SOURCE: EVS BROADCAST EQUIPMENT

July 07, 2006 10:57 ET

EVS BROADCAST EQUIPMENT : Strong Order Intake of 26.6 Million EUR in 2Q06 - Revised Guidance: 2006 TV Sales Growth by More Than 30%

LIÈGE, BELGIUM -- (MARKET WIRE) -- July 7, 2006 -- EVS Broadcast Equipment S.A. (ISIN BE0003820371, Bloomberg EVS BB, Reuters EVSB.BR), the leader in Professional Digital Video applications for Live TV Production and Digital Cinema has issued the following trading update at the end of the six months ended 30 June 2006. As previously indicated, results for the second quarter and first half year 2006 will be released September 7, 2006.

First half year performance has been in line with the guidance given in May: 2Q06 sales shall end in the range of 21-22 million EUR, up 170% compared to the weak 2Q05.

Group order intake was very strong in the second quarter, especially in May and June, up 68% to 26.6 million EUR over last year's 15.8 million EUR. The 3 largest orders are: 2.0 million EUR for one of the largest digital newsrooms in Russia, 2.0 million USD for 2 HDTV trucks for NFL and Nascar coverage in the US, and 1.2 million EUR for 2 new hybrid SD/HDTV trucks in India. These orders are mainly to be shipped after the WorldCup. The excellent progress on orders reflects the ongoing success of the XT[2] platform combined with new applications like [IP] Director on all market segments and over all regions.

This performance is explained by the combination of the following long term growth drivers: transition to tapeless workflows from 70% tapebased penetration today, replacement market due to HD format conversion, launch of new products to address the near-live studio production needs, need of new "speedclipping" tools to fragment the content to multimedia environments, and an increased focus of broadcasters / IPTV and advertisers on large popular sports to gain new viewers.

The European market is performing very well, particularly in Germany, Benelux and the UK despite HDTV penetration still remaining low and HDTV consumer receivers and set-top boxes are just appearing in the market. 90% of installed EVS professional solutions in Europe are still in SDTV format ("Standard Definition"). The US market is benefiting from HDTV deployment which currently reaches 15% of households and should reach 20% in the near term, which encourages broadcasters to upgrade their production equipment to HDTV format. EVS has gained strong references in large networks for studio oriented tools. Latin America sales are expected to double compared to 2005. Asia & Pacific continue to achieve strong revenue growth with orders from major customers in Japan, China, India, Australia, Singapore and Korea. Sales should more than double in this region over 2006.

While visibility remains limited as usual, the Board gains confidence with the strong order flow following the sport events which underlines the company's potential to gain market shares in new segment opportunities. The Board anticipates that TV sales for 2006 should increase by more than 30% year-to-year to exceed 70 million EUR. Earnings shall increase slightly more due to the balanced cost structure of the group. The group continues actively to recruit key skills in the company headquarters and all foreign offices to reinforce R&D power, market presence, training of new operators and products branding.

XDC remains leader of digital cinema equipped screens with more than 230 screens in Germany, Austria, France, Italy, The Netherlands, Luxembourg, Sweden, UK, Switzerland and Belgium. XDC not only develops and sells servers but proposes packaged solutions targeted to all size exhibitors groups all across Europe. As announced mid-June, XDC raised 12.5 million EUR additional equity and EVS share in XDC has decreased to 47% from 60%, leading to a change in the consolidation method of XDC stake in the consolidated accounts of EVS: XDC 47% stake shall be booked at equity method as of July 1, 2006 rather than globally consolidated as it had been the case until June 30, 2006. XDC losses for 2006 are expected to be around 4 million EUR. Thanks to the recent fund raising, XDC prepares the roll-out of 500 additional screens over the next 30 months.

EVS capital is currently made up of 13.875.000 outstanding shares of which 300.655 are owned by the company.

Corporate Calendar:

Thursday 7 September 2006: 2Q06 & 1H06 sales & earnings

Thursday 9 November 2006: 3Q06 sales & earnings

For more information, please contact:

Jacques GALLOY, Director & CFO, EVS Broadcast Equipment

Liege Science Park, 16 rue du Bois Saint Jean, B-4102 Liège- Ougree, Belgium

Tel : +32 4 361 7014; e-mail : corpcom@evs.tv; www.evs-global.com

Forward Looking Statements

This press release contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS's management and are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company's concentration on one industry, decline in demand for the company's products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. EVS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About EVS Group

EVS Group designs, develops and markets professional digital equipment for Television (EVS Broadcast) and Cinema (XDC). The Group employs over 180 persons in 10 countries and sells its products to professionals of the video and audio sectors in more than 70 countries. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371. For more information, refer to www.evs-global.com

EVS Broadcast is the world leader for Live TV Production Digital Disk Recorders and Related Software Applications, especially in the field of sports. The company's dedicated hardware and software suite offer a complete production platform: live slow motion (LSM), high speed slow motion, replay only, clips generation, quick clips editing, real-time SD/HD video files transfer, time delay, multi-camera recording, metadata association, graphics storage and play-out, digital transmission, multi-format ingest and play-back, audio record & edit, webcasting, mobile phone clipping. Main software applications like the "IP Director" are running on the dedicated robust and flexible hardware the "XT[2] Platform". The world's leading broadcasters, such as NBC, BSkyB, FOX, RTL, NHK, CANAL+, ABC, ESPN, TF1, CCTV, PBS, CBS, BBC, ZDF and many others use EVS' solutions.

XDC is pioneering Digital Cinema Logistics and Play-out and operates between the movies distributors and exhibitors. XDC has installed more than 230 digital screens in Europe where it is market leader for end-to-end digital cinema solutions..

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