SOURCE: Thomson

September 21, 2006 06:32 ET

Thomson Further Consolidates its Worldwide Leadership in Advanced Service Gateways during the First Half of 2006

Boulogne Cedex -- (MARKET WIRE) -- September 21, 2006 -- Thomson Further Consolidates its Worldwide Leadership in Advanced Service Gateways during the First Half of 2006

Report Published by Leading Market Research Firm, Dell'Oro Group, Confirms Thomson's Leadership in the Triple Play-Enabled Service Gateway Market during H1'06 with 49.8% Revenue Market Share Worldwide

Paris, 21 September 2006 - Thomson (Euronext 18453; NYSE: TMS), today announced it has further strengthened its number one market share position worldwide for sales of dual and triple-play enabled gateways to telecom operators and ISPs for the first half of 2006, according to Dell'Oro Group, a leading market research firm for the telecommunications industry. During the first half of 2006, Thomson has achieved 49.8 % market revenue share worldwide.

Thomson's worldwide leadership has been further reinforced thanks to the swift market transition from entry-level modems to more sophisticated platforms known as residential gateways which enable operators to deliver diversified and advanced services such as triple and even quadruple play services (Internet, Voice over IP, IPTV and mobility). Such services provide telecom operators and ISPs with a key competitive advantage, and require a sophisticated home-based network element to be deployed efficiently and in large volumes to optimize Average Revenue Per User (ARPU). This network element also needs to be ready to deliver future services as these are rolled out.

Having anticipated this market evolution, the Group has been delivering increasing volumes of advanced gateways such as the customized Livebox (France Telecom), AOLbox (AOL Europe), and Fastweb box for telecom operators and ISPs worldwide, as well as highly successful generic platforms such as the Thomson ST780 VoIP gateway.

Thomson's Market Leadership Also Extends to All Modems and Routers

Thomson has been leader for all DSL[1] modem and router sales since 1999 and has further extended its lead over the competition in H1'06 with 17.8% revenue market share worldwide. Furthermore, with more than 4.2 million DSL modems and gateways shipped during the first half of 2006, Thomson is outpacing any other vendor on the market.

"These significant achievements in market share further demonstrate our commitment to supporting our telecom operator and ISP client base with cutting-edge and customized service gateways as the platform of choice for the delivery of even more advanced and sophisticated IP services," stated Jacques Dunogué, Senior Executive Vice President, Systems Division at Thomson.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

About Thomson — World leader in digital video technologies

Thomson (Euronext Paris: 18453; NYSE: TMS) provides technology, services, and systems & equipment to help its Media & Entertainment clients - content creators, content distributors and users of its technology - realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA, and Thomson brands. For more information: http://www.thomson.net.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit http://www.delloro.com

+--------------------+-------------------+--------------------+
|   Press Relations  |                   |                    |
+--------------------+-------------------+--------------------+
|  Martine Esquirou  |  +33 1 41 86 58 51|martine.esquirou@tho|
|                    |                   |mson.net            |
+--------------------+-------------------+--------------------+
|  Julie Dardelet    |  +33 1 41 86 65 24|julie.dardelet@thoms|
|                    |                   |on.net              |
+--------------------+-------------------+--------------------+
|  Jasmine Khounnala |  +33 6 03 81 48 56|jasmine.khounnala@th|
|                    |                   |omson.net           |
+--------------------+-------------------+--------------------+
|  Investor Relations|                   |                    |
+--------------------+-------------------+--------------------+
|  Marie Boidot      |  +33 1 41 86 51 00|marie.boidot@thomson|
|                    |                   |.net                |
+--------------------+-------------------+--------------------+
|  Laurent Sfaxi     |  +33 1 41 86 58 83|laurent.sfaxi@thomso|
|                    |                   |n.net               |
+--------------------+-------------------+--------------------+
[1] Digital Subscriber Line - a technology that dramatically increases the digital capacity of ordinary telephone lines (the local loops) into the home or office.

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