HALF-YEAR RESULTS 2008

Half-year results 2008

Operating margin: 9.0% – Net margin: 6.2%

Bagnolet, 29 August 2008

Infotel has had good performance during the first half of 2008. Activity has increased at 10% on a like-for-like basis and is still above the sector average. The level of profitability continues to be very satisfactory, although it is behind compared to the excellent first half of 2007 and is in line with the company’s annual targets.

* Due to the sale of Odaxys Consulting end of 2007, H1 2007 should be reprocessed in order to compare it on a like-for-like basis with H1 2008.

ACTIVITY: 12.7% GROWTH FOR SERVICES AND IMPACT OF THE DOLLAR ON SOFTWARE

Regarding Services (93.7% consolidated turnover), the half-year turnover was established at € 41.53 M, as opposed to € 37.66 M in the first half of 2007, an increase of 12.70% (10.25% on a reported basis). This growth above market average (4.5 to 6.5% for 2008 according to Syntec Informatique) took place despite a slower run-up in the year than in 2007. The efforts were spent on improving the group’s positions in the service desks in key clients. The signing of major contracts at the end of the first half of the year (Banking, Insurance, Pensions, and Industry, notably) and negotiations of other businesses predict a second half of the year full of activity, both in Paris and the regions, where Infotel is developing its “nearshore” service desks.

Regarding Software, the half-year turnover is € 2.82 M as opposed to € 3.47 M in 2007, a drop of 18.8% compared to the first half of 2007. This decrease is due to the impact of the weak dollar and a comparison with the first half of 2007 which presented record figures in terms of revenue.

RESULTS: IMPACT OF THE DROP IN SOFTWARE AND UNFAVOURABLE BASE EFFECT

In the first half of 2008, the operating income was €4.01 M (as opposed to € 4.40 M in H1 2007 on a like-for-like basis), and the consolidated net profit is € 2.74 M (as opposed to € 2.94 M in H1 2007 on a like-for-like basis).

Apart from an unfavourable base effect associated with a record first half of 2007, this results calculation is explained principally by the impact of the low activity in Software. In fact, while this division only represents 6.4% of the Group’s turnover, more than 50% of its revenue is made up by royalties in US dollars, which contributes significantly to its profitability.

A SOLID FINANCIAL STRUCTURE

With a net cash over €16.50 M at 30 June 2008 and more than € 28 M in equity, Infotel is supported by a solid financial structure while continuing its development strategy.

IN LINE WITH THE STRATEGIC PLAN 2008

Infotel approaches the end of 2008 with confidence. The second half of the year promises to be favourable for Services and for Software, which must yield a year comparable to 2007 (at the current level of the dollar), enabling the Group to stay in line with its strategic plan.
Infotel will define its target figures for 2008 at an information session that will take place on 18 September in the morning.

Next meetings:
Half-year information meeting: 18 September 2008 at 8:30 am
Participation at the Midcap Event 29 & 30 September 2008
Q3 Turnover: 22 October 2008 (communicated after trading)

About Infotel

Listed on Compartment C of Euronext Paris since January 1999 (ISIN code FR0000071797), Infotel is positioned at the forefront of technology innovation for companies, offering database and web application solutions. Infotel develops its expertise around two core divisions: IT services and high-tech software. In 2007, Infotel achieved a turnover of € 84.4 M.