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MARAI'L

FRAGOS S.A. 423B, Vouliagmenis Ave., 163 46 Helioupolis - Athens, Greece. Tel.: +30 2109971000, Fax: +30 2109971099 www.marasil.gr

Dear Entrepreneur,

With this booklet in hand, we would like to present all the information and data which will assist you in forming a full picture of the Marasil brand name for children's clothes and in developing your own successful enterprise.

Our objective is that this first contact will become a springboard for a long-term collaboration and mutual benefit via a shared process of growth and development.

In the following pages, you will find information about the image, philosophy, position and performance of Marasil in the marketplace, about its dedication to quality and its production process, marketing and communication with the public, and about the ongoing support provided to the Marasil franchise system.

Thank you for the interest you have shown. We are looking forward to work together in the future.

With compliments Panagiotis Fragos President & C.O.

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MARAIIL

2000 2001

2004

2002

2003

TODAY'S SUCCESS,

A PROMISING FUTUREI

Marasil's successful performance over the years demonstrates a concept that fully covers the needs of it's target group and justifies the strategic choices that were made over the years and guarantees that it will continue to perform well in the future.

Marasil's performance and growth are indicative of its dynamic presence and strong position in the marketplace. Sales over the last five years have been rising steadily and placing it among the leading brands in the market.

The objective for the next five years is to strengthen and develop its network of stores using the franchising system and to expand further into the European and international market.

Against the economic indicators of an even more competitive environment, the company's strategy is to continually improve Marasil and to make it stand out from the competition, to continually strengthen its position and image in the marketplace while at the same time retaining its unique profile.

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MARA!" L EVERY KID'S FIRST CLOTHES

Unparalleled quality, great looks and unique style fully covering the children's needs and requirements, are principle values in Marasil's philosophy and they are not open to negotiation!

Marasil is one of the leading names in the world of children's clothing. For years now Marasil children's clothes have been creating a name for themselves in the Greek and international market. Designed with particular care, sensitivity and love, with neo-romantic elements and style, with a great range of patterns and colours available in combination with the high quality, aesthetic and practicality, Marasil's clothes have become a reference point for children's clothing. Today, Marasil clothes are "every kid's first clothes" and at the same time the best choice for parents.

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MARAI'L THE PRODUCT

Marasil clothes come in three basic collections: Newborn, Baby, Kid.

Marasil quality, for which the company has been known in the Greek market, is the result of many factors: knowledge, experience, specialisation, organisation, planning and above all dedication and care for the product manufactured. During the selection process for the most up-to-date fabrics and materials Marasil's staff show great dedication and carry out long-term tests. As a result Marasil clothing (romper suits, sets, pants, t-shirts, dresses, trousers, shirts, blouses, pullovers, jackets, baptism wear) is made from cutting edge technology materials and fabrics suitable for children's sensitive skin. The company's design department likewise pays great attention to detail and quality in terms of designs, colours and style.

MARAIIL MARKETING

In a deregulated, globalised market, marketing is of primary importance; it is the fertile ground in which talent, inspiration and ideas can be cultivated and developed, in order to meet the needs of a sensitive group: children.

Marasil's entire business activity, commercial policy and development, have been based on procedures required by the rules of modern marketing. In order to determine objectives and company strategy, the marketing department carries out market research, monitors and analyzes global trends and developments on a long-term basis, designs communication policy, network development and merchandise. Given the conditions in the competitive market, Marasil possess the know-how to continuously improve and adapt succesfully to the needs of its target market.

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In-store displays (decorative stands) The company uses top-quality promotional material with selected, enlarged subjects (vertical or horizontal stands) for instore decoration. These stands are used in window displays, at cash registers or other visible points inside stores.

Marasil catalogue The Marasil catalogue contains the complete collection for every season. This high quality, well-designed, impressive catalogue, presents Marasil fashion based on a specific concept, thus promoting and emphasising the unique aspects of the brand.

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Full coloured ads in magazines

Via dynamic photographs presented in the best, properly targeted magazines and complete presentations of its collections every season, Marasil embraces the general public presenting its own special, unique style.

Advertising bags

Paper bags with expensive shiny or matt paper, with two photographs from the relevant collection on two sides are used, helping to strengthen the image and brand awareness of Marasil products.

Television advertising Brand advertising using TY. Commercials with nationwide coverage. By choosing the appropriate channels and programmes based on significant budget, the company advertises its image, style, quality and the Marasil philosophy, to ensure that Marasil clothes are "every kid's first clothes".

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TQ' n;p n rQ TO'il' Il'Q'il':('O

MARAIlL ADVERTISING

Marasil designs and implements a complete communication policy. For years now Marasil has been consistently communicating with the public to ensure that its image and name are highly recognisable and thoroughly accepted by the public.

Above the line advertising via television spots, radio advertising and full coloured ads in magazines and below the line advertising using various promotional measures and other activities inside and outside stores, have kept Marasil up-to-date and continuously increase demand for its products. Modern outlook, innovation, high aesthetics and creative approach, dynamism and strategic choices are the main characteristics of Marasil's advertising approach, which stands out making it the leader in its field.

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THE FRANCHISE SYSTEM MARAI'L

In a dynamically developing business environment, the need to adapt to new circumstances and to move away from old practices is vital so that the company can ensure its continual growth and development.

Today the ability to change is considered to be a competitive advantage. For retail sale stores this means the existence of a new, clear, unique concept that will differentiate their merchandise from the competition and ensure a strong and continuously improving position in the marketplace.

Marasil's franchising system ensures and guarantees this performance, with various benefits such as:

• a powerful position in the marketplace offered by the dynamic, well-known Marasil brand name

• support with integrated, vertical marketing combined with

business independence

• high quality, competitive products with a strong image

• protection and coverage against the competition

• ongoing support and training through targeted seminars and workshops

In the children's clothing sector, placing your store under the Marasil umbrella is a strategic option, which guarantees you the security growth that only a leading company like Marasil can provide.

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COOPERATION AND BENEFITS

The Marasil network, operates as a protective shield for the modern businessman.

BENEFITS AND ADVANTAGES

awareness

./ a fully integrated business package

./ strong purchasing power via the network established by Fragos SA

./ complete collections of clothing for all children regardless of sex, age and for all social occasions, with high quality and at affordable prices

./ advantageous financial terms

./ an attractive promotional package ./ advertising support

./ organised, and reliable merchandise deliveries ./ large profit margins

Prepar i .,d organisat 0 package

./ advice in selecting the appropriate location for the store ./ guidance in the design & layout of the store

./ advice on store operating costs

./ assistance in selecting the product package ./ no entry fee required

Network franchisees have a significant advantage compared to the competition since they are offered:

./ security due to the prestige, dynamism and financial status of Fragos SA

./ a name with a high brand image and high brand

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Se lees provided on a consistent and continuous

./ ongoing support from the network without the obligation to pay royalties

./ staff training and development using innovative learning methods

./ support in the evaluation of the local market to increase store competitiveness

./ support in the local marketing and guidance on maintaining

and increasing the customer base ======================~

./ possibility to change specific slow-moving products

STORE PHILOSOPHY AND IMAGE MARAI'L

Uniformity in the image and the layout in which Marasil stores are presented, are some of the basic features of the network, which instils a sense of quality and trust in the Marasil brand name to the consumer's mind.

All Marasil stores have been developed, based on a specific and defined image, in terms of architectural design, the furnishings quality and the functionality of the store.

The minimal, romantic atmosphere, the purity and classical features of the interior of Marasil stores is strengthened by the furnishing used with the exceptional colour coordination within the shop and last but not least by the careful placement of the clothing and accessories.

Consumers looking for a friendly, warm environment, will find one inside every Marasil store.

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PHILOSOPHY

Marasil stores provide exceptional customer services and care, depending on each customer's needs and budget, within a pleasant and relaxed environment.

The objective of Marasil stores is to create a friendly, warm atmosphere, which will stimulate parents and young children alike.

LOCATION

Based on strategic planning, each store should be located in a central position, in areas with high levels of shopping activity.

SIZE

The main store area should be 70m2 and above and the shop front window should be more than 4 meters wide.

MERCHANDISE

All Marasil stores offer the full range of Marasil clothes and accessories covering all the needs of children aged from 0-10 years.

FURNISHING & DECOR

Furnishing for the interior is provided to the new members of the network via specialised associates and include furniture, decor, lighting, flooring, window displays, cloakrooms, counters and cash desks.

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ASSOCIATE PROFILE MARAI'L

Marasil places great importance in the selection of every new associate, who should be dynamic, reliable, with business vision, team player ready to successfully adapt to changes in the marketplace.

Associates should be able to follow the policies and procedures of the mother company and to adapt to the rest of the network, thus conveying the unique Marasil concept in every business activity.

Prerequisites required to commence collaboration are:

• a store in a central area (privately owned or rented)

• trust in the franchise system

• adequate finances to open and run a Marasil store

• excellent communication and cooperation skills.

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