STORE ELECTRONIC SYSTEMS (SES)

• Turnover : 39 099 K€, i.e +38%
• EBIT margin growing substantially, at 34.8% of turnover vs. 25.7% in 2006
• Profit after tax : 9 582 K€, up 100%
• Key competitive bids won early 2008

* As a result of a change in structure, the Company may elect French GAP for its communication; it has chosen to do so in order to reduce workload and costs.

Turnover

As of December 31 2007, net sales amounted to 39 099 K€, up 38 % compared to 2006 (28 342 K€). Recurring revenues (restocking, maintenance…) account for 28 % of turnover, against 26.8% the previous year.

In France, at 28 585 K€ revenues are up 18.5 % vs.2006; 329 new stores have been installed against 267 last year (+ 23%). Export sales amount to 10 514 K€, a growth of 150 %.

In total, 492 new stores have been installed (+46% vs. 2006) in 62 different networks across 18 countries, allowing for the further consolidation of Store Electronic Systems’ leadership.

Major increase in profitability

Due to the optimization of its purchasing costs, combined with a tight control of SG&A, the Company reported an EBIT margin of 34.8 %; this is significantly above the long term objectives given at the IPO in February 2006.

Profit after tax amounts to 9 582 K€, more than double the 2006 figure (4 776K€).

Balance sheet

As of December 31 2007, the Company has no financial debt and a cash position of 11 M€ at year end (against 6.1 M€ in 2006) in spite of the acquisition of new office space for 1.8 M€.

The evolution of Working Capital from Operations is in line with that of revenues; it amounts to 44.3% of net sales.

2008 Outlook

Company objectives for FY 2008 are to replicate 2007 achievements; SES anticipates a revenue growth in line with that of last year and an EBIT margin of at least 30%.

Early 2008, the Company is reporting key competitive wins:

• Gain of the EROSKI Group’s competitive bid for the equipment of 84 hypermarkets over a 3 year period ; firm order for the first 15 stores in 2008
• LOI from a major chain, for the equipment of 115 stores
• Final phase of negotiations for the order of a second tier of 50 hypermarkets for a retail chain in South America.

These exciting news combined to the exclusive retainer of SES by Système U (in July 2007), should allow the company to exhibit another year of substantial growth in 2008.

Q1 turnover for 2008 will be published on May 15, 2008.

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 C of EuronextTM Paris .
Mnémo: SESL

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

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