~~2002~~Share capital................................. 5,~~825~~955 845,~~270~~955 27,~~224~~253 ~~(30,449)~~Additional ~~(28,225)~~paid-in 81capital.................... 6184,~~951~~270 --84,270 ~~Net~~102,632 ~~income~~Accumulated ~~for the nine months~~ (~~unaudited~~deficit)......................... ~~-- -- --~~ (228,~~831~~206) (225,~~831~~509) -- (231,~~831~~067) ~~(2,831)~~Accumulated ~~Unrealized~~other ~~gain~~comprehensive ~~on available for sale equity securities, net of tax charge~~(~~euro~~loss)99 ~~(unaudited)~~income ............ ~~-- -- -- -- -- 183 183 183 Total comprehensive ------ income (unaudited)~~...................... --(360) (453) (552) -- -- -- --- -- -- ~~(2,648)~~ ----- ------ --- Total shareholders' equity................. 61,659 64,263 78,266 -- ------- --------- --- ------ ~~======~~Total ~~BALANCE~~liabilities ~~SEPTEMBER~~and ~~30,~~shareholders' ~~2003 (UNAUDITED)~~equity.~~.......~~ 5369,~~825~~119 84352,~~270~~466 2429,~~224~~267 ~~(33,280) (31,056) 264 59,303~~ ===== ====== ===== ====~~===~~ ======= ==~~= ====== The accompanying notes are an integral part of the consolidated financial statements.~~

~~UNAUDITED~~ACCUMULATED ~~NINE~~(DEFICIT) ~~MONTHS ENDED SEPTEMBER 30,~~ --------------------------------------------- ~~2002 2003 2003~~ ---- ---- ---- ((EURO)) ((EURO)) ($) CASH FLOWS FROM OPERATING ACTIVITIES Net (loss).................................... (9,253) (2,831) (3,298) ADJUSTMENTS TO RECONCILE NET(LOSS) TO NET CASH Gain from repurchase of Senior Notes.......... (371) (183) (213) Cumulative effect of a change in accounting principle................................ 953 -- -- Deferred income taxes......................... (13,363) 1,763 2,053 Minority interest on acquired entities........ (724) (21) (24) Amortization of debt issuance expenses........ 995 868 1,011 Write down in marketable equity securities 4,813 -- -------------------------------- ~~Depreciation of property and equipment and capital leases and amortization of programming costs and other intangibles.............................. 40~~LEGAL,~~611~~ ~~43,912~~TAX ~~51,157~~FREE ~~Provision~~ACCUMULATED ~~for~~ADDITIONAL ~~employee~~AND ~~retirement~~OTHER ~~benefits....~~SHARE ~~188 5 6 CHANGE~~ PAID-IN ~~CURRENT~~OTHER ~~ASSETS~~ACCUMULATED ~~AND~~COMPREHENSIVE ~~LIABILITIES~~GRAND ~~Decrease~~COMPREHENSIVE ~~(increase)~~CAPITAL inCAPITAL ~~accounts~~RESERVES ~~and other receivable............................... 1,946~~ (~~5,316~~DEFICIT) ~~(6,193)~~TOTAL ~~Decrease~~ (~~increase~~LOSS) ~~from~~/~~due~~INCOME toTOTAL ~~related parties.................................. 2,468~~ INCOME/(~~2,010~~LOSS) (2,342) (Increase) in programming costs............... (36,363) (34,228) (39,876) (Increase) decrease in prepaid and licensed programming expenditures................. (527) 5,799 6,756 Increase in trade accounts, notes and cheques payable.................................. 3,034 1,855 2,161 (Decrease) in licensed program payable........ (5,784) (6,169) (7,187) (Increase) decrease in inventories............ (270) 207 241 Increase in customer advances................. 965 737 859 (Decrease) in accrued expenses and other liabilities.............................. (8,873) (2,697) (3,142) Increase (decrease) in income taxes payable... 8,308 (7,330) (8,539) Other, net.................................... (1,299) (2,550) (2,971) ------- ------- -------- ~~Total adjustments....................... (3,293) (5,358) (6,243)~~ ------- ---- ----- ------- ~~NET CASH (USED) IN OPERATING ACTIVITIES.......... (12,546) (8,189) (9,541)~~ ------ ----- ------- ------- ~~CASH~~BALANCE ~~FLOWS~~DECEMBER ~~FROM~~31, ~~INVESTING~~2003. ~~ACTIVITIES~~5,955 ~~(Acquisition)~~84,270 ~~of businesses~~5,447 ~~net of cash......~~ (~~226~~33,653) (~~760~~28,206) (~~885~~360) ~~Purchase~~61,659 ofNet ~~assets~~profit ~~under~~for ~~capital~~the ~~leases.......~~six months (~~177~~unaudited) ~~- - Purchase of fixed assets~~......~~................~~ ~~(2,174) (5,499) (6,406)~~ --~~-----~~ --~~-----~~ --~~-----~~ ~~NET~~2,697 ~~CASH~~2,697 ~~(USED)~~-- ~~IN INVESTING ACTIVITIES.......... (~~2,~~577)~~697 (62,~~259)~~697 ~~(7,291)~~Realization ~~-------~~of other-than-~~-----~~temporary ~~-------~~loss ~~CASH~~of ~~FLOW~~marketable ~~FROM~~equity ~~FINANCING~~securities ~~ACTIVITIES~~(see ~~Debt~~note ~~issuance costs~~1).................~~..........~~ ~~(42)~~-- -- -- ~~Repayment~~-- ~~of long~~-~~term~~- ~~debt...................~~361 ~~(486)~~361 ~~(489)~~361 ~~(570)~~Unrealized ~~Redemption of Senior Notes....................~~ (~~2,050~~loss) ~~(3,470)~~on ~~(4,043)~~available ~~(Decrease)~~for insale ~~bank~~equity ~~overdrafts and short term borrowings~~securities, net~~..........................~~ ~~(340)~~of tax benefit(~~575~~euro)245 (~~669~~unaudited) ~~Decrease~~-- ~~in restricted cash................. 11~~ -- -- ~~Increase in lease obligations................. 177~~ -- -- ~~Repayments of capital lease obligations.......~~ (~~752~~454) (~~707~~454) (~~824~~454) ------- -~~------~~ ~~-------~~Total ~~NET~~comprehensive ~~CASH~~income (~~USED~~unaudited) ~~IN FINANCING ACTIVITIES~~......~~....~~ (32,~~482)~~604 ~~(5,241)~~------- ~~(6,106)~~ ------- ------- --------- Effect of exchange rate changes on cash.......... (8,562) (6,703) (7,808) (Decrease) in cash............................... (27,167) (26,392) (30,746) Cash at beginning of year........................ 104,597 89,815 104,634 ------- -------- ------- ~~CASH~~======== ATBALANCE ~~END~~JUNE OF30, ~~PERIOD~~2004 (UNAUDITED).............~~...............~~ 775,~~430~~955 6384,~~423~~270 735,~~888~~447 (30,956) (25,509) (453) 64,263 ======= ======= ======= ~~SUPPLEMENTAL~~========= ~~DISCLOSURE~~======= OF======== CASH FLOW INFORMATION Cash paid for interest........................ 23,364 20,983 24,445 Cash paid for income taxes.................... 3,837 6,936 8,080 Exchange rate for the convenience translation of the September 30, 2003 balances is(euro)1.00 to $1.165 The accompanying notes are an integral part of the consolidated financial statements.=======

The accompanying notes are an integral part of the consolidated financial statements. 4 ANTENNA TV S.A. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2004 (IN THOUSANDS OF EURO AND US DOLLARS)

UNAUDITED ~~UNAUDITED~~SIX ~~UNAUDITED~~MONTHS ~~UNAUDITED~~ENDED ~~THREE~~JUNE ~~MONTHS~~30, ~~THREE~~--------------------------------------------- ~~MONTHS~~2003 ~~NINE~~2004 ~~MONTHS~~2004 ~~NINE~~--------- ~~MONTHS~~--------- ~~ENDED~~--------- ~~ENDED~~((EURO)) ~~ENDED~~((EURO)) ~~ENDED~~($) ~~SEPTEMBER~~CASH 30FLOWS FROM OPERATING ACTIVITIES Net income.................................... 4,353 ~~SEPTEMBER~~2,697 303,285 ~~SEPTEMBER~~ADJUSTMENTS 30TO RECONCILE NET(LOSS) TO NET CASH (Gains) loss from repurchase of Senior Notes.. (183) 833 1,015 ~~SEPTEMBER~~Deferred 30income taxes......................... 5,487 ~~2002~~2,253 ~~2003~~2,744 ~~2002~~Minority ~~2003~~interest ~~Net~~on acquired entities........ (~~loss~~23) (1033) (40) Amortization of debt issuance expenses........ 536 342 417 Write down in marketable equity securities -- 1,~~656~~394 1,698 Depreciation of property and equipment and capital leases and amortization of programming costs and other intangibles.. 28,618 27,788 33,843 Provision for other long term liabilities..... -- 3 4 Provision for employee retirement benefits.... 20 94 114 CHANGE IN ASSETS AND LIABILITIES (Increase) in accounts receivable............ (718,~~184~~464) (923,~~253~~837) (29,031) (Increase) decrease from/due to related parties.................................. (1,067) 712 867 (Increase) in programming costs............... (27,006) (25,963) (31,620) Decrease in prepaid and licensed programming expenditures............................. 4,564 1,841 2,~~831~~242 Increase in trade accounts, notes and cheques payable.................................. 1,710 168 205 (Decrease) ~~Unrealized~~in ~~gain~~licensed program payable........ (~~loss~~4,745) on(4,659) ~~available~~(5,674) ~~for~~(Increase) ~~sale~~in ~~equity~~inventories..................... ~~securities~~(56) (488) (594) Increase (decrease) in customer advances...... 418 (246) (300) Increase in accrued expenses and other liabilities.............................. 2,075 1,937 2,359 (Decrease) in income taxes payable............ (5,757) (220) (268) Other, net.................................... ~~491~~1,570 (~~159~~1,426) (1,737) --------- ~~183~~--------- --------- Total adjustments....................... (12,303) (19,507) (23,756) --------- --------- --------- ~~Comprehensive~~NET CASH (~~loss~~USED) IN OPERATING ACTIVITIES.......... (107,~~165~~950) (716,~~343~~810) (920,~~253~~471) --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES (2Acquisition) of businesses,~~648~~ net of cash...... (135) (166) (202) Purchase of fixed assets...................... (4,812) (982) (1,197) --------- --------- --------- NET CASH (USED) IN INVESTING ACTIVITIES.......... (4,947) (1,148) (1,399) --------- --------- --------- CASH FLOW FROM FINANCING ACTIVITIES Redemption of Senior Notes.................... (3,470) (16,310) (19,864) (Decrease) increase in bank overdrafts and SHORT term borrowings, net............... (1,287) 288 351 Repayments of capital lease obligations....... (480) (396) (482) --------- --------- --------- NET CASH (USED) IN FINANCING ACTIVITIES.......... (5,237) (16,418) (19,996) --------- --------- --------- Effect of exchange rate changes on cash.......... (5,926) 1,301 1,584 (Decrease) in cash............................... (24,060) (33,075) (40,282) Cash at beginning of year........................ 89,815 81,395 99,131 --------- --------- --------- CASH AT END OF PERIOD............................ 65,755 48,320 58,849 ========= ====== === === ====== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest........................ 10,725 10,045 12,234 Cash paid for income taxes.................... 5,520 2,791 3,399

Exchange rate for the convenience translation of the June 30, 2004 balances is (euro)1.00 to $1.2179 The accompanying notes are an integral part of the consolidated financial statements. 5 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The consolidated financial statements and related notes at June 30, 2004 and for the six months ended June 30, 2003 and 2004 are unaudited and prepared in conformity with the accounting principles applied in the Company's Annual Report on Form 20-F for the year ended December 31, 2003. In the opinion of management, such interim financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the results for such periods. The results of operations for the six months ended June 30, 2004 are not necessarily indicative of the results to be expected for the full year or any other interim period. PRINCIPLES OF CONSOLIDATION AND ACCOUNTING FOR INVESTMENT The consolidated financial statements of the Company include all of its significant majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Investments in which the Company does not own a controlling interest or for which the minority shareholders have significant veto rights over operating decisions (participating rights requiring unanimous shareholder approval, including: transactions in excess of (euro)59, operating budgets, senior management positions, borrowing and amendments to contractual obligations) are accounted for using the equity method. Under the equity method, only the Company's investment in and amounts due to and from the equity investee are included in the consolidated balance sheet and only the Company's share of the investee's earnings is included in the consolidated operating results. Investments in companies in which the Company does not have a controlling interest, or an ownership and voting interest so large as to exert significant influence, are accounted for at market value if the investments are publicly traded. If the investment is not publicly traded then the investment is accounted for at cost. Marketable equity securities are classified as "available-for-sale" and are recorded at fair value with unrealized gains and losses, net-of-tax, included in stockholders' equity under other comprehensive income (loss) until the investment is sold, at which time the realized gain or loss is included in income. Dividends and other distributions from both market-value and cost-method investments are included in income when declared. The Company continually reviews its investments to determine whether a decline in fair value below the cost basis is other-than-temporary. If the decline in fair value is judged to be other-than-temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in the consolidated statements of operations. ACQUISITIONS OF UNRELATED BUSINESS In the second quarter of 2004, the Company established a new wholly owned subsidiary, Antenna Program Management AE. The new subsidiary, in which the Company invested (euro)60, succeeds to the rights and obligations of Antenna Gold Overseas Ltd under the channel distribution agreement concluded with MultiChoice Hellas in 2001. 6 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) DEFERRED CHARGES The expenses incurred in connection with the issuance and distribution of the Company's 9% Senior Notes due 2007 issued on August 12, 1997 (the "2007 Notes") (see Note 7) were capitalized and are amortized on a straight-line basis over the term of the 2007 Notes. The expenses incurred in connection with the issuance and distribution of the Company's 9 3/4% Senior Notes due 2008, issued on June 18, 2001 (the "2008 Notes") were capitalized and are being amortized over the term of the 2008 Notes. Amortization for the three and six months ended June 30, 2003 and 2004 totaled (euro)225, (euro)536, (euro)171 and (euro)342 respectively, and is included in interest expense in the accompanying unaudited consolidated statements of operations for the six months ended June 30, 2003 and 2004. COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) is as follows:

UNAUDITED ~~DECEMBER~~UNAUDITED 31UNAUDITED THREE MONTHS THREE MONTHS UNAUDITED SIX SIX MONTHS ENDED ENDED MONTHS ENDED ENDED JUNE 30, ~~SEPTEMBER~~2003 JUNE 30, ~~2002~~200 4 JUNE 30, 2003 JUNE 30, 2004 ------------- ------------ ~~ACCOUNTS~~- RECEIVABLE Current: Antenna Satellite........................................... 2,781 2,728 Epikinonia EPE.............................................. 1,190 1,786 Antenna TV Ltd. (Cyprus).................................... 5,926 6,110 Antenna Satellite Radio..................................... 389 -- ~~Echos and Rhythmos EPE...................................... 690 1,112 Makedonia TV S.A............................................ 4,823 6,543~~ ----------- ----------- ~~15,799 18,279 =========== =========== Long~~-~~term:~~- ~~Antenna~~Net ~~Satellite...........................................~~income 96,~~754~~438 97,~~480~~675 ~~===========~~4,353 ~~===========~~2,697 ~~ADVANCES~~Realization ~~Current:~~of ~~Epikinonia~~other-than-temporary ~~EPE..............................................~~loss ~~667~~of ~~281~~marketable ~~Echos~~equity ~~and~~securities ~~Rhythmos~~-- ~~EPE......................................~~-- ~~2,237~~-- ~~2,437~~361 ~~Makedonia~~Unrealized TV(loss) ~~S.A............................................~~gain ~~621~~on ~~629~~available ~~Catalogue~~for ~~Auctions~~sale ~~Hellas~~equity ~~S.A...............................~~securities, 68net --996 ~~JVFM-Epikinonia~~(454) ~~168~~342 ~~168~~(454) ------------- ----------- ~~3,761 3,515 =========== =========== Long~~-~~term:~~ ~~JVFM~~-~~Epikinonia.............................................~~ ~~53 53 Epikinonia Ltd.............................................. 100 136~~ ------------- ------------- ~~153~~Comprehensive ~~189~~income 7,434 7,221 4,695 2,604 =========== == ========= ~~ACCOUNTS PAYABLE Current: Makedonia TV SA............................................. 12 12 Echos and Rhythmos EPE...................................... 11 26 ----------- ----------- 23 38~~ === = ======= ======~~=====~~ ~~Long-term: Payable to minority shareholders of Daphne Communications SA 398 398~~ =========== ==~~=========~~

NEW ACCOUNTING PRONOUNCEMENTS FASB INTERPRETATION NO. 46. In January 2003, the FASB issued FASB Interpretation No. 46, CONSOLIDATION OF VARIABLE INTEREST ENTITIES, which addresses how a business enterprise should evaluate whether it has a controlling financial interest in a an entity through means other than voting rights and accordingly should consolidate the entity. FIN 46R, issued in December 2003, replaces FASB Interpretation No. 46, CONSOLIDATION OF VARIABLE INTEREST ENTITIES. Variable interest entities are entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability based on criteria set forth in the interpretation. We will be required to apply FIN 46R to variable interests in variable interest entities created after December 31, 2003. For variable interests in variable interest entities created before January 1, 2004, the Interpretation will be applied beginning on January 1, 2005. For any variable interest entities that must be consolidated under FIN 46R that were created before January 1, 2004, the assets, liabilities and non controlling interests of the variable interest entities initially will be measured at their carrying amounts with any difference between the net amount added to the balance sheet and any previously recognized interest being recognized as the cumulative effect of an accounting change. If determining the carrying amounts is not practicable, fair value at the date FIN 46R first applies may be used to measure the assets, liabilities and noncontrolling interest of the variable interest entity. The Company has not yet determined the impact of applying FIN 46R. 7 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) TRANSLATIONS OF EURO INTO US DOLLARS The consolidated financial statements of the Company are stated in euro. The translations of euro into US Dollars are included solely for the convenience of the reader, using the noon buying rate in New York City on June 30, 2004, which was (euro)1.00 to $1.2179. The convenience translations should not be construed as representations that the euro amounts have been, could have been, or could in the future be, converted into US Dollars at this or any other rate of exchange. 2. DUE FROM RELATED PARTIES The Company sells advertising spots, licensing and distribution rights to certain related parties in the ordinary course of business. Furthermore, the Company also derives revenue from related parties by charging fees for the use of the Company's production facilities and technical and administrative services for the production of infomercials. Such related parties consist of companies, which have common ownership and/or management with the Company. The Company believes that, in each case, the terms of such transactions are no less favorable than those that would be attainable by the Company in the ordinary course from unaffiliated third parties under similar circumstances. Balances from related companies are as follows: UNAUDITED DECEMBER 31, JUNE 30, 2003 2004 ------------ --------- ACCOUNTS RECEIVABLE Current: Antenna Satellite TV ....................... 2,778 2,906 Epikinonia EPE ............................. 2,885 1,532 Antenna TV Ltd. (Cyprus) ................... 6,227 6,405 Echos and Rhythmos EPE ..................... 1,185 1,388 Makedonia TV S.A. (note 4) ................. 5,803 5,818 ------------ --------- 18,878 18,049 ============ ========= Long-term: Antenna Satellite TV ....................... 7,160 7,695 ============ ========= ADVANCES Current: Epikoinonia EPE ............................ 72 -- JVFM-Epikinonia ............................ 169 169 Echos and Rhythmos EPE ..................... 2,358 2,076 Makedonia TV S.A ........................... 777 549 ------------ --------- 3,376 2,794 ============ ========= Long-term: JVFM - Epikinonia .......................... 53 53 ------------ --------- 53 53 ============ ========= ACCOUNTS PAYABLE Current Payable to minority shareholders of Daphne Communications S.A ................ 398 151 Makedonia TV S.A ........................... 83 156 Echos and Rythmos EPE ...................... 19 31 ------------ --------- 500 338 ============ ========= 8 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED)

UNAUDITED REVENUE FROM RELATED PARTIES ------------------------------------------------------------------- THREE MONTHS THREE MONTHS ~~NINE~~SIX MONTHS ~~NINE~~SIX MONTHS ENDED ENDED ENDED ENDED ~~SEPTEMBER~~JUNE 30, ~~SEPTEMBER~~2003 ~~30,~~JUNE ~~SEPTEMBER~~ 30, ~~SEPTEMBER~~2004 JUNE 30, ~~2002~~ 2003 ~~2002~~JUNE ~~2003~~30, 2004 ------------- ------------- ------------- ------------- Epikinonia Ltd. (Production facilities and technical and administrative services)....~~........................~~ ~~409~~215 ~~886~~741 ~~774~~363 ~~1,249~~990 Antenna Satellite TV (USA) Inc. (License and technical fees)........................... ~~255~~268 ~~275~~214 ~~766~~877 ~~1,152~~424 Antenna TV Ltd. (Cyprus) (Royalties)........... ~~154~~297 ~~229~~421 ~~1,255~~446 ~~675~~550 Echos and Rhythmos EPE......................... 67159 ~~126~~161 ~~176~~237 ~~363~~255 Makedonia TV S.A............................... ~~147~~226 ~~330~~159 ~~298~~ 1,~~434~~104 170 ------------- ------------- ------------- ------------- 1,~~032~~165 1,~~846~~696 3,~~269~~027 42,~~873~~389 ============= ============= ============= =============

3. PROGRAMMING COSTS The following table sets forth the components of the programming costs, net of amortization: UNAUDITED DECEMBER 31, JUNE 30, 2003 2004 ------------ --------- Produced programming ......................... 66,815 68,229 Purchased sports rights ...................... 1,762 1,716 Licensed program rights ...................... 15,242 15,695 Prepaid license program rights ............... 5,113 3,190 Prepaid produced programs .................... 1,177 612 Prepaid sports rights ........................ -- 192 ------------ --------- 90,109 89,634 ============ ========= On the basis of the Company's amortization rates, 100% of produced licensed program rights and purchased sports rights at December 31, 2003, will be amortized within a four-year period of time. Based on management's total gross revenue estimates, as of December 31, 2003 and for the six months ended June 30, 2004, approximately 54% and 53% respectively of completed produced programming and purchased sports rights are expected to be amortized during the following fiscal year. 4. OTHER ASSETS Other assets are analyzed as follows: UNAUDITED DECEMBER 31, JUNE 30, 2003 2004 ------------ --------- Advance for the right to acquire an interest in Makedonia TV ................... 8,804 8,804 Guarantee deposits ........................... 426 448 ------------ --------- 9,230 9,252 ============ ========= On February 24, 2000, the Company advanced (euro)8,804 in exchange for the right to acquire a controlling interest in Macedonia TV, one of the six Greek commercial TV broadcasters with a nationwide license. This right gives the Company the ability to acquire a 51% interest in Macedonia TV from its three shareholders for a total consideration equal to the advance payment. The Company may acquire this interest by February 2006, but may only do so if and when Greek law permits a broadcaster and/or its shareholders to own or control two licensed free-to-air television broadcast companies. If the interest is not 9 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) acquired or the right of acquisition not extended, Antenna will be refunded all amounts paid and will be granted a right of first refusal over any future transfers of the 51% interest. 5. INVESTMENTS UNAUDITED DECEMBER 31, JUNE 30, 2003 2004 ------------ ---------- Equity method investments..................... 15 15 Cost-method investments....................... 12,917 12,917 ------------ ---------- 12,932 12,932 ============ ========== Available for sale equity securities: Cost ...................................... 3,408 2,014 Unrealized loss............................ (556) (669) ------------ ---------- 2,852 1,315 ============ ========== EQUITY-METHOD INVESTMENTS Represents a 40% interest in Antenna Optima S.A. COST-METHOD INVESTMENT Represents a 4.18% interest in NetMed NV which the Company acquired on October 8, 2001. NetMed NV is a provider of pay-television services in Greece and Cyprus and currently provides analog and digital services. AVAILABLE-FOR-SALE EQUITY SECURITIES During 2000, the Company acquired a 14.49% interest in Euroholdings Capital & Investment Corp. (previously known as Athenian Capital Holdings S.A.) in various open market transactions for an aggregate purchase price of (euro)45.6 million. In previous periods, the decline in fair value of (euro)42.2 million was judged to be other-than-temporary and the cost basis was written-down to (euro)3.4 million. In the first quarter of 2004 the further decline in fair value of (euro)1.4 million was judged to be other-than-temporary and the cost basis was further written down and included in other expense, net in the consolidated statement of operations (see note 9). 6. DEFERRED INCOME TAXES The deferred income taxes relate to the temporary differences between the book values and the tax bases of assets and liabilities. Significant components of the Company's deferred tax liabilities and assets as at December 31, 2003 and June 30, 2004 are summarized below: UNAUDITED DECEMBER 31, JUNE 30, 2003 2004 ------------ -------- Deferred tax liabilities Intangible and tangible assets............... 369 81 Programming costs............................ 5,243 6,194 Deferred charges............................. 779 492 Leased assets................................ 946 810 ------------ -------- Gross deferred tax liabilities.................. 7,337 7,577 ============ ======== 10 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) Deferred tax assets Property and equipment....................... 395 447 Start up costs............................... 1,769 1,332 Long term liability.......................... 45 30 Long term lease liability.................... 220 163 Short-term lease liability................... 262 206 Long-term receivables........................ 674 674 Accounts receivable.......................... 2,590 2,509 Employee retirement benefits................. 638 677 Provisions for other accounts receivable..... 5,982 4,169 Marketable equity securities................. 8,188 8,126 Net operating losses......................... 5,901 6,676 ------------ -------- Gross deferred tax assets....................... 26,664 25,250 ------------ -------- Less: valuation allowance...................... (1,375) (1,672) ------------ -------- Net deferred tax asset.......................... 17,952 15,748 ============ ======== Deferred tax assets were reduced by a valuation allowance primarily relating to the tax benefits attributable to net operating losses and start-up costs related to Daphne, VIPS 24 and Nova Bulgaria, where it is not expected that these losses and benefits will be utilized and fully reverse before expiration. The classification of deferred income taxes in the accompanying balance sheets is as follows: UNAUDITED DECEMBER 31, JUNE 30, 2003 2004 ------------ -------- Net current deferred tax (liability)............ (3,563) (2,063) ============ ======== Net current deferred tax asset................. 3,268 2,104 ============ ======== Net non-current deferred tax asset.............. 18,247 15,707 ============ ======== The provision for income taxes reflected in the accompanying statements of operation is analyzed as follows:

UNAUDITED ~~DECEMBER~~THREE ~~31,~~MONTHS ~~SEPTEMBER~~ENDED ~~30,~~UNAUDITED ~~2002~~SIX ~~2003~~MONTHS ENDED ------------- ------------- ~~Produced~~------------ ~~programming............................................~~------------- ~~68,399~~JUNE 6430,~~382~~ ~~Purchased~~2003 ~~sports~~JUNE ~~rights......................................... 2~~30,~~488~~ ~~1,998~~2004 ~~Licensed~~JUNE ~~program~~30, ~~rights.........................................~~2003 ~~17,593~~JUNE 1630,~~062~~ ~~Prepaid~~2004 ~~license~~------------- ~~program~~------------- ~~rights~~------------ ------------- Current...........................~~.......~~ 8920 2,~~066~~565 4992 2,~~247~~565 ~~Prepaid~~Deferred ~~produced~~income ~~programs~~taxes.............~~..........................~~ 26,~~209~~077 13,~~579~~743 ~~Prepaid~~5,487 ~~sports~~2,253 ~~rights...........................................~~------------- ------------- ~~180~~ ------------ ------------- 98Provision for income taxes........ 6,~~755~~997 886,~~448~~308 6,479 4,818 ============= ============= ============ =============

The reconciliation of the provision for income taxes to the amount determined by the application of the statutory tax rate for the Greek companies of 35% in 2003 and 2004 and the application of the statutory tax rate of 23.5% and 19.5% for the Bulgarian companies for 2003 and 2004 respectively, to pre-tax income is summarized as follows: 11 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED)

UNAUDITED ~~DECEMBER~~THREE 31MONTHS ENDED UNAUDITED SIX MONTHS ENDED ------------------------------- ------------------------------ JUNE 30, ~~SEPTEMBER~~2003 JUNE 30, ~~2002~~2004 JUNE 30, 2003 JUNE 30, 2004 ------------- ------------- ~~Advance~~------------- ~~for~~------------- ~~the~~Tax ~~right~~provision toat ~~acquire~~statutory anrate.................. ~~interest~~4,693 4,893 3,791 2,630 Effect of rate differentiation of foreign 6 79 108 258 entities.................................... Effect of change in ~~Macedonia~~tax TVrate of foreign entity... -- -- -- 238 Interest income.................................. (51) (26) (64) (51) Effect of minority interest...................... 8~~,804~~ (6) (8) (12) Disallowed expenses,~~804~~ ~~Guarantee~~non-deductible ~~deposits~~general expenses and additional taxes............... 1,631 1,272 1,790 1,528 (Income) not subject to income tax............... (85) (67) (125) (70) Increase in valuation allowance.................. ~~426~~795 ~~419~~163 987 297 ------------- ------------- 9------------- ------------- 6,~~230~~997 96,~~223~~308 6,479 4,818 ============= ============= ============= =============

Interest income is taxed at a lower rate (15%) than operating income. Disallowed prior period expenses relate to invoices for goods or services that were not received prior to the preparation of the tax returns and that relate to prior year expenses (I.E., invoices received in February that relate to services rendered in December of prior year). Non-deductible expenses relate primarily to certain car, meals and entertainment expenses and tax or other penalties. In Greece, amounts reported to the tax authorities are provisional until such time as the tax authorities inspect the books and records of an entity. Greek tax laws and related regulations are subject to interpretation by the tax authorities. The Company and the majority of its subsidiaries have been inspected by the tax authorities up to 2000. Due to the way additional taxes are assessed in Greece, the ultimate outcome of additional tax assessments for the open tax years may vary from the amounts accrued and consequently a change to operations over the above the amounts accrued may be required. During the six months ended June 30, 2004, deferred tax assets and liabilities of the Bulgarian subsidiary were re-measured and the total effect of the change in the tax rate from 23.5% to 19.5% was a charge of (euro)238, recorded as a tax expense in the consolidated statements of operation. There was no re-measurement for the three months ended June 30, 2003 and for the three months ended June 30, 2004. 7. SENIOR NOTES

UNAUDITED DECEMBER 31, ~~SEPTEMBER~~JUNE 30, ~~2002~~ 2003 2004 ------------ --------- Senior Notes due 2007 (the "2007 Notes") issued on August 12, 1997. Interest on the 2007 Notes is paid semi--annually ~~Equity~~in ~~method~~February ~~investments~~and August, commencing February 1, 1998, at a rate of 9% per annum.~~......................................~~ 15The 152007 ~~Cost~~Notes ~~method~~are ~~investment~~redeemable, in whole or in part, at the option of the Company at any time on or after August 1, 2002......................~~....................~~ 1355,~~517~~001 1340,~~517~~467 ~~-----------~~Senior Notes due 2008 (the "2008 Notes") issued on June 18, 2001. Interest on the Senior notes is paid semi-~~----------~~annually 13in July and January,~~532~~ 13commencing July 1,~~532~~ ~~===========~~2001 ~~===========~~at ~~Available-for-sale~~a ~~equity~~rate ~~securities:~~of ~~Cost~~9.75% per annum.~~..........................................................~~ 3The 2008 Notes are redeemable,~~408~~ 3in whole or in part,~~408~~ ~~Unrealized~~at ~~gain~~the option of the company at any time on or after 2005................................~~.................~~ ~~123~~138,750 ~~405~~138,750 ------------ ----------- 3193,~~531~~751 3179,~~813~~217 ============ ===========

12 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) The 2007 Notes were issued in an aggregate face amount of US$115,000 and mature on August 1, 2007. The 2008 Notes were issued in an aggregate face amount of (euro)150,000 and mature on July 1, 2008. Interest expense for the three and six months ended June 30, 2003 and 2004 totaled (euro)4,632, (euro)9,693, (euro)4,253 and (euro)8,750, respectively, and is included in interest expense in the accompanying consolidated statements of operations. On March 31, 2003, the Company repurchased (euro)2 million of the 2008 Notes with accrued interest of (euro)49 to the date of repurchase. On December 9, 2003, the Company repurchased (euro)3 million of the 2008 Notes with accrued interest of (euro)128 to the date of repurchase. On May 14, 2003, the Company repurchased (euro)1.7 million ($2.0 million) of the 2007 Notes, with accrued interest of (euro)46 ($54) to the date of repurchase. On December 23, 2003, the Company repurchased (euro)0.8 million ($1 million) of the 2007 Notes with accrued interest of (euro)29 to the date of repurchase. On February 16, 2004, the Company repurchased $20 million ((euro)15.8 million) of the 2007 Senior Notes through a partial redemption, with accrued interest of (euro)58 to the date of redemption. The early extinguishment of the 2008 Notes resulted in the following:

UNAUDITED ~~DECEMBER~~THREE ~~31,~~MONTHS ~~SEPTEMBER~~ENDED ~~30,~~UNAUDITED ~~2002~~SIX ~~2003~~MONTHS ENDED ------------------------------ ------------------------------- ~~Deferred~~JUNE ~~tax~~30, ~~liabilities:~~2003 ~~Intangible~~JUNE ~~and~~30, ~~tangible~~2004 ~~assets.............................~~JUNE ~~215 400 Programming costs.......................................... 7~~30,~~033~~ ~~6,034~~2003 ~~Deferred~~JUNE ~~charges........................................... 639 777 Leased assets.............................................. 1~~30,~~185~~ ~~1,006~~2004 ~~Customer advances and accounts payable..................... 276~~ -- ~~Other...................................................... 653 1,262~~ ----------- ------------- ~~Gross deferred tax liabilities.................................. 10,001 9,479~~ ------------- ------------- ~~Deferred~~Discount ~~tax~~on ~~assets:~~prepayment ~~Property~~of ~~and~~Senior ~~equipment~~Notes....~~.................................~~ ~~100~~-- ~~140~~-- ~~Start~~300 up-- ~~costs.............................................~~Write-off ~~2,712~~of ~~2,207~~related ~~Long~~unamortized ~~term~~debt ~~liability........................................ 45 45 Long term lease liability.................................. 400 253 Short~~-~~term~~- ~~lease liability................................. 314 288 Long~~-~~term~~- ~~receivables......................................~~(76) 674 674 Accounts receivable........................................ 2,269 1,901 Employee retirement benefits............................... 494 567 Other assets............................................... 8,412 8,551 Marketable equity securities............................... 9,603 8,180 Accrued expenses and other provisions...................... 259 -- ~~Iperating~~issuance ~~losses~~costs.......................~~....................~~ ~~4,993 6,510~~ ----------- -- --------- ~~Gross deferred tax assets....................................... 30,275 29,316~~ ---- ------- ------~~-----~~ ~~Less: Valuation allowance (2,288) (3,713)~~ ----------- --~~---------~~ ~~Net~~Gain ~~deferred tax assets~~.....................................~~....~~ ~~17,986~~-- ~~16,124~~-- 224 -- ============= ============= ============= =============

The early extinguishment of the 2007 Notes resulted in the following:

UNAUDITED ~~DECEMBER~~THREE ~~31,~~MONTHS ~~SEPTEMBER~~ENDED ~~30,~~UNAUDITED ~~2002~~SIX ~~2003~~MONTHS ENDED ------------------------------ ------------------------------- ~~Net~~JUNE ~~current~~30, ~~deferred~~2003 ~~tax~~JUNE ~~liability..............................~~30, (32004 JUNE 30,~~712)~~ (32003 JUNE 30,~~316)~~ 2004 ------------- ------------- ~~Net~~------------- ~~current~~------------- ~~deferred~~Discount ~~tax~~on ~~asset~~prepayment of Senior Notes.. 137 -- 137 (475) Write-off of related unamortized debt (178) -- (178) (358) issuance costs.....................~~...........~~ ~~4,137~~------------- ~~3,898~~ ------------- ------------- ~~Net non~~-~~current~~------------ ~~deferred tax asset~~(Loss).................................. ~~17,561~~(41) ~~15,542~~ --~~---------~~ ~~-----------~~(41) (833) ============= ============= ============= =============

In accordance with SFAS No. 145, the gain (loss) for the three and six months ended June 30, 2003 and 2004, has been recorded in other income (expenses), net. The indebtedness evidenced by the 2007 and the 2008 Notes constitutes a general unsecured senior obligation of the Company and ranks PARI PASSU in right of payment with all other senior indebtedness and senior in right of payment to all subordinated indebtedness of the Company. The indentures with respect to the 2007 and the 2008 Notes contain certain covenants and restrictions that, among other things, limit the type and amount of additional indebtedness that may be incurred by the Company and impose certain limitations on investments, loans and advances, sales or transfers of assets, dividends and other payments, the ability of the Company to enter into sale-leaseback transactions, certain transactions with affiliates, certain mergers and limitation of business activities. 13 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) 8. FOREIGN EXCHANGE GAINS (LOSSES) Foreign exchange gains (losses) included in the consolidated statements of operations are analyzed as follows:

UNAUDITED THREE MONTHS ENDED UNAUDITED ~~NINE~~SIX MONTHS ENDED ------------------------------ ------------------------------- ~~SEPTEMBER~~JUNE 30, ~~SEPTEMBER~~2003 ~~30,~~JUNE ~~SEPTEMBER~~ 30, ~~SEPTEMBER~~2004 JUNE 30, ~~2002~~ 2003 ~~2002~~JUNE ~~2003~~30, 2004 ------------- ------------- ------------- ------------- ~~Current~~Unrealized foreign exchange gain (loss) on Senior Notes (US$)...................~~...........~~ 13,~~665~~290 ~~157~~(372) 105,~~914~~926 (1,~~149~~301) ~~Deferred~~Unrealized ~~income~~foreign ~~taxes~~exchange (loss) and gain and on cash, receivables and payables denominated in foreign currencies (US$) and realized (losses) gains on transactions, net....................... (~~7,232~~304) (~~3,724~~186) (~~13,363~~768) ~~1,763~~296 ------------- ------------- ------------- ------------- 2,986 (~~Benefit~~558) ~~provision for income taxes. (~~5,~~567)~~158 (31,~~567~~005) ~~(2,449) 2,912~~ ============= ============= ============= =============

9. OTHER INCOME (EXPENSE), NET

UNAUDITED THREE MONTHS ENDED UNAUDITED ~~NINE~~SIX MONTHS ENDED ------------------------------ ------------------------------- ~~SEPTEMBER~~JUNE 30, ~~SEPTEMBER~~2003 ~~30,~~JUNE ~~SEPTEMBER~~ 30, ~~SEPTEMBER~~2004 JUNE 30, ~~2002~~ 2003 ~~2002~~JUNE ~~2003~~30, 2004 ------------- ------------- ------------- ------------- ~~Tax~~Other than temporary (~~benefit~~loss) ~~provision~~from atmarketable ~~statutory~~securities ~~rate........~~ (~~5,677)~~see ~~(3,763)~~note ~~(3,762~~5) ~~28 Effect of change in tax rate~~...............~~......~~ -- -- ~~322~~ -- ~~Goodwill~~(1,394) ~~and~~Other ~~other~~(loss), ~~amortizable intangible assets~~net. ~~44 9 78 72 Interest income~~..........................~~........~~ -- (2299) ~~(38)~~18 (8674) ~~Effect~~36 ofGain ~~minority interest...................... 6 15~~ (~~253~~loss) 7on ~~Disallowed~~repurchase ~~prior~~of ~~period~~senior ~~expenses,~~notes ~~non-deductible general expenses and additional taxes....... 176~~ (~~90)~~see ~~510~~note ~~1,638 (Income~~7) ~~not subject to income tax~~............... ~~(116) (47) (162) (172) Increase in valuation allowance~~............~~......~~ (41) -- ~~331~~183 ~~856~~(833) ~~1,425~~ ------------- ------------- ------------- ------------- (~~5,567~~140) ~~(3,567)~~18 109 (2,~~449~~191) ~~2,912~~ ============= ============= ============= =============

10. SEGMENT INFORMATION The Company follows Statement of Financial Accounting Standards No 131 (SFAS 131), Disclosures about Segments of an Enterprise and Related Information. The Company's reportable segments are: Television, Radio, Pay Television, Music Recording, Internet and Publishing. The Television segment represents a broadcast network and producer of television programming. Revenue is earned from the sale of advertising time to local and international branches of advertising agencies and from royalties from the syndication of programming. The Radio segment represents a free-to-air radio operator, which sells advertising time to local and international branches of advertising agencies. The Pay Television segment sells programming to local and international subscription television platforms. The Music Recording segment is a producer of compact discs, DVDs and cassettes of local popular artists and authors for sale to distributors. The Internet segment produces and offers content for mobile telephone subscribers. The Publishing segment is a publisher of magazines, pamphlets and books for sale to distributors. The Other segment is responsible for a portion of the Company's financial operations and includes training centers, production of infomercials, consulting and air advertisements (audiotext). The accounting policies of the 14 ANTENNA TV S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED) (IN THOUSANDS OF EURO AND US DOLLARS, EXCEPT SHARE DATA AND WHERE OTHERWISE INDICATED) segments are the same as those described in the summary of significant accounting policies. Identifiable assets by segment are those assets that are used in the operations of that business. Sales are attributed to countries based on selling location. Intersegment sales are accounted for at fair value as if the sales were to third parties. Three months ended June 30, 2003:

UNAUDITED ~~DECEMBER~~THREE ~~31,~~MONTHS ~~2002~~ENDED ~~SEPTEMBER~~JUNE 30, 2003 ----------------- ------------------------------------------------------------------------------------ ~~Senior~~PAY ~~notes~~MUSIC ~~due~~INTERSEGMENT ~~2007~~TOTAL ~~(the~~TELEVISION ~~"2007~~RADIO ~~Notes")~~TELEVISION ~~issued~~PUBLICATIONS onINTERNET ~~August~~RECORDING ~~12,~~OTHER ~~1997~~ELIMINATION CONSOLIDATED ----------------------------------------------------------------------------------------------------- Advertising revenue........ ~~Interest~~41,386 on1,293 ~~the~~-- ~~2007~~2,348 ~~Notes~~-- is-- ~~paid~~-- ~~semi~~-~~annually~~- in45,027 ~~February~~Related ~~and~~party ~~August~~sales........ 2,036 ~~commencing~~164 ~~February~~-- 64 280 -- -- (1,379) ~~1998~~1,165 atPublication arevenue........ ~~rate~~-- of-- 9%-- ~~per~~5,801 ~~annum.~~-- ~~The~~-- ~~2007~~-- ~~Notes~~-- ~~are~~5,801 ~~redeemable~~Other revenue.............. 1,209 in4 ~~whole~~128 or626 in1,082 ~~part~~1,063 at1,804 ~~the~~(1) ~~option~~5,915 of------------------------------------------------------------------------------------------------------ ~~the~~Total ~~Company~~revenues............. at44,631 ~~any~~1,461 ~~time~~128 on8,839 or1,362 ~~after~~1,063 ~~August~~1,804 (1,380) ~~2002~~57,908 Cost of Sales.............. 11,165 590 38 7,539 98 604 870 (66) 20,838 Related party cost of sales............ 3 -- -- 13 404 86 420 (926) -- Selling, general and administrative expenses................. 5,271 462 7 1,459 186 288 625 -- 8,298 Related party selling, general and administrative expenses.................. ~~68,941~~284 ~~60,330~~4 ~~Senior~~-- ~~notes~~32 ~~due~~125 ~~2008~~-- 9 (~~the~~454) ~~"2008~~-- ~~Notes")~~Depreciation ~~issued~~and onamortization ~~June~~859 1814 24 530 185 2 36 84 1,734 ~~2001~~Amortization of programming costs..................... ~~Interest~~11,368 on-- ~~the~~-- ~~2008~~-- ~~Notes~~-- is-- ~~paid~~-- ~~semi~~-~~annually~~- in11,368 ~~July~~------------------------------------------------------------------------------------------------------ ~~and~~Operating ~~January~~income (loss)..... 15,681 ~~commencing~~391 ~~January~~59 1(734) 364 83 (156) (18) 15,670 ~~2002~~Interest expense, atnet....... a(4,798) ~~rate~~(18) of(11) ~~9.75%~~(302) ~~per~~-- ~~annum.~~(1) ~~The~~6 ~~2008~~-- ~~Notes~~(5,124) ~~are~~Foreign ~~redeemable~~exchange gains (losses), innet............. ~~whole~~2,660 or132 in194 ~~part~~-- -- -- -- -- 2,986 atOther ~~the~~income ~~option~~(expense), ofnet ~~the~~(73) ~~Company~~-- at-- ~~any~~(68) ~~time~~-- on-- or1 ~~after~~-- ~~July~~(140) ~~2005~~Minority interest in profit of consolidated entities, net.... ~~143,750~~-- ~~141,750~~-- -- (3) -- -- -- 46 43 --------- --------------------------------------------------------------------------------------------- ~~212~~Income (loss) before tax... 13,~~691~~470 ~~202~~505 242 (1,~~080~~107) 364 82 (149) 28 13,435 Net Income (loss).......... 7,374 325 242 (1,576) 544 (185) (314) 28 6,438 ================= =====================================================================================

15 Six months ended June 30, 2003:

UNAUDITED THREE MONTHS ENDED ~~UNAUDITED~~JUNE ~~NINE~~30, ~~MONTHS~~2003 ~~ENDED~~ ------------------------------------------------------------------------------------------------------ PAY MUSIC INTERSEGMENT TOTAL TELEVISION RADIO TELEVISION PUBLICATIONS INTERNET RECORDING OTHER ELIMINATION CONSOLIDATED ------------------------------------------------------------------------------------------------------ ~~SEPTEMBER~~Advertising 30revenue......... 66,165 ~~SEPTEMBER~~2,048 30-- 3,849 ~~SEPTEMBER~~-- 30-- -- -- 72,062 ~~SEPTEMBER~~Related 30party sales......... 4,114 ~~2002~~242 ~~2003~~-- ~~2002~~128 ~~2003~~420 29 -- (1,906) 3,027 Publication revenue......... -- -- -- 11,809 -- -- -- -- 11,809 Other revenue............... 2,536 4 238 1,099 1,628 1,866 3,612 (4) 10,979 ----------- ------------- ------------------------------------------------------------------------------- ~~Discount~~Total onrevenues.............. ~~prepayment~~72,815 2,294 238 16,885 2,048 1,895 3,612 (1,910) 97,877 Cost of ~~Senior~~Sales............... ~~Notes~~19,319 1,169 79 14,466 227 1,042 1,877 (134) 38,045 Related party cost of sales 6 -- -- 36 457 103 628 ( 1,230) -- Selling, general and administrative expenses... 9,631 1,176 13 2,551 342 523 907 -- 15,143 Related party selling, general and administrative expenses.................. 453 8 -- ~~449~~70 ~~300~~125 ~~Write~~3 21 (680) -~~off~~- ofDepreciation ~~related~~and ~~unamortized~~amortization.............. ~~debt~~1,678 ~~issuance~~43 51 1,062 350 5 63 180 3,432 Amortization of programming costs..................... 25,186 -- -- ~~(78)~~-- ~~(76)~~-- -- -- -- 25,186 ------- ------------- ----------------------------------------------------------------------------------- Operating income (loss)..... 16,542 (102) 95 (1,300) 547 219 116 (46) 16,071 Interest expense, net....... (9,782) (34) (24) (700) -- -- 11 -- (10,529) Foreign exchange gains (losses), net............. 4,704 171 285 (2) -- -- -- -- ~~Gain~~5,158 Other income (expense), net....................... 163 -- -- (71) -- (1 ) -- 18 109 Minority interest in profit of consolidated entities, net....................... -- -- ~~371~~-- ~~224~~(1) -- -- -- 24 23 ------------------------------------------------------------------------------------------------------- Income (loss) before tax.... 11,627 35 356 (2,074) 547 218 127 (4) 10,832 Net Income (loss)........... 5,735 21 356 (2,302) 802 (97 ) (158) (4) 4,353 ------------------------------------------------------------------------------------------------------- Segment assets Total assets at June 30, 2003............. 386,459 6,690 790 41,635 5,422 3,050 10,768 (75,478) 379,336 ============= ============= ============= ================================================================

16 Three months ended June 30, 2004:

UNAUDITED THREE MONTHS ENDED ~~UNAUDITED~~JUNE ~~NINE~~30, ~~MONTHS~~2004 ~~ENDED~~ ------------------------------------------------------------------------------------------------------ PAY MUSIC INTERSEGMENT TOTAL TELEVISION RADIO TELEVISION PUBLICATIONS INTERNET RECORDING OTHER ELIMINATION CONSOLIDATED ------------------------------------------------------------------------------------------------------ ~~SEPTEMBER~~Advertising 30revenue........ 42,002 ~~SEPTEMBER~~1,274 30-- 2,699 ~~SEPTEMBER~~-- 30-- -- 45,975 ~~SEPTEMBER~~Related 30party sales........ 3,672 ~~2002~~186 ~~2003~~-- ~~2002~~95 ~~2003~~270 -- -- (2,527) 1,696 Publication revenue........ -- -- -- 6,371 -- -- -- -- 6,371 Other revenue.............. 1,714 1 1,052 479 3,228 1,143 2,898 (2) 10,513 --------- ------------- -------------------------------------------------------------------------------- ~~Discount~~Total onrevenues............. ~~prepayment~~47,388 1,461 1,052 9,644 3,498 1,143 2,898 (2,529) 64,555 Cost of ~~Senior~~Sales.............. ~~Notes~~11,588 631 37 7,261 115 953 1,111 (107) 21,589 Related party cost of sales.................... 3 -- 723 7 (105) 43 914 (1,585) -- Selling, general and administrative expenses................. 6,813 321 5 1,914 377 280 780 -- ~~137~~10,490 ~~Write~~Related party selling, general and administrative expenses................. 274 2 -~~off~~- of38 ~~related~~616 ~~unamortized~~1 ~~debt~~12 ~~issuance~~(943) ~~costs~~-- Depreciation and amortization............. 817 10 24 434 78 6 40 185 1,594 Amortization of programming costs........ 11,453 -- -- -- ~~(178)~~-- -- -- -- 11,453 ------- ------------- ------------- --------------------------------------------------------------------- ~~Gain~~Operating income (loss).... 16,440 497 263 (10) 2,417 (140) 41 (79) 19,429 Interest expense, net...... (4,406) (14) (9) (497) 2 1 2 -- (4,921) Foreign exchange gains (losses), net (659) 35 66 -- -- -- -- -- (558) Other income (expense), net 17 -- -- 1 -- (1) 1 -- 18 Minority interest in loss (profit) of consolidated entities, net............ -- -- -- (9) -- -- -- 24 15 ------------------------------------------------------------------------------------------------------ Income (loss) before tax... 11,392 518 320 (515) 2,419 (140) 44 (55) 13,983 Net Income (loss).......... --6,574 --337 --274 (41922) 1,582 (194) (8) 32 7,675 ============= ============= ============= ===============================================================

17 Six months ended June 30, 2004:

UNAUDITED ~~DECEMBER~~THREE ~~31,~~MONTHS ~~2002~~ENDED ~~SEPTEMBER~~JUNE 30, ~~2003~~2004 ------------------------------------------------------------------------------------------------------- PAY MUSIC INTERSEGMENT TOTAL TELEVISION RADIO TELEVISION PUBLICATIONS INTERNET RECORDING OTHER ELIMINATION CONSOLIDATED ------------------------------------------------------------------------------------------------------- ~~Loan~~Advertising ofrevenue....... ~~(euro)978~~69,131 ~~due~~2,249 in-- ~~annual~~4,632 ~~installments~~-- of-- -- -- 76,012 Related party sales....... 4,596 282 -- 185 417 -- -- (~~euro~~3,091)~~489~~ 2,389 ~~bearing~~Publication ~~interest~~revenue....... at-- ~~variable~~-- ~~rates~~-- (411,960 -- -- -- -- 11,960 Other revenue.9%............ 2,885 5%1 ~~and~~1,152 1,188 3,887 1,773 4,848 (2) 15,732 ------------------------------------------------------------------------------------------------------- Total revenues............ 76,612 2,532 1%,152 17,965 4.,304 1,773 4%,848 ~~for~~(3,093) ~~the~~106,093 ~~three~~Cost ~~and~~of ~~nine~~sales............. ~~months~~19,821 ~~ended~~1,231 ~~September~~74 3014,207 ~~2002~~214 ~~and~~1,503 ~~2003~~1,969 ~~respectively~~(167) ~~and~~38,852 ~~due~~Related inparty ~~2003~~cost of sales................ ~~Guaranteed~~3 by-- ~~the~~723 ~~Company~~26 1 74 1,104 (1,931) -- Selling, general and and administrative expenses................ 12,632 690 12 3,291 612 560 1,202 -- 18,999 Related party selling, general and administrative expenses................ ~~489~~427 4 -- ~~Less:~~68 ~~Current~~639 ~~portion~~1 23 (1,162) -- Depreciation and amortization........... 1,628 32 48 851 223 10 78 323 3,193 Amortization of programming costs....... 24,595 -- -- -- -- -- -- -- 24,595 ------------------------------------------------------------------------------------------------------- Operating income (loss)... 17,506 575 295 (478) 2,615 (375) 472 (156) 20,454 Interest expense, net..... (8,880) (28) (18) (856) 2 1 3 -- (9,776) Foreign exchange (losses), net.................... (1,039) (18) 51 -- -- -- -- -- (1,005) Other income, (expense), net(1) ................ (~~489~~799) -- -- 1 1 (1) (1,393) -- (2,191) Minority interest in (profit) losses of consolidated entities.. -- -- -- (10) -- -- --- 43 33 ------------------ ------------------------------------------------------------------------------------- (Loss) income before tax.. 6,788 530 328 (1,343) 2,618 (375) (918) (113) 7,515 Net (loss) income......... 3,788 294 283 (1,594) 1,689 (347) (1,151) (265) 2,697 ------------------------------------------------------------------------------------------------------- Segment assets Total assets at June 30, 2004................ 355,427 6,716 1,898 42,609 9,076 3,832 11,719 (78,811) 352,466 ================= ======================================================================================

(1) Included in other income (expense), net (under segment other) is the additional write-down of the marketable equity securities representing an other than temporary loss amounting to (euro)1,394 (see note 5) 18 GEOGRAPHIC AREAS Information about geographic areas is as follows:

UNAUDITED THREE MONTHS ENDED UNAUDITED ~~NINE~~SIX MONTHS ENDED ------------------------------ ------------------------------- ~~SEPTEMBER~~JUNE 30, ~~SEPTEMBER~~2003 ~~30,~~JUNE ~~SEPTEMBER~~ 30, ~~SEPTEMBER~~2004 JUNE 30, ~~2002~~ 2003 ~~2002~~JUNE ~~2003~~30, 2004 ------------- ------------- ------------- ------------- ~~Unrealized~~REVENUES: ~~foreign~~Greece............ ~~exchange~~55,340 ~~gain~~61,350 on93,464 ~~Senior~~101,003 ~~Notes~~United ~~(US$)~~States..... 268 214 877 424 Australia......... 128 202 238 302 Cyprus............~~...~~ ~~256~~297 ~~777~~421 ~~8,562~~446 ~~6,703~~550 ~~Unrealized foreign exchange gain(loss) on cash, receivables and payables denominated in foreign currencies (US$) and realized gains (losses) on transactions, net~~Bulgaria.......... ~~234~~1,875 ~~(106)~~2,368 (2,852 3,~~097)~~814 ~~(874)~~ ------------- ------------- ------------- ------------- ~~490~~57,908 ~~671~~64,555 597,~~465~~877 5106,~~829~~093 ============= ============= ============= =============

Note: Revenues are attributed to countries based on location of customer. LONG LIVED ASSETS ARE ANALYZED AS FOLLOWS UNAUDITED DECEMBER 31, JUNE 30, 2003 2004 ------------ --------- Domestic ............................... 101,736 101,349 International .......................... 1,414 1,282 ------------ --------- Total ............................. 103,150 102,631 ============ ========= 11. SUBSEQUENT EVENTS The Company entered into an agreement in principle, on July 29, 2004, with certain shareholders of Daphne as a result of which Antenna will increase its ownership interest in Daphne through a combination of share transfers and a capital increase. Antenna expects that upon completion of the transaction it will own approximately 90% of Daphne and will have paid, or capitalized loans, in an aggregate of (euro)6.6 million. 19 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS YOU SHOULD READ THE FOLLOWING TOGETHER WITH OUR CONSOLIDATED FINANCIAL STATEMENTS AND THE NOTES TO THOSE FINANCIAL STATEMENTS. WE MAINTAIN OUR ACCOUNTING RECORDS AND PUBLISH OUR STATUTORY FINANCIAL STATEMENTS FOLLOWING GREEK TAX AND CORPORATE REGULATIONS. CERTAIN ADJUSTMENTS HAVE BEEN MADE TO THESE RECORDS TO PREPARE THE CONSOLIDATED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION IN THIS QUARTERLY REPORT. YOU SHOULD READ THE INFORMATION UNDER "FORWARD-LOOKING STATEMENTS" FOR SPECIAL INFORMATION ABOUT OUR INTERPRETATION OF FORWARD-LOOKING INFORMATION. GENERAL We derive a substantial portion of our revenue from the sale of advertising time. Total advertising revenue made up 71.6% of total net revenue in the six months ended June 30, 2004. We report revenue from publishing due to our interest in Daphne Communications S.A. (or Daphne), which in the six months ended June 30, 2004 represented 11.3% of total net revenue. Other revenue including related party revenue, primarily consisting of program sales, sales of recorded music, Visa card fees and commissions, revenue from the provision of technical services and infomercials, SMS/WAP fees, tuition fees and pay television fees, represented 17.1% of total net revenue in the six months ended June 30, 2004. Our revenue fluctuates throughout the year, with television advertising revenue usually at its lowest level during the third fiscal quarter (14.2% of total net television advertising revenue in 2003), and usually at its highest level during the fourth fiscal quarter (28.3% of total net television advertising revenue in 2003) or the second fiscal quarter (35.9% of the total net television advertising revenue in 2003). Television advertising revenue was approximately 4.5% higher in the six months ended June 30, 2004 compared to the same period of 2003. Nova Television has re-commenced operations as a nationwide television station. As a result the Company intends to invest approximately (euro)2.5 million ($3.0 million) in Bulgaria between the end of 2003 and 2008 to upgrade the network. RECENT DEVELOPMENT A wholly owned subsidiary of Antenna TV entered into an agreement in principle, on July 29, 2004, with certain shareholders of Daphne as a result of which Antenna will increase its ownership interest in Daphne through a combination of share transfers and a capital increase. Antenna expects that upon completion of the transactions it will own approximately 90% of Daphne and will have paid, or capitalized loans, in an aggregate of (euro)6.6 million. REVENUE ADVERTISING REVENUE Television advertising is sold in time increments and is priced primarily on the basis of the program's popularity, as demonstrated by its ratings, within the demographic group that an advertiser desires to reach. In addition, advertising rates are affected by such factors as the number of advertisers competing for the available time and the availability of alternative advertising media. Substantially all of our television advertising revenue is generated from national advertising arrangements and contracts with local and international branches of advertising agencies, representing both multinational and national advertisers. We use our own sales force to sell advertising time. Arrangements for advertising are reached during the first quarter of each year, at which time estimates of annual revenue are determined. Advertising time generally is reserved on a monthly basis, with a small proportion booked on a spot basis. Advertising revenue is recorded when the advertisement is aired. As is common in the industry, we provide certain advertising agencies with an incentive rebate of up to a maximum of 9.9% of the cost of the airtime purchased, as permitted by law. At the end of each year, the rebates are calculated and the advertising agencies, which are entitled to a rebate then invoice us for an airtime credit for the following year that reflects the rebate. These rebates are estimated and accrued on a quarterly basis as the related revenues are earned. Revenue is recorded net of the rebates. While most advertising arrangements tend to be reviewed on an annual basis, and typically are renewed, we seek to develop and maintain long-term relationships with the agencies and advertisers. 20 While we sell a significant portion of our available television advertising time, we do not sell all of it. In the first six months of 2004, we sold approximately 96.3% of total available advertising time during prime time broadcasts and approximately 77.1% of total available advertising time, including unsold advertising time (commonly referred to as "dead time") allocated to audiotext, our magazines, infomercials and home shopping. We use a variety of means to utilize dead time to improve our operating results and cash flows, including through sources such as audiotext and infomercials. We derive revenue from our subsidiary, Audiotex, which generates audiotext revenue, and from Epikinonia Ltd, which produces infomercials and pays us for production and technical support. RELATED PARTY (PROGRAMMING) REVENUE We also derive revenue from royalties received from syndicating our own programming. These programming sales are made to a variety of users, including a television network in Cyprus operated by Antenna TV Ltd. (Cyprus) (or Antenna Cyprus) and broadcasters targeting Greek-speaking viewers in the United States, Canada and Australia. Sales of programming to Greek-speaking viewers are made in the United States through an affiliated entity, Antenna Satellite TV (USA) Inc. (or Antenna Satellite), and in Australia through our wholly-owned subsidiary, Pacific Broadcast. Revenue derived from Antenna Satellite, Antenna Cyprus and Pacific Broadcast represented revenue from sources outside Greece. See note 10 to our consolidated financial statements. In addition, we sell selected news footage to other news broadcasters around the world. PUBLISHING REVENUE We derive circulation and advertising revenue from the publication of a wide variety of Greek magazines. These magazines cover subject matter ranging from style and fashion to parenting, from politics to astrology and from entertainment to shipping and defense. We also derive revenue from the printing of books, magazines, pamphlets and other publications for third parties. OTHER REVENUE Other revenue is derived from: o program sales; o sales of recorded music (principally Greek pop hits) in compact disc, DVD and cassette format that we produce with local popular artists and authors; o Visa(R)card fees and commissions; o the provision of technical services and infotainment services, such as news information, sports results and horoscopes; o SMS services and message services related to reality television shows; o tuition fees; and o pay television fees. COSTS AND EXPENSES Cost of sales includes the costs of acquiring foreign programming and Greek features, together with the cost of gathering, producing and broadcasting news as well as publication costs. Selling, general and administrative expenses ("SG&A") includes payroll costs and sales, marketing and promotion costs, broadcast license fees and other operating and administrative expenses. 21 Programming costs generally either are expensed as cost of sales in the year incurred or capitalized and amortized over a period of three to four years. Programs that are expensed in the current period include news programs and a portion of acquired programming, principally Greek features. For such programming, substantially all of the value is realized upon the initial broadcast, either because of the topical nature of the programming or, in the case of acquired programming, contractual limitations on subsequent broadcasts. Acquired foreign programs, which have contracts limiting our broadcasts to a specific number during their term (usually two broadcasts during a two- or three-year period), are expensed in equal portions each time the program is broadcast. The costs of other programming, such as series, soap operas, shows, and made-for-television movies, where substantial value can be realized through multiple broadcasts or syndication, are capitalized as an asset and amortized, unless we determine during the current period that a program is unlikely to generate revenue in future periods, in which case the associated costs are expensed in the current period. We follow SOP 00-2 which established new accounting standards for producers and distributors of films, including changes in revenue recognition and accounting for advertising, development and overhead costs. It requires advertising costs for television productions to be expensed as incurred, certain indirect overhead costs to be charged directly to expense instead of being capitalized to film costs, and all film costs to be classified on the balance sheet as non-current assets. Under SOP 00-2 estimated total production costs or accrued expenses for an individual program or series are amortized in the same ratio that current period actual revenue bears to estimated remaining unrecognized ultimate revenue as of the beginning of the current fiscal year. Amortization of capitalized film (program) costs generated and accrual (expensing) of participation costs commences when a film (program) is released and it begins to recognize revenue from that film (program). Ultimate revenue includes estimates of revenue expected to be generated from the exploitation, exhibition and sale of a film (program) over a period not exceeding ten years from the date of delivery of the first episode or, if still in production, five years from the date of delivery of the most recent episode. Typically, the majority of the revenue is earned in the initial few years following the release with declining residual revenues earned in subsequent periods. Estimates of future revenues are reviewed periodically and could be revised. To the extent such estimates are revised, the amortization of programming costs is adjusted accordingly. Such adjustments could have a material adverse effect on our financial condition and results of operation. An important component of our strategy for maximizing operating performance and long-term profitability is to continue making investments in programming to build up our own programming library. This strategy has been implemented over the past few years by significantly increasing our programming expenditures. We retain all rights to the programming in our library. This value is demonstrated by the advertising revenue generated from re-broadcasting programming produced in prior years and from programming syndicated to other networks, including programming for which the production costs have been fully amortized. In certain cases, advertising revenue has exceeded the advertising revenue generated from the initial broadcast. We expect to continue to expand our programming library and to exploit the library through the airing of reruns and the distribution and syndication of broadcast rights to third parties. Programming from the library is broadcast to Greeks abroad through third parties and in the future will also be broadcast directly. Management will continue to evaluate the total estimated revenues as new markets are entered and revenues are realized. RESULTS OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2004 (UNAUDITED) COMPARED TO THREE MONTHS ENDED JUNE 30, 2003 (UNAUDITED) REVENUES. Total net revenue increased (euro)6.7 million, or 11.5%, from (euro)57.9 million in the three months ended June 30, 2003 to (euro)64.6 million in the three months ended June 30, 2004. This increase was attributable primarily to an increase of: o (euro)2.2 million in revenue from Antenna Internet, reflecting an increase in revenue from internet sites and an increase in sales of content for SMS services related to reality television programs; 22 o (euro)1.1 million of revenue from Antenna TV's operations; o (euro)0.9 million of revenue from Audiotex; o (euro)0.8 million in revenue from Daphne, mainly due to the increase of publication revenue; o (euro)0.5 million of revenue from Nova Bulgaria, mainly due to an increase in advertising revenue; o (euro)0.1 million in revenue from Heaven Music; and o (euro)0.1 million in revenue from Antenna Pacific. This increase was also the result of the addition of (euro)0.9 million of revenue from Antenna Program Management resulting from the receipt for the first time of subscription revenue from the Antenna Gold channel on the Nova bouquet, and (euro)0.3 million of tuition fees from Fame Studio School. Advertising revenue, which comprised 71.2% of total net revenues for the three months ended June 30, 2004, increased (euro)1.0 million, or 2.1%, from (euro)45.0 million in the three months ended June 30, 2003 to (euro)46.0 million in the three months ended June 30, 2004. This increase was attributable primarily to an increase of: o (euro)0.5 million, or 28.8%, in advertising revenue from Nova Bulgaria, mainly due to an increase in advertising volume and also to a lesser extent an increase in advertising prices; o (euro)0.4 million, or 15.0%, in advertising revenue from Daphne due to increased readership; and o (euro)0.2 million, or 0.4%, in advertising revenue from Antenna TV's operations due to an increase in advertising prices. Related party revenue increased (euro)0.5 million, or 45.6%, from (euro)1.2 million in the three months ended June 30, 2003 to (euro)1.7 million in the three months ended June 30, 2004. This increase was the result of increased revenue mainly from Epikinonia and to a lesser extent from Antenna Cyprus. Publication revenue increased (euro)0.6 million, or 9.8%, from (euro)5.8 million in the three months ended June 30, 2003 to (euro)6.4 million in the three months ended June 30, 2004, resulting from an increase in the circulation of Daphne's magazines. Other revenue increased (euro)4.6 million, or 77.8%, from (euro)5.9 million in the three months ended June 30, 2003 to (euro)10.5 million in the three months ended June 30, 2004. This increase was principally the result of: o an increase of (euro)2.2 million of revenue from Antenna Internet due to an increase in revenue from internet sites and an increase in sales of content for SMS services related to reality television programs; o an increase of (euro)0.9 million of revenue from Audiotex stemming from our reality TV show `Fame Story'; o the addition of (euro)0.9 million of revenue from Antenna Program Management reflecting subscription revenue of the Antenna Gold channel on the Nova bouquet; o an increase of(euro)0.5 million of other revenue of Antenna TV; o the addition of(euro)0.3 million of tuition fees from Fame Studio School; and 23 o an increase of(euro)0.1 million of revenue from each of Heaven Music and Antenna Pacific. The increase was partially offset by a decrease of other revenue from Daphne of (euro)0.15 million. COST OF SALES. Cost of sales increased (euro)0.8 million, or 3.6%, from (euro)20.8 million in the three months ended June 30, 2003 to (euro)21.6 million in the three months ended June 30, 2004. This increase was attributable primarily to an increase in Heaven Music cost of sales of (euro)0.3 million, or 57.6%, mainly due to costs of recording, an increase in Nova Bulgaria cost of sales of (euro)0.3 million, or 30.8%, mainly due to the increased cost of programs produced locally, an increase in Audiotex cost of sales of (euro)0.1 million, or 14.2%, mainly due to an increase in royalties associated with sales volume and an increase in Antenna TV cost of sales of (euro)0.1 million, or 0.9%, mainly due to increased cost of news. This increase was partially offset by a decrease in cost of sales from Daphne of (euro)0.3 million, or 3.7%. SG&A. Selling, general and administrative expenses ("SG&A") increased (euro)2.2 million, or 26.4%, from (euro)8.3 million in the three months ended June 30, 2003 to (euro)10.5 million in the three months ended June 30, 2004. This increase was attributable primarily to an increase in SG&A of (euro)0.9 million from Antenna Television's operation, mainly due to increased traveling expenses, payroll costs and the first time assessment of fees in respect of musical tracks used on our television programs, an increase in SG&A of (euro)0.7 from Nova Bulgaria, mainly due to increased frequency fees associated with the acquisition of a nation-wide license, an increase of (euro)0.5 million from Daphne, mainly due to the increased payroll costs and an increase of (euro)0.2 million from Antenna Internet. This increase in SG&A was partially offset by a decrease of (euro)0.1 million, or 30.6%, from Antenna Radio. AMORTIZATION. Amortization of programming costs increased slightly (euro)0.1 million, or 0.8%, from (euro)11.4 million in the three months ended June 30, 2003 to (euro)11.5 million in the three months ended June 30, 2004. DEPRECIATION. Depreciation decreased (euro)0.1 million from (euro)1.7 million in the three months ended June 30, 2003 to (euro)1.6 million in the three months ended June 30, 2004. This decrease was attributable primarily to a decrease in depreciation of (euro)0.1 million from Antenna Internet and Daphne due to fully depreciated assets and was partially offset by an increase in depreciation costs for Audiotex. OPERATING INCOME. Operating income increased (euro)3.7 million, or 24.0%, from income of (euro)15.7 million in the three months ended June 30, 2003 to (euro)19.4 million in the three months ended June 30, 2004, mainly as a result of an increase in total net revenues and, to a lesser extent, a decrease in depreciation, partially offset by an increase in SG&A. This increase primarily reflected: o an increase of(euro)2.0 million in the operating income of Antenna Internet; o the addition of revenue of(euro)0.9 million in respect of Antenna Gold; o an improvement of(euro)0.7 million in operating loss of Daphne; o an increase of(euro)0.6 million in operating income of Audiotex; o an increase of(euro)0.1 million in operating income of Antenna TV; o the addition of operating income of(euro)0.1 of Fame Studio, which commenced operations in the fourth quarter of 2003; o an increase of(euro)0.1 million in operating income of Antenna Radio; and o an increase of(euro)0.1 million in operating income from Antenna Pacific. 24 This improvement was partially offset by operating loss of Nova Bulgaria of (euro)0.5 million and Heaven Music of (euro)0.3 million. INTEREST EXPENSE, NET. Interest expense, net decreased (euro)0.2 million, or 3.9%, from (euro)5.1 million in the three months ended June 30, 2003 to (euro)4.9 million in the three months ended June 30, 2004, reflecting a decrease in interest expense of Antenna TV of (euro)0.4 million due to the partial redemption of certain of our senior notes. FOREIGN EXCHANGE GAINS (LOSSES). Foreign exchange losses increased by (euro)3.6 million from gains of (euro)3.0 million in the three months ended June 30, 2003 to losses of (euro)0.6 million in the three months ended June 30, 2004, reflecting the depreciation of the euro to the US dollar in the second quarter of 2004. OTHER INCOME (EXPENSE), NET. Other income (expense), net increased (euro)0.16 million from expense of (euro)0.14 million in the three months ended June 30, 2003 to income of (euro)0.02 million in the three months ended June 30, 2004. PROVISION FOR INCOME TAXES. Provision for income taxes decreased (euro)0.7 million from (euro)7.0 million in the three months ended June 30, 2003 to (euro)6.3 million in the three months ended June 30, 2004, primarily due to a decrease in disallowed expenses, non-deductible general expenses and additional taxes and a decrease in the valuation allowance for the period. NET (INCOME). Net income increased (euro)1.3 million, or 20.3%, from (euro)6.4 million in the three months ended June 30, 2003 to (euro)7.7 million in the three months ended June 30, 2004. This increase was primarily attributable to: o the increase in operating income of(euro)2.0 million of Antenna Internet; o the addition of operating income of(euro)0.9 million in respect of Antenna Gold; o the improvement of(euro)0.7 million in operating loss of Daphne (resulting in an operating loss of (euro)1.0 million); and o the increase of(euro)0.6 million in operating income of Audiotex. Additionally, the increase in net income was also attributable to the decrease in provision from income taxes and interest expense. This increase in net income was partially offset by: o the decrease of(euro)3.6 million in foreign exchange gains; o the increase in the operating loss of(euro)0.5 million of Nova Bulgaria; and o the increase in the operating loss of(euro)0.3 million of Heaven Music. SIX MONTHS ENDED JUNE 30, 2004 (UNAUDITED) COMPARED TO SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED) REVENUES. Total net revenue increased (euro)8.2 million, or 8.4%, from (euro)97.9 million in the six months ended June 30, 2003 to (euro)106.1 million in the six months ended June 30, 2004. This increase was attributable primarily to an increase of: 25 o (euro)2.3 million in revenue from Antenna Internet, reflecting an increase in revenue from internet sites and an increase in sales of content for SMS services related to reality television programs; o (euro)1.7 million of revenue from Antenna TV's operations, mainly due to the increase in advertising revenue; o (euro)1.0 million in revenue from Daphne, mainly due to the increase in the level of advertising revenue; o (euro)1.0 million of revenue from Nova Bulgaria, mainly due to an increase in advertising revenue; o (euro)0.7 million of revenue from Audiotex stemming from our reality TV program `Fame Story'; and o (euro)0.2 million of revenue from Antenna Radio, reflecting an increase in advertising revenue. This increase was also the result of the addition of (euro)0.9 million of revenue from Antenna Gold and (euro)0.5 million of revenue from Fame Studio. This increase was partially offset by a decrease in revenue of (euro)0.1 million from Heaven Music. Advertising revenue, which comprised 71.6% of total net revenues for the six months ended June 30, 2004, increased (euro)3.9 million, or 5.5%, from (euro)72.1 million in the six months ended June 30, 2003 to (euro)76.0 million in the six months ended June 30, 2004. This increase was attributable primarily to an increase of: o (euro)2.1 million, or 3.3%, in advertising revenue from Antenna TV's operations due to an increase in advertising prices; o (euro)0.8 million, or 36.0%, in advertising revenue from Nova Bulgaria due to an increase in advertising volume and also to a lesser extent an increase in advertising prices; o (euro)0.8 million, or 20.4%, in advertising revenue from Daphne; and o (euro)0.2 million, or 9.8%, in advertising revenue from Antenna Radio. Related party revenue decreased (euro)0.6 million, or 21.1%, from (euro)3.0 million in the six months ended June 30, 2003 to (euro)2.4 million in the six months ended June 30, 2004. This decrease was the result of lower revenue mainly from Makedonia TV (due to the fact that Antenna Television reduced the number of services offered to Makedonia TV and consequently the annual charge was decreased from 22% to approximately 5%, effective from January 1, 2004). Publication revenue increased (euro)0.2 million, or 1.3%, from (euro)11.8 million in the six months ended June 30, 2003 to (euro)12.0 million in the six months ended June 30, 2004, primarily resulting from the increase in the circulation of Daphne's magazines. Other revenue increased (euro)4.7 million, or 43.3%, from (euro)11.0 million in the six months ended June 30, 2003 to (euro)15.7 million in the six months ended June 30, 2004. This increase was principally the result of: o an increase of (euro)2.3 million of revenue from Antenna Internet due to an increase in revenue from internet sites and an increase in sales of content for SMS services related to reality television programs; 26 o the addition of (euro)0.9 million of revenue from Antenna Program Management reflecting subscription revenue of Antenna Gold channel on the Nova bouquet; o (euro)0.7 million of revenue from Audiotex due to the success of our reality TV program `Fame Story'; o the addition of(euro)0.5 million of revenue from Fame Studio; o an increase of(euro)0.2 million of other revenue from Antenna TV; o an increase of(euro)0.1 million of other revenue from Nova Bulgaria; and o an increase of(euro)0.1 million of other revenue from Daphne. The increase was partially offset by a decrease of revenue from Heaven Music of (euro)0.1 million. COST OF SALES. Cost of sales increased (euro)0.9 million, or 2.1%, from (euro)38.0 million in the six months ended June 30, 2003 to (euro)38.9 million in the six months ended June 30, 2004. This increase was attributable primarily to an increase in Heaven Music cost of sales of (euro)0.5 million, or 44.2%, mainly due to costs of recording, an increase in Nova Bulgaria cost of sales of (euro)0.4 million, or 16.4%, mainly due to the increased cost of programs produced locally, an increase in Antenna TV cost of sales of (euro)0.1 million, or 0.8%, and the addition of (euro)1.0 million of cost of sales from Fame Studio. This increase was partially offset by a decrease in cost of sales of Daphne of (euro)0.3 million, or 1.8%. SG&A. SG&A increased (euro)3.9 million, or 25.5%, from (euro)15.1 million in the six months ended June 30, 2003 to (euro)19.0 million in the six months ended June 30, 2004. This increase was attributable primarily to an increase in SG&A of (euro)1.6 million from Antenna Television's operation, mainly due to the first time assessment of fees in respect of musical tracts used on our television programs, increased traveling expenses and payroll costs, an increase in SG&A of (euro)1.4 from Nova Bulgaria, mainly due to frequency fees and legal expenses associated with the acquisition of a nation-wide license, an increase of (euro)0.7 million from Daphne, mainly due to increased payroll costs, and a slight increase in SG&A of (euro)0.3 from Antenna Internet. This increase in SG&A was partially offset by a decrease of (euro)0.5 million, or 41.3%, from Antenna Radio. AMORTIZATION. Amortization of programming costs decreased (euro)0.6 million, or 2.3%, from (euro)25.2 million in the six months ended June 30, 2003 to (euro)24.6 million in the six months ended June 30, 2004. DEPRECIATION. Depreciation decreased (euro)0.2 million, or 7.0%, from (euro)3.4 million in the six months ended June 30, 2003 to (euro)3.2 million in the six months ended June 30, 2004. This decrease was attributable primarily to a decrease in depreciation of (euro)0.2 million from Daphne and of (euro)0.1 million from Antenna Internet resulting from fully depreciated assets and was partially offset by an increase in depreciation costs for Audiotex. OPERATING INCOME. Operating income improved (euro)4.4 million, or 27.3%, from income of (euro)16.1 million in the six months ended June 30, 2003 to (euro)20.5 million in the six months ended June 30, 2004, mainly as a result of an increase in total net revenues and, to a lesser extent, a decrease in amortization of Antenna TV programming costs, partially offset by an increase in SG&A. This increase primarily reflected: o an increase of(euro)2.1 million in the operating income of Antenna Internet; o the addition of revenue of(euro)0.9 million in respect of Antenna Gold; o an improvement of(euro)0.8 million in operating loss of Daphne; o an increase of(euro)0.7 million in operating income of Antenna Radio; 27 o an increase of(euro)0.6 million in operating income of Audiotex; o an increase of(euro)0.6 million in operating income of Antenna TV; o the addition of operating income of(euro)0.2 of Fame Studio; and o an increase of(euro)0.1 million in operating income from Antenna Pacific. This improvement was partially offset by the increase in operating loss of Nova Bulgaria of (euro)0.8 million and Heaven Music of (euro)0.6 million. INTEREST EXPENSE, NET. Interest expense, net decreased (euro)0.7 million, or 7.1%, from (euro)10.5 million in the six months ended June 30, 2003 to (euro)9.8 million in the six months ended June 30, 2004, primarily reflecting a decrease in interest expense of Antenna TV of (euro)0.9 million due to the partial redemption of certain of our senior notes. FOREIGN EXCHANGE GAINS (LOSSES). Foreign exchange losses increased by (euro)6.2 million from gains of (euro)5.2 million in the six months ended June 30, 2003 to losses of (euro)1.0 million in the six months ended June 30, 2004, reflecting the depreciation of the euro to the US dollar in the first half of 2004. OTHER INCOME (EXPENSE), NET. Other income (expense), net worsened (euro)2.3 million from income of (euro)0.1 million in the six months ended June 30, 2003 to expense of (euro)2.2 million in the six months ended June 30, 2004, primarily reflecting the loss of (euro)1.4 million resulting from a further other-than-temporary decline in the fair value of our marketable equity securities of Euroholdings Capital & Investment Corp. (previously known as Athenian Capital Holdings S.A.) and a loss of (euro)0.8 million from the partial redemption of our senior notes at a premium (based on the terms of such notes) and the write-off of associated debt issuance expenses, in the six months ended June 30, 2004. PROVISION FOR INCOME TAXES. Provision for income taxes decreased (euro)1.7 million, or 25.6%, from (euro)6.5 million in the six months ended June 30, 2003 to (euro)4.8 million in the six months ended June 30, 2004, primarily due to a decrease of earnings before taxes, and the decrease of valuation allowance and disallowed expenses, non deductible general expenses and additional taxes. NET INCOME. Net income decreased (euro)1.6 million from (euro)4.3 million in the six months ended June 30, 2003 to income of (euro)2.7 million in the six months ended June 30, 2004. This decrease in net income was primarily attributable to: o the increase of(euro)6.2 million in foreign exchange losses; o the further write-down of(euro)1.4 million of marketable equity securities; o the loss of(euro)0.8 million from the partial redemption of certain of our senior notes due 2007 at a premium in the first quarter; o the increase in the operating loss of(euro)0.8 million of Nova Bulgaria; and o the increase in the operating loss of(euro)0.6 million of Heaven Music. This increase in net loss was partially offset by: o an increase of(euro)2.1 million in the operating income of Antenna Internet; o the addition of operating income of(euro)0.9 million in respect of Antenna Gold; 28 o an improvement of(euro)0.8 million in operating loss of Daphne (resulting in an operating loss of (euro)0.6 million and a net loss for publishing of(euro)1.7 million); o an increase of(euro)0.7 million in operating income of Antenna Radio; o an increase of(euro)0.6 million in operating income of Audiotex; and o an increase of(euro)0.6 million in operating income of Antenna TV. Additionally, this increase in net loss was also partially offset by the decrease in interest expense and the decrease in provision from income taxes. LIQUIDITY AND CAPITAL RESOURCES We have historically funded our operations, expenditures for programming, working capital requirements and capital expenditures principally through a combination of equity contributions, indebtedness and cash flow from operations. As a result of our delisting we have no access to the equity capital markets. 1. FUTURE COMMITMENTS AND FUNDING SOURCES At June 30, 2004, our contractual cash commitments, with initial or remaining terms, are as follows (all amounts in thousands of euro):

~~UNAUDITED~~----------------------------------------------------------------------------------------------------------------------------- ~~THREE~~PAYMENTS ~~MONTHS~~DUE ~~ENDED~~BY ~~UNAUDITED~~PERIOD ~~NINE MONTHS ENDED~~ ---------------------------- ------------------------------------------------------------------------------------------------- ~~SEPTEMBER~~01/07/2004- ~~30,~~01/07/2005- ~~SEPTEMBER~~01/07/2006- 1/07/2007- 01/07/2008- CONTRACTUAL OBLIGATIONS TOTAL 30,/06/2005 ~~SEPTEMBER~~30/06/2005 30,/06/2007 ~~SEPTEMBER~~30/06/2008 30/06/2009 THEREAFTER ----------------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT (1) 179,217 ~~2002~~-- ~~2003~~-- ~~2002~~-- ~~2003~~179,217 -- -- --------- ------------- ------------- ------------------------------------------------------------------------------------------ ~~Other~~CAPITAL ~~than~~LEASE ~~temporary~~OBLIGATIONS ~~(loss)~~1,521 ~~from~~662 ~~marketable~~595 ~~equity~~261 ~~securities~~3 ~~(see~~-- ~~note~~-- 5)----------------------------------------------------------------------------------------------------------------------------- ~~........~~OPERATING (LEASES 18,707 3,~~651)~~371 --3,541 (3,726 3,926 4,~~813)~~143 -- ~~Other,~~----------------------------------------------------------------------------------------------------------------------------- ~~net..................................~~OTHER ~~(2)~~LONG-TERM 37OBLIGATIONS (~~102~~2) ~~(37)~~2,649 ~~Gain~~-- on581 ~~repurchase~~-- of-- ~~senior~~-- ~~notes..........~~2,068 -- --------------------------------------------------------------------------------------------------------------------------- ~~371~~TOTAL CONTRACTUAL CASH OBLIGATIONS 202,094 4,033 4,717 3,987 183,146 4,143 2,068 ------------- ---------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- 01/07/2004- 01/07/2005- 01/07/2006- 1/07/2007- 01/07/2008 CONTRACTUAL COMMITMENTS TOTAL 30/06/2005 30/06/2005 30/06/2007 30/06/2008 30/06/2009 THEREAFTER ----------------------------------------------------------------------------------------------------------------------------- UTILIZED LINES OF CREDIT (3~~,653~~) 3719,054 19,054 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- LETTERS OF GUARANTEE (4) 9,~~544~~076 5,738 3,338 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- OTHER COMMITMENTS (5) ~~146~~10,751 ~~=============~~611 ~~=============~~451 ~~=============~~4,968 ~~=============~~4,721 -- -- ----------------------------------------------------------------------------------------------------------------------------- TOTAL COMMERCIAL COMMITMENTS 38,881 25,403 3,789 4,968 4,721 -- -- -----------------------------------------------------------------------------------------------------------------------------

(1) Long-term debt is comprised of our senior notes. Our US dollar-denominated senior notes due 2007 are redeemable, in whole or in part, at our option at any time after August 12, 2002. Our euro-denominated senior notes due 2008 are redeemable, in whole or in part, at our option at any time on or after June 11, 2005. The above payment schedule does not give effect to the repurchases of our senior notes from time to time. (2) Other long-term obligations represent employee retirement benefits and long-term provision. (3) Revolving credit. 29 (4) The amount reflects the letters of guarantee issued by us primarily to Endemol Entertainment and Fox (Twentieth Century) as at June 30, 2004. (5) The amount reflects commitments for licensed film rights. As of June 30, 2004, we had approximately (euro)180.7 million of long-term debt (which includes the current portion of capital lease obligations of (euro)0.7 million). This debt primarily consists of our senior notes due 2007 and our senior notes due 2008, and to a lesser extent, (euro)1.5 million of long-term obligations under capital leases (including the current portion). As of June 30, 2004, we had approximately (euro)19.1 million of bank overdrafts and short-term borrowings. Bank overdrafts and short-term borrowings primarily consisted of Daphne borrowings of (euro)17.5 million dominated in euro. Short-term borrowings included short-term borrowings of (euro)1.4 million of debt under a revolving facility assumed as part of the acquisition of Antenna Radio dominated in yen and euro. We had unused bank lines at June 30, 2004 of (euro)31.6 million, of which Antenna TV had unused bank lines at June 30, 2004 of (euro)23.7 million. Our principal use of funds are payments for programming (which includes cash expenditures for programming aired during the period plus cash expenditures for programming to be aired in the future), which expenditures totaled (euro)22.4 million in the six months ended June 30, 2003 and (euro)24.1 million in the six months ended June 30, 2004. OPERATING ACTIVITIES. Net cash used in operating activities was (euro)8.0 million in the six months ended June 30, 2003 compared to (euro)16.8 million in the six months ended June 30, 2004. The increase of (euro)8.8 million in cash used in operating activities is mainly due to lower net income as a result mainly of foreign exchange losses and write down of marketable equity securities, increased accounts receivables related to higher revenue and deferred payments to program suppliers. INVESTING ACTIVITIES. Net cash used in investing activities was (euro)4.9 million in the six months ended June 30, 2003 compared to (euro)1.1 million in the six months ended June 30, 2004. During the six months ended June 30, 2004, we upgraded some of our technical installations and purchased means of furniture and fixtures for our office and studio complex as well as means of transportation. FINANCING ACTIVITIES. Net cash used in financing activities was (euro)5.2 million in the six months ended June 30, 2003 compared to (euro)16.4 million in the six months ended June 30, 2004. The increase in net cash used in financing activities in the six months ended June 30, 2004 was principally attributable to the partial redemption of $20 million of our senior notes due 2007, partially offset by an increase in bank overdrafts of (euro)0.3 million. OFF-BALANCE SHEET ARRANGEMENTS We have no off-balance sheet arrangements. INFLATION Greece experienced average annual rates of inflation of 2.6% during 1999, 3.2 % during 2000, 3.4% during 2001, 3.6% during 2002 and 3.5% during 2003. ACQUISITIONS OF UNRELATED BUSINESS In the second quarter of 2004, we established a new wholly owned subsidiary, Antenna Program Management AE. The new subsidiary, in which the Company invested (euro)60, succeeds to the rights and obligations of Antenna Gold Overseas Ltd under the channel distribution agreement concluded with MultiChoice Hellas in 2001. 30 FASB INTERPRETATION NO. 46. In January 2003, the FASB issued FASB Interpretation No. 46, CONSOLIDATION OF VARIABLE INTEREST ENTITIES, which addresses how a business enterprise should evaluate whether it has a controlling financial interest in a an entity through means other than voting rights and accordingly should consolidate the entity. FIN 46R, issued in December 2003, replaces FASB Interpretation No. 46, CONSOLIDATION OF VARIABLE INTEREST ENTITIES. Variable interest entities are entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability based on criteria set forth in the interpretation. We will be required to apply FIN 46R to variable interests in variable interest entities created after December 31, 2003. For variable interests in variable interest entities created before January 1, 2004, the Interpretation will be applied beginning on January 1, 2005. For any variable interest entities that must be consolidated under FIN 46R that were created before January 1, 2004, the assets, liabilities and non controlling interests of the variable interest entities initially will be measured at their carrying amounts with any difference between the net amount added to the balance sheet and any previously recognized interest being recognized as the cumulative effect of an accounting change. If determining the carrying amounts is not practicable, fair value at the date FIN 46R first applies may be used to measure the assets, liabilities and noncontrolling interest of the variable interest entity. We have not yet determined the impact of applying FIN 46R. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK FOREIGN EXCHANGE RISK MANAGEMENT Since January 1, 2002, our functional currency is the euro. Prior to that date, our functional currency was the drachma. Certain of our revenue, operating costs and expenses are denominated in foreign currencies. Transactions involving other currencies are converted into euro using the exchange rates in effect at the time of the transactions. Assets and liabilities denominated in other currencies are stated at the euro equivalent using exchange rates in effect at period-end. Non-euro denominated revenue, principally from the licensing and distribution of programming outside Greece, accounted for (euro)5.1 million, or 4.8%, of total net revenue in the six months ended June 30, 2004 and (euro)4.4 million, or 4.5%, of total net revenue in the six months ended June 30, 2003. Our non-euro denominated operating costs, principally foreign-produced programming invoiced in U.S. dollars, accounted for 4.1% of total net revenue in the six months ended June 30, 2004. Non-euro denominated indebtedness (primarily U.S. dollars) totaled (euro)41.3 million at June 30, 2004. Gains and losses resulting from exchange rate fluctuations are reflected in the statements of operations. Historically, advertising in most forms of media has been correlated to general economic conditions. Since substantially all of our operations are conducted in Greece, our operating results will depend to a certain extent on the prevailing economic conditions in Greece. In addition, a significant proportion of our revenue is in euro. We expect to increase modestly the level of non-euro denominated revenue as a result of our strategy of increasing our sales of programming to Greek-speaking audiences residing outside Greece and to other markets. At times, we may hedge elements of our currency exposure through the use of derivative instruments such as forward exchange agreements and currency options. We may also consider interest rate swaps. We are continuously evaluating alternatives for future hedging opportunities. Derivatives involve, to varying degrees, market exposure and credit risk. Market exposure means that changes in interest rates or currency exchange rates cause the value of financial instruments to decrease or increase or its obligations to be more or less costly to settle. When used for risk management purposes, any gains or losses on the derivatives will offset losses or gains on the asset, liability or transaction being hedged. 31 We have experienced net foreign exchange losses in the past, and we could experience them in the future if foreign exchange rates shift in excess of the risk covered by hedging arrangements. Credit risk will arise if a counter party fails to perform its obligations. We intend to minimize credit risk by entering into contracts only with highly credit rated counter parties and through internal limits and monitoring procedures. We record financial instruments to which we are a party in the balance sheet at fair value. The tables below present the principal, cash flows and related weighted average interest rates by expected maturity date of our indebtedness that may be sensitive to foreign currency exchange rate fluctuations:

~~UNAUDITED~~DECEMBER ~~THREE MONTHS ENDED SEPTEMBER 30~~31, ~~2002~~2003 -----------------~~---------------------------------------------------------------------------------~~ ~~PAY~~FINANCIAL ~~MUSIC~~INSTRUMENT ~~INTERSEGMENT~~MATURITY ~~TOTAL~~(2007) ~~TELEVISION~~FAIR ~~RADIO~~VALUE ~~TELEVISION PUBLICATION INTERNET RECORDING OTHER ELIMINATION CONSOLIDATED~~ ---------- ----- ---------- ~~-----------~~((EURO)) ~~--------~~((EURO)) ~~---------~~($) ~~-----~~(IN ~~-----------~~MILLIONS) ~~------------~~Senior ~~Advertising~~notes ~~revenue........~~due ~~14,132~~2007 ~~686~~($69.3 --million) ~~1,277~~55.0 --55.8 --70.3 --Average --interest ~~16,095~~rate ~~Related party sales~~10.~~.......~~2% ~~1,241 66~~ -- ~~92 6 10~~ -- ~~(383)~~JUNE 130,~~032~~ ~~Publication~~2004 ~~revenue........~~ -- -- -- ~~4,734~~ -- -- -- -- ~~4,734~~FINANCIAL ~~Other~~INSTRUMENT ~~revenue..............~~MATURITY ~~691 -- 185 541 334 647 1,597~~ (22007) ~~3,993~~FAIR ~~-------~~VALUE ------- ------- -~~------~~ ------- ---~~----~~ ~~-------~~((EURO)) ~~-------~~((EURO)) ~~-------~~($) ~~Total~~(IN ~~revenues~~MILLIONS) Senior notes due 2007 ($49.3 million).................. ~~16,064~~40.5 ~~752~~41.0 ~~185~~49.9 ~~6,644~~Average ~~340~~interest ~~657 1,597 (385) 25,854 Cost of Sales~~rate.............. 4,014 599 35 5,875 159 405 1,318 (72) 12,333 Related party cost of sales -- -- -- 41 -- 72 287 (400) -- Selling , general and administrative expenses 4,806 431 13 1,007 200 (27) 255 -- 6,685 Related party selling , general and administrative expenses .................... 49.3% -- -- ~~(21)~~The 6average ~~(21)~~interest ~~(1)~~rate 33represents --the ~~Depreciation~~stated ~~and~~interest ~~amortization~~rate ~~915~~of 329% 38plus ~~1,117~~amortization ~~174 3 21 43 2,343 Amortization~~ of ~~programming~~deferred issuance costs... 11DECEMBER 31,~~835~~ --2003 -- -- -- -- -- -- ~~11,835~~ ------- ~~-------~~FINANCIAL ~~-------~~INSTRUMENT ~~-------~~MATURITY ~~-------~~(2008) FAIR VALUE ------- -------- ------- ---~~----~~ ~~Operating income~~ (~~loss)....~~ (~~5,510~~EURO) ~~(310~~) 99 (~~1,375)~~ (~~199~~EURO)) ~~225~~ (~~283~~$) 11 (~~7,342~~IN MILLIONS) ~~Interest~~Senior ~~expense,~~notes ~~net......~~due ~~(5,322)~~2008 (~~20)~~ (14euro)138.7 ~~(351~~million) --138.7 ~~2 2 -- (~~141.5~~,703)~~ ~~Foreign exchange gains (losses), net~~ 178.~~.......~~2 ~~234~~Average 14interest ~~244~~rate (10.2)% -- -- --JUNE ~~-- 490 Other income (expense)~~30, ~~net~~2004 ~~(1)................... 14~~ -- -- ~~(22) 12~~ -- ~~(3,657)~~ -- ~~(3,653) Minority interest in profit of consolidated entities, net....~~ -- -- -- ~~(2)~~FINANCIAL --INSTRUMENT --MATURITY -- (132008) ~~(15)~~FAIR ~~-------~~VALUE ------- ------- -~~------~~ ------- ---~~----~~ ~~------- ------- ------- Income~~ (~~loss) before tax...~~ (~~10,584~~EURO) ~~(316~~) ~~329~~ (~~1,752)~~ (~~187~~EURO) ~~227 (3,938~~) (2$) (~~16,223~~IN MILLIONS) ~~Net~~Senior ~~Income~~notes due 2008 (~~loss~~(euro)138.7 million)................ ~~(5,324)~~138.7 ~~(206)~~134.9 ~~331~~164.3 ~~(1,139)~~Average ~~(189)~~interest ~~148~~rate.................................. ~~(4,275) (~~10.2)% ~~(10,656)~~ --~~-----~~ --~~----- ------- ------- ------- ------- ------- ------- -------~~

The average interest rate represents the stated interest rate of 9.75% plus amortization of deferred issuance costs. INTEREST RATE RISK MANAGEMENT We manage interest rate risk by financing non-current assets and a portion of current assets with equity, long-term liabilities and long-term debt with fixed interest rates. The tables below present the principal, cash flows and related weighted average interest rates by expected maturity date of our indebtedness that may be sensitive to interest rate fluctuations: 32

~~UNAUDITED~~DECEMBER ~~NINE MONTHS ENDED SEPTEMBER 30~~31, ~~2002~~2003 -----------------~~---------------------------------------------------------------------------------~~ ~~PAY~~FINANCIAL ~~MUSIC~~INSTRUMENT ~~INTERSEGMENT~~MATURITY ~~TOTAL~~(2007) ~~TELEVISION~~FAIR ~~RADIO~~VALUE ~~TELEVISION PUBLICATION INTERNET RECORDING OTHER ELIMINATION CONSOLIDATED~~ ---------- ----- ---------- ~~-----------~~((EURO)) ~~-------- --------- ----- ----------- ------------ Advertising revenue....... 74,615 2,966 -- 5,246 -- -- -- -- 82,827 Related party sales....... 4,326 173 -- 215 27 20 --~~ (~~1,492~~(EURO)) ~~3,269 Publication revenue....... -- -- -- 13,110 -- -- -- -- 13,110 Other revenue............. 3,130 13 428 1,595 732 1,923 6,369~~ (12$) ~~14,178~~(IN ~~-------~~MILLIONS) ~~-------~~Senior ~~-------~~notes ~~-------~~due ~~-------~~2007 ~~------- ------- ------- ------- Total revenues~~($69.~~........... 82,071~~ 3~~,152~~ ~~428 20,166 759 1,943 6,369 (1,504~~million) ~~113,384~~55.0 ~~Cost of sales~~55.~~............~~8 ~~22,904 1,585 137 17,784 286 1,263~~ 70.3~~,917~~ ~~(223)~~Average ~~47,653~~interest ~~Related~~rate ~~party~~10.2% ~~cost of sales 8~~ -- -- 66JUNE ~~1 72 1~~30,~~266~~ ~~(1,413)~~2004 -- ~~Selling, general and administrative expenses 13,455 1,737 24 3,032 679 525 1,078~~ -- ~~20,530 Related party selling, general and administrative expenses 20 15~~ -- ~~37 7 5 7 (91)~~ -- ~~Depreciation and amortization........... 2,580 88 89 2,623 752 8 178 141 6,459 Amortization of programming costs.................. 34,152~~ -- -- -- --FINANCIAL --INSTRUMENT --MATURITY --(2007) ~~34,152~~FAIR ~~-------~~VALUE ------- ------- -~~------~~ ------- ---~~----~~ ~~------- ------- ------- Operating income.......... 8,952~~ (~~273) 178~~ (~~3,376~~EURO) ~~(966~~) 70 (~~77) 82 4,590 Interest expense, net.....~~ (~~15,877~~EURO) ~~(62~~) (49$) (~~1,001~~IN MILLIONS) --Senior 3notes 2due --2007 (~~16,984)~~$49.3 ~~Foreign exchange (losses~~million)~~, net~~.................... 40.5~~,119~~ 3241.0 ~~334~~49.9 ~~(20)~~Average --interest ~~-- -- -- 5,465 Other income, (expense), net(1)~~ rate................ ~~290 4 -- (18) -- -- (4,820) -- (4,544) Minority interest in (profit) losses of consolidated entities~~.. ~~-- -- -- (2) -- -- -- 726 724 ------- ------- ------- ------- ------- ------- ------- ------- ------- (Loss) income before tax~~.. ~~(1,516) (299) 463 (4,417) (966) 73 (4,895) 808 (10,749) Cumulative effect of a change in Accounting principle (net of income taxes of(euro)117)~~. ~~(736) -- -- (217) -- -- -- -- (953) ------- ------- ------- ------- ------- ------- ------- ------- ------- Net (loss) income~~......... ~~(898) (195) 463 (3,236) (968) 48 (4,954) 487 (9,253) ------- ------- ------- ------- ------- ------- ------- ------- ------- Segment assets Total assets at September 30, 2002~~....~~...........~~ ~~378,118 6,017 813 42,325 6,739 2,226~~ 9~~,601~~.3% ~~(72,168)~~-- ~~373,671 ======= ======= ======= ======= ======= ======= ======= ======= =======~~--

The average interest rate represents the stated interest rate of 9% plus amortization of deferred issuance costs.

~~UNAUDITED~~DECEMBER ~~THREE MONTHS ENDED SEPTEMBER 30~~31, ~~2002~~2003 -----------------~~---------------------------------------------------------------------------------~~ ~~PAY~~FINANCIAL ~~MUSIC~~INSTRUMENT ~~INTERSEGMENT~~MATURITY ~~TOTAL~~(2008) ~~TELEVISION~~FAIR ~~RADIO~~VALUE ~~TELEVISION PUBLICATION INTERNET RECORDING OTHER ELIMINATION CONSOLIDATED~~ ---------- ----- ---------- ~~-----------~~((EURO)) ~~--------~~((EURO)) ~~---------~~($) ~~-----~~(IN ~~-----------~~MILLIONS) ~~------------~~Senior ~~Advertising~~notes ~~revenue........~~due ~~16,373~~2008 ~~739~~((euro)138.7 --million) ~~1,833~~138.7 --141.5 --178.2 --Average --interest ~~18,945~~rate ~~Related party sales~~10.~~.......~~2% ~~1,927 158~~ -- ~~106 208 15~~ -- ~~(568)~~JUNE 130,~~846~~ ~~Publication~~2004 ~~revenue........~~ -- -- -- ~~5,447~~ -- -- -- -- ~~5,447~~FINANCIAL ~~Other~~INSTRUMENT ~~revenue..............~~MATURITY ~~803 10 151 407 781 1,118 1,007~~ (12008) ~~4,276~~FAIR ~~-------~~VALUE ------- ------- -~~------~~ ------- ---~~----~~ ~~-------~~((EURO)) ~~-------~~((EURO)) ~~-------~~($) ~~Total~~(IN ~~revenues.............~~MILLIONS) ~~19,103~~Senior ~~907~~notes ~~151~~due ~~7,793~~2008 ~~989 1,133 1,007~~ (~~569~~(euro)138.7 ~~30,514 Cost of Sales~~million)................. ~~5,045 505 37 6,425 185 955 372 (47) 13,477 Related party cost of sales 2 -- -- 25 (~~138.7) 58134.9 ~~131 (209) -- Selling , general and administrative expenses 5,303 308 6 1,529 175 222 314 -- 7,857 Related party selling , general and administrative expenses 253~~ 164.3 --Average 16interest ~~72 1 15 (360) -- Depreciation and amortization 875 24 25 548 177 3 21 72 1,745 Amortization of programming costs~~rate... ~~13,550 -- -- -- -- -- -- -- 13,550 ------- ------- ------- ------- ------- ------- ------- ------- ------- Operating income (loss)~~.... ~~(5,925) 67 83 (750) 387 (106) 154 (25) (6,115) Interest expense, net~~...... (5,063) (17) (11) (253) -- 1 1 -- (5,342) Foreign exchange gains (losses), net 671 (62) 62 -- -- -- -- -- 671 Other income (expense), net (36) -- -- 73 -- 1 (1) -- 37 Minority interest in profit of consolidated entities, net.... ~~-- -- -- 1 -- -- -- (3) (2) ------- ------- ------- ------- ------- ------- ------- ------- ------- Income (loss) before tax~~... ~~(10,353) (12) 134 (929) 387 (104) 154 (28) (10,751) Net income (loss)~~................... ~~(6,192)~~10.2% ~~(6) 134 (1,369) 238 (68) 107 (28) (7,184)~~ --~~-----~~ --~~----- ------- ------- ------- ------- ------- ------- -------~~

The average interest rate represents the stated interest rate of 9.75% plus amortization of deferred issuance costs. OTHER INFORMATION ITEM 4. OTHER INFORMATION FORWARD-LOOKING STATEMENTS We are hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made in this Quarterly Report. Statements relating to our advertising growth expectations and any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of the words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "projection" and "outlook") are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the factors discussed throughout this Quarterly Report and in our Annual Report on Form 20-F for the fiscal year ended December 31, 2003. Among the key factors that have a direct bearing on our results of operations are: 33 o changes in economic cycles and general uncertainty related to possible terrorist attacks; o our ability to successfully implement our growth and operating strategies; o competition from other broadcast companies, media and new technologies; o fluctuation of exchange rates; and o changes in the laws and government regulations. These and other factors are discussed herein under "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Quarterly Report. Because the risk factors referred to in this Quarterly Report and our Annual Report on Form 20-F could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made in this Quarterly Report by us or on our behalf, you should not place undue reliance on any of these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors will emerge in the future, and it is not possible for us to predict which factors they will be. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those described in any forward-looking statements. 34 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ANTENNA TV S.A. (Registrant) By: /s/ Nikolaos Angelopoulos ----------------------------- Name: Nikolaos Angelopoulos Title: Chief Financial Officer Dated: August 4, 2004 35

UNAUDITED NINE MONTHS ENDED SEPTEMBER 30, 2002 -------------------------------------------------------------------------------------------------- PAY MUSIC INTERSEGMENT TOTAL TELEVISION RADIO TELEVISION PUBLICATION INTERNET RECORDING OTHER ELIMINATION CONSOLIDATED ---------- ----- ---------- ----------- -------- --------- ----- ----------- ------------ Advertising revenue........ 82,538 2,787 -- 5,682 -- -- -- -- 91,007 Related party sales........ 6,041 400 -- 234 628 44 -- (2,474) 4,873 Publication revenue........ -- -- -- 17,256 -- -- -- -- 17,256 Other revenue.............. 3,339 14 389 1,506 2,409 2,984 4,619 (5) 15,255 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total revenues............. 91,918 3,201 389 24,678 3,037 3,028 4,619 (2,479) 128,391 Cost of Sales.............. 24,364 1,674 116 20,891 412 1,997 2,249 (181) 51,522 Related party cost of sales 8 -- -- 61 450 161 759 (1,439) -- Selling , general and administrative expenses 14,934 1,484 19 4,080 517 745 1,221 -- 23,000 Related party selling , general and administrative expenses 706 11 -- 86 197 4 36 (1,040) -- Depreciation and amortization 2,553 67 76 1,610 527 8 84 252 5,177 Amortization of programming costs... 38,736 -- -- -- -- -- -- -- 38,736 ------- ------- ------- ------- ------- ------- ------- ------- ------- Operating income (loss).... 10,617 (35) 178 (2,050) 934 113 270 (71) 9,956 Interest expense, net...... (14,845) (51) (35) (953) -- 1 12 -- (15,871) Foreign exchange gains (losses), net 5,375 109 347 (2) -- -- -- -- 5,829 Other income (expense), net 127 -- -- 2 -- -- (1) 18 146 Minority interest in profit of consolidated entities, net.... -- -- -- -- -- -- -- 21 21 ------- ------- ------- ------- ------- ------- ------- ------- ------- Income (loss) before tax... 1,274 23 490 (3,003) 934 114 281 (32) 81 Net Income (loss).......... (457) 15 490 (3,671) 1,040 (165) (51) (32) (2,831) ------- ------- ------- ------- ------- ------- ------- ------- ------- Segment assets Total assets at September 30, 2003 371,271 6,638 914 41,474 5,541 3,335 10,586 (76,451) 363,308 ======= ======= ======= ======= ======= ======= ======= ======= =======

UNAUDITED THREE MONTHS ENDED UNAUDITED NINE MONTHS ENDED SEPTEMBER 30, 2002 SEPTEMBER 30, 2003 SEPTEMBER 30, 2002 SEPTEMBER 30, 2003 ------------------ ------------------ ------------------ ------------------ REVENUES: Greece.......... 24,493 28,795 107,869 122,259 United States... 255 275 766 1,152 Australia....... 185 151 428 389 Cyprus.......... 154 229 1,255 675 Bulgaria........ 767 1,064 3,066 3,916 ------------------ ------------------ ------------------ ------------------ 25,854 30,514 113,384 128,391 ================== ================== ================== ==================

UNAUDITED DECEMBER 31, SEPTEMBER 30, 2002 2003 ------------ ------------- Domestic...................................................... 64,606 55,165 International................................................. 1,629 1,338 ------------ ------------- Total.................................................... 66,235 56,503 ============ =============

-------------------------------------------------------------------------------------------------------------------------------- PAYMENTS DUE BY PERIOD -------------------------------------------------------------------------------------------------------------------------------- 01/10/2003- 01/10/2004- 01/10/2005- 01/10/2006- 01/10/2007- CONTRACTUAL OBLIGATIONS TOTAL 30/09/2004 30/09/2005 30/09/2006 30/09/2007 30/09/2008 THEREAFTER -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT (1) 202,080 -- -- -- 60,330 141,750 -- -------------------------------------------------------------------------------------------------------------------------------- CAPITAL LEASE OBLIGATIONS 2,162 824 624 568 145 -- -- -------------------------------------------------------------------------------------------------------------------------------- OPERATING LEASES 11,357 3,447 3,171 2,911 469 495 864 -------------------------------------------------------------------------------------------------------------------------------- OTHER LONG-TERM OBLIGATIONS (2) 2,420 398 92 92 91 -- 1,747 -------------------------------------------------------------------------------------------------------------------------------- TOTAL CONTRACTUAL CASH OBLIGATIONS 218,019 4,669 3,887 3,571 61,035 142,245 2,611 --------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------- 01/10/2003- 01/10/2004- 01/10/2005- 01/10/2006- 01/10/2007- CONTRACTUAL OBLIGATIONS TOTAL 30/09/2004 30/09/2005 30/09/2006 30/09/2007 30/09/2008 THEREAFTER -------------------------------------------------------------------------------------------------------------------------------- UTILIZED LINES OF CREDIT (3) 17,301 17,301 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- LETTERS OF GUARANTEE (4) 9,505 9,119 193 193 -- -- -- -------------------------------------------------------------------------------------------------------------------------------- OTHER COMMITMENTS (5) 15,245 -- 5,589 4,721 4,935 -- -- -------------------------------------------------------------------------------------------------------------------------------- TOTAL COMMERCIAL COMMITMENTS 42,051 26,420 5,782 4,914 4,935 -- -- --------------------------------------------------------------------------------------------------------------------------------

SEPTEMBER 30, 2003 ------------------ FINANCIAL INSTRUMENT MATURITY (2007) FAIR VALUE -------------------- --------------- ---------- ((EURO)) ((EURO)) ($) (in millions) Senior notes due 2007 ($70.3 million)................ 60.3 59.3 69.1 Average interest rate................................ 10.1% --

SEPTEMBER 30, 2003 ------------------ FINANCIAL INSTRUMENT MATURITY (2008) FAIR VALUE -------------------- --------------- ---------- ((EURO)) ((EURO)) ($) (in millions) Senior notes due 2008 (Euro 141.7 million).......... 141.7 138.9 161.8 Average interest rate................................ 10.5% --

SEPTEMBER 30, 2003 ------------------ FINANCIAL INSTRUMENT MATURITY (2008) FAIR VALUE -------------------- --------------- ---------- ((EURO)) ((EURO)) ($) (in millions) Senior notes due 2008 (Euro 141.7 million)........... 141.7 138.9 161.8 Average interest rate................................ 10.5% --

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