Silver Lake Partners Announces $500 Million Investment in Thomson

Business Wire, July 22, 2004

MENLO PARK, Calif. & NEW YORK -- Silver Lake Partners, the leading private equity firm focused on large-scale investments in technology and related industries, announced today a definitive agreement to invest $500 million in Thomson (Euronext: TMM; Paris: TMS.pa)(NYSE: TMS). Through its Technicolor, Grass Valley, THOMSON and RCA brands, Thomson is the world leader in integrated solutions covering technologies, equipment and services for the entertainment and media industries.

The investment is Silver Lake's largest investment to date and its first direct investment in a European company. It is also the first transaction funded principally from SLP II, the $3.6 billion fund closed in April of this year.

The investment will be in the form of convertible subordinated bonds with a 3% coupon, a EUR 17.50 conversion price, and a maturity date in 2010. On an as-converted basis, Silver Lake's investment represents an ownership stake of approximately 7.5% in Thomson. David Roux, a founding principal of Silver Lake, will join Thomson's board of directors.

Silver Lake's investment anchors a strategic plan aimed at strengthening Thomson's global leadership position, another key component of which is the appointment of Frank Dangeard, currently Head of Financial Rebalancing and Value Creation at France Telecom, as Chief Executive Officer of Thomson. Dangeard has served as Non-Executive Chairman of Thomson since 2002 and previously was Deputy Chief Executive Officer from 1997 to 2002.

Dangeard said, "We chose to work with Silver Lake because we believe they will serve as a strategic partner for Thomson as the Company enters its next stage of growth and development. I look forward to working with the Silver Lake team as we accelerate the implementation of the Company's strategy, and I welcome Dave Roux to the Board."

Roux said, "As the media and entertainment industries become increasingly digital, Thomson is in a truly unique position to provide its customers with integrated solutions across the entire digital media services value chain. This investment underscores our confidence in Thomson's growth and value potential. We're excited to partner with Frank Dangeard and the rest of the Thomson management team as they execute the group's strategic plans."

Silver Lake's investment, the appointment of Dangeard as chief executive officer and other elements of Thomson's strategic plan have been approved by Thomson's board of directors and are subject to approval by Thomson's shareholders in September of this year.

About Silver Lake Partners

Silver Lake Partners is the leading private equity firm focused exclusively on large-scale investing in technology. Silver Lake seeks to achieve superior returns by investing with the strategic insight of an experienced industry participant, the operating skill of a world-class manager, and the financial expertise of a disciplined private equity investor. Specifically, Silver Lake's mission is to function as a value-added partner to the management teams of the world's leading technology franchises. Its portfolio companies include technology industry leaders such as Ameritrade, Business Objects, Flextronics, Gartner, MCI, Network General, Seagate Technology, and UGS. For more information: www.slpartners.com.

About Thomson

Thomson (Euronext: TMM; Paris: TMS.pa)(NYSE: TMS) is the leading provider of technology and service solutions for integrated entertainment and media companies. By capitalizing on and expanding its leadership positions at the intersection of entertainment, media and technology, Thomson provides end-to-end solutions to content creators, video network operators and manufacturers and retailers through its Technicolor, Grass Valley, THOMSON and RCA brands. For more information: www.thomson.net.