SOURCE: Thomson

October 31, 2006 02:05 ET

Thomson secures agreement with TCL on the resolution of the TTE situation in Europe

Boulogne Cedex -- (MARKET WIRE) -- October 31, 2006 -- Thomson secures agreement with TCL on the resolution of the TTE situation in Europe

Paris, October 31, 2006 -Thomson (Euronext Paris: 18453, NYSE TMS) has reached an agreement with TCL Multimedia, which is listed on the Hong-Kong Stock Exchange and is the parent company of TTE, in order to both facilitate TTE's evolution in Europe and to secure a continuation of activities at Thomson's factory in Angers, in addition to resolving certain issues Thomson had with the existing contractual framework.

TCL Multimedia Group has announced plans for a significant restructuring in Europe which should enable it to re-launch in the coming months TV activities under a largely reshaped business model.

Against this backdrop, Thomson has found an agreement with TCL Group in order to amend the terms of certain existing agreements and to resolve various outstanding financial matters. This agreement focuses particularly on questions related to the license to use the Thomson brand in respect of televisions, which will now cease at end of 2008 for most of Europe, and to enabling activity to continue at Thomson's Angers factory.

Whichever business model is chosen for its activity in Europe, TCL Group is committed to maintaining the specified order level at the Angers factory until end of 2008. This level will lead to a step-up in Thomson's plans for conversion and diversification of the site.

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 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:

|   Press Relations  |                   |                    |
|  Martine Esquirou  |  +33 1 41 86 58 51|martine.esquirou@tho|
|                    |                   |            |
|  Marine Boulot     |  +33 1 41 86 55 97|marine.boulot@thomso|
|                    |                   |               |
|  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|
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