RESULTATEN GLOBAL GRAPHICS VIERDE KWARTAAL EN BOEKJAAR 2007

PERSMEDEDELING Contactpersoon: Alain Pronost, CFO Tel.: + 33 6 62 60 56 51 RESULTATEN GLOBAL GRAPHICS VIERDE KWARTAAL EN BOEKJAAR 2007. Pompey, (Frankrijk), 13 februari 2008 – GLOBAL GRAPHICS SA (Euronext: GLOG), de specialist in de ontwikkeling van technologie voor open document en drukoplossingen, maakt de financiële resultaten bekend van het vierde kwartaal en het jaar eindigend op 31 december 2007. De vergelijking van het vierde kwartaal van 2007 met het vierde kwartaal van 2006 omvat: Omzet van 3,5 miljoen euro (3,8 miljoen euro tegen wisselkoersen van het vierde kwartaal 2006) t.o.v. 5,0 miljoen euro in het vierde kwartaal 2006; Bedrijfswinst van 1,1 miljoen euro t.o.v. 1,9 miljoen euro in het vierde kwartaal 2006; Aangepaste bedrijfswinst van 0,6 miljoen euro voor dit kwartaal t.o.v. 1,6 miljoen euro in het vierde kwartaal 2006; Aangepaste winst vóór belastingen van 0,7 miljoen euro voor dit kwartaal (of 0,06 euro per aandeel) t.o.v. 1,6 miljoen euro in het vierde kwartaal 2006 (of 0,16 euro per aandeel); Nettowinst van 0,0 miljoen euro voor dit kwartaal (of 0,00 euro per aandeel) t.o.v. 1,6 miljoen euro in het vierde kwartaal van 2006 (of 0,16 euro per aandeel); Aangepast nettoverlies van 0,4 miljoen euro (of een aangepast nettoverlies van 0,03 euro per aandeel) t.o.v. een aangepaste nettowinst van 1,4 miljoen euro in het vierde kwartaal van 2006 (of een aangepaste nettowinst van 0,14 euro per aandeel). In zijn toelichting op de prestaties stelde Jim Freidah, Chief Operating Officer: “In alle segmenten werd de omzet beïnvloed door de aanvang van een economische vertraging in het vierde kwartaal van 2007, die het meest zichtbaar was in de VS. De zwakke dollar, onze belangrijkste verkoopsvaluta, drukte ook verder op onze omzet en resultaten. In het laatste kwartaal van 2007 presteerde de traditionele grafische markt verder ondermaats, waardoor de omzet, bij constante wisselkoersen, 24,2% lager lag dan in het vierde kwartaal van 2006. De vertraging betrof zowel onze klanten actief in hardwareproductie alsook de systeemintegratoren. De omzet in de segmenten voor digitale druk en elektronische documenten daalde met 22,4% (bij constante wisselkoersen) t.o.v. het vierde kwartaal 2006. Dit was voornamelijk te wijten aan de timing van de omzettoerekening van de XPS-contracten die wij in het vierde kwartaal van 2006 hebben getekend. De onderneming sloot weliswaar drie nieuwe eDocument contracten in het vierde kwartaal van 2007, waaronder twee XPS-gerelateerd, en lanceerde een nieuwe productlijn van drukker/MFP onderdelen met ingebouwde RIP- technologie van Global Graphics. Hoewel de markt de XPS-technologie in drukapparatuur en toepassingssoftware slechts langzaam opneemt waardoor nieuwe zakelijke opportuniteiten uitgesteld worden, blijven wij in diverse stadia van

gesprek en onderhandeling met een brede waaier van potentiële klanten, niet alleen voor XPS maar eveneens voor onze ruimere RIP- en de daarmee verbonden eDocument technologie.” Performance van het vierde kwartaal 2007 De omzet van het vierde kwartaal 2007 bedroeg 3,5 miljoen euro, t.o.v. 5,0 miljoen euro in het vierde kwartaal van 2006, of een daling met 30,2% tegen huidige wisselkoersen. Gedurende dit kwartaal werd ongeveer 86,4% van de omzet uitgedrukt in US dollar (tegen een gemiddelde koers van USD 1,445 voor 1 euro) en koersschommelingen met de euro bleven invloed uitoefenen op de omzet en op de resultaten van het bedrijf. Indien de omzet van het vierde kwartaal omgerekend werd tegen de gemiddelde dollarkoers van het vierde kwartaal 2006 (USD 1,299 voor 1 euro), dan zou de omzet ongeveer 3,8 miljoen euro hebben bedragen, wat neerkomt op een daling van 23,0%, tegen constante wisselkoersen, t.o.v. de omzet van het vierde kwartaal 2006. De totale bedrijfskosten (exclusief kosten voor verkoop, afschrijving van immateriële activa, uitgaven voor aandelencompensatie evenals het netto-effect van de kapitalisatie van ontwikkelingsuitgaven voor 0,6 miljoen euro) bedroegen in het vierde kwartaal van 2007 2,8 miljoen euro tegenover 3,2 miljoen euro in dezelfde periode van 2006, en t.o.v. 3,1 miljoen euro in het derde kwartaal van 2007 en t.o.v. 3,4 miljoen euro in het tweede kwartaal van 2007. De opeenvolgende daling is het gevolg van de combinatie van twee factoren: enerzijds het kostenbeheersingbeleid dat het management doorheen het jaar 2007 voerde en anderzijds de gunstige evolutie van de wisselkoers van de euro t.o.v. het Britse pond in het vierde kwartaal van 2007. De bedrijfswinst bedroeg dit kwartaal 1,1 miljoen euro (of 31,5% van de kwartaalomzet), t.o.v. 1,9 miljoen euro tijdens het vierde kwartaal van 2006 (of 37,7% van de omzet van het vierde kwartaal van 2006), wat een daling van 41,6% betekent t.o.v. het voor het vierde kwartaal van 2006 gerapporteerde cijfer. De aangepaste bedrijfswinst (of EBITA, zoals gedefinieerd in de onderstaande tabel) bedroeg voor dit kwartaal 0,6 miljoen euro in vergelijking met 1,6 miljoen euro voor het vierde kwartaal 2006, of een daling met 63,7% % t.o.v. het voor het vierde kwartaal van 2006 gerapporteerde cijfer. Bijgevolg viel de EBITA marge terug tot 16,7% van de kwartaalomzet, t.o.v. 32,1% in het vierde kwartaal van 2006. De aangepaste winst vóór belasting (zoals gedefinieerd in de onderstaande tabel) bedroeg dit kwartaal 0,7 miljoen euro, t.o.v. 1,6 miljoen euro in het vierde kwartaal van 2006, of een daling met 60,2% t.o.v. het voor het vierde kwartaal van 2006 gerapporteerde cijfer. Bijgevolg bedroeg de aangepaste winst vóór belasting per aandeel voor dit kwartaal 0,06 euro t.o.v. 0,16 euro in het vierde kwartaal van 2006. De nettowinst voor dit kwartaal was lichtjes positief (0,00 euro per aandeel), na de verwerking van een belastingskost van 1,1 miljoen euro, t.o.v. 1,6 miljoen euro in het vierde kwartaal van 2006 (of 0,16 euro per aandeel). Als gevolg daarvan rapporteerde de onderneming een aangepast netto verlies (zoals gedefinieerd in de onderstaande tabel) van 0,4 miljoen euro voor dit kwartaal (of een aangepast nettoverlies van 0,03 euro per aandeel) tegenover een aangepaste nettowinst van 1,4 miljoen euro in het vierde kwartaal 2006 (of een aangepaste netto winst van 0,14 euro per aandeel).

Performance over het volledige jaar 2007 Voor het ganse jaar 2007 bedroeg de omzet 16,4 miljoen euro, t.o.v. 17,0 miljoen euro in 2006, of een daling van 3,8%, tegen de huidige wisselkoersen. Dit omzetcijfer ligt 3,7% onder het cijfer van 17,0 miljoen euro dat de bedrijfsleiding in oktober 2007 had opgegeven als de geschatte ondergrens van de voorziene omzetvork voor 2007. Dit is vooral te wijten aan de ongunstige evolutie van de dollar/euro wisselkoers in vergelijking met het vierde kwartaal 2006 toen de koers 1,445 bedroeg, wat ruim boven de wisselkoers van 1,417 lag die de basis vormde bij de voorbereiding van de vooruitzichten voor 2007. In 2007 werd ongeveer 85,7% van de bedrijfsomzet uitgedrukt in US dollar (tegen een gemiddelde dollarkoers van 1,365 US dollar voor 1 euro). Indien de omzet van 2007 omgerekend werd tegen de gemiddelde dollarkoers voor 2006 (1,259 US dollar voor 1 euro) dan zou de totale omzet voor 2007 17,7 miljoen euro hebben bedragen, of een stijging van 4,2% t.o.v. de omzet van 2006, bij constante wisselkoersen. T.o.v. 2006 viel de omzet in de traditionele grafische markt in 2007 met 27,3% terug, bij huidige wisselkoersen (of een daling van 21,0% tegen constante wisselkoersen). In de nieuwe segmenten, meer bepaald digitale druk en elektronische documenten, steeg de omzet t.o.v. 2006 met 14,1%, tegen huidige wisselkoersen (of een stijging van 23,3% tegen constante wisselkoersen) en was daarmee goed voor 67,4% van de totale omzet voor 2007 t.o.v. 56,8% van de omzet in 2006. De totale bedrijfskosten (exclusief kosten voor verkoop, afschrijving van immateriële activa, uitgaven voor aandelencompensatie evenals het netto-effect van de kapitalisatie van de uitgaven voor ontwikkeling voor een bedrag van 2,9 miljoen euro) bedroegen voor 2007 12,9 miljoen euro tegenover 13,0 miljoen euro in 2006 en beduidend onder de vork van 13,3 tot 13,5 miljoen euro die het management in oktober 2007 had aangegeven. De bedrijfswinst voor 2007 bedroeg 5,2 miljoen euro (of 32,0% van de jaaromzet), t.o.v. 4,3 miljoen euro voor 2006 (of 25,5% van de jaaromzet van 2006) of een groei van 20,6% t.o.v. het cijfer gerapporteerd voor 2006. De aangepaste bedrijfswinst (EBITA) voor 2007 bedroeg 3,0 miljoen euro (of 18,2% van de omzet van 2007) t.o.v. 3,6 miljoen euro in 2006 (of 21,0% van de omzet van 2006), of een daling van 16,6% t.o.v. het cijfer gerapporteerd voor 2006. Dit bedrag ligt 6,9% onder het cijfer van 3,2 miljoen euro dat het management in oktober 2007 had opgegeven als de ondergrens van de geraamde EBITA-vork voor 2007, voornamelijk als gevolg van de reeds vermelde omzetdaling. De aangepaste winst vóór belasting bedroeg voor 2007 3,0 miljoen euro (of 0,30 euro per aandeel), t.o.v. 3,9 miljoen euro (of 0,38 euro per aandeel) in 2006, of een daling van 21,5% t.o.v. het voor 2006 gerapporteerde cijfer. Deze aangepaste winst vóór belastingen per aandeel ligt 3,2% onder het cijfer van 0,31 euro per aandeel dat de bedrijfsleiding in oktober 2007 had opgegeven als de ondergrens van de geschatte aangepaste winst vóór belasting per aandeel vork voor 2007. De nettowinst bedroeg in 2007 3,3 miljoen euro (of 0,32 euro per aandeel), t.o.v. 3,0 miljoen euro in 2006 (of 0,29 euro per aandeel), of een stijging van 9,4% t.o.v. het cijfer gerapporteerd voor 2006.

De aangepaste netto winst voor 2007 was 2,0 miljoen euro (of 0,20 euro per aandeel), tegenover 2,5 miljoen euro in 2006 (of 0,25 euro per aandeel) of een daling met 20,6% t.o.v. het cijfer gerapporteerd voor 2006. Perspectief voor 2008 Jim Freidah vervolgde: “Op korte termijn verwachten wij dat de factoren die het vierde kwartaal van 2007 hebben beïnvloed verder zullen spelen, met inbegrip van de consolidatie van de traditionele grafische markt, de dollar/euro wisselkoers, de actuele economische factoren en de langzame marktopname van de XPS-technologie. Desondanks blijft het segment voor digitale druk en elektronische documenten actief hoewel het beïnvloed wordt door de trage opname van de XPS-technologie. We blijven vol vertrouwen voor onze langetermijnperspectieven omdat Global Graphics goed gepositioneerd is in de markt, een significant concurrentieel voordeel bezit inzake druktechnologie, verder nieuwe en unieke oplossingen ontwikkelt en rust op sterke financiële fundamenten. Omwille van het resultaat van de lopende onderhandelingen met potentiële klanten in de komende maanden, zullen wij de vooruitzichten inzake omzet en resultaten voor het jaar 2008 voorstellen op vrijdag 25 april 2008, datum waarop wij verwachten de resultaten over het eerste kwartaal, dat eindigt op 31 maart 2008, bekend te maken.” De onderneming heeft haar organisatie grondig doorgelicht met het oog op toekomstige markt trends en klantenbehoeften. Dit resulteerde in een personeelsvermindering die in januari 2008 werd doorgevoerd en wij verwachten in het eerste kwartaal van 2008 niet-wederkerende ontslagkosten te boeken voor een bedrag van ca. 0,3 miljoen euro. Deze en andere geplande aanpassingen aan de kostenstructuur doorheen 2008 zullen de onderneming een kostenbesparing opleveren van ca. 1,0 miljoen euro t.o.v. het kostenniveau van 2007. Praktische inlichtingen i.v.m. de telefoonconferentie over de resultaten van het vierde kwartaal en het volledige jaar 2007 Global Graphics zal vandaag om 10u00 CET een telefoonconferentie houden over de resultaten van het vierde kwartaal en het boekjaar eindigend op 31 december 2007. Bellers dienen het nummer +44 (0) 20 7162 0025 te kiezen en "Global Graphics quarterly results conference call" te vermelden aan de operator. Deze telefoonconferentie kan de volgende 7 werkdagen herbeluisterd worden op het nummer +44 (0) 20 7031 4064, toegangscode 61692. Verslag van de revisoren over de geconsolideerde jaarrekening van 2007 De aangehechte geconsolideerde jaarrekening en een selectie van de daarbij horende toelichting die werd opgesteld door de raad van bestuur van de onderneming op 12 februari 2008, werden geverifieerd door de revisoren van de onderneming en zijn daarom definitief. De revisoren van de onderneming hebben nog bijkomende revisoropdrachten uit te voeren met inbegrip van, maar niet beperkt tot, de statutaire rekeningen van de onderneming en de volledige versie van de toelichting aangehecht aan de geconsolideerde jaarrekeningen. Zoals in vorige jaren zal hun eindverslag opgenomen worden in het Jaarverslag van de onderneming voor het boekjaar dat eindigde op 31 december 2007. Jaarverslag voor 2007 De onderneming verwacht de elektronische versies van haar Jaarverslag (in het Engels en het Frans) te publiceren op of rond 26 maart 2008. Gedrukte exemplaren van de Engelstalige en de Franstalige versie van het Jaarverslag zullen kort nadien beschikbaar zijn. Mocht u één of

meerdere exemplaren van het Jaarverslag 2007 van de onderneming willen ontvangen, gelieve ons dit te laten weten door een email te sturen naar: [email protected], of via brief of fax naar de maatschappelijke zetel van de vennootschap. Bekendmaking van de resultaten van het eerste kwartaal 2008 Global Graphics verwacht de financiële resultaten voor het kwartaal eindigend op 31 maart 2008 bekend te maken op vrijdag 25 april 2008 vóór beurstijd. Algemene vergadering van aandeelhouders De gewone algemene vergadering van aandeelhouders heeft plaats op vrijdag 25 april 2008 te Brussel. Het precieze tijdstip, de agenda en stemprocedures zullen minstens 35 dagen voor deze datum bekend gemaakt worden. Over Global Graphics Global Graphics (http://www.globalgraphics.com) is een toonaangevende ontwikkelaar van open document technologie en drukoplossingen. Het levert krachtige en gesofistikeerde softwarecomponenten voor de grafische en commerciële drukindustrie, voor de markt van digitale druk en voor PDF (Portable Document Format) software toepassingen. Global Graphics verkoopt zijn RIP, PDF, workflow en kleurentoepassingen aan een klantenkring die hoofdzakelijk bestaat uit apparatuurproducenten (OEMs), systeemintegrators, softwareontwikkelaars en distributeurs. Deze partners omvatten de meeste belangrijke spelers in de pre-press wereld, breedformaatkleurenprinters, kleurproefystemen, digitale kopieerapparaten, printers voor de kantoor- en SOHO-markt (kleine en thuiskantoren) en een brede waaier van toonaangevende softwaretoepassingen. Toekomstgerichte verklaringen Dit persbericht bevat, naast historische informatie, toekomstgerichte verklaringen die risico’s en onzekerheden inhouden. Dit omvat verklaringen aangaande de groei- en expansieplannen van de onderneming, haar financiering en de verwachte resultaten voor toekomstige perioden. Dergelijke verklaringen steunen op de huidige verwachtingen van het management en zijn onderhevig aan een aantal onzekerheden en risico’s die ertoe zouden kunnen leiden dat de feitelijke resultaten materieel verschillen van die beschreven in de toekomstgerichte verklaringen. Hoewel het management ervan overtuigd is dar zijn verwachtingen die in de toekomstgerichte verklaringen naar voren komen redelijk zijn, gebaseerd op de thans beschikbare informatie, kan het aan niemand garanderen dat de verwachtingen juist zullen blijken. Dienovereenkomstig is het aangewezen dat lezers niet louter en alleen op deze toekomstgerichte verklaringen vertrouwen. In ieder geval zijn deze verklaringen van toepassing op de datum van deze persmededeling. De vennootschap neemt geen enkele verplichting op zich om de hier geuite verklaringen te herzien of te actualiseren teneinde gebeurtenissen of omstandigheden van na de datum van deze mededeling of nieuwe informatie of het voorkomen van onvoorziene gebeurtenissen te reflecteren.

GLOBAL GRAPHICS SA AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENT In thousands of Euro, except share data in Euro Quarters ended 31 December 2007 2006 Unaudited figures Sales Cost of sales Amortization of intangible assets GROSS PROFIT Selling, general and admin. expenses Research and development expenses Share-based compensation expenses Amortization of intangible assets OPERATING PROFIT Interest income (note 5) Interest expenses (note 5) Net foreign exchange gains (note 5) PROFIT BEFORE INCOME TAX Income tax expense (note 6) NET PROFIT EARNINGS PER SHARE (note 7) Basic net profit per share Diluted net profit per share

Years ended 31 December 2007 2006 Audited figures

3,471 (106) (16) 3,349

4,974 (137) (17) 4,820

16,379 (460) (68) 15,851

17,024 (480) (68) 16,476

(1,099) (1,036) (100) (19) 1,095

(1,293) (1,591) (41) (19) 1,876

(5,305) (4,777) (449) (76) 5,244

(5,785) (6,093) (174) (76) 4,348

19 0 50 1,164

21 (21) 39 1,915

56 (6) 21 5,315

101 (130) 354 4,673

(1,149)

(303)

(2,043)

(1,681)

15

1,612

3,272

2,992

0.00 0.00

0.16 0.16

0.32 0.32

0.29 0.29

The accompanying selected explanatory notes are an integral part of the Company’s condensed consolidated financial statements as at and for the year ended 31 December 2007.

GLOBAL GRAPHICS SA AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET In thousands of Euro Audited figures 31 December 2007

31 December 2006

919 4,132 7,756 134 2,068 15,009

1,039 1,770 8,514 149 4,269 15,741

102 2,987 4 166 615 4,112 7,986

94 3,814 423 164 440 3,310 8,245

22,995

23,986

4,116 28,874 2,557 (1,180) (3,871) (8,753) 21,743

4,099 28,754 2,108 (399) (7,143) (6,638) 20,781

2 2

2 2

CURRENT LIABILITIES Bank overdrafts Trade payables Other payables Customer advances and deferred revenue TOTAL CURRENT LIABILITIES

0 391 313 546 1,250

234 457 837 1,675 3,203

TOTAL LIABILITIES

1,252

3,205

22,995

23,986

ASSETS NON-CURRENT ASSETS Property, plant and equipment Intangible assets Goodwill Other non-current assets Deferred tax assets, net (note 4) TOTAL NON-CURRENT ASSETS CURRENT ASSETS Inventories Trade receivables Current tax receivables Other current assets Prepaid expenses Cash TOTAL CURRENT ASSETS TOTAL ASSETS LIABILITIES & SHAREHOLDERS’EQUITY SHAREHOLDERS’EQUITY Share capital (note 8) Share premium (note 8) Reserve for share options outstanding Reserve for own shares (note 9) Accumulated deficit Foreign currency translation reserve TOTAL SHAREHOLDERS’EQUITY LIABILITIES NON-CURRENT LIABILITIES Other non-current liabilities TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES & SHAREHOLDERS’EQUITY

The accompanying selected explanatory notes are an integral part of the Company’s condensed consolidated financial statements as at and for the year ended 31 December 2007.

GLOBAL GRAPHICS SA AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS In thousands of Euro Audited figures Years ended 31 December 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES * Profit before income tax * Adjustments for: Depreciation on property, plant and equipment Amortization of intangible assets Amortization of capitalized development expenses Share-based compensation expenses Net interest expenses (net interest income) Net foreign currency exchange losses (gains) Expenses offset against the share premium (note 8) Other items * Change in value of operating assets and liabilities: Inventories Trade receivables Current tax receivables Other current assets Prepaid expenses Trade payables Other payables Customer advances and deferred revenue * Interest income received in the period * Interest expenses paid in the period * Income tax paid in the period NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES * Acquisition of property, plant and equipment * Capitalization of development costs NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES * Proceeds from the exercise of share options (note 8) * Repurchase of own shares (note 9) * Repayment of bank overdrafts * Repayment of borrowings NET CASH USED IN FINANCING ACTIVITIES NET INCREASE (DECREASE) OF CASH CASH AT 1 JANUARY EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH HELD AT 1 JANUARY CASH AT 31 DECEMBER

5,315

4,673

387 144 364 449 (50) (21) (2) (514)

214 144 55 174 29 (354) (11) 675

(8) 827 419 (2) (175) (66) (524) (1,129) 50 (10) (93) 5,361

76 (215) (331) (130) (2) (69) 213 753 86 (127) (231) 5,622

(367) (3,223) (3,590)

(912) (1,149) (2,061)

139 (781) (234) 0 (876)

439 (399) (87) (4,440) (4,487)

895

(926)

3,310

4,548

(93)

(312)

4,112

3,310

The accompanying selected explanatory notes are an integral part of the Company’s condensed consolidated financial statements as at and for the year ended 31 December 2007.

GLOBAL GRAPHICS SA AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY In thousands of Euro Audited figures Years ended 31 December 2007 2006 Shareholders’ equity at 1 January

20,781

17,576

Recognized income for the period: * Net profit * Change in foreign currency translation reserve Total recognized income for the period

3,272 (2,115) 1,157

2,992 10 3,002

Effect of share-based compensation schemes: * Value of services rendered during the period * Net proceeds from the issue of shares (note 8) Total effect of share-based compensation schemes

449 137 586

174 428 602

(781)

(399)

21,743

20,781

Repurchase of own shares (note 9) Shareholders’ equity at 31 December

The accompanying selected explanatory notes are an integral part of the Company’s condensed consolidated financial statements as at and for the year ended 31 December 2007.

GLOBAL GRAPHICS SA AND SUBSIDIARIES SELECTED EXPLANATORY NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007 NOTE 1: REPORTING ENTITY These condensed consolidated financial statements as at and for the year ended 31 December 2007 comprise Global Graphics SA, a French-based company, and its subsidiaries (together referred to as ‘the Company’). They were approved for issue by the Board of Directors on 12 February 2008. NOTE 2: STATEMENT OF COMPLIANCE These condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and related interpretations issued by the International Accounting Standards Board, as adopted by the European Union. For the purposes of their inclusion in the Company’s year-end earnings release, they do not include all of the information required for full annual consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended 31 December 2006. NOTE 3: ACCOUNTING POLICIES AND METHODS (a) Basis of preparation These condensed consolidated financial statements as at and for the year ended 31 December 2007 have been prepared under the historical cost convention, except for the revaluation of derivative instruments at fair value through the income statement. Non-current assets are stated at the lower of amortized cost and fair value less disposal costs, when applicable. (b) Accounting policies and methods The accounting policies and methods used for the preparation of the Company’s condensed consolidated financial statements as at and for the year ended 31 December 2007 are the same as those used for the preparation of the Company’s consolidated financial statements as at and for the year ended 31 December 2006, which are set out in note 2 to the Company’s consolidated financial statements for that year. NOTE 4: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements in accordance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the Company’s accounting policies, and to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other relevant factors that are believed to be reasonable under the circumstances, the results of which form the basis of making management’s judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only such period or in the period and future periods if the revision affects both current and future periods.

Estimates and judgements made by management in the application of IFRSs that involve a higher degree of complexity, have a significant effect on the condensed consolidated financial statements as at and for the year ended 31 December 2007, or have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next twelve months, are discussed hereafter. (a) Impairment of goodwill and other intangible assets The Company is required to test annually whether goodwill and intangible assets with indefinite useful lives have suffered any impairment during the year in accordance with the accounting policy set out in note 2j to the Company’s consolidated financial statements for the year ended 31 December 2006. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations employed cash flow projections based on actual sales and operating results, as well as a four-year forecast for sales and operating margins approved by management. A pre-tax discount rate of 6.0% was used in discounting the projected cash flows. Based on the results of this review, no impairment charge was required in respect of this impairment test in either 2006 or 2007. (b) Capitalisation of computer software development costs As stated in note 2i to the Company’s consolidated financial statements for the year ended 31 December 2006, costs associated with developing or maintaining existing computer software technology and programmes are recognised as an expense when incurred. As required by IAS 38, Intangible assets (IAS 38), costs that are directly associated with the production of identifiable and unique software products over which the Company has proprietary rights, that can be measured reliably, and where it is probable that future economic benefits attributable to such software products will flow to the Company, are recognised as intangible assets. Such costs consist solely of direct costs, and only include software development employee costs. Computer software development costs recognized as intangible assets are then amortised over their estimated useful lives, starting from the completion date of the corresponding development project. (i) Capitalized development costs as at and for the year ended 31 December 2006 At 31 December 2006, the Company considered it could demonstrate that it met all of the above-mentioned recognition criteria for three development projects. Capitalized development expenses corresponding to the first project amounted to Euro 99,000 at 31 December 2006. The corresponding amortization charge which was recognized in the quarter and in the year ended 31 December 2006 with regards to this first project amounted to Euro 14,000 and Euro 55,000, respectively. Capitalized development expenses corresponding to the other two projects amounted to Euro 1,410,000 at 31 December 2006, following the capitalization of additional development expenses of Euro 368,000 and Euro 1,149,000 in the quarter and in the year ended 31 December 2006, respectively. As the development of these two projects was not completed at 31 December 2006, no amortization charge was recognized in the quarter and the year ended 31 December 2006 with regards to these two projects. (ii) Capitalized development costs as at and for the year ended 31 December 2007 At 31 December 2007, the Company considered it could demonstrate that it met all of the above-mentioned recognition criteria for the same three development projects.

Capitalized development expenses corresponding to the first project were fully amortized as at 30 June 2007: accordingly, no amortization charge was recognized with respect of this first project in the quarter ended 31 December 2007. The amortization charge which was recognized in the year ended 31 December 2007 with regards to this first project amounted to Euro 28,000. Capitalized development expenses corresponding to the second project amounted to Euro 1,206,000 at 31 December 2006 and to Euro 3,488,000 at 31 December 2007 following the capitalization of additional development expenses of Euro 623,000 and of Euro 2,573,000 in the quarter and the year ended 31 December 2007, respectively. As certain aspects of this project resulted in the delivery of certain RIP products through 2007, corresponding costs were amortized over the expected useful life of the corresponding technology (i.e. a ten-year period) using the straight-line amortization method: the corresponding amortization charge which was recognized in the quarter and the year ended 31 December 2007 with regards to this second project amounted to Euro 114,000 and Euro 308,000, respectively. Capitalized development expenses corresponding to the third project amounted to Euro 204,000 at 31 December 2006 and to Euro 789,000 at 31 December 2007, following the capitalization of additional development expenses of Euro 163,000 and of Euro 650,000 in the quarter and the year ended 31 December 2007, respectively. As certain aspects of this project resulted in the delivery of certain software products in the second half of 2007, corresponding costs were amortized over the expected useful life of the corresponding technology (i.e. a ten-year period) using the straight-line amortization method: the corresponding amortization charge which was recognized in the quarter and the year ended 31 December 2007 with regards to this development project amounted to Euro 23,000 and Euro 28,000, respectively. (c) Income tax (i) Current income tax The Company is subject to income tax in France and in all jurisdictions where it has subsidiaries (notably in the UK and the US). Significant judgement is required in determining the provision for income taxes, as there are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. (ii) Deferred income tax The Company recognises deferred tax assets as stated in note 2v to the Company’s consolidated financial statements for the year ended 31 December 2006. In evaluating whether it is probable or not that a deferred tax asset recognised in a specific jurisdiction may be utilised against future taxable profits to be recognised in that jurisdiction, the Company uses estimates of future taxable profits over an appropriate period of time from the balance sheet date, based on growth and profit assumptions considered to be appropriate by management. - Deferred tax asset attributable to capital allowances Deferred tax assets are predominantly attributable to capital allowances available to the UK subsidiary as the result of the acquisitions made by the Company in the years ended 31 December 1999 and 2000. Although such allowances may be used without any deadline, they can only be used in a given year up to 25% of the outstanding balance at the beginning of that year.

At 31 December 2006, considering both the recent history of tax profits made by the UK subsidiaries of the Company and the tax profits projected to be made in the coming years, management considered it was appropriate to recognize a deferred tax asset corresponding to the amount of capital allowances the Company projected to use over the next four years: this resulted in the recognition of a deferred tax asset amounting to Euro 4,622,000 at that date, using the enacted UK corporation tax rate as at and for the year ended 31 December 2006 of 30%. At 31 December 2007, the recognition of a deferred tax asset corresponding to the amount of capital allowances the Company projected to use over the four-year period ending 31 December 2011 to offset taxable profit to be made by its UK subsidiaries over such period, using the tax rates that are expected to apply to the period when the deferred tax asset is realized, i.e. 30% until 31 March 2008 and 28% from 1 April 2008, resulted in the recognition of a deferred tax asset amounting to Euro 3,120,000, and a corresponding deferred tax charge amounting to Euro 825,000 and Euro 1,129,000 in the quarter and the year ended 31 December 2007, respectively. Included in above-mentioned deferred tax charges is the effect of the remeasurement of the deferred tax asset arising from such capital allowances pursuant to the enacted change in the corporation tax rate applicable to the UK subsidiary of the Company from 30% to 28%, i.e. a benefit of Euro 38,000 for the quarter ended 31 December 2007 and a charge of Euro 232,000 for the year ended 31 December 2007. - Deferred tax liability arising from the capitalization of developments costs At 31 December 2007, the recognition of a deferred tax liability corresponding to the accumulated amount of development costs capitalized in accordance with applicable provisions of IAS 38 (see note 4b above), using the tax rates that are expected to apply to the period when the deferred tax liability is settled, i.e. 30% until 31 March 2008 and 28% from 1 April 2008, resulted in the recognition of a deferred tax liability of Euro 1,112,000, and a corresponding deferred tax charge of Euro 113,000 and Euro 775,000 in the quarter and the year ended 31 December 2007, respectively. Included in above-mentioned deferred tax charges is the effect of the remeasurement of the deferred tax liability arising from the capitalization of developments costs pursuant to the enacted change in the corporation tax rate applicable to the UK subsidiary of the Company from 30% to 28%, i.e. benefits amounting to Euro 14,000 and Euro 83,000 for the quarter and the year ended 31 December 2007, respectively. Unrecognized deferred tax assets The amount of capital allowances which were available to the UK subsidiaries of the Company at 31 December 2007, but were not projected to be used within the four-year period ending 31 December 2011 and therefore did not result in the recognition of a deferred tax asset at 31 December 2007, amounted to Euro 12,717,000 at such date (Euro 12,486,000 at 31 December 2006). Had a deferred tax asset been recognized with regards to such portion of available capital allowances at 31 December 2007, since these allowances would only be used after 1 April 2008, the applicable tax rate at the time they would be used to offset taxable profit would be 28% (see above): the corresponding, additional deferred tax asset would have amounted to Euro 3,561,000 at 31 December 2007 (Euro 3,746,000 at 31 December 2006 using the tax rate then prevailing of 30%).

NOTE 5: NET FINANCING GAINS (COSTS) In thousands of Euro

Interest income Accretion on present value of carryback tax assets Total interest income Interest expenses on borrowings Interest income on bank overdrafts Total interest expenses Net interest income (expenses) Gains (losses) on transactions Fair value gains (losses) on contracts Total foreign exchange gains (losses) Total net financing gains (costs)

Quarters ended 31 December 2007 2006 Unaudited figures

Years ended 31 December 2007 2006 Audited figures

19 0

17 4

56 0

87 14

19

21

56

101

0 0 0

(18) (3) (21)

0 (6) (6)

(117) (13) (130)

19

0

50

(29)

65 (15) 50

67 (28) 39

1 20 21

146 208 354

69

39

71

325

NOTE 6: INCOME TAX EXPENSE (a) Current income tax expense The Company recorded a current income tax expense amounting to Euro 80,000 and to Euro 129,000 in the quarter and in the year ended 31 December 2007, respectively, compared with an expense of Euro 106,000 and of Euro 148,000 in the quarter and in the year ended 31 December 2006, respectively. (b) Deferred income tax expense The Company recorded a deferred income tax expense amounting to Euro 1,069,000 in the quarter ended 31 December 2007 (an expense of Euro 197,000 in the quarter ended 31 December 2006), resulting in a deferred income tax expense of Euro 1,914,000 in the year ended 31 December 2007 (an expense of Euro 1,533,000 in the year ended 31 December 2006). The significant components of such deferred tax expense are the following: - the expense arising from the capitalization of development expenses as set out in note 4b above (after effect of the corresponding amortization) amounted to Euro 181,000 in the quarter ended 31 December 2007 (an expense of Euro 106,000 in the quarter ended 31 December 2006), and to Euro 775,000 in the year ended 31 December 2007 (an expense of Euro 328,000 in the year ended 31 December 2006); and - as set out in note 4c, the recognition of capital allowances to be used by the UK entity of the Company to offset taxable profit to be made over the next four years resulted in an expense of Euro 825,000 in the quarter ended 31 December 2007 (an expense of Euro 106,000 in the quarter ended 31 December 2006), and an expense of Euro 1,129,000 in the year ended 31 December 2007 (an expense of Euro 1,182,000 in the year ended 31 December 2006).

(c) Reconciliation of the 2007 effective tax expense In thousands of euros

Fourth quarter Unaudited figures

Full year Audited figures

Profit before income tax

1,164

5,315

Income tax expense at a rate of 33.33%

(389)

(1,772)

(802)

(254)

(19)

176

(34)

(150)

52

(149)

43

106

(1,149)

(2,043)

Income tax (expense) benefit attributable to: * Capitalization and utilization of capital allowances (note 4c) * Differences with current statutory tax rates in foreign jurisdictions * Not tax-deductible effect of sharebased compensations plans * Effect of the future change in the UK statutory tax rate (note 4c) * Other differences Total reported income tax expense NOTE 7: EARNINGS PER SHARE

(a) Basic earnings per share Basic earnings per share are calculated by dividing the profit attributable to shareholders for a period by the weighted average number of ordinary shares outstanding during that period. (i) Computation for the quarters ended 31 December Ordinary shares outstanding as at 1 October Effect of the shares issued in the quarter Effect of the shares repurchased in the quarter Weighted average number of ordinary shares outstanding in the quarters ended 31 December (ii) Computation for the years ended 31 December Ordinary shares outstanding as at 1 January Effect of the shares issued in the year Effect of the shares repurchased in the year Weighted average number of ordinary shares outstanding in the years ended 31 December

2007

2006

10,277,531 4,595 0

10,201,779 23,774 (12,525)

10,282,126

10,213,028

2007

2006

10,247,530 26,078 (46,558)

10,157,209 34,684 (6,852)

10,227,050

10,185,041

(b) Diluted earnings per share Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of dilutive potential ordinary shares: share options. Contingently issuable shares (i.e. ordinary shares issuable for little or no cash or other consideration upon the satisfaction of specified conditions in a contingent share agreement) are not included in the calculation of diluted earnings per share until the conditions are satisfied: this was not the case at either 31 December 2007 or 31 December 2006.

The calculation is performed for the share options to determine the number of shares that could have been acquired at fair value (determined as the average market price of the Company’s shares over the period for which the computation is performed) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options. (i) Computation for the quarters ended 31 December Weighted average number of ordinary shares outstanding in the quarters ended 31 December Adjustment for dilutive share options Weighted average number of ordinary shares for diluted EPS computation for the quarters ended 31 December (ii) Computation for the years ended 31 December Weighted average number of ordinary shares outstanding in the years ended 31 December Adjustment for dilutive share options Weighted average number of ordinary shares for diluted EPS computation for the years ended 31 December

2007

2006

10,282,126

10,213,028

4,362

64,999

10,286,488

10,278,027

2007

2006

10,227,050

10,185,041

14,453

68,699

10,241,503

10,253,740

NOTE 8: SHARE CAPITAL AND SHARE PREMIUM (a) Share capital A total of 42,251 share options were exercised in the year ended 31 December 2007. As a result, the total number of outstanding, fully paid, ordinary shares of the Company, each of par value of Euro 0.40, is 10,289,781 as at 31 December 2007. (b) Share premium The share premium amount increased by Euro 120,000 during the year ended 31 December 2007 through the net proceeds of the 42,251 share options exercised during that period (an increase of Euro 392,000 during the year ended 31 December 2006), after deduction of Euro 2,000 for operating expenses incurred in relation with the Company’s share option plans in the year ended 31 December 2007 (a deduction of Euro 11,000 for similar expenses in the year ended 31 December 2006). NOTE 9: REPURCHASE OF OWN SHARES Pursuant to the authority granted to the Board of Directors by the shareholders in their meeting on 20 April 2006, the Company initiated its share repurchase programme in the course of the quarter ended 30 September 2006. A total of 37,670 shares were repurchased by the Company in the year ended 31 December 2006. Another 91,298 shares were repurchased by the Company in the year ended 31 December 2007, for a total of Euro 781,000. In accordance with paragraph 33 of IAS 32, all of these own shares are held as treasury shares, and have been deducted from equity at 31 December 2007 and 2006.

NOTE 10: SEGMENT REPORTING (a) Primary reporting format – by business segment The Company is engaged in only one segment of business. It is therefore not required to provide information in this respect. (b) Secondary reporting format – by geographical area The Company operates in four main geographical areas, even though the Company is managed on a worldwide basis, which are as follows: Continental Europe (including France, which is the home country of the Company), the UK, North America (USA and Canada) and Asia (notably Japan). (i) Geographical allocation of sales The allocation of sales made in these geographical areas during the quarters and the years ended 31 December 2007 and 2006, respectively, is as follows: In thousands of Euro

Quarters ended 31 December 2007 2006 Unaudited figures

Years ended 31 December 2007 2006 Audited figures

Continental Europe United Kingdom North America Asia Other countries

430 129 2,421 484 7

649 243 2,157 1,913 12

2,412 816 10,897 2,221 33

2,408 1,487 8,541 4,542 46

Total sales

3,471

4,974

16,379

17,024

(ii) Geographical allocation of capital expenditures The allocation of capital expenditures made in these geographical areas during the quarters and the years ended 31 December 2007 and 2006, respectively, is as follows: In thousands of Euro

Quarters ended 31 December 2007 2006 Unaudited figures

Years ended 31 December 2007 2006 Audited figures

Continental Europe United Kingdom North America Asia Other countries

0 818 2 7 0

0 889 10 25 0

0 3,473 22 95 0

0 1,962 39 60 0

Total capital expenditures

827

924

3,590

2,061

NOTE 11: RELATED PARTY TRANSACTIONS The Company has a related party relationship with its subsidiaries (see note 12) and with its directors and executive officers. (a) With the Company’s directors The amount of board fees to be allocated among the five directors of the Company as approved by the shareholders in each of 2006 and 2007 is Euro 75,000.

The corresponding expenses recognized as part of the selling, general and administrative expenses in the quarters and the years ended 31 December 2007 as well as 2006 are Euro 19,000 and Euro 75,000, respectively. (b) With the Company’s executive officers (i) Salaries and other short-term benefits The three executive directors received salaries and other short-term benefits (including bonuses and pension scheme contributions, as applicable) from the Company in the quarters and the years ended 31 December 2006 and 2007, as follows: In thousands of Euro

Quarters ended 31 December 2007 2006 Unaudited figures

Years ended 31 December 2007 2006 Audited figures

Salaries Other short-term benefits

83 1

94 46

347 5

381 50

Total

84

140

352

431

(ii) Share-based remuneration Executive officers are entitled to participate in the Company’s share option and share grant programmes. Grants made to the Company’s executive officers in the years ended 31 December 2006 and 2007 were as follows: Quarters ended 31 December 2007 2006 Unaudited figures Number of share options granted Number of shares at no cost granted Share-based compensation expense (in thousands of Euro)

0 0 30

0 22,500 14

Years ended 31 December 2007 2006 Audited figures 0 0 136

0 22,500 64

NOTE 12: SUBSIDIARIES These condensed consolidated financial statements include the accounts of the following companies for the years ended 31 December 2007 and 2006, respectively: Country of incorporation Global Graphics (UK) Limited Global Graphics Software Limited Jaws Systems Limited Global Graphics Software Incorporated Global Graphics Kabushiki Kaisha Global Graphics Software (India) Private Limited

United Kingdom United Kingdom United Kingdom United States Japan India

Ownership interest (in %) 2006 2007 100 100 100 100 100 100

100 100 100 100 100 100

Global Graphics Software (India) Private Limited was incorporated on 28 March 2006 and consolidated from that date.

NOTE 13: SUBSEQUENT EVENTS In January 2008, the Company made redundant 11 employees in order to align its cost and resource structure with its current and future business development and growth plans. In accordance with applicable provisions of IAS 19, Employee benefits (notably paragraphs 133 and 134), because the decision to implement such redundancy programme was taken by the Company’s Board on 16 January 2008, no accrual was recorded in that respect in the Company’s consolidated accounts for the year ended 31 December 2007. The Company expects to record a charge in respect of such redundancy programme of between Euro 0.2 and 0.3 million in the quarter ending 31 March 2008.

GLOBAL GRAPHICS SA AND SUBSIDIARIES ADJUSTED OPERATING PROFIT (EBITA) COMPUTATION In thousands of Euro Unaudited figures Quarters ended 31 December 2007 2006 Reported operating profit

Years ended 31 December 2007 2006

1,095

1,876

5,244

4,348

16 19 100 (786)

17 19 41 (368)

68 76 449 (3,223)

68 76 174 (1,149)

137

14

364

55

Total adjustments to reported operating profit

(514)

(277)

(2,266)

(776)

Adjusted operating profit Adjusted operating profit (in % of sales)

581 16.7%

1,599 32.1%

2,978 18.2%

3,572 21.0%

Add back (deduct): Amortization of intangible assets - recorded in cost of sales - recorded in operating expenses Share-based compensation expenses Capitalization of development expenses as required by IAS 38 (note 4b) Amortization of capitalized development expenses (note 4b)

The Company provides information prepared in accordance with and required by IFRSs, but it believes that evaluating its ongoing results may not be as useful if an investor is limited to reviewing only IFRS financial measures. Accordingly, the Company uses adjusted financial information to evaluate its ongoing operations as well as for internal planning and forecasting purposes. The Company’s management does not itself, nor does it suggest that investors should, consider such adjusted financial measures in isolation from, or as a substitute for, financial information prepared in accordance with IFRSs. The Company presents such adjusted financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company’s results in a manner that focuses on what the Company believes to be its ongoing business operations. The Company’s management believes that the inclusion of adjusted financial measures provides consistency and comparability with past reports of financial information and has historically provided comparability to similar companies in the Company’s industry, many of which present the same or similar adjusted financial measures to investors. When the Company uses such an adjusted financial measure, it provides a reconciliation of the adjusted financial measure to the most closely applicable financial measure required by IFRSs. Investors are encouraged to review the related IFRS financial measures and the reconciliation of these adjusted financial measures to the most directly comparable IFRS financial measures as detailed above.

GLOBAL GRAPHICS SA AND SUBSIDIARIES ADJUSTED PRE-TAX PROFIT COMPUTATION In thousands of Euro, except share data in Euro Unaudited figures Quarters ended 31 December 2007 2006 Reported pre-tax profit

Years ended 31 December 2007 2006

1,164

1,915

5,315

4,673

16 19 100 (786)

17 19 41 (368)

68 76 449 (3,223)

68 76 174 (1,149)

137

14

364

55

0

(4)

0

(14)

Total adjustments to reported pre-tax profit

(514)

(281)

(2,266)

(790)

Adjusted pre-tax profit Adjusted pre-tax profit per share (*)

650 0.06

1,634 0.16

3,049 0.30

3,883 0.38

Add back (deduct): Amortization of intangible assets - recorded in cost of sales - recorded in operating expenses Share-based compensation expenses Capitalization of development expenses as required by IAS 38 (note 4b) Amortization of capitalized development expenses (note 4b) Change in the fair value of tax assets

(*) Adjusted pre-tax profit per share is computed using the weighted average number of ordinary shares outstanding during the respective periods, i.e. 10,282,126 shares and 10,213,028 shares for the quarters ended 31 December 2007 and 2006, respectively, and 10,227,050 shares and 10,185,041 shares for the years ended 31 December 2007 and 2006, respectively. The Company provides information prepared in accordance with and required by IFRSs, but it believes that evaluating its ongoing results may not be as useful if an investor is limited to reviewing only IFRS financial measures. Accordingly, the Company uses adjusted financial information to evaluate its ongoing operations as well as for internal planning and forecasting purposes. The Company’s management does not itself, nor does it suggest that investors should, consider such adjusted financial measures in isolation from, or as a substitute for, financial information prepared in accordance with IFRSs. The Company presents such adjusted financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company’s results in a manner that focuses on what the Company believes to be its ongoing business operations. The Company’s management believes that the inclusion of adjusted financial measures provides consistency and comparability with past reports of financial information and has historically provided comparability to similar companies in the Company’s industry, many of which present the same or similar adjusted financial measures to investors. When the Company uses such an adjusted financial measure, it provides a reconciliation of the adjusted financial measure to the most closely applicable financial measure required by IFRSs. Investors are encouraged to review the related IFRS financial measures and the reconciliation of these adjusted financial measures to the most directly comparable IFRS financial measures as detailed above.

GLOBAL GRAPHICS SA AND SUBSIDIARIES ADJUSTED NET PROFIT (LOSS) COMPUTATION In thousands of Euro, except share data in Euro Unaudited figures Quarters ended 31 December 2007 2006 Reported net profit

Years ended 31 December 2007 2006

15

1,612

3,272

2,992

35 100 (649)

36 41 (354)

144 449 (2,859)

144 174 (1,094)

0 195

(4) 107

0 858

(14) 333

(38) (14)

0 0

232 (83)

0 0

Total adjustments to reported net profit

(371)

(174)

(1,259)

(457)

Adjusted net profit (loss) Adjusted net profit (loss) per share (*)

(356) (0.03)

1,438 0.14

2,013 0.20

2,535 0.25

Add back (deduct): Amortization of intangible assets Share-based compensation expenses Net effect of the capitalization of development expenses (note 4b) Change in the fair value of tax assets Tax effect of abovementioned adjustments Effect of the change in the UK tax rate (note 4c) on tax assets arising from: - the projected use of capital allowances - the capitalization of development costs

(*) Adjusted net profit (loss) per share is computed using the weighted average number of ordinary shares outstanding during the respective periods, i.e. 10,228,126 shares and 10,213,028 shares for the quarters ended 31 December 2007 and 2006, respectively, and 10,227,050 shares and 10,185,041 shares for the years ended 31 December 2007 and 2006, respectively. The Company provides information prepared in accordance with and required by IFRSs, but it believes that evaluating its ongoing results may not be as useful if an investor is limited to reviewing only IFRS financial measures. Accordingly, the Company uses adjusted financial information to evaluate its ongoing operations as well as for internal planning and forecasting purposes. The Company’s management does not itself, nor does it suggest that investors should, consider such adjusted financial measures in isolation from, or as a substitute for, financial information prepared in accordance with IFRSs. The Company presents such adjusted financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company’s results in a manner that focuses on what the Company believes to be its ongoing business operations. The Company’s management believes that the inclusion of adjusted financial measures provides consistency and comparability with past reports of financial information and has historically provided comparability to similar companies in the Company’s industry, many of which present the same or similar adjusted financial measures to investors. When the Company uses such an adjusted financial measure, it provides a reconciliation of the adjusted financial measure to the most closely applicable financial measure required by IFRSs. Investors are encouraged to review the related IFRS financial measures and the reconciliation of these adjusted financial measures to the most directly comparable IFRS financial measures as detailed above.

GLOBAL GRAPHICS SA AND SUBSIDIARIES CONDENSED MANAGEMENT REPORT OF THE COMPANY’S BOARD OF DIRECTORS FOR THE QUARTER AND THE YEAR ENDED 31 DECEMBER 2007 Translation of the French language original Pursuant to the transposition under article L.451-1-2 of the French Monetary and Financial Code of the EU Directive 2004/109/CE of the European Parliament and of the Council of 15 December 2004 (the ‘Transparency Directive’), we present to you the condensed management report of the Company’s Board of Directors for the quarter and the year ended 31 December 2007. NOTE 1: ORGANIZATION OF THE GLOBAL GRAPHICS GROUP OF COMPANIES (THE ‘COMPANY’) (a) Structure of the Company at 31 December 2007 Please refer to note 12 to the Company’s condensed consolidated financial statements for the quarter and the year ended 31 December 2007 for further details. (b) Changes in the Company’s structure in the year ended 31 December 2007 No change occurred in the Company’s structure in either the quarter or the year ended 31 December 2007. (c) Changes in the Company’s structure since 1 January 2008 No change has occurred in the Company’s structure since 1 January 2008. NOTE 2: MANAGEMENT DISCUSSION OF KEY FIGURES The Company prepares its consolidated accounts in accordance with the International Financial Reporting Standards (IFRSs) and related interpretations issued by the International Accounting Standards Board, and as adopted by the European Union. (a) Quarter ended 31 December 2007 (i) Consolidated sales Sales were Euro 3,471,000 in the quarter ended 31 December 2007, compared with Euro 4,974,000 in the same quarter of 2006, or a decrease of 30.2% with the same period of the previous year, at current exchange rates. Approximately 86.4% of the Company’s sales made in the quarter ended 31 December 2007 (90.2% of sales made in the quarter ended 31 December 2006) were denominated in US dollars, which substantially decreased versus the Euro (which is the Company’s reporting currency) as the average exchange Euro/US dollar rate was 1.445 in the quarter ended 31 December 2007 while it was 1.299 in the quarter ended 31 December 2006, or a sequential decrease of 11.2%. At constant exchange rates, sales made in the quarter ended 31 December 2007 would amount to approximately Euro 3,832,000, showing a decrease of 23.0% over the sales figure actually reported for the quarter ended 31 December 2006. Sales made in the traditional graphic arts segment were Euro 1,029,000 in the quarter ended 31 December 2007, showing a decrease of 32.4% at current exchange rates and of 24.2% at constant exchange rates over sales made in the same segment in the same period of 2006. Sales made in the digital print and electronic document markets were Euro 2,442,000 in the quarter ended 31 December 2007, showing a decrease of 29.3% at current exchange rates and of 22.4% at constant exchange rates over sales made in the same market segments in the same period of 2006.

(ii) Consolidated performance Operating profit The Company reported an operating profit of Euro 1,095,000 in the quarter ended 31 December 2007 (31.5% of the quarter’s sales) compared with a profit of Euro 1,876,000 (37.7% of that quarter’s sales) in the quarter ended 31 December 2006, or an unfavorable variance of Euro 781,000 (or 41.6%), which can be analyzed as follows: - consolidated sales decreased by Euro 1,503,000 (see above); - cost of goods sold was Euro 106,000 in the quarter ended 31 December 2007 (3.0% of the quarter’s sales) compared with Euro 137,000 in the quarter ended 31 December 2006 (2.8% of that quarter’s sales), or a favorable variance of Euro 31,000; - the intangible asset amortization expense included in cost of sales was Euro 16,000 in the quarter ended 31 December 2007 (0.5% of the quarter’s sales) compared with Euro 17,000 in the quarter ended 31 December 2006 (0.3% of that quarter’s sales), or a favorable variance of Euro 1,000; - selling, general and administrative expenses were Euro 1,099,000 in the quarter ended 31 December 2007 (31.7% of the quarter’s sales), showing a decrease of Euro 194,000 (or 15.0%) over the Euro 1,293,000 figure reported for the quarter ended 31 December 2006 (26.0% of that quarter’s sales), notably as the result of the cost control initiatives implemented by the Company; - research and development expenses were Euro 1,036,000 in the quarter ended 31 December 2007 (29.8% of the quarter’s sales) showing a sequential decrease of Euro 555,000 (or 34.9%) over the Euro 1,591,000 figure reported for the quarter ended 31 December 2006 (32.0% of that quarter’s sales) despite a continuing build-up in development resources throughout 2007, notably in India (see note 6b below), because of the net effect of the capitalization of development expenses totaling Euro 649,000 in the quarter ended 31 December 2007 (compared with a net effect of Euro 354,000 in the quarter ended 31 December 2006) relating to three development projects for which all criteria for such capitalization were met; - share option and share grant compensation expenses were Euro 100,000 in the quarter ended 31 December 2007 (2.9% of the quarter’s sales) showing an increase of Euro 59,000 over the Euro 41,000 figure reported in the quarter ended 31 December 2006 (0.8% of that quarter’s sales); - intangible asset amortization expenses included in operating expenses were Euro 19,000 in both the quarter ended 31 December 2007 (0.5% of the quarter’s sales) and the quarter ended 31 December 2006 (0.4% of the quarter’s sales). Profit before income tax Profit before income tax was Euro 1,164,000 in the quarter ended 31 December 2007 (33.5% of the quarter’s sales), compared with a profit before income tax of Euro 1,915,000 in the quarter ended 31 December 2006 (38.5% of that quarter’s sales, or an unfavorable variance of Euro 751,000 (or 39.2%), which results from the combination of: (i) the decrease of the operating result as discussed above for Euro 781,000; (ii) the increase in interest income (net of interest expenses) of Euro 19,000 over the same period of 2006; and (iii) the favorable effect of foreign currency exchange differences, which were a net gain of Euro 50,000 in the quarter ended 31 December 2007, compared with a net gain of Euro 39,000 in the quarter ended 31 December 2006, of a favorable variance of Euro 11,000. Net profit Net profit was Euro 15,000 in the quarter ended 31 December 2007 (or Euro 0.00 per share), after giving effect to a tax charge of Euro 1,149,000, compared with a net profit of Euro 1,612,000 in the quarter ended 31 December 2006 (or Euro 0.16 per share), after giving effect to a tax charge of Euro 303,000.

(b) Year ended 31 December 2007 (i) Consolidated sales Sales were Euro 16,379,000 in the year ended 31 December 2007, compared with Euro 17,024,000 in the year ended 31 December 2006, or a decrease of 3.8% with the figure reported for that year, at current exchange rates. Approximately 85.7% of the Company’s sales in the year ended 31 December 2007 (82.4% in the year ended 31 December 2006) were denominated in US dollars, which substantially decreased versus the Euro as the average exchange Euro / US dollar rate was 1.365 in the year ended 31 December 2007 while it was 1.259 in the year ended 31 December 2006, or a sequential decrease of 8.4%. At constant exchange rates, sales made in the year ended 31 December 2007 would amount to approximately Euro 17,732,000, showing an increase of 4.2% over the figure actually reported for the year ended 31 December 2006. Sales made in the traditional graphic arts segment in the year ended 31 December 2007 were Euro 5,347,000, and decreased by 27.3% at current exchange rates and by 21.0% at constant exchange rates over sales made in the same segment in the year ended 31 December 2006. Sales made in the digital print and electronic document markets were Euro 11,032,000 in the year ended 31 December 2007, and increased by 14.1% at current exchange rates and by 23.3% at constant exchange rates over sales made in the same markets in the year ended 31 Decembers 2006. Sales in these new segments accounted for 67.4% of the Company’s total sales in the year ended 31 December 2007 (56.8% in the year ended 31 December 2006). (ii) Consolidated performance Operating profit The Company reported an operating profit of Euro 5,244,000 in the year ended 31 December 2007 (32.0% of 2007 sales), compared with a profit of Euro 4,348,000 in the year ended 31 December 2006 (25.5% of 2006 sales), or a favorable variance of Euro 896,000 (or 20.6%), which can be analyzed as follows: - consolidated sales decreased by Euro 645,000 year-on-year (see above); - cost of goods sold was Euro 460,000 in the year ended 31 December 2007 (2.8% of 2007 sales), showing a decrease of Euro 20,000 over the Euro 480,000 figure reported in the year ended 31 December 2006 (2.8% of 2006 sales); - the intangible asset amortization expense included in cost of sales was Euro 68,000 in both the years ended 31 December 2007 and 2006 (0.4% of both years’ sales); - selling, general and administrative expenses were Euro 5,305,000 in the year ended 31 December 2007 (32.4% of 2007 sales), showing a decrease of Euro 480,000 (or 8.3%) over the Euro 5,785,000 figure reported for the year ended 31 December 2006 (34.0% of 2006 sales), as a result of the cost control initiatives implemented by the Company throughout 2007; - research and development expenses were Euro 4,777,000 in the year ended 31 December 2007 (29.2% of 2007 sales) showing a decrease of Euro 1,316,000 (or 21.6%) over the Euro 6,093,000 figure reported for the year ended 31 December 2006 (35.8% of 2006 sales) mostly because of the net effect of the capitalization of development expenses totaling Euro 2,859,000 in the year ended 31 December 2007 (compared with Euro 1,094,000 in the year ended 31 December 2006) relating to three development projects for which all criteria for such capitalization were met;

- share option and share grant compensation expenses were Euro 449,000 in the year ended 31 December 2007 (2.7% of 2007 sales) showing an increase of Euro 275,000 over the Euro 174,000 figure reported in the year ended 31 December 2006 (1.0% of 2006 sales); - intangible asset amortization expenses included in operating expenses were Euro 76,000 in both the year ended 31 December 2007 (0.5% of 2007 sales) and the year ended 31 December 2006 (0.4% of 2006 sales). Profit before income taxes Profit before income taxes was Euro 5,315,000 in the year ended 31 December 2007 (32.5% of 2007 sales), compared with a profit before income taxes of Euro 4,673,000 in the year ended 31 December 2006 (27.4% of 2006 sales), or a favorable variance of Euro 642,000 (or 13.7%), which results from the combination of: (i) the increase of the operating result as discussed above, (ii) the increase in the amount of interest income (net of interest expenses) reported in 2007 of Euro 79,000 over that reported for the year ended 31 December 2006, and (iii) the effect of foreign currency exchange differences, which were a net gain of Euro 21,000 in the year ended 31 December 2007, compared with a net gain of Euro 354,000 in the year ended 31 December 2006, or an unfavorable variance of Euro 333,000. Net profit Net profit was Euro 3,272,000 in the year ended 31 December 2007 (or Euro 0.32 per share), after giving effect to a tax charge of Euro 2,043,000, compared with a net profit of Euro 2,992,000 in the year ended 31 December 2006 (or Euro 0.29 per share), after giving effect to a tax charge of Euro 1,681,000, or an increase of 9.4%. NOTE 3: MANAGEMENT’S COMMENTS ON THE COMPANY’S PERFORMANCE (a) Salient features for the year ended 31 December 2007 (i) Operational highlights In 2007, sales in all segments were affected by the continued impact of a weak US dollar (the Company’s primary sales currency) and by the beginning of an economic slowdown in Q4 2007, notably in the US. As a result, sales amounted to Euro 16.4 million in 2007, or 3.7% below the Euro 17.0 million figure provided by management in October 2007 as the bottom end of the projected range for 2007 sales. As anticipated, sales made in the traditional graphic arts segment were slow and adversely affected by industry consolidation, resulting in a decrease of 21.0% at constant exchange rates over sales made in that segment in 2006. Sales in the digital printing and electronic document segments increased 23.3% at constant exchange rates over sales made in these segments in 2006, despite the slower than expected adoption of XPS in printing devices and application software. However, in Q4 2007, the Company signed 3 contracts for its electronic document technology, including 2 which were XPS-related and saw the launch of a new line of printing devices with its embedded RIP technology. Operating expenses were Euro 12.9 million in 2007, well below the Euro 13.3 to 13.5 million range provided by management in October 2007. As a result, adjusted operating profit (or EBITA) was Euro 3.0 million in 2007, or 6.9% below the Euro 3.2 million figure provided by management in October 2007 as the bottom end of the projected range of EBITA for 2007.

Adjusted pre-tax profit was Euro 0.30 per share, 3.2% below the Euro 0.31 per share figure provided by management in October 2007 as the bottom end of the projected range of adjusted pre-tax EPS for 2007. (ii) Financial highlights Liquidity Cash flow provided by the Company’s operations was Euro 5,361,000 in the year ended 31 December 2007 (or 32.7% of 2007 sales), compared with Euro 5,622,000 in the year ended 31 December 2006 (or 33.0% of 2006 sales). Such cash flow combined with cash balances available at 1 January 2007 (which amounted to a total of Euro 3,310,000) allowed the Company to: * repay all of the bank overdraft facilities which were outstanding at 1 January 2007, for a total of Euro 234,000; * fund the Company’s capital expenditures on property, plant and equipment amounting to a total of Euro 367,000 for the year ended 31 December 2007, and those resulting from the capitalization of development expenses (see note 2b above) which totaled Euro 3,223,000 in the year ended 31 December 2007; * allow the Company to repurchase some of its own shares for a total of Euro 781,000 (see below); and * close the period with a net cash position of Euro 4,112,000, compared with a net cash position of Euro 3,076,000 at 1 January 2007, or a favorable variance of Euro 1,036,000 over the year ended 31 December 2007. Exercise of share options A total of 42,251 share options were exercised in the year ended 31 December 2007, resulting in total exercise gross proceeds of Euro 139,000. Share repurchases A total of 91,298 of its own shares were repurchased by the Company in the year ended 31 December 2007, for a total cost of Euro 781,000. (b) Prospects for the current financial year (i) Operational prospects The Company expects the factors which affected 2007 to continue, including consolidation of the traditional graphic arts market, a weak US dollar, an economic slowdown in the US, and the continued slow adoption of the use of the XPS technology. However, management remains confident about the long-term prospects of the Company because of its expertise and competitive advantage in printing technology, its commitment to continue to develop new and unique solutions for market and customer needs, and because the Company is built on strong financial foundations. (ii) Financial prospects Because of the uncertainty of the outcome of on-going negotiations with certain customers about potentially significant, multi-year contracts which could allow the Company to recognize revenue from the second half of 2008 should they be signed in the coming quarter, as and was already the case in 2007, management considers it is more appropriate to postpone the release of any guidance on the Company’s projected sales and earnings for the current year until late April when the Company expects to release its results for the quarter ending 31 March 2008.

NOTE 4: SIGNIFICANT OPERATIONAL AND FINANCIAL RISK FACTORS (a) Significant operational risk factors (i) Dependence on the graphic arts and digital print industries The Company derives substantially all of its revenues from software products and related services provided to the graphic arts and digital print industries. Accordingly, the Company’s future success significantly depends upon the continued demand for its products within such industries. The Company believes that an important factor in its growth has been the substantial change in the graphics arts and digital print industries, as evidenced by continuing consolidation and technological innovation (notably the introduction of new Page Description Languages, or PDLs, such as XPS, Microsoft’s new, fixed-document format). If this environment of change were to slow, the Company could experience reduced demand for its products. (ii) Failure to manage a successful transition to new products and markets Any delays or failures in developing new products, including upgrades of current products, and anticipating changing customer requirements or market conditions, may have a harmful impact on the Company’s sales and operating results. The Company has historically derived a significant portion of its revenues from the sale of new and enhanced software products (such as Raster Imaging Processors or RIPs). Additionally, the Company plans to release numerous new product offerings and upgrade versions of its current software products, including the transition of its RIP product to new variants (e.g. host driver and embedded variants) and new operating systems releases, pursuant to the introduction of XPS, and in connection with the transition to new markets, such as those for its Electronic Document conversion Library (EDL) technology. The Company’s inability to extend its core technologies into new applications and new platforms and to anticipate or respond to technological changes and customer or market requirements could affect market acceptance of its products and could cause a decline in the Company’s sales and results. (iii) Inadequate protection of its proprietary technology and intellectual property rights The Company’s success is heavily dependent upon its proprietary technology. To protect its proprietary rights, the Company relies on a combination of patent, copyright, trade secret and trademark laws, as well as the early implementation and enforcement of non-disclosure and other contractual restrictions. As part of its confidentiality procedures, the Company enters into written non-disclosure agreements with its employees, prospective customers, OEMs and strategic partners and takes affirmative steps to limit access to, and distribution of, its software, intellectual property and other proprietary information. Despite these efforts, in the event such agreements are not timely made, complied with or enforced, the Company may be unable to effectively protect its proprietary rights and the enforcement of its proprietary rights may be costprohibitive. Unauthorized parties may attempt to copy or otherwise obtain, distribute, or use the Company’s products or technology. Monitoring unauthorized use of the Company’s software products is difficult. Management cannot be certain that steps taken to prevent unauthorized use of the Company’s proprietary technology, particularly in countries where the laws may not protect proprietary rights as fully as in the EU or the United States, will be effective.

The Company’s source code also is protected as a trade secret. However, from time to time, the Company licenses its source code to OEMs and partners, which subjects it to the risk of unauthorized use or misappropriation despite the contractual terms restricting disclosure, distribution, copying and use. In addition, it may be possible for unauthorized parties to obtain, distribute, copy or use the Company’s proprietary information or to reverse engineer its trade secrets. The Company holds patents, and has patent applications pending, in the United States and in the EU. There may be no assurance that patents held by the Company will not be challenged, that patents will issue from the pending applications or that any claims allowed from existing or pending patents will be of sufficient scope or strength to provide efficient protection for the Company’s intellectual property rights. (iv) Costs of enforcing, acquiring and defending intellectual property rights In connection with the enforcement of its own intellectual property rights, the acquisition of third party intellectual property rights or disputes relating to the validity or alleged infringement of third-party rights, including patent rights, the Company has been and may be in the future subject to claims, negotiations or protracted litigations. Intellectual property disputes and litigation are typically very costly and can be disruptive to the Company’s business operations by diverting the attention and energies of management and key technical personnel. Although the Company has successfully defended or resolved past litigation and disputes, it may not prevail in any future litigation and disputes. Third-party intellectual property rights could subject the Company to significant expenditures, require the Company to enter into royalty and licensing agreements on unfavorable terms, prevent the Company from licensing certain of its products, cause disruption to the markets where the Company operates or require the Company to satisfy indemnification commitments with its customers including contractual provisions under various license arrangements any one of which could harm the Company’s business. (v) Fluctuating operating results and factors affecting operating results As a result of a variety of factors discussed above, and also because of the effect on its revenue of new, multiple-element contracts which were recently signed, the Company’s quarterly sales and operating results for a particular period are difficult to predict. The Company’s sales may grow at a slower rate than experienced in previous periods, and, in some periods, may decline. Additionally, the Company periodically provides guidance on its future sales and results. Such guidance reflects a number of assumptions, including assumptions about product pricing and demand, seasonal trends, competitive factors, and adoption of new products or releases of existing products. If one or more of these assumptions proves incorrect, the Company’s actual results may vary materially from those anticipated, estimated or projected. (vi) Recruitment and retention of key personnel An important part of the Company’s future success depends on the continued service and availability of the Company’s senior management, including its Chief Executive Officer and other members of the executive team. These individuals have acquired specialized knowledge and skills with respect to the Company. The loss of any of these individuals could harm the Company’s business. The Company’s business is also dependent on its ability to attract, retain, and motivate talented, highly skilled personnel, notably in the development and technical support areas. Such personnel are in high demand and competition for their talents is intense. Should the Company be unable to continue to successfully attract and retain key personnel, its business may be harmed.

(b) Significant financial risk factors The Company’s activities expose it to a variety of financial risks, notably foreign exchange risk, credit risk, liquidity risk and cash flow interest-rate risk. (i) Foreign exchange risk The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar and the British pound. Foreign exchange risk arises from future commercial transactions, recognized assets (notably trade receivables) and liabilities, as well as net investments in foreign operations. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities (i.e. which are denominated in a currency that is not the entity’s functional currency), certain entities in the Company use option currency contracts transacted with high-credit-quality financial institutions after review and approval by the Company’s Chief Financial Officer. Since the beginning of the current year, the Company entered into several option contracts to mitigate its foreign currency exposure without payment of an upfront premium. These contracts give the Company the right, but not the obligation, to convert at the respective maturity dates of these contracts, an amount of US dollars ($) into Euros at a maximum rate (the strike price) assuming that, during the life of the corresponding contract, the exchange rate between the $ and the Euro was always higher than a minimum rate (the trigger rate). Should this trigger rate occur, the Company would be obliged to convert an amount of $ at the strike price at the maturity dates of these contracts. At 31 December 2007, outstanding contracts are as follows: Contract expiry date 28 February 12 March 11 April 11 June 12 June 6 August 12 September 12 November

2008 2008 2008 2008 2008 2008 2008 2008

Contract value in $ 500,000 250,000 500,000 250,000 500,000 500,000 750,000 500,000

Strike price in $ for 1 Euro 1.3900 1.5000 1.4950 1.5000 1.4950 1.5000 1.5000 1.5000

Trigger price in $ for 1 Euro 1.2660 1.3995 1.3725 1.4000 1.3595 1.3900 1.3895 1.4000

In addition, the Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Company’s foreign operations in the UK and in the US is managed primarily through borrowings denominated in the relevant foreign currencies, where appropriate. (ii) Credit risk Financial instruments that potentially subject the Company to credit risk consist primarily of trade receivables. As it markets and sells its products and services to a broad base of customers including OEM partners, distributors, and system integrators, the Company has no significant concentration of credit risk though relatively few customers accounted for a substantial portion of the Company’s sales within the last few years as a result of the dominance of a limited number of companies in the Company’s markets.

In 2007, the ten major customers represented approximately 63.3% of the Company’s total sales (52.9% in 2006); approximately 48.5% of the 2007 sales were made with the five largest customers of the Company (35.9% in 2006) and approximately 24.6% with the major customer alone (10.8% in 2006). (iii) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities, where appropriate. Due to the dynamic nature of the underlying business, the Company aims to maintain flexibility by keeping committed credit lines available. However, at 31 December 2007, considering the Company’s net cash position of Euro 4,112,000 at such date (compared with a net cash position of Euro 3,076,000 at 31 December 2006) and the net cash flow provided by its operations in the year ended 31 December 2007 (amounting to Euro 5,361,000), the Company did not apply for any such lines of credit. (iv) Cash-flow interest-rate risk As the Company had no significant interest-bearing assets and liabilities at either 31 December 2007 or 2006, the Company’s income and operating cash flows for the quarter and the year ended 31 December 2007 were substantially independent of changes in market interest rates. Please refer to note 5 to the Company’s consolidated financial statements for the quarter and the year ended 31 December 2007 for further details on the Company’s net financing costs for such periods. NOTE 5: MAIN RELATED PARTY TRANSACTIONS Please refer to note 11 to the Company’s consolidated financial statements for the quarter and the year ended 31 December 2007 for further details. NOTE 6: INFORMATION ON THE COMPANY’S PERSONEL (a) Breakdown by geographical area of employment 31 December 2007

31 December 2006

77 27 18 3 2

84 17 18 4 2

127

125

31 December 2007

31 December 2006

83 25 19

80 24 21

127

125

United Kingdom India United States of America Japan Continental Europe Total (b) Breakdown by nature of employment

Research and development Sales and support General & administrative Total

(c) Redundancy programme Please refer to note 13 to the Company’s condensed consolidated financial statements for the quarter and the year ended 31 December 2007 for further details. NOTE 7: VOTING RIGHTS AND SIGNIFICANT SHAREHOLDERS (a) Voting rights at 31 December 2007 Number of shares to which a double voting right is attached Number of shares to which a single voting right is attached Total number of voting rights attached to the Company’s ordinary shares which were outstanding at 31 December 2007

29,019 10,260,762 10,318,800

(b) Significant shareholders At 31 December 2007, Stichting Andlinger & Co. Euro-Foundation held 2,882,981 shares of the Company (or 28.01% of the total number of shares of the Company outstanding at that date), to which is attached an equivalent number of voting rights, representing 27.93% of the total number of voting rights attached to the Company’s ordinary shares outstanding at 31 December 2007. At 31 December 2007, no other shareholder held in excess of either 5% of the total number of shares forming the share capital of the Company, or 5% of the total number of voting rights attached to such shares. NOTE 8: INFORMATION REGARDING GLOBAL GRAPHICS SA (a) Overview Global Graphics SA is the French holding company of the Global Graphics group of companies and plays a pivotal role in managing the Company’s business and growth. (d) Statutory key figures for the year ended 31 December 2007 Because Global Graphics SA has only one employee and all of its sales result from the recharge of corporate management fees to the Company’s operating entities which are based in the UK and in the US, its statutory results for the quarter and the year ended 31 December 2007 are not provided since they were not considered as meaningful in the context of the reporting of the Company’s consolidated results for the quarter and the year ended 31 December 2007.

GLOBAL GRAPHICS SA AND SUBSIDIARIES STATEMENT MADE BY THE PERSON TAKING RESPONSIBILITY FOR THE CONDENSED MANAGEMENT REPORT FOR THE YEAR ENDED 31 DECEMBER 2007 Translation of the French language original I hereby confirm that, to the best of my knowledge, the condensed consolidated accounts included in the Company’s condensed management report for the year ended 31 December 2007 have been prepared in accordance with International Financial Reporting Standards (IFRSs) and related interpretations issued by the International Accounting Standards Board, as adopted by the European Union, and give a true and fair view of the assets, liabilities, financial position, and profit or loss of Global Graphics SA and its subsidiaries as at and for the year ended 31 December 2007. I also hereby confirm that the attached condensed management report includes a fair review of the information referred to in article 222-6 of the Règlement général de l’Autorité des marchés financiers, and notably of the material events that occurred in the year ended 31 December 2007 and their impact on the condensed consolidated accounts for that year, of the main risks and uncertainties faced by the Company during 2007, as well as of the main transactions with related parties which occurred in that year. Made in Brussels (Belgium) on 12 February 2008,

James Freidah Chief Executive Officer