ARCHOS

ARCHOS, a technology leader in the field of Portable Media Players, announcessales revenue of 124.3 M€ for the year 2006, up 21%, from 103.1 M€,compared to the same period in 2005. A two month delay of the Generation 4 productline launch impacted Q4 sales results. Excluding Echostar OEM sales revenue,ARCHOS reports 27% growth over 2005.

Year ending 2006 financial results per region are as follows:

• Europe continues its progression and posts 23% growth, representing 69%of total sales.
• North America achieves a 59% increase in sales and expects continued growthin 2007 as a result of recently signed retailers such as Wal-Mart , Targetand Office Depot.
• In an extremely fragmented Asian market, ARCHOS keeps parity with leadingChinese suppliers. The creation of a new legal entity in China on January 1,2007 will enhance logistics and help ARCHOS keep a competitive edge. ARCHOSalso has reinforced its network of distributors in support of this new structure.With this new legal entity, ARCHOS is no longer required to pay the 20% customstax imposed on foreign companies, even those with a manufacturing plant inChina .

In 2006, ARCHOS consolidated many initiatives and departments worldwide,resulting in fundamental changes that will impact future development of the company:

Production Process:

• Optimisation of subcontractor processes and improvement of quality.
• Enhanced final product assembly at the Canon logistics center in Brittany,France .
• Diversification of suppliers and optimisation of acquisition costs.

Distribution Channels:

• Streng the ned distribution channels and recruited new retail chains:
• 1,000 new points of sale in Europe and more than 5,000 in the US .
• New subsidiaries in Sou the rn Europe .

Strategic Partnerships:

• New partnerships with Alcatel, EMI, IMS Inflight, Kewego, and Vodeo.

Technology Leadership:

• A new product range with high added value was launched in the last quarterof 2006. The ARCHOS 604-WiFi is the industry's first WiFi-enabled touch-screenPortable Media Player and has been received favourably by the internationalpress, retailers and consumers. This support is confirmed by high sell-into the channels and impressive sell-through at the retail outlets.
• In this growing market, ARCHOS fur the r demonstrated its technology leadership.The ARCHOS 604-WiFi allows consumers to browse the Internet, play mediafiles from the ir home computer to the device or to a TV, and easily navigatethrough digital content on a touch-screen display.

2007 Outlook

ARCHOS will offer consumers a unique range of WiFi Portable Media Playersthat create the bridge between the home PC, Internet and TV, and answer consumers'needs for mobility and continuous access to on-line content.

ARCHOS will fur the r streng the n distribution channels by winning new contractswith leading consumer electronics retail chains in the US , Europe and Asia, the reby raising worldwide brand awareness and sales opportunities.

The company's initiatives to reinforce strategic marketing through severalindustry partnerships with key companies in the telecommunications, TV and digitalcontent markets worldwide is expected to lead to continued growth in 2007.

About ARCHOS

ARCHOS is the technology leader in the field of portable audio and video devices.In 2000, its Jukebox 6000 opened the mass market of hard drive-based MP3 players.In 2002, ARCHOS introduced the first portable video player, Jukebox Multimedia,the forerunner of an entirely new product category. Its Pocket AV range revolutionizedleisure time for consumers wishing to enjoy television, music, videos or photosanywhere, anytime. Established in 1988, ARCHOS has offices in Europe , the UnitedStates and Asia . ARCHOS is quoted on Compartment C of Euronext Paris, ISINCode FR0000182479. Fur the r information is available on www.archos.com