SOURCE: EVS BROADCAST EQUIPMENT

November 09, 2006 06:15 ET

EVS Broadcast - Record 3Q06, 24.1m sales, 71% EBIT margin, Interim dividend 0.48 EUR

Ougrée -- (MARKET WIRE) -- November 9, 2006 -- PRESS RELEASE - 9 NOV 06 - Before market opening

Liège (Belgium), 9 November 2006, EVS Broadcast Equipment S.A. (ISIN BE0003820371, Bloomberg EVS BB, Reuters EVSB.BR), the leader in Professional Digital Video applications for Live, Near-Live and Studio TV Production, reports today its third quarter ("3Q06") and first nine months of 2006 ("9M06") financial results and provides a business update:

Highlights:

- RECORD 3Q06 SALES OF 24,1 MILLION EUR , UP 22% vs. 3Q05

- 71% EBIT MARGIN FOR 3Q06

- RECORD 3Q06 EPS OF 0,81, +29% vs. 3Q05

- STRONG BROADCAST ORDER BOOK OF 17,4 MILLION EUR

- STUDIO SOLUTIONS REPRESENT 33% OF THE ORDER BOOK

- 2006 SALES TO EXCEED 80 MILLION EUR, +50% vs. 2005

- YEAR 2007 TO BE A TRANSITION YEAR

- BOARD REORGANISATION

- INTERIM DIVIDEND OF 0,48EUR PER SHARE

Group Revenue and Performance

Pierre L'Hoest, CEO of EVS said: "Following a very strong first half driven by major sport events, the third quarter reaches another record quarter with 24,1 million EUR revenues, up 22% compared to the third quarter of last year. Over the first nine months, this increase even represents +86% or an additional 30,5 million EUR in absolute terms to 66,1 million EUR. This great performance is explained by the overall successes of our key digital products XT[2]® and [IP]Director® in all territories where our teams are working very hard to manage this continuous growth for the fifth quarter in a row".

Commenting on the results, Jacques Galloy, CFO said: "Continued sales growth translates into strong operational gearing, leading margins to record levels. The 71% EBIT margin for the third quarter 2006 leads to a 68% EBIT margin for the first nine months of 2006, compared to 60% in 2005. The strong combination of reliable dedicated hardware, innovative software applications, engineering design and field support fuelled EVS growth in both sales and earnings. The second half of the year shall clearly beat our earlier expectations".

+-------------------------+------+------+------+------+---------------+
|Revenues – in million EUR|  3Q05|  3Q06|  9M05|  9M06|  % 9M06 / 9M05|
+-------------------------+------+------+------+------+---------------+
|TV Systems (Broadcast) 1)|      |      |      |      |               |
+-------------------------+------+------+------+------+---------------+
|Total                    |  19,7|  24,1|  35,6|  66,1|         + 86 %|
+-------------------------+------+------+------+------+---------------+
|Total at constant        |  19,7|  24,0|  35,6|  65,9|         + 85 %|
|exchange rate            |      |      |      |      |               |
+-------------------------+------+------+------+------+---------------+
1) As from June 27, 2006, EVS has decreased its stake in XDC from 60.17% down to 47.20%. Accordingly, XDC S.A. is accounted for at equity and is no longer fully consolidated in EVS group consolidated accounts.

Broadcast

EVS Broadcast sales reached 66,1 million EUR over the first nine months, which is a +85% growth at constant exchange rate. Ahead of the new TV season and program grids starting September, EVS delivered record volumes to broadcasters during summer, partly to fixed studio production environments. This evidences EVS equipment lower and lower dependency on large worldwide sporting events. Major broadcasters are adopting our evolutionary platform which fits their complex production workflows.

Geographically, EVS Broadcast sales grew in all regions over the first nine months of 2006. Europe, Middle-East and Africa ("EMEA") sales added 16 million EUR (+74%) from Russia to Morocco and from Germany to the UK, 55 % of sales being HD. As outlined by "Das Medien Bulletin - September 06", all first 71 HD Trucks in Europe are powered by the XT[2] ® HD platform. 3Q06 sales included the last third of the World Cup equipment rental & service agreement. America's revenues ("NALA") increased by 11 million USD (+93%) thanks to the replacement cycle of outside broadcast trucks migrating to HDTV but also to major studio projects wins within premium customers. Last but not least, Asia and Pacific ("APAC") sales grew by +129% (or 6 million EUR) to 10,7 million EUR mainly thanks to Japan, China, India, Australia, Singapore and Korea. EVS technology shall power the upcoming Asian Games in Doha (Qatar) through its partnership with HBS, which shall deploy a central media server with dozens of online accesses to the thousands of videoclips associated with metadata.

Twenty six percent of the period's sales relate to studio networked systems designed for talk shows, entertainment shows, news or automated play-out, for which "speed to air" is a key success factor. Sales for near-live studio solutions amount to 17,3 million EUR, + 79% compared to 2005. EVS presented successfully its latest line up of products at IBC2006 Tradeshow in Amsterdam last September. Customers warmly welcomed EVS integrated tapeless solutions for the critical near-live environment and much appreciated the demonstrations in the new Partners' Village area to interchange seamlessly high-end video content between EVS servers and the most popular post production solutions like Apple, AVID, Leitch etc. EVS favours an open architecture policy.

XDC - Digital Cinema

Following EVS dilution in XDC from 60,17% down to 47,20% last June 27, 2006, XDC accounts is booked in the equity accounting method after June 27, 2006 rather than globally consolidated as it had been the case prior to this date. While only 1% of European, screens have been digitised so far, major discussions are ongoing regarding the business model of Digital Cinema. Between Theater exhibitors, movie distributors and digital service providers, the key issue remains who shall bear the cost of deployment and who shall benefit from the annual 1 billion EUR saving from the switch-over to digital. 2006 is a transition year for XDC. Early 2007, XDC shall be one of the first companies in the world to release the long awaited hybrid MPEG2-JPEG2000 server. Building a first class service company addressing the complex and fragmented European cinema market, XDC shall incur a loss of around 5 million EUR in 2006. The recent additional 12,5 million EUR fund raising by both existing and new shareholders allows XDC to gain traction in this promising market.

Result

Thanks to higher sales combined with the fixed costs base and the deconsolidation of XDC as from June 27, the 9M06 EBIT margin jumped to 68% compared to 60% for 9M05, ex. XDC. Over the same period, gross profit reached 86%. Over 3Q06, the gross profit of TV activities yielded 88%, highlighting the software & service profile of the company. As explained earlier, 2Q06 higher expenses included non-recurring charges as stock based compensations to employees and new corporate marketing policy. The Amsterdam IBC trade fair in September has also been less expensive than the USA NAB trade fair in April. Eventually, one should notice that non recurring big events rentals (4,5 million EUR over 9M06) generated below average EVS operational margins. Taking into account XDC 3,3 million EUR dilution profit, basic net profit per share reaches 2,27 EUR over 9M06, up 141% compared to 0,94 EUR for 9M05.

Net Cash and Corporate Events

On September 30, 2006, the group balance sheet shows 33,7 million EUR in cash at the bank and 2,8 million in long-term bank debts, leading to a net cash position of 30,9 million EUR. At the end of the quarter, EVS share capital equalled 13.875.000 outstanding shares of which 290.902 are owned by the company. At the same date, 199.100 warrants are outstanding with an average strike price of 18,14 EUR and an average maturity of 2,4 years.

+-------------------------+------------+------------+------------+------------+
|Profit & Loss            |     3Q05   |     3Q06   |     9M05   |     9M06   |
+-------------------------+------------+------------+------------+------------+
|Key Consolidated figures |            |            |            |            |
|– IFRS in million EUR    |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Revenue                  |        19,7|        24,1|        35,6|        66,1|
+-------------------------+------------+------------+------------+------------+
|Gross Profit %           |         87%|         88%|         85%|         86%|
+-------------------------+------------+------------+------------+------------+
|Operating result - EBIT  |        13,8|        17,0|        21,2|        44,6|
+-------------------------+------------+------------+------------+------------+
|EBIT margin %            |         70%|         71%|         60%|         68%|
+-------------------------+------------+------------+------------+------------+
|Profit before taxes and  |        13,9|        16,5|        21,7|        44,2|
|exceptionals             |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Income taxes             |        -4,6|        -5,6|        -7,0|       -14,7|
+-------------------------+------------+------------+------------+------------+
|Net gain/(loss)          |        -1,1|         0,0|        -2,9|         0,4|
|associated with the      |            |            |            |            |
|discontinued operation   |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Net profit – Group share |         8,6|        10,9|        13,0|        31,0|
+-------------------------+------------+------------+------------+------------+
|Net profit from          |         8,6|        11,0|        13,0|        28,3|
|operations – Group share |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Net profit margin %      |         44%|         46%|         37%|         43%|
+-------------------------+------------+------------+------------+------------+
|Per share in EUR         |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Weighted average number  |  13.718.687|  13.581.951|  13.713.436|  13.645.576|
|of subscribed shares for |            |            |            |            |
|the period less treasury |            |            |            |            |
|shares                   |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Weighted average number  |  13.945.247|  13.779.637|  13.943.768|  13.809.657|
|of fully diluted number  |            |            |            |            |
|of shares                |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Basic earnings – share of|        0,63|        0,80|        0,94|        2,27|
|the Group per share      |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Fully diluted earnings – |        0,62|        0,79|        0,93|        2,25|
|share of the Group per   |            |            |            |            |
|share                    |            |            |            |            |
+-------------------------+------------+------------+------------+------------+
|Basic net profit from    |        0,63|        0,81|        0,95|        2,08|
|operations – share of the|            |            |            |            |
|Group per share          |            |            |            |            |
+-------------------------+------------+------------+------------+------------+

+-------------------------+-------------+
|Profit & Loss            |  9M06 / 9M05|
+-------------------------+-------------+
|Key Consolidated figures |             |
|– IFRS in million EUR    |             |
+-------------------------+-------------+
|Revenue                  |         +86%|
+-------------------------+-------------+
|Gross Profit %           |       +1 pct|
+-------------------------+-------------+
|Operating result - EBIT  |        +110%|
+-------------------------+-------------+
|EBIT margin %            |       +8 pct|
+-------------------------+-------------+
|Profit before taxes and  |        +103%|
|exceptionals             |             |
+-------------------------+-------------+
|Income taxes             |        +112%|
+-------------------------+-------------+
|Net gain/(loss)          |             |
|associated with the      |             |
|discontinued operation   |             |
+-------------------------+-------------+
|Net profit – Group share |         139%|
+-------------------------+-------------+
|Net profit from          |         117%|
|operations – Group share |             |
+-------------------------+-------------+
|Net profit margin %      |       +6 pct|
+-------------------------+-------------+
|Per share in EUR         |             |
+-------------------------+-------------+
|Weighted average number  |             |
|of subscribed shares for |             |
|the period less treasury |             |
|shares                   |             |
+-------------------------+-------------+
|Weighted average number  |             |
|of fully diluted number  |             |
|of shares                |             |
+-------------------------+-------------+
|Basic earnings – share of|         141%|
|the Group per share      |             |
+-------------------------+-------------+
|Fully diluted earnings – |         142%|
|share of the Group per   |             |
|share                    |             |
+-------------------------+-------------+
|Basic net profit from    |         119%|
|operations – share of the|             |
|Group per share          |             |
+-------------------------+-------------+
(1) As from June 27, 2006, EVS has decreased its stake in XDC from 60.17% down to 47.20%. For 1H06 consolidation purposes, XDC has been fully consolidated over the entire period.

(2) The net profit from operations is the net profit (share of the group) excluding non-recurring exceptional results, taking into account tax items.

Outlook 2006

Executing the "Speed to Air" strategy, EVS serves hundreds of TV stations worldwide with its high-end digital video and audio applications, especially in the field of live sports and near-live studio production where the company has developed leadership positions on niche markets. The migration from tape-based operations towards integrated tapeless workflows is underway and will last during the next decade. This process is accelerated by the transition from Standard Television to High Definition Television because new equipment needs to interoperate with digital solutions which shall be High Definition. Hence, EVS directly benefits from the following long term growth drivers: increasing number video distribution channels like IPTV, 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, demand 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. EVS currently benefits from this strong momentum due to all of these drivers. The Board and the teams believe that the underlying demand for EVS products will continue to be supported by the transition to HDTV which shall impact the business over a long period of time and shall follow usual equipment acquisition wave patterns.

Open orders for sales to be invoiced in 2006 as of 30 September 2006 amounted to 9,9 million EUR. Orders received during the month of October to be invoiced in 2006 amounted to 4,9 million EUR. At the end of October 2006, EVS has open orders in-hand for invoicing in 2007 amounting to 2,6 million EUR. This leads to a total order book of 17,4 million EUR on 31 October 2006, compared to 20,3 million EUR during the same period last year (incl. 4,0 million EUR for the large sporting events rental revenue). Last but not least, one should notice that 33% of our order book is dedicated to Studio Solutions.

Based on current analysis and market conditions, the Company expects 2006 revenues and earnings to be strongly better than in 2005. Indeed, secured 2006 TV sales as of October 31 shall exceed 80,0 million EUR compared to 49,1 million EUR ex. XDC at the same date last year, or an increase exceeding 60%. Hence, 4Q06 revenues could even exceed 4Q05.

Despite buoyant market conditions, visibility remains limited in the rapidly changing broadcast equipment market. The track record of the company evidences strong growth during even years (known as "sport" years) balanced by following transition years. Moreover, large equipment rental agreements have so far been fuelling the even years revenues, like in 2006 with 5,5 million EUR from the Winter Olympics, the Commonwealth Games, the World Cup and the Asian Games. One should notice that 50% of EVS customers do acquire EVS equipment to rent them to broadcasters for weekly sporting events or regular championships. The development of the regular near-live studio segment should reduce this company bi-annual seasonality. Thus, following a very strong even year driven by large sport events, the Board believes the company shall achieve a transition year in 2007 during which it shall continue to grow in its existing markets, reinforce its organisation, grow its presence in the near-live studio production market niche, develop new tools and applications, and open new offices.

Board reorganisation

Working 50% of his time as Managing Director of XDC since 2 years and 50% for his private investments, Laurent Minguet, founding member, formally resigns as Co-Managing Director of EVS and is replaced by Michel Counson, founding member and CTO of EVS Broadcast who shall become co-Managing Director with Pierre L'Hoest, founding member and CEO EVS Broadcast. On his turn, for corporate governance reasons, Michel Counson resigns as Chairman of the Board of Directors and is replaced by Michel Delloye, representing Cytindus S.A., significant shareholder for the last 9 years and former CEO of RTL Group.

Interim Dividend

Given the strong performance of the current year, the Board has decided to distribute an interim dividend of 0,48 EUR per share, except for own shares. It should be paid by early December, subject to the limited review of the figures as of 30 September 06 by the Group auditors. Further information shall be communicated in due time.

Analyst & Press meeting and Conference Call

EVS will hold today an analyst meeting in Liège at 10:30 CET, with Pierre L'Hoest, EVS Broadcast CEO and Jacques Galloy, CFO. A conference call in English will be held at 4:00 PM (CET) to offer another opportunity to discuss the results and recent developments. Please contact corpcom@evs.tv to receive the dial-in number and the presentation.

Corporate Calendar:

Thursday 22 February 2007: 2006 annual sales & earnings

Thursday 10 May 2007: 1Q07 sales & earnings

Tuesday 15 May 2007: Annual General Meeting of Shareholders

Thursday 6 September 2007: 2Q07 sales & earnings

Thursday 8 November 2007: 3Q07 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 190 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..

ANNEX 1: EVS GROUP - IFRS CONDENSED CONSOLIDATED INCOME STATEMENT

+-------------------------+--+------------+--+------------+--+------------+--+
|                         |  |   Restated |  |            |  |   Restated |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|(In thousands EUR)       |  |        3Q05|  |        3Q06|  |        9M05|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Revenue                  |  |      19.659|  |      24.073|  |      35.570|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Costs of sales           |  |      -2.460|  |      -2.944|  |      -5.275|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Gross Profit %           |  |         87%|  |         88%|  |         85%|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Selling and              |  |      -2.229|  |      -2.501|  |      -5.965|  |
|administrative expenses  |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Research and development |  |        -988|  |      -1.461|  |      -2.961|  |
|expenses                 |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Other revenue            |  |         192|  |          84|  |         233|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Other expenses           |  |        -349|  |         -98|  |        -324|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Stock based compensation |  |         -25|  |         -76|  |         -53|  |
|and ESOP plan            |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Impairment on Tax Shelter|  |          - |  |         -58|  |          - |  |
|Assets                   |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|EBITDA                   |  |      14.293|  |      17.494|  |      22.330|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Operating Profit (EBIT)  |  |      13.801|  |      17.019|  |      21.225|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Operating Margin %       |  |         70%|  |         71%|  |         60%|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Net interests            |  |          11|  |         138|  |         142|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Other net financial      |  |         104|  |         -51|  |         315|  |
|incomes / (charges)      |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Share in the result of   |  |          22|  |        -596|  |          47|  |
|the enterp. accounted for|  |            |  |            |  |            |  |
|using the equity method  |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Profit before taxes (PBT)|  |      13.939|  |      16.509|  |      21.729|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Income taxes             |  |      -4.628|  |      -5.615|  |      -6.970|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Net profit for the year  |  |       9.310|  |      10.894|  |      14.759|  |
|from continuing          |  |            |  |            |  |            |  |
|operations               |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Net gain/(loss)          |  |            |  |            |  |            |  |
|associated with the      |  |            |  |            |  |            |  |
|discontinued operation : |  |            |  |            |  |            |  |
|(1)                      |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|XDC loss until dilution  |  |      -1.135|  |           -|  |      -2.921|  |
|as of June 27, 2006      |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Dilution profit on XDC   |  |          - |  |           -|  |          - |  |
|refinancing              |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Net profit for the year  |  |       8.175|  |      10.894|  |      11.838|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Attributable to :        |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Minority interests       |  |         402|  |          - |  |       1.121|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Equity holders of the    |  |       8.578|  |      10.894|  |      12.959|  |
|parent company           |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Net profit from          |  |       8.607|  |      11.027|  |      13.025|  |
|operations – share of the|  |            |  |            |  |            |  |
|group (2)                |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|RESULT PER SHARE         |  |        3Q05|  |        3Q06|  |        9M05|  |
+-------------------------+--+------------+--+------------+--+------------+--+
|(in number of shares and |  |            |  |            |  |            |  |
|in EUR)                  |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Weighted average number  |  |  13.718.687|  |  13.581.951|  |  13.713.436|  |
|of subscribed shares for |  |            |  |            |  |            |  |
|the period less treasury |  |            |  |            |  |            |  |
|shares                   |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Weighted average number  |  |  13.945.247|  |  13.779.637|  |  13.943.768|  |
|of fully diluted number  |  |            |  |            |  |            |  |
|of shares                |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Basic earnings – share of|  |        0,63|  |        0,80|  |        0,94|  |
|the group per share      |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Fully diluted earnings – |  |        0,62|  |        0,79|  |        0,93|  |
|share of the group per   |  |            |  |            |  |            |  |
|share                    |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+
|Basic net profit from    |  |        0,63|  |        0,81|  |        0,95|  |
|operations – share of the|  |            |  |            |  |            |  |
|group per share          |  |            |  |            |  |            |  |
+-------------------------+--+------------+--+------------+--+------------+--+

+-------------------------+------------+
|                         |            |
+-------------------------+------------+
|(In thousands EUR)       |        9M06|
+-------------------------+------------+
|Revenue                  |      66.128|
+-------------------------+------------+
|Costs of sales           |      -9.400|
+-------------------------+------------+
|Gross Profit %           |         86%|
+-------------------------+------------+
|Selling and              |      -7.537|
|administrative expenses  |            |
+-------------------------+------------+
|Research and development |      -4.011|
|expenses                 |            |
+-------------------------+------------+
|Other revenue            |         271|
+-------------------------+------------+
|Other expenses           |        -179|
+-------------------------+------------+
|Stock based compensation |        -450|
|and ESOP plan            |            |
+-------------------------+------------+
|Impairment on Tax Shelter|        -176|
|Assets                   |            |
+-------------------------+------------+
|EBITDA                   |      46.036|
+-------------------------+------------+
|Operating Profit (EBIT)  |      44.647|
+-------------------------+------------+
|Operating Margin %       |         68%|
+-------------------------+------------+
|Net interests            |         413|
+-------------------------+------------+
|Other net financial      |        -332|
|incomes / (charges)      |            |
+-------------------------+------------+
|Share in the result of   |        -526|
|the enterp. accounted for|            |
|using the equity method  |            |
+-------------------------+------------+
|Profit before taxes (PBT)|      44.202|
+-------------------------+------------+
|Income taxes             |     -14.748|
+-------------------------+------------+
|Net profit for the year  |      29.454|
|from continuing          |            |
|operations               |            |
+-------------------------+------------+
|Net gain/(loss)          |            |
|associated with the      |            |
|discontinued operation : |            |
|(1)                      |            |
+-------------------------+------------+
|XDC loss until dilution  |      -2.976|
|as of June 27, 2006      |            |
+-------------------------+------------+
|Dilution profit on XDC   |       3.368|
|refinancing              |            |
+-------------------------+------------+
|Net profit for the year  |      29.846|
+-------------------------+------------+
|Attributable to :        |            |
+-------------------------+------------+
|Minority interests       |       1.180|
+-------------------------+------------+
|Equity holders of the    |      31.025|
|parent company           |            |
+-------------------------+------------+
|Net profit from          |      28.328|
|operations – share of the|            |
|group (2)                |            |
+-------------------------+------------+
|RESULT PER SHARE         |        9M06|
+-------------------------+------------+
|(in number of shares and |            |
|in EUR)                  |            |
+-------------------------+------------+
|Weighted average number  |  13.645.576|
|of subscribed shares for |            |
|the period less treasury |            |
|shares                   |            |
+-------------------------+------------+
|Weighted average number  |  13.809.657|
|of fully diluted number  |            |
|of shares                |            |
+-------------------------+------------+
|Basic earnings – share of|        2,27|
|the group per share      |            |
+-------------------------+------------+
|Fully diluted earnings – |        2,25|
|share of the group per   |            |
|share                    |            |
+-------------------------+------------+
|Basic net profit from    |        2,08|
|operations – share of the|            |
|group per share          |            |
+-------------------------+------------+
(1) In 2005 until June 27, 2006, XDC was a 60.17% EVS affiliate and has been fully consolidated. From June 27, 2006, XDC has been a 47.20% EVS affiliate and therefore accounted for at equity.

(2) The net profit from operations is the net profit (share of the group) excluding non-recurring exceptional results, taking into account tax items.

ANNEX 2: EVS GROUP - CONDENSED SEGMENT REPORTING

The EVS Group sales are divided up by business segments and geographical segments as follows:

2.1. Business segments 2006

+-------------------------+--------------------+--------------------+
|(In thousands EUR) - 9M06|Continuing          |XDC / discontinued  |
|                         |operations TV 9M06  |operations (1)      |
|                         |(A)                 |                    |
|                         |                    |                    |
|                         |                    |                    |
+-------------------------+--------------------+--------------------+
|Revenue                  |                    |                    |
+-------------------------+--------------------+--------------------+
|Sales to external        |              66.128|                 907|
|customers                |                    |                    |
+-------------------------+--------------------+--------------------+
|Gross Profit             |              56.727|              -1.161|
+-------------------------+--------------------+--------------------+
|Stock based compensation |                -450|                 -45|
|and ESOP plan            |                    |                    |
+-------------------------+--------------------+--------------------+
|Impairment on Tax Shelter|                -176|                   0|
|Assets                   |                    |                    |
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT)  |              44.647|              -2.898|
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT) -|                 68%|               -192%|
|%                        |                    |                    |
+-------------------------+--------------------+--------------------+
|Financial Results        |                  81|                 -73|
+-------------------------+--------------------+--------------------+
|XDC Spin-out dilution    |-                   |3.368               |
|profit                   |                    |                    |
+-------------------------+--------------------+--------------------+
|Share in the result of   |                -526|                   -|
|the enterp. accounted for|                    |                    |
|using the equity method  |                    |                    |
+-------------------------+--------------------+--------------------+
|Profit before taxes (PBT)|              44.202|                 396|
+-------------------------+--------------------+--------------------+
|Income taxes             |             -14.748|                  -5|
+-------------------------+--------------------+--------------------+
|Net profit for the year  |              29.454|                 392|
+-------------------------+--------------------+--------------------+
|Minority interests       |-                   |               1.180|
+-------------------------+--------------------+--------------------+
|Net profit - share of the|              29.453|               1.572|
|Group                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Net current profit -     |              30.079|              -1.751|
|share of the Group       |                    |                    |
+-------------------------+--------------------+--------------------+
|(In thousands EUR) -     |Continuing          |XDC / discontinued  |
|30.09.06                 |operations TV       |operations (1)      |
+-------------------------+--------------------+--------------------+
|Assets and liabilities   |                    |                    |
+-------------------------+--------------------+--------------------+
|Investment accounted for |                 365|5.864               |
|using equity method      |                    |                    |
+-------------------------+--------------------+--------------------+
|Non-Current Assets       |               7.485|-                   |
+-------------------------+--------------------+--------------------+
|Cash and cash equivalents|              33.733|-                   |
+-------------------------+--------------------+--------------------+
|Other current assets     |              21.214|                    |
+-------------------------+--------------------+--------------------+
|Assets                   |              62.797|               5.864|
+-------------------------+--------------------+--------------------+
|Net assets               |              42.505|5.864               |
+-------------------------+--------------------+--------------------+
|Long term provisions     |                 230|-                   |
+-------------------------+--------------------+--------------------+
|Deferred taxes           |                 256|-                   |
+-------------------------+--------------------+--------------------+
|Financial debts          |               2.766|-                   |
+-------------------------+--------------------+--------------------+
|Government recoverable   |                 834|-                   |
|loans                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Other current liabilities|              16.205|-                   |
+-------------------------+--------------------+--------------------+
|Liabilities              |              62.797|               5.864|
+-------------------------+--------------------+--------------------+

+-------------------------+--------------------+--------------------+
|(In thousands EUR) - 9M06|XDC / Net           |TOTAL 9M 2006 (A) + |
|                         |gain/(loss)         |(B)                 |
|                         |associated with the |                    |
|                         |discontinued        |                    |
|                         |operation (B)       |                    |
+-------------------------+--------------------+--------------------+
|Revenue                  |                    |                    |
+-------------------------+--------------------+--------------------+
|Sales to external        |-                   |              66.128|
|customers                |                    |                    |
+-------------------------+--------------------+--------------------+
|Gross Profit             |-                   |              56.727|
+-------------------------+--------------------+--------------------+
|Stock based compensation |-                   |                -450|
|and ESOP plan            |                    |                    |
+-------------------------+--------------------+--------------------+
|Impairment on Tax Shelter|-                   |                -176|
|Assets                   |                    |                    |
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT)  |-                   |              44.647|
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT) -|                    |                 68%|
|%                        |                    |                    |
+-------------------------+--------------------+--------------------+
|Financial Results        |-                   |                  81|
+-------------------------+--------------------+--------------------+
|XDC Spin-out dilution    |-                   |-                   |
|profit                   |                    |                    |
+-------------------------+--------------------+--------------------+
|Share in the result of   |-                   |                -526|
|the enterp. accounted for|                    |                    |
|using the equity method  |                    |                    |
+-------------------------+--------------------+--------------------+
|Profit before taxes (PBT)|-                   |              44.202|
+-------------------------+--------------------+--------------------+
|Income taxes             |-                   |             -14.748|
+-------------------------+--------------------+--------------------+
|Net profit for the year  |                 392|              29.846|
+-------------------------+--------------------+--------------------+
|Minority interests       |               1.180|               1.180|
+-------------------------+--------------------+--------------------+
|Net profit - share of the|               1.572|              31.025|
|Group                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Net current profit -     |              -1.751|              28.328|
|share of the Group       |                    |                    |
+-------------------------+--------------------+--------------------+
|(In thousands EUR) -     |TOTAL 30.09.06      |                    |
|30.09.06                 |                    |                    |
+-------------------------+--------------------+--------------------+
|Assets and liabilities   |                    |                    |
+-------------------------+--------------------+--------------------+
|Investment accounted for |               6.229|                    |
|using equity method      |                    |                    |
+-------------------------+--------------------+--------------------+
|Non-Current Assets       |               7.485|                    |
+-------------------------+--------------------+--------------------+
|Cash and cash equivalents|              33.733|                    |
+-------------------------+--------------------+--------------------+
|Other current assets     |              21.214|                    |
+-------------------------+--------------------+--------------------+
|Assets                   |              68.661|                    |
+-------------------------+--------------------+--------------------+
|Net assets               |              48.369|                    |
+-------------------------+--------------------+--------------------+
|Long term provisions     |                 230|                    |
+-------------------------+--------------------+--------------------+
|Deferred taxes           |                 256|                    |
+-------------------------+--------------------+--------------------+
|Financial debts          |               2.766|                    |
+-------------------------+--------------------+--------------------+
|Government recoverable   |                 834|                    |
|loans                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Other current liabilities|              16.205|                    |
+-------------------------+--------------------+--------------------+
|Liabilities              |              68.661|                    |
+-------------------------+--------------------+--------------------+
(1) EVS share in XDC has decreased to 47,20 % from 60,17 %, leading to a change in the consolidation method of XDC stake in the consolidated accounts of EVS: XDC 47,20 % stake is booked at equity method as from June 27, 2006 rather than globally consolidated as it had been the case until June 27, 2006.

2.2. Business segments 2005

+-------------------------+--------------------+--------------------+
|(In thousands EUR)- 9M05 |Continuing          |XDC / discontinued  |
|                         |operations TV 9M05  |operations (1)      |
|                         |(A)                 |                    |
|                         |                    |                    |
|                         |                    |                    |
+-------------------------+--------------------+--------------------+
|Revenue                  |                    |                    |
+-------------------------+--------------------+--------------------+
|Sales to external        |              35.570|               1.447|
|customers                |                    |                    |
+-------------------------+--------------------+--------------------+
|Gross Profit             |              30.296|                -612|
+-------------------------+--------------------+--------------------+
|Stock based compensation |                 -53|                 -13|
|and ESOP plan            |                    |                    |
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT)  |              21.225|              -2.919|
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT) -|                 60%|               -121%|
|%                        |                    |                    |
+-------------------------+--------------------+--------------------+
|Financial Results        |                 458|                   2|
+-------------------------+--------------------+--------------------+
|Share in the result of   |                  47|-                   |
|the enterp. accounted for|                    |                    |
|using the equity method  |                    |                    |
+-------------------------+--------------------+--------------------+
|Profit before taxes (PBT)|              21.729|              -2.917|
+-------------------------+--------------------+--------------------+
|Income taxes             |              -6.970|                  -4|
+-------------------------+--------------------+--------------------+
|Net profit for the year  |              14.759|              -2.921|
+-------------------------+--------------------+--------------------+
|Minority interests       |                   -|               1.121|
+-------------------------+--------------------+--------------------+
|Net profit - share of the|              14.759|              -1.800|
|Group                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Net current profit -     |              14.812|              -1.787|
|share of the Group       |                    |                    |
+-------------------------+--------------------+--------------------+
|(In thousands EUR) -     |Continuing          |XDC / discontinued  |
|31.12.05                 |operations TV       |operations (1)      |
+-------------------------+--------------------+--------------------+
|Assets and liabilities   |                    |                    |
+-------------------------+--------------------+--------------------+
|Investment accounted for |                 282|-                   |
|using equity method      |                    |                    |
+-------------------------+--------------------+--------------------+
|Non-Current Assets       |               7.910|7.035               |
+-------------------------+--------------------+--------------------+
|Cash and cash equivalents|              22.299|3.928               |
+-------------------------+--------------------+--------------------+
|Other current assets     |              18.410|               2.146|
+-------------------------+--------------------+--------------------+
|Assets                   |              48.901|13.109              |
+-------------------------+--------------------+--------------------+
|Net assets               |              36.400|3.992               |
+-------------------------+--------------------+--------------------+
|Long term provisions     |                 151|-                   |
+-------------------------+--------------------+--------------------+
|Deferred taxes           |                 252|-                   |
+-------------------------+--------------------+--------------------+
|Financial debts          |               2.955|, 5.661             |
+-------------------------+--------------------+--------------------+
|Government recoverable   |                 881|2.223               |
|loans                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Other current liabilities|               8.262|               1.233|
+-------------------------+--------------------+--------------------+
|Liabilities              |              48.901|13.109              |
+-------------------------+--------------------+--------------------+

+-------------------------+--------------------+--------------------+
|(In thousands EUR)- 9M05 |XDC / Net           |TOTAL 9M 2005 (A) + |
|                         |gain/(loss)         |(B)                 |
|                         |associated with the |                    |
|                         |discontinued        |                    |
|                         |operation (B)       |                    |
+-------------------------+--------------------+--------------------+
|Revenue                  |                    |                    |
+-------------------------+--------------------+--------------------+
|Sales to external        |-                   |              35.570|
|customers                |                    |                    |
+-------------------------+--------------------+--------------------+
|Gross Profit             |-                   |              30.296|
+-------------------------+--------------------+--------------------+
|Stock based compensation |-                   |                 -53|
|and ESOP plan            |                    |                    |
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT)  |-                   |              21.225|
+-------------------------+--------------------+--------------------+
|Operating Profit (EBIT) -|                    |                 60%|
|%                        |                    |                    |
+-------------------------+--------------------+--------------------+
|Financial Results        |-                   |                 458|
+-------------------------+--------------------+--------------------+
|Share in the result of   |-                   |                  47|
|the enterp. accounted for|                    |                    |
|using the equity method  |                    |                    |
+-------------------------+--------------------+--------------------+
|Profit before taxes (PBT)|-                   |              21.729|
+-------------------------+--------------------+--------------------+
|Income taxes             |-                   |              -6.970|
+-------------------------+--------------------+--------------------+
|Net profit for the year  |              -2.921|              11.838|
+-------------------------+--------------------+--------------------+
|Minority interests       |               1.121|               1.121|
+-------------------------+--------------------+--------------------+
|Net profit - share of the|              -1.800|              12.959|
|Group                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Net current profit -     |              -1.787|              13.025|
|share of the Group       |                    |                    |
+-------------------------+--------------------+--------------------+
|(In thousands EUR) -     |      TOTAL 31.12.05|                    |
|31.12.05                 |                    |                    |
+-------------------------+--------------------+--------------------+
|Assets and liabilities   |                    |                    |
+-------------------------+--------------------+--------------------+
|Investment accounted for |                 282|                    |
|using equity method      |                    |                    |
+-------------------------+--------------------+--------------------+
|Non-Current Assets       |              14.945|                    |
+-------------------------+--------------------+--------------------+
|Cash and cash equivalents|              26.227|                    |
+-------------------------+--------------------+--------------------+
|Other current assets     |              20.556|                    |
+-------------------------+--------------------+--------------------+
|Assets                   |              62.010|                    |
+-------------------------+--------------------+--------------------+
|Net assets               |              40.392|                    |
+-------------------------+--------------------+--------------------+
|Long term provisions     |                 151|                    |
+-------------------------+--------------------+--------------------+
|Deferred taxes           |                 252|                    |
+-------------------------+--------------------+--------------------+
|Financial debts          |               8.616|                    |
+-------------------------+--------------------+--------------------+
|Government recoverable   |               3.104|                    |
|loans                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Other current liabilities|               9.495|                    |
+-------------------------+--------------------+--------------------+
|Liabilities              |              62.010|                    |
+-------------------------+--------------------+--------------------+
(1) EVS share in XDC has decreased to 47,20 % from 60,17 %, leading to a change in the consolidation method of XDC stake in the consolidated accounts of EVS: XDC 47,20 % stake is booked at equity method as from June 27, 2006 rather than globally consolidated as it had been the case until June 27, 2006.

2.3. Geographical segments 2006

The TV activities are split over 3 regions: Asia Pacific ("APAC"), Europe, Middle-East and Africa ("EMEA") and North America and Latin America ("NALA") while XDC business is limited to EMEA (sales from discontinued operations).

+-------------------------+--------+--+--------+--+--------+--+---------------+
|(In thousands EUR)       |   APAC |  |   EMEA |  |   NALA |  |  TOTAL 9M 2006|
+-------------------------+--------+--+--------+--+--------+--+---------------+
|Revenue                  |        |  |        |  |        |  |               |
+-------------------------+--------+--+--------+--+--------+--+---------------+
|Sales to external        |  10.707|  |  37.280|  |  18.141|  |         66.128|
|customers                |        |  |        |  |        |  |               |
+-------------------------+--------+--+--------+--+--------+--+---------------+
|Sales from discontinued  |      - |  |     907|  |      - |  |            907|
|operations               |        |  |        |  |        |  |               |
+-------------------------+--------+--+--------+--+--------+--+---------------+
|Segment revenue          |  10.707|  |  38.187|  |  18.141|  |         67.035|
+-------------------------+--------+--+--------+--+--------+--+---------------+
|Evolution versus 2005 -  |    129%|  |     78%|  |     93%|  |            88%|
|Proforma %               |        |  |        |  |        |  |               |
+-------------------------+--------+--+--------+--+--------+--+---------------+
|Segment Revenue at       |  10.707|  |  38.187|  |  17.873|  |         66.767|
|constant exchange rate   |        |  |        |  |        |  |               |
+-------------------------+--------+--+--------+--+--------+--+---------------+
|Variation 9M06 vs 9M05   |    129%|  |     74%|  |     93%|  |            86%|
|(coninuing operations)   |        |  |        |  |        |  |               |
+-------------------------+--------+--+--------+--+--------+--+---------------+
2.4. Geographical segments 2005
+-------------------------+-------+--+--------+--+-------+--+---------------+
|(In thousands EUR)       |  APAC |  |   EMEA |  |  NALA |  |  TOTAL 9M 2005|
+-------------------------+-------+--+--------+--+-------+--+---------------+
|Revenue                  |       |  |        |  |       |  |               |
+-------------------------+-------+--+--------+--+-------+--+---------------+
|Sales to external        |  4.666|  |  21.487|  |  9.416|  |         35.569|
|customers                |       |  |        |  |       |  |               |
+-------------------------+-------+--+--------+--+-------+--+---------------+
|Sales from discontinued  |     12|  |   1.372|  |     63|  |          1.447|
|operations               |       |  |        |  |       |  |               |
+-------------------------+-------+--+--------+--+-------+--+---------------+
|Segment revenue          |  4.678|  |  22.859|  |  9.479|  |         37.016|
+-------------------------+-------+--+--------+--+-------+--+---------------+
The EVS Group has a strong vertical integration located mainly in Belgium. Foreign subsidiaries are distribution and representation subsidiaries, which explains why most of investments and investment expenditure are concentrated in the parent company EVS Broadcast Equipment S.A..

We should also note that the EVS Group has a centralised cash management within Belgium and that only the subsidiaries based in the USA and in Hong Kong directly invoice the end customers for commercial reasons. All customers are invoiced in EUR except the United States of America, in US Dollar.

ANNEX 3: EVS GROUP - CONDENSED IFRS CONSOLIDATED BALANCE SHEET - ASSETS

+-------------------------+--+----------+--+-------------------+--+----------+
|                         |  |          |  |      Proforma     |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|                         |  |  Reported|  |  XDC at equity (1)|  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|ASSETS:                  |  |  31.12.05|  |           31.12.05|  |  30.09.06|
+-------------------------+--+----------+--+-------------------+--+----------+
|(In thousands EUR)       |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Non-Current Assets :     |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Intangible assets        |  |       584|  |                581|  |       404|
+-------------------------+--+----------+--+-------------------+--+----------+
|Lands and buildings      |  |     5.499|  |              5.424|  |     5.442|
+-------------------------+--+----------+--+-------------------+--+----------+
|Other tangible assets    |  |     8.063|  |              1.199|  |     1.136|
+-------------------------+--+----------+--+-------------------+--+----------+
|Investment accounted for |  |       282|  |              2.669|  |     6.229|
|using equity method      |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Other financial assets   |  |       799|  |                724|  |       504|
+-------------------------+--+----------+--+-------------------+--+----------+
|Total Non-Current Assets |  |    15.227|  |             10.598|  |    13.714|
+-------------------------+--+----------+--+-------------------+--+----------+
|Current Assets :         |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Inventories              |  |     6.012|  |              4.836|  |     6.505|
+-------------------------+--+----------+--+-------------------+--+----------+
|Trade receivables        |  |    13.015|  |             12.644|  |    13.822|
+-------------------------+--+----------+--+-------------------+--+----------+
|Deferred tax assets      |  |       114|  |                114|  |       214|
+-------------------------+--+----------+--+-------------------+--+----------+
|Other amounts receivable,|  |     1.415|  |                881|  |       674|
|deferred charges and     |  |          |  |                   |  |          |
|accrued income           |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Cash and cash equivalents|  |    26.227|  |             22.299|  |    33.733|
+-------------------------+--+----------+--+-------------------+--+----------+
|Total Current Assets     |  |    46.783|  |             40.774|  |    54.947|
+-------------------------+--+----------+--+-------------------+--+----------+
|Total Assets             |  |    62.010|  |             51.372|  |    68.661|
+-------------------------+--+----------+--+-------------------+--+----------+
(1) As at of September 30, 2006, according to IFRS, XDC balance sheet has been recorded at the equity method in the Group consolidated balance sheet. For comparison purposes with December 31, 2005, proforma assumes that XDC was accounted for using the equity method as at December 31, 2005.

ANNEX 4: EVS GROUP - CONDENSED IFRS CONSOLIDATED BALANCE SHEET - LIABILITIES

+-------------------------+--+----------+--+-------------------+--+----------+
|                         |  |          |  |      Proforma     |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|                         |  |  Reported|  |  XDC at equity (1)|  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|LIABILITIES:             |  |  31.12.05|  |           31.12.05|  |  30.09.06|
+-------------------------+--+----------+--+-------------------+--+----------+
|(In thousands EUR)       |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Equity :                 |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Capital                  |  |     8.342|  |              8.342|  |     8.342|
+-------------------------+--+----------+--+-------------------+--+----------+
|Consolidated reserves    |  |    34.092|  |             34.713|  |    46.003|
+-------------------------+--+----------+--+-------------------+--+----------+
|Translation differences  |  |       -36|  |                -36|  |       -78|
+-------------------------+--+----------+--+-------------------+--+----------+
|Treasury shares          |  |    -4.220|  |             -4.220|  |    -5.903|
+-------------------------+--+----------+--+-------------------+--+----------+
|Equity attributable to   |  |    38.179|  |             38.800|  |    48.365|
|equity holders of the    |  |          |  |                   |  |          |
|parent company           |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Minority Interests       |  |     2.213|  |                  4|  |         5|
+-------------------------+--+----------+--+-------------------+--+----------+
|Total Equity             |  |    40.392|  |             38.804|  |    48.369|
+-------------------------+--+----------+--+-------------------+--+----------+
|Long term provisions     |  |       151|  |                151|  |       230|
+-------------------------+--+----------+--+-------------------+--+----------+
|Deferred taxes           |  |       252|  |                252|  |       256|
+-------------------------+--+----------+--+-------------------+--+----------+
|Financial long term debts|  |     6.946|  |              2.614|  |     2.614|
+-------------------------+--+----------+--+-------------------+--+----------+
|Government recoverable   |  |     3.104|  |                881|  |       834|
|loans                    |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Non-Current Liabilities  |  |    10.453|  |              3.898|  |     3.935|
+-------------------------+--+----------+--+-------------------+--+----------+
|Short term portion of    |  |     1.670|  |                341|  |       152|
|long term financial debts|  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Trade payables           |  |     2.408|  |              1.779|  |     1.990|
+-------------------------+--+----------+--+-------------------+--+----------+
|Amounts payable regarding|  |     2.208|  |              1.805|  |     2.228|
|remuneration and social  |  |          |  |                   |  |          |
|security                 |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Income tax payable       |  |     1.097|  |              1.097|  |     8.766|
+-------------------------+--+----------+--+-------------------+--+----------+
|Other amounts payable,   |  |     3.782|  |              3.647|  |     3.221|
|advances received,       |  |          |  |                   |  |          |
|accrued charges and      |  |          |  |                   |  |          |
|deferred income          |  |          |  |                   |  |          |
+-------------------------+--+----------+--+-------------------+--+----------+
|Current Liabilities      |  |    11.165|  |              8.669|  |    16.357|
+-------------------------+--+----------+--+-------------------+--+----------+
|Total Liabilities        |  |    62.010|  |             51.372|  |    68.661|
+-------------------------+--+----------+--+-------------------+--+----------+
(1) As at of September 30, 2006, according to IFRS, XDC balance sheet has been recorded at the equity method in the Group consolidated balance sheet. For comparison purposes with December 31, 2005, proforma assumes that XDC was accounted for using the equity method as at December 31, 2005.

ANNEX 5: EVS GROUP - CONDENSED IFRS CONSOLIDATED CASH FLOW STATEMENT

+-------------------------+---------+--+---------+--+----------+
|                         |         |  |         |  |  Proforma|
+-------------------------+---------+--+---------+--+----------+
|                         |         |  |         |  |    EVS TV|
+-------------------------+---------+--+---------+--+----------+
|(In thousands EUR)       |    9M05 |  |     9M06|  |  9M06 (1)|
+-------------------------+---------+--+---------+--+----------+
|Cash flows from operating|         |  |         |  |          |
|activities               |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Profit before taxation   |   18.813|  |   44.202|  |    44.202|
+-------------------------+---------+--+---------+--+----------+
|Adjustment for non cash  |         |  |         |  |          |
|items :                  |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|- Share in the Result of |      -47|  |      526|  |       526|
|the Enterp. accounted for|         |  |         |  |          |
|using the equity Method  |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|- Depreciation on fixed  |      773|  |      905|  |       905|
|assets                   |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|- Foreign exchange result|      465|  |     -291|  |      -291|
+-------------------------+---------+--+---------+--+----------+
|- Provisions and deferred|      113|  |       83|  |        83|
|taxes increase, decrease |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|                         |   20.117|  |   45.425|  |    45.425|
+-------------------------+---------+--+---------+--+----------+
|- Amounts receivable     |   -4.371|  |   -1.091|  |      -819|
+-------------------------+---------+--+---------+--+----------+
|- Deferred charges and   |    1.034|  |     -292|  |       -54|
|accrued income           |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|- Trade debts and        |      780|  |      226|  |      -414|
|prepayments              |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|- Taxes, remuneration and|    1.448|  |    8.111|  |     8.092|
|social security debts    |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|- Other amounts payable  |      167|  |     -363|  |      -533|
+-------------------------+---------+--+---------+--+----------+
|- Inventories            |     -563|  |   -1.485|  |    -1.669|
+-------------------------+---------+--+---------+--+----------+
|Cash generated from      |   18.612|  |   50.532|  |    50.027|
|operations               |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Interest received        |      390|  |      557|  |       557|
+-------------------------+---------+--+---------+--+----------+
|Income taxes             |   -6.975|  |  -14.748|  |   -14.748|
+-------------------------+---------+--+---------+--+----------+
|Net cash from operating  |   12.027|  |   36.340|  |    35.836|
|activities               |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Cash flows from investing|         |  |         |  |          |
|activities               |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Purchase/disposal of     |     -279|  |      -18|  |       -10|
|intangible assets        |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Purchase/disposal of     |   -1.908|  |   -3.033|  |      -671|
|property, plant and      |         |  |         |  |          |
|equipment                |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Purchase/disposal of     |   -2.138|  |   -3.738|  |         -|
|leasing equipment        |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Purchase/disposal of     |       72|  |      229|  |      -381|
|other financial assets   |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Purchase/disposal short  |      147|  |        -|  |         -|
|term investments         |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|XDC dilution impact in   |        -|  |   -7.665|  |         -|
|investing activities     |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Net cash used in         |   -4.106|  |  -14.225|  |    -1.062|
|investing activities     |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Cash flows from financing|         |  |         |  |          |
|activities               |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Operations with treasury |       54|  |   -1.394|  |    -1.440|
|shares                   |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Other net equity         |     -190|  |      -75|  |       195|
|variations (including    |         |  |         |  |          |
|ESOP)                    |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Interest paid            |     -253|  |     -152|  |      -152|
+-------------------------+---------+--+---------+--+----------+
|Proceeds from long-term  |    2.753|  |    3.050|  |      -236|
|borrowings               |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Dividends paid           |  -13.696|  |  -16.040|  |   -16.040|
+-------------------------+---------+--+---------+--+----------+
|Net cash used in         |  -11.332|  |  -14.610|  |   -17.672|
|financing activities     |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Cash from discontinued   |         |  |         |  |          |
|operations               |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|EVS contribution to XDC  |        -|  |        -|  |    -4.097|
|share capital increases  |         |  |         |  |          |
|as of June 27, 2006      |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Fully consolidated XDC   |        -|  |        -|  |     2.976|
|loss as of June 27, 2006 |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Minorities share in XDC  |        -|  |        -|  |    -1.180|
|loss as of June 27, 2006 |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|EVS 60,17% down to 47,20%|        -|  |        -|  |    -3.368|
|dilution profit as of    |         |  |         |  |          |
|June 27, 2006            |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Net cash from            |        -|  |        -|  |    -5.668|
|discontinued operations  |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Net increase in cash and |   -3.411|  |    7.506|  |    11.434|
|cash equivalents         |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Cash and cash equivalents|   24.373|  |   26.227|  |    22.299|
|at beginning of period   |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
|Cash and cash equivalents|   20.962|  |   33.733|  |    33.733|
|at end of period         |         |  |         |  |          |
+-------------------------+---------+--+---------+--+----------+
(1) For comparison purposes, assuming that XDC was accounted for using equity method as at December 31, 2005.

ANNEX 6: EVS GROUP - CONDENSED IFRS CONSOLIDATED STATEMENT

OF CHANGES IN NET EQUITY

+-------------------------+----------------+--+--------------------+--+
|(In thousands EUR)       |  Issued capital|  |Available reserves  |  |
|                         |                |  |                    |  |
|                         |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Balance as per 31        |           8.342|  |              28.631|  |
|December 2004            |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Net profit of the year   |                |  |              11.838|  |
|attributable to the      |                |  |                    |  |
|shareholders of the      |                |  |                    |  |
|parent company           |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Operations with treasury |                |  |                -142|  |
|shares                   |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Dividends                |                |  |             -13.696|  |
+-------------------------+----------------+--+--------------------+--+
|Currency translation     |                |  |                    |  |
|differences              |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Net profit of the year   |                |  |               1.121|  |
|attributable to the      |                |  |                    |  |
|minority interest        |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Other increase (decrease)|                |  |                -204|  |
+-------------------------+----------------+--+--------------------+--+
|Balance as per 30        |           8.342|  |              27.548|  |
|September 2005           |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+

+-------------------------+-----------------+--+--------------------+--+
|(In thousands EUR)       |  Treasury shares|  |Currency translation|  |
|                         |                 |  |differences         |  |
|                         |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Balance as per 31        |           -2.723|  |                -288|  |
|December 2004            |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Net profit of the year   |                 |  |                    |  |
|attributable to the      |                 |  |                    |  |
|shareholders of the      |                 |  |                    |  |
|parent company           |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Operations with treasury |              196|  |                    |  |
|shares                   |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Dividends                |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Currency translation     |                 |  |                 203|  |
|differences              |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Net profit of the year   |                 |  |                    |  |
|attributable to the      |                 |  |                    |  |
|minority interest        |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Other increase (decrease)|                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Balance as per 30        |           -2.527|  |                 -85|  |
|September 2005           |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+

+-------------------------+--------------------+--+-------------------+--+
|(In thousands EUR)       |Equity attributable |  |  Minority interest|  |
|                         |to shareholders of  |  |                   |  |
|                         |the parent company  |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Balance as per 31        |              33.962|  |              3.615|  |
|December 2004            |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Net profit of the year   |              11.838|  |                   |  |
|attributable to the      |                    |  |                   |  |
|shareholders of the      |                    |  |                   |  |
|parent company           |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Operations with treasury |                  54|  |                   |  |
|shares                   |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Dividends                |             -13.696|  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Currency translation     |                 203|  |                   |  |
|differences              |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Net profit of the year   |               1.121|  |             -1.121|  |
|attributable to the      |                    |  |                   |  |
|minority interest        |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Other increase (decrease)|                -204|  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Balance as per 30        |              33.278|  |              2.494|  |
|September 2005           |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+

+-------------------------+------------------+
|(In thousands EUR)       |  Total Net Equity|
|                         |                  |
|                         |                  |
+-------------------------+------------------+
|Balance as per 31        |            37.577|
|December 2004            |                  |
+-------------------------+------------------+
|Net profit of the year   |            11.838|
|attributable to the      |                  |
|shareholders of the      |                  |
|parent company           |                  |
+-------------------------+------------------+
|Operations with treasury |                54|
|shares                   |                  |
+-------------------------+------------------+
|Dividends                |           -13.696|
+-------------------------+------------------+
|Currency translation     |               203|
|differences              |                  |
+-------------------------+------------------+
|Net profit of the year   |                - |
|attributable to the      |                  |
|minority interest        |                  |
+-------------------------+------------------+
|Other increase (decrease)|              -204|
+-------------------------+------------------+
|Balance as per 30        |            35.771|
|September 2005           |                  |
+-------------------------+------------------+
+-------------------------+----------------+--+--------------------+--+
|(In thousands EUR)       |  Issued capital|  |Available reserves  |  |
|                         |                |  |                    |  |
|                         |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Balance as per 31        |           8.342|  |              34.094|  |
|December 2005            |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Increase (decrease) of   |                |  |              -2.908|  |
|equity capital resulting |                |  |                    |  |
|from company regrouping  |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Net profit of the year   |                |  |              29.846|  |
|attributable to the      |                |  |                    |  |
|shareholders of the      |                |  |                    |  |
|parent company           |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Operations with treasury |                |  |                 290|  |
|shares                   |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Dividends                |                |  |             -16.462|  |
+-------------------------+----------------+--+--------------------+--+
|Currency translation     |                |  |                    |  |
|differences              |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Net profit of the year   |                |  |               1.180|  |
|attributable to the      |                |  |                    |  |
|minority interest        |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+
|Other increase (decrease)|                |  |                 -36|  |
+-------------------------+----------------+--+--------------------+--+
|Balance as per 30        |           8.342|  |              46.004|  |
|September 2006           |                |  |                    |  |
+-------------------------+----------------+--+--------------------+--+

+-------------------------+-----------------+--+--------------------+--+
|(In thousands EUR)       |  Treasury shares|  |Currency translation|  |
|                         |                 |  |differences         |  |
|                         |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Balance as per 31        |           -4.220|  |                 -36|  |
|December 2005            |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Increase (decrease) of   |                 |  |                    |  |
|equity capital resulting |                 |  |                    |  |
|from company regrouping  |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Net profit of the year   |                 |  |                    |  |
|attributable to the      |                 |  |                    |  |
|shareholders of the      |                 |  |                    |  |
|parent company           |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Operations with treasury |           -1.683|  |                    |  |
|shares                   |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Dividends                |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Currency translation     |                 |  |                 -42|  |
|differences              |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Net profit of the year   |                 |  |                    |  |
|attributable to the      |                 |  |                    |  |
|minority interest        |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Other increase (decrease)|                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+
|Balance as per 30        |           -5.903|  |                 -78|  |
|September 2006           |                 |  |                    |  |
+-------------------------+-----------------+--+--------------------+--+

+-------------------------+--------------------+--+-------------------+--+
|(In thousands EUR)       |Equity attributable |  |  Minority interest|  |
|                         |to shareholders of  |  |                   |  |
|                         |the parent company  |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Balance as per 31        |              38.179|  |              2.213|  |
|December 2005            |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Increase (decrease) of   |              -2.908|  |             -2.208|  |
|equity capital resulting |                    |  |                   |  |
|from company regrouping  |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Net profit of the year   |              29.846|  |                   |  |
|attributable to the      |                    |  |                   |  |
|shareholders of the      |                    |  |                   |  |
|parent company           |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Operations with treasury |              -1.393|  |                   |  |
|shares                   |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Dividends                |             -16.462|  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Currency translation     |                 -42|  |                   |  |
|differences              |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Net profit of the year   |               1.180|  |                   |  |
|attributable to the      |                    |  |                   |  |
|minority interest        |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Other increase (decrease)|                 -36|  |                   |  |
+-------------------------+--------------------+--+-------------------+--+
|Balance as per 30        |              48.364|  |                  5|  |
|September 2006           |                    |  |                   |  |
+-------------------------+--------------------+--+-------------------+--+

+-------------------------+------------------+
|(In thousands EUR)       |  Total Net Equity|
|                         |                  |
|                         |                  |
+-------------------------+------------------+
|Balance as per 31        |            40.392|
|December 2005            |                  |
+-------------------------+------------------+
|Increase (decrease) of   |            -5.116|
|equity capital resulting |                  |
|from company regrouping  |                  |
+-------------------------+------------------+
|Net profit of the year   |            29.846|
|attributable to the      |                  |
|shareholders of the      |                  |
|parent company           |                  |
+-------------------------+------------------+
|Operations with treasury |            -1.393|
|shares                   |                  |
+-------------------------+------------------+
|Dividends                |           -16.462|
+-------------------------+------------------+
|Currency translation     |               -42|
|differences              |                  |
+-------------------------+------------------+
|Net profit of the year   |             1.180|
|attributable to the      |                  |
|minority interest        |                  |
+-------------------------+------------------+
|Other increase (decrease)|               -36|
+-------------------------+------------------+
|Balance as per 30        |            48.369|
|September 2006           |                  |
+-------------------------+------------------+
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