Thomson Delivers Digital Video Recorder (DVR) to Malaysian Operator, ASTRO

Market Wire, June, 2006

DVR delivery within scope of long term, set-top box technology agreement with ASTRO further strengthens Thomson's decoder market share in the Asia-Pacific Region

Paris - 29 June, 2006 - Thomson (Euronext Paris:18453; NYSE: TMS) today announced it will begin shipping a new set-top box with digital video recorder this month to ASTRO, the leading satellite TV operator in Malaysia. Under the terms of a contact signed beginning of this year which gave Thomson the status of lead developer and supplier of set-top boxes and associated technology, Thomson is already providing ASTRO with an entry-level digital satellite TV set-top box in support of the operator's ongoing customer acquisition programme. The deal to provide this new set-top box with digital video recorder coupled with an extension to the existing contract for entry-level set-top boxes is the fruit of Thomson's commitment to broaden both its media and entertainment product offering and client base globally including in the Asia Pacific region.

Thomson Technology to Help Drive ASTRO's Growth Strategy

With over 1.8 million residential TV subscribers across Malaysia, ASTRO is the largest multi-channel TV business in Asia, outside Japan. The company is continuing to increase subscriber numbers by extending the content and services it provides customers. The new Thomson set-top box, for example, will enable ASTRO to launch Malaysia's first DVR service. In addition to the recording functionality, advanced features such as pausing or rewinding live TV, will give ASTRO subscribers greater control, choice and flexibility over what they watch and when, than ever before.

Customer acquisition is a priority for ASTRO and Thomson's set-top box expertise and technology will provide it with fully-featured products to help the operator achieve its new subscriber targets and tap new revenue streams.

"We are very excited to be launching the new DVR technology in Malaysia, re-enforcing our position of product innovator in the television domain. The continued expansion of our subscriber base in Malaysia is testament to the quality and variety of programmes and services we offer and the new generation platform is a perfect example of our desire to lead the field. We are very pleased to renew our long term partnership with Thomson drawing on its innovations, expertise and proven international track record." said David Butorac, Group Chief Operating Officer at ASTRO.

"We are delighted to have achieved yet another milestone as ASTRO's lead supplier for set-top boxes," said Koen van Driel, CEO, Satellite, Terrestrial & Cable Business Unit, Thomson. "In selecting our DVR solution, ASTRO has demonstrated its confidence in Thomson's ability to bring advanced content-delivery platforms to market. When taken with our agreements with major operators in the region such as Starhub in Singapore, AUSTAR in Australia and Tata Sky in India , this contract places Thomson at the forefront of the Asia-Pacific set-top box market," he concluded.

* * *

Certain statements in this press release, including any discussion of management expectations for future periods, 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 factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

* * *

About Thomson World leader in digital video technologies

Thomson (Euronext Paris: 18453; NYSE: TMS) provides technology, services, and systems & equipment to help its Media & Entertainment clients - content creators, content distributors and users of its technology - realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA, and Thomson brands. For more information: http://www.thomson.net .

Thomson's Access Platforms and Gateways (AP&G) activity, part of the company's systems and equipment division, is a leading supplier of digital entertainment receivers to the world's major satellite and terrestrial broadcasters, cable operators and telecom service providers. It offers a full range of digital set-top boxes, phones, broadband modems and gateways with modular VoIP, IPTV and wireless capabilities. Through its Next Generation Networks business unit, Cirpack, it is also one of the leading suppliers of softswitch solutions to migrate telecom infrastructures to NGN (Next Generation Networks) and IMS (IP Multimedia Subsystem) enabling massive deployments of broadband telephony and IP Centrex, for instance. Products are marketed under the RCA, THOMSON and CIRPACK brands. You can find more information on AP&G's products at www.thomson-broadband.com and www.cirpack.com