STORE ELECTRONIC

4th quarter 2006

Substantial increase in turnover: +25% compared with 3rd quarter 2006 (€7,846k against €6,264k).

Year 2006:

• Turnover to 31/12/06: €28,341k (+4%)
• 337 store installations (293 in 2005): +15%
• Operating margin and net profit expected to increase strongly.

Turnover:

Turnover for 2006 amounted to €28,341k, an increase of 4% on last year. 73% of the turnover represents new installations and 27% recurrent activities.
In France, turnover amounted to €24,131k, an increase of 25,6 % on last year. 267 stores were installed during the financial year, against 175 in 2005, equivalent to an increase by 52,6 %.

For export sales, the turnover amounted to €4,210k, down 47 % on last year, a direct result of the installation in 2005 of all Carrefour Belgium stores, which led to a sales growth of €5,258k. Carrefour aside, export turnover for 2006 was up by 54,7 %. Systems were installed at 70 stores in 10 countries, including, notably, the installation of first stores in 6 new countries. Furthermore, in 2006 the group opened an office in Asia, a strategic region of the world for the group expansion in future years.

Operating margin and net profit:

The operating margin and net profit in 2006 are expected to show a very high increase. A meeting of the SFAF ( Société Française des Analystes Financiers ) will take place on March 7th at Palais Brongniart in Paris when there will be a detailed presentation of the profit & loss account and balance sheets.

Outlook: a very promising start to 2007.

At the start of the year, the group secured two new major contracts, on top of the 3 new contracts already signed in September and October 2006.

• The first contract in the Americas (outside USA), and further to the installation of a pilot store in 2005, concerns a framework agreement for installing the system in 200 superstores over 4 years, with a firm order for installation of the first 50 superstores in 2007. First installations will commence at the beginning of April 2007.
• The second contract concerns the Provencia Group (a Carrefour franchisee), which operates 40 superstores and supermarkets under the Carrefour and Champion trade names. 6 stores have already been installed with our system, or are being installed.
• The third is related to the implementation of superstores of the western region of LECLERC group, which represents more than 350,000 labels to be delivered during 2007. First installation will start at the end of March.

These new installations, alongside the continuation of installations in progress (in particular Intermarché, Leclerc, Système U), enabled SES to report a record level of orders since the beginning of the year. As at February 9th, the number of new store orders since January 1st amounted to 101 (57 for export sales and 44 in France).

On being asked to comment on these outstanding results for the start of year, Philippe Catteau, Group Chairman, said:

“The beginning of 2007 has been very promising; this is the result of our sales efforts in 2006, and demonstrates the genuine and strong development of our market. These 3 new contracts are very significant:

The first (export) contract can represent a potential turnover of more than US$30 million, if the superstores are fully covered, and goes to prove the relevance of our international growth should this not already be evident.

The second contract, with Provencia Group, confirms the choice of Carrefour France franchisee groups to install our system; Provencia Group follows the Hyparlo Group, (since acquired by Carrefour France), and the Altis group, in choosing the SES solution. This decision comes after the installation and comparison by Provencia Group of two different technologies – infra-red and SES low radio frequency – and demonstrates the superiority of our system in terms of the reliability, simplicity of use and operating cost-effectiveness of the solution itself.

The third, within LECLERC group, confirms the real enthusiasm of independent group (Intermarché, Leclerc, Spar, Système U…) for SES' solution. Our group's market share in this significant segment of the food retail industry (50% of the stores) is now close to 90%.

About Store Electronic Systems

Store Electronic Systems is one of the world leader in electronic shelf labelling (ESL) systems for food and non-food retail sectors.
This reliable, high added-value product benefits from a world-wide offering very significant growth potential, currently being rolled out at an international level.
Store Electronic Systems is listed on the Eurolist market – Compartment B – on the EuronextTM stock exchange in Paris
Mnemonic: SESL
ISIN code: FR0010282822 – Reuters: SESL.PA – Bloomberg: SESL.FP