March 19, 2010, Paris. France. Netgem (http://www.netgem.com/), a leading provider of IPTV technology and services to Telecom operators worldwide, today announced its 2009 consolidated results.

2009 results

- The Netgem group has posted 2009 operating profit of € 30.6 million (+100%) for sales of € 146.2 million (+46%)[1].

- The technology-based activities contributed € 37.4 million (+87%) to consolidated operating profit, for sales of € 131.3 million (+44%). The VideoFutur Entertainment (content and services) activity showed an operating loss for 2009 of € 6.8 million and sales of € 14.9 million.

- Net profit Group share rose 1% to € 20.4 million in 2009, equivalent to € 0.56 per share. This includes tax of € 9.7 million of which € 7.2 million has no monetary impact thanks to a deferred tax payment.

- The cash position rose to € 49.2 million from € 26.9 million at 31 December 2008 (+ € 22.3 million), with shareholder equity on 31 December 2009 at € 76.3 million.

2010 outlook

- Following the successful spin-off of VideoFutur[2], Netgem is tackling 2010 with a renewed focus on its core business. It therefore no longer consolidates the sales or earnings of the content business from January of this year.

- At the international level, after striking deals with Elisa, Monaco Telecom and Telstra, the recently-announced agreement for the Algerian market[3] once again confirms the Group’s ability to meet the needs of different operators and diverse markets.

- In France, the company will continue to accompany SFR in the deployment of its triple-play offer, which has shown good momentum since the start of the year.

- The Company is committed to strengthening its workforce at the technical, marketing and sales levels. At the same time, the product offer is being expanded in order to exploit the most attractive opportunities.

- This concerted investment drive is justified by the current extremely favourable market conditions and the level of profitability expected by the Group in 2010.

[1] See press release of 14 January 2010 “2009 sales and outlook”
[2] See press release of 9 December 2009 “Netgem offers shareholders an exceptional dividend of € 1.36 per share, in cash or VideoFutur Entertainment Group shares” and of 22 January 2010 “Minutes of General Meeting of 19 January 2010, Confirmation of agreement from Board of Euronext Paris
[3] See press release of 16 February 2010 “Algérie Telecom deploys triple-play offer avec Netgem »

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