SOURCE: Thomson

January 23, 2007 05:07 ET

Thomson and CGEN, the Chinese leader in in-store TV, sign strategic partnership to develop Out of Home media networks in China and Asia

PARIS and SHANGHAI, CHINA -- (MARKET WIRE) -- January 23, 2007 -- Thomson and CGEN Announce

First Out-of-Home Media Network Deal with Premium Internet Café chain Big Café

PARIS and SHANGHAI, China- January, 23 2007 - Thomson (Euronext: 18453) (NYSE: TMS), today announced that its Premier Retail Networks (PRN) business and CGEN have reached an agreement to deploy out-of-home networks in China and across Asia. The two companies will form a joint-venture that will pursue opportunities in in-store television, cinema advertising and other innovative types of out-of-home networks in China and across Asia.

With this partnership, Thomson and CGEN have agreed to combine their widely recognized expertise in technology, media sales and key account management to bring China's out-of-home networks to the next level. Thomson's world-leading expertise in in-store television, cinema advertisement and OOH networks associated with CGEN's local knowledge and operational presence will allow the joint venture to deliver world-class solutions to international retailers, exhibitors and other OOH venues in China and across Asia. At the same time, the joint venture will provide advertisers innovative solutions to reach their customers in a highly targeted way.

The two companies are already collaborating on the roll-out of an in-store media network with Big Café, a Chinese leader in premium Internet Cafés. Big Café aims to roll-out the digital Thomson-CGEN solution across 750 premium café sites in 2007.

"We are delighted to collaborate with CGEN in China and in other Asian countries. The market for out-of-home digital media is booming in these regions and we are confident we can play a significant role by combining Thomson's and CGEN's expertise in electronic distribution technologies, content services and media sales", says Julien Marcel, Vice-President at Thomson in charge of out-of-home activities in Europe and Asia.

"With PRN, Thomson brings to this market a unique experience and track record. CGEN has been a pioneer and a leader in the in-store advertisement industry in China and we are confident that this strategic partnership will allow us to accelerate our growth and increase our potentials", says Y.S. Chan, Chairman of CGEN Media.

About Thomson -- Leader In Digital Video Technologies

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

About PRN Corporation

Founded in 1992, the PRN Corporation operates the PRN Network in some of the world's leading retailers. PRN is the largest in-store television network in the United States based on the number of consumers reached each month and is rapidly expanding worldwide. Through the PRN Network, PRN enables national and local advertisers to target consumers in over 6,000 leading US retail stores. PRN works with retailers and advertisers to create in-store television programs, including entertainment, product information, and advertising, that is relevant to shoppers. PRN's retail partners in the US include, Wal-Mart, Best Buy, Circuit City, Costco, Sam's Club, and SuperValu. PRN Network has more than 250 million U.S. viewers a month. PRN's US headquarters are in San Francisco, California with offices in New York, Paris, and Varsaw. PRN is wholly-owned by Thomson SA (Euronext: 18453) (NYSE: TMS), the world leader in integrated solutions (technologies, equipment and services) for the entertainment and media industries. For more information, please visit http://www.prn.com.

About CGEN

CGEN was founded in 2003 and is the largest network-based In-Store TV operator in China, with 65% market share of premium hypermarkets nationwide. CGEN Media has formed strategic partnerships with over 25 international and local hypermarket retailers, including Carrefour, B&Q, Lotus, E-Mart, Wumart, and Century Lianhua. The CGEN Media Network reaches 90 million shopping viewers every week with promotions on brand awareness (Thematic Promotion) and brand preference (Tactical Promotion) in over 64 top tier cities, including Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou, Shenyang, Chengdu and Chongqing. CGEN Media is funded by world-class venture funds including Merrill Lynch, TDF Capital, JAFCO, Redpoint, Sumitomo, Shanghai Industrial Technology, and Hotung. For more information, please visit http://www.cgenmedia.cn.

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

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|Thomson Press Relations  |                   |                    |
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|Martine Esquirou         |  +33 1 41 86 58 51|martine.esquirou@tho|
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|Marine Boulot            |  +33 1 41 86 55 97|marine.boulot@thomso|
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|Tom Bracken              |    +1 805 445 7293|tom.bracken@thomson.|
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