EUROTECH S.p.A : AUGMENTATION DES RECETTES DU 4? TRIMESTRE 2007

COMMUNIQUÉ DE PRESSE


EUROTECH : AUGMENTATION DES RECETTES DU 4° TRIMESTRE 2007 DE 66,1 % PAR RAPPORT À 2006 POUR ATTEINDRE 26,3 MILLIONS D'EUROS

- Revenu consolidé : 4ème trimestre + 66,1% de 15,83 millions d'euros à 26,31 millions d'euros ; 12 mois + 50,8 % de 50,76 millions d'euros à 76,53 millions d'euros
- EBITDA consolidé : 4ème trimestre de 1,76 million d'euros à 2,15 millions d'euros ; 12 mois de 2,37 millions d'euros à 1,78 million d'euros
- EBIT consolidé : 4ème trimestre de 747 000 euros à - 547 000 euros ; 12 mois de 336 millions d'euros à -4,148 millions d'euros
- Résultats consolidés avant impôts : 4ème trimestre de 1,87 millions d'euros à -1,17 million d'euros ; 12 mois de 1,91 million d'euros à -3,85 millions d'euros
- Position financière nette : 12,54 millions d'euros

Amaro (UD), 14 February 2008

Today, the Board of Directors of Eurotech S.p.A. examined and approved the results related to the fourth quarter and the entire financial year 2007

These results reported growing revenue for the Eurotech Group, active in research, development, production and marketing of miniaturised (NanoPCs) and high-performance computing capability (HPCs) computers.

GROUP RESULTS FOURTH QUARTER 2007

+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|      CONSOLIDATED     |  Q4 2006 |          Q4 2006         |          Q4 2007         |  CHANGE % |  PRICE ALLOCATION |  Q4 2007 |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|  (E Mil.)             |          |  NET OF PRICE ALLOCATION |  NET OF PRICE ALLOCATION |           |               (*) |          |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|                       |          |                          |                          |           |                   |          |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|  SALES                |   15.834 |                   15.834 |                   26.307 |     66.1% |                 - |   26.307 |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|  EBITDA               |    1.758 |                    1.809 |                    2.445 |     35.2% |             (294) |    2.151 |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|  EBIT                 |      747 |                    1.065 |                    1.227 |     15.3% |           (1.774) |    (547) |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|  FINANCIAL MANAGEMENT |    1.042 |                    1.042 |                    (630) |      nmf. |                 - |    (630) |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+
|  PRE TAX RESULT       |    1.875 |                    2.193 |                      597 |    -72.8% |           (1.774) |  (1.177) |
+-----------------------+----------+--------------------------+--------------------------+-----------+-------------------+----------+

(*) Accounting effects of the price allocation relating to acquisitions made since April 2006 of the Arcom Group, Applied Data Systems Inc. and Advanet Group.

The fourth quarter 2007 posted 66.1% year-on-year growth in Group sales, increasing from of E15.83 million to E26.31 million. The large increase reflects the effect arising from acquisition of Applied Data Systems Inc. executed on 8 January 2007 and the Japanese group Advanet, executed on 31 October 2007. Note that the Advanet Group was consolidated on 1 November 2007 and therefore only contributed two months to sales in the quarter, for an amount of E4.3 million.

Group profits in the fourth quarter amounted to E13.29 million (+58.6% on the same period last year) accounting for 50.5% of revenues. Its impact improves, reaching 51.6%, by eliminating the effects of purchase price allocation.

EBITDA in the fourth quarter 2007 was preceded by a plus sign for E2.2 million, with a 8.2% margin on revenues. Fixed operating costs greatly influenced fourth-quarter results. EBITDA before purchase price allocation was E2.45 million with a 9.3 % impact on sales (fourth quarter 2006 reported EBITDA, net of price allocation, of E1.81 million). Thanks to the higher revenue earned, the fourth quarter 2007 reflects the higher absorption of overheads and therefore a better performance of the EBITDA as an absolute value and as a percentage of revenue, with respect to the previous nine months 2007, very close to its performance during the last quarter 2006.

EBIT in the fourth quarter was significantly affected by the negative effects of amortisation due to the price allocation of the Arcom Group, Applied Data Systems Inc. and Advanet Group acquisitions and amounted to - E547 thousand, accounting for - 2.1% of revenue compared to the fourth quarter 2006 which reported EBIT of E747 thousand (accounting for 4.7% of revenue). The negative effects on EBIT due to price allocation pursuant to the Arcom Group, Applied Data Systems Inc. and Advanet Group acquisitions amounted to E318 thousand for the fourth quarter 2006 and E1.774 million for the same period in 2007.

The pre-tax result was negative for E1.177 thousand (it was positive in fourth quarter 2006 for E1.875 million). Stripping off the effects of price allocation, this figure would be positive for E597 thousand (E2.19 million in the fourth quarter 2006).

In the fourth quarter, the net Group result came to - E548 million, compared with E1.379 million in the same period last year. Eliminating the effects of price allocation, this figure would be significantly better, positive for E249 thousand (E1.578 million in the fourth quarter 2006).

GROUP RESULTS IN 2007

+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|      CONSOLIDATED     |  31/12/2006 |  31/12/2006 NET PRICE ALLOCATION |  31/12/2007 NET PRICE ALLOCATION |  Change % |  price allocation (*) |  31/12/2007 |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|  (E Mil.)             |             |                                  |                                  |           |                       |             |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|                       |             |                                  |                                  |           |                       |             |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|  SALES                |      50.759 |                           50.759 |                           76.531 |     50.8% |                     - |      76.531 |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|  EBITDA               |       2.373 |                            3.026 |                            2.295 |    -24.2% |                 (514) |       1.781 |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|  EBIT                 |       (336) |                            1.070 |                            (681) |   -163.6% |               (3.467) |     (4.148) |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|  FINANCIAL MANAGEMENT |       2.247 |                            2.247 |                              263 |      nmf. |                     - |         263 |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+
|  PRE TAX RESULT       |       1.911 |                            3.317 |                            (418) |      nmf. |               (3.467) |     (3.885) |
+-----------------------+-------------+----------------------------------+----------------------------------+-----------+-----------------------+-------------+

(*) Accounting effects of the price allocation relating to acquisitions made since April 2006 of the Arcom Group, Applied Data Systems Inc. and the Advanet Group.

Group revenues increased from E50.76 million in the twelve months of 2006 to E76.53 million in the same period of 2007, reporting healthy growth of 50.8% or E25.77 million.

The year reported gross profit with an impact on revenue of 49.7% (50.2% in 2006). Eliminating the effects of price allocation, gross profit would be better, accounting for 50.4% of revenue (51.5% in 2006). The performance of gross profit reflects the business model of Eurotech, based on sale of high value-added products.

EBITDA in the fourth quarter reported a positive result of E1.78 million, accounting for 2,3% of revenue. Once again, net of purchase price allocation EBITDA would be E2.3 million, accounting for 3.0% of revenue. Due to the fixed nature of Company's operating costs, the performance of EBITDA is strictly related to revenue and gross profit. The results in terms of EBITDA in the year 2007 compared with 2006 were negatively affected by a higher percentage of operating costs on revenue.

EBIT was influenced by the negative effects of amortisation due to price allocation of the Arcom Group, Applied Data Systems Inc. and Advanet Group acquisitions. EBIT increased from - E336 thousand in 2006 to - E4.148 million in 2007. Amortisation arising from price allocation in the year 2007 came to E2.953 million, reporting an increase of E2,2 million compared with the E753 thousand reported in 2006. EBIT before purchase price allocation was negative for E681 thousand (the year 2006 reported a positive value of E1.070 million, accounting for 2.1% of revenue).

Without considering the extraordinary positive effect last year arising from the PTO on Radstone, which accounted for E1.223 million, financial management reported a negative change in absolute values of E657 thousand between 2006 and 2007 chiefly due to the depreciation for E 315 thousand of the associated company Neuricam and due to Euro / USD exchange rates.

Pre-tax income decreased from E1.911 million in the financial year 2006 to - E3.885 million in the year 2007. Stripping off the effects of price allocation, this figure would be better, - E418 thousand in 2007 and + E3.317 million in 2006. In absolute terms, net Group income worsened from E572 thousand in the year 2006 to a loss of E3.233 million in 2007. Eliminating the effects of price allocation, this result would have been significantly better, reporting a negative figure of E1.393 million in 2007 compared with the positive E1.467 million in 2006. Besides reflecting the trend in pre-tax performance, this result was mainly due to the tax burden of the Group's various companies and to a lesser extent minority interest.

At 31 December 2007, the Group reported a positive net financial position of E12.5 million.

In accordance with section 2 of Article 154-bis the Unified Financial Law, the Financial Reporting Manager, Eros Goi, declared that the accounting disclosure contained in this press release corresponds to the documentary records, ledgers and accounting entries.

THE EUROTECH GROUP
Eurotech (ETH.MI) is a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (HPCs).

Eurotech S.p.A. www.eurotech.com

Company contacts:

Investor relations
Massimo Mauri
Tel. 0433-485411
E-mail: [email protected]

Communication Department
Cristiana della Zonca
Tel. 0433-485411
E-mail: [email protected]

Press Office:

Community

Communication consulting
Mark Rubino
Tel. 02-89404231
E-mail: [email protected]

ATTACHMENTS - FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|      CONSOLIDATED INCOME STATEMENT     |  4th Qtr |    %    |  4th Qtr |    %    |  31/12/2006 |    %    |  31/12/2007 |    %    |  change (b-a) |          |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  (E'000)                               |     2006 |         |     2007 |         |             |         |             |         |        amount |        % |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|                                        |          |         |          |         |             |         |             |         |               |          |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Sales revenue                         |   15,834 |  100.0% |   26,307 |  100.0% |      50,759 |  100.0% |      76,531 |  100.0% |        25,772 |    50.8% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|                                        |          |         |          |         |             |         |             |         |               |          |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Cost of material                      |   -7,452 |  -47.1% |  -13,017 |  -49.5% |     -25,296 |  -49.8% |     -38,459 |  -50.3% |       -13,163 |    52.0% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Gross profit                          |    8,382 |   52.9% |    13,29 |   50.5% |      25,463 |   50.2% |      38,072 |   49.7% |        12,609 |    49.5% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Services costs                        |   -3,621 |  -22.9% |   -4,418 |  -16.8% |     -11,601 |  -22.9% |     -14,405 |  -18.8% |        -2,804 |    24.2% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Lease & hire costs                    |     -310 |   -2.0% |     -403 |   -1.5% |      -1,007 |   -2.0% |      -1,439 |   -1.9% |          -432 |    42.9% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Payroll costs                         |   -3,594 |  -22.7% |   -6,922 |  -26.3% |     -12,889 |  -25.4% |     -22,652 |  -29.6% |        -9,763 |    75.7% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Other provisions and costs            |     -152 |   -1.0% |     -573 |   -2.2% |        -296 |   -0.6% |      -1,252 |   -1.6% |          -956 |   323.0% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Other revenues                        |    1,053 |    6.7% |    1,177 |    4.5% |       2,703 |    5.3% |       3,457 |    4.5% |           754 |    27.9% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|                                        |          |         |          |         |             |         |             |         |               |          |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|                                        |          |         |          |         |             |         |             |         |               |          |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  EBITDA                                |    1,758 |   11.1% |    2,151 |    8.2% |       2,373 |    4.7% |       1,781 |    2.3% |          -592 |   -24.9% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Depreciation & Amortization           |     -830 |   -5.2% |   -2,524 |   -9.6% |      -2,528 |   -5.0% |      -5,692 |   -7.4% |        -3,164 |   125.2% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Asset impairment                      |     -181 |   -1.1% |     -174 |   -0.7% |        -181 |   -0.4% |        -237 |   -0.3% |           -56 |    30.9% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  EBIT                                  |      747 |    4.7% |     -547 |   -2.1% |        -336 |   -0.7% |      -4,148 |   -5.4% |        -3,812 |     n.s. |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|                                        |          |         |          |         |             |         |             |         |               |          |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Share of associates' profit at equity |      -51 |   -0.3% |     -276 |   -1.0% |         -51 |   -0.1% |        -315 |   -0.4% |          -264 |     n.s. |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  PTO launch charges                    |        0 |    0.0% |        0 |    0.0% |       -1,86 |   -3.7% |           0 |    0.0% |          1,86 |  -100.0% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Income from PTO                       |        0 |    0.0% |        0 |    0.0% |       3,083 |    6.1% |           0 |    0.0% |        -3,083 |  -100.0% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Finance expense                       |     -696 |   -4.4% |     -796 |   -3.0% |      -2,033 |   -4.0% |      -2,264 |   -3.0% |          -231 |    11.4% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Finance income                        |    1,789 |   11.3% |      442 |    1.7% |       3,022 |    6.0% |       2,842 |    3.7% |          -180 |    -6.0% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Profit before tax                     |    1,875 |   11.8% |   -1,177 |   -4.5% |       1,911 |    3.8% |      -3,885 |   -5.1% |        -5,796 |  -303.3% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Income tax                            |     -489 |   -3.1% |      397 |    1.5% |      -1,445 |   -2.8% |         425 |    0.6% |          1,87 |  -129.4% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Net profit before minority interest   |    1,386 |    8.8% |     -780 |   -3.0% |         466 |    0.9% |       -3,46 |   -4.5% |        -3,926 |     n.s. |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Minority interest                     |        7 |    0.0% |     -232 |   -0.9% |        -106 |   -0.2% |        -227 |   -0.3% |          -121 |   114.2% |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|                                        |          |         |          |         |             |         |             |         |               |          |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+
|  Group net profit (loss)               |    1,379 |    8.7% |     -548 |   -2.1% |         572 |    1.1% |      -3,233 |   -4.2% |        -3,805 |     n.s. |
+----------------------------------------+----------+---------+----------+---------+-------------+---------+-------------+---------+---------------+----------+

CONSOLIDATED INCOME STATEMENT - RECONCILIATION OF OPERATING AND REPORTED DATA

+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  4th Q 2007 |    %    |  4th Q 2007 net of |    %    |   OPERATING DATA (E'000)   |     31/12/2007    |    %    |  Effect of purchase price allocation |  31-12-2007 net of |    %    |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |   price allocation |         |                            |  price allocation |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  26,307     |  100.0% |             26,307 |  100.0% |             SALES REVENUES |            76,531 |  100.0% |                                      |             76,531 |  100.0% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -13,017    |  -49.5% |            -12,723 |  -48.4% |          COST OF MATERIALS |           -38,459 |  -50.3% |                                  514 |            -37,945 |  -49.6% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  13,29      |   50.5% |             13,584 |   51.6% |               GROSS PROFIT |            38,072 |   49.7% |                                  514 |             38,586 |   50.4% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -12,316    |  -46.8% |            -12,316 |  -46.8% |  OTHER OPERATING COSTS (*) |           -39,748 |  -51.9% |                                      |            -39,748 |  -51.9% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |            OTHER OPERATING |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  1,177      |    4.5% |              1,177 |    4.5% |              REVENUES (**) |             3,457 |    4.5% |                                      |              3,457 |    4.5% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  2,151      |    8.2% |              2,445 |    9.3% |                     EBITDA |             1,781 |    2.3% |                                  514 |              2,295 |    3.0% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |             DEPRECIATION & |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -2,698     |  -10.3% |             -1,219 |   -4.6% |               AMORTIZATION |            -5,929 |   -7.7% |                                2,953 |             -2,976 |   -3.9% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -547       |   -2.1% |              1,227 |    4.7% |                       EBIT |            -4,148 |   -5.4% |                                3,467 |               -681 |   -0.9% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -630       |   -2.4% |               -630 |   -2.4% |   FINANCE INCOME (EXPENSE) |               263 |    0.3% |                                      |                263 |    0.3% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -1,177     |   -4.5% |                597 |    2.3% |   PROFIT (LOSS) BEFORE TAX |            -3,885 |   -5.1% |                                3,467 |               -418 |   -0.5% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |                            |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  397        |    1.5% |               -316 |   -1.2% |                 INCOME TAX |               425 |    0.6% |                               -1,363 |               -938 |   -1.2% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |   NET PROFIT (LOSS) BEFORE |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -780       |   -3.0% |                281 |    1.1% |                 MINORITIES |             -3,46 |   -4.5% |                                2,104 |             -1,356 |   -1.8% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|             |         |                    |         |    GROUP NET PROFIT (LOSS) |                   |         |                                      |                    |         |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+
|  -548       |   -2.1% |                249 |    0.9% |                 FOR PERIOD |            -3,233 |   -4.2% |                                 1,84 |             -1,393 |   -1.8% |
+-------------+---------+--------------------+---------+----------------------------+-------------------+---------+--------------------------------------+--------------------+---------+

CONSOLIDATED BALANCE SHEET

+-----------------------------------------------+-------------+-------------+
|              (Thousands of Euro)              |  31/12/2006 |  31/12/2007 |
+-----------------------------------------------+-------------+-------------+
|                                               |             |             |
+-----------------------------------------------+-------------+-------------+
|  ASSETS                                       |             |             |
+-----------------------------------------------+-------------+-------------+
|  Intangible assets                            |      26,715 |     110,959 |
+-----------------------------------------------+-------------+-------------+
|  Property, Plant and equipment                |       4,121 |       6,681 |
+-----------------------------------------------+-------------+-------------+
|  Investments in associate and other companies |         757 |       1,071 |
+-----------------------------------------------+-------------+-------------+
|  Deferred tax assets                          |       3,715 |       1,802 |
+-----------------------------------------------+-------------+-------------+
|  Other non-current assets                     |         139 |         686 |
+-----------------------------------------------+-------------+-------------+
|  Total non-current assets                     |      35,447 |     121,199 |
+-----------------------------------------------+-------------+-------------+
|  Inventories                                  |      12,307 |      22,093 |
+-----------------------------------------------+-------------+-------------+
|  Contracts in progress                        |         810 |       2,364 |
+-----------------------------------------------+-------------+-------------+
|  Trade receivables                            |      10,351 |      18,819 |
+-----------------------------------------------+-------------+-------------+
|  Other current assets                         |        4,26 |       7,487 |
+-----------------------------------------------+-------------+-------------+
|  Derivative instruments                       |           0 |          82 |
+-----------------------------------------------+-------------+-------------+
|  Cash & cash equivalents                      |     119,614 |      56,604 |
+-----------------------------------------------+-------------+-------------+
|  Totale current assets                        |     147,342 |     107,449 |
+-----------------------------------------------+-------------+-------------+
|  Total assets                                 |     182,789 |     228,648 |
+-----------------------------------------------+-------------+-------------+
|                                               |             |             |
+-----------------------------------------------+-------------+-------------+
|                                               |             |             |
+-----------------------------------------------+-------------+-------------+
|                                               |             |             |
+-----------------------------------------------+-------------+-------------+
|  LIABILITIES AND EQUITY                       |             |             |
+-----------------------------------------------+-------------+-------------+
|  Share capital                                |       8,751 |       8,879 |
+-----------------------------------------------+-------------+-------------+
|  Reserves                                     |     131,436 |     125,763 |
+-----------------------------------------------+-------------+-------------+
|  Net profit (loss) for period                 |         572 |      -3,233 |
+-----------------------------------------------+-------------+-------------+
|  Group shareholders' equity                   |     140,759 |     131,409 |
+-----------------------------------------------+-------------+-------------+
|  Minority capital and reserves                |          39 |       8,223 |
+-----------------------------------------------+-------------+-------------+
|  Minority profit (loss) for period            |           8 |        -227 |
+-----------------------------------------------+-------------+-------------+
|  Equity attributable to minority interest     |          47 |       7,996 |
+-----------------------------------------------+-------------+-------------+
|  Total shareholders' equity                   |     140,806 |     139,405 |
+-----------------------------------------------+-------------+-------------+
|  Medium-/long-term borrowing                  |       15,91 |      34,178 |
+-----------------------------------------------+-------------+-------------+
|  Employee benefit obligations                 |         569 |        1,88 |
+-----------------------------------------------+-------------+-------------+
|  Deferred tax liabilities                     |       3,594 |       15,79 |
+-----------------------------------------------+-------------+-------------+
|  Other non-current liabilities                |         374 |         977 |
+-----------------------------------------------+-------------+-------------+
|  Total non-current liabilities                |      20,447 |      52,825 |
+-----------------------------------------------+-------------+-------------+
|  Trade payables                               |      12,234 |      14,503 |
+-----------------------------------------------+-------------+-------------+
|  Short-term borrowing                         |        3,79 |       9,965 |
+-----------------------------------------------+-------------+-------------+
|  Derivative instruments                       |          15 |           0 |
+-----------------------------------------------+-------------+-------------+
|  Tax liabilities                              |       2,885 |       2,834 |
+-----------------------------------------------+-------------+-------------+
|  Other current liabilities                    |       2,612 |       9,116 |
+-----------------------------------------------+-------------+-------------+
|  Total current liabilities                    |      21,536 |      36,418 |
+-----------------------------------------------+-------------+-------------+
|  Total liabilities                            |      41,983 |      89,243 |
+-----------------------------------------------+-------------+-------------+
|  Total liabilities and equity                 |     182,789 |     228,648 |
+-----------------------------------------------+-------------+-------------+

NET FINANCIAL POSITION

+-------------------------------------------+-------------+-------------+
|                  (E'000)                  |  31/12/2006 |  31/12/2007 |
+-------------------------------------------+-------------+-------------+
|                                           |             |             |
+-------------------------------------------+-------------+-------------+
|  Cash & cash equivalents                  |    -119,614 |     -56,604 |
+-------------------------------------------+-------------+-------------+
|  Derivative instruments                   |          15 |         -82 |
+-------------------------------------------+-------------+-------------+
|  Short-term borrowing                     |        3,79 |       9,965 |
+-------------------------------------------+-------------+-------------+
|  Short-term net financial position        |    -115,809 |     -46,721 |
+-------------------------------------------+-------------+-------------+
|                                           |             |             |
+-------------------------------------------+-------------+-------------+
|                                           |             |             |
+-------------------------------------------+-------------+-------------+
|  Medium-/long-term borrowing              |       15,91 |      34,178 |
+-------------------------------------------+-------------+-------------+
|  Medium-/long-term net financial position |       15,91 |      34,178 |
+-------------------------------------------+-------------+-------------+
|                                           |             |             |
+-------------------------------------------+-------------+-------------+
|  NET FINANCIAL POSITION                   |     -99,899 |     -12,543 |
+-------------------------------------------+-------------+-------------+

NET WORKING CAPITAL

+----------------------------+-------------+-------------+----------+
|           (E'000)          |  31/12/2006 |  31/12/2007 |  Changes |
+----------------------------+-------------+-------------+----------+
|                            |         (a) |         (b) |    (b-a) |
+----------------------------+-------------+-------------+----------+
|                            |             |             |          |
+----------------------------+-------------+-------------+----------+
|  Inventories               |      12,307 |      22,093 |    9,786 |
+----------------------------+-------------+-------------+----------+
|  Contracts in progress     |         810 |       2,364 |    1,554 |
+----------------------------+-------------+-------------+----------+
|  Trade receivables         |      10,351 |      18,819 |    8,468 |
+----------------------------+-------------+-------------+----------+
|  Other current assets      |        4,26 |       7,487 |    3,227 |
+----------------------------+-------------+-------------+----------+
|  Current assets            |      27,728 |      50,763 |   23,035 |
+----------------------------+-------------+-------------+----------+
|  Trade payables            |     -12,234 |     -14,503 |   -2,269 |
+----------------------------+-------------+-------------+----------+
|  Tax liabilities           |      -2,885 |      -2,834 |       51 |
+----------------------------+-------------+-------------+----------+
|  Other current liabilities |   ,  -2,612 |      -9,116 |   -6,504 |
+----------------------------+-------------+-------------+----------+
|  Current liabilities       |     -17,731 |     -26,453 |   -8,722 |
+----------------------------+-------------+-------------+----------+
|  Net working capital       |       9,997 |       24,31 |   14,313 |
+----------------------------+-------------+-------------+----------+

Copyright Hugin