SOURCE: Thomson

March 11, 2008 11:17 ET

THOMSON: Thomson downgrade will have minimal effect on financing plans and interest costs

PARIS--(Marketwire - March 11, 2008) - As expected, following the Group's annual results announced on 14 February 2008, Thomson's credit rating has today been downgraded from Baa3 to Ba1 by Moody's. The outlook has been changed from negative to stable. The Group expects Standard & Poor's decision very shortly as well.

The Group's net interest costs are not expected to be significantly affected by these changes, as none of the Group's outstanding debt has costs linked to these rating changes. The Group's interest charges are expected to decline in 2008 due to lower USD Libor rates.

Given the uncertain credit markets prevailing during the latter half of 2007, Thomson took steps during 2007 and early 2008 to raise additional long-term debt totalling EUR 220 million. This additional long-term debt, together with the Group's EUR 1.75 billion syndicated facility, is expected to provide sufficient liquidity to refinance to the Group's short-term and long-term debt falling due in 2008 and 2009. The Group intends to improve its ratios so as to return to investment grade, in line with its financial policies.

Contrary to rumours, Thomson confirms that it has no plans for an increase in its equity share capital.

The dividend proposed by the Board of Directors at EUR 0.33 per share was announced with Thomson's full year results on 14 February and will be paid beginning of July, subject to approval from the Annual General Meeting on 22 May 2008.

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

About Thomson -- World leader in digital video technologies

Thomson (Euronext Paris: 18453) (NYSE: TMS) provides technology, services, and systems to help its Media, Entertainment & Communications clients -- content creators, content distributors and users of its technology -- realize their business goals and optimize their performance in a rapidly changing technology environment. For more information: http://www.thomson.net.

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