STORE ELECTRONIC SYSTEMS (SES)

• Major increase of turnover (+ 28.9 %), due to a significant acceleration of activity during the second quarter (+ 43.5 %)
• 337 stores installed (+ 29 %) in 13 countries, with 53 stores networks
• First installations of Auchan’s roll out
• Commercial success increases, especially on international and non-food markets

Turnover

During the second quarter 2008, Store Electronic Systems has delivered 200 new stores (against 144 in Q2 2007, i.e. + 39 %). The Company generated sales of 14.996 K€, a 43.5 % increase vs. second quarter 2007 and a 36.5 % growth over Q1 2008, exhibiting constant sales growth increase since April.

Export sales show major growth (+ 57.1 %) and increase on French market picked up (+ 36.3 %, vs. + 2.1 % for Q1), due to Government initiatives regarding purchasing power and increased competition between retail brands. This context, combined with higher inflation rates, significantly raises the number of price up dates in stores, reinforcing once again, if needed, the pertinence of an Electronic Shelf Labelling system installation.

Over the first half of 2008, SES has installed 337 stores against 261 during the same period in 2007, (+ 29 %). Growth is particularly strong on export markets with 143 stores installed vs. 80* over the first semester 2007 (+ 79 %).
In France, the installation of the first Auchan’s stores (roll out agreement for 115 hypermarkets) has begun end of June, bringing very small contribution to Q2 and H1 turnover.

* The press release for 1st semester 2007 dated August 13, 2007 displayed a total number of 97 stores delivered on export market, but 17 of them, installed on French over-seas territories were included.

First semester results

First semester results will be released August 28, 2008. A significant increase in operating profit is expected, with an operating margin well above what have been anticipated.

Sales outlook

Between January 1st and August 8, 2008, SES has recorded 499 new orders against 334 over the same period last year, i.e. a 49 % growth. Overall, on August 8, 2008, SES has installed or recorded orders in 27 countries over 3 continents.

Store Electronic Systems won key competitive bids on international markets, and signed contracts in Central America, in Italy and Spain. Concerning non-food activity, SES has also signed an exclusive retainer agreement with a DIY network in Spain and has recorded its first orders from petrol station operators (Petroshop).

With those success, combined with significant roll-outs won during Q1 (Auchan, Eroski), the Company confirms its growing rate objective for 2008, similar to the brilliant 2007 rate.

About Store Electronic Systems
Store Electronic Systems is one of the world leaders in Electronic Shelf Labelling Systems (EEG) for large-scale food and non-food retailers.
The global market for this reliable, high value-added product offers strong potential, in its deployment phase at the international level.

Store Electronic Systems is listed on the Compartment B of EuronextTM Paris .
Mnémo: SESL

ISIN codes: FR0010282822 - Reuters: SESL.PA - Bloomberg: SESL.FP

www.ses-esl.com
www.store-electronic-systems.com