Source Comments

Source 1:

Advisor to an elected MP in Thessaloniki and former business manager in a law firm in that city-knows
the business life of Thessaloniki well from a political and corporate perspective-lives there as well

The source first of all relays that Michailides family is closely attached to the party PASOK and are big
financial donors to this party for decades. At the same time they are in odds with the current SYRIZA
government-it could be said that they are the most powerful "anti-SYRIZA" force in Thessaloniki,
something which contributes to their downfall presently”. Furthermore Michailides family is a definite
part of the elite in business and social terms of Thessaloniki and is wealthy and very influential.

Their suppliers are tobacco producers from all around Greece and especially Thrace and Eastern
Macedonia districts. They have also major suppliers from Turkish Thrace region, Southern Bulgaria
and FYROM. Source pointed out that "they’re the largest by far tobacco traders, wholesalers and
suppliers all over Southeast Europe". Moreover their clients are mostly Philip Morris, RJ Reynolds and
other multinational cigarette companies.

Furthermore it is known that "Michalides family is closely attached to ship owner "Vangelis Marinakis"
who is also the owner of Olympiakos football team and has been a controversial figure over the past
few years since he was associated in fixing matches”. Michailides's niece worked as a legal counsel
for Marinakis for several years.
Furthermore that has led “the Michailides family into conflict with 'Ivan Savides" a Greek-Russian
businessperson who also owns PAOK football team and also owns a tobacco company named
SEKAP which is in fierce competition with Michailides tobacco”. Savides is known to be closely
attached to Syriza and wants to "take over at least part of the Michalides tobacco infrastructure". Also
it has to be noted that Marinakis is a person known to have assets in offshore companies in Marshall
islands, Jersey and Guersney and also Cayman islands. Thus if Michailides turned to him for help
these would be likely jurisdictions he would set up entities.

The "Leaf Tobacco A.Michailides" entity which is experiencing grave financial problems is known in
Greece as "ΚΑΠΝΙΚΗ ΜΙΧΑΗΛΙΔΗ ΑΕ", but the family also owns the tobacco companies:
"ΜΕΣΟΓΕΙΑΚΗ ΚΑΠΝΙΚΗ Ε.Π.Ε." translated as "Mediterranean Tobacco Limited" and another one in
Greek known as "Α. ΜΙΧΑΗΛΙΔΗΣ ΑΕ ΑΓΡΟΤΙΚΕΣ ΒΙΟΜΗΧΑΝΙΕΣ" which also deals with Tobacco.
Lastly source assured that "The big company which is the leaf tobacco one’s been re-allocated its
corporate base from Thessaloniki to Cyprus over the past few years, it’s essentially a Cypriot
company the present day".

Source 2: German official from the German services.

The source is a German official from the German services with more than 15 years of experience.
Based in Athens for more than five years. Germans are monitoring closely the Greek economy
because this is also a political issue in Germany, which has put a lot of money for the economic
bailout.

We investigated LTAM in context of economic bailouts because we had suspicions siphoning money
out from LTAM to an affiliated tobacco company. No, MICHAILIDES hasn’t siphoned money through a
provider in Northern Greece. Apparently, it seemed the case, but it is not, it is simpler: as LTAM sells
everything outside Greece, they have privileged access to foreign bank financing, especially since
they are in Cyprus. This does not happen with local producers, who are going through very difficult
times for many years because of the Greek crisis. MICHAILIDES was not interested in any of his local
producers breaking, and that's why he lent money to this producer, but legally. This is on account
balances as a loan from one company to another. In summary, we can say that LTAM saves a
supplier financially because LTAM has access to external financing and is not interested in having it’s
suppliers fail. But this is legal, although I understand that, viewed from the outside, it may seem like a
drawdown of money from one company to another.

As for if MICHAILIDES is using two of his companies that are seemingly unrelated but appear to also
have tobacco production licenses I can actually say that Mediterranean Tobacco makes, say, the
least pleasant part of the business because they are the ones who sell in more unstable and
conflictive markets. Even controversial. Countries at war and under certain sanctions or at war, like
Syria or Russia. But I do not see that this supposes that Michailides wants to use it like "refuge" if
LTAM breaks. It seems to me an inconsistent correlation. No one here believes that.

Furthermore, we did exhaustive investigations into the assets of Greeks abroad when the bailouts
were approved. And MICHAILIDES was among them. We inform both the EU, the IMF and the Greek
Government. MICHAILIDES later repatriated money from Switzerland during some of the tax
amnesties approved by various Greek governments to date. This has to do with some pressure from
Greece, that seems clear. But 90% of the upper middle class and the upper-class Greek have a lot of
money out of the country, about EUR 80,000 million are in Switzerland. Now a little less, but the figure
is crazy in a country with so many difficulties. I mean, we all have money there, our man too.

As for where he has money, I confirm he has several million euros or dollars in Switzerland and
Cyprus. Also in UK, Bulgaria, Turkey and India, but this is more related to their business activity. The
problems are those of Switzerland and Cyprus, because in both places there is enough opacity or
laxity. The company's main financial backer is a British bank (FBN UK), and one of its main clients
(BAT) is in the UK, so its presence there is strong but obliging. The relocation of Greece's
headquarters to Cyprus was a demand of that bank, which was frightened by the situation of possible
default in Greece, but the truth is that from Cyprus all movements with Switzerland are simpler. And
finally, it also has accounts in India and properties (lands, although it does not specify whether
productive or not) in India. As for real estate surely, he has more in name of others, but for now I see
several properties in Greece, others in Cyprus and another in the UK. But I have no more data.
Although the total valuation is about tens of millions of euros.