A NOVO

The Board of Directors of the ANOVO Group has accepted the proposal of the Management submitted on February 14, 2008, to close down its activity in the United States if the ramp up from new contracts could not ensure a quick return to profitability.

Indeed, after several years of stabilisation, this activity is making significant losses during the first half of 2007/2008, due to the withdrawal of one of its principal local clients. Today, considering the lack of encouraging prospects in the US, the Group prefers to concentrate its efforts on reducing its debt while growing its activity in Europe.

Therefore, the Board Members of ANOVO Americas, based in Fort Worth, Texas, have decided on March 26th 2008 that it was in the best interest of ANOVO Americas, its creditors and other interested parties to file a petition seeking relief under the provisions of chapter 7 of the United States Bankruptcy Code, title 11 of the United States Code. This company, formerly named Natcom, was acquired in 2002.

Impact on the Group’s cash is estimated at less than 700K€*. This decision will not harm ANOVO’s activities in Europe which is growing significantly.

Estimated impact on H1 2007/2008 consolidated figures will be the following*:

The amount of 7 M€ takes into account the cash impact of 0.7 M€ necessary for this operation and asset write-offs (including goodwill and current accounts between ANOVO S.A. and its North American subsidiary).

In consequence, North America will be out of the perimeter of the Group’s consolidated results as of 31 March 2008.

* unaudited; audited figures will be published on May 15, together with those of H1 2007/2008
** 5 M€ including spare parts to be coherent with 2006/2007

About A NOVO: With revenue of €317 million and 5,200 employees, A NOVO is the leading pan-European provider of maintenance and customisation services for the digital technologies used by major Telecommunications and Multimedia companies to deliver Triple Play (Voice/Data/Image) solutions. A NOVO runs more than 20 Centres of Excellence, and handles a high product turnover with an acknowledged level of quality.

ANOVO
François Lefebvre, CFO
Tel: +33 (0)1 58 17 00 81
flefebvre@a-novo.com