OPAP S.A. (hereinafter "OPAP") was founded in 1958 as a private legal entity and a year later introduced PRO-PO, a mutual sports betting game. At that time OPAP's mission statement was to subsidise and financially support athletic, social and cultural events rather than to generate profits for shareholders.

In 1999, OPAP was transformed into a "Societé Anomyme" with the Government of the Hellenic Republic being the sole shareholder. The same year it rolled-out its online computer network, permitting more games to be added and faster declaration of results.

In 2000, the Hellenic Republic granted OPAP a 20-year licence at a cost of 323 million euros.

A year later, in 2001, OPAP's shares were listed on the Athens Stock Exchange.

In 2003 an agreement with the Cyprus Republic resulted in OPAP operating on a commercial basis rather than on break even point and a fixed odds betting company in Cyprus was acquired.

Today, OPAP is deemed one of the most successful and profitable companies on the Greek Stock Exchange.

Currently capitalized at around 10 billion euros, OPAP is one of the largest listed gaming companies in Europe, with operations in Greece and Cyprus. It commands 52 percent of the total Greek gaming market that includes national lottery, horse race betting and casinos.

OPAP is the largest gaming company in Greece with 2005 revenues of 3.7 billion euros and adjusted EBITDA of 714.3 million Euros. A total dividend of €1.42 per share was paid for FY 2005.

OPAP's share price has significantly outperformed the Athens Exchange, as well as the other major European leisure indices, not only since the IPO in April 2001, but also since the Secondary Offerings in 2002, 2003 and 2005.

The company has the sole concession to operate and manage nine existing numerical lottery and sports betting games, as well as two new numerical lottery games, which it has yet to introduce. The company also holds the sole concession to operate and manage any new sports betting games in Greece, as well as a right of first refusal to operate and manage any new games that may be permitted and regulated by the Hellenic Republic in the future.

The six current numerical games are Joker, Lotto, Proto, Extra 5, Super 3 and Kino. The latter was introduced in late November 2003. The sports betting games include Stihima for fixed-odds and Propo and Propo-goal for mutual betting.

OPAP's games are sold through a distribution network of over 5,350 agents, by far the largest online retail network in Greece.

Agents may not sell products other than those of OPAP or the Hellenic Republic gaming products, unless explicitly permitted by OPAP.

Agents receive a fixed percentage of revenue based on actual sales. For Stihima and Super 3 they receive 8% of actual sales, for KINO this is 7% and for all other games they receive 12%. An additional 1% on KINO sales is retained by OPAP for upgrading the agents' shops decor and infrastructure.

Although these agents are independent and their premises not owned by OPAP, their equipment (terminals & KINO decoders) are supplied and supported by OPAP.

The online technology also permits the monitoring and controlling of revenues. OPAP can monitor when and how payments from agents come in, but also do credit checks to make sure that large debts are not build up.

OPAP is pursuing a strategy aimed at delivering sustainable earnings growth and value for the shareholders within a framework of social responsibility.

To maintain the company's position as the market leader in the Greek gaming industry, OPAP invests continuously in the development of new games and redesigns existing games to make them more attractive to OPAP's customers.

It is OPAP's continuous monitoring of the market that recently revitalized one of the most popular games "Stihima". The game was loosing market share to illegal operators and lack of new options. The payout was increased, betting in more sports as well as non sport activities expanded, "in play" (live betting) and "over - under" betting was launched and Greek championship matches introduced.

Furthermore, OPAP intends to launch new games as well as redesign existing ones. During Autumn 2006, OPAP is planning to introduce a new lottery game, Bingo Lotto, which will be played through nationally televised draws. Recently OPAP also updated Propo, the mutual sports-betting ticket in a manner that is internationally innovative.

Updating the technological platform and infrastructure remains one of OPAP' s priorities taking into consideration the importance of IT in the lottery business

By virtue of its position as the market leader in the Greek gaming industry, OPAP believes that operations have a significant impact on the public's gaming activities. These should be carried out in a socially responsible manner, in accordance with the Hellenic Republic's regulations relating the industry. To this end, OPAP has split the marketing strategy between sponsorship of sports and cultural activities and selective advertising and promotional activities. The company believes that this will enhance trust in the OPAP's brand while directing the public's gaming activity away from illegal operators.

In general, OPAP aims at attracting a wider customer base, principally from the illegal gaming market, by offering games that target broader audiences.

OPAP also intends to diversify its operations into areas outside of its concession contract. In particular, it plans to capitalize on the strength of its on-line network by providing commercial services to the general public. In the current bid to renew the IT infrastructure OPAP foresees potential support for services such as paying utility bills and selling on-line tickets for various events.

In addition, OPAP will continue to evaluate opportunities to further diversify its operations through selective international expansion.

Outside the Concession, OPAP is developing business opportunities, such as operations in Cyprus. These were previously conducted on a non-profit basis, but are now run on a regular commercial basis. The company has also completed several acquisitions in Cyprus, that provided a natural extension to the existing operations there, as well as gaming know-how. These acquisitions will be valuable in the medium term.

Internet, telephone or digital TV betting are not currently permitted in Greece. There is therefore a significant illegal market available to players through these channels, which is being actively fought against. In the short term, attractive games are offered, investments are made in strategic advertising, and illegal operators and their advertisers are taken to court, while the Hellenic Republic is encouraged to take further measures to limit illegal gambling. In the medium term, attractive new games are being introduced. In the long term, a strong presence in these electronic gaming fields is foreseen, if and when they are legalised.

Government lottery business is not only about making money. It is also about giving for good causes. OPAP has a consolidated policy to sponsor athletics, culture, health and education. Through a balanced programme, all kinds of sports are fostered, not only the most popular ones. OPAP supports health through subsidies to causes including the rehabilitation of drug addicts and support for the handicapped. Museums, theatrical events, churches, conferences and other civic events form part of the company's support to culture. Last but not least, education is fostered. Several institutions from all grades of education receive contributions regularly. In fact, OPAP publishes yearly a social responsibility report to let the public know about the company's giving to good causes.

With all these in mind, OPAP is a forward thinking corporation, with solid business, good management and full social responsibility. Every effort will be made to keep it that way and improve it.