UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934

~~PURSUANT~~For the TOsix ~~RULE~~months ~~13a-16~~ended ORJune ~~15d-16 OF~~30, 2004

~~THE~~FAGE ~~SECURITIES~~DAIRY ~~EXCHANGE~~INDUSTRY ~~ACT~~S.A. OF(Translation ~~1934~~of Registrant’s name into English) 35, Hermou Street, 144 52 Metamorfossi, Athens, Greece (Address of principal executive office)

For the nine months ended September 30, 2003

FAGE DAIRY INDUSTRY S.A.

(Translation of Registrant’s name into English)

35, Hermou Street, 144 52 Metamorfossi, Athens, Greece

(Address of principal executive office)

[Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.]

Form 20-F ý

Form 40-F o

[Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b))(1): o]

[Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o]

[Indicate by check mark whether the Registrant by furnishing the information contained in the Form is also there by furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]

Yes o

No ý

This report (the ‘‘Quarterly Report’’) sets forth certain information regarding the financial condition and results of operations of Fage Dairy Industry S.A., a Greek société anonyme (the ‘‘Company’’ or “Fage”), for the fiscal quarter ended ~~September~~June 30, ~~2003~~2004. The Quarterly Report encloses a review, in English, of the Company’s unaudited financial information and analysis for the ~~third~~second quarter as well as certain other information.

The following unaudited financial statements in the opinion of the 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.

For a description of accounting policies see Notes to financial statements in Fage’s ~~2002~~2003 annual report (FORM 20-F).

FAGE DAIRY INDUSTRY S.A.

FORM 6-K

INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

		Page	~~Page~~
PART I	FINANCIAL INFORMATION
ITEM 1	-FINANCIAL STATEMENTS
	a - Consolidated Balance Sheets as of December 31, 2002 and September 30, 2003		1-2
	a - Consolidated Balance Sheets as of December 31, 2003 and June 30, 2004	1-2
	b - Consolidated Statements of Operations for the nine months ended September 30, 2002 and 2003		3
	b - Consolidated Statements of Income for the six months ended June 30, 2003 and 2004	3
	c - Consolidated Statements of Operations for the three months ended September 30, 2002 and 2003		4
	c - Consolidated Statements of Income for the three months ended June 30, 2003 and 2004	4
	d - Consolidated Statement of Shareholders’ Equity for the nine months ended September 30, 2003		5
	d- Consolidated Statement of Shareholders’ Equity for the six months ended June 30, 2004	5
	e - Consolidated Statements of Cash Flows for the nine months ended September 30, 2002 and 2003		6
	e - Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and 2004	6
	f - Notes to Consolidated Financial Statements	7-14	~~7-14~~
ITEM 2	-MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	15-19	~~15-19~~
ITEM 3	-QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	19-20	~~19-20~~
ITEM 4	-CONTROLS AND PROCEDURES	20	20
PART II	OTHER INFORMATION
ITEM 1	Legal Proceedings	21	21
ITEM 2	Changes in Securities, Use of proceeds and ~~use~~Issuer Purchases of ~~proceeds~~Equity Securities	21	21
ITEM 3	Defaults upon Senior Securities	21	21
ITEM 4	Submission of Matters to a Vote of Security Holders	21	21
ITEM 5	Other Information	21	21
ITEM 6	Exhibits and Reports on Form 8-K	21	21
SIGNATURES		22	22

III

PART I

ITEM 1.a

FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, ~~2002~~2003 AND ~~SEPTEMBER~~ JUNE 30, ~~2003~~2004

(Amounts in 000’s of Euro and U.S. Dollars)

				UNAUDITED
				Unaudited
		December 31, 2002		September 30, 2003
	Notes	December 31, 2003		June 30, 2004
	Notes	EUR		EUR		U.S.$
		EUR		EUR		U.S.$
ASSETS
Current Assets
Cash and cash equivalents		72,~~866~~171		64,~~181~~672		75,~~201~~690
Marketable securities	4	34,~~116~~014		32,~~933~~685		43,~~582~~270
Accounts receivable	5	8083,~~463~~063		8496,~~140~~769		98117,~~023~~855
Less: Allowance for doubtful accounts	5	(7,~~453~~912	)	(7,~~678~~991	)	(89,~~945~~732	)
		73,010		76,462		89,078
		75,151		88,778		108,123
Due from related companies	6	1,~~587~~739		21,~~013~~996		2,~~345~~431
Inventories	7	2326,~~482~~600		2936,~~634~~013		3443,~~524~~860
Total current assets		109,~~061~~675		~~118~~134,~~223~~144		~~137~~163,~~730~~374
Investments and Other Assets
Investments in and advances to affiliates	8	~~2,433~~767		~~2,456~~597		~~2,861~~727
Other non-current assets	9	1,653		1,119		1,304
Investments on equity securities (available-for-sale)	9	1,197		1,197		1,458
		4,086		3,575		4,165
Other non-current assets	10	1,269		1,354		1,649
Property, Plant and Equipment	9
		3,233		3,148		3,834
Cost		154,824		169,398		197,349
Property, Plant and Equipment
Less: Accumulated depreciation		(63,420	)	(69,916	)	(81,452	)
Cost		171,094		179,546		218,669
		91,404		99,482		115,897
Less: Accumulated depreciation		(71,518	)	(76,182	)	(92,782	)
		99,576		103,364		125,887
Borrowing Costs	2
Cost		3,334		3,334		34,~~885~~061
Less: Accumulated amortization		(2,~~453~~562	)	(2,~~703~~729	)	(3,~~149~~324	)
		881		631		736
		772		605		737
Goodwill	10	9,383		9,383		10,931
Goodwill, resulting from consolidated subsidiaries	11	9,137		9,657		11,761
TOTAL ASSETS		~~214~~222,~~815~~393		~~231~~250,~~294~~918		~~269~~305,~~459~~593

Exchange rate used for the convenience translation of the ~~September~~June 30, ~~2003~~2004, Euro amounts: ~~U.S.$ 1.165 to EUR 1.00~~

~~The accompanying~~U.S.$ ~~notes~~1.2179 ~~are~~to anEUR ~~integral part of these consolidated balance sheets~~1.00

1The accompanying notes are an integral part of these consolidated balance sheets.

~~FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES~~1

~~CONSOLIDATED~~FAGE ~~BALANCE~~DAIRY ~~SHEETS~~INDUSTRY S.A. AND SUBSIDIARIES

ASCONSOLIDATED OFBALANCE ~~DECEMBER 31, 2002 AND SEPTEMBER 30, 2003~~SHEETS

~~(Amounts~~AS inOF ~~000’s~~DECEMBER of31, ~~Euro~~2003 ~~and~~AND ~~U.S. Dollars except per share~~JUNE ~~data~~30, )2004

				UNAUDITED
		December 31, 2002		September 30, 2003
	Notes	EUR		EUR		U.S.$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Trade accounts payable		48,211		41,533		48,386
Short-term borrowings	11	5,838		21,606		25,171
Due to related companies	6	7,850		9,519		11,090
Income taxes payable		6,512		3,145		3,664
Deferred income taxes		6,685		4,054		4,723
Other current liabilities	14	9,598		6,486		7,556
Total current liabilities		84,694		86,343		100,590
Long-Term Liabilities
Long-term debt, net of current maturities	12, 13	87,407		78,959		91,987
Staff retirement indemnities		1,401		1,517		1,767
Other long-term liabilities		3,079		2,555		2,977
Deferred income taxes		9,616		18,900		22,019
		101,503		101,931		118,750
Minority interests		52		29		34
Contingencies	15
Shareholders’ Equity
Share capital, nominal value EUR 2,94 each at December 31, 2002 and September 30, 2003, (9,610,400 shares authorised, issued and outstanding at December 31, 2002 and September 30, 2003, respectively)		28,254		28,254		32,916
Reversal of revaluation gains		(22,396	)	(22,396	)	(26,091	)
Retained earnings		23,078		36,666		42,716
Accumulated other comprehensive income		(370	)	467		544
		28,566		42,991		50,085
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		214,815		231,294		269,459

(Amounts in 000’s of Euro and U.S. Dollars except per share data )

Exchange rate used for the convenience translation of the September 30, 2003, Euro amounts: U.S.$ 1.165 to EUR 1.00

				Unaudited
	Notes	December 31, 2003		June 30, 2004
		EUR		EUR		U.S.$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Trade accounts payable		46,051		47,305		57,613
Short-term borrowings	12	8,514		27,808		33,867
Due to related companies	6	9,906		18,256		22,234
Income taxes payable		5,235		3,763		4,583
Deferred income taxes		3,448		4,675		5,694
Other current liabilities	14	8,166		9,232		11,244

Total current liabilities		81,320		111,039		135,235

Long-Term Liabilities
Long-term debt, net of current maturities	13	72,998		75,889		92,425
Staff retirement indemnities		1,773		1,704		2,075
Other long-term liabilities		2,555		2,031		2,474
Deferred income taxes		18,624		17,212		20,963
		95,950		96,836		117,937

Minority interests		37		3		3

Contingencies	15

Shareholders’ Equity
Share capital, nominal value EUR 2.94 each at December 31, 2003 and June 30, 2004, (9,610,400 shares authorised, issued and outstanding at December 31, 2003 and June 30, 2004, respectively)		28,254		28,254		34,411
Reversal of revaluation gains		(22,396	)	(22,396	)	(27,276	)
Retained earnings		38,863		37,671		45,879
Accumulated other comprehensive income		365		(489	)	(596	)
		45,086		43,040		52,418
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		222,393		250,918		305,593

~~The~~Exchange ~~accompanying~~rate ~~notes~~used ~~are~~for anthe convenience ~~integral~~translation ~~part~~ of ~~these consolidated~~the ~~balance~~June ~~sheets.~~30, 2004, Euro amounts:

2U.S.$ 1.2179 to EUR 1.00

The accompanying notes are an integral part of these consolidated balance sheets.

PART I

ITEM 1.b

FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ~~OPERATIONS~~INCOME

FOR THE ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2002~~2003 AND ~~2003~~2004

(Amounts in 000’s of Euro and U.S. Dollars, except share and per share data)

(UNAUDITED)

		2002		2003
	Notes	2003		2004
	Notes	EUR		EUR		U.S.$
		EUR		EUR		U.S.$
Net sales		~~251~~173,~~498~~175		~~266~~177,~~699~~199		~~310~~215,~~704~~811
Cost of sales		(~~155~~106,~~788~~934	)	(~~164~~109,~~983~~368	)	(~~192~~133,~~205~~200	)
Gross profit		9566,~~710~~241		~~101~~67,~~716~~831		~~118~~82,~~499~~611
Selling, general and administrative expenses		(6954,~~133~~661	)	(8258,~~476~~293	)	(9670,~~085~~995	)
Income from operations		2611,~~577~~580		199,~~240~~538		2211,~~414~~616
Interest expense	2, ~~11,~~ 12, 13	(74,~~871~~091	)	(63,~~141~~966	)	(74,~~154~~830	)
Foreign exchange gains (losses), net		127,~~028~~997		8(3,~~186~~027	)	9(3,~~537~~687	)
Losses on equity investee		(~~388~~98	)	(~~153~~231	)	(~~178~~281	)
Other income (expenses), net		~~613~~479		~~222~~322		~~258~~392
Income before income taxes and minority interests		3015,~~959~~867		212,~~354~~636		243,~~877~~210
Provision for income taxes		(107,~~616~~080	)	(~~7,789~~420	)	(~~9,074~~511	)
Income before minority interests		208,~~343~~787		132,~~565~~216		152,~~803~~699
Minority interests		~~(30~~7	)	23(158	)	27(192	)
NET INCOME		208,~~313~~794		132,~~588~~058		152,~~830~~507
Income per share, basic and diluted		20.1192		10.4121		10.6526
Weighted average number of shares, basic and diluted		9,610,400		9,610,400		9,610,400

Exchange rate used for the convenience translation of the ~~September~~June 30, ~~2003~~2004, Euro amounts: ~~U.S.$ 1.165 to EUR 1.00~~

U.S.$ 1.2179 to EUR 1.00

The accompanying notes are an integral part of these consolidated statements.

PART I

ITEM 1.c

FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ~~OPERATIONS~~INCOME

FOR THE THREE MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2002~~2003 AND ~~2003~~2004

(Amounts in 000’s of Euro and U.S. Dollars, except per share data)

(UNAUDITED)

		2002		2003
	Notes	2003		2004
	Notes	EUR		EUR		U.S.$
		EUR		EUR		U.S.$
Net sales		9193,~~906~~345		9395,~~524~~542		~~108~~116,~~955~~361
Cost of sales		(5758,~~812~~622	)	(5860,~~049~~039	)	(6773,~~627~~121	)
Gross profit		34,~~094~~723		35,~~475~~503		4143,~~328~~240
Selling, general and administrative expenses		(2331,~~559~~526	)	(2834,~~468~~185	)	(3341,~~165~~634	)
Income from operations		103,~~535~~197		71,~~007~~318		81,~~163~~606
Interest expense	2, ~~11,~~ 12, 13	(2,~~511~~050	)	(21,~~050~~979	)	(2,~~388~~411	)
Foreign exchange gains (losses), net		~~(142~~4,725	)	~~189~~314		~~220~~383
Gains (losses) on equity investee		~~(116~~63	)	(55136	)	(64166	)
Other income (expenses), net		37303		~~396~~143		~~461~~174
Income before income taxes and minority interests		7,803		5,487		6,392
Income (loss) before income taxes and minority interests		6,238		(340	)	(414	)
Provision for income taxes		(~~819~~3,696	)	~~(709~~639	)	~~(826~~778	)
Income before minority interests		62,~~984~~542		~~4,778~~299		~~5,566~~364
Minority interests		2411		16(151	)	19(184	)
NET INCOME		72,~~008~~553		~~4,794~~148		~~5,585~~180
Income per share, basic and diluted		0.7327		0.5002		0.5802
Weighted average number of shares, basic and diluted		9,610,400		9,610,400		9,610,400

Exchange rate used for ~~the~~ the convenience translation of the ~~September~~June 30, ~~2003~~2004, Euro amounts: ~~U.S.$ 1.165 to EUR 1.00~~

U.S.$ 1.2179 to EUR 1.00

The accompanying notes are an integral part of these statements.

PART I

ITEM 1.d

FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

FOR THE ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2003~~ 2004

(Amounts in 000’s of Euro, ~~and~~except ~~U.S.~~per ~~Dollars~~share data)

(UNAUDITED)

						RETAINED EARNINGS (DEFICIT)
	Comprehensive Income		Share Capital	Reversal of Revaluation Gains		Legal, Tax Free and Extraordinary Reserves	Accumulated Earnings / (Deficit)		Total		Accumulated Other Comprehensive Income		Grand Total
Balance, December 31, 2002			28,254	(22,396	)	23,931	(853	)	23,078		(370	)	28,566
Balance, December 31, 2003			28,254	(22,396	)	24,138	14,725		38,863		365		45,086
Net income for the period	132,~~588~~058		0	0		0	132,~~588~~058		132,~~588~~058		0		132,~~588~~058
Foreign currencies translation	20		0	0		0	0		0		20		20
Dividends declared from 2003 statutory profits (€ 0.34 per share)			0	0		0	(3,250	)	(3,250	)	0		(3,250	)
Unrealized gains on marketable securities	817		0	0		0	0		0		817		817
Foreign currencies translation	10		0	0		0	0		0		10		10
Comprehensive income	14,425
Unrealized losses on marketable securities, net of deferred income tax	(864	)	0	0		0	0		0		(864	)	(864	)
Balance, September 30, 2003			28,254	(22,396	)	23,931	12,735		36,666		467		42,991
Comprehensive income	1,204
Balance, June 30, 2004			28,254	(22,396	)	24,138	13,533		37,671		(489	)	43,040

The accompanying notes are an integral part of this consolidated statement.

PART I

ITEM 1.e

FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2002~~2003 AND ~~2003~~2004

(Amounts in 000’s of Euro and U.S. Dollars)

(UNAUDITED)

	2002		2003
	2003		2004
	EUR		EUR		U.S.$
Cash Flows from Operating Activities:
Net income	208,~~313~~794		132,~~588~~058		152,~~830~~506
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	54,~~991~~631		75,~~096~~085		86,~~267~~193
Deferred income taxes	54,~~654~~857		~~6,654~~(184	)	~~7,752~~(225	)
Provision for personnel retirement cost	~~216~~157		~~237~~189		~~276~~230
Provision for doubtful accounts receivable	~~482~~150		~~225~~79		~~262~~97
Minority interests	30(7	)	~~(23~~158	)	~~(27~~192	)
Gain from sale of property, plant & equipment	(~~111~~66	)	(7311	)	(8513	)
Unrealised foreign exchange (gains) losses	(108,~~549~~281	)	(83,~~602~~109	)	~~(10~~3,~~021~~787	)
Loss on investments	388		153		178
Losses on equity investee	98		231		281
(Increase) Decrease in:
Accounts receivable	(812,~~401~~042	)	(313,~~501~~706	)	(416,~~078~~693	)
Due from related companies	(65239	)	(~~426~~257	)	(~~496~~313	)
Inventories	(48,~~587~~481	)	(69,~~152~~413	)	(711,~~167~~464	)
Increase (Decrease) in:
Trade accounts payable	61,~~488~~774		(61,~~678~~254	)	(71,~~780~~527	)
Due to related companies	37,~~408~~132		18,~~669~~350		110,~~944~~169
Income taxes payable	~~3,667~~(22	)	(31,~~367~~471	)	(31,~~922~~792	)
Other current liabilities	(~~2,712~~836	)	(31,~~107~~066	)	(31,~~620~~298	)
Payment of staff retirement indemnities	(4273	)	(~~121~~258	)	(~~141~~314	)
(Increase) decrease in other non-current assets	~~(380~~563	)	~~534~~(85	)	~~622~~(104	)
Increase (decrease) in other long-term liabilities	~~519~~(524	)	(524	)	(~~610~~638	)
Net Cash from (used in) Operating Activities	20,309		(2,418	)	(2,817	)
Net Cash used in Operating Activities	(2,415	)	(4,330	)	(5,274	)
Cash Flows from Investing Activities:
Capital expenditure for property, plant & equipment	(10,~~048~~520	)	(159,~~445~~032	)	(1711,~~994~~000	)
Proceeds from sale of fixed assets	~~1,942~~164		~~593~~336		~~691~~409
Investments in and advances to affiliates	0		(~~176~~169	)	(~~205~~206	)
Net change in restricted cash	15,298		0		0
Net Cash used in Investing Activities	(10,356	)	(8,865	)	(10,797	)
Purchase of marketable securities	(14	)	0		0
Net Cash from (used in) Investing Activities	7,178		(15,028	)	(17,508	)
Cash Flows from Financing Activities:
Net change in short-term borrowings	~~(19~~10,~~028~~467	)	1518,~~767~~976		1823,~~369~~111
Repayment of long-term debt	(1,242	)	0		0
Dividends paid	0		(3,250	)	(3,958	)
Increase of share capital	37		0		0
Net Cash from Financing Activities	10,467		15,726		19,153
Net Cash from (used in) Financing Activities	(20,233	)	15,767		18,369
Effect of exchange rates changes on cash	(22	)	(30	)	(37	)
Effect of exchange rates changes on cash	(52	)	(6	)	(7	)
Net increase (decrease) in cash and cash equivalents	(2,326	)	2,501		3,046
Net increase (decrease) in cash and cash equivalents	7,202		(1,685	)	(1,963	)
Cash and cash equivalents at beginning of period	7,866		2,171		2,644
Cash and cash equivalents at beginning of period	2,831		7,866		9,164
Cash and cash equivalents at end of period	5,540		4,672		5,690
Cash and cash equivalents at end of period	10,033		6,181		7,201
Supplemental disclosures of Cash Flow Information :
Cash paid for :
- interest, net of amounts capitalized	103,~~071~~995		73,~~755~~546		94,~~034~~319
- income taxes	12,~~293~~245		41,~~501~~609		51,~~244~~960

Exchange rate used for the convenience translation of the ~~September~~June 30, ~~2003~~2004, Euro amounts: ~~U.S.$ 1.165 to EUR 1.00~~

U.S.$ 1.2179 to EUR 1.00

The accompanying notes are an integral part of these consolidated statements.

ITEM 1.f

		FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES
PART I
ITEM 1.f		NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		JUNE 30, 2004

~~FAGE~~(Amounts in ~~DAIRY~~all ~~INDUSTRY~~tables ~~S.A.~~and ~~AND~~notes are presented in thousands of Euro unless otherwise ~~SUBSIDIARIES~~stated)

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~(UNAUDITED)

~~SEPTEMBER~~BUSINESS ~~30, 2003~~INFORMATION:

Fage Dairy Industry S.A., a corporation organized under the laws of the Hellenic Republic (~~Amounts~~also inknown ~~all~~as Greece), ~~tables~~is ~~and~~the ~~notes~~successor ~~are~~to ~~presented~~a business founded in ~~thousands~~Athens in 1926 by the family of ~~Euro~~Mr. Athanassios Filippou, the father of the current shareholders, Messrs. Ioannis and Kyriakos Filippou. References to the “Company” or “Fage” include, unless the contents indicate otherwise, ~~stated)~~Fage Dairy Industry S.A. and its consolidated subsidiaries.

~~(UNAUDITED)~~Through its extensive distribution network, the Company sells a wide range of branded dairy products, including yogurt and dairy desserts, milk and milk cream and cheese. All operating activities are conducted in Greece and the Company’s products are sold under the FAGEâ trademark.

~~BUSINESS~~No single customer ~~INFORMATION:~~accounted for more than 10% of the consolidated net sales for the three and six months ended June 30, 2003 and 2004.

~~Fage~~The ~~Dairy~~accompanying unaudited ~~Industry~~financial ~~S.A.~~statements, a ~~corporation~~in ~~organized under~~ the ~~laws~~opinion of the ~~Hellenic~~management, ~~Republic~~reflect ~~(also known as~~all ~~Greece),~~necessary isadjustments ~~the~~(which ~~successor~~include toonly anormal ~~business~~recurring ~~founded~~adjustments) necessary infor ~~Athens~~a infair ~~1926~~presentation byof the ~~family of~~financial ~~Mr. Athanassios Filippou~~position, the ~~father~~results of operations ~~the~~and ~~current~~cash ~~shareholders,~~flows ~~Messrs. Ioannis~~for ~~and~~the ~~Kyriakos~~periods ~~Filippou~~presented. ~~References~~ Certain toreclassifications ~~the~~have ~~“Company”~~been ormade ~~“Fage”~~to June ~~include~~30, ~~unless~~2003 ~~the~~consolidated ~~context indicates~~financial ~~otherwise,~~statements ~~Fage~~to ~~Dairy~~conform ~~Industry~~to ~~S.A.~~the ~~and~~presentation in ~~its~~June 30, 2004 consolidated ~~subsidiaries~~ financial statements.

~~Through~~For ~~its~~a ~~extensive distribution network, the~~full ~~Company~~description ~~sells a wide range~~ of ~~branded~~accounting ~~dairy~~policies ~~products,~~see ~~including~~notes ~~yogurt~~to ~~and dairy~~financial ~~desserts,~~statements ~~milk~~for ~~and milk cream and cheese. All operating activities are~~the ~~conducted~~year inended ~~Greece~~December ~~and~~31, ~~the Company’s products are sold under the FAGEâ trademark~~2003.

~~No single customer~~1. RECENTLY ~~accounted~~ISSUED ~~for~~ACCOUNTING ~~more than 10% of the consolidated net sales for the three and nine months ended September 30, 2002 and 2003.~~STANDARDS:

~~The accompanying~~Recent ~~unaudited~~Accounting ~~financial~~Pronouncements: ~~statements,~~Recent inStatements ~~the opinion~~ of ~~the management, reflect all~~Financial ~~necessary~~Accounting ~~adjustments~~Standards ~~(which~~issued ~~include~~by ~~only normal recurring adjustments) necessary for a fair presentation of~~ the ~~financial~~Financial ~~position,~~Accounting ~~the~~Standards ~~results of~~Board ~~operations~~(“FASB”) ~~and~~are ~~cash~~summarized ~~flows~~as for the periods presented. Certain reclassifications have been made to September 30, 2002 consolidated financial statements to conform to the presentation in September 30, 2003 consolidated financial statements.follows:

~~For~~FIN 46, in 2003, the FASB issued Interpretation No. 46, as revised (“FIN 46”) “Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin No. 51”. FIN 46 introduces a ~~full~~variable ~~description~~interests model to determine control and consolidation of variable interest entities ~~accounting~~(“VIE”). A ~~policies~~VIE ~~see~~is ~~notes~~an entity that, by design, lacks sufficient equity or is structured such that the decision-making ability of its equity holders is limited. FIN 46 generally requires consolidation of a VIE by its primary beneficiary. A VIE’s primary beneficiary is the enterprise that, as a result of its interest in the VIE, absorbs a majority of the VIE’s expected losses, receives a majority of the VIE’s expected residual returns, or both. FIN 46 applies to ~~financial~~those ~~statements~~entities that are considered to be special purpose entities under previously existing U.S. GAAP for ~~the~~financial ~~year~~statement ~~ended~~reporting periods ending after December 3115, ~~2002~~2003, or may optionally be selectively applied to individual Vie’s effective July 1, 2003. For all remaining entities that are subject to FIN 46, the interpretation applies for financial statement reporting periods ending after March 15, 2004.

1The Company is not involved with any entities in which it has ownership or other financial interests to which the provisions of FIN 46 would apply. ~~RECENTLY~~ Therefore, the adoption of FIN 46 is not ~~ISSUED~~expected ~~ACCOUNTING~~to ~~STANDARDS:~~have a material effect on the Company’s results of operations or financial position.

~~Recent Accounting Pronouncements: Recent Statements of Financial Accounting Standards issued by the Financial Accounting Standards Board (“FASB”) are summarized as follows:~~7

~~(i) SFAS No~~2. ~~143, “Accounting for Asset~~ DEFERRED Retirement Obligations”, relates to financial accounting and reporting requirements associated with the retirement of tangible long-lived assets and the associated asset retirement costs. The statement is effective for financial statements issued for fiscal years beginning after June 15, 2002. The Company has not determined the impact, if any, that the adoption of this statement will have on the Company’s results of operations or financial position.CHARGES:

~~(ii)~~The ~~SFAS~~expenses ~~No.~~incurred ~~145,~~in connection Inwith ~~April 2002,~~ the ~~FASB issued~~issuance ~~SFAS~~and ~~No.~~distribution ~~145,~~of ~~“Rescission~~the ofSenior ~~FASB~~Notes ~~Statements~~issued ~~No.~~on February 411, 441997, ~~Amendment~~(see ~~of FASB~~Note ~~Statement No.~~ 13), ~~and~~including ~~Technical~~underwriting ~~Corrections”~~commissions, ~~which is effective for~~were ~~fiscal~~capitalized ~~years~~as ~~beginning~~deferred ~~after~~charges ~~May 15, 2002. This statement requires most gains~~ and ~~losses~~are ~~from~~being ~~extinguishment~~amortized ~~of debt~~on ~~to be presented as~~ a ~~gain or loss from continuing operations rather than~~straight-line asbasis anover ~~extraordinary~~the ~~item. Accounting~~term ~~Principles Board~~of ~~(“APB”)~~the ~~Opinion No~~Notes. ~~30,~~Amortization ~~“Reporting~~for the ~~Results~~three ofand ~~Operations,~~six ~~Reporting~~months ~~Effects~~ended ofJune ~~Disposal of a Segment of a Business~~30, ~~and~~2003 ~~Extraordinary, Unusual~~ and ~~Infrequently~~ ~~Occurring~~2004 ~~Events~~totaled ~~and~~€ ~~Transactions”~~83.5 ~~will now be used to classify those gains~~ and ~~losses. This~~€ ~~Statement also~~167, ~~amends FASB No. 13~~respectively, ~~which~~for ~~requires that certain capital lease~~each ~~modifications~~period beand ~~treated~~is asincluded ain ~~sale-leaseback~~interest ~~transaction.~~expense ~~The~~in ~~Company adopted SFAS No. 145 with respect to~~ the ~~presentation~~accompanying ~~of gains or losses from~~consolidated ~~continuing~~statements ~~operations rather than as an extraordinary item. The adoption~~ of ~~SFAS~~ Noincome. ~~145 had no effect on the Company’s consolidated financial statements.~~

~~(iii) SFAS No~~3. TRANSLATIONS ~~146,~~OF InEURO ~~July~~AMOUNTS ~~2002,~~INTO ~~the FASB issued SFAS No~~U. ~~146, “Accounting for Costs Associated with Exit or Disposal Activities”~~S. ~~SFAS~~ No. 146 replaces EITF Issue No. 94-3, “Liability Recognition for Certain Employee Termination Benefits and Other Costs to exit an Activity (including Certain Costs Incurred in a Restructuring”, and changes the timing of recognition for certain exit costs associated with restructuring activities. Under SFAS No. 146 certain exit costs would be recognized over the period in which the restructuring activities occur. Currently, exit costs are recognized when the CompanyDOLLARS:

The Company’s measurement and reporting currency, effective January 1, 2003, is the Euro. The translations of the Euro amounts into U.S. Dollars at the rate of US $ 1.2179 to € 1.00 are included solely for the convenience of the reader. This U.S. $ convenience exchange rate is computed based on the noon buying rate in New York City for cable transfers in Euro, as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2004. The convenience translation should not be construed as representations that the Euro amounts have been, could have been, or could in the future be, converted into U.S. Dollars at this or any other rate of exchange. Included in foreign exchange gains (losses), net, for the three and six months ended June 30, 2003 and 2004 is an amount of € 7,079 and € (2,791), respectively, relating to unrealized foreign exchange gains (losses) of the Senior Notes referred to in Note 13. Included in foreign exchange gains (losses), net, for the three months ended June 30, 2003 and 2004 is an amount of € 3,856 and € (419), respectively, relating to unrealized foreign exchange gains (losses) of the Senior Notes referred to in Note 13.

~~commits to a restructuring plan~~4. ~~SFAS No. 146 is~~ MARKETABLE applied prospectively to exit or disposal activities initiated after December 31, 2002, though early adoption is allowed. During 2003, the Company adopted SFAS No. 146 for exit or disposal activities. The adoption of SFAS No. 146 had no effect on the Company’s consolidated financial statements.SECURITIES:

~~(iv)~~Equity ~~FASB~~securities ~~Interpretation~~at ~~No.~~December 4531, ~~(“FIN~~2003 Noand ~~45”)~~June 30, ~~In November 2002~~2004, ~~the~~include: ~~FASB~~(a) ~~issued~~€ ~~FIN No. 45~~1, ~~“Guarantor’s~~185 ~~Accounting~~ and ~~Disclosure~~€ ~~Requirements for Guarantees~~901, ~~Including~~respectively, ~~Indirect~~representing ~~Guarantees~~the ofmarket ~~Indebtedness~~value, as of ~~Other~~those ~~“. FIN~~dates, ~~No.~~of 45139,831 ~~requires~~preferred ~~that~~and 212,849 ~~upon~~common ~~issuance~~shares, of aVis ~~guarantee,~~S.A. ~~the guarantor must recognize~~ (a ~~liability~~related ~~for~~company ~~the~~), ~~fair value of the obligation it~~representing ~~assumes~~approximately ~~under the guarantee~~7. ~~The disclosure~~1% ~~provisions~~ of ~~FIN~~Vis NoS.A.’s 45authorized, ~~are~~issued ~~effective~~and ~~for~~outstanding ~~financial~~shares ~~statements of~~as ~~annual~~of ~~periods~~those ~~that~~dates, ~~end~~and ~~after~~(b) ~~December~~€ 152,829 ~~2002. The~~and ~~provisions~~€ ~~for~~1,784, ~~initial~~respectively, ~~recognition~~representing ~~and measurement are~~the ~~affective~~market onvalue, aas ~~prospective~~of ~~basis~~those ~~for~~dates, ~~guarantees~~of ~~that are issued or modified after December 31~~420,000 ~~2002. The~~shares ~~adoption~~ of ~~FIN~~Elbisco NoHoldings S.A. ~~45 is not~~(a ~~expected~~related tocompany), ~~have~~representing aapproximately ~~significant~~0.9%, ~~effect~~of onElbisco ~~the~~Holdings ~~Company~~S.A.’s authorized, ~~consolidated~~issued ~~financial statements~~and outstanding shares.

2The above-mentioned investments have been classified as available for sale and are carried at their fair market value with the difference in the market values reflected in shareholders’ equity. ~~DEFERRED~~ At December 31, ~~CHARGES:~~2003 and June 30, 2004, the cost of these investments in equity securities was € 3,521.

~~The~~There ~~expenses~~were ~~incurred~~no ~~in connection~~sales ~~with the issuance and distribution~~ of ~~the Senior Notes issued on~~ ~~February~~equity ~~11,~~securities ~~1997, (see Note 13), including underwriting commissions, were capitalized as deferred charges and are being amortized on a straight-line basis over the term of the Notes. Amortization~~ for the ~~nine~~six months ended ~~September~~ June 30, ~~2002 and~~ 2003 ~~totaled € 250 for each period~~ and ~~are included in interest expense in the accompanying consolidated statements of operations~~2004.

~~3. TRANSLATIONS~~The change in net OFunrealized ~~EURO~~holding ~~AMOUNTS~~gain ~~INTO~~(loss) Uon available for sale equity securities for the six months ended June 30, 2003 and 2004 totaled € 48 and € (1,329), respectively.S. ~~DOLLARS:~~The accumulated net unrealized holding loss included as a component of other comprehensive income in shareholders’ equity at June 30, 2004 amounted to € 864.

~~The Company’s measurement and reporting currency, effective January 1, 2002, is the Euro~~5. ~~The~~ ACCOUNTS translations of the Euro amounts into U.S. Dollars at the rate of US $ 1.165 to € 1.00 are included solely for the convenience of the reader. This U.S. $ convenience exchange rate is computed based on the noon buying rate in New York City for cable transfers in Euro, as certified for customs purposes by the Federal Reserve Bank of New York on September 30, 2003. The convenience translation should not be construed as representations that the Euro amounts have been, could have been, or could in the future be, converted into U.S. Dollars at this or any other rate of exchange. Included in foreign exchange gains (losses), net, for the nine months ended September 30, 2002 and 2003 is an amount of € 10,114 and € 8,603 respectively, relating to unrealized foreign exchange gains (losses) of the Senior Notes referred to in Note 13. Included in foreign exchange gains (losses), net, for the three months ended September 30, 2002 and 2003 is an amount of € (423) and € 1,524, respectively, relating to unrealized foreign exchange gains (losses) of the Senior Notes referred to in Note 13.RECEIVABLE:

~~4. MARKETABLE SECURITIES~~Accounts receivable are analyzed as follows:

Equity securities at December 31, 2002 and September 30, 2003, include: (a) € 1,150 and € 1,216 respectively, representing the market value, as of those dates, of 139,831 preferred and 212,849 common shares, of Vis S.A. (a related company ) representing approximately 7.1% of Vis S.A.’s authorized, issued and outstanding shares as of those dates, and (b) € 1,966 and € 2,717 representing the market value, as of those dates, of 420,000 shares of Hellenic Biscuit Company (a related company) representing approximately 0.9%, of Hellenic Biscuit Company’s authorized, issued and outstanding shares.8

The above-mentioned investments have been classified as available for sale and are carried at their fair market value with the difference in the market values reflected in shareholders’ equity. At December 31, 2002 and September 30, 2003, the cost of these investments in equity securities was € 3,521.

	December 31, 2003		June 30, 2004
			(Unaudited)
Trade:
• In Euro	67,912		80,514
• In foreign currencies	2,896		4,320
	70,808		84,834
• Less: allowance for doubtful accounts	(3,580	)	(3,605	)
	67,228		81,229
Other:
• Value added tax	5,001		6,069
• Prepaid taxes, other than income taxes	401		396
• Prepaid expenses	527		188
• Custom brokers	119		119
•Advances to suppliers	4,060		4,137
• Various debtors	2,147		1,026
	12,255		11,935

• Less: allowance for doubtful accounts	(4,332	)	(4,386	)
	7,923		7,549
	75,151		88,778

~~There~~The ~~were~~provision nofor ~~sales~~doubtful ofaccounts ~~equity securities~~ for the ~~nine~~six months ended ~~September~~June 30, ~~2002~~2003 and 2004 totaled € 150 ~~2003~~and € 79, respectively.

The ~~change~~fair invalue ~~net~~of ~~unrealized~~accounts ~~holding~~receivable ~~gain~~approximates ~~(loss) on available for sale equity securities for~~ the ~~nine~~ ~~months~~above-recorded ~~ended September 30, 2002 and 2003 totaled € (619) and € 817, respectively~~values.

8There was no write-off of accounts receivable or other debts during the first six months of 2003 and 2004.

5It is the Company’s policy to attach liens against the property of most of its delinquent customers. ~~ACCOUNTS~~ Because of the prolonged and complex legal procedures in Greece, it ~~RECEIVABLE:~~is not unusual for the collection process to take three to five years before a case is finalized.

~~Accounts receivable are~~6. DUE ~~analyzed~~FROM as(TO) ~~follows~~RELATED COMPANIES:

	December 31, 2002		September 30, 2003
			(Unaudited)
Trade:
- In Euro	64,882		67,010
- In foreign currencies	3,197		4,102
	68,079		71,112
- Less: allowance for doubtful accounts	(3,292	)	(3,424	)
	64,787		67,688
Other:
- Value added tax	4,486		5,143
- Prepaid taxes, other than income taxes	1,022		376
- Prepaid expenses	590		358
- Custom brokers	181		217
- Advances to suppliers	4,855		5,956
- Various debtors	1,250		978
	12,384		13,028
- Less: allowance for doubtful accounts	(4,161	)	(4,254	)
	8,223		8,774
	73,010		76,462

Fage purchases goods and services from and makes sales of goods to certain related companies in the ordinary course of business. Such related companies consist of affiliates or companies, which have common ownership and/or management with Fage.

~~The~~Account ~~provision~~balances ~~for doubtful accounts for the nine~~with ~~months~~related ~~ended~~companies ~~September~~are ~~30,~~as ~~2002 and 2003 totaled € 482 and € 225, respectively.~~follows:

The fair value of accounts receivable approximates the above recorded values.

	December 31, 2003	June 30, 2004
		(Unaudited)
Due from:
• Ioannis Nikolou ULP	1,259	1,629
• Sideris & Co	367	367
• Bizios S.A.	112	—
•Vis S.A.	1	—
	1,739	1,996
Due to:
• Aspect S.A.	3,163	9,088
• Mornos S.A.	3,721	4,221
• Iofil S.A.	1,976	1,791
• Palace S.A.	372	—
• Agan S.A.	—	325
• Vihep S.A.	363	495
• Vis S.A.	—	132
• Evga S.A.	292	2,128
• Bizios S.A.	—	76
• G.S. Kostakopoulos & Associates	19	—
	9,906	18,256

~~There was no write-off of accounts receivable or other debts during the first nine months of 2002 and 2003.~~9

ItTransactions iswith ~~the Company’s policy to attach liens against the property of most~~related ofcompanies ~~its delinquent customers. Because of~~ for the ~~prolonged~~six ~~and~~months ~~complex legal~~ended ~~procedures~~June ~~in Greece~~30, it2003 isand ~~not~~2004 ~~unusual~~are ~~for~~analyzed ~~the~~as ~~collection process to take three to five years before a case is finalized.~~follows:

6. DUE FROM (TO) RELATED COMPANIES:

	Purchases from related parties			Sales to related parties
	June 30, 2003	June 30, 2004		June 30, 2003	June 30, 2004
			(Unaudited)
Inventories, materials and supplies	20,743	22,187		2,090	2,535
Advertising and media	10,043	14,825		—	—
Commercial services	3,581	5,696		—	—
	34,367	42,708		2,090	2,535

~~Fage~~Purchases ~~purchases~~of ~~goods~~inventories, materials and ~~services~~ supplies from ~~and~~related ~~makes~~parties, ~~sales~~represented ofapproximately ~~goods~~21% toand ~~certain~~23% ~~related~~of ~~companies~~Fage’s ~~in the~~total ~~ordinary~~purchases ~~course~~ of ~~business.~~inventories, ~~Such~~materials ~~related~~and ~~companies~~supplies ~~consist~~for ofthe ~~affiliates~~six ~~or companies,~~months ~~which~~ended ~~have~~June ~~common~~30, ~~ownership~~2003 and~~/or~~ 2004, ~~management with Fage~~respectively.

~~Account~~Advertising, ~~balances~~media ~~with~~buying and commercial services from related ~~companies~~parties ~~are~~represented asapproximately ~~follows:~~82% and 83% of Fage’s total advertising and commercial costs for the six months ended June 30, 2003 and 2004, respectively.

	December 31, 2002	September 30, 2003
		(Unaudited)
Due from:
- Ioannis Nikolou ULP	1,214	1,641
- Sideris & Co	367	367
-Vis S.A.	6	5
	1,587	2,013
Due to:
- Aspect S.A.	3,669	2,452
- Mornos S.A.	2,263	2,864
- Iofil S.A.	729	1,531
- Palace S.A.	433	372
- Vihep S.A.	329	326
- Evga S.A.	168	1,370
- Bizios S.A.	259	604
	7,850	9,519

7. INVENTORIES:

9Inventories are analyzed as follows:

Transactions with related companies for the nine months ended September 30, 2002 and 2003 are analyzed as follows:

	December 31, 2003	June 30, 2004
		(Unaudited)
Merchandise	1,134	1,973
Finished and semi-finished products	10,571	17,688
Raw materials and supplies	8,510	10,004
Advance payments to suppliers for materials and supplies	6,385	6,348

	26,600	36,013

	Purchases from related parties		Sales to related parties
	September 30, 2002	September 30, 2003	September 30, 2002	September 30, 2003
	(Unaudited)
Inventories, materials and supplies	27,398	32,740	3,190	3,362
Advertising and media	9,952	12,798	—	—
Commercial services	3,526	5,970	—	—
	40,876	51,508	3,190	3,362

8. INVESTMENTS IN AND ADVANCES TO AFFILIATES:

~~Purchases~~The ~~of inventories, materials and supplies from related parties, represented approximately 20% and 23% of Fage~~Company’s ~~total~~investments ~~purchases~~are ofanalyzed ~~inventories,~~as ~~materials and supplies for the nine months ended September 30, 2002 and 2003, respectively.~~follows:

Advertising, media buying and commercial services from related parties represented approximately 71% and 82% of Fage’s total advertising and commercial costs for the nine months ended September 30, 2002 and 2003, respectively.

	December 31, 2003	June 30, 2004
		(Unaudited)
Equity participation:

• Bizios S.A.	767	597
• Sideris Sp. Th. & Co	—	—

	767	597

~~7. INVENTORIES:~~10

~~Inventories~~(i) Bizios ~~are~~S.A. ~~analyzed~~is a as45% ~~follows:~~owned cheese producer accounted for under the equity method.

	December 31, 2002	September 30, 2003
		(Unaudited)
Merchandise	1,561	1,729
Finished and semi-finished products	8,898	12,179
Raw materials and supplies	7,566	9,411
Advance payments to suppliers for materials and supplies	5,457	6,315
	23,482	29,634

(ii) As a result of an unfavourable court decision, the Company was obligated to acquire a 33.33% interest in Sideris Sp.Th.& Co., a dormant cheese producing company, which the Company had shown an interest in acquiring back in 1990. The acquisition cost amounted to € 211. Given that Sideris Sp. Th. & Co. is dormant, has a capital deficiency as of June 30, 2004 and there are no other identifiable assets, the shareholders have decided to liquidate the entity. In this respect, the Company recognized an impairment loss of € 211, which has been included in losses on equity investee in 2003.

89. INVESTMENTS IN ~~AND~~EQUITY ~~ADVANCES~~SECURITIES TO( ~~AFFILIATES~~AVAILABLE-FOR-SALE):

The Company’s investments are analyzed as follows:

	December 31, 2002	September 30, 2003
	December 31, 2003	June 30, 2004
		(Unaudited)
Equity participation:
- Tyras S.A.	1,109	1,109
• Tyras S.A	1,109	1,109
- Bizios S.A.	1,236	1,083
• Packing Hellas Development S.A.	88	88
- Packing Hellas Development S.A.	88	88
	1,197	1,197
- Sideris Sp. Th. & Co	—	176
	2,433	2,456

(i) Tyras S.A. is a cheese producer, in which the Company has a 5.4.42% participation interest. The investment in Tyras is accounted for at cost.

(ii) ~~Bizios~~ Packing Hellas Development S.A. is a 45packing material manufacturer in which the Company has a 8.82% ~~owned~~participation ~~cheese~~interest. ~~producer~~The investment ~~accounted~~in ~~for~~Packing ~~under~~Hellas ~~the~~Development ~~equity~~S.A. ~~method~~is accounted for at cost.

10These investments are classified as non-current assets as management intends to hold these investments for a period greater than one year.

~~(iii)~~10. ~~Packing~~OTHER ~~Hellas Development~~NON-CURRENT ~~S.A. is a packing material manufacturer in which the Company has a 8.82% participation interest.~~ASSETS:

~~(iv) During~~Other ~~2003 the Company acquired a 33.33% interest in Sideris Sp. Th. & Co, a~~ non-current ~~operating cheese~~assets ~~company,~~are byanalyzed ~~capitalizing~~as ~~its unpaid debt of € 176.~~follows:

The Company’s investments in Tyras S.A. , Packing Hellas Development S.A. and Sideris Sp. Th. & Co are accounted for at cost, while its investment in Bizios S.A. is accounted for under the equity method. In this respect, losses of € 388 and € 153 have been recognized in the accompanying consolidated statements of operations for the nine months ended September 30, 2002 and 2003, respectively.

	December 31, 2003		June 30, 2004
			(Unaudited)
Long-term notes receivable	1,724		1,944
Less: current maturities, included in trade accounts receivable	(845	)	(975	)
	879		969
Trademarks, net of amortization	59		48
Utility deposits	195		197
Other	136		140
	1,269		1,354

911. ~~OTHER~~ GOODWILL, RESULTING ~~NON-CURRENT~~FROM ~~ASSETS~~CONSOLIDATED SUBSIDIARIES:

~~Other~~Goodwill ~~non-current~~reflected ~~assets~~in the ~~are~~accompanying consolidated balance sheets is analyzed as follows:

	December 31, 2002		September 30, 2003
			(Unaudited)
Long-term notes receivable	1,968		1,751
Less: current maturities, included in trade accounts receivable	(731	)	(1,067	)
	1,237		684
Trademarks, net of amortization	81		62
Utility deposits	264		286
Other	71		87
	1,653		1,119

10. GOODWILL:

	December 31, 2003	June 30, 2004
		(Unaudited)
Foods Hellas S.A.	1,755	1,755
Pindos S.A.	374	374
Voras S.A.	2,250	2,250
Xylouris S.A.	964	1,328
Fage Italia S.R.L.	180	336
Tamyna S.A.	1,394	1,394
Agroktima S.A.	134	134
Iliator S.A.	31	31
Zagas S.A.	2,055	2,055
	9,137	9,657

~~Goodwill~~Foods Hellas ~~reflected~~S.A.: Foods Hellas inis owned 99.38% by Fage and the balance of 0.62% is owned in equal ~~accompanying~~shares ~~consolidated~~by ~~balance~~the ~~sheets~~two shareholders of Fage. Foods Hellas is ~~analyzed~~a asdistribution ~~follows:~~company with a network that covers Northern Greece.

	December 31, 2002	September 30, 2003
		(Unaudited)
Food Hellas S.A.	1,755	1,755
Pindos S.A.	374	374
Voras S.A.	2,496	2,496
Xylouris S.A.	964	964
Ellenica S.R.L.	180	180
Tamyna S.A.	1,394	1,394
Agroktima S.A.	134	134
Iliator S.A.	31	31
Zagas S.A.	2,055	2,055
	9,383	9,383

Fage acquired its participating interest in Foods Hellas in three tranches. The first (46.9%) was acquired in 1990 for a consideration of € 1,174 from a third party who had previously acquired the shares from Fage’s present shareholders. The second tranche (37.5%) was acquired in 1992 and the third tranche (14.98%) was acquired in 2001 from Fage’s present shareholders. Since January 1, 1998, the distribution network of Foods Hellas has been operated under the name of Fage.

~~Foods Hellas~~ Pindos S.A.: ~~Foods~~ ~~Hellas~~Fage isacquired ~~owned~~100% 99of Pindos S.38A., a cheese producer in Ioannina, in seven tranches (51% byin ~~Fage~~1993, ~~and~~19.6% ~~the balance~~in of1994, 011.622% isin 1997, ~~owned~~12.09% in ~~equal~~1998, ~~shares~~2.22% byin ~~the~~1999, ~~two~~1.37% ~~shareholders~~in of2001, ~~Fage~~and 2. ~~Foods~~52% ~~Hellas~~in is2002) for a total ~~distribution~~consideration ~~company~~of ~~with a~~€ ~~network~~8,359. ~~that~~During ~~covers~~2002 ~~Northern~~Pindos ~~Greece~~S.A. merged into Fage Dairy Industry S.A.

Voras S.A.: Fage acquired ~~its participating~~100% ~~interest~~of Voras S.A. in ~~Foods~~four ~~Hellas~~tranches (45% in ~~three~~1996, ~~tranches. The~~25% ~~first~~in ~~(46~~1997, 5.95%) ~~was~~in ~~acquired~~1998 and 24.5% in ~~1990~~2002) for a total consideration of € 18,~~174~~499. ~~from~~As aof ~~third~~December ~~party~~31, ~~who~~2002, ~~had~~all ~~previously~~assets ~~acquired~~of ~~the shares~~Voras ~~from Fage’s present shareholders~~S. A. ~~The~~have ~~second~~been ~~tranche~~transferred ~~(37.5%)~~to ~~was~~Fage ~~acquired~~Dairy inIndustry ~~1992~~S.A., and ~~the~~Voras ~~third tranche (14~~S.~~98%)~~A. ~~was~~is ~~acquired~~ in ~~2001 in each case, from Fage’s present shareholders. Since January 1, 1998,~~ the ~~distribution network of Foods Hellas has been~~ ~~operated~~process ~~under the name~~ of ~~Fage~~being liquidated.

11Xylouris S.A.: Fage acquired its participating interest 99.50% in Xylouris S.A. in six tranches (35% in 1995, 12% in 1996, 4% in 1997, 17% in 2002, 3.75% in 2003 and 27.75% in 2004) for a total consideration of € 2,024. Additionally in 2004, Foods Hellas S.A. acquired a 0.50% interest in Xylouris S.A. for an amount of € 7. Therefore, Fage obtained an additional (indirect) 0.497% interest in Xylouris S.A. and, as of June 30, 2004, holds 99.997% of the company’s outstanding shares. Xylouris is a cheese producer in Crete.

~~Pindos~~Fage Italia S.Ar.l.: Fage Italia ~~acquired~~S.r.l. ~~100~~is a 99.999% ofowned Italian distribution company. Fage acquired its participating interest in ~~Pindos~~Fage Italia S.Ar.l. in ~~seven~~two tranches (5188.875% in 1993, 19and 11.6011% in ~~1994,~~2004) 11for a total consideration of € 645.2% Additionally, in ~~1997~~2004, Foods Hellas S.A. acquired 12a 0.09114% interest in ~~1998,~~Fage Italia for an amount of € 2.~~22%~~ ~~in 1999~~Therefore, ~~1.37%~~Fage inobtained ~~2001~~an ~~and~~additional (indirect) 20.52113% interest in ~~2002)~~Fage ~~for~~Italia aand, ~~total consideration~~as of €June 830,~~359. Pindos~~ ~~S.A.~~2004, holds is99.999% aof ~~cheese~~the ~~producer~~company’s inoutstanding ~~Ioannina~~shares.

InTamyna ~~September 1999 Foods Hellas~~ S.A.: Fage acquired ~~a 3.89~~100% ~~interest~~of Tamyna ~~in Pindos~~ S.A., ~~for~~a ancheese ~~amount~~producer ofin ~~€ 440. During 2001~~Aliveri, ~~Fage increased its participation~~ in ~~Pindos~~five ~~S.A.~~tranches ~~by 1~~(42.373% ~~through an increase~~ in ~~share capital of Pindos S~~1996, 4.A.7% ~~of € 2,641~~ in ~~which Food Hellas did not participate and as a result~~1997, ~~its interest~~25.49% in ~~Pindos~~2000, S26.~~A. was reduced to 2.52~~93%~~. Additionally,~~ in ~~September~~2001 ~~2002~~and ~~Fage purchased from Foods Hellas S~~0.~~A. its participation of 2.52~~58% in ~~Pindos~~2002) ~~S.A.~~ for a total consideration of € ~~207~~4,845. ~~Pindos~~During 2002, Tamyna S.A. merged into Fage Dairy Industry S.A. ~~during 2002.~~

~~Voras~~Agroktima S.A.: Fage acquired ~~100% of~~its ~~Voras~~participating ~~S.A.~~interest inof ~~four tranches (45~~99.33% in ~~1996,~~Agroktima ~~25%~~ in ~~1997,~~two 5tranches (33.524% in 1998 and 2466.509% in ~~2002~~2000) for a total consideration of € 81,~~499~~573. Additionally, ~~Voras~~in 2000, Foods Hellas S.A. acquired is a ~~milk~~0.666% ~~producer~~interest in ~~Amintaio.~~ AsAgroktima for an amount of ~~December~~€ 3112. Therefore, ~~2002,~~Fage ~~all~~obtained ~~assets~~an ofadditional (indirect) ~~Voras S~~0.A.57% ~~have~~interest ~~been transferred~~in toAgroktima ~~Fage~~and, ~~Dairy~~as ~~Industry~~of ~~S.A.~~June 30, ~~and~~2004, ~~Voras~~holds S99.A996% of the company’s outstanding shares. Agroktima is inan ~~the~~agricultural ~~process~~and ~~of being~~farm ~~liquidated~~development company.

~~Xylouris~~Iliator S.A.: ~~Fage~~The ~~acquired~~Company ~~its~~has ~~participating~~a participation interest 68of 97% in ~~Xylouris~~Iliator S.A. ~~in four tranches (35% in 1995~~, ~~12% in 1996, 4% in 1997 and 17% in 2002) for~~ a ~~total~~construction ~~consideration of € 1,614~~company. ~~Additionally, during the third quarter of 2003 the Company acquired an interest of 3.75% for an amount of € 46. Xylouris is a cheese producer in Crete.~~

~~Ellenika~~Zagas S.RA.L.: ~~Ellenika~~Zagas S.A. is a ~~88.87%~~cheese ~~owned~~producer ~~Italian~~in ~~distribution company~~Agrinio. Fage acquired its participating interest inof ~~Ellenika~~98% inon ~~1993~~January 19, 2001, for a consideration of € 3,020. Additionally, ~~457~~in 2001 Foods Hellas S.A. acquired a 2% interest in

Tamyna S.A.: Fage acquired 100% of Tamyna S.A. in five tranches (42.3% in 1996, 4.7% in 1997, 25.49% in 2000, 26.93% in 2001 and 0.58% in 2002) for a total consideration of € 4,845. Tamyna is a cheese producer in Aliveri. Tamyna S.A. merged into Fage Dairy Industry S.A. during 2002.12

~~Agroktima~~Zagas S.A.~~: Fage~~ ~~acquired its participating interest of 99.33% in Agroktima in two tranches (33.24% in 1998 and 66.09% in 2000)~~ for ~~a total consideration of € 1,573. Additionally, in 2000, Foods Hellas S.A. acquired a 0.666% interest in Agroktima for~~ an amount of € 1262. Therefore, Fage obtained an additional (indirect) 01.57988% interest in ~~Agroktima~~ Zagas S.A. and, ~~from~~as ~~December~~of 31June 30, ~~2002~~2004, holds 99.~~996~~988% of the company’s outstanding shares. ~~Agroktima is an agricultural and farm development company.~~

~~Iliator S~~12.~~A.: The Company has a~~ SHORT-TERM ~~participation interest of 97% in Iliator S.A., a construction company.~~BORROWINGS:

~~Zagas~~Short-term ~~S.A.:~~borrowings ~~Zagas S.A. is a cheese~~are ~~producer~~draw-downs inunder ~~Agrinio. Fage~~various ~~acquired~~lines ~~its participating interest~~ of ~~98%~~credit onmaintained ~~January~~by ~~19,~~the ~~2001,~~Company ~~for~~with ~~a consideration of €~~several ~~3,020~~banks. ~~Additionally,~~The inaggregate ~~2001 Foods Hellas S.A. acquired a 2% interest in Zagas S.A. for an~~ amount of ~~€ 62. Therefore, Fage obtained an additional~~available ~~(indirect)~~lines ~~1.988%~~of ~~interest~~credit inwas ~~Zagas S.A. and~~€ 49,877 ~~from~~at December 31, ~~2002,~~2003 ~~holds 99.988%~~and ofJune ~~the~~30, ~~company’s~~2004, ~~outstanding shares. The results~~ of ~~this~~ ~~investment~~which ~~have~~approximately ~~been~~€ 41,363 ~~included~~and in€ ~~the~~22,069 ~~Company’s~~were ~~consolidated~~unused ~~results~~as of ~~operations~~ ~~from~~ the ~~date of acquisition.~~ above ~~The purchase of Zagas S~~dates.~~A. was accounted for under the purchase method of accounting.~~

~~11. SHORT~~Short-~~TERM~~term borrowings are ~~BORROWINGS:~~denominated in Japanese Yen and Euros.

~~Short-term~~The ~~borrowings~~weighted ~~are draw-downs under various~~average ~~lines~~interest ofrates ~~credit~~on ~~maintained~~short-term byborrowings ~~the~~as ~~Company~~of ~~with~~December ~~several~~31, ~~banks. The~~2003 ~~aggregate~~and ~~amount~~June ~~of available lines of~~30, ~~credit~~2004, ~~was~~were ~~€ 38,262~~2.07% and €2.10% ~~38,532 at~~respectively ~~December~~for ~~31,~~Japanese ~~2002~~Yen and ~~September~~as ~~30,~~of ~~2003,~~June ~~respectively~~30, ~~of which~~ ~~approximately~~2004 ~~€ 32,424~~the ~~and~~weighted €average ~~16,926,~~interest ~~were~~rate ~~unused~~was as7.54% offor ~~the above dates~~Euros.

~~Short~~Interest on short-term borrowings ~~are denominated~~for inthe ~~Japanese~~six ~~Yen~~months ended June 30, 2003 and ~~are~~2004, ~~secured~~totaled by€ 131 and € 276, respectively, and for the ~~corporate~~three ~~guarantee~~months ofended ~~Fage~~June 30, 2003 and 2004 ~~Dairy~~totaled ~~Industry~~€ S81 and € 162, respectively and are included in interest expense in the accompanying consolidated statements of income.A.

~~The weighted average~~13. SENIOR ~~interest~~NOTES ~~rates~~DUE ~~on short-term borrowings as of December 31, 2002 and September 30, 2003, were as follows~~2007:

Currency	December 31, 2002		September 30, 2003
			(Unaudited)
Japanese Yen	2.48	%	2.09	%
Euro	—		4.38	%

In February 1997, the Company completed the issuance of debt securities (Senior Notes) in the United States. The net proceeds of the offering of U.S.$ 114.6 million were used to repay outstanding obligations and for general working capital.

12The Senior Notes issued at an aggregate face amount of U.S.$ 120 million, with maturity date on February 1, 2007, bear interest at a rate of 9% per annum, payable semi-annually on each February 1 and August 1. The Senior Notes are redeemable in whole or in part, at the option of the Company at any time on or after February 1, 2002.

~~Interest~~During on1999 ~~short-term borrowings for the nine months ended September 30, 2002~~ and ~~2003,~~2000 ~~totaled € 848~~the ~~and~~Company €repurchased ~~242~~in ~~respectively,~~privately ~~and~~negotiated ~~for~~transactions ~~the~~Senior ~~three~~Notes ~~months~~with ~~ended September 30, 2002 and~~an ~~2003~~aggregate ~~totaled~~face €amount ~~168~~of ~~and~~U.S. €$ ~~111,~~27.4 ~~respectively and~~million. ~~are~~The ~~included~~repurchased inSenior ~~interest~~Notes ~~expense~~have inbeen ~~the accompanying consolidated statements of operations~~canceled.

~~12. LONG~~The Company’s outstanding long-~~TERM~~term debt at June 30, 2004, of € 75,889 is repayable on February 1, 2007, ~~DEBT:~~in one balloon installment.

	December 31, 2002	September 30, 2003
		(Unaudited)
Long-term debt consists of:
Senior Notes, due 2007 issued on February 11, 1997. Interest on the Senior Notes is paid semi-annually in February and August, commencing August 1, 1997, at the rate of 9% per annum. The Senior Notes are redeemable, in whole or in part, at the option of the Company at any time at premiums that reduce over time (see Note 13).	87,407	78,959

Interest expense for the six months ended June 30, 2003 and 2004 € 3,960 and € 3,596, respectively and for the three months ended June 30, 2003 and 2004 totaled € 1,969 and € 1,784, respectively, and are included in interest expense in the accompanying consolidated statements of income.

The ~~fair~~indebtedness evidenced ~~value~~by the Notes constitutes general unsecured senior obligation of ~~the~~Fage ~~Company’s~~Dairy ~~long-term~~Industry ~~debt~~S.A. ~~approximates~~and ~~the~~ranks ~~above-recorded~~pari ~~values,~~passu ~~generally~~in ~~due~~right of payment with all other senior indebtedness and will rank senior in right of payment to ~~their~~all subordinated ~~variable~~indebtedness ~~market~~of ~~rates~~Fage Dairy Industry S.A.

~~Interest~~The ~~expense (excluding~~ Senior Notes Indenture ~~interest~~contains ~~expense~~certain ~~which~~covenants isthat, ~~disclosed~~among inother ~~Note~~things, ~~13)~~limit ~~for~~ the type ~~nine~~and ~~months~~amount ~~ended~~of ~~September~~additional ~~30,~~indebtedness ~~2002~~that may be incurred by Fage Dairy Industry S.A. and ~~2003~~its ~~totaled~~subsidiaries €and 13imposes certain limitations on investments, loans and €advances, 0sales or transfers of assets, ~~respectively~~ liens, dividends and ~~for~~other payments, the ~~three~~ability ~~months~~of ~~ended~~Fage ~~September~~Dairy ~~30,~~Industry ~~2002~~S.A. and ~~2003~~its ~~totaled~~subsidiaries €to 2enter ~~and~~into €sale-leaseback 0transactions, ~~respectively,~~certain transactions with affiliates and ~~are~~certain ~~included~~mergers. inThe ~~interest~~Company ~~expense~~is in compliance with the ~~accompanying~~terms ~~consolidated~~of ~~statements~~the Indenture as of ~~operations~~June 30, 2004.

~~The Company’s outstanding~~14. OTHER ~~long-term~~CURRENT ~~debt at September 30, 2003, of € 78,959 is repayable on February 1, 2007, in one balloon installment.~~LIABILITIES:

~~13. SENIOR~~The amount reflected in ~~NOTES~~the ~~DUE~~accompanying ~~2007~~consolidated balance sheets is analyzed as follows:

The Senior Notes issued at an aggregate face amount of U.S.$ 120 million, with maturity date on February 1, 2007, bear interest at a rate of 9% per annum, payable semi-annually on each February 1 and August 1, and commenced on August 1, 1997. The Senior Notes are redeemable in whole or in part, at the option of the Company at any time on or after February 1, 2002.

	December 31, 2003	June 30, 2004
		(Unaudited)
Taxes withheld:
Payroll	372	204
Third parties	449	438
Milk producers	58	32
Other	270	58
	1,149	732

Advances from customers	777	1,181

Accrued interest	2,754	2,907
Social security funds payable	1,492	839
Accrued and other liabilities	1,994	3,573
	6,240	7,319
TOTAL	8,166	9,232

~~During 2000 the Company repurchased in privately negotiated transactions Senior Notes with an aggregate face amount of U~~15.~~S. $ 17.4 million. The repurchased Senior Notes have been~~ CONTINGENCIES ~~canceled.~~AND COMMITMENTS:

~~Interest expense (including amortization of borrowing costs~~a) ~~for the nine months ended September~~ Litigation ~~30, 2002~~ and 2003 totaled € 7,010 and € 5,899, respectively, and for the three months ended September 30, 2002 and 2003 totaled € 2,341 and € 1,939, respectively, and are included in interest expense in the accompanying consolidated statements of operations.claims:

The ~~indebtedness~~ ~~evidenced~~Company byis ~~the~~a ~~Notes~~party ~~constitutes~~to ~~general~~various ~~unsecured~~lawsuits ~~senior~~and ~~obligation~~arbitration ofproceedings ~~Fage~~in the ~~Dairy~~normal ~~Industry~~course Sof business.A. According ~~and~~to the ~~ranks~~Company’s ~~pari~~management ~~passu~~and inits ~~right~~legal ofadvisors, ~~payment with~~ all ~~other~~of ~~senior indebtedness~~the ~~and~~lawsuits will ~~rank~~be settled ~~senior~~without inany ~~right~~material ofadverse ~~payment~~effect toon ~~all~~the ~~subordinated~~Company’s consolidated ~~indebtedness~~financial ofposition ~~Fage~~or ~~Dairy~~results ~~Industry~~of Soperations.A.

The Senior Notes Indenture contains certain covenants that, among other things, limit the type and amount of additional indebtedness that may be incurred by Fage Dairy Industry S.A. and its subsidiaries and imposes certain limitations on investments, loans and advances, sales or transfers of assets, liens, dividends and other payments, the ability of Fage Dairy Industry S.A. and its subsidiaries to enter into sale-leaseback transactions, certain transactions with affiliates and certain mergers. The Company is in compliance with the terms of the Indenture.b) Commitments:

13As of June 30, 2004, the Company has entered into a number of operating lease agreements relating to the rental of buildings and transportation equipment, which expire on various dates through 2008. Future annual payments under these agreements are as follows:

14. OTHER CURRENT LIABILITIES:

Year		Amount
2004		491
2005		695
2006		329
2007		56
2008		18
		1,589

~~The amount reflected in the accompanying consolidated balance sheets is analyzed as follows:~~14

	December 31, 2002	September 30, 2003
PART I	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
		(Unaudited)
ITEM 2	AND RESULTS OF OPERATIONS
Taxes withheld:
Payroll	452	213
Third parties	434	410
Milk producers	61	44
Other	278	132
	1,225	799
Advances from customers	1,597	44
Accrued interest	3,243	1,225
Social security funds payable	1,274	713
Accrued and other liabilities	2,259	3,705
	6,776	5,643
TOTAL	9,598	6,486

15. CONTINGENCIES AND COMMITMENTS:General

~~The~~In ~~Company is a party to various lawsuits and arbitration proceedings in~~ the ~~normal~~first ~~course~~semester of ~~business. According to~~ the ~~Company’s~~year ~~management and its legal advisors~~2004, ~~all~~sales of ~~the~~branded ~~lawsuits~~yogurt ~~will~~and bedesserts ~~settled without any material~~increased ~~adverse~~by ~~effect~~4%, oncompared to the ~~Company’s~~same ~~consolidated~~period ~~financial~~of ~~position~~the oryear ~~results of operations~~2003.

~~Fage~~In ~~S.A.~~the ~~has~~same ~~been~~period, ~~appointed~~sales asvolume anin ~~official~~the ~~sponsor~~Greek ofmilk market increased by ~~the~~0.5%, ~~Olympic~~compared ~~games~~to ~~held~~the infirst ~~Athens~~semester inof the year ~~2004~~2003. ~~The~~ ~~future~~Sales ~~commitment~~of ~~under~~fresh ~~the~~milk increased ~~sponsorship~~by ~~agreement~~2.3%, ~~amounts~~sales toof “extended shelf life”, ESL milk, increased by 18.5% ~~approximately~~and €sales 1of UHT milk increased by 0.94%. ~~million~~Sales of evaporated milk decreased by 9.2%.

14The packaged cheese market continued its upward trend; total market sales volume increased by 3% for the first semester of the year 2004 compared to the same period of the year 2003.

~~ITEM~~In the first six months of the year 2004 compared to the same period of the year 2003, Fage’s yogurt and desserts sales volume increased by 2.8%; fresh milk sales volume decreased by 5% and ESL milk sales volume increased by 25.4%; and packaged cheese sales volume increased by 1.5%. During the first semester of 2004 Fage launched another bulk strained yogurt under Kathimerino brand name, while another new product, Limoncello, was added to Glykokoutalies desserts line. In addition, Fage relaunched N’ JOY ESL chocolate milk, packaged in smaller bottles. In May, the Company relaunched its Fruyo Fruit and Fruyo Fruit with Cereals product lines and a new yogurt under the TEENS brand name which is a stirred yogurt with an overcup containing sugar flakes and choco crispies. In mid June Fage launched a milkshake product under three flavours.

~~MANAGEMENT’S~~Exports ~~DISCUSSION~~increased ~~AND~~by ~~ANALYSIS~~8.7% OFin ~~FINANCIAL~~volume, ~~CONDITION AND~~mainly ~~RESULTS~~due OFto ~~OPERATIONS~~increased export sales of yogurt.

~~General~~During January, Fage increased prices for all sectors by 2.5% approximately.

In ~~the~~July ~~first~~of ~~nine~~the ~~months~~year ~~of 2003~~2004, the ~~entire~~Dutch ~~Greek white~~company ~~milk~~named ~~market~~Friesland ~~volume~~Coberco Dairy ~~increased by 0.5% from the comparable period of 2002~~Food, ~~due~~ towhich aalready ~~6.5%~~operates ~~increase~~ in the ~~two-month~~Greek ~~period of July and August. The fresh milk~~ market ~~continued~~in ~~its~~the ~~declining~~ESL ~~trend with a 4.5% decrease as did evaporated~~ and ~~UHT (-2.6% and -10.4%~~ ~~respectively).~~evaporated ~~ESL white~~ milk, ~~with~~segment aentered ~~38% increase from~~ the ~~comparable~~yogurt ~~period of 2003, is the only sector of the~~ market ~~which~~with ~~increased.~~an ~~This increase can be~~aggressive ~~largely attributed to the launch of the new FAGE 10 product and the substantial~~ advertising ~~investment throughout the year. ESL now accounts for 22.8% of the refrigerated milk market. Chocolate milk declined by 7.8%~~ and ~~this~~price-cutting ~~decrease is reflected in all market segments~~campaign. ~~Finally the cream market increased by 1.3% from the comparable period of 2002.~~

~~The~~Results ~~Greek market for sealed yogurt increased by 2.0% from the comparable period~~ of ~~2002. The segments driving this increase are mainly strained yogurt (+2.3%) and children’s yogurt (+12.5%). Desserts volume grew by 8.6% from the comparable period of 2002.~~Operations

The ~~Greek~~following ~~market~~table ~~for~~sets ~~packaged~~forth, ~~cheese~~for ~~increased~~the byperiods 7%indicated, certain ~~compared~~items toin the ~~same~~Company’s ~~period~~consolidated ofincome ~~the~~statements ~~year~~expressed ~~2002.~~as percentages of net sales:

In the first nine months of 2003, FAGE’s white milk sales increased by 0.5% in volume from the comparable period of 2002, following the market trend. The Company continued supporting its ESL product range through various activities, and experienced an increase 34.9% in ESL sales volume. On the other hand, fresh & chocolate milk sales dropped by 19.1% and 6.3% respectively. Milk cream sales experienced an increase of 0.5% from the comparable period of 2002.

	Six months ended June 30,				Three months ended June 30,
	2003		2004		2003		2004
	(Unaudited)				(Unaudited)

Net sales	100.0	%	100.0	%	100	%	100	%
Cost of sales	61.7		61.7		62.8		62.8
Gross profit	38.3		38.3		37.2		37.2
Selling, general and administrative expenses	31.6		32.9		33.8		35.8
Income from operations	6.7		5.4		3.4		1.4
Interest expense	2.4		2.2		2.2		2.1
Foreign exchange gains (losses), net	4.6		(1.8	)	5.1		0.3
Gains (losses)on equity investee	(0.1	)	(0.1	)	0.1		(0.1	)
Other income (expenses), net	0.4		0.2		0.3		0.1
Income (loss) before income taxes and
minority interests	9.2		1.5		6.7		(0.4	)
Provision for income taxes	(4.1	)	(0.2	)	(4.0	)	0.7
Income before minority interests	5.1		1.3		2.7		0.3
Minority interests	—		(0.1	)	—		(0.1	)
Net income	5.1	%	1.2	%	2.7	%	0.2	%

FAGE’s domestic yogurt volume sales increased by 1.0%. In September, the Company relaunched its Ageladitsa product line. Dessert sales increased by 5.3% in volume while one more product (Panaccotta) was added to Glukokoutalies product line in September.15

~~Packaged cheese sales performed well with a 4.4%~~Six ~~increase~~months inended ~~volume~~June ~~from~~30, ~~the~~2004 ~~comparable~~compared ~~period~~to ofsix ~~2002.~~months Inended ~~July~~June 30, ~~one more product (Gouda cheese in slices) was launched.~~2003

~~During~~Net sales. ~~January~~Net sales for the six months ended June 30, ~~FAGE~~2004 ~~increased~~were of ~~prices~~€ ~~for~~177.2 ~~all~~million ~~segments~~($ 215.8 million), an increase of € 4.0 million ($ 4.9 bymillion), 3or 2.53%, from € 173.2 million ($ 210.9 million) for the six months ended June 30, 2003. The increase was attributable to higher prices and changes in the product sales mix, as total sales volume remained stable.

InGross profit. Gross ~~2002,~~profit for the ~~Company~~six ~~retroactively~~months ~~applied~~ended ~~EITF~~June ~~01-09 and~~30, ~~reflected~~2004 ~~trade~~was ~~support~~€ ~~actions~~67.8 ~~that~~million ~~are~~($ ~~generally~~82.6 ~~invoiced~~million), byan ~~customers~~increase ~~as a deduction~~ of ~~sales~~€ ~~rather~~1.6 ~~than~~million ~~selling~~($ ~~expenses~~1.9 million), ~~Such~~or ~~costs~~2.4%, ~~amounted~~from to € ~~13,531~~ ~~and~~66.2 €million ~~16,107~~($ 80.6 million) for the ~~nine~~six months ended ~~September~~June 30, ~~2002~~2003. ~~and~~Gross ~~2003,~~profit ~~respectively~~as ~~and~~a €percentage ~~4,964 and~~of €net ~~5,593~~sales for the ~~three~~ six months ended ~~September~~June 30, ~~2002~~2004 ~~and~~remained ~~2003, respectively.~~stable Inat ~~addition~~38.3%, ~~distribution~~as ~~costs~~in ~~incurred~~the byrespective period ~~the~~of ~~Company~~2003. Cost ~~and~~of ~~provided~~sales for the tosix ~~representatives~~months asended anJune ~~allowance~~30, on2004 ~~sales~~was ~~were~~€ ~~reflected~~109.4 asmillion ($ ~~selling~~133.2 ~~expenses~~million), an increase of € 2.5 ~~Such~~million ~~distribution~~($ ~~costs~~3.0 ~~amounted~~million) toor 2.3% from € ~~20,721~~106.9 ~~and~~million €($ ~~21,922~~130.2 million) for the six ~~nine~~ months ended ~~September~~June 30, ~~2002~~2003. ~~and~~Cost ~~2003, respectively~~of ~~and~~sales €as ~~7,601~~a ~~and~~percentage €of net sales was 61.7~~,847~~% for the ~~three~~six months ended ~~September~~June 30, 2004, the same as it was for the six ~~2002~~months ~~and~~ended ~~2003~~June 30, ~~respectively~~2003.

15Selling, general and administrative expenses. Selling, general and administrative expenses (‘‘SG & A’’) for the six months ended June 30, 2004 were € 58.3 million ($ 71.0 million), an increase of € 3.6 million ($ 4.4 million), or 6.6%, from € 54.7 million ($ 66.6 million) for the respective period of 2003. SG & A as a percentage of net sales increased from 31.6% for the first six months of 2003 to 32.9% for the first six months of 2004, an increase of 4.1%, mainly due to extra expenses concerning the upcoming Olympic Games.

~~Results~~Income from operations. Income from operations for the six months ended June 30, 2004 was € 9.5 million ($ 11.6 million), a decrease of ~~Operations~~€ 2.1 million ($ 2.6 million), or 18.1%, from € 11.6 million ($ 14.1 million) for the six months ended June 30, 2003. Income from operations as a percentage of net sales decreased from 6.7% in the first six months of 2003 to 5.4% in the first six months of 2004. This decrease was due to increased SG & A expense.

~~The following table sets~~Interest ~~forth,~~expense. Interest expense for the ~~years~~six ~~indicated~~months ended June 30, ~~certain~~2004 ~~items~~was in€ ~~the~~4.0 ~~Company’s~~million ~~consolidated~~($ 4.9 ~~income~~million). ~~statements~~For ~~expressed~~the assix ~~percentages~~months ofended ~~net~~June ~~sales:~~30, 2003 interest expense was € 4.1 million ($ 5.0 million).

	Nine months ended September 30,				Three months endedSeptember 30,
	2002		2003		2002		2003
	(Unaudited)				(Unaudited)
Net sales	100.0	%	100.0	%	100	%	100	%
Cost of sales	61.9		61.9		62.9		62.1
Gross profit	38.1		38.1		37.1		37.9
Selling, general and administrative expenses	27.5		30.9		25.6		30.4
Income from operations	10.6		7.2		11.5		7.5
Interest expense	3.1		2.3		2.7		2.2
Foreign exchange gains (losses), net	4.8		3.1		(0.2	)	0.2
Gains (losses)on equity investee	(0.2	)	(0.1	)	(0.1	)	(0.1	)
Other income (expenses), net	0.2		0.1		—		0.5
Income before income taxes and minority interests	12.3		8.0		8.5		5.9
Provision for income taxes	(4.2	)	(2.9	)	(0.9	)	(0.8	)
Income before minority interests	8.1		5.1		7.6		5.1
Minority interests	—		—		—		—
Net income	8.1	%	5.1	%	7.6	%	5.1	%

Foreign exchange losses (gains), net. Foreign exchange losses for the six months ended June 30, 2004 were € 3.0 million ($ 3.7 million) mainly due to the Senior Notes quarter end remeasurement. For the six months ended June 30, 2003 there was a foreign exchange gain of € 8.0 million ($ 9.7 million). This € 11.0 ($ 13.4 million) change from the first six months of 2003 to the first six months of 2004, which resulted from the appreciation of the dollar as compared to Euro, had a significant negative impact on net income.

~~Nine~~Losses on equity investee. Losses on equity investee for the six months ended ~~September~~June 30, ~~2003~~2004 ~~compared~~were to€ ~~nine~~0.2 ~~months~~million ($ 0.2 million). For the six months ended ~~September~~June 30, ~~2002~~2003 there were losses of € 0.1 million ($ 0.1 million).

~~Net~~Other income ~~sales.~~(expenses), ~~Net~~net. Other ~~sales~~income for the ~~nine~~six months ended ~~September~~June 30, ~~2003~~2004 ~~were~~was € ~~266~~0.73 million ($ ~~310.7~~ ~~million), an increase of € 15~~0.2 4 million ~~($ 17.7 million~~)~~, or 6~~.~~0%,~~ ~~from~~Other ~~€ 251.5~~income ~~million ($ 293.0 million)~~ for the ~~nine~~six months ended ~~September~~June 30, ~~2002. The~~2003 ~~increase~~ was ~~attributable~~€ to0.5 ~~the factors~~million ~~discussed~~($ ~~above~~0.6 ~~under “General”~~million).

~~Gross~~Provision for ~~profit~~income taxes. ~~Gross~~The provision ~~profit~~for income taxes for the ~~nine~~six months ended ~~September~~ June 30, ~~2003~~2004 was € ~~101.7 million ($ 118.5 million), an increase of € 6.~~0 ~~million ($ 7~~.04 million), ~~or 6.3%, from € 95.7 million~~ ($ ~~111~~0.5 million) ~~for the nine months ended September 30, 2002~~. ~~This improvement~~ isFor ~~attributable to~~ the ~~increase~~six ~~in net sales. Gross profit as a percentage of net sales for the nine~~ months ended ~~September~~June 30, 2003 ~~was 38.1%,~~ the ~~same as in the~~provision ~~comparable period of 2002. Cost of sales~~ for ~~the~~income ~~nine~~taxes ~~months ended September 30, 2003~~ was € ~~165.0 million ($ 192.2 million), an increase of € 9.2 million ($ 10.~~7 ~~million) or 5~~.9%1 ~~from € 155.8~~ million ($ ~~181~~8.56 million) ~~for the nine months ended September 30, 2002~~. ~~Cost of sales as a percentage of net sales was 61.9% for the nine months ended September 30, 2003, in the comparable period of 2002.~~

~~Selling,~~Net ~~general and administrative expenses~~income. ~~Selling, general~~Net ~~and~~income ~~administrative expenses (‘‘SG & A’’)~~ for the ~~nine~~six months ended ~~September~~ June 30, ~~2003~~2004 ~~were~~was € 822.51 million ($ 962.16 million), ana decrease ~~increase~~ of € 136.4 7 million ($ 158.62 million), orfrom ~~19.4%,~~net ~~from~~income of € 698.18 million ($ 8010.57 million), for ~~the~~ ~~respective period of 2002. SG & A as a percentage of net sales increased from 27.5% for~~ the ~~first nine~~ six months ofended ~~2002~~June to 30, 2003.9% ~~for~~As ~~the~~discussed ~~first nine months of 2003~~above, anthis ~~increase of 12.4%. This increase~~ was ~~partly~~mainly due to ~~promotion~~ ~~and other expenses in connection with Fage’s sponsorship concerning~~ the ~~2004 Athens Olympic Games, partly due to advertising expenses to support~~ ~~the~~increased ~~new~~SG ~~brand~~& ~~name~~A ~~GALA 10 launch~~ and ~~partly due to increased compensation of certain members of~~ the ~~Filippou family~~foreign ~~employed~~exchange bylosses ~~the~~for ~~Company. The Company believes~~ the ~~amounts~~first ~~paid~~six tomonths ~~members~~ of ~~the family are appropriate consideration for the services provided~~2004.

Income from operations. Income from operations for the nine months ended September 30, 2003 was € 19.2 million ($ 22.4 million), a decrease of € 7.4 million ($ 8.6 million), or 27.8%, from € 26.6 million ($ 31.0 million) for the nine months ended September 30, 2002. Income from operations as a percentage of net sales decreased from 10.6% in the first nine months of 2002 to 7.2% in the first nine months of 2003. This decrease was mainly due to the increased SG & A.16

~~Interest expense. Interest expense for the nine months ended~~Three ~~September 30, 2003 was € 6.1 million ($ 7.1 million), a decrease of € 1.8 million ($ 2.1 million), or 22.8%, from € 7.9 million ($ 9.2 million) for the nine~~ months ended ~~September~~June 30, ~~2002. This~~ ~~decrease~~2004 iscompared ~~mainly due~~ to ~~the~~ ~~revaluation~~three ~~of the Euro against the US dollar for the nine~~ months ended ~~September~~ June 30, 2003 ~~compared to the exchange rate for the comparable period of 2002.~~

16Net sales. Net sales for the three months ended June 30, 2004 were of € 95.5 million ($ 116.3 million), an increase of € 2.2 million ($ 2.7 million), or 2.4%, from € 93.3 million ($ 113.6 million) for the three months ended June 30, 2003. The increase was attributable to higher prices and changes in the product sales mix, as total sales volume remained stable.

~~Foreign exchange losses~~Gross ~~(gains), net~~profit. ~~Foreign exchange~~Gross ~~gains~~ profit for the ~~nine~~three months ended ~~September~~June 30, ~~2003~~2004 ~~were~~ was € 835.5 million ($ 43.2 million), an increase of € 0.8 million ($ 91.60 million), ~~mainly~~or ~~due~~2.3%, from € 34.7 million ($ to42.3 million) for the ~~Senior~~three ~~Notes~~months ~~quarter~~ended ~~end~~June ~~remeasurement~~30, 2003. Gross profit as a ~~For~~percentage of net sales for the ~~nine~~three months ended ~~September~~June 30, ~~2002~~2004 ~~there~~was ~~were~~37.2%, ~~foreign exchange~~the ~~gains~~same with the respective period of 2003. Cost of sales for the three months ended June 30, 2004 was € 1260.0 million ($ 73.1 million), an increase of € 1.4 million ($ 141.07 million) or 2.4% from € 58.6 million ($ 71.4 million) for the three months ended June 30, 2003. Cost of sales as a percentage of net sales was 62.8% for the three months ended June 30, 2004, the same with the respective period of 2003.

~~Losses~~Selling, general onand ~~equity~~administrative ~~investee~~expenses. ~~Losses~~Selling, general onand ~~equity~~administrative ~~investee~~ expenses (‘‘SG & A’’) for the ~~nine~~three months ended June ~~September~~ 30, ~~2003~~2004 were € 034.2 million ($ 041.2 7 million)., ~~For~~an ~~the~~increase ~~nine~~of ~~months~~€ ~~ended~~2.7 million ~~September~~($ 303.3 million), ~~2002~~or ~~there~~8.6%, ~~were~~from ~~losses of~~ € 031.45 million ($ 038.54 million) for the respective period of 2003. SG & A as a percentage of net sales increased from 33.8% for the first three months of 2003 to 35.8% for the first three months of 2004, an increase of 5.9%, mainly due to extra expenses concerning the upcoming Olympic Games.

~~Other~~Income from ~~income (expenses), net~~operations. ~~Other~~Income from ~~income~~operations for the ~~nine~~ three months ended ~~September~~June 30, ~~2003~~2004 was € 0 1.23 million ($ 01.26 million), a decrease of € 1.9 ~~Other~~million ($ 2.3 million) from income from operations of € 3.2 million ($ 3.9 million) for the ~~nine~~ three months ended ~~September~~ June 30, ~~2002~~2003. Income ~~was~~from operations €as 0a percentage of net sales decreased from 3.64% ~~million~~in ($the 0first three months of 2003 to 1.~~7million)~~4% in the first three months of 2004. This decrease was due to increased SG & A expense.

~~Provision for income taxes~~Interest expense. ~~The provision for income~~ Interest ~~taxes~~expense for the ~~nine~~three months ended ~~September~~June 30, ~~2003~~2004 was € 72.80 million ($ 92.14 million). For the ~~nine~~three months ended ~~September~~ June 30, ~~2002~~2003 ~~the~~interest ~~provision~~expense ~~for income taxes~~ was € 102.6 1 million ($ 122.3 6 million).

~~Net~~Foreign exchange ~~income~~losses (gains), net. ~~Net~~ Foreign ~~income~~exchange gains for the ~~nine~~three months ended ~~September~~ June 30, ~~2003~~2004 ~~was~~were € 13 0.63 million ($ 150.84 million) mainly due to the Senior Notes quarter end remeasurement. For the three months ended June 30, 2003 there was a ~~decrease~~foreign ofexchange gain of € 64.7 million ($ 75.87 million)~~, or 33~~.~~0%,~~ ~~from~~This € 204.34 ~~million~~ ($ 23 5.64 million), ~~for~~change from the second quarter of 2003 to the second quarter of 2004, which resulted from less depreciation of the ~~nine~~dollar ~~months~~than ~~ended~~in ~~September~~2003 30as compared to Euro, ~~2002~~had a significant negative impact on the period to period comparison of net income.

~~Three~~Losses (gains) on equity investee. Losses on equity investee for the three months ended ~~September~~June 30, ~~2003~~2004 ~~compared~~were to€ ~~three~~0.1 million ($ 0.1 million). For the three months ended June ~~September~~ 30, ~~2002~~2003 there were gains of € 0.1 million ($ 0.1 million).

~~Net~~Other income ~~sales.~~(expenses), ~~Net~~net. Other ~~sales~~income for the three months ended ~~September~~June 30, ~~2003~~2004 ~~were~~was € 930.~~5 million ($ 108.9 million), an increase of €~~ 1.6 million ($ 10.9 1 million)~~, or 1~~.~~7%,~~ ~~from~~Other €income ~~91.9 million ($ 107.1 million)~~ for the three months ended ~~September~~June 30, ~~2002. The~~2003 ~~increase~~ was ~~attributable~~€ ~~to the factors~~0.3 ~~discussed~~million ~~above~~($ ~~under~~0.4 ~~“General”~~million).

~~Gross~~Provision for ~~profit~~income taxes. ~~Gross~~The provision ~~profit~~for income taxes for the three months ended ~~September~~ June 30, ~~2003~~2004 was €a benefit ~~35.5 million ($ 41.4 million), an increase of~~ € 10.~~4 million ($ 1.~~6 million), ~~or 4.1%, from € 34.1 million~~ ($ 390.7 million) ~~for~~due ~~the three months ended September 30, 2002. This improvement is attributable~~ to the ~~increase~~loss inbefore ~~net~~income ~~sales~~taxes. ~~Gross profit~~For ~~as a percentage of net sales for~~ the three months ended ~~September~~June 30, 2003 ~~increased to 37.9% from 37.1% for~~ the provision ~~comparable period of 2002. Cost of sales~~ for ~~the~~income ~~three~~taxes ~~months ended September 30, 2003~~ was € ~~58.0 million ($ 67.6 million), an increase of € 0.2 million ($ 0.2 million) or 0.~~3~~% from € 57~~.87 million ($ 674.35 million) ~~for the three months ended September 30, 2002~~. ~~Cost of sales as a percentage of net sales decreased from 62.9% for the three months ended September 30, 2002 to 62.1% for the three months ended September 30, 2003.~~

~~Selling, general and administrative~~Net ~~expenses~~income. ~~Selling, general~~Net ~~and~~income ~~administrative expenses (‘‘SG & A’’)~~ for the three months ended ~~September~~ June 30, ~~2003~~2004 ~~were~~was € 280.51 million ($ 330.21 million), ana decrease ~~increase~~ of € 42.9 5 million ($ 53.70 million), orfrom ~~20.8%,~~net ~~from~~income of € 232.6 million ($ 27 3.52 million), for the ~~respective~~ ~~period of 2002. SG & A as a percentage of net sales increased from 25.6% for the~~ three months ended ~~September~~June 30, ~~2002 to 30~~2003.4% ~~for~~As ~~the~~discussed ~~three~~above, ~~months~~this ~~ended September 30, 2003, an increase of 18.8%. This increase~~ was ~~partly due~~mainly ~~to promotion and other expenses in connection with Fage’s sponsorship concerning the 2004 Athens Olympic Games, partly~~ due to ~~advertising expenses to support~~ the ~~new~~increased ~~brand~~SG ~~name~~& ~~GALA 10~~A ~~launch~~ and ~~partly due to increased compensation of certain members of~~ the ~~Filippou family~~higher ~~employed~~foreign ~~by the Company. The Company believes the amounts paid to~~exchange ~~members~~gains ofin ~~the family are appropriate consideration for the services provided~~2003.

~~Income~~Liquidity ~~from~~and ~~operations. Income~~Capital from operations for the three months ended September 30, 2003 was € 7.0 million ($ 8.2 million), a decrease of € 3.5 million ($ 4.1 million), or 33.3%, from € 10.5 million ($ 12.2 million) for the three months ended September 30, 2002. Income from operations as a percentage of net sales for the three months ended September 30, 2003 decreased to 7.5% from 11.5% for the comparable period of 2002. This decrease was mainly due to the increased SG & A.Resources

~~Interest~~Sources of ~~expense~~Capital. ~~Interest~~ ~~expense~~The ~~for~~Company ~~the~~funds ~~three~~its ~~months~~operating ~~ended~~costs through ~~September~~cash ~~30,~~from ~~2003~~operations ~~was~~and €short-term ~~2.1million~~borrowings ($under ~~2.4~~various ~~million),~~lines aof ~~decrease~~credit maintained ofat €several 0banks.~~4 million~~ ($At ~~0.5~~June ~~million)~~30, ~~or 16.0%~~2004, ~~from~~approximately € 222.51 million ($ 2 26.9 million) ~~for~~was ~~the three months ended September 30~~available, ~~2002. This~~see ~~decrease~~“Note is12 ~~mainly~~Short-Term ~~due~~Borrowings” to the ~~revaluation of the Euro against the~~ USaccompanying ~~dollar~~consolidated ~~for~~financial ~~the three months ended September 30, 2003 compared to the exchange rate for the comparable period of 2002~~statements.

~~Foreign exchange~~Cash ~~losses~~flows ~~(gains),~~from operations ~~net. Foreign~~can ~~exchange~~be ~~gains~~impacted ~~for~~by the ~~three~~Company’s ~~months ended~~extension ~~September~~of ~~30,~~credit ~~2003~~and ~~were~~the €terms and ~~0.2~~collection ~~million~~of ($its 0receivables.2 The ~~million)~~Company ~~mainly~~has ~~due~~established criteria for granting credit to customers, which are generally based upon the size of the customer’s operations and ~~Senior~~consideration ~~Notes~~of ~~quarter~~relevant ~~end~~financial ~~remeasurement~~data. ~~For~~Business ~~the~~is ~~three~~generally ~~months~~conducted ~~ended~~with ~~September~~such ~~30,~~customers ~~2002~~under ~~there~~normal ~~were foreign~~terms ~~exchange~~with ~~losses~~collection ~~of €~~expected ~~0.1~~within ~~million~~sixty (~~$ 0.1 million~~60). days after

Gains (losses) on equity investee. Losses on equity investee for the three months ended September 30, 2003 were € 0.1 million ($ 0.1 million). For the three months ended September 30, 2002 there were losses of € 0.1 million ($ 0.1 million).17

17shipment. At each reporting period date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate allowance for doubtful accounts. It is the Company’s policy to attach liens against the property of most of its delinquent customers. Because of the prolonged and complex legal procedures in Greece, it is not unusual for the collection process to take three to five years before a case is finalized. Notwithstanding this, the Company does not consider its accounts receivable collection process to be delayed. Rather, the Company believes its cash management policies are effective in ensuring that the turnover of its accounts receivable and accounts payable are properly balanced within general business practices in Greece.

~~Other~~Operating Activities. Net ~~income~~cash used ~~(expenses),~~in ~~net. Other~~operating ~~income~~activities for the three months ended ~~September~~June 30, ~~2003~~2004 was € 0.4.3 million ($ 5.2 million), an increase of € 1.9 million ($ 02.53 million) compared to net cash used in operating activities of € 2.4 ~~Other~~million ~~income~~($ 2.9 million) for the ~~three~~six months ended ~~September~~June 30, ~~2002~~2003, ~~was~~which €mainly ~~0.04~~is ~~million~~due ($to ~~0.05~~a ~~million)~~decrease in earnings, to the foreign exchange gains/losses and change in working capital.

~~Provision for income taxes~~Investing Activities. ~~The~~Net ~~provision~~cash used ~~for~~in ~~income taxes~~investing activities for the ~~three~~six months ended ~~September~~June 30, ~~2003~~2004 was € 08.79 million ($ 010.8 million), a decrease of € 1.5 million ($ 1.8 million), from net cash used in investing activities of ~~For~~€ 10.4 million ($ 12.7 million) for the ~~three~~six months ended ~~September~~ June 30, ~~2002~~2003. This decrease was mainly due to the decreased ~~provision~~capital expenditures made in Amintaio for ~~income~~the ~~taxes~~six ~~was~~months €ended June 30, 2004 in comparison with the same period of 2003. Capital expenditures of € 9.0 million ($ 11.80 million) were made in continued investments in Company’s facilities in order to further realize operating efficiencies.

Financing Activities. Net cash from financing activities for the six months ended June 30, 2004 was € 15.7 million ($ 019.91 million) compared to net cash from financing activities of € 10.5 million ($ 12.8 million) for the six months ended June 30, 2003, an increase of € 5.2 million ($ 6.3 million) or 49.5%. This increase was mainly due to the increased short-term borrowings in the first six months of 2004 compared to the same period of 2003.

~~Net income. Net income for the three months ended~~Contractual ~~September 30, 2003 was € 4.8 million ($ 5.6 million), a decrease of € 2.2 million ($ 2.6 million), or 31.4%, from € 7.0 million ($ 8.2 million), for the three months ended September 30, 2002.~~Obligations

~~Liquidity~~Contractual ~~and~~obligations as ~~Capital~~of ~~Resources~~June 30, 2004, were as follows:

~~The Company~~(Unaudited) ~~has~~(stated ~~historically~~in ~~funded~~thousands ~~its operations, capital expenditures and working capital requirements through a combination~~ of ~~cash flows from operations, short-term borrowings, long-term debt and capital lease obligations.~~Euro)

Cash flows from operations can be impacted by the Company’s extension of credit and the terms and collection of its receivables. The Company has established criteria for granting credit to customers, which are generally based upon the size of the customer’s operations and consideration of relevant financial data. Business is generally conducted with such customers under normal terms with collection expected within sixty (60) days after shipment. At each reporting period date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate allowance for doubtful accounts. It is the Company’s policy to attach liens against the property of most of its delinquent customers. Because of the prolonged and complex legal procedures in Greece, it is not unusual for the collection process to take three to five years before a case is finalized. Notwithstanding this, the Company does not consider its accounts receivable collection process to be delayed. Rather, the Company believes its cash management policies are effective in ensuring that the turnover of its accounts receivable and accounts payable are properly balanced within general business practices in Greece.

		Payment Due In:
	Total	2004	2005-06	2007-08	Αfter 2008
Long Term Debt (1)	75,889	—	—	75,889	—
Interest on Long-term Debt (1)	17,676	3,423	13,690	563	—
Operating Leases	1,589	491	1,024	74	—
Maturity of other long term payables	2,031	—	524	1,048	459
Total	97,185	3,914	15,238	77,574	459

~~Operating~~(1) ~~Activities. Net~~These ~~cash~~amounts ~~used~~are denominated in ~~operating~~U.S. ~~activities~~dollars ~~for~~and ~~the~~have ~~nine~~been ~~months~~translated ~~ended~~to ~~September~~Euro ~~30,~~using ~~2003~~the ~~was~~rate €of ~~2.4~~June ~~million~~30, ~~($ 2.8 million)~~2004, ~~a decrease~~ of ~~€ 22~~U.7S. ~~million (~~$ 261.~~4 million) compared~~ 2179 to ~~net~~Euro ~~cash from operating activities of € 20~~1.300 ~~million~~and ($are ~~23.6~~subject ~~million) for the nine months ended September 30, 2002, which mainly is due~~ to aforeign ~~decrease~~exchange influctuations ~~earnings and change~~ in ~~working~~ ~~capital~~future periods.

~~Investing~~Critical ~~Activities. Net~~Accounting ~~cash used in investing activities for the nine months ended September 30, 2003 was € 15~~Policies.0 million ($ 17.5 million), an increase of € 22.2 million ($ 25.9 million), from € 7.2 million ($ 8.4 million) net cash from investing activities for the nine months ended September 30, 2002. Capital expenditures of € 15.4 ($ 17.9 million) were made in continued investments in Company’s facilities in order to further realize operating efficiencies.

~~Financing~~The ~~Activities. Net~~Company ~~cash~~maintains ~~from~~its accounting ~~financing~~records and publishes its statutory financial statements following ~~activities~~Greek ~~for~~tax and corporate regulations and has made certain out-of-book memorandum adjustments to these records to present the ~~nine~~consolidated ~~months~~financial ~~ended~~statements included ~~September~~in ~~30,~~this ~~2003~~report ~~was~~in €accordance 15with U.8S. ~~million~~generally ($accepted accounting 18principles.4 ~~million)~~The ~~compared~~preparation toof ~~net~~consolidated ~~cash~~financial ~~used~~statement in ~~financing~~accordance with ~~activities~~U.S. ofgenerally €accepted ~~20.2~~accounting principles requires management to make ~~million~~estimates ($and ~~23.5~~assumptions ~~million)~~that ~~for~~effect the ~~comparable~~reported ~~period~~amount of ~~2002,~~assets ~~mainly~~and liabilities asand adisclosure ~~result~~ of contingent assets and liabilities at the ~~short-term~~date ~~loan~~of the ~~increase~~financial instatements ~~2003~~and the reported amount of €revenues 15and expenses during the reporting period.8 ~~million~~The ($Company 18continually evaluates the policies and estimates it uses to prepare its consolidated financial statements.4 ~~million)~~In general, the estimates are based on historical experience, information from third-party professionals and various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results may differ from those estimates made by management.

~~Sources of Capital.~~ The Company ~~funds~~believes ~~its operating costs through cash from operations and short-term~~that ~~borrowings under various lines~~ of ~~credit~~our ~~maintained~~accounting atpolicies ~~several~~the ~~banks.~~following ~~At September~~may ~~30,~~involve ~~2003,~~a ~~approximately~~higher €degree ~~16.9 million ($ 19.7 million) was~~of ~~available,~~judgment ~~see~~and ~~“Note 11 Short-Term Borrowings”.~~ complexity:

~~Contractual~~Concentration of ~~Obligations~~Credit Risk and Allowance for Doubtful Accounts: Financial assets that potentially subject the Company to concentrations of credit risk are trade accounts receivable. Due to the large volume and diversity of our customer base, concentrations of credit risk with respect to trade accounts receivable are limited. At

~~Contractual obligations as September 30, 2003, were as follows:~~18

~~(stated~~each inreporting ~~thousands~~period, all accounts receivable are assessed on historical trends, statistical information and future expectations and a provision is recorded for the probable and reasonably estimable loss for these accounts. The balance of ~~Euro)~~such allowance for doubtful accounts is adjusted by recording a charge to the consolidated statement of income for the reporting period.

		Payment Due In:
	Total	2003	2004-05	2006-07	Αfter 2007
Long Term Debt	78,959	—	—	78,959	—
Operating Leases	2,635	260	1,742	594	39
Maturity of other long term payables	3,276	197	1,048	1,048	983
Total	84,870	457	2,790	80,601	1,022

Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of subsidies provided by the Greek State, plus interest costs incurred during periods of construction based upon the weighted average borrowing rate. Repairs and maintenance are expensed as incurred. The cost and related accumulated depreciation of assets retired or sold are removed from the accounts at the time of sale or retirement, and any gain or loss is included in the accompanying consolidated statements of income. For statutory reporting purposes, the Company was obliged to revalue its property, plant and equipment at various dates following the provisions of the respective mandatory tax laws. These revaluations have been reversed in the accompanying consolidated financial statements, after giving effect to the related deferred income taxes. The reversal of the net revaluation gains is reflected as a separate component of shareholders’ equity.

18Impairment of Long-Lived Assets: The U.S. Financial Accounting Standards Board issued SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long lived assets. The Company adopted SFAS No. 144 as of January 1, 2002, without any effect on the Company’s financial position and results of operations. The standard requires that long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss for an asset held for use is recognized, when the estimate of undiscounted future cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount. Measurement of the impairment loss is based on the fair value of the asset computed using discounted cash flows if the asset is expected to be held and used. The accuracy of our assessments of fair value is based on management’s ability to accurately predict variables such as productivity and sales volume and prices, spending on marketing and other variables. Predicting these key variables, involves uncertainty about future events, however, the assumptions we use are consistent with these employed for internal planning purposes.

~~Critical~~Goodwill: Goodwill ~~Accounting~~is ~~Policies~~the excess of the purchase price over the fair value of net identifiable assets acquired in business combinations accounted for as a purchase. Prior to January 1, 2002, goodwill was amortized on a straight-line basis over periods not exceeding 20 years. Effective with the adoption of SFAS No. 142 on January 1, 2002, the Company is no longer amortizing goodwill, and is instead testing it for impairment at least annually. In December 2002 and 2003, we performed the required annual impairment test for goodwill and concluded that no impairment existed. Impairment loss is recognized when the estimated expected future cash flows (undiscounted and without interest) are less than the carrying amount of the asset.

~~The Company~~Income ~~maintains its accounting records and publishes its statutory financial~~taxes: Our ~~statements~~estimates ~~following~~of ~~Greek~~income ~~tax~~taxes and ~~corporate~~the ~~regulations~~significant ~~and~~items ~~has~~giving ~~made~~rise ~~certain out-of-book memorandum adjustments~~ to ~~these records to present~~ the ~~consolidated~~deferred ~~financial~~assets ~~statements~~and ~~included~~liabilities inare ~~this~~shown ~~report~~ in ~~accordance~~Fage’s ~~with~~2003 ~~U.S.~~annual ~~generally accepted accounting principles~~report. ~~The~~These ~~preparation of consolidated financial~~reflect ~~statement~~our inassessment ~~accordance~~of ~~with~~actual ~~U.S.~~future ~~generally~~taxes ~~accepted accounting principles requires management~~ to ~~make~~be ~~estimates~~paid ~~and~~on ~~assumptions~~items ~~that~~reflected ~~effect~~in the ~~reported~~ ~~amount~~financial ofstatements, ~~assets~~giving ~~and~~consideration ~~liabilities~~to ~~and~~both ~~disclosure~~timing ~~of contingent assets~~ and ~~liabilities~~ atprobability ~~the date~~ of ~~the financial statements and the reported amount of~~ ~~revenues~~these ~~and expenses during the reporting period~~estimates. ~~The~~Actual ~~Company~~income ~~continually~~taxes ~~evaluates the~~could ~~policies~~vary ~~and~~from these estimates itdue ~~uses~~ to ~~prepare its consolidated financial~~future ~~statements.~~changes Inin ~~general,~~income ~~the~~tax ~~estimates~~law ~~are~~or ~~based~~ on ~~historical~~results ~~experience, information~~ from ~~third-party~~final ~~professionals~~review ~~and~~of ~~various~~our ~~other~~tax ~~assumptions~~returns ~~that~~by ~~are believed to be reasonable under~~ the ~~facts~~competent ~~and~~tax ~~circumstances~~authorities. ~~Actual results may differ from those estimates made by management.~~

~~The~~ITEM 3 ~~Company believes~~- ~~that~~QUANTITATIVE ofAND ~~its~~QUALITATIVE ~~accounting policies the following may involve a higher~~DISCLOSURE ~~degree~~ABOUT ofMARKET ~~judgment and complexity:~~RISK

Concentration of Credit Risk and Allowance for Doubtful Accounts: Financial assets that potentially subject the Company to concentrations of credit risk are trade accounts receivable. Due to the large volume and diversity of the customer base, concentrations of credit risk with respect to trade accounts receivable are limited. At each reporting period, all accounts receivable are assessed on historical trends, statistical information and future expectations and a provision is recorded for the probable and reasonably estimable loss for these accounts. The balance of such allowance for doubtful accounts is adjusted by recording a charge to the consolidated statement of income for the reporting period.Inflation

~~Property,~~Although ~~Plant~~the ~~and~~Greek ~~Equipment:~~economy ~~Property,~~has ~~plant~~long ~~and equipment~~been ~~are~~subject ~~stated~~to atboth ~~cost,~~high ~~net~~levels of ~~subsidies~~inflation ~~provided~~and by the ~~Greek State,~~effects ~~plus interest costs incurred during periods~~ of ~~construction based upon~~ the ~~weighted~~ ~~average~~Greek ~~borrowing~~government’s ~~rate. Repairs~~measures ~~and~~to ~~maintenance~~curb ~~are~~inflation ~~expensed~~such as ~~incurred. The~~high ~~cost~~real ~~and related accumulated~~interest ~~depreciation~~rates, ofthe ~~assets~~Company ~~retired~~does ornot ~~sold~~believe ~~are~~inflation ~~removed~~has ~~from~~had ~~the~~a ~~accounts~~material ateffect ~~the~~on its ~~time~~results of ~~sale~~operations orfor ~~retirement, and any gain or loss is included in~~ the ~~accompanying~~ ~~consolidated~~periods ~~statements of income~~presented. ~~For~~Greece ~~statutory~~experienced ~~reporting~~rates ~~purposes,~~of ~~the~~inflation ~~Company~~of 3.1% ~~was obliged to revalue its property, plant~~ and ~~equipment at various dates following the provisions of the respective mandatory tax laws~~2.8% ~~These revaluations have been reversed~~ in the year 2003 ~~accompanying~~and ~~consolidated~~for ~~financial statements, after giving effect to~~ the ~~related deferred~~six ~~income~~months ~~taxes. The reversal of~~ended ~~the~~June ~~net~~30, ~~revaluation~~2004, ~~gains is reflected as a separate component of shareholders’ equity~~respectively.

ImpairmentForeign ofExchange Long-LivedRate Assets: The U.S. Financial Accounting Standards Board issued SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long lived assets. The Company adopted SFAS No. 144 as of January 1, 2002, without any effect on the Company’s financial position and results of operations. The standard requires that long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss for an asset held for use is recognized, when the estimate of undiscounted future cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount. Measurement of the impairment loss is based on the fair value of the asset.Fluctuation

~~Goodwill:~~Substantially ~~Goodwill~~all ~~is the excess~~ of the ~~purchase price~~ ~~over~~Company’s ~~the~~operations ~~fair~~are ~~value~~conducted ~~of net identifiable assets acquired~~ in ~~business combinations~~Greece ~~accounted~~and, ~~for~~ as a ~~purchase. Prior to January 1~~result, ~~2002,~~the ~~goodwill was~~Company’s ~~amortized~~operating onresults adepend ~~straight-line~~on ~~basis~~the ~~over~~prevailing ~~periods~~economic ~~not~~conditions ~~exceeding~~in ~~20 years~~Greece. ~~Effective~~ Furthermore, ~~with~~substantially ~~the~~all ~~adoption~~ of ~~SFAS~~the Company’s ~~No.~~revenues ~~142~~are onin ~~January~~Euros. The Senior 1,Notes ~~2002,~~are ~~the~~denominated ~~Company~~in ~~is no~~dollars ~~longer amortizing goodwill,~~ and iswill ~~instead~~require ~~testing~~the itCompany ~~for~~to ~~impairment at~~make ~~least~~all ~~annually.~~principal ~~Impairment~~and ~~loss~~interest ispayments ~~recognized~~thereon ~~when~~in ~~the~~dollars. As ~~estimated~~a ~~expected future~~result, ~~cash~~the ~~flows~~Company ~~(undiscounted~~may ~~and~~be ~~without~~subject ~~interest)~~to significant ~~are~~foreign ~~less~~exchange ~~than the carrying amount of the asset~~risks.

~~Income taxes:~~ The Company’s ~~estimates~~functional currency ofis ~~income~~the ~~taxes~~Euro. At ~~and~~each ~~the~~balance ~~significant~~sheet ~~items~~date, ~~giving~~all ~~rise~~monetary ~~to the deferred~~ assets and liabilities ~~are described~~denominated in ~~Fage’s~~other ~~2002~~currencies, including ~~annual report (Form 20-F). These reflect~~ the ~~assessment~~ ofSenior ~~actual~~Notes, ~~future~~are ~~taxes~~adjusted to bereflect ~~paid on items reflected in~~ the ~~financial~~ ~~statements,~~then ~~giving~~current ~~consideration to both timing and probability of~~exchange ~~these estimates~~rate. ~~Actual income taxes could vary from these estimates due to future changes in income tax law or on results from final review of our tax returns by the competent tax authorities.~~

~~ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~19

~~Inflation~~The resulting decrease or increase is reflected on the Company’s income statement as foreign exchange loss or gain.

~~Although~~ITEM ~~the~~4 ~~Greek economy~~- ~~has~~CONTROLS ~~long~~AND been subject to both high levels of inflation and the effects of the Greek government’s measures to curb inflation such as high real interest rates, the Company does not believe inflation has had a material effect on its results of operations for the periods presented. Greece experienced inflation rates of 3.6% and 3.8% for the year 2002 and for the nine months ended September 30, 2003, respectively.PROCEDURES

19An evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of June 30, 2004 was carried out by the Company under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures have been designed to provide, and are effective in providing, reasonable assurance that the information required to be disclosed by the Company in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of control over financial reporting can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Subsequent to the date of the most recent evaluation of the Company’s internal control over financial reporting, there were no significant changes in the Company’s internal control over financial reporting or in other factors that could significantly affect the internal control over financial reporting, including any corrective actions with regard to significant deficiencies and material weaknesses.

~~Foreign Exchange Rate Fluctuation~~20

~~Substantially~~PART all of the Company’s operations are conducted in Greece and, as a result, the Company’s operating results depend on the prevailing economic conditions in Greece. Furthermore, substantially all of the Company’s revenues since January 1, 2002 are in euros. The Senior Notes are denominated in dollars and will require the Company to make all principal and interest payments thereon in dollars. As a result, the Company may be subject to significant foreign exchange risks.II

~~The~~ITEM ~~Company’s functional~~1 ~~currency~~- isLEGAL the euro. At each balance sheet date, all monetary assets and liabilities denominated in other currencies, including the Senior Notes, are adjusted to reflect the then current exchange rate. The resulting decrease or increase is reflected on the Company’s income statement as foreign exchange loss or gain.PROCEEDINGS

~~ITEM~~No 4material –changes ~~CONTROLS~~have emerged ~~AND~~with ~~PROCEDURES~~respect to the legal proceedings in which the Company is involved and which are incidental to the conduct of its business. The Company does not believe that the outcome of any of these legal proceedings will have a material adverse effect on the business, financial condition or prospects of the Company.

AnITEM ~~evaluation~~2 ~~of the~~- ~~effectiveness~~CHANGES ofIN ~~the design and operation of the Company’s disclosure controls and procedures as of September 30~~SECURITIES, ~~2003~~USE ~~was~~OF ~~carried~~PROCEEDS ~~out~~AND byISSUER ~~the~~PURCHASES ~~Company under~~OF ~~the supervision and with the participation of the Company’s management,~~EQUITY including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures have been designed to provide, and are effective in providing, reasonable assurance that the information required to be disclosed by the Company in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Subsequent to the date of the most recent evaluation of the Company’s internal controls, there were no significant changes in the Company’s internal controls or in other factors that could significantly affect the internal controls, including any corrective actions with regard to significant deficiencies and material weaknesses.SECURITIES

20None

~~PART~~ITEM II3 - DEFAULTS UPON SENIOR SECURITIES

~~ITEM 1 - LEGAL PROCEEDINGS~~None

NoITEM ~~material changes~~4 ~~have~~- ~~emerged~~SUBMISSION ~~with~~OF ~~respect~~MATTERS toTO ~~the~~A ~~legal~~VOTE ~~proceedings in which the Company~~OF is involved and which are incidental to the conduct of its business. The Company does not believe that the outcome of any of these legal proceedings will have a material adverse effect on the business, financial condition or prospects of the Company.SECURITY-HOLDERS

~~ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS~~None

~~None~~ITEM 5 - OTHER INFORMATION

~~ITEM 3 - DEFAULTS UPON SENIOR SECURITIES~~None

~~None~~ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

~~ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS~~None

~~None~~21

~~ITEM 5 - OTHER INFORMATION~~SIGNATURES

~~None~~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, in Athens, Greece.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

	FAGE DAIRY INDUSTRY S.A.

Date: August 11, 2004		By:	/s/ Ioannis Filippou
		Chairman of the Board

Date: August 11, 2004		By:	/s/ Kyriakos Filippou
		Chief Executive Officer and Director

Date: August 11, 2004		By:	/s/ Christos Koloventzos
		Chief Financial Officer

~~None~~22

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, in Athens, Greece.

	FAGE DAIRY INDUSTRY S.A.
Date: November 14, 2003		By:	/s/	Kyriakos Filippou
				Chairman of the Board
Date: November 14, 2003		By:	/s/	Ioannis Filippou
				Chief Executive Officer and Director
Date: November 14, 2003		By:	/s/	Christos Koloventzos
				Chief Financial Officer

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