Zhang Xiaogang, originally from China’s southern province of Guangdong, is a computer engineer who became a human rights and democracy campaigner after 1989. He now works as a taxi driver in Australia to give him more time for activism.

He was in China as part of the “Gongmin Walk 2010″, an international project to promote human rights and civil society in China, said Yang Jianli, a fellow exile and president of Initiatives for China, which is organising the walk.

Zhang had hoped to reach Beijing to commemorate the 21st anniversary of the June 4 military crackdown on pro-democracy protests centre on Tiananmen Square and petition the government on behalf of Chinese citizens forcibly evicted from their homes.

But he has been unreachable since Wednesday morning Beijing time. He had videotaped a one-man protest at the site of the Shanghai World Expo before his disappearance.

Yang wore a T-shirt saying “Support the victims of the Shanghai Expo” in English and Chinese — referring to ordinary citizens forced to leave their homes to make way for the multi-billion dollar event, and a short clip showed him walking around the site, apparently ignored by other visitors.

“I think the video caused the problem. I would guess there are a lot of video cameras around the site, I figured they would have caught him on the cameras and followed him back to his hotel room,” said Yang, who lives in exile in Boston and has doctorate degrees from Harvard and Berkeley universities.

NEW NAME

The Australian Embassy in Beijing declined immediate comment.

Zhang, who is in his mid-50s, was blocked on recent attempts to return to China, and changed his name and got a new passport to secure his visa for this trip, said Yang, who was himself released in 2007 after serving five years in a Chinese prison on charges of sneaking into the country and spying for Taiwan.

Tanks rolled into Tiananmen Square before dawn on June 4, 1989 to crush weeks of student and worker protests. Public memories have faded but the ruling Communist Party, which has never released a death toll, still fears any commemoration could challenge its continued hold on power.

Last year China blocked the Twitter microblogging service ahead of the anniversary, and it has remained shut ever since.

A handful of people are still serving prison sentences for their activities in 1989, others are in prison for continued activism after their initial release, and hundreds more protest leaders are in exile.

The country’s most prominent dissident, Liu Xiaobo, was jailed last December for 11 years for campaigning for political freedoms, after he helped organise the “Charter 08″ petition that called for sweeping political reforms.

Before that Liu was prominent in the 1989 protests.

Zhang said in a letter written before his departure that, as an overseas signatory of Charter 08, he was also returning to show solidarity with Liu. (Editing by Benjamin Kang Lim and Alex Richardson)

2Q10 Malaysia Mobile Operator Forecast, 2009 – 2014: Malaysia will have 42.5
Million Mobile Subscribers in 2014 with DiGi Taking Market Share of 26.7%

Mobile Operator Forecast on Malaysia provides over 50 operational and financial
metrics for the Malaysian wireless market and is one of the best forecasts in
the industry. We provide five-year forecasts at the operator level going out to
2014. We also provide quarterly historical and forecast data starting in 1Q2003
and ending in 4Q2011. Operators covered for Malaysia include: Maxis Mobile
Services Sdn. Bhd., Celcom (Malaysia) Berhad, and DiGi Telecommunications Sdn.
Bhd. Our Mobile Operator Forecasts are updated quarterly and are available for
one-time delivery or through regular updates.

Global Mobile Operator Forecast covers 50 operational metrics of 200+ mobile
operators in 50+ countries, making up 80% of the worlds population. Our
forecasts are based on our proprietary, country-specific forecasting models.
These models deploy multiple regression analysis and cross-impact matrices that
estimate relationships between subscriber data, technology use and deployment
data, overall economic and demographic changes expected in a particular country;
and relate these to company operational and financial metrics.

Executive Summary:

Double-digit subscriber growth continues in Malaysia’s mobile operator space

* +11.5% industry average subscriber growth in 4Q.2009
* Subscriber growth in the Malaysian wireless market remains strong, but it is
gradually slowing down. The industry average subscriber growth (YoY) in 4Q.2009
was 11.5%, down from 15.7% in 4Q.2008.
* At the operator level, Celcom enjoyed the fastest subscriber growth in the
country in 4Q.2009. Celcom’s subscriber growth (YoY) in 4Q.2009 was 15.8%, up
from 21.6% in 4Q.2008.
* Subscriber growth rates (YoY) at Maxis and DiGi were 9.4% and 9.3%
respectively in 4Q.2009.

ARPU levels continue to decline in Malaysia

* -6.0% operator-wide average ARPU growth in 4Q.2009
* The industry average monthly ARPU declined by -6.0% (YoY) to reach MYR 54.56
in 4Q.2009.
* Monthly ARPU at Maxis was MYR 55 in 4Q.2009, down -6.8% from MYR 58 in
4Q.2008.
* ARPU growth rates (YoY) at Celcom and DiGi were also negative at -3.8% and
-7.5% respectively in 4Q.2009.

Minutes of Use per Subscriber increase at Maxis and DiGi

* +1.5% industry average MOU/Sub growth in 4Q.2009
* The industry MOU/Sub was 203 minutes per month in 4Q.2009, up +1.5% from 200
minutes in 4Q.2008.
* DiGi leads Malaysias operators with its average MOU/Sub of 229 minutes per
month, and MOU/Sub growth (YoY) of 4.1% in 4Q.2009. MOU/Sub at Maxis and Celcom
were 181 and 209 minutes and per month respectively in 4Q.2009.

Positive EBITDA growth continued across operators in the latest quarter

* +3.6% industry average EBITDA growth in 4Q.2009
* The industry average EBITDA growth declined from 15.0% in 4Q.2008 to 3.6% in
4Q.2009.
* At the operator level, Celcom enjoyed the highest EBITDA growth at 14.3% in
4Q.2009, up from 8.9% in 4Q.2008.
* On the other hand, the EBITDA growth rate at Maxis decreased to -1.1% in
4Q.2009, down from 38.2% in 4Q.2008.

So what is IEMRs Forecast?

Total wireless subscribers in Malaysia to reach 42.5 million in 2014

* Given the latest quarter numbers, we forecast that total subscribers in
Malaysia will increase from 30.1 million in 2009 to 42.5 million in 2014.
* Our forecasting model predicts that the number of subscribers at Maxis,
Celcom, and DiGi will reach approximately 16.4 million, 14.7 million and 11.3
million respectively by the end of 2014.

Maxis’s market share will be declining over the next several years

* Our model forecasts that DiGi will see its market share increase from 25.6% in
2009 to 26.7% in 2014.
* On the other hand, Maxis will see its market share decline from 40.8% in 2009
to 38.7% in 2014.

Declining trend in ARPUs will continue over the next five years in Malaysia’s
mobile operator space

* Our model predicts that all operators will see their ARPUs decrease over the
next five years.
* We forecast that Celcom’s monthly ARPU will decline from MYR 54.50 in 2009 to
approximately MYR 49 in 2014.
* We expect that DiGi’s monthly ARPU will decline from MYR 55 in 2009 to about
MYR 50 in 2014.

Maxis will continue to enjoy higher EBITDA margins than Celcom and DiGi over the
next five years

* We expect that the industry average EBITDA margin (calculated as
EBITDA/service revenue) will remain in the range of 46% – 47% over the forecast
period, 2009 – 2014.
* We think that Maxis will continue to have higher EBITDA margin than Celcom and
DiGi over the next five years. According to our model, EBITDA margins at Maxis,
Celcom and DiGi will be approximately 52%, 42%, and 44% respectively in 2014.

Companies Mentioned:

* Maxis Mobile Services Sdn. Bhd.
* Celcom (Malaysia) Berhad
* DiGi Telecommunications Sdn. Bhd.

For more information visit

http://www.researchandmarkets.com/research/775b61/2q10_malaysia_mobi

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2010

In an interview on his ongoing trip to the Caribbean island state, Yang spoke highly of the friendship between the two countries, which he said has been deeply rooted in the hearts of the two peoples.

Noting that Cuba was the first Latin American country to establish diplomatic ties with China, the top Chinese diplomat said that the China-Cuba relations, characterized by friendly cooperation of mutual benefits, have stood various tests during the past five decades despite the constant changes of the volatile international situation.

Meanwhile, recent years have seen the two countries gain mounting momentum in the development of their relations and the two peoples show increasing readiness for more exchange and cooperation, Yang added.

China and Cuba are “good comrades, good friends and good partners,” said the Chinese foreign minister.

This year the two countries are marking the 50th anniversary of their diplomatic relations, which marked a new beginning of their bilateral ties, Yang said, adding that both sides should seize this opportunity to promote bilateral exchange and cooperation in various fields.

The foundation for cooperation is very strong in fields of culture, education and health, said the Chinese official, while expressing satisfaction over the smooth operation of the Confucius Institute at Havana University and a jointly-financed ophthalmic hospital.

He also called for more frequent exchanges between the young people of the two countries.

Meanwhile, Yang said the two countries have plenty opportunities for cooperation in trade and investment, especially in energy, mechanical and electronical equipment, and mineral products.

At the invitation of his Cuban counterpart Bruno Rodriguez, Yang arrived in Cuba on Friday for a three-day official visit, his first as China’s foreign minister.

The trip, Yang said, is aimed at discussing with Rodriguez ways to further enhance bilateral ties and cooperation in international and regional affairs.

The planned asset sale is designed to fill budget holes that Russia is to battle for the next few years.

“We will sell significant stakes in state companies on the market. We plan to keep controlling stakes,” Finance Minister Alexei Kudrin told a press briefing ahead of a government meeting on Thursday, which will debate key budget parameters and privatisation plans.

“(Assets) will be valued publicly, in line with market prices and tenders will be open,” he said. “We are fully ruling out a situation when somebody sells something to someone at an artificially low price.”

He said the government wanted to earn around $10 billion next year from asset sales but did not name the companies that would be auctioned off. The government will meet on Thursday to approve draft budgets for 2011-2013 and asset sales.

If approved, the sale would become Russia’s most ambitious since President Boris Yeltsin’s era, when well-connected tycoons snapped up some of the biggest oil and metals firms at low prices.

Investors have applauded the plan to sell minority stakes in major state firms in the next three years but have said they are keen to see how transparent the process will be and whether foreigners will be allowed to bid.

The plan could help the Kremlin plug budget holes ahead of the 2012 presidential election, which will require the authorities to maintain high social spending to guarantee good approval ratings.

Sources told Reuters over the weekend the government wants to sell minority stakes in firms such as Russia’s biggest oil producer Rosneft (ROSN.MM), lender VTB (VTBR.MM) and oil pipeline monopoly Transneft (TRNF_p.MM). [ID:nLDE66P0S0]

The plan could offer the government an alternative to higher taxation in its battle to reduce budget deficits.

On Tuesday, Kudrin said Russia was unlikely to balance its budget deficit until 2015 and on Wednesday Prime Minister Vladimir Putin said Russia may not be able to reduce the deficit below 5 percent — or $80 billion — this year. [ID:nLDE66R1YA]

The plan ensures Russia will keep control of the firms in a clear signal the Kremlin is not moving away from the resource nationalism it has developed over the past decade of high commodity prices.

The sales plan would undergo a final review as part of budget debates on Sept 7, and then filed to parliament.

Speaking of taxes Kudrin said the government had approved a decision to increase mineral extraction taxes on gas producers by 61 percent from next year.

For a factbox on the proposed asset sales, please click on [ID:nLDE66P1DU]

(Reporting by Gleb Bryanski, writing by Dmitry Zhdannikov, Editing by Lidia Kelly, Ron Askew)

“As the smartphone industry expands at this lightning pace, it is essential for HTC to grow its management capabilities from within while also adding outside expertise,” said Peter Chou, CEO of HTC Corporation. “Today’s announcement is not just a signal of our current growth and progress, but of our vision for bringing unique smartphones to people all over the world.”

Ron Louks, Chief Strategy Officer

As HTC’s newly created chief strategy officer, Ron Louks will be responsible for driving new strategic initiatives, technology incubation and will work closely with HTC’s engineering and operation departments. Prior to joining HTC, Louks was the chief technology officer at Sony Ericsson.

Kouji Kodera, Chief Product Officer

As HTC’s newly created chief product officer, Kouji Kodera will be responsible for HTC’s global product portfolio planning and management. As a seasoned veteran of the mobile industry, Kodera has a strong track record of building device portfolio strategies. Prior to joining HTC, he worked for Sony Ericsson as its head of products.

David Chen, Chief Engineering Officer

Previously vice president of product development, David Chen has been promoted to chief engineering officer, David Chen will continue to drive HTC’s product development and engineering. As one of HTC’s first employees in 1997, Chen has played a key role in HTC’s success. Under his leadership HTC has successfully created many of the world’s first and most innovative smartphones.

With this announcement, Horace Luke, HTC’s chief innovation officer and John Wang, HTC’s chief marketing officer will work closely with Kodera and Chen to strengthen HTC’s overall product offerings around the world.

Jason Mackenzie, President, HTC North America and Latin America

Previously vice president of HTC North America, Jason Mackenzie has been promoted to president of HTC North America and Latin America. As president, Mackenzie will continue to drive HTC’s strategy and market growth in North America and Latin America where he has contributed to HTC’s strong performance. As one of HTC’s founding North American members in 2005, Mackenzie has led HTC’s strong growth in North America.

Florian Seiche, President, HTC Europe, Middle East and Africa

Previously vice president of HTC Europe, Middle East and Africa (EMEA), Florian Seiche has been promoted to president of HTC EMEA. As the founder of HTC’s EMEA operations in 2005, Seiche has grown HTC’s business and brand to be one of the top smartphone makers in EMEA.

HTC also announced that Jason Juang, a senior executive vice president at HTC, has left the company to pursue other opportunities.

About HTC

HTC Corporation (HTC) is one of the fastest growing companies in the mobile phone industry. By putting people at the center of everything it does, HTC creates innovative smartphones that better serve the lives and needs of individuals. The company is listed on the Taiwan Stock Exchange under ticker 2498. For more information about HTC, please visit www.htc.com.

The board of Sanofi met in Paris on Wednesday and authorized management to make a formal offer of up to $70 per share for Genzyme, sources said.

Sanofi has bank commitments of funding that would allow it to raise that bid if needed, one source said. A second source cautioned that no formal proposal had been made yet and plans could still change.

Genzyme has a market capitalization of about $18 billion. At $70 per share, Sanofi would be offering a premium of roughly 30 percent over what the price of Genzyme’s stock was before news of takeover interest emerged.

The Wall Street Journal, citing people close to Genzyme, suggested that about $75 a share could be sufficient to win the support of Genzyme’s board.

Sanofi, which is scheduled to report second-quarter earnings on Thursday, declined to comment. Genzyme could not be immediately reached for comment.

Shares of Genzyme gained 5 percent to $71.20 in extended trading on Wednesday after news of the board meeting.

Analysts see Sanofi in greater need of a major acquisition than some of its rivals as it braces for generic competition for some of its key products.

Last week, Sanofi lowered its view for 2010 earnings per share after U.S. regulators approved a generic form of the Lovenox blood thinner, its No. 2 product last year.

Genzyme’s biggest-selling drug is Cerezyme, a treatment for Gaucher disease, a rare genetic disorder. Promising drugs in late stage development include a treatment for multiple sclerosis.

Orphan drugs — those that treat small numbers of patients but command high prices — are much less amenable to generic competition than pills and are therefore attractive acquisition candidates.

BEAR HUG LETTER EXPECTED

Sanofi’s proposal was expected to come in the form of a publicly disclosed “bear hug” letter that would lay out proposed takeover terms and try to pressure Genzyme to open negotiations, the first source said.

Genzyme failed to respond to Sanofi’s informal overture, sources previously told Reuters. Genzyme, which is trying to sell three non-core businesses, is not looking to sell the company, sources previously said.

Reports that Sanofi was making a run at Genzyme surfaced on Friday. The news has sent the U.S. company’s shares up about 30 percent since then as investors figured the company would garner a hefty premium for its portfolio of expensive treatments for rare genetic disorders and a pipeline of drugs in development.

Analysts see Genzyme fetching anywhere from $60 to $85 a share, depending on their view of the value of the company’s experimental drugs, the risks associated with its recovery from a manufacturing crisis and the entry of other bidders.

Some company watchers, however, focus on a narrower price range and say Genzyme shareholders may be willing to accept a price of $70 to $80 per share, particularly newer investors who were drawn to the company when it was targeted by activist investor Carl Icahn.

Sanofi’s approach comes on the heels of a turbulent two years for Genzyme and its chief executive, Henri Termeer, who is expected to step down within the next year or two.

Earlier this year, Termeer fought off a threatened proxy fight by reaching settlements with investors Carl Icahn, who now has two representatives on the company’s board, and Ralph Whitworth of Relational Investors LLC, who also sits on the board.

The Wall Street Journal said Britain’s Glaxo (GSK.L) had also recently made “a very casual approach” to Genzyme, but industry insiders and analysts said that Glaxo Chief Executive Andrew Witty, with a reputation for caution on M&A, was unlikely to chase Genzyme.

(Reporting by Jessica Hall; Editing by Gary Hill, Phil Berlowitz, Gary Hill)

Europe’s largest defence contractor on Thursday posted underlying earnings before interest, taxes and amortisation of 1.11 billion pounds ($1.73 billion) on sales 9 percent higher at 10.64 billion pounds for the six months to the end of June.

The company, which on Wednesday signed a 500 million pounds deal to supply India with 57 Hawk jets, increased the interim dividend by 9 percent to 7 pence per share but said it “anticipates a challenging trading environment” ahead.

BAE wants to grow its customer support and services business to offset expected cuts in UK defence procurement as Britain moves to cut a massive budget deficit.

Shares in BAE, which have fallen 10 percent in the last three months on concerns about potential cuts to European defence budgets, closed at 317 pence on Wednesday, valuing the company at around 10.80 billion pounds.

Despite the looming cuts, BAE, which derives around a fifth of its sales from Britain, said it saw unprecedented levels of interest from Middle Eastern and Asian governments at last week’s Farnborough airshow. [ID:nLDE66K206]

(Reporting by Rhys Jones; Editing by Matt Scuffham)

($1=.6402 Pound)

Following this transaction, shareholdings in DNO International ASA controlled by the
Chairman totals 27 214 921 shares, representing 3,0 % of total shares in the company.

DNO International ASA
29 July 2010

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian
Securities Trading Act)

The company, which runs coach services and rail franchises in the east of England, made a pretax profit of 75.7 million pounds ($118.2 million) in the six months to June 30. Its operating margin rose by 3.8 percentage points to 9 percent.

“Despite challenging economic conditions, greater operational focus is having a positive impact and we will continue to progressively drive improvement in performance and cut cost,” said Chief Executive Dean Finch.

National Express, which also operates yellow school buses in North America and a fleet of coaches and buses in Spain, said it expected trading to remain resilient in the next six months.

“We have secured growth opportunities, particularly in North America and Spain, in which we will selectively invest in the second half of the year,” said Finch.

The company, which raised 360 million pounds through a rights issue last November, said it expected to recommence dividend payments at the year-end, depending on its trading performance.

Shares in National Express closed on Wednesday at 242.9 pence, valuing the business at 1.25 billion pounds.

(Reporting by Matt Scuffham; Editing by Victoria Bryan)

($1=.6402 Pound)

The move is part of the central bank’s unwinding of financial-crisis induced measures intended to ease liquidity pressures. Turkey’s forex reserve requirements stood at 11 percent in December 2008.

(Reporting by Alexandra Hudson)

Net profit rose to 335 million euros ($436 million), beating forecasts for 326.8 million in a Reuters poll.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 6.6 percent to 1.177 billion euros, also beating forecasts for 1.169 billion.

Traffic on Abertis motorways fell 0.7 percent in the first half from a year ago, while it telecoms division posted a 19 percent increase in operating profit.

Abertis’ shareholders are currently immersed in a 25 billion euro leveraged buyout of the firm, with news on whether the financing for the deal has been sealed expected in the next few days. ($1=.7684 Euro) (Reporting by Judy MacInnes; editing by Jon Loades-Carter)

Sony, the world’s second-largest camera maker after Canon Inc (7751.T) and the No. 3 maker of flatscreen TVs after Samsung Electronics (005930.KS) and LG Electronics (066570.KS) made more than 25 percent of its sales in Europe in the year to March 2010.

But Sony saw big improvements in sales of LCD TVs, PCs and Playstation 3 game consoles and game software.

For the year to March 2011, the electronics and entertainment giant lifted its operating profit outlook by 12.5 percent to 180 billion yen ($2.1 billion), compared with a consensus estimate of 152.6 billion in a poll of 22 analysts by Thomson Reuters I/B/E/S.

The company reported April-June operating profit of 67 billion yen versus a consensus forecast of a 13.1 billion yen loss in a poll of four analysts and a loss of 25.7 billion yen a year earlier.

On Wednesday, LG missed estimates with a 90 percent fall in quarterly profit, hit by falling margins in its TV business and a loss in its mobile phone division.

Sony’s mobile phone joint venture with Ericsson (ERICb.ST), Sony Ericsson, posted a second consecutive quarterly profit earlier in the month, recovering from a dismal 2009 on robust demand for smartphones.

Shares of Sony rose 0.1 percent to 2,611 yen on Thursday ahead of the announcement.

(Reporting by Isabel Reynolds; Editing by Anshuman Daga)

((isabel.reynolds@thomsonreuters.com; +813-6441-1883; Reuters Messaging isabel.reynolds.reuters.com@reuters.net))

((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

($1=87.47 Yen) Keywords: SONY/

(C) Reuters 2010. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nTOE66R02W

“The risk is that it comes in below forecast and people start questioning the strength of the recovery,” a trader said.

On Wednesday, a Federal Reserve report showed lacklustre growth and U.S. durable goods orders unexpectedly fell.

“It feels like we might have seen the lows of the week. I think the market is looking for signs of (risk appetite) calming down,” the trader said.

At 0605 GMT, the Bund future FGBLc1 was 8 ticks up on Thursday’s settlement close at 127.89, although slightly below the official close after a rally in late trading.

The 10-year German bond yield DE10YT=TWEB was 2.742 percent, down around 1 basis point while the two-year Schatz yield DE2YT=TWEB was flat at 0.852 percent.

In supply, benchmark peripheral sovereign Italy will come to market with auctions of conventional and floating-rate bonds worth up to 9.5 billion euros.

Although recent warmer sentiment towards the euro zone’s higher-yielding countries has seen peripheral debt sales draw good demand, a trader said there was likely to be some attempt to cheapen the Italian paper further ahead of the auction. (Reporting by William James)

The second quarter presentation can be downloaded at www.newsweb.no or
www.pgs.com

FOR DETAILS, CONTACT:

Tore Langballe, SVP Corporate
Communications
Phone: +47 67 51 43 75
Mobile: +47 90 77 78 41

Bard Stenberg, Investor Relations Manager
Phone: +47 67 51 43 16

Mobile: +47 99 24 52 35

US Investor Services
Phone: +1 281 509 8712

This information is
subject of the disclosure requirements acc. to Section 5- 12 vphl
(Norwegian Securities Trading Act)

[HUG#1434696]

Q2 2010
Presentation: http://hugin.info/115/R/1434696/380258.pdf

This
announcement is distributed by Thomson Reuters on behalf of

Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and

other applicable laws; and

(ii) they are solely responsible for the content, accuracy and

originality of the information contained therein.

Source: Petroleum
Geo-Services ASA via Thomson Reuters ONE

Copyright 2010, Market Wire, All rights reserved.

To participate and ask questions during the conference call, dial the local country telephone number and the confirmation code 9904628. The toll-free numbers are 888-663-2241 in the United States and 0-808-101-1402 in the United Kingdom. Other international callers should dial 913-312-0416 (tolls apply).

To listen only to the live audio web cast access Endeavour’s home page at http://www.endeavourcorp.com. A replay will be available beginning at 12:00 p.m. Central Daylight Time on August 5 through 12:00 p.m. on August 12 by dialing toll free 888-203-1112 (U.S.) or 719-457-0820 (international), confirmation code 9904628.

Endeavour International Corporation is an international oil and gas exploration and production company focused on the acquisition, exploration and development of energy reserves in the North Sea and United States. For more information, visit http://www.endeavourcorp.com.

SOURCE Endeavour International Corporation

The joint venture extends Zynga’s reach to a wider global audience and marks the
company’s first foray into the rapidly growing internet and mobile market in
Japan. Based in Tokyo, Zynga Japan will tap into Japan’s rich history of gaming
and leverage Softbank’s cutting edge mobile and Web technology to produce the
best social games in the market.

“Zynga is a leader in social games and I am delighted to partner with them to
introduce their social games to Japan,” said Masayoshi Son, chairman and CEO of
Softbank. “We share the same vision as Zynga in social games and look forward to
working together to create a social game powerhouse.”

“We’re excited to partner with Softbank to bring Zynga’s social games to Japan
and gain insights from the Japanese market,” said Mark Pincus, CEO and Founder
of Zynga. “As one of the most innovative technology companies in the world,
Softbank is bringing the mobile internet to consumers making the social web more
accessible to people everywhere.”

About Zynga

Zynga`s games include FarmVille, Treasure Isle, Zynga Poker, Mafia Wars,
YoVille, Café World, FishVille, PetVille and FrontierVille. Zynga games are
available on Facebook, MySpace and the iPhone. Through Zynga.org, Zynga players
have raised over $3 million for world social causes. Zynga is headquartered in
Potrero Hill in San Francisco. For more information, visit www.Zynga.com or
www.Zynga.org.

About Softbank

Softbank is a leading technology company connecting consumers through its
broadband infrastructure, fixed-line telecommunications, and mobile
communications services. Softbank has invested in overseas companies with high
potential to provide next generation services using the internet, including Oak
Pacific Interactive (which operates China’s largest SNS site) and Ustream, Inc.
(which is the operator of the Ustream.TV website), a broadcast platform offering
live video distribution service via the Internet (video streaming service). By
leveraging this investment in Zynga and through its other efforts, Softbank.
continuously aims to generate synergies among various content and services
within its group. For more information, visit http://www.softbank.co.jp/en/.

Zynga
Lisa Chan, 415-706-1834
lchan@zynga.com
or
Softbank
pr@softbank.co.jp

Copyright Business Wire 2010

Total revenues for the quarter were €12.2 million, compared to €11.5 million in
the fourth quarter last year. On a normalized basis (i.e. excluding Microsoft
license revenues in the prior year), revenues were up 13% from the comparable
quarter last year, with strong license revenue growth year-on-year of 25%.
Operating income was €1.1 million in the fourth quarter, while net income
reached €1.2 million.

For the fiscal year 2010, InfoVista achieved normalized revenue growth of 5%, to
€43 million, and a net income margin of 6%, in line with its objectives for the
year.

Commenting on the Company`s performance, Philippe Ozanian, Chief Executive
Officer, said: “The fast adoption of our new solutions, Vista360, Mobile Pack,
APM (Application Performance Management), and our partnership with Cisco
generated a remarkable fourth quarter license revenue increase of 25% compared
to last year. Twelve consecutive quarters of positive operating margins, a
revamped portfolio of solutions, and fruitful partnerships leave me very
confident that InfoVista is in better shape than ever to take advantage of its
leadership position. Our next fiscal year objectives will seek to accelerate our
recent accomplishments so we look forward to discussing these with the financial
community on September 9th.”

Financial Highlights

Revenues by Region

In thousands Q4 FY10 Q4 FY09 % Change FY 2010 FY2009 % Change FY 2009 % Change
Normalized
EMEA €6,835 €5,882 16% €24,219 €24,027 1% €24,027 1%
Americas 3,943 4,431 -11% 12,427 16,164 -23% 11,973 4%
Asia-Pacific 1,389 1,222 14% 6,354 4,993 27% 4,993 27%
Total €12,167 €11,535 5% €43,000 €45,184 -5% €40,993 5%

* In the Americas, fourth quarter revenues were up 7% on a normalized basis
compared to last year. Recently released products led to a large win with a
US-based mobile wholesale customer, while Cisco PNOC business provided positive
traction.
* EMEA revenues grew by 16% in the fourth quarter. Emerging markets represented
about half of EMEA license revenues, with a large number of repeat deals from
follow-on phases with service providers in Serbia, South Africa and Saudi
Arabia.
* Revenues in Asia-Pacific, up 14%, posted their fourth consecutive quarter of
double-digit growth. New products that address mobile network service providers
lifted license revenues.
* In the fourth quarter, InfoVista derived 40% of total revenues from its
indirect sales channel. The service provider market generated 77% of total
revenues for the quarter.

Operating Expenses

In thousands Q4 2010 Q4 2009 % change FY 2010 FY 2009 % change
Sales & Marketing €4,285 €3,835 12% €15,064 €15,560 -3%
Research & Development 2,616 2,344 12% 9,495 9,723 -2%
General & Administrative 1,410 1,383 2% 5,677 5,717 -1%
Total €8,311 €7,562 10% €30,236 €31,000 -2%

* Gross margin in the fourth quarter was at 78%, compared to 79% for same period
last year.
* Sales & marketing costs represented 35% of total revenues in the fourth
quarter, up 12% from the comparable quarter last year. This increase is a direct
result of additional spending linked to revenue growth for the past quarter.
* Research & development costs represented 21% of revenues in the fourth
quarter, up as compared to the same period last year. Excluding R&D tax credits
in France, the fourth quarter R&D costs were unchanged year on year.
* General & administrative costs stood at €1.4 million in the fourth quarter or
12% of total revenues for the quarter. G&A spending was held flat with continued
cost control.
* As at June 30, 2010, InfoVista had 231 employees.

Income taxes

* InfoVista recorded a net €0.1 million income tax benefit during the fourth
quarter, which included a deferred tax benefit of €0.4 million and an income tax
expense of €0.3 million. According to IFRS accounting rules, InfoVista has
determined that a portion of its more than €10 million deferred tax assets
should be recorded for a €0.4 million benefit in the fourth quarter, as a result
of past trends in positive net result performance as well as the positive
outlook for fiscal year 2011.

Balance Sheet

* Days Sales Outstanding (DSO) stood at 98 days for the fourth quarter, as
compared to 65 days in the comparable quarter last year. This increase in DSO
resulted from exceptionally strong cash collections in the fourth quarter of the
previous fiscal year.
* As at June 30, 2010, the Company`s cash, cash equivalent and short-term
deposits amounted to €25.8 million, as compared to €28.6 million at June 30,
2009 and €23.1 million at March 31, 2010. For the quarter, the €2.7 million cash
generation came primarily from operating activities. For the fiscal year, the
cash consumption of €2.8 million came primarily from its stock buyback program.
* As at June 30, 2010, InfoVista had a total of 18,015,404 and 16,552,447 shares
issued and outstanding, respectively.

Conference call to discuss 2010-11 objectives September 9, 2010

Please go to the investor relation webpage at www.infovista.com to view a video
presentation of InfoVista`s 2010 financial result.

InfoVista will host an investor conference call on September 9, 2010 at 9.00
a.m. (EST) / 2:00 p.m. (UK) / 3:00 p.m. (Continental Europe). The call will be
available by dialing France +33 (0)1 70 99 42 72 North America +1 212 444 0481
and +44 (0)20 7138 0824 in the UK. In each case followed by access code 6958646
A replay will be available shortly after the end of the call at the following
numbers: France: +33 (0)1 74 20 28 00 UK: +44 (0)20 7111 1244 North America: +1
347 366 9565 – all with access code 6958646#.

About InfoVista

InfoVista enables managed service providers, mobile operators, broadband
operators and enterprise IT organizations to ensure the availability and quality
of the services they deliver at the lowest possible cost, empowering these
organizations to successfully make the transformation from infrastructure
providers to service providers. Our customers rely on InfoVista`s proven
solutions for service and infrastructure performance management to successfully
launch new and high performance services, foresee potential service issues
before they impact end users, reduce customer churn, and invest appropriately.
Sample customers include Bell Canada, Bharti, BNP Paribas, Cable & Wireless,
Citigroup, Deutsche Telekom, JP Morgan Chase, KPN International, SFR, T-Mobile,
Telefonica, and Telstra. InfoVista is traded on the Euronext Paris
(FR0004031649) and can be found online at www.infovista.com.

Except for historical information contained herein, the matters discussed in
this news release are “forward looking statements.” These statements involve
risks and uncertainties which could cause actual results to differ materially
from those in such forward-looking statements; including, without limitation,
risks and uncertainties arising from the rapid evolution of our markets,
competition, market acceptance of our products, our dependence upon spending by
the telecommunications industry and our ability to develop and protect new
technologies. For a description of other factors which might affect our actual
results, please see the “Risk Factors” section and other disclosures in
InfoVista’s public filings with the French Autorité des Marchés Financiers.
Readers of this news release are cautioned not to put undue reliance on any
forward-looking statement. The Company undertakes no obligation to publicly
update any forward-looking statements, whether as a result of new information,
future events or otherwise.

The consolidated FY10 accounts are currently being audited and are subject to
approval by the Board of Directors anticipated for September 23, 2010.

INFOVISTA
CONSOLIDATED INCOME STATEMENTS
(In thousands, except for share and per share data)
The table presented below represents the consolidated income statements in accordance with IFRS

For the twelve months ended For the three months ended
June 30, June 30,
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited)
Revenues
License revenues € 15,851 € 20,614 € 5,158 € 4,886
Service revenues 27,149 24,570 7,009 6,648
Total 43,000 45,184 12,167 11,534

Cost of revenues
Cost of licenses 1,284 1,058 274 245
Cost of services 8,698 9,040 2,381 2,197
Total 9,982 10,098 2,655 2,442

Gross profit 33,018 35,086 9,512 9,092

Operating expenses
Sales and marketing expenses 15,063 15,560 4,285 3,835
Research and development expenses 9,495 9,723 2,616 2,344
General and administrative expenses 5,677 5,717 1,410 1,383
Restructuring costs – 1,534 – –
Amortization of acquired intangible assets 457 458 114 114
Total 30,692 32,992 8,425 7,676

Operating profit 2,326 2,094 1,087 1,416

Financial revenues 223 666 40 149
Financial costs (14) (53) (1) (18)
Net foreign currency transaction gains (losses) (53) (144) (70) (161)

Financial profit 156 469 (31) (30)

Profit before income taxes 2,482 2,563 1,056 1,386

Income tax (expense) / benefit (55) (320) 95 (189)

Profit € 2,427 € 2,243 € 1,151 € 1,197

Basic profit per share € 0.14 € 0.13 € 0.07 € 0.07
Diluted profit per share € 0.14 € 0.13 € 0.07 € 0.07

Basic weighted average shares outstanding 16,943,648 17,679,138 16,562,897 17,459,469
Diluted weighted average shares outstanding 17,101,580 17,706,846 16,800,457 17,493,776

INFOVISTA
CONSOLIDATED BALANCE SHEETS
(In thousands)
The table presented below represents the consolidated balance sheets in accordance with IFRS

As of
June 30, June 30,
2010 2009
(unaudited)
ASSETS

Goodwill € 9,268 € 9,268
Other intangible assets, net 1,379 1,941
Tangible assets, net 1,202 1,332
Deferred tax asset 894 –
Other non-current assets 619 867
Total non-current assets 13,362 13,408

Accounts receivables, net 13,207 8,357
Other current assets 2,071 1,376
Short term deposits 11,538 –
Cash and cash equivalents 14,215 28,644
Total current assets 41 031 38 377

Total assets € 54,393 € 51,785

EQUITY
Issued capital € 9,728 € 9,724
Share premium 80,086 79,215
Treasury shares (4,164) (1,075)
Currency translation differences (1,168) (1,620)
Accumulated deficit (47,957) (50,384)
Total equity 36,525 35,860

LIABILITIES
Deferred revenues – non-current 262 320
Other non-current liabilities 270 223
Total non-current liabilities 532 543

Accounts payables 2,904 1,592
Accrued salaries and commissions 2,820 2,244
Accrued social security and payroll taxes 1,932 1,256
Accrued VAT 548 410
Deferred revenues – current 8,716 8,843
Other current liabilities 416 1,037
Total current liabilities 17,336 15,382

Total liabilities and equity € 54,393 € 51,785

Actif – Passif – –
With P&L (1)

InfoVista
David Forlizzi, Chief Financial Officer
+1 703-707-1768
+33 1 64 86 79 52
dforlizzi@infovista.com

Copyright Business Wire 2010

Dividends declared on A ordinary shares (“A shares”) will be paid by default in euro, although holders of A shares will be able to elect to receive dividend in pounds sterling. Dividends declared on B ordinary shares (“B shares”) will be paid by default in pounds sterling, although holders of B shares will be able to elect to receive dividend in euro. Dividends declared on American Depository Receipts (“ADRs”) will be paid in US dollars.

Details relating to the second quarter 2010 interim dividend

This dividend will be payable on September 8, 2010 to those members whose names are on the Register of Members on August 6, 2010. The shares will become ex-dividend on August 4, 2010.

It is expected that the dividends on the B shares will be paid via the Dividend Access Mechanism from UK-sourced income of the Shell Group.

Per ordinary share Q2 2010
RDS A shares (US$) 0.42
RDS B shares (US$) 0.42

Per ADR Q2 2010
RDS A ADRs (US$) 0.84
RDS B ADRs (US$) 0.84

Dividends on A shares will be paid, by default, in euro at the rate of EUR 0.3227 per A share. Holders of A shares who have validly submitted pounds sterling currency elections by July 28, 2010 will be entitled to a dividend of 26.89p per A share.

Dividends on B shares will be paid, by default, in pounds sterling at the rate of 26.89p per B share. Holders of B shares who have validly submitted euro currency elections by July 28, 2010 will be entitled to a dividend of EUR 0.3227 per B share.

Holders of A or B shares in ADR form will be entitled to a dividend of US$0.84 per ADR.

Taxation

Dividends on A shares will be subject to the deduction of Netherlands dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Provided certain conditions are met, shareholders in receipt of A share dividends may also be entitled to a non-payable dividend tax credit in the United Kingdom.

Shareholders resident in the United Kingdom, receiving dividends on B shares through the Dividend Access Mechanism, are entitled to a tax credit. This tax credit is not repayable. Non-residents may also be entitled to a tax credit, if double tax arrangements between the United Kingdom and their country of residence so provide, or if they are eligible for relief given to non-residents with certain special connections with the United Kingdom or to nationals of states in the European Economic Area.

The amount of tax credit is 10/90ths of the cash dividend, the tax credit referable to the second quarter 2010 interim dividend of US$0.42 (26.89p or EUR 0.3227) is US$0.05 (2.99p or EUR 0.0359) per ordinary share and the dividend and tax credit together amount to US$0.47 (29.88p or EUR 0.3586).

Dividend reinvestment plan

The Royal Bank of Scotland N.V. (“RBS”) and Equiniti each have established a dividend reinvestment facility which enables RDS shareholders to elect to have their dividend payments used to purchase RDS shares of the same class as those already held by them. The dividend reinvestment plans (the “DRIPs”) are provided by RBS in respect of shares held through Euroclear Nederland and by Equiniti in respect of all other shares (but not ADRs). DRIPs for the ADRs (both Class A ADRs and Class B ADRs) traded on the NYSE are available through The Bank of New York Mellon.

Enquiries about the DRIPs, including how to elect to participate and information about the reinvestment mechanisms under the respective plans should, in the case of shareholders holding through Euroclear Nederland, be directed to their bank or broker and in the case of all other shareholders (other than holders of ADRs) to Equiniti. Enquiries relating to the DRIPs for ADRs (both Class A ADRs and Class B ADRs) should be made to The Bank of New York Mellon.

Scrip dividend programme

At the 2010 Annual General Meeting of the Company, shareholders approved a resolution authorising the Directors to offer ordinary shareholders (excluding any shareholder holding shares as treasury shares) the right to choose to receive extra ordinary shares instead of some or all of the cash dividend or dividends which may be declared or paid at any time after the date of that meeting and prior to May 18, 2015 (the “Scrip Dividend Programme”).

The Board intends to introduce the Scrip Dividend Programme in relation to the third quarter 2010 financial results.

Shareholders will be provided with full details of its terms and conditions and how to participate in September 2010. Full details of the Scrip Dividend Programme will be made available on http://www.shell.com/dividend.

Revised timetable for the third quarter 2010 interim dividend

The Board advises shareholders that the timetable for the third quarter 2010 interim dividend has been revised as a result of the intended introduction of the Scrip Dividend Programme.

Revised intended timetable for the third quarter 2010 interim
dividend:

Announcement date October 28, 2010

Ex-dividend date November 3, 2010

Record date November 5, 2010

Scrip reference share price announcement date November 10, 2010

Closing of scrip election and currency election November 26, 2010

Pounds sterling and euro equivalents announcement December 3, 2010
date

Payment date December 17, 2010

The revised intended dividend timetable for the third quarter 2010 interim dividend is also available on http://www.shell.com/dividend.

In the second quarter, group underlying profit — or earnings before interest, taxes, depreciation and amortisation (EBITDA) before special items — rose 8.6 percent to 1.92 billion euros, Germany’s largest drugmaker, said on Thursday.

Analysts had expected adjusted EBITDA, which serves as the group’s main gauge of success, to rise to 1.98 billion. [ID:nLDE66P093] Quarterly net income of 525 million euros at the maker of cancer drugs, weed killers and car coatings also missed the 768 million estimated by analysts.

Generic-drug industry leader Teva (TEVA.TA) has brought a copycat version of Bayer’s YAZ birth-control pill to U.S. markets earlier than expected, while a generic version by Novartis (NOVN.VX) is chipping away at sales of blockbuster multiple sclerosis drug Betaferon. [ID:nLDE6501SV] [ID:nN29138356]

Bayer, the inventor of Aspirin and synthetic rubber, is meanwhile pinning its hope on potential blockbuster Xarelto, an experimental blood thinner for stroke prevention for which crucial test results are expected this year.

The group reiterated it expected 2010 core adjusted operating profit above 7 billion euros ($9.1 billion) as a rosier outlook for its plastics and foams unit MaterialScience offset expected weakness in drugs and crop chemicals sales.

The group’s CropScience division, one of the world’s largest makers of conventional pesticides, was hit by an unusually cold winter, followed by a hot and dry summer in the Northern Hemisphere.

(Reporting by Ludwig Burger)

§ Group performance: Q2 2010 revenues were $214.9 million, with a corresponding EBIT of
$5.3 million, compared to revenues of $294.3 million in Q2 2009 and an EBIT of $32.9
million.

§ Marine: Q2 2010 revenues were lower compared to the same period last year, primarily
driven by more time spent steaming and at yard, lower prices for Marine contract work
with 2009 having benefited from activity priced before the credit crunch, and lower
MultiClient pre-funding revenues. Industry capacity additions scheduled for 2010
continue to put pressure on conventional streamer pricing.

§ Most of the 2010 GeoStreamer capacity sold: Strong customer interest for GeoStreamer
continues. Ramform Valiant was equipped with GeoStreamer in June and Ramform Explorer
completed the same upgrade in July.

§ GeoStreamer price uplifts: Relative pricing differentiation for GeoStreamer work
continues to improve with margins of more than 1000 basis points above conventional
streamer margins.

§ Order book increasing: Order book increased by approximately $90 million from Q1 2010
and total order book is now $499 million.

§ Two break-through contracts for OptoSeis: PGS has signed an agreement with Petrobras
to install a fiber-optic system at the Jubarte field, and a collaboration agreement with
Shell to develop an onshore fiber-optic exploration and reservoir monitoring system.

§ More flexible credit facility: The Company amended its revolving credit and Term Loan
B facility in May 2010 to increase financial flexibility.

§ Negative net financial items: Foreign exchange fluctuations and amendment and
redemption of credit facilities resulted in a cost of $18.2 million in Q2 2010.

§ Organizational changes implemented: Following sale of the Onshore business PGS
implemented its new organizational structure.

§ EBITDA guidance maintained: The Company maintains its full year EBITDA guidance of
$450 million, supported by GeoStreamer success and increased MultiClient pre-funding
revenues in the second half, offset by a weak contract market for conventional streamers
and some MultiClient late sales uncertainty.

Jon Erik Reinhardsen, Chief Executive Officer and President of PGS, commented:

“The upgrade of Ramform Explorer to become one of the most efficient vessels in the
industry will together with the GeoStreamer upgrade of Ramform Valiant and delivery of
the new PGS Apollo pave the way for increased efficiency and reduced exposure to the
industry cycles. The second quarter was impacted by repositioning of vessels and
significant investments in vessel and GeoStreamer upgrades. New industry capacity will
continue to put pressure on pricing in the second half, but we remain on track to meet
our current full year EBITDA guidance.”

Key Financial Figures Quarter ended Six months ended June 30, Year ended December 31, 2009
(In millions of dollars, except per share data) June 30, Audited 1)
2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited
Revenues from continuing operations $ 214.9 $ 294.3 $ 474.3 $ 685.1 $ 1,350.2
Adjusted EBITDA (as defined) 71.4 154.1 170.7 360.5 672.1
EBIT excluding special items 2) 5.3 81.2 40.1 236.3 386.9
EBIT 5.3 32.9 39.6 137.5 233.3
Income (loss) before income tax expense (27.4) 40.2 (12.4) 129.8 228.1
Net income (loss) to equity holders (22.3) 41.0 (6.1) 95.2 165.8
Basic earnings per share ($ per share) (0.11) 0.22 (0.03) 0.53 0.88
Diluted earnings per share ($ per share) (0.11) 0.22 (0.03) 0.53 0.88
Net cash provided by operating activities 63.8 208.1 179.3 353.5 676.1
Cash investment in MultiClient library 51.7 56.7 103.8 101.6 183.1
Capital expenditures 52.7 56.8 100.6 150.5 231.2
Total assets (period end) 2,690.4 3,132.4 2,690.4 3,132.4 2,929.4
Cash and cash equivalents (period end) 159.8 168.1 159.8 168.1 126.0
Net interest bearing debt (period end) $ 616.3 $ 962.1 $ 616.3 $ 962.1 $ 774.0

1) Financial information for the full year 2009 is derived from the audited financial
statements as presented in the 2009 Annual Report.
2) Impairment charges of $0.5 million in Q1 2010 and $153.6 million for the full year
2009.

Complete Q2 2010 earnings release can be downloaded at www.newsweb.no
http://www.newsweb.no/ or www.pgs.com http://www.pgs.com/

FOR DETAILS, CONTACT:
Tore Langballe, SVP Corporate Communications

Phone: +47 67 51 43 75

Mobile: +47 90 77 78 41

Bård Stenberg, Investor Relations Manager

Phone: +47 67 51 43 16

Mobile: +47 99 24 52 35

US Investor Services

Phone: +1 281 509 8712

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian
Securities Trading Act)

Second-quarter recurring earnings before interest and tax (REBIT) from Solvay’s chemicals and plastics units was 194 million euros, beating the average estimate of 143 million euros from a Reuters poll.

Solvay, which produces PVC plastic used in construction and soda ash for glass, had restated REBIT from the two units of 80 million euros in the same period last year. Quarter-on-quarter REBIT rose 54 percent.

“The chemicals sector should realise a recurring operating result in line with that of last year, notwithstanding the price decreases,” the company said in a statement. “In plastics, the volume growth should support sharp REBIT expansion.”

Solvay, which sold its drugs unit to its U.S. partner Abbott (ABT.N) in September for 4.5 billion euros, reiterated its priority this year is to reinvest the cash, but gave no further hint on its acquisition plans.

Group REBIT was 183 million euros, a rise of 1 percent over last year, which included results from its drugs unit.

European chemicals companies have benefited from improved volumes as customers stock up again after the recession, while cost cuts have also helped to improved margins.

Germany’s BASF (BASF.DE), the world’s largest chemicals maker by sales, also saw improved volumes as it reported quarterly operating profit above estimates. [ID:nLDE66Q1HL]

BASF’s German peer Bayer (BAYGn.DE) and Switzerland’s Clariant (CLN.VX) are also opening their books on Thursday. (Reporting by Aaron Gray-Block)

“Customer demand is getting stronger. Operating profit from continuing operations, excluding non-recurring items, is expected to grow notably from last year,” the firm said in a statement on Thursday.

April-to-June underlying operating profit rose 38 percent versus a year ago to 40.5 million euros ($52.7 million), at the top end of forecasts in a Reuters poll of analysts. Revenues rose 12 percent to 545 million, trumping all expectations.

“The recovery in demand which started at the end of the first quarter also continued in the second quarter,” said Kemira, a supplier of chemicals to the paper, oil and water industries. ($1=.7684 Euro) (Editing by Jon Loades-Carter)

The world’s No.4 flat TV maker plans to raise up to 500 billion yen ($5.7 billion) in a new share issue to help it finance the buyouts, two sources said.

Panasonic stock plunged nearly 11 percent at one stage on fears the move would dilute existing shareholders, wiping about $3.5 billion off the company’s market value. The share price fell to its lowest since March 2009.

As Panasonic speeds up a restructuring, four sources with knowledge of the deal said the company would buy the remaining shares in Sanyo Electric Co (6764.T) and Panasonic Electric Works Co Ltd (6991.T).

The move is key to Panasonic’s strategy of shifting focus to energy and environment-related businesses as it struggles to boost profits in overseas markets amid tough price competition from South Korea’s Samsung Electronics (005930.KS) and LG Electronics (066570.KS). It has said it would withdraw from overlapping business with Sanyo.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For Starmine comparative data: r.reuters.com/faj22n

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

A deal would also make it easier for Panasonic to put more resources into its promising businesses such as solar power and lithium ion batteries.

“The cost may not be small, but I think investors will welcome the deal as Panasonic can boost its rapidly growing environment-related business,” said Okasan Securities analyst Kazumasa Kubota.

“With only its audio and visual business, the firm could not expect to grow dramatically.”

GOING GREEN

Panasonic bought a 50 percent stake in Sanyo in December for about $4 billion, gaining control of the world’s top maker of rechargeable batteries and a producer of solar cells. It owns 51 percent of Panasonic Electric Works, which makes housing materials and lighting equipment.

Based on current market prices, acquiring the shares it does not own would cost Panasonic about 720 billion yen ($8.2 billion). A typical premium could push the value of the deal to above 900 billion yen.

Panasonic is considering a public cash offering and share swap to complete the transaction and could make an official announcement of its plans this week, according to the sources, who were not authorised to speak publicly about the deal.

“The move will be good for Panasonic’s long-term strategy, but investors are worried about how many new shares it will issue. We anticipated the deal but thought it would be done by a share swap,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “The news is negative for the share price in the short term.”

Based on Panasonic’s current market value of 2.86 trillion yen, the planned new share issues would boost the number of outstanding shares by about 18 percent.

At 0550 GMT, Panasonic shares were trading at 1,071 yen, off their lows but still down 8 percent and poised for the biggest decline in 20 months. Its share volume is already 6 times the average daily volume traded over the past 90 days.

Sanyo shares soared 28 percent to 151 yen, while Panasonic Electric Works was untraded amid a rush of buy orders. The benchmark Nikkei average .N225 fell 0.6 percent.

Under President Fumio Ohtsubo, Panasonic has been shifting away from low-margin home electronics products and investing more aggressively in solar cells, batteries and other energy-related areas with promising growth prospects.

Ohtsubo unveiled a new three-year business plan in May under which Panasonic is aiming to roughly double its operating profit margin to 5 percent or more by March 2013, while boosting sales by a third to 10 trillion yen. [ID:nTOE64606D]

Panasonic and Sanyo have planned to withdraw from overlapping businesses that would account for 300 billion yen in annual revenue and merge the development and production of white goods. (Additional reporting by Emi Emoto and Reiji Murai; Editing by Michael Watson and Dhara Ranasinghe)

REGULATED INFORMATION

Operating result from the Chemicals and Plastics activities for the second
quarter of 2010 (EUR 183 million) significantly higher compared to both
the second quarter of 2009 (EUR 63 million) and the first quarter of 2010
(EUR 115 million)

– Sales (EUR 3,761 million): Up by 25% compared to the first half of 2009,
not including the pharmaceuticals activities, thanks to a more sustained
global activity; up by 32% in the second quarter

– Operating result (1) (EUR 329 million)

– Overall, the operating result benefited from efforts to control costs

– Chemicals (EUR 147 million): up by 10% compared to the first half of
2009 thanks to improvement in sales volumes across all activities

– Plastics (EUR 173 million): clearly improved compared to the first half
of 2009 (EUR 14 million) especially thanks to significant increase in
sales volumes in Specialties

– Pharmaceuticals (EUR 31 million from January 1 to February 15, 2010)
shown as “discontinued operations”

– Net income of Group (EUR 1,789 million) up compared to the first half of
2009 thanks to the capital gain realized in the 1st quarter of 2010 on the
sale of the Pharmaceuticals activities (EUR 1.7 billion net of taxes)
(sale closed on February 15, 2010)

Group sales for the first half of 2010 amounted to EUR 3,761 million. They
were up by 25% compared to the first half of 2009, not including the
Pharmaceuticals activities; compared to the first quarter, sales from the
second quarter improved by 16%. Sales from the Chemicals Sector (EUR 1,444
million) were slightly up (+3%) compared to the first half of 2009, with
the improvement in sales volumes (+16%) compensating for the lower sales
prices (-16%). Sales from the Plastics Sector (EUR 2,005 million) clearly
improved (+48% compared to the first half of 2009), especially thanks to a
significant increase in sales volumes in the “Specialties” cluster. Thus,
sales volumes of Specialty Polymers in the first half were up by 45%
compared to last year and, in the second quarter, were up by 15% compared
to the first quarter.

Recurring Group operating result (REBIT (1)-(2)) from the first half of
2010 amounted to EUR 329 million. Not including Pharmaceuticals
activities, it significantly improved compared to last year (EUR 298
million in the first half of 2010 compared to EUR 126 million in the
first half of 2009). In the second quarter (EUR 183 million), it was up
by 193% compared to the second quarter of 2009 (EUR 63 million) and by
59% compared to the first quarter of 2010 (EUR 115 million).

The Group’s operating margin (REBIT on sales), excluding the
Pharmaceuticals activities, was 8.6% in the first half of 2010 compared to
4.6% in the first half of 2009; it amounted to 9.9% in the 2nd quarter
2010.

The net income of the Group (EUR 1,789 million) was up compared to the
first half of 2009 due to the capital gain realized on the sale of the
Pharmaceuticals activities (EUR 1.7 billion net of taxes). The net income
of the Group for the second quarter is down by EUR 26 million in
comparison with last year, due to an increase of EUR 37 million in non
recurring items.

The REBITDA (1)-(3) of the Group amounted to EUR 549 million. Excluding
the Pharmaceuticals activities, it improved by 63% compared to the first
half of 2009.

Following receipt of the payment for the sale of the Pharmaceuticals
activities on February 15, 2010 and in anticipation of reinvestment of
these funds in industrial activities, the Solvay Group is in a net cash
surplus situation (EUR 2,526 million, or 36% of equity). The significant
efforts made by the Group last year in terms of cost reduction and
improvement of operating cash flow are continuing. Thus, as previously
announced, the Solvay Group is working on a study (the “Horizon” project)
aiming to optimize the effectiveness of its organization and to prepare
for its future growth.

Chemicals Sector sales from the first half of 2010 (EUR 1,444 million)
were slightly up (+3%) compared to the first half of 2009, with the
increase in sales volumes (+16%) compensating for the lower sales prices
(-16%), primarily in soda ash and caustic soda. Compared to the first
quarter of 2010, sales improved by 12% in the second quarter in a context
of slight improvement in sales volumes. Operating result from the first
half (EUR 147 million) was up by 10% compared to the first half of last
year (EUR 133 million); in the second quarter, it amounted to EUR 80
million, compared to EUR 72 million in the second quarter of 2009 and EUR
67 million in the first quarter of 2010. It benefited from the better
utilization rates in the context of a more sustained global activity than
last year and energy expenses that were under control. The clear
improvement in results from fluorinated products and peroxides should be
noted. The strong integration of the Chemicals Sector in raw materials
enabled it to avoid a material impact from input cost increases.
Additionally it should be noted that in line with the IFRS, following the
decision to terminate the sale of the precipitated calcium carbonate
activity, this activity was reintroduced in June 1 The cost of
discounting provisions (EUR 33 million on June 30, 2009 and EUR 26
million on June 30, 2010) was transferred to financing rather than
operating charges in line with IAS19, considering the financial nature of
this item. 2 REBIT: measure of operating performance (this is not an IFRS
concept as such) 3 REBITDA: REBIT, before recurring depreciation and
amortization of 2010 into the Chemicals Sector while it had been shown as
“assets and liabilities associated with asset held for sale” since October
2008. Consequently, the cumulative depreciation of the assets involved,
since this date, were expensed in the second quarter of 2010, with a
negative impact on the Sector’s operating result of EUR 10 million.

Plastics Sector sales for the first six months of the year (EUR 2,005
million) were significantly higher (+48%) than those of last year. They
continued to improve in the second quarter (EUR 1,088 millions, +19%
compared to the first quarter of 2010). This can be explained by the sharp
increase in sales volumes in the “specialties” cluster (Specialty Polymers
and Inergy Automotive Systems), while prices remained globally stable.
Although all regions of the world were involved, this improvement was
particularly notable in Asia. In Vinyls and at Pipelife, the improvement
in demand remains limited in the context of a stagnant European
construction sector. The operating result for the Plastics Sector in the
first half of 2010 (EUR 173 million) clearly improved compared to last
year (EUR 14 million). That of the second quarter (EUR 114 million) is
significantly higher than that of the first quarter 2010 (EUR 59
million). This improvement derived primarily from the “Specialties”
cluster. The operating result for Vinyls improved compared to the low
level of last year but it continued to be penalized by the low level of
margins in Europe and Mercosur and by the absence of a resumption of
demand in construction in Europe.

It is interesting to note that many innovative Specialty Polymers find
their application in the solar airplane Solar Impulse which recently
achieved its first night flight.

On July 28, 2010, Plastic Omnium and Solvay signed a binding agreement for
purchase in the second half of 2010 by Plastic Omnium of Solvay’s stake in
Inergy Automotive Systems. Solvay will receive for its shares EUR 270
million in cash. This represents an Enterprise Value of about EUR 330
million for the 50% stake of Solvay taking into account the assumption of
debt and other liabilities for an adjusted value of about EUR 60 million.
Consequently, the assets and liabilities of Inergy Automotive Sytems are
transferred to “Assets held for sale” and “Liabilities linked to assets
held for sale” in the balance sheet as of the end of June 2010.

The 1st half of 2010 was characterized by demand recovery. At current
market conditions, the Chemicals Sector should realize a recurring
operating result in line with that of last year, notwithstanding the price
decreases; in Plastics, the volume growth should support sharp REBIT
expansion. The priority goes this year to the optimal reinvestment after
the disposal of the pharmaceuticals activities.

SOLVAY Group – Summary Financial
Information

+————————-+———+————–+——————–+
|Million EUR (except for |1st half |1st half 2010 |1st half 2010/ 1st |
|per-share figures in EUR)|2009 | |half 2009 |
+————————-+———+————–+——————–+
|Sales | 4,051 | 3,761 |-7% |
+————————-+———+————–+——————–+
|REBIT | 339 | 329 |-3% |
+————————-+———+————–+——————–+
|REBIT – continuing | | | |
+————————-+———+————–+——————–+
|operations | 126 | 298 |ns |
+————————-+———+————–+——————–+
|REBIT- discontinued | | | |
+————————-+———+————–+——————–+
|operations | 213 | 31 |ns |
+————————-+———+————–+——————–+
|REBIT/Sales | 8.4% | 8.8% |ns |
+————————-+———+————–+——————–+
|Non-recurring items | -34 | -116 |ns |
+————————-+———+————–+——————–+
|EBIT (4) | 305 | 213 |-30% |
+————————-+———+————–+——————–+
|Charges on net | -104 | -91 |-12% |
|indebtedness | | | |
+————————-+———+————–+——————–+
|Income on investments | -3 | 1 |ns |
+————————-+———+————–+——————–+
|Capital gain Pharma | 0 | 1,695 |ns |
+————————-+———+————–+——————–+
|Earnings before taxes | 198 | 1,818 |ns |
+————————-+———+————–+——————–+
|Income taxes | -16 | -29 |77% |
+————————-+———+————–+——————–+
|Net income of the Group | 181 | 1,789 |ns |
+————————-+———+————–+——————–+
|Net income (Solvay share)| 168 | 1,769 |ns |
+————————-+———+————–+——————–+
|Total depreciation | 262 | 258 |-1% |
+————————-+———+————–+——————–+
|REBITDA | 586 | 549 |-6% |
+————————-+———+————–+——————–+
|Cash flow | 443 | 2,047 |ns |
+————————-+———+————–+——————–+
|Results per share (5) | 2.05 | 21.65 |ns |
+————————-+———+————–+——————–+
|Net debt to equity ratio | 40% | -36% | |
+————————-+———+————–+——————–+

+————————-+—————–+—————–+
|Million EUR (except for |2nd quarter 2009 |2nd quarter 2010 |
|per-share figures in EUR)| | |
+————————-+—————–+—————–+
|Sales | 2,067 | 1,849 |
+————————-+—————–+—————–+
|REBIT | 181 | 183 |
+————————-+—————–+—————–+
|REBIT – continuing | | |
+————————-+—————–+—————–+
|operations | 63 | 183 |
+————————-+—————–+—————–+
|REBIT – discontinued | | |
+————————-+—————–+—————–+
|operations | 118 | 0 |
+————————-+—————–+—————–+
|REBIT/Sales | 8.8% | 9.9% |
+————————-+—————–+—————–+
|Non-recurring items | -31 | -68 |
+————————-+—————–+—————–+
|EBIT (4) | 150 | 115 |
+————————-+—————–+—————–+
|Charges on net | -61 | -45 |
|indebtedness | | |
+————————-+—————–+—————–+
|Income on investments | -3 | 1 |
+————————-+—————–+—————–+
|Capital gain Pharma | 0 | -1 |
+————————-+—————–+—————–+
|Earnings before taxes | 86 | 70 |
+————————-+—————–+—————–+
|Income taxes | -2 | -13 |
+————————-+—————–+—————–+
|Net income of the Group | 83 | 57 |
+————————-+—————–+—————–+
|Net income (Solvay share)| 77 | 44 |
+————————-+—————–+—————–+
|Total depreciation | 132 | 127 |
+————————-+—————–+—————–+
|REBITDA | 308 | 300 |
+————————-+—————–+—————–+
|Cash flow | 215 | 184 |
+————————-+—————–+—————–+
|Results per share (5) | 0.93 | 0.60 |
+————————-+—————–+—————–+
|Net debt to equity ratio | | |
+————————-+—————–+—————–+

+————————-+——————–+
|Million EUR (except for |2nd quarter 2010/ |
|per-share figures in EUR)|2nd quarter 2009 |
+————————-+——————–+
|Sales |-11% |
+————————-+——————–+
|REBIT |1% |
+————————-+——————–+
|REBIT – continuing | |
+————————-+——————–+
|operations |ns |
+————————-+——————–+
|REBIT – discontinued | |
+————————-+——————–+
|operations |ns |
+————————-+——————–+
|REBIT/Sales |ns |
+————————-+——————–+
|Non-recurring items |ns |
+————————-+——————–+
|EBIT (4) |-23% |
+————————-+——————–+
|Charges on net |-27% |
|indebtedness | |
+————————-+——————–+
|Income on investments |ns |
+————————-+——————–+
|Capital gain Pharma |ns |
+————————-+——————–+
|Earnings before taxes |-18% |
+————————-+——————–+
|Income taxes |ns |
+————————-+——————–+
|Net income of the Group |-32% |
+————————-+——————–+
|Net income (Solvay share)|-43% |
+————————-+——————–+
|Total depreciation |-4% |
+————————-+——————–+
|REBITDA |-3% |
+————————-+——————–+
|Cash flow |-14% |
+————————-+——————–+
|Results per share (5) |-36% |
+————————-+——————–+
|Net debt to equity ratio | |
+————————-+——————–+

Notes on Solvay Group summary financial information

Non-recurring items amounted to EUR -116 million in the first half of
2010. They included among others an asset write-off of EUR 20 million
related to the closed hydrogen peroxide unit at Bitterfeld, other
restructuring 4 EBIT: results before financial charges and taxes 5
Calculated on the basis of the weighted average of the number of shares
in the period, after deduction of treasury shares and own shares
purchased to cover the stock option program, or a total of 82,134,172
shares for the first six months of 2009 and 81,679,218 shares for the
first six months of 2010 charges and an environmental provision of EUR 19
million for remediation and containment works in Spinetta (Italy).

Charges on net indebtedness amounted to EUR -91 million at the end of June
2010 compared to EUR -104 million at the end of June 2009. Charges on
borrowing amounted to EUR -70 million. Gross financial debt is covered at
81% at the average fixed rate of 5.1% with a duration of 5.7 years; the
first significant maturity for debt reimbursement will not occur until
2014. Interest on cash deposits and investments amounted to EUR 9 million.
It should be recalled that the proceeds from the sale of the
pharmaceuticals activities have been invested in short duration government
bonds and highest rated treasury instruments since February 15, 2010.
Annual cash yield in the first half of 2010 was 0.41%.

The capital gain realized on the sale of the Pharmaceutical activities
amounted to EUR 1.7 billion net of taxes.

Income taxes amounted to EUR -29 million compared to EUR -16 million in
the first half of 2009; excluding the capital gain realized on the sale
of the Pharmaceuticals activities, the effective tax rate is 24%.

The net income of the Group (EUR 1,789 million) improved compared to the
first half of 2009 thanks to the capital gain realized on the sale of the
Pharmaceuticals activities (EUR 1.7 billion EUR net of taxes). The “non-
controlling interests” amounted to EUR 20 million. The net result per
share amounted to 21.65 EUR (compared to 2.05 EUR at the end of June
2009).

The Free Cash Flow from continuing operations amounted to EUR -293 million
at the end of June 2010. It includes an amount of EUR -206 million related
to the substitution of a previously issued guarantee by a prepayment in
the first quarter 2010 of fines imposed in 2006 by the European Commission
concerning peroxygen antitrust cases (still in appeal). It should be noted
that the Group continues its efforts regarding the rigorous management of
working capital. At the end of June 2010, the industrial working capital
amounted to EUR 1,251 million, slightly up (EUR +113 million) compared to
the end of June 2009 (excluding pharmaceuticals activities) in a clearly
improved sales context (+25%).

RESULTS BY SEGMENT (6)

+————————-+———+————–+——————–+
|
Million EUR |1st half |1st half 2010 |1st half 2010 / 1st |
| |2009 | |half 2009 |
+————————-+———+————–+——————–+
|GROUP SALES(7) | 4,051 | 3,761 |-7% |
+————————-+———+————–+——————–+
|Chemicals | 1,406 | 1,444 |3% |
+————————-+———+————–+——————–+
|Plastics | 1,353 | 2,005 |48% |
+————————-+———+————–+——————–+
|Sales – continuing | 2,759 | 3,449 |25% |
|operations | | | |
+————————-+———+————–+——————–+
|Pharmaceuticals – | | | |
+————————-+———+————–+——————–+
|Discontinued Operations | 1,292 | 312 |ns |
+————————-+———+————–+——————–+
|REBIT GROUP | 339 | 329 |-3% |
+————————-+———+————–+——————–+
|Chemicals | 133 | 147 |10% |
+————————-+———+————–+——————–+
|Plastics | 14 | 173 |ns |
+————————-+———+————–+——————–+
|Corporate and Business | -10 | -10 |-1% |
|Support | | | |
+————————-+———+————–+——————–+
|New Business Development | -11 | -12 |11% |
+————————-+———+————–+——————–+
|REBIT – continuing | | | |
+————————-+———+————–+——————–+
|operations | 126 | 298 |ns |
+————————-+———+————–+——————–+
|Pharmaceuticals – | | | |
+————————-+———+————–+——————–+
|Discontinued Operations | 213 | 31 |ns |
+————————-+———+————–+——————–+
|REBITDA GROUP | 586 | 549 |-6% |
+————————-+———+————–+——————–+
|Chemicals | 216 | 246 |14% |
+————————-+———+————–+——————–+
|Plastics | 119 | 290 |ns |
+————————-+———+————–+——————–+
|Corporate and Business | -6 | -6 |6% |
|Support | | | |
+————————-+———+————–+——————–+
|New Business Development | -11 | -12 |12% |
+————————-+———+————–+——————–+
|REBITDA – continuing | | | |
+————————-+———+————–+——————–+
|operations | 318 | 518 |63% |
+————————-+———+————–+——————–+
|Pharmaceuticals – | | | |
+————————-+———+————–+——————–+
|Discontinued Operations | 268 | 31 |ns |
+————————-+———+————–+——————–+

+————————-+—————–+—————–+
|Million EUR |2nd quarter 2009 |2nd quarter 2010 |
| | | |
+————————-+—————–+—————–+
|GROUP SALES(7) | 2,067 | 1,849 |
+————————-+—————–+—————–+
|Chemicals | 683 | 762 |
+————————-+—————–+—————–+
|Plastics | 724 | 1,088 |
+————————-+—————–+—————–+
|Sales – continuing | 1,406 | 1,849 |
|operations | | |
+————————-+—————–+—————–+
|Pharmaceuticals – | | |
+————————-+—————–+—————–+
|Discontinued Operations | 661 | 0 |
+————————-+—————–+—————–+
|REBIT GROUP | 181 | 183 |
+————————-+—————–+—————–+
|Chemicals | 72 | 80 |
+————————-+—————–+—————–+
|Plastics | 8 | 114 |
+————————-+—————–+—————–+
|Corporate and Business | -12 | -5 |
|Support | | |
+————————-+—————–+—————–+
|New Business Development | -5 | -6 |
+————————-+—————–+—————–+
|REBIT – continuing | | |
+————————-+—————–+—————–+
|operations | 63 | 183 |
+————————-+—————–+—————–+
|Pharmaceuticals – | | |
+————————-+—————–+—————–+
|Discontinued Operations | 118 | 0 |
+————————-+—————–+—————–+
|REBITDA GROUP | 308 | 300 |
+————————-+—————–+—————–+
|Chemicals | 114 | 135 |
+————————-+—————–+—————–+
|Plastics | 63 | 175 |
+————————-+—————–+—————–+
|Corporate and Business | -10 | -3 |
|Support | | |
+————————-+—————–+—————–+
|New Business Development | -5 | -6 |
+————————-+—————–+—————–+
|REBITDA – continuing | | |
+————————-+—————–+—————–+
|operations | 162 | 300 |
+————————-+—————–+—————–+
|Pharmaceuticals – | | |
+————————-+—————–+—————–+
|Discontinued Operations | 146 | 0 |
+————————-+—————–+—————–+

+————————-+——————–+
|Million EUR |2nd quarter 2010 / |
| |2nd quarter 2009 |
+————————-+——————–+
|GROUP SALES(7) |-11% |
+————————-+——————–+
|Chemicals |12% |
+————————-+——————–+
|Plastics |50% |
+————————-+——————–+
|Sales – continuing |32% |
|operations | |
+————————-+——————–+
|Pharmaceuticals – | |
+————————-+——————–+
|Discontinued Operations |ns |
+————————-+——————–+
|REBIT GROUP |1% |
+————————-+——————–+
|Chemicals |11% |
+————————-+——————–+
|Plastics |ns |
+————————-+——————–+
|Corporate and Business |-60% |
|Support | |
+————————-+——————–+
|New Business Development |19% |
+————————-+——————–+
|REBIT – continuing | |
+————————-+——————–+
|operations |Ns |
+————————-+——————–+
|Pharmaceuticals – | |
+————————-+——————–+
|Discontinued Operations |ns |
+————————-+——————–+
|REBITDA GROUP |-3% |
+————————-+——————–+
|Chemicals |18% |
+————————-+——————–+
|Plastics |ns |
+————————-+——————–+
|Corporate and Business |-71% |
|Support | |
+————————-+——————–+
|New Business Development |21% |
+————————-+——————–+
|REBITDA – continuing | |
+————————-+——————–+
|operations |85% |
+————————-+——————–+
|Pharmaceuticals – | |
+————————-+——————–+
|Discontinued Operations |ns |
+————————-+——————–+

It should be noted that the “New Business Development” (NBD) segment
in 2009 showed a REBIT of EUR -25 million, constituted for the most part
of research costs. Included in 2009 in the “Corporate and Business
Support” segment, it has been part of specific reporting since January 1,
2010.

The R&D budget for NBD in 2010 amounts to about EUR 30 million.

(1) The cost of discounting provisions (EUR 33 million on June 30, 2009
and EUR 26 million on June 30, 2010) was transferred to financing rather
than operating charges in line with IAS19,considering the financial
nature of this item.

(2) REBIT: measure of operating performance (this is not an IFRS concept
as such)

(3) REBITDA: REBIT, before recurring depreciation and amortization

(4) EBIT: results before financial charges and taxes

(5) Calculated on the basis of the weighted average of the number of
shares in the period, after deduction of treasury shares and own shares
purchased to cover the stock option program, or a total of 82,134,172
shares for the first six months of 2009 and 81,679,218 shares for the
first six months of 2010

(6) Results by segment include results from the five segments of the Group
(until February 15, 2010 for Pharma).

(7) These are sales after elimination of inter-company sales.

PATRICK VERELST
Head of Investor Relations
SOLVAY S.A.
Tel. +32 2 509 7243
patrick.verelst@solvay.com
www.solvay-investors.com

The full press release is available on

http://www.solvay-investors.com/

This information is provided by HUGIN

Copyright 2010, Market Wire, All rights reserved.

Extension for Technicolor Set-Top Boxes

Technicolor’s 3D Services Enable the Launch of DIRECTV’s First 3D VOD
Service

Paris (France), July 29, 2010 – Technicolor (Euronext Paris : FR0010918292
; NYSE : TCH) today announced the signing of a three year contract
extension to provide a wide range of SD and HD set-top boxes to DIRECTV,
the world’s most popular video service. Technicolor is also the preferred
provider of 3D services, enabling the launch of DIRECTV’s first 3D VOD
service.

Since the beginning of this relationship, Technicolor has provided more
than 48 million set-top-boxes to DIRECTV. The contract extension will
allow the two companies to further develop their collaboration in new
areas such as 3D, to meet the demands of the ever-increasing number of
DIRECTV customers. DIRECTV is the first video service provider to offer a
suite of three dedicated 3D channels including n3D On Demand.

“Technicolor has been a strategic business partner for DIRECTV for over
fifteen years and has been a supplier in every set top box product
category available for DIRECTV”, said Vince Pizzica, Head of Digital
Delivery at Technicolor. “We are now supporting a significant number of
HD channels, and are ready to meet new challenges in the future, such as
greater interactivity and stereoscopic 3D services. We are honored that
DIRECTV continues to put its faith in Technicolor to support these
advanced services.”

Technicolor has been providing DIRECTV with multiple technology services
such as high performance set-top-boxes, hospitality video systems, multi-
dwelling broadcast distribution systems and aircraft video distribution
technologies. DIRECTV has a strong reputation as an innovative
broadcaster, rolling out new services including more than 160 channels of
high definition television, offering integrated DVR functionality and now
as a leader in 3D video services.

“Technicolor has consistently delivered the reliable, high quality
products we need to remain at the forefront of the industry,” said Romulo
Pontual, CTO of DIRECTV. “We look forward to continuing our relationship
and leadership position as we enter new frontiers of innovation like 3D
viewing in the home.”

Technicolor, widely recognised as one of the leading suppliers of set-top
boxes worldwide, reached the milestone of delivering 100 million digital
set-top boxes at the end of past year.

***

Technicolor is a company listed on NYSE Euronext Paris and NYSE stock
exchanges, and this press release contains certain statements that
constitute “forward-looking statements” within the meaning of the “safe
harbor” of the U.S. Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on management’s current expectations
and beliefs and are subject to a number of risks and uncertainties that
could cause actual results to differ materially from the future results
expressed, forecasted or implied by such forward-looking statements. For a
more complete list and description of such risks and uncertainties, refer
to Technicolor’s filings with the U.S. Securities and Exchange Commission
and its filings with the French Autorite des marches financiers.

***

About Technicolor

With more than 95 years of experience in entertainment innovation,
Technicolor serves an international base of entertainment, software, and
gaming customers. The company is a leading provider of production,
postproduction, and distribution services to content creators and
distributors. Technicolor is one of the world’s largest film processors;
one of the largest independent manufacturers and distributors of DVDs
(including Blu-ray Disc); and a leading global supplier of set-top boxes
and gateways. The company also operates an Intellectual Property and
Licensing business.

For more information: www.technicolor.com

Press contacts: +33 1 41 86 53 93

technicolorpressoffice@technicolor.com

Investor relations: +33 1 41 86 55 95

investor.relations@technicolor.com

Shareholder relations:

shareholder@technicolor.com

Industry Analyst Relations: +33 1 41 86 59 39

industryanalystrelations@technicolor.com

This information is provided by HUGIN

Copyright 2010, Market Wire, All rights reserved.

Energy major Reliance Industries (RELI.BO) dropped 0.5
percent after sliding 3.1 percent in the previous session, and
traders said they were cautious of the near-term trend.

“A lot of short positions are being rolled over in Reliance
Industries, indicating a bearish outlook,” said Kunal Sukhani,
manager of institutional equities at Asian Markets Securities.

The stock, which has the heaviest weight on the main BSE
index .BSESN, has come under pressure following a delay in
the company’s plan to reach full gas output from its field off
India’s east coast.

The oil secretary said late on Wednesday Reliance would be
able to pump natural gas at full capacity from its deep-sea
field during the year to March 2013, indicating a delay of
almost two years. [ID:nSGE66R0KK]

By 11:09 a.m. (0539 GMT), the 30-share BSE index was
trading down 0.2 percent at 17,921.28 points, with 19 of its
components declining.

“Market is volatile because of derivatives expiry,” said
Sukhani, referring to the monthly contracts on the National
Stock Exchange.

DLF (DLF.BO) dropped 1.4 percent after the largest listed
property developer’s 3.8 percent rise in quarterly profit
failed to cheer investors. [ID:nBMA008118]

Param Desai, a research analyst with Angel Broking, said
the profit was tad below expectation as interest and
depreciation costs weighed.

Financials were mixed as near-term monetary tightening
fears weighed, but the demand for loan outlook was seen higher
on the back of robust economic growth.

A Reuters poll showed the central bank was likely to raise
rates more aggressively in the rest of the fiscal year, after
tightening policy more than expected on Tuesday.
[ID:nBMA008098]

Top lender State Bank of India (SBI.BO) dropped 1.2 percent
while rivals ICICI Bank (ICBK.BO) and HDFC Bank (HDBK.BO) were
up 0.1 percent and 0.2 percent respectively.

Foreign funds have invested $9.2 billion in Indian equities
so far this year and has helped the benchmark index gain 2.6
percent in the period.

In the broader market, gainers and losers were almost equal
in number on volume of 113 million shares.

The 50-share NSE index .NSEI was down 0.2 percent at
5,387.25.

Elsewhere, the MSCI’s measure of Asian markets other than
Japan .MIAPJ0000PUS was barely changed while Japan’s Nikkei
.N225 was down 0.7 percent.

STOCKS ON THE MOVE

* HCL Technologies (HCLT.BO) was up 2.8 percent at 383.25
rupees after the software services firm said quarterly net
income rose marginally as demand for outsourcing increased.
[ID:nSGE66R0DZ]

* Hexaware Technologies (HEXT.BO) dropped 1.5 percent to
83.40 rupees as its April-June net profit slumped 63.5 percent.
[ID:nBMB011147]

MAIN TOP THREE BY VOLUME

* Aster Silicates (ASTS.BO) on 9.5 million shares

* Karuturi Global (KART.BO) on 4.2 million shares

* Shree Ashtavinayak (SACV.BO) on 2.3 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Euro dips vs yen on Japan exporter selling
[FRX/]
* Oil steady near $77 after sharp US petroleum stocks gain
[O/R]
* Asia shares retreat from highs, dollar dips
[MKTS/GLOB]
* Wall St falls on economic outlook
[.N]
* For closing rates of Indian ADRs

The group said it would not hesitate to target media organisations and pursue their members “as long as they persist to be a tool in the war against Allah and His Messenger”.

On Monday, a suicide bomber killed at least four people in an attack on the Saudi-owned Al Arabiya news channel, security officials said. [ID:nLDE66P0CY]

Dubai-based Al Arabiya also said four people were killed, while an Iraqi interior ministry source put the death toll at six and said about 20 others were wounded.

(Reporting by Martina Fuchs, Editing by Mark Trevelyan)

Robert Hobbs (CEO) and Kristian Johansen (CFO) will present the results at 08:30 CET the
same morning at Shippingklubben located at Haakon VII’s gt 1 in Oslo, Norway. The
presentation is open to the public. The presentation can be followed live on the
internet at www.tgsnopec.com http://www.tgsnopec.com/ streamed by Webcast Norge.

The slides from the presentation will also be available in PDF format at both the TGS
and Oslo Stock Exchange websites and a recorded version of the presentation will be
available shortly thereafter at www.tgsnopec.com.

CEO Robert Hobbs and CFO Kristian Johansen will also host a conference call on 5 August
2010 at 14:00 CET (8:00 AM New York time). Norwegian attendees are invited to call +47
2316 2190 or 800 19640, International attendees are invited to call 44 (0)20 7806 1951
or 0800 028 1243 and USA attendees are invited to call +1 718 354 1387 or 866 935 4575.
Attendees may want to call 5-10 minutes before 14:00 CET (8:00 AM NY) to ensure
registration and access.

Participants will need to quote the following confirmation code when dialing into the
conference: 4690410.

A Q&A session will follow a short introduction, based upon the presentation issued in
the morning. To pose a question, please press *1.

A replay of the conference call will be available shortly after. To access replay of TGS
conference call,

* dial +47 2100 0498 (Norway), +44 (0)20 7111 1244 (International) or +1 347 366 9565
(USA)
* replay access code 4690410 followed by # (pound-sign)

A replay of the conference call will also be available at www.tgsnopec.com
http://www.tgsnopec.com/ .

Company summary

TGS-NOPEC Geophysical Company (TGS) provides global geoscience data products and
services to the oil and gas industry for the exploration and delineation of hydrocarbon
reserves. We design and acquire multi-client data projects worldwide that make up our
data library of seismic, gravity/magnetic and well data, enhanced by our seismic imaging
technology and regional interpretation expertise. Visit TGS online at www.tgsnopec.com
http://www.tgsnopec.com/ .

Forward-looking statements and contact information

All statements in this press release other than statements of historical fact are
forward-looking statements, which are subject to a number of risks, uncertainties and
assumptions that are difficult to predict, and are based upon assumptions as to future
events that may not prove accurate. These factors include TGS’ reliance on a cyclical
industry and principal customers, TGS’ ability to continue to expand markets for
licensing of data, and TGS’ ability to acquire and process data products at costs
commensurate with profitability. Actual results may differ materially from those
expected or projected in the forward-looking statements. TGS undertakes no
responsibility or obligation to update or alter forward-looking statements for any
reason.

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).

For additional information about this news release please contact:

Kristian Johansen
Chief Financial Officer
Office: +47 667 69931
Cell: +47 47 60 33 34
Email: kristian.johansen@tgsnopec.com mailto:kristian.johansen@tgsnopec.com

Karen El-Tawil
VP, Business Development
Office: +1 713 860 2102
Cell: +1 713 806 2420
Email: karen.el-tawil@tgsnopec.com mailto:karen.el-tawil@tgsnopec.com

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian
Securities Trading Act)

The quarterly result was affected by a 32% increase in liquids prices
measured in NOK, a 6% increase in equity production and a 12% decrease in
gas prices measured in NOK. Also impairments, loss on derivatives and a
provision for an onerous contract influenced net operating income.

Adjusted earnings in the second quarter 2010 were NOK 36.4 billion, up 25%
from second quarter 2009 when adjusted earnings were NOK 29.2 billion.

Net income in the second quarter of 2010 was NOK 3.1 billion. This result
reflects higher oil prices and increased liftings, lower net financial
losses and lower tax rates partly offset by lower gas prices,
impairments, losses on derivatives and an onerous contract compared to
the second quarter of 2009, when net income was zero and the tax rate
unusually high.

Adjusted earnings after tax were NOK 10.6 billion in the second quarter of
2010, up 21% from second quarter 2009 when adjusted earnings after tax
were NOK 8.8 billion. Adjusted earnings after tax excludes the effect of
financial items and the tax on net financial items, and represents an
effective adjusted tax rate of 71% in the second quarter of 2010 and 70%
in the second quarter of 2009.

“Statoil’s second quarter is characterised by strong operational
performance and a high activity level,” says Statoil’s Chief Executive
Officer Helge Lund.

“We are making good progress on important projects. The Gjoa production
platform is now anchored at the field in the North Sea. The Gudrun
development was approved by the Norwegian Parliament in June, and key
contracts have now been awarded. In Brazil, the Peregrino field
development is moving forward and we have agreed to bring in Sinochem as
a 40% partner in the project,” says Lund.

“Statoil’s production is on track. Equity production is up 6% compared to
second quarter last year. However, planned maintenance turnarounds will
heavily impact production in the third quarter,” says Statoil’s CEO Helge
Lund.

Highlights since first quarter 2010:

* Equity production is up 6%
from second quarter 2009 to 1,957 mboe per day. For the first six months
of the year, equity production is 2,029 mboe per day.

* Entitlement production is up 2% from second quarter last year to 1,765
mboe per day.

* Average prices measured in NOK are up 32% for liquids and down 12% for
gas compared to second quarter last year. Gas prices continue to be low
in a historical perspective.

* On 19 May pressure change and loss of drilling fluid occurred in the C-
06 well at Gullfaks C, causing production on Gullfaks C, Gimle and Tordis
to be shut down. Production on Gullfaks and Gimle was resumed 14 July,
and Tordis will be back on stream after a planned pipeline operation,
which started on 20 July.

* On 21 May Statoil announced its agreement with the Sinochem Group to
sell 40% of the Peregrino field offshore Brazil.

* On 27 May a six months drilling moratorium was imposed in the Gulf of
Mexico.

* On 16 June the Norwegian Parliament (Stortinget) approved the plan for
development and operation (PDO) for Gudrun.

* On 1 July the Agbami equity determination process was completed
increasing Statoil’s share in the Nigerian field from 18.85% to 20.21%.

Further information from:

Investor relations
Lars Troen Sorensen, senior vice president investor relations,
+ 47 90 64 91 44
(mobile)
Morten Sven Johannessen, vice president investor relations USA,
+ 1 203 570 2524 (mobile)

Press
Ola Morten Aanestad, vice president for media relations,
+ 47 480 80 212
(mobile)

This information is subject of the disclosure requirements acc. to
Section 5- 12 vphl (Norwegian Securities Trading Act)

[HUG#1434644]

Financial statements and review 2nd quarter 2010:

http://hugin.info/132799/R/1434644/380201.pdf

Presentation 2nd quarter 2010:

http://hugin.info/132799/R/1434644/380203.pdf

Press release complete version 2nd quarter 2010:

http://hugin.info/132799/R/1434644/380199.pdf

This announcement is
distributed by Thomson Reuters on behalf of Thomson Reuters clients. The
owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other
applicable laws; and

(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Statoil via Thomson Reuters ONE

Copyright 2010, Market Wire, All rights reserved.

The maker of nails, screws and plates to fix broken bones posted an 11.2 percent rise in first-half net profit to $424.6 million, largely in line with the average estimate in a Reuters poll.[ID:nLDE66L1HF]

“The company does not expect the challenging and dynamic market environment to change in the short-term,” the group said in a statement.

Synthes, which also makes artificial spine discs, expects revenue growth of 5 to 10 percent in local currencies in the second half and the group said it was seeking to reverse the sales drop in its spine unit in North America.

Second-quarter sales rose 6.9 percent in local currencies to $892.2 million in the second quarter.

The company said its gross profit margin slipped to 82.4 percent in the first six months of the year from 83.1 percent in the year-ago period.

Synthes, like peers Stryker (SYK.N), Boston Scientific Corp (BSX.N) and Zimmer (ZMH.N), is facing increased pricing pressures for medical devices as global budgetary measures prompt hospitals to find ways to slash costs.[ID:nN22258939]

The orthopaedic sector has also come under pressure as many patients have decided to defer elective surgical procedures that require out-of-pocket payments. (Reporting by Katie Reid and Oliver Hirt)

Sarasin, which was able to attract new client funds in the credit crisis while larger rival UBS (UBSN.VX)(UBS.N) struggled, said its net new money was 6.4 billion Swiss francs ($6 billion) in the first half of 2010, higher than the 4.8 billion francs it attracted in the same period a year earlier.

“The proportion of undeclared assets deposited with the bank is negligible, which gives us significant advantages in the mid-term,” Chairman Christoph Ammann said in a statement as the company released first-half results.

“No matter what happens on the regulatory front, we are striving for being rid of any undeclared client assets by the end of 2012.”

The bank posted on Thursday first-half net profit of 60.1 million francs including minority interests after choppy markets led to a drop in trading income and as costs rose moderately.

Analysts had forecast a net of 69.8 million francs in a Reuters poll.

Parent company Rabobank’s [RABN.UL] AAA rating helped Sarasin attract client money during the financial crisis while many nervous investors were fleeing shakier rivals.

The specialised wealth manager’s competitors include EFG International (EFGN.S), which reported a large first half loss hit by impairment charges on Wednesday, and Vontobel (VONN.S), due to publish results on Aug. 11.

CCH, the world’s second-largest bottler of Coca-Cola (KO.N) soft drinks, posted comparable net profit of 172 million euros ($223.8 million) from 193.5 million in the same period last year, versus an average forecast of 177.9 million in a Reuters poll. (Reporting by Angeliki Koutantou)

Technicolor (Euronext Paris : FR0010918292 ; NYSE : TCH) today announced
that it has signed a memorandum of understanding with Verizon to become
one of Verizon’s suppliers to provide its next-generation FiOS broadband
home routers. These routers aim to enhance the experience of residential
customers served by its advanced fiber-to-the-home access network.

Technicolor’s broadband routers, designed and built to Verizon’s exacting
specifications, will accelerate data transmissions over in-home coaxial
wiring, further bolstering Verizon’s fiber-to-the-home access network. The
new broadband home routers will be ready for deployment in the 2011
timeframe.

Verizon FiOS provides unmatched bandwidth capacity with very low latency
to deliver very fast broadband over an all-fiber-optic network straight
to the home, delivering unsurpassed performance and reliability and a
triple play offer of voice, high-speed Internet and TV service. As of the
end of second-quarter 2010, the FiOS network passed 15.9 million premises
and had 3.8 million FiOS Internet and 3.2 million FiOS TV customers.

Technicolor and Verizon are currently negotiating a final three-year,
strategic agreement. Under this agreement, Technicolor will provide FiOS
broadband home routers and will collaborate with Verizon on new
technologies to enable Verizon customers to access and enjoy the most
powerful communications and media experiences.

“With this announcement, Technicolor is entering the U.S. market for its
world leading portfolio of gateway products,” said Vince Pizzica, Head of
Digital Delivery at Technicolor. “Our strategy has always been to develop
products which leverage broadband communications for service providers,
while relying on open standards to ensure simple and secure
implementation. This alliance with Verizon is a compelling validation of
that strategy, and we look forward to working together with Verizon over
the next three years and beyond, as it is one of the world’s most
pioneering communication providers.”

“The innovative FiOS network has changed the technology and entertainment
landscape by delivering customer satisfaction levels exceeding those of
cable competitors. These broadband home routers will enhance our already
unrivaled access network and enhance the overall FiOS experience,” said
Dick Lynch, Chief Technology Officer of Verizon Communications. “With
Technicolor, we have forged an alliance that will further support our
effort to provide our customers the most robust in-home entertainment
experience with products that are simple to use and exceedingly reliable.”

***

Technicolor is a company listed on NYSE Euronext Paris and NYSE stock
exchanges, and this press release contains certain statements that
constitute “forward-looking statements” within the meaning of the “safe
harbor” of the U.S. Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on management’s current expectations
and beliefs and are subject to a number of risks and uncertainties that
could cause actual results to differ materially from the future results
expressed, forecasted or implied by such forward-looking statements. For a
more complete list and description of such risks and uncertainties, refer
to Technicolor’s filings with the U.S. Securities and Exchange Commission
and its filings with the French Autorite des marches financiers.

***

About Technicolor

With more than 95 years of experience in entertainment innovation,
Technicolor serves an international base of entertainment, software, and
gaming customers. The company is a leading provider of production,
postproduction, and distribution services to content creators and
distributors. Technicolor is one of the world’s largest film processors;
one of the largest independent manufacturers and distributors of DVDs
(including Blu-ray Disc); and a leading global supplier of set-top boxes
and gateways. The company also operates an Intellectual Property and
Licensing business.

For more information: www.technicolor.com

Press contacts:

Technicolor Press Office

+33 1 41 86 53 93

technicolorpressoffice@technicolor.com

Bill Kula, APR

Verizon

972-718-6924

william.kula@verizon.com

Technicolor Investor relations: +33 1 41 86 55 95

investor.relations@technicolor.com

Technicolor Shareholder relations:

shareholder@technicolor.com

Technicolor Industry Analyst Relations: +33 1 41 86 59 39

industryanalystrelations@technicolor.com

This information is provided by HUGIN

Copyright 2010, Market Wire, All rights reserved.

Use these links to watch the video interview in the format of your choice:

Flash Player:

http://www.eurobusinessmedia.com/interviewFlash.php?id_article=556

Windows Media Player:

http://www.eurobusinessmedia.com/interviewWmp.php?id_article=556

Use this link to read the interview transcript:

http://www.eurobusinessmedia.com/transcript.php?id_article=556

Topics covered in the interview include:

* Comments on H1 earnings
* Trends in Digital
* Margin guidance
* Razorfish integration
* Cost savings
* Recruitments
* Use of cash
* Acquisitions in China
* Outlook for H2 and 2011

About Publicis Groupe:

Publicis Groupe [Euronext Paris: FR0000130577] is the world’s third largest
communications group. It ranks as the world`s second largest media counsel and
buying group, and is the first global network in digital and healthcare
communications. With activities spanning 104 countries on five continents, the
Groupe employs approximately 45,500 professionals. Publicis Groupe offers local
and international clients a complete range of advertising services through three
global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, two
multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty, as well as New
York-based Kaplan Thaler Group. Media consultancy and buying is offered through
the two first ranked worldwide networks, Starcom MediaVest Group and
ZenithOptimedia; and interactive and digital marketing led by the two first
ranked Digitas and Razorfish networks. Publicis Groupe launched VivaKi to
leverage the combined scale of the autonomous operations of Digitas, Denuo,
Razorfish, Starcom MediaVest Group and ZenithOptimedia to develop new services,
tools, and next generation digital platforms. Publicis Groupe`s specialized
agencies and marketing services offer healthcare communications with Publicis
Healthcare Communications Group (PHCG, the first network in healthcare
communications), sustainability communications and multicultural communications.
With MS&LGroup, one of the world’s top three PR and Events networks, expertise
ranges from corporate and financial communications to public relations and
public affairs, branding, social media marketing and events, sports marketing
and events.

Company finance web site: www.publicisgroupe.com

Publicis Groupe
Investors Relations:
Martine Hue, + 33 (0)1 44 43 65 00
or
External Communications:
Peggy Nahmany, + 33 (0)1 44 43 72 83

Copyright Business Wire 2010

Economists said downgrades could follow from other ratings agencies on one of Asia’s most promising emerging markets, where the move which was widely expected.

Vietnam’s sovereign dollar bonds due in 2020 VN048365868= fell a point to 109.50 cents on the dollar. Its credit default swaps (CDS) were not traded, traders said. [ID:nTOE66S04B]. There was no immediate reaction in the local currency market.

Vietnam’s external finance position had yet to stabilise despite additional foreign exchange reserves, Fitch sovereign analyst Ai Ling Ngiam said. Vietnam was also suffering from a highly dollarised economy and a weak banking system, Ngiam added.

“Vietnam’s track record of stop-go policy tightening and easing has been ad-hoc, reactive and inconsistent,” Ngiam said.

Fitch’s last downgrade of Vietnam was on June 29, 2009, when it knocked the country’s local currency rating to BB- from BB.

The new rating is now four notches below investment grade. It also puts Vietnam three steps below Indonesia and two under the Philippines, countries seen as its investment peers in Southeast Asia.

Fitch expects Vietnam’s government deficit to remain high and added the country’s public debt situation, a traditional area of strength, had also deteriorated.

Matt Hildebrandt, an economist at JP Morgan in Singapore, said the rating came at a time of some improvement for Vietnam in terms of inflation, the budget deficit and foreign exchange reserves, but said the downgrade was justified.

“I think the issue is even if things are getting better do you fundamentally think it should be rated where it is, and I think the answer they came up with was: no. I think the downgrade is warranted,” he said.

Vietnam’s sovereign five-year credit default swaps VNGV5YUSAC=R have signalled that the market considered Vietnam significantly risker than Indonesia or the Philippines, and on Thursday Vietnam’s CDSs were quoted about 60-70 basis points higher than those of the other two.

Rival agencies Moody’s and Standard & Poor’s both have a negative outlook on Vietnam’s rating.

Moody’s has rated Vietnam Ba3, while S&P has a BB rating on the Southeast Asian country, three and two notches below investment grade respectively. (Additional reporting by Umesh Desai in Hong Kong; Editing by Jason Szep)

Sources told Reuters late on Wednesday that Sanofi plans to make a formal offer of up to $18.7 billion, or $70 per share, for U.S. biotech Genzyme (GENZ.O) as it seeks to replenish its drug pipeline and make up for the loss of patent protection on blockbuster drugs in the years through 2013. [ID:nN28226612]

Quarterly earnings beat the average outcome of a Reuters poll on all fronts as Sanofi tightened spending, and as sales were driven by its diabetes division, emerging markets and consumer health.

Business net income rose 7.6 percent to 2.478 billion euros ($3.22 billion) versus the poll’s average of 2.32 billion euros. Earnings per share climbed 8 percent to 1.90 euros versus the poll’s 1.78 euros.

Sales increased 4.6 percent to 7.783 billion euros even as competition grew from generic copies of bloodthinner Plavix and cancer drug Eloxatin, and as vaccine sales declined.

The U.S. health regulator’s approval of a generic to bloodthinner Lovenox led Sanofi last week to cut its earnings per share forecast to between stable and 4 percent lower at constant exchange rates from 2-5 percent growth against 2009.

For 2013, Sanofi expects sales to be at least at 2008′s level of 27.57 billion euros, and business net income to be similar to the 2008 level of 7.314 billion euros.

Those forecasts take into account the arrival of a Lovenox copy as well as government healthcare spending cuts, and exclude acquisitions above 1 billion euros, like consumer health company Chattem and a stake in Merial animal health that Sanofi did not already own.

Sanofi expected cost savings, including on R&D, to exceed 1 billion euros at constant exchange rates this year from the 2008 level and compared with a 2013 savings goal of 2 billion euros.

MUM ON MERGERS

In its earnings statement on Thursday, Sanofi did not comment on its acquisition strategy for which CEO Chris Viehbacher has set a limit of 15 billion euros, though never entirely dismissing a bigger deal.

Last year, Sanofi invested 6.6 billion euros on 33 new partnerships and acquisitions and has said it would do a similar number of deals this year to further branch out its business and address unmet medical needs.

A bigger move could be on the cards, however, as more than a fifth of Sanofi’s 2008 drug sales — excluding a generic Lovenox — face patent expiries to 2013, and its drug portfolio can’t offset that loss.

Sanofi’s net debt rose to 6.17 billion euros in the first half from 4.14 billion euros at end-2009, while net cash from operating activities stood at 4.2 billion euros.

Sanofi shares closed 0.6 percent higher at 45.43 euros on Wednesday. The stock is down about 17.5 percent so far this year, underperforming a 1.9 percent dip in the DJ health index .SXDP.

Hyundai executive vice president Lee Won-hee said the world’s No.5 car maker along with its affiliate Kia Motors Corp (000270.KS) saw sales growth in China slowing down slightly in the second half, although it would still be strong.

Hyundai expects to maintain strong growth with new models and is likely to exceed its business targets, Lee told investors. (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)

Over the past year, the group has expanded mining, which offers higher margins than its traditional smelting operations, buying mines or stakes in them in the United States, Peru and Greenland.

Nyrstar said on Thursday zinc production from its own mines was expected to reach 25 percent of zinc metal production by 2012.

Underlying EBITDA (earnings before interest, tax, depreciation and amortisation) tripled year-on-year to 93 million euros ($121 million). A Reuters poll of 7 banks and brokerages found an average forecast of 89.4 million euros.

With its Balen smelter back to full capacity, Nyrstar said first-half zinc market metal production rose 22 percent year-on-year to 530,000 tonnes.

A severe downturn in the construction and automotive markets at the end of 2008 and in 2009 led to lower demand for zinc and prices as low as some $1,100 per tonne, forcing Nyrstar to halt production at the Balen smelter and cut it at other plants.

Zinc is used to galvanise steel to protect against corrosion.

“Whilst in the short term markets are expected to remain volatile, the fundamental medium to long term outlook for zinc and other resources is strong, Chief Executive Roland Junck said in a statement.”

Zinc futures MZN3 ended 2009 at around $2,580 per tonne, and are currently trading at around $1,955.

A stronger US dollar also helped the group report higher profits. Nyrstar’s earnings are largely denominated in dollars, whereas a substantial part of operating costs are denominated in euros.

Nyrstar said it was on track to cut annual costs by 75 million euros by the end of 2010, compared with 2008 levels. ($1=.7684 euro) (Reporting by Antonia van de Velde, Editing by Ben Deighton)

The company, which designs and tests chips, said it had experienced its highest ever quarterly sales and its market had yet to reach its peak.

“Ramping up production output so much faster than anticipated was a substantial challenge,” Chief Executive Francoise Chombar said in a statement on Thursday.

Melexis said net income for the second quarter was 12.1 million euros ($15.75 million), beating 8.50 million expected by four analysts polled by Reuters.

It said revenue for the quarter was 55.8 million euros, beating 49.6 million expected in the poll.

When it announced its first quarter results in April it forecast that revenues would rise by over a third. [ID:nLDE63K13Z] (Reporting by Ben Deighton; Editing by Mike Nesbit) ($1=.7684 euro)

The French group, which specialises in three-dimensional modelling software for clients including Boeing (BA.N), now expects 2010 non-IFRS earnings per share of between 2.25 to 2.35 euros, up from 2.19 to 2.28. A weakening euro had pushed it to hike earnings forecasts when it reported first-quarter results.

The firm on Thursday reported a 24 percent rise in non-IFRS second-quarter revenue, to 385.6 million euros ($501.8 million), as well as an 82 percent rise in earnings per share, to 0.40 euros per share.

“Dassault Systemes had a very solid second quarter, with sales above the high end of our revenue target,” Dassault Systemes Chief Executive Bernard Charles said, citing new partnerships with Michelin (MICP.PA) and the aquisition of search specialist Exalead in June.

Dassault Systemes, which has a market value of 6.1 billion euros, has seen its shares rise 29.7 percent so far this year, buoyed by a resurgence in business spending on technology after the crisis.

(Reporting by Lionel Laurent, editing by Geert De Clercq)

((lionel.laurent@thomsonreuters.com; +33 1 49 49 56 85; Reuters Messaging: lionel.laurent.reuters.com@reuters.net))

($1=.7684 Euro) Keywords: DASSAULT SYSTEMES/

(C) Reuters 2010. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nLDE66R2IK

The main TAIEX share index .TWII ended up 14.18 points at
7,798.99, lifted by a 7 percent jump in HTC.

U.S.-based Sprint Nextel (S.N) said on Wednesday it lost
fewer valuable contact customers in the second quarter than
analysts expected, helped by its most advanced smartphone, the
EVO from HTC. [ID:nN28190638]

Heavyweight TSMC (2330.TW) reported a record quarterly profit
after the close of the market [ID:nTPV001793].

The company said Aegis had offered A$1.20 per share including options and performance rights.

Mitchell shares were earlier placed in a trading halt as Britain’s Daily Telegraph newspaper flagged the deal. The stock last traded at A$1.04. (Reporting by Michael Smith; Editing by Balazs Koranyi)

Publicis’ outperformance in the first half was fueled largely by a return to growth in nearly all regions, including the U.S., Europe, Asia, and Latin America, as well as by its digital business, the company said.

“The growth came from both new business and existing clients raising their ad spending,” Publicis CEO Maurice Levy told journalists. “We really have the feeling of being at the end of economic crisis, or even having put it completely behind us.”

Publicis, which competes with WPP (WPP.L) and Omnicom Group Inc. (OMC.N), posted first-half revenues of 2.54 billion euros and operating profit of 369 million euros, and had an operating margin of 14.5 percent.

The results exceeded analysts’ expectations of revenue of 2.44 billion euros, operating profit of 326 million euros, and a 13.4 percent operating margin.

Publicis’ strong performance comes after some of the world’s big advertising groups have sounded optimistic notes about the economic recovery lately as blue-chip companies boost their ad spending.

Omnicom posted better-then-expected results last week with CEO John Wren saying growth had returned to the U.S., Middle East, Asia, and Latin America, although Europe remained sluggish. [ID:nN16117713] [ID:nLDE65O1BB]

Analysts at ZenithOptimedia recently upped their forecast for worldwide advertising market growth from 2.2 to 3.5 percent this year.

“Of our 30 biggest clients, the vast majority of them have increased their ad budgets and are doing more business with us than before,” said Levy.

The group also signed new business contracts worth 2.1 billion euros in the first half.

Levy said the situation led Publicis to raise its full-year guidance for organic growth from 3 percent to at least 3.5 percent.

He also said Publicis hoped to exceed the 15 percent operating margin it achieved last year, a change from its earlier target of meeting last year’s level. [ID:nLDE65O1UT]

Levy added that concerns remained over Europe’s sovereign debt crisis and the prospects for the U.S. economy, but that he felt that Publicis would reach its raised targets nevertheless.

“There are indications that the market could slow, and I take them into account,” he said. “But even in a slowing market Publicis will do better than what we have announced till now.”

(Additional reporting by Cyril Altmeyer, editing by Geert De Clercq)

Dong Fangxiao had to return her women’s gymnastics team bronze medal from the 2000 Sydney Olympics earlier this year following an International Olympic Committee (IOC) probe.

Chinese sports officials promised that tighter checks introduced after the scandal would eradicate the problem.

China’s delegation chief for next month’s Youth Olympic Games in Singapore said the country had adopted a zero tolerance policy toward potential cheats.

“We’ve scrutinized every athlete’s age for the Youth Olympic Games to make sure there is no one going to Singapore with a fake age,” Cai Zhenhua told Thursday’s China Daily.

“We have to make our Chinese delegation very clean and transparent. This is for the benefit of the athletes and the fair play spirit of the Olympics.”

The inaugural Youth Olympics in Singapore begin on August 14 and showcases potential future senior Olympic athletes aged from 14 to 18.

Stringent documentation checks on China’s 70-strong squad have been carried out in addition to X-ray bone analysis on the team’s under-16s, Cai added.

Suspicions of age-faking have dogged Chinese sport for years.

Dong registered different ages at Sydney and the 2008 Beijing Games, where she served as a technical official.

Her five team mates — Yang Yun, Liu Xuan, Ling Jie, Huang Mandan, Kui Yuanyuan — also lost their medals.

At the 2008 Beijing Olympics, China’s He Kexin, a women’s team and uneven bars gold medalist, was also investigated but subsequently passed as eligible.

(Reporting by Alastair Himmer in Tokyo. Editing by Peter Rutherford)

* Q2 EBIT 40.5 mln euros vs 36 mln avg in Reuters poll

* Q2 revenues 545 mln euros vs 519 mln avg in poll

* Repeats expects demand to develop favourably this year

* Sees higher underlying profit in 2010

According to financial bookmakers, Britain’s FTSE 100 .FTSE was expected
to open 6 to 11 points lower, Germany’s DAX .GDAXI was seen opening almost
flat and France’s CAC 40 .FCHI was expected to fall 9 to 14 points.

U.S. stocks fell on Wednesday after weak durable goods figures and a
downbeat assessment of the economy from the Fed’s Beige Book kept the benchmark
S&P 500 trapped below its 200-day moving average.

“U.S. economic data remains something of a concern for equity traders across
the globe with both the Fed’s beige book and the durable goods order numbers
released yesterday adding to the ongoing theme of disappointment here,” said Ben
Potter, research analyst at IG Markets.

“With August around the corner and Europe slowing down for the summer, it’s
all too easy to start thinking that an air of indifference may be about to grip
the markets.”

The FTSEurofirst 300 .FTEU3 index of top European shares closed 0.3
percent lower at 1,050.88 points on Wednesday, after rising by as much as 0.7
percent in early trade. In Asia, Tokyo’s Nikkei fell 0.4 percent on Thursday.

———————-MARKET SNAPSHOT AT 0510 GMT———————-

LAST PCT CHG NET CHG

S&P 500 .SPX 1,106.13 -0.69 % -7.71

NIKKEI .N225 9,711.31 -0.43 % -41.96

MSCI ASIA EX-JP .MIASJ0000PUS 486.79 -0.05 % -0.24

EUR/USD EUR= 1.3011 0.19 % 0.0025

USD/JPY JPY= 87.18 -0.18 % -0.1600

10-YR US TSY YLD US10YT=RR 2.989 — -0.01

10-YR BUND YLD EU10YT=RR 2.728 — -0.02

SPOT GOLD XAU= $1,165.60 0.26 % $3.05

US CRUDE CLc1 $77.08 0.12 % 0.09

———————————————————————–

* GLOBAL MARKETS-Asia shares retreat from highs, dollar dips [ID:nTOE66S007]

* Wall St ends lower after weak durable goods orders data [ID:nN28215774]

* Nikkei falls 0.5 pct after rally; Panasonic drops [ID:nTOE66S02I]

* FOREX-Euro dips vs yen on Japan exporter selling [ID:nTOE66S034]

* TREASURIES-Firm in Asia after strong auction [ID:nTOE66S02F]

* Oil steady near $77 after sharp U.S. inventory gain [ID:nSGE66S06Z]

* PRECIOUS-Gold regains strength on dollar; ETF drops [ID:nSGE66S00S]

* METALS-Copper inches lower as economic uncertainties weigh [ID:nTOE66S02T]

(Reporting by Atul Prakash; Editing by Jon Loades-Carter)

Himart has chosen Daewoo Securities to manage the IPO, the
proceeds of which are likely to be used to pay off debts owed by
its parent firm Eugene Corp (023410.KQ), the official, who
declined to be named because of the sensitivity of the issue,
said.

Himart, founded in 1987, operates 281 stores in the country.
In its 2009 financial year the company had a a net loss of 37.2
billion won.

Eugene Corp has an 80 percent stake in Himart. Himart CEO Sun
Jong-koo has a 19 percent shareholding, a March regulatory filing
showed.

For a factbox on South Korea’s IPO market, click on
[ID:nTOE62U02Z]

Use these links to watch the video interview in the format of your choice:

Flash Player:

http://www.eurobusinessmedia.com/interviewFlash.php?id_article=555

Windows Media Player:

http://www.eurobusinessmedia.com/interviewWmp.php?id_article=555

Use this link to read the interview transcript:

http://www.eurobusinessmedia.com/transcript.php?id_article=555

Topics covered in the interview include:

– Group performance
– Diabetes
– Consumer Health Care
– Oncology
– Emerging Markets
– Merial-Intervet
– Lovenox
– R&D
– Pricing
– External growth

About sanofi-aventis:

Sanofi-aventis, a leading global diversified healthcare company, discovers,
develops and distributes therapeutic solutions to improve the lives of everyone.
Sanofi-aventis is listed in Paris (EURONEXT : SAN) and in New York (NYSE : SNY).

Company website: http://en.sanofi-aventis.com/home.asp

Sanofi-aventis
Investor Relations :
IR@sanofi-aventis.com
or
Media Relations :
MR@sanofi-aventis.com

Copyright Business Wire 2010

Legrand (Paris:LR) indicates that its half-year financial report as of June 30,
2010 is available as from today, at:

http://www.legrandgroup.com/EN/

ABOUT LEGRAND

Legrand is the global specialist in electrical and digital building
infrastructures. Its comprehensive offering of solutions for use in commercial,
industrial and residential markets makes it a benchmark for customers worldwide.
Innovation for a steady flow of new products with high added value is a prime
vector for growth. Legrand reported sales of €3.6 billion in 2009. The company
is listed on Euronext and is a component stock of indexes including the SBF120.
FTSE4Good, MSCI World and ASPI (ISIN code FR0010307819). www.legrandgroup.com

Investor Relations:
Legrand
François Poisson
Tel : +33 (0)1 49 72 53 53
Fax : +33 (0)1 43 60 54 92
E-mail : francois.poisson@legrand.fr
or
Press Relation:
Publicis Consultants
Antoine Denry
Tel : +33 1 57 32 85 87
Fax : +33 (0)1 57 32 85 84
E-mail : Antoine.Denry@consultants.publicis.fr
or
Anne-Catherine Hehl
Tel : +33 (0)1 57 32 86 33
Fax : +33 (0)1 57 32 85 84
E-mail : Anne-Catherine.Hehl@consultants.publicis.fr

Copyright Business Wire 2010

Cliquer sur le lien ci-dessous pour visionner l`interview au format de votre
choix:

Flash Player:

http://www.eurobusinessmedia.com/interviewFlash.php?id_article=554

Windows Media Player:

http://www.eurobusinessmedia.com/interviewWmp.php?id_article=554

Cliquer sur le lien ci-dessous pour lire la transcription de l`interview:

http://www.eurobusinessmedia.com/transcript.php?id_article=554

Au sommaire de l`interview:

– Performance du Groupe
– Diabète
– Santé Grand Public
– Oncologie
– Marchés Emergents
– Merial-Intervet
– Lovenox
– R&D
– Prix
– Croissance externe

A propos de sanofi-aventis :

Sanofi-aventis est un leader global de la santé qui recherche, développe et
diffuse des solutions thérapeutiques pour améliorer la vie de chacun. Le Groupe
est coté en bourse à Paris (EURONEXT : SAN) et à New York (NYSE : SNY).

Site web de la société: http://www.sanofi-aventis.com/accueil.asp

Sanofi-aventis
Contact Investisseurs :
IR@sanofi-aventis.com
ou
Contact Médias :
MR@sanofi-aventis.com

Copyright Business Wire 2010

Legrand (Paris:LR) indicates that its half-year financial report as of June 30,
2010 is available as from today, at:

http://www.legrandgroup.com/EN/

ABOUT LEGRAND

Legrand is the global specialist in electrical and digital building
infrastructures. Its comprehensive offering of solutions for use in commercial,
industrial and residential markets makes it a benchmark for customers worldwide.
Innovation for a steady flow of new products with high added value is a prime
vector for growth. Legrand reported sales of €3.6 billion in 2009. The company
is listed on Euronext and is a component stock of indexes including the SBF120.
FTSE4Good, MSCI World and ASPI (ISIN code FR0010307819). www.legrandgroup.com

Investor Relations:
Legrand
François Poisson
Tel : +33 (0)1 49 72 53 53
Fax : +33 (0)1 43 60 54 92
E-mail : francois.poisson@legrand.fr
or
Press Relation:
Publicis Consultants
Antoine Denry
Tel : +33 1 57 32 85 87
Fax : +33 (0)1 57 32 85 84
E-mail : Antoine.Denry@consultants.publicis.fr
or
Anne-Catherine Hehl
Tel : +33 (0)1 57 32 86 33
Fax : +33 (0)1 57 32 85 84
E-mail : Anne-Catherine.Hehl@consultants.publicis.fr

Copyright Business Wire 2010

Dong Fangxiao had to return her women’s gymnastics team bronze medal from the 2000 Sydney Olympics earlier this year following an International Olympic Committee (IOC) probe.

Chinese sports officials promised that tighter checks introduced after the scandal would eradicate the problem.

China’s delegation chief for next month’s Youth Olympic Games in Singapore said the country had adopted a zero tolerance policy towards potential cheats.

“We’ve scrutinised every athlete’s age for the Youth Olympic Games to make sure there is no one going to Singapore with a fake age,” Cai Zhenhua told Thursday’s China Daily.

“We have to make our Chinese delegation very clean and transparent. This is for the benefit of the athletes and the fair play spirit of the Olympics.”

The inaugural Youth Olympics in Singapore begin on Aug. 14 and showcases potential future senior Olympic athletes aged from 14 to 18.

Stringent documentation checks on China’s 70-strong squad have been carried out in addition to X-ray bone analysis on the team’s under-16s, Cai added.

Suspicions of age-faking have dogged Chinese sport for years.

Dong registered different ages at Sydney and the 2008 Beijing Games, where she served as a technical official.

Her five team mates — Yang Yun, Liu Xuan, Ling Jie, Huang Mandan, Kui Yuanyuan — also lost their medals.

At the 2008 Beijing Olympics, China’s He Kexin, a women’s team and uneven bars gold medallist, was also investigated but subsequently passed as eligible.

(Reporting by Alastair Himmer in Tokyo. Editing by Peter Rutherford. To query or comment on this story email sportsfeedback@thomsonreuters.com)

PARIS, July 29, 2010 /PRNewswire-FirstCall/ –

Second quarter 2010
(EUR million)

– Revenue 1,376 (+21.3%)
– Organic growth +7.1%

First half 2010
(EUR million)

– Revenue 2,538 (+14.9%)
– Organic growth +5.3%
– Operating margin 369 (+28.6%)
– Operating margin rate 14.5%
– Net income (Group share) 213 (+27.5%)
– Free Cash Flow (1) 277 (+42%)
– Headline diluted EPS (2) 1.00 euro (+12%)
– Debt/equity ratio 0.20

(1) Before changes in WCR

(2) After elimination of impairment, amortization of intangibles arising on acquisitions and the tax credit arising on the deferred tax liability on the Oceane 2014 convertible bond.

Maurice Levy, Chairman and Chief Executive Officer of Publicis Groupe declares:

“With organic growth of 7.1% for the second quarter of 2010 and 5.3% for the half-year, an operating margin of 14.5% and net income up by 27.5%, Publicis Groupe has once again given proof of its energy and ability to create value, even in the aftermath of the worst global economic crisis in many years.

This growth is the result of a strategy that has been effectively executed over a number of years. We were quick to take the digital route, gaining a decisive lead over our competitors and providing clients with the best and most innovative solutions for the new landscape being shaped by the explosion of digital technology.

We also opted for expansion in emerging markets. The economic crisis may have slowed the pace of their growth, but ZenithOptimedia’s latest estimates for 2011 and 2012 bode well for strong growth.

The challenges our clients face demand from us greater inventiveness, creativity and innovation, and relentless operational efforts to ensure that they win whatever the circumstances. I would like to thank them for their confidence, and to pay tribute to the hard work of all our teams who have performed wonders within the constraints of strict cost controls, enabling Publicis Groupe to emerge stronger than ever from the crisis.

Tight cost containment since end 2008 and strong growth in revenue have boosted operating margin to an impressive 14.5%, despite the fact that Razorfish is still in the integration phase with a margin that, while improving, is still well below average for the Groupe.

Without lapsing into the euphoria that these half-year results for our Groupe might warrant, I remain firmly convinced that Publicis Groupe will succeed in outperforming the market in terms of both growth and margin.”

At its meeting on July 28, 2010, chaired by Mrs. Elisabeth Badinter, the
Supervisory Board of Publicis Groupe examined the first half results for 2010
presented by Mr. Maurice Levy, Chairman and Chief Executive Officer of
Publicis Groupe.
Key figures

EUR million, except for 1st half 2010 1st half 2009 2010/2009
percentages and
per-share data (EUR)

Income statement data
Revenue 2,538 2,209 14.9%
Operating margin before
depreciation and amortization 422 333 26.7%
As % of revenue 16.6% 15.1%
Operating margin 369 287 28.6%
As % of revenue 14.5% 13.0%
Operating income 353 257 37.4%
Net income attributable to Publicis
Groupe 213 167 27.5%

Earnings per share (1) 1.04 0.83 25.3%

Diluted earnings per share (2) 0.95 0.82 15.8%

Balance sheet data June 30, 2010 June 30, 2009
Total assets 14,458 11,408
Shareholders’ equity 3,090 2,418

(1) The average number of shares used to calculate earnings per share was 204.5 million for 1st Half 2010 and 200.8 million for 1st Half 2009.

(2) The average number of shares used to calculate diluted earnings per share was 237.1 million for 1st Half 2010 and 206.3 million for 1st Half 2009. This includes stock options, free shares, equity warrants and convertible bonds with a dilutive effect on EPS. For the first six months of 2010, the instruments that diluted EPS were the Oceane convertible bonds, equity warrants, free shares and certain tranches of stock options with a strike price below the average price over the period.

Analysis of key figures

I. First half 2010 activity

The global economy rallied over the first half of 2010. After forecasting a 0.9% increase in 2010 global advertising expenditure in its December 2009 forecast, ZenithOptimedia upgraded its forecast in April this year to 2.2% growth and upped its latest estimate yet again, on July 19, to 3.5%. This steady improvement in growth forecasts is most encouraging.

As the advertising market recovered, Publicis Groupe posted an increase of 14.9% in reported revenue for the first half and organic growth of +5.3%.

Second quarter revenue was up by 21.3% and organic growth rose to 7.1%.

Revenue in first half 2010

Consolidated revenue for the first half of 2010 was EUR 2,538 million compared to EUR 2,209 million for the first half of 2009, an increase of 14.9% (exchange rate impact was positive at EUR 55 million).

Organic growth was 5.3%.

First half growth reflects the strong recovery in advertising expenditure after the record slump triggered by the 2009 economic crisis. The larger networks, in particular Leo Burnett and Publicis Worldwide along with VivaKi, made the most of the upturn, and digital activities maintained their strong growth trend.

The breakdown of consolidated revenue for the first half of 2010 is as follows: 33% from advertising, 20% from media and 47% from specialized agencies and marketing services (including digital activities).

Breakdown of first half 2010 revenue by region

(EUR million) Revenue Organic Growth
1st half 2010 1st half 2009

Europe 805 738 +3.1%
North America 1,258 1,061 +6.6%
Asia-Pacific 286 238 +6.0%
Latin America 126 109 +10.8%
Africa and Middle East 63 63 -3.3%

Total 2,538 2,209 +5.3%

Almost all the regions, Europe included, saw a return to growth, with the exception of Africa and the Middle East, which is still suffering from Dubai’s financial crisis.

North America continues to enjoy good growth. Organic growth for the USA was 7.2%, fuelled by strong growth from all the agencies and significant contributions from the healthcare and digital activities, the latter accounting for 42.5% of the region’s revenue.

The Asia Pacific region is growing again, thanks largely to India and Korea.

Every country in Latin America except Chile reported growth.

Expressed in US dollars, first half revenue was USD 3,362 million, an increase of 14.3%.

Revenue in 2nd quarter 2010

Consolidated second quarter 2010 revenue was EUR 1,376 million, an increase of 21.3% on the figure of EUR 1,134 million for the corresponding period in 2009 (the exchange rate impact was positive at EUR 73 million).

Organic growth was +7.1% in the second quarter, a significant improvement on first quarter organic growth of +3.1%.

The second quarter undoubtedly benefited from a low basis of comparison, but the marked upswing in advertising business seen in the first quarter was also maintained.

Growth was also fuelled by new business wins in 2009 and by an increase in advertising spending by major clients.

– Breakdown of 2nd quarter 2010 revenue by region

(EUR million) Revenue Organic Growth
2nd quarter 2nd quarter
2010 2009

Europe 437 381 +7.3%
North America 679 535 +8.1%
Asia-Pacific 154 123 +5.3%
Latin America 71 58 +11.5%
Africa and Middle East 35 37 -10.4%

Total 1,376 1,134 +7.1%

Europe performed well in the second quarter. Only Africa and the Middle East posted negative figures.

Operating margin and operating income

Operating margin before depreciation and amortization was EUR 422 million in first half 2010, up 26.7% from EUR 333 million for the first half of 2009.

Operating margin was EUR 369 million compared with EUR 287 million for the same period in 2009, an increase of 28.6%.

Operating margin rate for the first half of the year was 14.5%, up from 13% for the same period in 2009. This reflects the significant upturn in activity as compared with first half 2009, and continued tight control over costs. The effects of measures taken in 2009, particularly with regard to containing personnel costs, are beginning to be felt.

Operating income for first half 2010 was EUR 353 million compared to EUR 257 million for the corresponding period in 2009, an increase of 37.4%.

Net income

Net income attributable to the Group was EUR 213 million, an increase of 27.5% on the net income of EUR 167 million reported for the first half of 2009.

Net income includes a net financial expense of EUR 42 million and a tax charge of EUR 89 million for the half-year.

Free Cash Flow

The Groupe’s free cash flow, excluding changes in WCR, was up sharply (+42% on the corresponding period of 2009) at EUR 277 million. The increase is directly linked to the increase in operating margin before depreciation and amortization.

Net financial debt at June 30, 2010

Net financial debt was EUR 618 million at June 30, 2010 compared to 899 EUR million at June 30, 2009. This figure includes the impact of the partial buyback of Publicis Groupe shares held by SEP Badinter-Dentsu at a cost of EUR 217.5 EUR million. Net financial debt at December 30, 2009 was EUR 313 million, the raise observed at June 30,2010 reflecting the usual seasonal effect.

The Groupe’s average net debt for the first half of 2010 was EUR 673 million, down sharply on the figures of EUR 1, 002 million for first half 2009 and EUR 929 million for the full year 2009.

The Groupe’s available liquidity position at June 30, 2010 was EUR 3.6 billion.

Shareholders’ equity at June 30, 2010

Consolidated shareholders’ including minority interests was EUR 3,111 million at June 30, 2010, compared with EUR 2,838 million at December 31, 2009. This includes the impact of allocation of 2009 income (dividends of EUR 107 million distributed).

The debt/equity ratio thus rose from 0.14 at December 31, 2009 to 0.20 at June 30, 2010.

II. NETWORKS

The upturn in advertising markets over the course of the first half of the year is benefiting all the Groupe’s networks. The growing contribution from digital activities, up to 28.1% of first half revenue compared with 20.7% (at 2010 exchange rate) for the first half of 2009, once again confirms the Groupe’s strategic decision to help its clients keep pace with a changing consumer landscape and the new digital audience. Digital activities are now making their way into every one of the Groupe’s networks, bringing the benefits of expertise and new ideas in virtually every area of digital operations, be it search, display, or the social and mobile networks made possible by the creation of the VivaKi Nerve Center (and at the same time avoiding duplication of investments).

III. COST CONTROL

The Groupe continues to exercise tight control over its costs. Cost optimization programs are the focus of unrelenting attention and are ongoing. The deployment of shared service centers, initiated some years ago, continues, as does the process of regionalization. The “Americas” platform, designed to serve the entire continent, is scheduled to go fully operational at the end of this year. The rollout (first local and subsequently global) of ERP, made possible by the integration of most agencies into shared service centers and the adoption of shared processes, continues. The Group expects to achieve a significant reduction in its operating costs from this investment, through global harmonization of processes and systems as from 2012.

Thanks to a solid balance sheet and improved cost control, the Groupe is well placed to meet market needs and sharpen its competitive edge.

IV. New BUSINESS: USD 2.1 BILLION IN NET wins

Publicis Groupe took in USD 2.1 billion in net new business in the first half of 2010, clear testimony to the attractiveness of its products and services (see Appendix for list).

V. ACQUISITIONS

Publicis Groupe has embarked on a process of securing long-term growth by ramping up its engagement in digital activities and emerging economies, both of which are growth drivers for the communications sector today and in the future.

A significant number of targets have been identified, with special interest focusing on the opportunities offered by China.

On March 30, Publicis Groupe announced it had acquired a minority stake in Taterka Comunicacoes (Taterka), an advertising agency based in Sao Paulo, Brazil.

On April 6, 2010, the Groupe acquired Canadian agency In-Sync. Founded in 1989, the Toronto-based agency operates in the health and wellness space, specializing in market research consultancy and offering innovative marketing solutions to its biopharma clients.

At the end of April, Publicis Groupe bought out the minority interests in W&K and holds now 100% of the capital of this Chinese agency, now rebranded Leo Burnett Beijing Communications Co., Ltd.

On May 19, 2010, Publicis Groupe acquired Resolute Communications Ltd. Founded in 2002, Resolute Communications provides healthcare communications programs spanning strategic consulting, medical education, and media and public relations. Resolute is headquartered in London with an office in New York. Resolute will be merged with Publicis Life Brands in London to form a new entity renamed Publicis Life Brands Resolute, that will further entrench Publicis Healthcare Communications Group (PHCG) as a leader in the United Kingdom.

VI. FINANCE

January 2010 saw the early redemption of some of the outstanding 2018 Oceane convertible bonds. According to the 2018 Oceane prospectus, any holder was entitled to request early redemption of all or part of its Oceane bonds at the early redemption price of EUR 45.19 per bond. At the early redemption date, i.e. January 18, 2010, a total of 617,985 Oceane bonds were repaid early for a total amount of EUR 28 million.

The number of Oceane bonds subsequently outstanding is 2,624,538, representing 14.9% of the number initially issued (17,624,521).

Furthermore, in view of the authorization granted by the Combined Annual General Meeting of the shareholders on June 9, 2009, Publicis Groupe SA entered into an agreement on January 8, 2010, with an authorized intermediary, with a view to purchasing 2.7 million Publicis Groupe shares. This authorization was granted for a period of eighteen months from June 9, 2009, i.e. until December 8, 2010. To date, 2,482,440 shares have been purchased under this program.

On May 10, 2010 Publicis Groupe purchased from Dentsu Inc. a block of 7,500,000 of its own shares, held by SEP Dentsu-Badinter, to be cancelled. The total price paid for the block was EUR 217.5 million, equivalent to EUR 29 per share. The shares were immediately cancelled.

VII. RECENT EVENTS

Acquisitions

On July 12, 2010, Publicis Groupe announced its acquisition of G4, a Beijing-based advertising agency. Launched in 2009, G4 offers integrated communications solutions, including advertising, design and strategic consulting, to Nestle in China. G4 has rebranded as Publicis G4 and will join forces with the Publicis Beijing Nestle team. Concentrating all the skills and resources dedicated to Nestle within Publicis G4 will provide an enhanced service to this key customer throughout Greater China and the Asia region.

New Business

New business maintained its dynamic pace at the beginning of second half 2010 after total gains of USD 1 billion for the second quarter.

VIII. Outlook

For the second time in succession, ZenithOptimedia has upgraded its forecasts of growth in global advertising expenditure for 2010, most recently to 3.5% growth. These significantly higher forecasts confirm the upturn in the market, after a year of record decline in global advertising expenditure in 2009.

Publicis Groupe’s growth rates for the first two quarters of 2010 are a mark of excellent performance and testimony to its judicious strategic choices, with digital activities continuing to expand across all the Groupe’s networks and creating the right conditions for innovation and value creation. Emerging economies are returning to growth rates more commensurate with their level of development and opening up new prospects for the Groupe.

These two cornerstones offer assurances of growth both now and in the future.

Investments in talent and in digital activities are still very much ongoing, made possible by strict cost control and a sound financial situation.

With many emerging economies, China in particular, returning to high growth, a recovering US economy (although flat since May), and certain European countries (including France and the UK) holding up well, Publicis Groupe confirms its target of outperforming the market on growth for full year 2010.

“This document contains forward-looking statements. The use of the words “aim(s),” “expect(s),” “feel(s),” “will,” “may,” “believe(s),” “anticipate(s)” and similar expressions in this press release are intended to identify those statements as forward looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than in connection with applicable securities laws, Publicis Groupe undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. Publicis Groupe urges you to review and consider the various disclosures it made concerning the factors that may affect its business carefully, including the disclosures made to the French financial authority (AMF)”

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world’s third largest communications group. In addition, it is ranked as the world’s second largest media counsel and buying group, and is the first global network in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 46,000 professionals. Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty, as well as New York-based Kaplan Thaler Group. Media consultancy and buying is offered through the two first ranked worldwide networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and digital marketing led by the two first ranked Digitas and Razorfish networks. Publicis Groupe launched VivaKi to leverage the combined scale of the autonomous operations of Digitas, Denuo, Razorfish, Starcom MediaVest Group and ZenithOptimedia to develop new services, tools, and next generation digital platforms. Publicis Groupe’s specialized agencies and marketing services offer healthcare communications with Publicis Healthcare Communications Group (PHCG, the first network in healthcare communications), sustainability communications and multicultural communications. With MS&LGroup, one of the world’s top three PR and Events networks, expertise ranges from corporate and financial communications to public relations and public affairs, branding, social media marketing and events, sports marketing and events.

Web site: http://www.publicisgroupe.com
Appendices
New Business – 1st Half 2010
USD 2.1 billion (net)
Key wins
Digitas

Electronic Arts (Brazil), Topper (Brazil), CA (USA), Goodyear (USA), Aflac (USA), Sears (USA), Whitewave (USA), Olay (Hong Kong/ Taiwan), Airtel (India), Nestle (India), Renault ZE (France)

Fallon

Cadbury Flake (UK), French Connection (global), Nokia (global), The Cosmopolitan of Las Vegas. (USA), Cadillac (USA)

Leo Burnett

Chrysler (UK, Germany, Turkey), Samsung (Malaysia, Czech Republic, Thailand, Kazakhstan), COI/BIS (UK), Research in Motion- Blackberry (UK), DUFRY- duty free (Mexico), Sigma Alimentos (Mexico), Koleston (Colombia), Nestle (Guatemala), Sanofi-Aventis (Guatemala), Canon (Thailand), Amway (China), Siemens (China), Merrill Lynch (Korea), British Council (Sri Lanka), BMW (Malaysia), Pilipinas Shell (Philippines), Arla Food (Russia), Nycomed (Latvia), The ITI Group (Poland), Altıparmak (Turkey), El-Bi Electrics (Turkey), Turkcell (Turkey), Ulker (Turkey), Delipapier Sofidel (France), Campero (Guatemala, Salvador), V-Inspired (UK), Cemex (Costa Rica), World Gold Council (Turkey), Dubai International Film Festival, Tele2 (Kazakhstan), Fiat (Mexico), Cipher Lab (Taiwan)

MS&L Group

What’s on (India), World Gold Council (China), Central agency for national insurance (France), National Defense Ministry (France), Klepierre Segece (France), Pernod Ricard (France), RapidShare (Germany), Apoteket (Sweden)

Publicis Worldwide

Dolce Gusto (France, USA), Chrysler (Canada), City of Toronto (Canada), Metro (Canada), Siemens Energy (Germany, Asia), Telefonica / Movistar (Spain), Sky News / Online project (UK), Cafe do Brasil (Italy), Orogel (Italy), J.K. Helene Curtis (India), Reserve Bank of India / VIP Bags (India), SCMP Classified Post (Hong Kong), Le Monde (France), Ricola (France), Descamps (France), Carte d’Or (France), Cyrillus (France), GT Land Plaza (China), La Halle (France), Aeroports de la Cote d’Azur (France), Nestle / Dairy Culinary (Mexico), Bupa (UK), Concha y Toro / VCT (Brazil), Hamburger / Financial (Germany), Bud Light (Canada), Beefeater Gin (UK), Randstad (UK), Belle Avenue (Thailand), Black Canyon (Thailand), Wellcome / Social business (Germany), Emirates Airlines (Netherlands), Stivoro / Anti-smoking campaign (Netherlands), Musee du Louvre (France), Losc / Lille Football Club (France), Hammerson (France), Shanghai World Expo’s / Information & communication pavilion account, Virgin Mobile (Australia), City of Dreams / Digital account (Hong Kong), Indigo Books / Largest Canadian book retailer, (Canada), Hasbro (Canada), Canadian Olympic Foundation (Canada), Fiat / Punto Evo / International launch in Spain, Portugal, Netherlands, Belgium, Ireland, Poland ( France), BNP Paribas / Investment Partners (Netherlands), Nestle Maggi (Malaysia)

Saatchi & Saatchi

Arla Foods – Lurpak (Global except for UK), BNP Paribas (Poland), Red.es digital TV (Spain), Chrysler & Dodge SUV (China), Vinda (China), Carlsberg: Dali, Wusu, XiXia (China), Petrobras (Brazil), Sanitarium (New Zealand), Toyota (Italy)

Starcom MediaVest Group

Honda (Germany, Italy, Norway, Poland, Sweeden, UK), CBS Film (USA), Turner (USA), Napa Auto Parts (USA), Nintendo (Netherlands), Dutch Government (Netherlands), Van Haren (Netherlands), Silesia Voivodship (Poland), Ministry of Environment (Poland), Skyways (Sweeden), FEW Online Retail (Sweeden), Prudential Direct Insurance (Taiwan), Coca-Cola (France), Mitre 10 (Australia), Mars Wrigley (China), in.gr (Greece), General Mills (China), Supermac’s (Ireland), AIB (Ireland), IKKS (Netherlands), Provident (Poland), Aflac (USA), Avon (USA), Kraft/Cadbury (global), American Egg Board (USA)

The Kaplan Thaler group

Aflac (USA)

ZenithOptimedia

Aviva (global), Reckitt Benckiser (global), Beijing Tourism Board, China Merchant Bank, Maoduoli (China), Electrolux (Vietnam), Georgia Pacific (Romania), Vivartia (Romania), BN Telecom (Turkey), Dyo (Turkey), Pegasus Airlines (Turkey), SAB Miller (Ecuador), Axtel (Mexico), Lindt (United Arab Emirates), Catalonian Government (Spain), Ministry of Environment (Spain), Perfume Shop (UK), Remington Consumer Products (USA), Beijing Lan Hai Cold Mineral Water (China), Warner Bros (Singapore), Universal Pictures (Mexico), Hubei Mobile (China), Reckitt Benckiser (China), AS Watson (APAC)

Glossary

Operating margin rate: operating margin/revenue.

Average half-year net debt: half-year average of average monthly net debt.

Free cash flow: cash flow from operations minus capital expenditures for tangible and intangible fixed assets, excluding acquisitions.

Net new business: this figure is derived not from financial reporting but from estimated media-marketing budgets based on annual business (net of losses) from new and existing clients.

For further information, please visit our website: http://www.finance.publicisgroupe.com

2010 Press Releases

08/01/10 Share repurchase program

11/01/10 Partnership between the Women’s Forum and Terrafemina

18/01/10 OCEANES 2018 – early redemption

05/02/10 Lov Group and Publicis Groupe in exclusive negotiations

17/02/10 2009 Annual Results

16/03/10 Management Board bonuses

30/03/10 Publicis Groupe acquires a minority stake of Brazilian agency
Taterka Comunicacoes

06/04/10 Publicis Groupe Acquires In-Sync Healthcare Agency

22/04/10 Publicis Groupe: First Quarter 2010 Revenue – Back to Growth

26/04/10 Re-Elections at the Publicis Groupe Supervisory Board

29/04/10 Publicis Groupe Acquires Remaining Capital of Leo Burnett / W&K
Beijing Advertising Co. Ltd

10/05/10 Publicis Groupe Announces its Acquisition from Dentsu Inc. of
7,500,000 of its own Shares in Order to Cancel Them

19/05/10 Publicis Groupe acquires Resolute Communications, in Healthcare
Communications

01/06/10 Publicis Groupe Annual General Shareholders’ Meeting – Dividend
set at 0.60 Euros per Share

01/06/10 Supervisory Board and Management Board of Publicis Groupe

28/06/10 Daniele Bessis Joins Publicis Groupe as CEO of Re:Sources
Worldwide

12/07/10 Publicis Groupe Acquires G4 Advertising co. Ltd. in China

For further information: http://www.publicisgroupe.com

Publicis Groupe

Consolidated financial statements – June 30, 2010 (unaudited)

Consolidated income statement

(in millions of euros) June 30, June 30, 2009
2010 2009

Revenue 2,538 2,209 4,524
Personnel expenses (1,613) (1,423) (2,812)
Other operating expenses (503) (453) (940)
Operating margin before depreciation
and amortization 422 333 772
Depreciation and amortization expense
(excluding intangibles arising on
acquisition) (53) (46) (92)
Operating margin 369 287 680
Amortization of intangibles arising on
acquisition (17) (15) (30)
Impairment – (20) (28)
Non-current income (expense) 1 5 7
Operating income 353 257 629
Interest expense (40) (34) (73)
Interest income 6 9 12
Cost of net financial debt (34) (25) (61)
Other financial income (expenses) (8) (2) (9)
Income of consolidated companies before
taxes 311 230 559
Income taxes (89) (59) (146)
Net income of consolidated companies 222 171 413
Share in net income of associates – 1 4
Net income 222 172 417
Of which:

– Net income attributable to
non-controlling interests
(Minority interests) 9 5 14
– Net income attributable to equity
holders of the parent company 213 167 403

Per share data (in euros) – Net income
attributable to equity holders of the
parent company
Number of shares 204,545,563 200,760,562 202,257,125
Net earnings per share 1.04 0.83 1.99
Number of shares – diluted 237,073,116 206,261,458 220,867,344
Net earnings per share – diluted 0.95 0.82 1.90

Consolidated statement of comprehensive income

(in millions of euros) June 30, June 30, 2009
2010 2009

Net income for the year (a) 222 172 417
Other comprehensive income
– Valuation of available-for-sale
investments at fair value (1) 4 12
– Actuarial gains and losses on defined
benefit plans (24) (16) (4)
– Translation of foreign operations 431 (12) (59)
– Deferred taxes on other comprehensive
income 7 5 1
Other comprehensive income for the period
(b) 413 (19) (50)

Total comprehensive income for the period
(a) + (b) 635 153 367
Of which:

– Comprehensive income attributable to
non-controlling interests (Minority
interests) 18 7 17
– Comprehensive income attributable to
Equity holders of the parent company 617 146 350

Consolidated balance sheet

(in millions of euros) June 30, 2010 December 31, 2009

Assets
Goodwill, net 4,416 3,928
Intangible assets, net 937 835
Property and equipment, net 480 458
Deferred tax assets 96 73
Investments in associates 42 49
Other financial assets 113 94
Non-current assets 6,084 5,437
Inventory and costs billable to clients 406 290
Accounts receivable 5,941 4,875
Other receivables and other current assets 609 548
Cash and cash equivalents 1,418 1,580
Current assets 8,374 7,293

Total Assets 14,458 12,730

Liabilities and shareholders’ equity
Share capital 76 79
Additional paid-in capital and retained earnings 3,014 2,734
Equity attributable to holders of the
parent company 3,090 2,813
Non-controlling Interests (Minority interests) 21 25
Total Equity 3,111 2,838
Long-term financial debt (more than 1 year) 1,812 1,796
Deferred tax liabilities 235 214
Long-term provisions 499 449
Non-current liabilities 2,546 2,459
Accounts payable 6,858 5,835
Short-term financial debt (less than 1 year) 227 214
Income taxes payable 75 63
Short-term provisions 105 100
Other creditors and other current liabilities 1,536 1,221
Current liabilities 8,801 7,433

Total Liabilities and Equity 14,458 12,730

Consolidated cash flow statement

(in millions of euro) June 30, June 30, 2009
2010 2009
Cash flows from operations
Net income 222 172 417
Adjustment for non-cash income and
expenses:
Income taxes 89 59 146
Cost of net financial debt 34 25 61
Capital (gains) losses on disposal
(before tax) (1) (4) (10)
Depreciation, amortization and
impairment on property and equipment and
intangible assets 70 81 150
Non-cash expenses on stock options and
similar items 15 12 24
Other non-cash income and expenses 3 5 11
Equity in net income of associates – (1) (4)

Dividends received from equity accounted
investments 11 6 9
Taxes paid (103) (86) (157)
Interest paid (36) (51) (75)
Interest received 7 10 16
Change in working capital requirements(1) (266) (495) 59
Net cash flows provided by (used in)
operating activities (I) 45 (267) 647
Cash flows from investment operations
Purchases of property and equipment and
intangible assets (35) (33) (74)
Proceeds from sale of property and
equipment and intangible assets 1 – 10
Proceeds from sale of investments and
other financial assets, net (5) 3 10
Acquisition of subsidiaries (48) (70) (298)
Divestment of subsidiaries 1 – 1
Net cash flows provided by (used in)
investment operations (II) (86) (100) (351)
Cash flows from financing operations
Capital Increase – – -
Dividends paid to parent company
shareholders – – (107)
Dividends paid to minority shareholders
of subsidiaries (14) (15) (26)
Cash received on new borrowings 13 734 744
Reimbursement of borrowings (59) (115) (108)
Net (purchases)/sales of treasury shares
and equity warrants (249) 1 5
Cash received on hedging transactions – – -
Net cash flows provided by (used in)
financing operations (III) (309) 605 508
Impact of exchange rate fluctuations (IV) 173 34 (94)
Net change in consolidated cash flows (I
+ II + III + IV) (177) 272 710
Cash and cash equivalents as of January 1, 1,580 867 867
Bank overdrafts as of January 1, (33) (30) (30)
Net cash and cash equivalents at
beginning of period 1,547 837 837
Cash and cash equivalents at end of
period 1,418 1,162 1,580
Bank overdrafts at end of period (48) (53) (33)
Net cash and cash equivalents at end of
period 1,370 1,109 1,547
Net change in cash and cash equivalents (177) 272 710
(1) Breakdown of change in working
capital requirements
Change in inventory and costs billable
to clients (73) 31 29
Change in accounts receivable and other
receivables (458) 729 160
Change in accounts payable, other
creditors and provisions 265 (1,255) (130)
Variation in working capital
requirements (266) (495) 59

Statement of changes in consolidated shareholders’ equity

Number of (in millions of Capital Additional Reserves Translation
outstanding euros) stock paid-in and reserve
shares capital retained
earnings

178,854,301 January 1, 2009 78 2,553 (105) (315)
Net income for the 167
period
Other
comprehensive
income
Valuation of
available-for-sale
investments at
fair value
Actuarial gains (11)
and losses on
defined benefit
plans
Translation of (14)
foreign operations
Total other – – (11) (14)
comprehensive
income
Total – – 156 (14)
comprehensive
income for the
period

Equity component 49
of OCEANE 2014
Dividends (107)
Share-based 12
compensation
Additional (3)
interest on Oranes
Effect of changes
in scope of
consolidation and
of commitments to
purchase minority
interests
72,910 Purchases/sales of 1
treasury shares
178,927,211 June 30, 2009 78 2,553 3 (329)

Number of (in millions Fair-value Equity Non-Controlling Total
of outstanding euros) reserve attributable Interest Equity
shares to holders (Minority
of the interests)
parent
company

178,854,301 January 1, 2009 109 2,320 30 2,350
Net income for the 167 5 172
period
Other
comprehensive
income
Valuation of 4 4 4
available-for-sale
investments at
fair value
Actuarial gains (11) (11)
and losses on
defined benefit
plans
Translation of (14) 2 (12)
foreign operations
Total other 4 (21) 2 (19)
comprehensive
income
Total 4 146 7 153
comprehensive
income for the
period

Equity component 49 49
of OCEANE 2014
Dividends (107) (15) (122)
Share-based 12 12
compensation
Additional (3) (3)
interest on Oranes
Effect of changes – 3 3
in scope of
consolidation and
of commitments to
purchase minority
interests
72,910 Purchases/sales of 1 1
treasury shares
178,927,211 June 30, 2009 113 2,418 25 2,443

Number of (in millions of Capital Additional Reserves Translation
outstanding euros) stock paid-in and reserve
shares capital retained
earnings

187,168,768 January 1, 2010 79 2,600 390 (377)
Net income 213
Other
comprehensive
income
Valuation of
available-for-sale
investments at
fair value
Actuarial gains (17)
and losses on
defined benefit
plans
Translation of 422
foreign operations
Total other – – (17) 422
comprehensive
income
Total – – 196 422
comprehensive
income for the
period

Dividends paid (107)
Share-based 19
compensation
Additional (3)
interest on Oranes
Effect of changes
in scope of
consolidation and
of commitments to
purchase minority
interests
(7,500,000) Cancellation of (3) (215)
Publics Groupe SA
shares
(807,764) Purchases/sales of (31)
treasury shares
178,861,004 June 30, 2010 76 2,385 464 45

Number of (in millions Fair-value Equity Non-Controlling Total
of outstanding euros) reserve attributable Interests Equity
shares to holders (Minority
of the interests)
parent
company

187,168,768 January 1, 2010 121 2,813 25 2,838
Net income 213 9 222
Other
comprehensive
income
Valuation of (1) (1) (1)
available-for-sale
investments at
fair value
Actuarial gains (17) (17)
and losses on
defined benefit
plans
Translation of 422 9 431
foreign operations
Total other (1) 404 9 413
comprehensive
income
Total (1) 617 18 635
comprehensive
income for the
period

Dividends paid (107) (14) (121)
Share-based 19 19
compensation
Additional (3) (3)
interest on Oranes
Effect of changes
in scope of
consolidation and
of commitments to
purchase minority
interests – (8) (8)
(7,500,000) Cancellation of (218) (218)
Publics Groupe SA
shares
(807,764) Purchases/sales of (31) (31)
treasury shares
178,861,004 June 30, 2010 120 3,090 21 3,111

Earnings per share calculation details

Earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of
earnings per share
Net income attributable to equity holders
of the parent a 213 167
Impact of dilutive instruments:
– Savings in financial expenses related
to the conversion of debt instruments,
net of tax (1) 13 2
Net income attributable to equity holders
of the parent – diluted b 226 169
Number of shares used for the calculation
of earnings per share
Average number of shares composing the
company’s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average
for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the
calculation c 204,545,563 200,760,562
Impact of dilutive instruments: (2)
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 -
– Shares resulting from the conversion of
convertible bonds (1) 28,450,700 4,455,073
Number of shares – diluted
(en euro) d 237,073,116 206,261,458

Net earnings per share a/c 1.04 0.83

Net earnings per share – diluted b/d 0.95 0.82

(1) In 2010 and 2009, both Oceane 2018 and Oceane 2014 were taken into account for the calculations (the Oceane 2014, issued in June 2009, was only included for one month for the first semester 2009).

(2) Only stock-options and equity warrants with a dilutive effect (whose exercise price is lower than the average share price for the period) are taken into consideration.

Headline earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of
headline earnings per share (1)
Net income attributable to equity holders
of the parent 213 167
Items excluded:
– Amortization of intangibles arising on
acquisition, net of tax 10 9
– Impairment, net of tax – 16
– Deferred tax asset linked to Oceane 2014(2) – (11)

Headline income attributable to equity
holders of the parent e 223 181
Impact of dilutive instruments:
– Savings in financial expenses related to
the conversion of debt instruments, net of
tax 13 2
Adjusted net income attributable to equity f
holders of the parent – diluted 236 183

Number of shares used for the calculation
of earnings per share
Average number of shares composing the
company’s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average
for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the
calculation c 204,545,563 200,760,562
Impact of dilutive instruments:
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 -
– Shares resulting from the conversion of
convertible bonds 28,450,700 4,455,073
Number of shares – diluted
(in euro) d 237,073,116 206,261,458

Headline earnings per share (1) e/c 1.09 0.90

Headline earnings per share – diluted (1) f/d 1.00 0.89

(1) Earnings per share before Amortization of intangibles from acquisitions, impairment and deferred tax assets linked to equity component of Oceane 2014.

(2) Effect of deferred tax asset recognized against deferred tax liabilities linked to equity component of Oceane 2014 recorded as equity.

SOURCE Publicis Groupe

The Supervisory Board and the Executive Board would like to take the opportunity to
thank Mr Jager for more than five years of service on the Supervisory Board. As Chairman
of the Board he contributed greatly to the discussions and decision-making of the
Supervisory Board, provided advice to the Executive Board and showed leadership when
this was required in more difficult times.

Mr Koffrie became a member of Wessanen’s Supervisory Board in 2001. In February 2009 he
stepped down to become interim-CEO of Wessanen, which position he held until 1 June of
this year when he was succeeded by Piet Hein Merckens. Per that same date Mr Koffrie was
re-appointed member of the Supervisory Board for a final term of four years. In
appointing him Chairman of the Supervisory Board, Wessanen does not follow the best
practice provision in the Dutch Corporate Governance Code which provides that the
chairman of a supervisory board may not be a former member of the executive board of the
company. The reasons for not applying this provision are that Mr Koffrie served as CEO
of the Company for a relatively brief period only and that his extensive experience in
leading large international companies makes him an excellent candidate to take up the
chair.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (TSM.N) said on Thursday it earned a net profit of T$40.3 billion ($1.3 billion) in April-June versus T$24.44 billion a year ago and well above a consensus forecast of T$35.2 billion from Thomson Reuters I/B/E/S.

The figure surpassed the previous record quarterly result of T$34.485 set in the fourth quarter of 2007.

TSMC and local rival UMC (2303.TW), No.2 chip foundry, are riding on a consumer boom, winning more orders from foreign clients who are selling more powerful chips for PCs, cell phones and other consumer products such as Apple’s (AAPL.O) iPad.

Analysts say TSMC’s profit could peak in the third quarter, the busiest sales season, before it starts to fall in the fourth. Technology demand typically slows after the pre-Christmas buying boom.

Investors are more focused on oversupply and weaker chip prices as they look beyond the strong second quarter.

So far this year, TSMC shares have fallen 2 percent while UMC shares were down 16 percent, against a 5 percent rise on Taiwan’s main TAIEX share index .TWII in the same period.

UMC’s quarterly results are due on Aug. 4. ($1=T$32) (Reporting by Baker Li, Editing by Lincoln Feast)

The quarterly result was affected by a 32% increase in liquids prices measured in NOK, a
6% increase in equity production and a 12% decrease in gas prices measured in NOK. Also
impairments, loss on derivatives and a provision for an onerous contract influenced net
operating income.

Adjusted earnings in the second quarter 2010 were NOK 36.4 billion, up 25% from second
quarter 2009 when adjusted earnings were NOK 29.2 billion.

Net income in the second quarter of 2010 was NOK 3.1 billion. This result reflects
higher oil prices and increased liftings, lower net financial losses and lower tax rates
partly offset by lower gas prices, impairments, losses on derivatives and an onerous
contract compared to the second quarter of 2009, when net income was zero and the tax
rate unusually high.

Adjusted earnings after tax were NOK 10.6 billion in the second quarter of 2010, up 21%
from second quarter 2009 when adjusted earnings after tax were NOK 8.8 billion. Adjusted
earnings after tax excludes the effect of financial items and the tax on net financial
items, and represents an effective adjusted tax rate of 71% in the second quarter of
2010 and 70% in the second quarter of 2009.

“Statoil’s second quarter is characterised by strong operational performance and a high
activity level,” says Statoil’s Chief Executive Officer Helge Lund.

“We are making good progress on important projects. The Gjøa production platform is now
anchored at the field in the North Sea. The Gudrun development was approved by the
Norwegian Parliament in June, and key contracts have now been awarded. In Brazil, the
Peregrino field development is moving forward and we have agreed to bring in Sinochem as
a 40% partner in the project,” says Lund.

“Statoil’s production is on track. Equity production is up 6% compared to second quarter
last year. However, planned maintenance turnarounds will heavily impact production in
the third quarter,” says Statoil’s CEO Helge Lund.

Highlights since first quarter 2010:

* Equity production is up 6% from second quarter 2009 to 1,957 mboe per day. For the
first six months of the year, equity production is 2,029 mboe per day.
* Entitlement production is up 2% from second quarter last year to 1,765 mboe per day.
* Average prices measured in NOK are up 32% for liquids and down 12% for gas compared to
second quarter last year. Gas prices continue to be low in a historical perspective.
* On 19 May pressure change and loss of drilling fluid occurred in the C-06 well at
Gullfaks C, causing production on Gullfaks C, Gimle and Tordis to be shut down.
Production on Gullfaks and Gimle was resumed 14 July, and Tordis will be back on stream
after a planned pipeline operation, which started on 20 July.
* On 21 May Statoil announced its agreement with the Sinochem Group to sell 40% of the
Peregrino field offshore Brazil.
* On 27 May a six months drilling moratorium was imposed in the Gulf of Mexico.
* On 16 June the Norwegian Parliament (Stortinget) approved the plan for development and
operation (PDO) for Gudrun.
* On 1 July the Agbami equity determination process was completed increasing Statoil’s
share in the Nigerian field from 18.85% to 20.21%.

Further information from:

Investor relations
Lars Troen Sørensen, senior vice president investor relations, + 47 90 64 91 44 (mobile)
Morten Sven Johannessen, vice president investor relations USA, + 1 203 570 2524
(mobile)

Press
Ola Morten Aanestad, vice president for media relations, + 47 480 80 212 (mobile)

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian
Securities Trading Act)

PARIS–(Business Wire)–
Regulatory News:

Second quarter 2010 (EUR million)

* Revenue1,376 (+21.3%)
* Organic growth+7.1%

First half 2010 (EUR million)

* Revenue2,538 (+14.9%)
* Organic growth+5.3%
* Operating margin369 (+28.6%)
* Operating margin rate14.5%
* Net income (Group share) 213 (+27.5%)
* Free Cash Flow (1)277(+42%)
* Headline diluted EPS (2) 1.00 euro (+12%)
* Debt/equity ratio0.20

(1)Before changes in WCR

(2)After elimination of impairment, amortization of intangibles arising on
acquisitions and the tax credit arising on the deferred tax liability on the
Oceane 2014 convertible bond.

Maurice Lévy, Chairman and Chief Executive Officer of Publicis Groupe declares:

“With organic growth of 7.1% for the second quarter of 2010 and 5.3% for the
half-year, an operating margin of 14.5% and net income up by 27.5%, Publicis
Groupe has once again given proof of its energy and ability to create value,
even in the aftermath of the worst global economic crisis in many years.

This growth is the result of a strategy that has been effectively executed over
a number of years. We were quick to take the digital route, gaining a decisive
lead over our competitors and providing clients with the best and most
innovative solutions for the new landscape being shaped by the explosion of
digital technology.

We also opted for expansion in emerging markets. The economic crisis may have
slowed the pace of their growth, but ZenithOptimedia`s latest estimates for 2011
and 2012 bode well for strong growth.

The challenges our clients face demand from us greater inventiveness, creativity
and innovation, and relentless operational efforts to ensure that they win
whatever the circumstances. I would like to thank them for their confidence, and
to pay tribute to the hard work of all our teams who have performed wonders
within the constraints of strict cost controls, enabling Publicis Groupe to
emerge stronger than ever from the crisis.

Tight cost containment since end 2008 and strong growth in revenue have boosted
operating margin to an impressive 14.5%, despite the fact that Razorfish is
still in the integration phase with a margin that, while improving, is still
well below average for the Groupe.

Without lapsing into the euphoria that these half-year results for our Groupe
might warrant, I remain firmly convinced that Publicis Groupe will succeed in
outperforming the market in terms of both growth and margin.”

***

At its meeting on July 28, 2010, chaired by Ms. Elisabeth Badinter, the
Supervisory Board of Publicis Groupe (Paris:PUB) examined the first half results
for 2010 presented by Mr. Maurice Lévy, Chairman and Chief Executive Officer of
Publicis Groupe.

Key figures

EUR million, except for percentages and per-share data (EUR) 1st half 2010 1st half 2009 2010/2009
Income statement data
Revenue 2,538 2,209 14.9%
Operating margin before depreciation and amortization 422 333 26.7%
As % of revenue 16.6% 15.1%
Operating margin 369 287 28.6%
As % of revenue 14.5% 13.0%
Operating income 353 257 37.4%
Net income attributable to Publicis Groupe 213 167 27.5%
Earnings per share (1) 1.04 0.83 25.3%
Diluted earnings per share (2) 0.95 0.82 15.8%
Balance sheet data June 30, 2010 June 30, 2009
Total assets 14,458 11,408
Shareholders` equity 3,090 2,418

(1)The average number of shares used to calculate earnings per share was 204.5
million for 1st Half 2010 and 200.8 million for 1st Half 2009.

(2)The average number of shares used to calculate diluted earnings per share was
237.1 million for 1st Half 2010 and 206.3 million for 1st Half 2009. This
includes stock options, free shares, equity warrants and convertible bonds with
a dilutive effect on EPS. For the first six months of 2010, the instruments that
diluted EPS were the Oceane convertible bonds, equity warrants, free shares and
certain tranches of stock options with a strike price below the average price
over the period.

Analysis of key figures

I.First half 2010 activity

The global economy rallied over the first half of 2010. After forecasting a 0.9%
increase in 2010 global advertising expenditure in its December 2009 forecast,
ZenithOptimedia upgraded its forecast in April this year to 2.2% growth and
upped its latest estimate yet again, on July 19, to 3.5%. This steady
improvement in growth forecasts is most encouraging.

As the advertising market recovered, Publicis Groupe posted an increase of 14.9%
in reported revenue for the first half and organic growth of +5.3%.

Second quarter revenue was up by 21.3% and organic growth rose to 7.1%.

* Revenue in first half 2010

Consolidated revenue for the first half of 2010 was EUR 2,538 million compared
to EUR 2,209 million for the first half of 2009, an increase of 14.9% (exchange
rate impact was positive at EUR 55 million).

Organic growth was 5.3%.

First half growth reflects the strong recovery in advertising expenditure after
the record slump triggered by the 2009 economic crisis. The larger networks, in
particular Leo Burnett and Publicis Worldwide along with VivaKi, made the most
of the upturn, and digital activities maintained their strong growth trend.

The breakdown of consolidated revenue for the first half of 2010 is as follows:
33% from advertising, 20% from media and 47% from specialized agencies and
marketing services (including digital activities).

- Breakdown of first half 2010 revenue by region

(EUR million) Revenue Organic Growth
1st half 2010 1st half 2009
Europe 805 738 +3.1%
North America 1,258 1,061 +6.6%
Asia-Pacific 286 238 +6.0%
Latin America 126 109 +10.8%
Africa and Middle East 63 63 -3.3%
Total 2,538 2,209 +5.3%

Almost all the regions, Europe included, saw a return to growth, with the
exception of Africa and the Middle East, which is still suffering from Dubai`s
financial crisis.

North America continues to enjoy good growth. Organic growth for the USA was
7.2%, fuelled by strong growth from all the agencies and significant
contributions from the healthcare and digital activities, the latter accounting
for 42.5% of the region`s revenue.

The Asia Pacific region is growing again, thanks largely to India and Korea.

Every country in Latin America except Chile reported growth.

Expressed in US dollars, first half revenue was USD 3,362 million, an increase
of 14.3%.

* Revenue in 2nd quarter 2010

Consolidated second quarter 2010 revenue was EUR 1,376 million, an increase of
21.3% on the figure of EUR 1,134 million for the corresponding period in 2009
(the exchange rate impact was positive at EUR 73 million).

Organic growth was +7.1% in the second quarter, a significant improvement on
first quarter organic growth of +3.1%.

The second quarter undoubtedly benefited from a low basis of comparison, but the
marked upswing in advertising business seen in the first quarter was also
maintained.

Growth was also fuelled by new business wins in 2009 and by an increase in
advertising spending by major clients.

- Breakdown of 2nd quarter 2010 revenue by region

(EUR million) Revenue Organic Growth
2nd quarter 2010 2nd quarter 2009
Europe 437 381 +7.3%
North America 679 535 +8.1%
Asia-Pacific 154 123 +5.3%
Latin America 71 58 +11.5%
Africa and Middle East 35 37 -10.4%
Total 1,376 1,134 +7.1%

Europe performed well in the second quarter. Only Africa and the Middle East
posted negative figures.

Operating margin and operating income

Operating margin before depreciation and amortization was EUR 422 million in
first half 2010, up 26.7% from EUR 333 million for the first half of 2009.

Operating margin was EUR 369 million compared with EUR 287 million for the same
period in 2009, an increase of 28.6%.

Operating margin rate for the first half of the year was 14.5%, up from 13% for
the same period in 2009. This reflects the significant upturn in activity as
compared with first half 2009, and continued tight control over costs. The
effects of measures taken in 2009, particularly with regard to containing
personnel costs, are beginning to be felt.

Operating income for first half 2010 was EUR 353 million compared to EUR 257
million for the corresponding period in 2009, an increase of 37.4%.

Net income

Net income attributable to the Group was EUR 213 million, an increase of 27.5%
on the net income of EUR 167 million reported for the first half of 2009.

Net income includes a net financial expense of EUR 42 million and a tax charge
of EUR 89 million for the half-year.

Free Cash Flow

The Groupe`s free cash flow, excluding changes in WCR, was up sharply (+42% on
the corresponding period of 2009) at EUR 277 million. The increase is directly
linked to the increase in operating margin before depreciation and amortization.

Net financial debt at June 30, 2010

Net financial debt was EUR 618 million at June 30, 2010 compared to 899 EUR
million at June 30, 2009. This figure includes the impact of the partial buyback
of Publicis Groupe shares held by SEP Badinter-Dentsu at a cost of EUR 217.5 EUR
million. Net financial debt at December 30, 2009 was EUR 313 million, the raise
observed at June 30,2010 reflecting the usual seasonal effect.

The Groupe`s average net debt for the first half of 2010 was EUR 673 million,
down sharply on the figures of EUR 1, 002 million for first half 2009 and EUR
929 million for the full year 2009.

The Groupe`s available liquidity position at June 30, 2010 was EUR 3.6 billion.

Shareholders` equity at June 30, 2010

Consolidated shareholders` including minority interests was EUR 3,111 million at
June 30, 2010, compared with EUR 2,838 million at December 31, 2009. This
includes the impact of allocation of 2009 income (dividends of EUR 107 million
distributed).

The debt/equity ratio thus rose from 0.14 at December 31, 2009 to 0.20 at June
30, 2010.

II.NETWORKS

The upturn in advertising markets over the course of the first half of the year
is benefiting all the Groupe`s networks. The growing contribution from digital
activities, up to 28.1% of first half revenue compared with 20.7% (at 2010
exchange rate) for the first half of 2009, once again confirms the Groupe`s
strategic decision to help its clients keep pace with a changing consumer
landscape and the new digital audience. Digital activities are now making their
way into every one of the Groupe`s networks, bringing the benefits of expertise
and new ideas in virtually every area of digital operations, be it search,
display, or the social and mobile networks made possible by the creation of the
VivaKi Nerve Center (and at the same time avoiding duplication of investments).

III.COST CONTROL

The Groupe continues to exercise tight control over its costs. Cost optimization
programs are the focus of unrelenting attention and are ongoing. The deployment
of shared service centers, initiated some years ago, continues, as does the
process of regionalization. The “Americas” platform, designed to serve the
entire continent, is scheduled to go fully operational at the end of this year.
The rollout (first local and subsequently global) of ERP, made possible by the
integration of most agencies into shared service centers and the adoption of
shared processes, continues. The Group expects to achieve a significant
reduction in its operating costs from this investment, through global
harmonization of processes and systems as from 2012.

Thanks to a solid balance sheet and improved cost control, the Groupe is well
placed to meet market needs and sharpen its competitive edge.

IV.NEW BUSINESS: USD 2.1 BILLION IN NET WINS

Publicis Groupe took in USD 2.1 billion in net new business in the first half of
2010, clear testimony to the attractiveness of its products and services (see
Appendix for list).

V.ACQUISITIONS

Publicis Groupe has embarked on a process of securing long-term growth by
ramping up its engagement in digital activities and emerging economies, both of
which are growth drivers for the communications sector today and in the future.

A significant number of targets have been identified, with special interest
focusing on the opportunities offered by China.

On March 30, Publicis Groupe announced it had acquired a minority stake in
Taterka Comunicações (Taterka), an advertising agency based in São Paulo,
Brazil.

On April 6, 2010, the Groupe acquired Canadian agency In-Sync. Founded in 1989,
the Toronto-based agency operates in the health and wellness space, specializing
in market research consultancy and offering innovative marketing solutions to
its biopharma clients.

At the end of April, Publicis Groupe bought out the minority interests in W&K
and holds now 100% of the capital of this Chinese agency, now rebranded Leo
Burnett Beijing Communications Co., Ltd.

On May 19, 2010, Publicis Groupe acquired Resolute Communications Ltd. Founded
in 2002, Resolute Communications provides healthcare communications programs
spanning strategic consulting, medical education, and media and public
relations. Resolute is headquartered in London with an office in New York.
Resolute will be merged with Publicis Life Brands in London to form a new entity
renamed Publicis Life Brands Resolute, that will further entrench Publicis
Healthcare Communications Group (PHCG) as a leader in the United Kingdom.

VI.FINANCE

January 2010 saw the early redemption of some of the outstanding 2018 Oceane
convertible bonds. According to the 2018 Oceane prospectus, any holder was
entitled to request early redemption of all or part of its Oceane bonds at the
early redemption price of EUR 45.19 per bond. At the early redemption date, i.e.
January 18, 2010, a total of 617,985 Oceane bonds were repaid early for a total
amount of EUR 28 million.

The number of Oceane bonds subsequently outstanding is 2,624,538, representing
14.9% of the number initially issued (17,624,521).

Furthermore, in view of the authorization granted by the Combined Annual General
Meeting of the shareholders on June 9, 2009, Publicis Groupe SA entered into an
agreement on January 8, 2010, with an authorized intermediary, with a view to
purchasing 2.7 million Publicis Groupe shares. This authorization was granted
for a period of eighteen months from June 9, 2009, i.e. until December 8, 2010.
To date, 2,482,440 shares have been purchased under this program.

On May 10, 2010 Publicis Groupe purchased from Dentsu Inc. a block of 7,500,000
of its own shares, held by SEP Dentsu-Badinter, to be cancelled. The total price
paid for the block was EUR 217.5 million, equivalent to EUR 29 per share. The
shares were immediately cancelled.

VII.RECENT EVENTS

Acquisitions

On July 12, 2010, Publicis Groupe announced its acquisition of G4, a
Beijing-based advertising agency. Launched in 2009, G4 offers integrated
communications solutions, including advertising, design and strategic
consulting, to Nestlé in China. G4 has rebranded as Publicis G4 and will join
forces with the Publicis Beijing Nestlé team. Concentrating all the skills and
resources dedicated to Nestlé within Publicis G4 will provide an enhanced
service to this key customer throughout Greater China and the Asia region.

New Business

New business maintained its dynamic pace at the beginning of second half 2010
after total gains of USD 1 billion for the second quarter.

VIII.Outlook

For the second time in succession, ZenithOptimedia has upgraded its forecasts of
growth in global advertising expenditure for 2010, most recently to 3.5% growth.
These significantly higher forecasts confirm the upturn in the market, after a
year of record decline in global advertising expenditure in 2009.

Publicis Groupe`s growth rates for the first two quarters of 2010 are a mark of
excellent performance and testimony to its judicious strategic choices, with
digital activities continuing to expand across all the Groupe`s networks and
creating the right conditions for innovation and value creation. Emerging
economies are returning to growth rates more commensurate with their level of
development and opening up new prospects for the Groupe.

These two cornerstones offer assurances of growth both now and in the future.

Investments in talent and in digital activities are still very much ongoing,
made possible by strict cost control and a sound financial situation.

With many emerging economies, China in particular, returning to high growth, a
recovering US economy (although flat since May), and certain European countries
(including France and the UK) holding up well, Publicis Groupe confirms its
target of outperforming the market on growth for full year 2010.

***

“This document contains forward-looking statements. The use of the words
“aim(s),” “expect(s),” “feel(s),” “will,” “may,” “believe(s),” “anticipate(s)”
and similar expressions in this press release are intended to identify those
statements as forward looking. Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ materially from
those projected. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Other than in
connection with applicable securities laws, Publicis Groupe undertakes no
obligation to publish revised forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect the occurrence
of unanticipated events. Publicis Groupe urges you to review and consider the
various disclosures it made concerning the factors that may affect its business
carefully, including the disclosures made to the French financial authority
(AMF)”

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world’s third largest
communications group. In addition, it is ranked as the world`s second largest
media counsel and buying group, and is the first global network in digital and
healthcare communications. With activities spanning 104 countries on five
continents, the Groupe employs approximately 46,000 professionals. Publicis
Groupe offers local and international clients a complete range of advertising
services through three global advertising networks, Leo Burnett, Publicis,
Saatchi & Saatchi, two multi-hub networks, Fallon and 49%-owned Bartle Bogle
Hegarty, as well as New York-based Kaplan Thaler Group. Media consultancy and
buying is offered through the two first ranked worldwide networks, Starcom
MediaVest Group and ZenithOptimedia; and interactive and digital marketing led
by the two first ranked Digitas and Razorfish networks. Publicis Groupe launched
VivaKi to leverage the combined scale of the autonomous operations of Digitas,
Denuo, Razorfish, Starcom MediaVest Group and ZenithOptimedia to develop new
services, tools, and next generation digital platforms. Publicis Groupe`s
specialized agencies and marketing services offer healthcare communications with
Publicis Healthcare Communications Group (PHCG, the first network in healthcare
communications), sustainability communications and multicultural communications.
With MS&LGroup, one of the world’s top three PR and Events networks, expertise
ranges from corporate and financial communications to public relations and
public affairs, branding, social media marketing and events, sports marketing
and events.

Web site: www.publicisgroupe.com

*******

Appendices

New Business – 1st Half 2010
USD 2.1 billion (net)

KEY WINS

DIGITAS
Electronic Arts (Brazil), Topper (Brazil), CA (USA), Goodyear (USA), Aflac
(USA), Sears (USA), Whitewave (USA), Olay (Hong Kong/ Taiwan), Airtel (India),
Nestle (India), Renault ZE (France)

FALLON
Cadbury Flake (UK), French Connection (global), Nokia (global), The Cosmopolitan
of Las Vegas. (USA), Cadillac (USA)

LEO BURNETT
Chrysler (UK, Germany, Turkey), Samsung (Malaysia, Czech Republic, Thailand,
Kazakhstan), COI/BIS (UK), Research in Motion- Blackberry (UK), DUFRY- duty free
(Mexico), Sigma Alimentos (Mexico), Koleston (Colombia), Nestlé (Guatemala),
Sanofi-Aventis (Guatemala), Canon (Thailand), Amway (China), Siemens (China),
Merrill Lynch (Korea), British Council (Sri Lanka), BMW (Malaysia), Pilipinas
Shell (Philippines), Arla Food (Russia), Nycomed (Latvia), The ITI Group
(Poland), Altıparmak (Turkey), El-Bi Electrics (Turkey), Turkcell (Turkey),
Ülker (Turkey), Delipapier Sofidel (France), Campero (Guatemala, Salvador),
V-Inspired (UK), Cemex (Costa Rica), World Gold Council (Turkey), Dubai
International Film Festival, Tele2 (Kazakhstan), Fiat (Mexico), Cipher Lab
(Taiwan)

MS&L GROUP
What`s on (India), World Gold Council (China), Central agency for national
insurance (France), National Defense Ministry (France), Klépierre Ségécé
(France), Pernod Ricard (France), RapidShare (Germany), Apoteket (Sweden)

PUBLICIS WORLDWIDE
Dolce Gusto (France, USA), Chrysler (Canada), City of Toronto (Canada), Metro
(Canada), Siemens Energy (Germany, Asia), Telefonica / Movistar (Spain), Sky
News / Online project (UK), Cafè do Brasil (Italy), Orogel (Italy), J.K. Helene
Curtis (India), Reserve Bank of India / VIP Bags (India), SCMP Classified Post
(Hong Kong), Le Monde (France), Ricola (France), Descamps (France), Carte d’Or
(France), Cyrillus (France), GT Land Plaza (China), La Halle (France), Aéroports
de la Cote d’Azur (France), Nestlé / Dairy Culinary (Mexico), Bupa (UK), Concha
y Toro / VCT (Brazil), Hamburger / Financial (Germany), Bud Light (Canada),
Beefeater Gin (UK), Randstad (UK), Belle Avenue (Thailand), Black Canyon
(Thailand), Wellcome / Social business (Germany), Emirates Airlines
(Netherlands), Stivoro / Anti-smoking campaign (Netherlands), Musée du Louvre
(France), Losc / Lille Football Club (France), Hammerson (France), Shanghai
World Expo’s / Information & communication pavilion account, Virgin Mobile
(Australia), City of Dreams / Digital account (Hong Kong), Indigo Books /
Largest Canadian book retailer, (Canada), Hasbro (Canada), Canadian Olympic
Foundation (Canada), Fiat / Punto Evo / International launch in Spain, Portugal,
Netherlands, Belgium, Ireland, Poland ( France), BNP Paribas / Investment
Partners (Netherlands), Nestlé Maggi (Malaysia)

SAATCHI & SAATCHI
Arla Foods – Lurpak (Global except for UK), BNP Paribas (Poland), Red.es digital
TV (Spain), Chrysler & Dodge SUV (China), Vinda (China), Carlsberg: Dali, Wusu,
XiXia (China), Petrobras (Brazil), Sanitarium (New Zealand), Toyota (Italy)

STARCOM MEDIAVEST GROUP
Honda (Germany, Italy, Norway, Poland, Sweeden, UK), CBS Film (USA), Turner
(USA), Napa Auto Parts (USA), Nintendo (Netherlands), Dutch Government
(Netherlands), Van Haren (Netherlands), Silesia Voivodship (Poland), Ministry of
Environment (Poland), Skyways (Sweeden), FEW Online Retail (Sweeden), Prudential
Direct Insurance (Taiwan), Coca-Cola (France), Mitre 10 (Australia), Mars
Wrigley (China), in.gr (Greece), General Mills (China), Supermac’s (Ireland),
AIB (Ireland), IKKS (Netherlands), Provident (Poland), Aflac (USA), Avon (USA),
Kraft/Cadbury (global), American Egg Board (USA)

THE KAPLAN THALER GROUP
Aflac (USA)

ZENITHOPTIMEDIA
Aviva (global), Reckitt Benckiser (global), Beijing Tourism Board, China
Merchant Bank, Maoduoli (China), Electrolux (Vietnam), Georgia Pacific
(Romania), Vivartia (Romania), BN Telecom (Turkey), Dyo (Turkey), Pegasus
Airlines (Turkey), SAB Miller (Ecuador), Axtel (Mexico), Lindt (United Arab
Emirates), Catalonian Government (Spain), Ministry of Environment (Spain),
Perfume Shop (UK), Remington Consumer Products (USA), Beijing Lan Hai Cold
Mineral Water (China), Warner Bros (Singapore), Universal Pictures (Mexico),
Hubei Mobile (China), Reckitt Benckiser (China), AS Watson (APAC)

*******

Glossary

Operating margin rate: operating margin/revenue.

Average half-year net debt: half-year average of average monthly net debt.

Free cash flow: cash flow from operations minus capital expenditures for
tangible and intangible fixed assets, excluding acquisitions.

Net new business: this figure is derived not from financial reporting but from
estimated media-marketing budgets based on annual business (net of losses) from
new and existing clients.

For further information, please visit our website:
www.finance.publicisgroupe.com

*******

2010 Press Releases

08/01/10 Share repurchase program
11/01/10 Partnership between the Women`s Forum and Terrafemina
18/01/10 OCEANES 2018 – early redemption
05/02/10 Lov Group and Publicis Groupe in exclusive negotiations
17/02/10 2009 Annual Results
16/03/10 Management Board bonuses
30/03/10 Publicis Groupe acquires a minority stake of Brazilian agency Taterka Comunicações
06/04/10 Publicis Groupe Acquires In-Sync Healthcare Agency
22/04/10 Publicis Groupe: First Quarter 2010 Revenue – Back to Growth
26/04/10 Re-Elections at the Publicis Groupe Supervisory Board
29/04/10 Publicis Groupe Acquires Remaining Capital of Leo Burnett / W&K Beijing Advertising Co. Ltd
10/05/10 Publicis Groupe Announces its Acquisition from Dentsu Inc. of 7,500,000 of its own Shares in Order to Cancel Them
19/05/10 Publicis Groupe acquires Resolute Communications, in Healthcare Communications
01/06/10 Publicis Groupe Annual General Shareholders’ Meeting – Dividend set at 0.60 Euros per Share
01/06/10 Supervisory Board and Management Board of Publicis Groupe
28/06/10 Danièle Bessis Joins Publicis Groupe as CEO of Re:Sources Worldwide
12/07/10 Publicis Groupe Acquires G4 Advertising co. Ltd. in China

For further information: www.publicisgroupe.com

Publicis Groupe

Consolidated financial statements – June 30, 2010 (unaudited)

Consolidated income statement

(in millions of euros) June 30, 2010 June 30, 2009 2009
Revenue 2,538 2,209 4,524
Personnel expenses (1,613) (1,423) (2,812)
Other operating expenses (503) (453) (940)
Operating margin before depreciation and amortization 422 333 772
Depreciation and amortization expense (excluding intangibles arising on acquisition) (53) (46) (92)
Operating margin 369 287 680
Amortization of intangibles arising on acquisition (17) (15) (30)
Impairment – (20) (28)
Non-current income (expense) 1 5 7
Operating income 353 257 629
Interest expense (40) (34) (73)
Interest income 6 9 12
Cost of net financial debt (34) (25) (61)
Other financial income (expenses) (8) (2) (9)
Income of consolidated companies before taxes 311 230 559
Income taxes (89) (59) (146)
Net income of consolidated companies 222 171 413
Share in net income of associates – 1 4
Net income 222 172 417
Of which: 9 5 14
– Net income attributable to non-controlling interests
(Minority interests)
– Net income attributable to equity holders of the parent company 213 167 403

Per share data (in euros) – Net income attributable to equity holders of the parent company
Number of shares 204,545,563 200,760,562 202,257,125
Net earnings per share 1.04 0.83 1.99
Number of shares – diluted 237,073,116 206,261,458 220,867,344
Net earnings per share – diluted 0.95 0.82 1.90

Consolidated statement of comprehensive income

(in millions of euros) June 30, 2010 June 30, 2009 2009
Net income for the year (a) 222 172 417
Other comprehensive income
– Valuation of available-for-sale investments at fair value (1) 4 12
– Actuarial gains and losses on defined benefit plans (24) (16) (4)
– Translation of foreign operations 431 (12) (59)
– Deferred taxes on other comprehensive income 7 5 1
Other comprehensive income for the period (b) 413 (19) (50)

Total comprehensive income for the period (a) + (b) 635 153 367
Of which: 18 7 17

- Comprehensive income attributable to non-controlling interests
(Minority interests)
– Comprehensive income attributable to Equity holders of the parent company 617 146 350

Consolidated balance sheet

(in millions of euros) June 30, 2010 December 31, 2009
Assets
Goodwill, net 4,416 3,928
Intangible assets, net 937 835
Property and equipment, net 480 458
Deferred tax assets 96 73
Investments in associates 42 49
Other financial assets 113 94
Non-current assets 6,084 5,437
Inventory and costs billable to clients 406 290
Accounts receivable 5,941 4,875
Other receivables and other current assets 609 548
Cash and cash equivalents 1,418 1,580
Current assets 8,374 7,293

Total Assets 14 ,458 12,730

Liabilities and shareholders` equity
Share capital 76 79
Additional paid-in capital and retained earnings 3,014 2,734
Equity attributable to holders of the parent company 3,090 2,813
Non-controlling Interests (Minority interests) 21 25
Total Equity 3,111 2,838
Long-term financial debt (more than 1 year) 1,812 1,796
Deferred tax liabilities 235 214
Long-term provisions 499 449
Non-current liabilities 2,546 2,459
Accounts payable 6,858 5,835
Short-term financial debt (less than 1 year) 227 214
Income taxes payable 75 63
Short-term provisions 105 100
Other creditors and other current liabilities 1,536 1,221
Current liabilities 8,801 7,433

Total Liabilities and Equity 14,458 12,730

Consolidated cash flow statement

(in millions of euro) June 30, 2010 June 30, 2009 2009
Cash flows from operations
Net income 222 172 417
Adjustment for non-cash income and expenses:
Income taxes 89 59 146
Cost of net financial debt 34 25 61
Capital (gains) losses on disposal (before tax) (1) (4) (10)
Depreciation, amortization and impairment on property and equipment and intangible assets 70 81 150
Non-cash expenses on stock options and similar items 15 12 24
Other non-cash income and expenses 3 5 11
Equity in net income of associates – (1) (4)

Dividends received from equity accounted investments 11 6 9
Taxes paid (103) (86) (157)
Interest paid (36) (51) (75)
Interest received 7 10 16
Change in working capital requirements (1) (266) (495) 59
Net cash flows provided by (used in) operating activities (I) 45 (267) 647
Cash flows from investment operations
Purchases of property and equipment and intangible assets (35) (33) (74)
Proceeds from sale of property and equipment and intangible assets 1 – 10
Proceeds from sale of investments and other financial assets, net (5) 3 10
Acquisition of subsidiaries (48) (70) (298)
Divestment of subsidiaries 1 – 1
Net cash flows provided by (used in) investment operations (II) (86) (100) (351)
Cash flows from financing operations
Capital Increase – – –
Dividends paid to parent company shareholders – – (107)
Dividends paid to minority shareholders of subsidiaries (14) (15) (26)
Cash received on new borrowings 13 734 744
Reimbursement of borrowings (59) (115) (108)
Net (purchases)/sales of treasury shares and equity warrants (249) 1 5
Cash received on hedging transactions – – –
Net cash flows provided by (used in) financing operations (III) (309) 605 508
Impact of exchange rate fluctuations (IV) 173 34 (94)
Net change in consolidated cash flows (I + II + III + IV) (177) 272 710
Cash and cash equivalents as of January 1, 1,580 867 867
Bank overdrafts as of January 1, (33) (30) (30)
Net cash and cash equivalents at beginning of period 1,547 837 837
Cash and cash equivalents at end of period 1,418 1,162 1,580
Bank overdrafts at end of period (48) (53) (33)
Net cash and cash equivalents at end of period 1,370 1,109 1,547
Net change in cash and cash equivalents (177) 272 710
(1) Breakdown of change in working capital requirements
Change in inventory and costs billable to clients (73) 31 29
Change in accounts receivable and other receivables (458) 729 160
Change in accounts payable, other creditors and provisions 265 (1,255) (130)
Variation in working capital requirements (266) (495) 59

Statement of changes in consolidated shareholders` equity

Number of outstanding shares (in millions of euros) Capital stock Additional paid-in capital Reserves and retained earnings Translation reserve Fair-value reserve Equity attributable to holders of the parent company Non-Controlling Interest (Minority interests) Total Equity

178,854,301 January 1, 2009 78 2,553 (105) (315) 109 2,320 30 2,350
Net income for the period 167 167 5 172
Other comprehensive income
Valuation of available-for-sale investments at fair value 4 4 4
Actuarial gains and losses on defined benefit plans (11) (11) (11)
Translation of foreign operations (14) (14) 2 (12)
Total other comprehensive income – – (11) (14) 4 (21) 2 (19)
Total comprehensive income for the period – – 156 (14) 4 146 7 153

Equity component of OCEANE 2014 49 49 49
Dividends (107) (107) (15) (122)
Share-based compensation 12 12 12
Additional interest on Oranes (3) (3) (3)
Effect of changes in scope of consolidation and of commitments to purchase minority interests – 3 3
72,910 Purchases/sales of treasury shares 1 1 1
178,927, 211 June 30, 2009 78 2,553 3 (329) 113 2,418 25 2,443

Number of outstanding shares (in millions of euros) Capital stock Additional paid-in capital Reserves and retained earnings Translation reserve Fair-value reserve Equity attributable to holders of the parent company Non-Controlling Interests (Minority interests) Total Equity

187,168,768 January 1, 2010 79 2,600 390 (377) 121 2,813 25 2,838
Net income 213 213 9 222
Other comprehensive income
Valuation of available-for-sale investments at fair value (1) (1) (1)
Actuarial gains and losses on defined benefit plans (17) (17) (17)
Translation of foreign operations 422 422 9 431
Total other comprehensive income – – (17) 422 (1) 404 9 413
Total comprehensive income for the period – – 196 422 (1) 617 18 635

Dividends paid (107) (107) (14) (121)
Share-based compensation 19 19 19
Additional interest on Oranes (3) (3) (3)
Effect of changes in scope of consolidation and of commitments to purchase minority interests – (8) (8)
(7,500,000) Cancellation of Publics Groupe SA shares (3) (215) (218) (218)
(807,764) Purchases/sales of treasury shares (31) (31) (31)
178,861,004 June 30, 2010 76 2,385 464 45 120 3,090 21 3,111

Earnings per share calculation details

Earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of earnings per share
Net income attributable to equity holders of the parent a 213 167
Impact of dilutive instruments:
– Savings in financial expenses related to the conversion of debt instruments, net of tax (1) 13 2
Net income attributable to equity holders of the parent – diluted b 226 169
Number of shares used for the calculation of earnings per share
Average number of shares composing the company`s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the calculation c 204,545,563 200,760,562
Impact of dilutive instruments: (2)
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 –
– Shares resulting from the conversion of convertible bonds (1) 28,450,700 4,455,073
Number of shares – diluted d 237,073,116 206,261,458
(en euro)
Net earnings per share a/c 1.04 0.83

Net earnings per share – diluted b/d 0.95 0.82

(1)In 2010 and 2009, both Oceane 2018 and Oceane 2014 were taken into account
for the calculations (the Oceane 2014, issued in June 2009, was only included
for one month for the first semester 2009).

(2)Only stock-options and equity warrants with a dilutive effect (whose exercise
price is lower than the average share price for the period) are taken into
consideration.

Headline earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of headline earnings per share (1)
Net income attributable to equity holders of the parent 213 167
Items excluded:
– Amortization of intangibles arising on acquisition, net of tax 10 9
– Impairment, net of tax – 16
– Deferred tax asset linked to Oceane 2014 (2) – (11)
Headline income attributable to equity holders of the parent e 223 181
Impact of dilutive instruments:
– Savings in financial expenses related to the conversion of debt instruments, net of tax 13 2
Adjusted net income attributable to equity holders of the parent – diluted f 236 183

Number of shares used for the calculation of earnings per share
Average number of shares composing the company`s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the calculation c 204,545,563 200,760,562
Impact of dilutive instruments:
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 –
– Shares resulting from the conversion of convertible bonds 28,450,700 4,455,073
Number of shares – diluted d 237,073,116 206,261,458
(in euro)
Headline earnings per share (1) e/c 1.09 0.90
Headline earnings per share – diluted (1) f/d 1.00 0.89

(1)Earnings per share before Amortization of intangibles from acquisitions,
impairment and deferred tax assets linked to equity component of Oceane 2014.

(2)Effect of deferred tax asset recognized against deferred tax liabilities
linked to equity component of Oceane 2014 recorded as equity.

PUBLICIS GROUPE CONTACTS
Peggy Nahmany, Corporate Communication: + 33 (0)1 44 43 72 83
peggy.nahmany@publicisgroupe.com
or
Martine Hue, Investor Relations: + 33 (0)1 44 43 65 00
martine.hue@publicisgroupe.com

Copyright Business Wire 2010

Oriola-KD Corporation’s Interim Report for 1 January – 30 June 2010

This review presents financial information regarding the continuing operations of
Oriola-KD Group (hereinafter Oriola-KD) for the period January-June 2010. Oriola-KD’s
Healthcare Trade business was sold on 31 May 2010 and its figures are reported in the
tables in the discontinued operations section. The interim report 1 January-30 June 2010
was drawn up in accordance with the IAS 34 standard and Oriola-KD’s 2009 annual report.
In addition, new IAS/IFRS standards have been adopted in 2010, the most important of
which are IFRS 3 and IAS 27. The figures are unaudited.

Oriola-KD sold its Healthcare Trade business to Mediq N.V. on 31 May 2010 for approx.
EUR 85 million. A profit of EUR 54.0 million was entered for the corporate transaction
and as a consequence the Group’s goodwill decreased by EUR 7.7 million during the second
quarter of 2010. The final value of the deal and the profit entered will be specified
according to the conditions associated with the acquisition price by the end of 2010.

Key figures for continuing operations for 1 January – 30 June 2010

*
The figures refer to continuing operations and do not include the Healthcare Trade,
unless otherwise stated

*
Net sales increased 21 per cent to EUR 903.1 million (Jan-Jun 2009: EUR 746.5 million)

*
Operating profit decreased 47 per cent to EUR 11.3 million (Jan-Jun 2009: EUR 21.2
million)

*
Net profit decreased 52 per cent to EUR 7.4 million (Jan-Jun 2009: EUR 15.3 million)

*
Earnings per share were EUR 0.05 (Jan-Jun 2009: EUR 0.11)

*
Net cash flow from operations including the cash flow from the Healthcare Trade business
was EUR 54.1 million (Jan-Jun 2009: EUR -5.8 million)

*
Return on capital employed was 4.8 per cent (Jan-Jun 2009: 16.1 per cent including the
Healthcare Trade transaction)

*
Oriola-KD’s net sales from its continuing operations for 2010 is forecasted to be higher
than in 2009 and operating profit is forecasted to be lower than in 2009

Key figures for continuing operations for 1 April – 30 June 2010

*
The figures refer to continuing operations and do not include the Healthcare Trade,
unless otherwise stated

*
Net sales increased 29 per cent to EUR 487.3 million (Q2/2009: EUR 377.8 million)

*
Operating profit decreased 20 per cent to EUR 8.4 million (Q2/2009: EUR 10.5 million)

*
Net profit decreased 29 per cent to EUR 5.4 million (Q2/2009: EUR 7.6 million)

*
Earnings per share were EUR 0.04 (Q2/2009: EUR 0.05)

President and CEO Eero Hautaniemi: “The net sales of Oriola-KD’s continuing operations
increased 21 per cent to EUR 903 million and operating profit decreased 47 per cent to
EUR 11 million in January-June 2010. Businesses developed according to our expectations
in the second quarter. We took over the pharmacy chain acquired in Sweden and continued
to expand and intensify operations in Russia in a very difficult market situation. We
sold our Healthcare Trade business to Dutch company Mediq with EUR 85 million in May
2010.”

Financial performance

The figures related to financial performance refer to continuing operations and do not
include the Healthcare Trade, unless otherwise stated.

Oriola-KD’s net sales in January-June 2010 were EUR 903.1 million (EUR 746.5 million)
and operating profit was EUR 11.3 million (EUR 21.2 million). Profit after financial
items came to EUR 9.0 million (EUR 19.4 million) and net profit to EUR 7.4 million (EUR
15.3 million). Earnings per share in January-June 2010 were EUR 0.05 (EUR 0.11).

Second-quarter net sales came to EUR 487.3 million (EUR 377.8 million) and operating
profit to EUR 8.4 million (EUR 10.5 million). Profit after financial items came to EUR
6.9 million (EUR 9.5 million) and net profit to EUR 5.4 million (EUR 7.6 million).
Earnings per share in the second quarter were EUR 0.04 (EUR 0.05).

Oriola-KD’s financing expenses in January-June 2010 were EUR 2.3 million (EUR 1.8
million). Taxes amounted to EUR 1.6 million (EUR 4.1 million). Taxes corresponding to
the result for continuing operations for the January-June 2010 period are entered under
this figure.

Return on capital employed for continuing operations was 4.8 per cent (16.1 per cent
including the Healthcare Trade) and return on equity 5.1 per cent (19.1 per cent
including the Healthcare Trade) in January-June 2010.

Net sales generated by the discontinued Healthcare Trade business came to EUR 65.3
million and operating profit to EUR 2.9 million in January-May 2010. The business had
approximately 440 employees in Finland, Sweden, Denmark, Estonia, Latvia and Lithuania.

Balance sheet, financing and cash flow

The figures related to the balance sheet, financing and cash flow include the figures
for the Healthcare Trade until 31 May 2010 and the operating profit from the
transaction. The Swedish pharmaceutical retail business is included in Oriola-KD’s
figures as of 19 February 2010. The Healthcare Trade business was sold on 31 May 2010.

Oriola-KD’s balance sheet total on 30 June 2010 stood at EUR 1173.2 million (EUR 819.2
million). Cash and cash equivalents on 30 June 2010 stood at EUR 148.1 million (EUR 42.2
million). Equity was EUR 325.9 million (EUR 205.5 million) and the equity ratio was 28.5
per cent (25.8 per cent). The sale of the Healthcare Trade increased Oriola-KD’s equity
and equity ratio and decreased interest-bearing net debt and goodwill.

Interest-bearing net debt at the end of June 2010 was EUR 75.1 million (EUR 101.1
million) and the gearing ratio was 23.0 per cent (49.2 per cent). Oriola-KD hedged the
long-term interest-bearing debt associated with the Swedish pharmaceutical retail trade
against interest rate risk during the second quarter of 2010. Interest-bearing net debt
consists of long-term debt financing, use of the issued commercial paper programme,
advance payments from pharmacies and the estimated discounted value of the minority
share of the Swedish pharmacy company that Oriola-KD is obliged to acquire.

The terms of the financial covenants were met with a wide margin at the end of June
2010. Oriola-KD’s long-term credit limit facilities of approximately EUR 101.5 million
and EUR 41.0 million in short-term credit account facilities stood unused at the end of
the review period. Oriola-KD had drawn EUR 78.9 million from the EUR 150.0 commercial
paper programme.

Net cash flow from operations in January-June 2010 was EUR 54.1 million (EUR -5.8
million), of which changes in working capital accounted for EUR 33.6 million (EUR -24.6
million). The trade receivables sales programme of the Swedish pharmaceutical wholesale
was continued during the second quarter of 2010.

Net cash flow from investments was EUR -153.3 million (EUR -26.7 million). Net cash flow
from investments includes the acquisition of pharmacy chain in Sweden, the acquisition
of the 25 per cent minority share in Russia, operative investments and the sale of the
Healthcare Trade. During the January-June 2010 period, cash flow after investments was
EUR -99.2 million (EUR -32.5 million).

On 24 February 2010, Oriola-KD acquired the remaining 25 per cent holding in Foreti Oy,
which owns the pharmaceutical retail company (OOO Vitim) and pharmaceutical wholesale
company (OOO Moron) operating in Russia. As a result of the acquisition, Oriola-KD’s
Russian subsidiaries are now fully-owned. The price of the 25 per cent holding was EUR
65.0 million. The total price of the corporate acquisition in Russia was EUR 153.7
million, paid in cash.

Oriola-KD paid EUR 18.1 million in dividends for 2009, i.e. EUR 0.12 per share (EUR 0.08
per share in 2008) during the second quarter.

Investments

Gross investments in January-June came to EUR 185.7 million (EUR 24.0 million) including
the acquisition of the pharmacy chain in Sweden and operative investments. In addition
the Healthcare Trade business was sold with EUR 85 million in the review period.

On 19 February 2010, Kronans Droghandel Retail AB acquired 100 per cent of the stock of
a pharmacy company with 170 pharmacies nationwide. Paid in cash, the price was EUR 161.5
million (SEK 1.59 billion). Oriola-KD has an 80 per cent holding in Kronans Droghandel
Retail AB and the remaining 20 per cent is held by KF (Kooperativa Förbundet). Oriola-KD
has an obligation and right to acquire a minority share in Kooperativa Förbundet after
long-term cooperation. The obligation to acquire was entered under long-term
interest-bearing debt in the Oriola-KD balance sheet in conjunction with the acquisition
of the pharmacies. Kronans Droghandel Retail AB is 100 per cent consolidated into
Oriola-KD’s income statement and balance sheet.

Personnel

The figures related to personnel refer to the continuing operations, not including the
Healthcare Trade.

On 30 June 2010, Oriola-KD had a payroll of 4,721 (3,925) employees, 11 per cent (11 per
cent) of whom worked in Finland, 29 per cent (7 per cent) in Sweden, 58 per cent (79 per
cent) in Russia and 2 per cent (3 per cent) in the Baltic countries. The numbers
increased because of the acquisition of the Swedish pharmacy chain in February 2010,
which added some 930 persons.

Changes to the Oriola-KD Group Management Team: Ilari Vaalavirta who was a member of the
Group Management Team and Vice President of the Healthcare Trade transferred to Mediq
with the sale of the Healthcare Trade during the second quarter of 2010.

Business segments

In accordance with its organisational structure and internal reporting, Oriola-KD’s
business segments after the sale of Healthcare Trade are, as of 1 June 2010,
Pharmaceutical Trade Finland, Pharmaceutical Trade Sweden, Pharmaceutical Trade Russia,
Pharmaceutical Trade Baltic Countries and Dental Trade.

Pharmaceutical Trade Finland

Pharmaceutical Trade Finland’s net sales in January-June 2010 were EUR 210.4 million
(EUR 258.8 million) and its operating profit was EUR 9.5 million (EUR 8.8 million).
During the review period, changes from the stock owned by Oriola-KD to consignment
stock, agreed with pharmaceutical companies, reduced net sales.

Net sales in the second quarter of 2010 were EUR 105.9 million (EUR 132.0 million) and
operating profit EUR 5.0 million (EUR 4.9 million).

The pharmaceutical market declined by 1.4 percent (grew 0.2%) in Finland in January-June
2010. Oriola-KD’s market share in the Finnish pharmaceutical wholesale market was 46.4
per cent (46.8 per cent) in January-June 2010 (source: IMS Health). No major changes in
principals that would have had a bearing on market share took place in the review
period.

Pharmaceutical Trade Finland had 492 (405) employees at the end of June 2010.
Oriola-KD’s logistics centres are located in Espoo and Oulu. The increase of personnel
is mainly due to recruitments to replace leased work force, labour intensive new
products and the provision of certain transitional services in relation to the
divestment of the Healthcare Trade.

Pharmaceutical Trade Sweden

Pharmaceutical Trade Sweden’s net sales in January-June 2010 were EUR 422.4 million (EUR
256.9 million), of which retail accounted for EUR 166.3 million (EUR 0.0 million) as of
19 February 2010 and wholesale EUR 276.5 million (EUR 256.9 million). The retail
business acquired has been consolidated with the Oriola-KD figures as of 19 February
2010.

Pharmaceutical Trade Sweden’s operating profit in January-June 2010 was EUR 4.2 million
(EUR -2.3 million). The costs associated with the preparations concerning the pharmacy
business in Sweden in 1 January 2010 – 19 February 2010 were EUR 2.2 million (EUR 6.0
million in January-June 2009). In addition, EUR 0.7 million has been entered as
depreciation on the fair value allocation of the acquisition.

Second-quarter net sales came to EUR 241.4 million (EUR 130.5 million), of which retail
accounted for EUR 115.5 million (EUR 0.0 million) and wholesale EUR 140.3 million (EUR
130.5 million). Operating profit was EUR 5.6 million (EUR -2.0 million).

On 19 February 2010, Kronans Droghandel Retail AB acquired 100 per cent of the stock of
a pharmacy company with 170 pharmacies nationwide. Paid in cash, the final price was EUR
161.5 million (SEK 1.59 billion). In 2009, the pro forma net sales of the acquired
pharmacy cluster was SEK 4.6 billion (SEK 4.4 billion in 2008) and pro forma operating
profit including average central overhead costs of Apoteket AB was SEK 205 million (SEK
183 million in 2008). Oriola-KD had 173 pharmacies in Sweden at the end of June 2010.
Oriola-KD’s logistics centres are located in Gothenburg and Enköping.

The pharmaceutical market grew 0.6 per cent (2.8 per cent) in Sweden in January-June
2010. Oriola-KD’s market share in the Swedish wholesale market was 40.4 per cent (41.4
per cent) in January-June 2010 (source: IMS Health).

Pharmaceutical Trade Sweden had 1360 (268) employees at the end of June 2010, of whom
1045 (0) were employed in retail and 315 (268) in wholesale.

Pharmaceutical Trade Russia

Pharmaceutical Trade Russia’s net sales in January-June 2010 were EUR 255.0 million (EUR
213.9 million), of which retail accounted for EUR 47.5 million (EUR 49.7 million) and
wholesale EUR 231.9 million (EUR 192.3 million).

The January-June 2010 operating loss was EUR 2.5 million (operating profit of EUR 16.3
million), which includes discounts from pharmaceutical companies associated with
purchases. The Russian pharmaceutical market growth in Russian rubles was some 0 per
cent in January-June 2010 (some 30 per cent), which together with the price control
system has led to very intense competition. Oriola-KD’s net sales increased by about 8
per cent (35 per cent) in Russian rubles in January-June 2010.

Second-quarter net sales came to EUR 132.8 million (EUR 106.6 million), of which retail
accounted for EUR 23.9 million (EUR 24.0 million) and wholesale EUR 121.3 million (EUR
95.9 million). Operating loss was EUR 2.0 million (operating profit of EUR 8.6 million).

At the end of June 2010, Oriola-KD had 181 (163) pharmacies in the Moscow region and
nine regional distribution centres in Russia in addition to its main logistics centre.
Also, Oriola-KD started pharmaceutical wholesale in Yekaterinburg and Novosibirsk during
the first half-year. The regional expansion of the Russian wholesale business and the
growth of the retail business in Moscow will be continued during 2010.

Pharmaceutical Trade Russia had 2,766 (3,119) employees at the end of June 2010, of whom
1,277 (1,609) were employed in retail and 1,489 (1,510) in wholesale. Measures were
taken to improve the efficiency of operations, and as a consequence the number of
employees has decreased in spite of the increase in the number of pharmacies and the
regional expansion of the wholesale business.

Pharmaceutical Trade Baltic Countries

Pharmaceutical Trade Baltic Countries’ net sales in January-June 2010 were EUR 15.6
million (EUR 17.3 million) and operating profit was EUR 0.4 million (EUR 0.4 million).

Second-quarter net sales were EUR 7.3 million (EUR 8.8 million) and operating profit EUR
0.2 million (EUR 0.2 million).

Oriola-KD discontinued pharmaceutical wholesale in Estonia in the first quarter of 2010.
The discontinuation of business operations did not have any material cost effect.

Pharmaceutical Trade Baltic Countries had 103 (133) employees at the end of June 2010.

Dental Trade

In January-June 2010, the operating profit of Dental Trade was EUR 3.1 million (EUR 1.8
million). Second-quarter operating profit was EUR 1.4 million (EUR 0.7 million).

The dental trade businesses of Oriola-KD Corporation and Lifco AB were combined in 2007.
Oriola-KD’s holding in the Dental Trade business is 30 per cent and Lifco’s holding is
70 per cent. Oriola-KD’s operating profit includes the profit after taxes from the
associated company.

Related parties

Related parties in the Oriola-KD Group are deemed to comprise the parent company
Oriola-KD Corporation, the subsidiaries and associated companies, the members of the
Board and the President and CEO of Oriola-KD Corporation, other members of the Group
Management Team of the Oriola-KD Group, the immediate family of the aforementioned
persons, the companies controlled by the aforementioned persons, and the Oriola Pension
Foundation. The Group has no significant business transactions with related parties,
except for pension expenses arising from defined benefit plans with the Oriola Pension
Foundation. Oriola-KD Corporation has given internal loans mainly to the holding
companies of Swedish and Russian businesses. Oriola-KD Corporation has given no
significant sureties on behalf of Group companies, with the exception of a mother
company guarantee for a loan given to Kronans Droghandel Retail AB.

Oriola-KD Corporation shares

Trading volume of Oriola-KD Corporation’s class A and B shares in January-June 2010:

Trading volume Jan-Jun 2010 Jan-Jun 2009
Class A Class B Class A Class B
Trading volume, million 3.6 53.8 2.9 42.2
Trading volume, EUR million 16.9 228.4 6.3 95.9
Highest, EUR 5.47 5.49 2.85 2.85
Lowest, EUR 3.30 3.30 1.68 1.68
Closing quotation, end of period, EUR 3.95 3.83 2.77 2.76

3.83

2.77

2.76

In the review period, the traded volume of Oriola-KD Corporation shares, excluding
treasury shares, corresponded to 38.0 per cent (31.6 per cent) of the total number of
shares. The traded volume of class A shares amounted to 7.5 per cent (6.0 per cent) of
the average stock, and that of class B shares, excluding treasury shares, 52.1 per cent
(44.8 per cent).

Oriola-KD Corporation’s market capitalisation on 30 June 2010 was EUR 585.0 million (EUR
417.0 million).

On 8 March 2010, pursuant to the authorisation granted to it by the Annual General
Meeting of 13 March 2007, the Board of Directors of Oriola-KD Corporation resolved that
a directed bonus issue be made, in which a total of 209,300 class B shares held by the
company were assigned to the company’s President and CEO and to certain other members of
Oriola-KD Corporation’s Group Management Team and of its extended Group Management Team,
as part of the 2007-2009 share-based incentive scheme for the Group’s management. These
shares represent approximately 0.14 per cent of the total number of company shares and
approximately 0.02 per cent of the total number of votes.

On 28 June 2010, pursuant to the authorisation granted to it by the Annual General
Meeting of 13 March 2007, the Board of Directors of Oriola-KD Corporation resolved that
a directed bonus issue be made, in which a total of 37,350 class B shares held by the
company were assigned to certain key members of the Oriola-KD Group as part of the
2007-2009 share-based incentive scheme for the Group’s management. These shares
represent approximately 0.02 per cent of the total number of company shares and
approximately 0.0035 per cent of the total number of votes.

The company has 96,822 treasury shares, all of which are class B shares. These account
for 0.06 per cent of the company’s shares and 0.009 per cent of the votes.

At the end of June 2010, the company had 151,257,828 shares (151,257,828), of which
47,217,359 were class A shares (48,392,203) and 104,040,469 were class B shares
(102,865,625). Pursuant to article 3 of the Articles of Association, a shareholder can
request that class A shares be converted to class B shares. During January-June 2010, a
total of 450,000 (300,000) Class A shares were converted into Class B shares

The Board of Directors of Oriola-KD has defined the earning criteria for the share
incentive scheme for the Group’s key personnel for the years 2010-2012 so that any
payment for the 2010 earning period will be based on Oriola-KD’s earnings per share
(EPS) and return on capital employed (ROCE).

Risks

The Board of Directors of Oriola-KD has approved the company’s risk management policy in
which the risk management operating model, principles, responsibilities and reporting
are specified. The Group’s risk management seeks to identify, measure and manage risks
that may threaten the operations of the company and the achievement of goals set for
them. The roles and responsibilities relating to risk management have been determined in
the Group.

Oriola-KD’s risks are classified as strategic, operational and financial. Risk
management is a key element of the strategic process, operational planning and daily
decision-making at Oriola-KD.

Oriola-KD has identified the following principal strategic and operational risks in its
business:

*
changes in bargaining position vis-à-vis suppliers and customers;

*
impacts of the changes in Pharmaceutical Trade Sweden on business;

*
impacts of the changes in Pharmaceutical Trade Russia on business;

*
maintenance of cost-effectiveness and flexibility in costs;

*
provision of competitive products and services in expanding and consolidating markets;
and

*
commitment of key employees.

The major financial risks for Oriola-KD involve currency exchange rates, interest rates,
liquidity and credit.

Oriola-KD’s exposure to risks relating to businesses and financial risks has increased
with the expansion into the Russian pharmaceutical retail and wholesale market and the
Swedish pharmaceutical retail market. Currency risks are the most significant of
Oriola-KD’s financial risks in Russia and Sweden, as any changes in the value of the
Russian ruble or the Swedish krona will have an impact on Oriola-KD’s financial
performance and equity.

Goodwill and intangible rights are subject to annual impairment testing, which may have
a negative effect on Oriola-KD’s financial performance.

Near-term risks and uncertainty factors

The difficult state of the Russian economy, intense competition and the price control
system have a material impact on Oriola-KD near-term outlook in the country. The
development of the Swedish pharmacy market is subject to uncertainties that may have a
substantial effect on Oriola-KD’s Swedish business.

Decisions of the Annual General Meeting

The Annual General Meeting of Oriola-KD Corporation, held on 7 April 2010, confirmed the
2009 financial statements and discharged the Board members and the President and CEO
from liability for the financial year ending 31 December 2009. The Annual General
Meeting resolved that the sum of EUR 0.12 per share be paid as dividend on the basis of
the balance sheet adopted for the financial year ending 31 December 2009.

The Board was authorised, in accordance with its proposal, to decide on the payment of
additional dividend from undistributed profits and/or distribution of funds, in one or
more batches, from the company’s invested non-restricted equity fund or both so that the
amount of the additional dividend and/or return of capital paid under the authorisation
would not exceed EUR 0.05 per share. The authorisation will be in force until the next
annual general meeting.

The Annual General Meeting confirmed that the Board comprises eight members. Harry
Brade, Pauli Kulvik, Outi Raitasuo, Antti Remes, Olli Riikkala, Jaakko Uotila and Mika
Vidgrén were re-elected to the Board. Per Båtelson was elected as a new member to the
Board. Olli Riikkala continues as Chairman of the Board. The Annual General Meeting
confirmed that the Chairman of the Board will receive EUR 48,400 in remuneration for his
term of office, the Vice Chairman EUR 30,250 and the other members of the Board EUR
24,200 each. Of the annual fees, 60 per cent will be paid in cash and 40 per cent in
company shares so that after the release of the company’s interim report for the first
quarter of 2010, Oriola-KD Corporation Class B shares would be acquired on the market
for Board members, and the cash portion of the annual fee will also be paid. The
Chairman of the Board will receive an attendance fee of EUR 800 for each meeting, and
the other Board members EUR 400 per meeting. Meeting fees will also be paid in the same
manner to members of any committees set up by the Board of Directors or the company. The
Chairman of the Board will also have a company-paid phone. Travel expenses will be paid
in accordance with the travel policy of the company.

The Annual General Meeting re-elected PricewaterhouseCoopers Oy as auditor for the
company, with Heikki Lassila APA as principal auditor, for the 2010 financial year. The
auditor will be remunerated according to invoice.

The Annual General Meeting resolved that article 12 of the Articles of Association on
time of the notice of general meeting be amended.

The Annual General Meeting authorised the Board to decide on the purchase of Oriola-KD
Corporation class B shares in accordance with the Board’s proposal. Pursuant to the
authorisation, the Board is authorised to decide on the purchase of no more than
15,000,000 of the company’s own class B shares, corresponding to approximately 9.92 per
cent of the total number of company shares. The authorisation can only be used in such a
way that the company and its subsidiaries together would hold no more than one tenth
(1/10) of the total number of company shares at any one time. The purchase authorisation
would remain in force no longer than eighteen (18) months following the decision of the
General Meeting. The authorisation revokes the Annual General Meeting’s decision of 16
April 2009 authorising the Board to decide on the purchase of Oriola-KD Corporation
class B shares.

The Annual General Meeting authorised the Board to decide on a share issue of the
company’s shares against payment in one or more batches in accordance with the Board’s
proposal. The authorisation includes the right to issue new class B shares or to assign
class B shares held by the company. The authorisation covers no more than thirty million
(30,000,000) of the company’s class B shares in total, which corresponds to
approximately 19.83 per cent of the total number of company shares. The authorisation
granted to the Board includes the right to deviate from the pre-emptive subscription
right of shareholders, provided that there are financial grounds considered important
from the company’s perspective for such a deviation. The authorisation will remain in
force for eighteen (18) months following the decision of the General Meeting. The
authorisation revokes the share issue authorisations previously received by the Board,
with the exception of the authorisation granted to the Board by the Annual General
Meeting of 13 March 2007, under which the Board may decide on arranging a directed bonus
issue of no more than 650,000 class B shares for the purpose of implementing the
2007-2009 share-based incentive scheme for management.

The Annual General Meeting also authorised the Board to decide on granting the company’s
shares to the company in one or more batches under a bonus issue in accordance with the
Board’s proposal. The maximum amount of the company’s new B class shares issued under
this authorisation is 1,200,000, which was 0.79 per cent of the company’s total shares
and 0.11 per cent of total votes. The purpose of the authorisation is to allow treasury
shares to be used as laid out below in the new share-based incentive scheme or Oriola-KD
key persons. The Board was also authorised to issue class B shares, waiving the
pre-emptive subscription rights of the shareholders according to the Board’s proposal.
The class B shares issued may be either new or treasury shares. The total share amount
of the authorisation is 1.200.000 class B shares. The share issue may be a bonus issue.
These shares represent approximately 0.79 per cent of the total number of company shares
and approximately 0.11 per cent of the total number of votes. The Board may use this
authorisation in the new 2010-2012 share-based incentive scheme or Oriola-KD key
persons. The authorisations remain in force for no more than four (4) years following
the decision of the General Meeting.

Decisions of the organisational meeting of the Board

At the organisational meeting held immediately after the AGM, the Board resolved to
elect Antti Remes to continue serving as Vice Chairman of the Board. The composition of
the Audit and Compensation Committees was confirmed as follows.

Audit Committee:
Antti Remes, Chairman
Harry Brade
Outi Raitasuo
Mika Vidgrén

Compensation Committee:
Olli Riikkala, Chairman
Pauli Kulvik
Jaakko Uotila

The company also has a Nomination Committee, the members of which will be elected later.

The Board of Directors has evaluated the independence of its members and found that all
the members are independent of both the company and its major shareholders.

Outlook

Oriola-KD’s outlook for 2010 is based on external market forecasts, agreements with
suppliers and customers, order intake and management assessments. Long-term fundamentals
and growth prospects are expected to be favourable in the pharmaceutical market.

Oriola-KD expects that the pharmaceutical market in Finland and Sweden will grow by
about 3-5 per cent annually over the next few years in the local currencies, which is in
line with the longer-term average growth rate of these markets. The Russian
pharmaceutical market is expected to see annual growth of approximately 10-15 per cent
in Russian rubles in the next few years. The growth of the Russian pharmaceutical market
in 2010 is expected to be significantly slower than in the long term, mainly because of
the difficult state of the Russian economy, very intense competition and the price
control system. Competition in the Swedish retail market is expected to be stiff in 2010
as a result of the deregulation.

Oriola-KD’s net sales from its continuing operations for 2010 is forecasted to be higher
than in 2009 and operating profit is forecasted to be lower than in 2009. Pharmaceutical
Trade Russia’s operating profit is forecasted to be clearly lower than in 2009.

Tables

Consolidated Statement of 1 Jan – 30 June 1 Jan – 30 June 1 Apr – 30 June 1 Apr – 30 June 1 Jan – 31 Dec
Comprehensive Income (IFRS), 2010 2009 2010 2009 2009
EUR million
Continuing operations
Net sales 903.1 746.5 487.3 377.8 1569.2
Cost of goods sold -779.9 -649.2 -416.7 -330.0 -1363.8
Gross profit 123.2 97.4 70.6 47.7 205.4
Other operating income 1.9 1.0 0.8 0.5 2.1
Selling and
distribution expenses -91.2 -63.2 -45.5 -32.3 -129.2
Administrative expenses -25.7 -15.7 -19.0 -6.2 -25.8
Profit from
associated companies 3.1 1.8 1.4 0.8 3.9
Operating profit 11.3 21.2 8.4 10.5 56.4
Financial income 3.4 4.6 2.3 2.6 7.9
Financial expenses -5.7 -6.4 -3.8 -3.5 -9.9
Profit before taxes 9.0 19.4 6.9 9.5 54.5
Income taxes*) -1.6 -4.1 -1.5 -1.9 -11.4
Profit from the continuing operations
for the period under review 7.4 15.3 5.4 7.6 43.0

Discontinued operations
Profit from the discontinued operations
for the period under review 56.2 3.4 55.3 2.2 5.6
Profit for the period under review
including discontinued operations 63.6 18.7 60.7 9.8 48.6

Other comprehensive income
Hedge of a net investment in a
foreign operation 8.2 -2.7 2.5 1.2 -2.0
Cash flow hedge -0.4 – -0.4 – –
Income tax relating to other comprehensive income -1.6 0.5 -0.5 -0.2 0.4
Translation difference 30.8 -4.9 17.1 3.2 1.3
Total comprehensive income for the period under review
including discontinued operations 100.6 11.7 79.4 13.9 48.4

Attribution of profit from the continuing operations
for the period under review
To parent company shareholders 7.4 15.3 5.4 7.6 43.9
To minority interest – – – – -0.9

Attribution of profit for the period under review
including discontinued operations
To parent company shareholders 63.6 18.7 60.7 9.8 49.5
To minority interest – – – – -0.9

Attribution of total comprehensive income for the
period under review (including discontinued operations)
To parent company shareholders 100.6 11.7 79.4 13.9 49.3
To minority interest – – – – -0.9

Earnings per share
from the continuing operations
Basic earnings per share, EUR 0.05 0.11 0.04 0.05 0.30
Diluted earnings per share, EUR 0.05 0.11 0.04 0.05 0.30

Earnings per share
for the period under review
(including discontinued operations)
Basic earnings per share, EUR 0.42 0.13 0.40 0.07 0.34
Diluted earnings per share, EUR 0.42 0.13 0.40 0.07 0.34

*) The tax expense for the period has been calculated as the proportional share of the
total estimated taxes for the financial year.

Consolidated Balance Sheet (IFRS),
EUR million

ASSETS 30 June 2010 30 June 2009 31 Dec
2009

Non-current assets
Property, plant and equipment 61.0 53.1 53.3
Goodwill 258.4 118.9 141.7
Other intangible assets 72.6 38.7 39.5
Investments in associated companies 30.4 28.4 30.7
Other non-current assets 8.3 8.7 7.5
Deferred tax assets 5.7 2.3 2.5
Non-current assets total 436.5 250.1 275.2

Current assets
Inventories 311.8 261.1 287.1
Trade and other receivables 276.8 265.8 227.1
Cash and cash equivalents 148.1 42.2 133.7
Current assets total 736.7 569.1 647.8

ASSETS TOTAL 1173.2 819.2 923.1

EQUITY AND LIABILITIES 30 June 2010 30 June 2009 31 Dec
2009

Equity
Share capital 36.2 36.2 36.2
Other funds 50.4 50.8 50.9
Retained earnings 239.3 118.6 156.4
Equity of the parent
company shareholders 325.9 205.5 243.4
Minority interest – – 10.8
Equity total 325.9 205.5 254.2

Non-current liabilities
Deferred tax liabilities 23.1 14.1 13.6
Pension liabilities 5.0 4.3 4.9
Provisions – 0.0 0.0
Interest-bearing non-current liabilities 116.6 0.1 0.2
Non-current liabilities total 144.8 18.5 18.8

Current liabilities
Trade payables and other current liabilities 596.0 451.9 500.5
Interest-bearing current liabilities 106.6 143.2 149.5
Current liabilities total 702.5 595.1 650.1

EQUITY AND LIABILITIES TOTAL 1173.2 819.2 923.1

819.2

923.1

Consolidated Statement
of Changes in
Equity (IFRS)
Equity of the
parent
company
Share Other Translation Retained share- Minority
EUR million capital funds differences earnings holders interest Total
Equity
1 Jan 2009 36.2 30.1 -30.1 148.2 184.4 1.0 185.5
Dividends paid – – – -11.3 -11.3 – -11.3
Share issue – 20.6 – – 20.6 – 20.6

Change in minority interest – – – – 0.0 -1.0 -1.0

Share-based payments – – – 0.1 0.1 – 0.1
Total comprehensive income
for the period under review – – -7.0 18.7 11.7 – 11.7
Equity
30 June 2009 36.2 50.8 -37.1 155.7 205.5 0.0 205.5

Equity
1 Jan 2010 36.2 50.9 -30.4 186.8 243.4 10.8 254.2
Dividends – – – -18.1 -18.1 – -18.1
Share issue – – – – 0.0 – 0.0

Change in minority interest – – – – 0.0 -10.8 -10.8

Share-based payments – – – 0.1 0.1 – 0.1
Assignment of shares – -0.1 – – -0.1 – -0.1
Total comprehensive income
for the period under review – -0.4 37.4 63.6 100.6 – 100.6
Equity
30 June 2010 36.2 50.4 7.0 232.4 325.9 0.0 325.9

232.4

325.9

0.0

325.9

Consolidated Cash Flow Statement 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
*) (IFRS), EUR million 2010 2009 2009
Operating profit 14.2 25.9 65.4
Depreciation 5.5 4.8 9.4
Change in working capital 33.6 -24.6 37.9
Cash flow from financial
items and taxes -7.5 -8.1 -13.3
Other adjustments 8.4 -3.8 1.5
Net cash flow from operating activities 54.1 -5.8 100.9

Net cash flow from investing activities -153.3 -26.7 -28.0

Net cash flow from financing activities 108.0 28.8 14.5

Net change in cash and cash equivalents 8.9 -3.7 87.4

Cash and cash equivalents
at the beginning of the period 133.7 46.5 46.5
Foreign exchange rate differences 5.5 -0.5 -0.2
Net change in cash and cash equivalents 8.9 -3.7 87.4
Cash and cash equivalents
at the end of the period 148.1 42.2 133.7
*) Includes net cash flow of Healthcare Trade until 31 May 2010.

*) Includes net cash flow of Healthcare Trade until 31 May 2010.

Change in Property, Plant and Equipment, 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
EUR million 2010 2009 2009
Carrying amount at the beginning of the period 53.3 54.5 54.5
Increases through acquisitions of subsidiary shares 8.9 – –
Increases 4.5 2.8 6.0
Decreases -4.0 -0.7 -1.8
Depreciation -3.7 -3.2 -6.5
Foreign exchange rate differences 2.1 -0.3 1.1
Carrying amount at the end of the period 61.0 53.1 53.3

53.1

53.3

1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
Key Figures 2010 2009 2009
Equity ratio, % 28.5% 25.8% 29.2%
Equity per share, EUR 2.16 1.36 1.61
Return on capital employed (ROCE), % 4.8% 16.1% 18.7%
Return on equity, % 5.1% 19.1% 22.1%
Net interest-bearing debt, EUR million 75.1 101.1 16.0
Gearing, % 23.0% 49.2% 6.3%
Earnings per share, EUR 0.42 0.13 0.34
Average number of shares, 1000 pcs 151 167 143 044 147 034

143 044

147 034

Derivatives, Commitments
and Contingent Liabilities

30 June 2010
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised as
cash flow hedges
Foreign currency forward and swap contracts – – –
Interest rate swaps – -0.4 105.0
Derivatives measured at
fair value through profit or loss
Foreign currency forward and swap contracts 0.6 – 59.3

30 June 2009
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised
as cash flow hedges
Foreign currency forward and swap contracts 2.1 – 40.8
Derivatives measured at
fair value through profit or loss
Foreign currency forward and swap contracts 0.3 – 20.0

Contingencies for Own Liabilities,
EUR million 30 June 2010 30 June 2009 31 Dec 2009
Guarantees given 119.4 35.6 36.8
Mortgages on land and buildings 2.0 2.0 2.0
Mortgages on company assets 2.2 1.9 2.0
Other guarantees and liabilities 0.1 1.4 1.9
Total 123.7 41.0 42.7

Leasing-liabilities (operating liabilities) 1.2 0.4 0.3
Rent contingencies 59.6 34.7 33.8

34.7

33.8

Net Sales by Operating Segments, 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
EUR million 2010 2009 2009
Pharmaceutical Trade Finland 210.4 258.8 505.1
Pharmaceutical Trade Sweden 422.4 256.9 548.3
Pharmaceutical Trade Russia 255.0 213.9 480.7
Pharmaceutical Trade Baltics 15.6 17.3 35.7
Net sales to other segments -0.2 -0.3 -0.5
Continuing operations total 903.1 746.5 1569.2
Discontinued operations 65.3 69.9 145.1
Net sales to other segments -1.6 -0.6 -1.2
Group Total 966.8 815.8 1713.1

815.8

1713.1

Operating Profit by Operating Segments, 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
EUR million 2010 2009 2009
Pharmaceutical Trade Finland 9.5 8.8 18.1
Pharmaceutical Trade Sweden 4.2 -2.3 -5.0
Pharmaceutical Trade Russia -2.5 16.3 44.5
Pharmaceutical Trade Baltics 0.4 0.4 0.9
Dental Trade 3.1 1.8 3.9
Group Administration and Others -3.5 -3.7 -5.9
Continuing operations total 11.3 21.2 56.4
Discontinued operations 56.9 4.7 8.9
Group Total 68.2 25.9 65.4

Continuing operations
Average number of personnel 4 590 4 002 3 923
Number of personnel at the end of the period 4 721 3 925 3 870

Group total
Average number of personnel 4 930 4 460 4 373
Number of personnel at the end of the period 4 721 4 399 4 299

4 399

4 299

Net Sales by Operating Segments,
EUR million Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Pharmaceutical Trade Finland 105.9 104.5 125.8 120.6 132.0 126.8
Pharmaceutical Trade Sweden 241.4 181.0 159.3 132.1 130.5 126.4
Pharmaceutical Trade Russia 132.8 122.1 148.2 118.6 106.6 107.2
Pharmaceutical Trade Baltics 7.3 8.3 10.3 8.0 8.8 8.6
Net sales to other segments -0.1 -0.1 -0.1 -0.1 -0.1 -0.2
Continuing operations total 487.3 415.7 443.5 379.2 377.8 368.8
Discontinued operations 30.9 34.4 43.4 31.9 34.9 35.0
Net sales to other segments -0.5 -1.1 -0.3 -0.3 -0.3 -0.3
Group Total 517.7 449.0 486.5 410.8 412.3 403.5

486.5

410.8

412.3

403.5

Operating Profit by Operating Segments,
EUR million Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Pharmaceutical Trade Finland 5.0 4.5 4.4 4.9 4.9 3.9
Pharmaceutical Trade Sweden 5.6 -1.4 -2.2 -0.4 -2.0 -0.4
Pharmaceutical Trade Russia -2.0 -0.4 21.6 6.6 8.6 7.6
Pharmaceutical Trade Baltics 0.2 0.3 0.3 0.2 0.2 0.1
Dental Trade 1.4 1.6 1.2 0.8 0.7 1.1
Group Administration and Others -1.9 -1.6 -0.8 -1.5 -2.0 -1.6
Continuing operations total 8.4 3.0 24.5 10.7 10.5 10.7
Discontinued operations 55.6 1.3 2.4 1.9 3.0 1.7
Group Total 64.0 4.2 26.9 12.6 13.5 12.4

26.9

12.6

13.5

12.4

1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
Net Sales by Market, EUR million 2010 2009 2009
Finland 211.5 258.5 509.9
Sweden 419.0 256.9 539.8
Russia 255.0 213.9 480.7
Baltic countries 15.6 17.3 35.7
Other countries 2.1 0.0 3.2
Continuing opertions total 903.1 746.5 1569.2

746.5

1569.2

Net Sales by Market, EUR million Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Finland 106.5 105.0 126.3 125.1 131.9 126.6
Sweden 239.5 179.4 157.7 125.2 130.5 126.4
Russia 132.8 122.1 148.2 118.6 106.6 107.2
Baltic countries 7.3 8.3 10.3 8.0 8.8 8.6
Other countries 1.2 0.9 1.0 2.2 – –
Continuing operations total 487.3 415.7 443.5 379.2 377.8 368.8

443.5

379.2

377.8

368.8

DISCONTINUED OPERATIONS

Comprehensive Income 1 Jan – 31 May 1 Jan – 31 Dec
(IFRS), EUR million 2010 2009
Discontinued operations
Net sales 65.3 145.1
Cost of goods sold -46.6 -100.3
Gross profit 18.6 44.8
Other operating income 54.2 2.2
Selling and
distribution expenses -15.0 -35.3
Administrative expenses -1.0 -2.8
Operating profit 56.9 8.9
Financial income 0.1 0.0
Financial expenses -0.1 -1.4
Profit before taxes 56.9 7.6
Income taxes*) -0.7 -2.0
Profit from the discontinued operations for the period under review 56.2 5.6

Attribution of profit from the discontinued operations
for the period under review
To parent company shareholders 56.2 5.6
To minority interest – –

-

-

Earnings per share
from the discontinued operations
Basic earnings per share, EUR 0.37 0.04
Diluted earnings per share, EUR 0.37 0.04

*) The tax expense for the period has been
calculated as the proportional share of
the total estimated taxes for the financial year.

the total estimated taxes for the financial year.

Cash Flow Statement 1 Jan – 31 May 1 Jan – 31 Dec
(IFRS), EUR million 2010 2009
Net cash flow from operating activities 6.7 -3.5
Net cash flow from investing activities -0.9 -1.9
Net cash flow from financing activities 0.2 5.4
Net change in cash and cash equivalents 6.0 -0.1

6.0

-0.1

BUSINESS COMBINATIONS DISCLOSURE

Acquisition of national pharmacy chain in Sweden (Pharmacy Company Sweden 2 AB)

Oriola-KD announced in November 2009 that it would acquire 100 per cent of the shares of
Pharmacy Company Sweden 2 AB, a national pharmacy cluster with 170 pharmacies. The
transaction was executed in February 2010. The acquired pharmacy business covers only
retail activities. The transaction does not include any contingent considerations.
Entering the pharmaceutical retail business in Sweden is an important part of
Oriola-KD’s strategy to expand the operations from pharmaceutical wholesale to retail.

The acquisition cost is calculated on the basis of the company’s provisional balance
sheet as per 19 February 2010 prepared in accordance with IFRS and the Oriola-KD Group’s
accounting principles in respect of all material elements. The provisional balance sheet
and acquisition cost calculation are unaudited.

The acquisition is accounted for using provisional values as permitted under IFRS 3R.
Over the 12 months following the acquisition, Oriola-KD will make the necessary
adjustments to these provisional values. The fair value of the identifiable fixed assets
was 8.6 million euros and inventory 22.2 million euros. These figures are provisional
figures and the values might be adjusted during 2010.

The fair value of trade receivables and other receivables is 50.9 million euros and it
does not include any material risk.

The initial purchase price allocation calculation calculated in Swedish crowns has been
translated into euros by using the exchange rate of acquisition date.

The financial result and the balance sheet of the acquired company has been consolidated
into the Oriola-KD Group from the acquisition date, i.e. 19 February 2010.

Business combinations disclosure under IFRS 3 (revised)

The 101.3 million euro goodwill arising from the acquisition is primarily representing
the strong market position, growth expectations, opportunities after monopoly
deregulation and experienced existing personnel as well as expected synergies with
Oriola-KD’s sizeable wholesale operations in Sweden. None of the goodwill is deductible
for income tax purposes.

The following table summarises the consideration paid for the pharmacy cluster and the
amounts of the assets acquired and liabilities assumed recognised at the acquisition
date, as well as the fair value at the acquisition date of the non-controlling
interest.

Consideration
19.2.2010
Carrying amount, EUR million Fair value allocations, EUR million Fair
value, EUR
million
Cash 161.5 0.0 161.5
Equity instruments 0 0.0 0.0
Contingent consideration 0 0.0 0.0
Total consideration transferred 161.5 161.5
Indemnification asset 0 0.0 0.0
Fair value of equity interest held before 0 0.0 0.0
the business combination
Total consideration 161.5 161.5

Acquisition related costs
-included in administrative expenses in the consolidated income statement for 2009 1.2
-included in administrative expenses in the consolidated income statement for 2010 0.5

Recognised amounts of identifiable
assets acquired and liabilities assumed
Cash and cash equivalents 2.4 0.0 2.4
Property, plant and equipment 8.6 0.0 8.6
Trademarks (included in intangibles) 0.0 0.0 0.0
Pharmacy licences and rental agreements (included in intangibles) 0.0 25.4 25.4
Contractual customer relationship (included in intangibles) 0.0 0.0 0.0
Investment in associates 0.0 0.0 0.0
Available-for-sale financial assets 0.0 0.0 0.0
Inventories 22.2 0.2 22.4
Trade receivables 44.0 0.0 44.0
Other receivables 6.8 0.0 6.8
Trade and other payables -42.8 0.0 -42.8
Retirement benefit obligations 0.0 0.0 0.0
Borrowings 0.0 0.0 0.0
Contingent liability 0.0 0.0 0.0
Deferred tax liabilities 0.0 -6.7 -6.7
Total identifiable net assets 41.3 18.9 60.2
Non-controlling interest 0.0 0.0 0.0
Goodwill 101.3

The pro forma net sales of the acquired pharmacy cluster was SEK 4.6 billion and pro
forma operating profit including average central overhead costs of Apoteket AB was SEK
205 million.

Espoo 28 July 2010

Oriola-KD Corporation’s Board of Directors

Oriola-KD Corporation

Eero Hautaniemi
President and CEO

Kimmo Virtanen
Executive Vice President and CFO

Further information:

Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com

Kimmo Virtanen
Executive Vice President and CFO
tel. +358 (0)10 429 2069
e-mail: kimmo.virtanen@oriola-kd.com

Pellervo Hämäläinen
Vice President, Communications and Investor Relations
tel. +358 (0)10 429 2497
e-mail: pellervo.hamalainen@oriola-kd.com

Distribution
NASDAQ OMX Helsinki Ltd
Principal media

Published by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com

HUG#1434559

Oriola-KD Corporation’s Interim Report for 1 January – 30 June 2010

http://hugin.info/136732/R/1434559/380121.pdf

Turnover and profit rise in both Europe and North America

Stuttgart, Germany, 29 July 2010. The economic upswing in the first half of 2010 had a
positive effect on business developments at TAKKT Group. TAKKT’s business revived
considerably in the second quarter, compensating for the negative growth rates recorded
in the first months of 2010 and enabling the Group to post an organic increase in
turnover for the first half-year. Operational profitability improved significantly
compared to the previous year’s period. As forecasted at the beginning of the year,
TAKKT Group has returned to growth. In the light of the positive business climate, the
organic growth target for the company’s annual turnover has been raised to around three
percent.

Significant events in the first half of 2010

* Organic increase in turnover of 0.9 percent in the first half-year and 6.6 percent in
Q2
* EBITDA margin climbs to 13.9 (11.0) percent
* Earnings per share up 46 percent
* TAKKT awarded first place in the Investor Relations Awards organised by the business
magazine Capital

In the first six months of 2010, TAKKT Group benefited from the economic upturn in all
its key sales regions. Consolidated turnover increased by 5.2 percent to EUR 376.8
(previous year’s period: 358.3) million. Adjusted for currency effects and Central
Products LLC (Central), acquired in April 2009, this corresponds to organic growth of
0.9 percent in turnover. While an organic decrease in turnover of minus 4.1 percent was
recorded in Q1, organic turnover growth of 6.6 percent was posted in the second quarter.
“The growth dynamic remained intact in the first six months of the current financial
year. In March 2010, we predicted that the company would return to growth in Q2 – this
has proved us right”, said CEO Dr Felix A. Zimmermann.

As expected, the gross profit margin increased slightly in the first half to 42.8 (42.3)
percent. Excluding the Central acquisition, the increase was 0.8 percentage points.
TAKKT Group is continuing to benefit from the improved procurement conditions agreed
during the crisis.

Operational profitability showed a considerable year-on-year improvement in the first
half of 2010 due to a turnover-related increase in infrastructure utilisation, higher
advertising efficiency and the FOCUS measures implemented in the previous year. EBITDA
(earnings before interest, tax, depreciation and amortisation) rose by 32.2 percent to
EUR 52.2 (39.5) million in the first six months of the year. This corresponds to an
increase in the EBITDA margin to 13.9 (11.0) percent.

As usual, cash flow developed strongly during the reporting period, increasing by 24.3
percent to EUR 36.8 (29.6) million. The cash flow margin was 9.8 (8.3) percent.

Upturn at TAKKT EUROPE
The new Group structure introduced on 01 January 2010 (last year’s figures have been
adjusted to improve comparability) enabled the growth rate of the TAKKT EUROPE division
to catch up with the TAKKT AMERICA division growth rate. Although its customers
initially remained reluctant to buy, the first six months of the year were marked by a
gradual, continuous recovery at TAKKT EUROPE. In total, the division generated turnover
of EUR 222.4 (218.8) million – an increase of 1.6 percent year-on-year. With this, TAKKT
EUROPE generated 59.0 (61.0) percent of consolidated turnover. Adjusted for the various
currency effects, the growth was equivalent to 0.1 percent in the first half and 7.7
percent in Q2.

The Office Equipment Group (OEG) – comprising the Topdeq companies – was unable to keep
up with the high single-digit growth rate posted by the Business Equipment Group (BEG),
which consists of the former KAISER + KRAFT EUROPA companies. Even after adjusting for
the US activities closed at the end of 2009, turnover dropped by a double-digit
percentage at the OEG and remained disappointing. In the light of this, the Group is
currently working on strategically repositioning the Topdeq companies.

TAKKT EUROPE generated EBITDA of EUR 41.9 (31.1) million in the first half of the year.
This took the EBITDA margin from 14.2 percent in H1 2009 to 18.8 percent.

The Group continues to drive the division’s expansion in the current financial year.
KAISER + KRAFT began operations in Russia in January. Following a successful launch in
Germany, the new online brand Certeo has now also been rolled out on the Austrian
market. The gaerner Group, which specialises in plant and office equipment, commenced
sales activities in Italy in May 2010.

All companies will expand their range of private label articles due to positive
experience throughout the Group. The BEG has been offering high-quality transport
equipment at fair prices under the name of Quipo since March. In addition to this,
Topdeq has been marketing its own range of high-end office furniture since January,
branded as siqnatop.

In April 2010, TAKKT acquired minority interests in the Dutch company Vink Lisse B.V.
and the Belgian subsidiary KAISER + KRAFT N.V. for a purchase price of approximately EUR
11 million.

TAKKT AMERICA posts solid growth
Turnover at the TAKKT AMERICA division came in at USD 204.4 (185.8) million in the
reporting period. This corresponds to a year-on-year increase of 10.0 percent. Adjusted
for the Central acquisition, the division’s turnover still grew by 3.4 percent based on
US dollar figures in the first half, with growth of 5.5 percent recorded in the second
quarter. Translated into the reporting currency Euro, turnover increased by 10.7 percent
to EUR 154.5 (139.6) million during the first six months. TAKKT AMERICA therefore
contributed 41.0 (39.0) percent to consolidated turnover.

The division still benefits from the broad diversification of its client base and
product portfolio. As expected, the companies within the Office Equipment Group (OEG)
experienced a slight year-on-year decline in turnover as they tend to be late-cycle
businesses. Thanks to high growth rates in the second quarter, the Plant Equipment Group
(PEG) posted a single-digit increase in turnover overall. With high single-digit rates
of organic growth, the Specialties Group (SPG) recorded the strongest gain. Including
Central, growth here even ran well into double figures.

In the period under review, TAKKT AMERICA generated EBITDA of EUR 14.1 (12.1) million.
This corresponds to an EBITDA margin of 9.1 (8.7) percent. Adjusted for Central, the
EBITDA margin was 8.9 (8.4) percent.

Following the successful launch of Hubert in Germany and France, the brand will be
rolled out into the Swiss market in autumn 2010. The PEG has also been active on the
North American market with the online-only brand Industrialsupplies.com since June.
Furthermore all three groups of the TAKKT AMERICA division are intensifying their
private label engagement.

Business climate gives grounds for more optimistic forecast
For the remainder of 2010, TAKKT expects the economic recovery in Europe and North
America to continue, though with slightly diminished dynamic. “We should be able to
exceed the upper limit of organic growth of two percent targeted at the beginning of the
year. We currently expect to see growth of around three percent. If we achieve this
turnover goal, the EBITDA margin for the whole Group should come close to the lower end
of the long-term target corridor of twelve to 15 percent”, said Dr Florian Funck, CFO.

Conference call
We invite you to directly address the Management Board with your questions. We will be
hosting a conference call for this purpose at 15:00 (CEST) on 29 July 2010, during which
we will be open to questions. To take part, please dial the following number: +49 69
201744-295 (access code: 779134#).

Short profile of TAKKT AG
TAKKT is the leading B2B direct marketing specialist for business equipment in Europe
and North America. The Group is represented with its brands in more than 25 countries.
The product range of the TAKKT subsidiaries comprises over 160,000 items for the areas
of business and warehouse equipment, classic and design-oriented office furniture and
accessories, and supplies for retailers, the food service industry and the hotel market.

TAKKT Group employs some 1,800 staff, has around three million customers worldwide and
distributes more than 55 million catalogues and mailings per year.

TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse’s Prime Standard on
01 January 2003.

IFRS figures for TAKKT Group to the end of Q2 2010

in EUR million

Q2 2010 Q2 2009* Change in % HY 1 2010 HY 1 2009* Change in %
Turnover TAKKT Group 191.0 171.9 11.1 376.8 358.3 5.2
Organic growth 6.6 0.9
TAKKT EUROPE 108.4 98.6 9.9 222.4 218.8 1.6
TAKKT AMERICA (€) 82.6 73.3 12.7 154.5 139.6 10.7
TAKKT AMERICA ($) 105.0 99.5 5.5 204.4 185.8 10.0
EBITDA 23.5 12.6 86.5 52.2 39.5 32.2
EBITDA margin 12.3 7.3 13.9