03.08.2007

Despite the sharp correction in the world markets in the last week of Julythe Cyprus and Athens Stock Exchanges recorded strong performance with theCypriot market rising 6,5% and the Greek market 1,5% outperforming theirEuropean counterparts.

The fund continues to be overweight in the Cyprus market as it considers itundervalued compared to the Greek market. Having said that we proceeded withliquidations of some of our positions in the Cyprus market that we believe havereached negative risk Vs return levels.

During the current month the fund benefited by the performance of some of itskey positions such as Options Cassoulides and Hellenic Bank where we maintainoverweight positions. On the negative side the sharp correction of the marketsin the last week of July affected negatively some of our positions.

We remain positive for the performance of the Cyprus and Greek markets forthe rest of the year but expect volatility to be increased. This is line withour view of the performance of the world markets where we expect increasedvolatility for the rest of the year.

Portfolio Manager Marios Demetriades, Laiki EDAK and AssetManagement Ltd