Trading update on sales and orders for 2Q08 - Record quarter with 47.7% revenue growth

EVS Broadcast Equipment S.A. (BRUX: EVS) (PINKSHEETS: EVBEF)

  * Record 2Q08 revenue of EUR 34.4 million, +47.7% vs. 2Q07 (+52.2%
    at constant exchange rate)
  * Strong traction from big sporting events, and major contract
    signed with Presteigne Charter for EUR 5 million
  * Europe up 127.9%, Asia & Pacific up 56.3%, America down 27.1%
    (16.1% at constant exchange rate) over 2Q07
  * Open order book at July 1, 2008 of EUR 23.2 million, +41.2%,
    including EUR 6.5 million rentals for the Olympics in China and
    overseas
  * Studio represents 53.4% of that order book
  * New 2008 guidance: double-digit growth, driven by big sport
    events and studio acceleration

Liège (Belgium), July 17, 2008, EVS Broadcast Equipment S.A. (BRUX: EVS) (PINKSHEETS: EVBEF), the leader in Professional Digital Video applications for Live, Near-Live and Studio TV Production, today reported its revenue for the second quarter ("2Q08") and the first half ("1H08) of 2008.

Key Highlights

Pierre L'Hoest, CEO of EVS said: "The company experiences a strong momentum during this summer due to our strong involvement inside major sporting events. We are proud about the performance realized by our teams for the UEFA EURO2008TM. This kind of event is the achievement of a long process, including the design of the workflow, the development of the appropriate hardware and software, the set up of the media server in Vienna, the training of hundreds of new operators, and the support to the UMET and the different UEFA broadcast partners present during the event. This prefigures the huge system we are currently deploying with our customers for the Olympics, that is three times bigger."

Commenting on the new guidance, Jacques Galloy, CFO added: "Based on the strong ongoing order intake, we have increased our guidance to a double digit growth year. This summer's big sporting events have catalyzed our business over the last 12 months but we feel that this good business trend should continue. For instance, diversified studio segment sales are expected to exceed 40% growth this year."

Revenue

EVS Broadcast revenue reached EUR 34.4 million in 2Q08, an increase of 47.7% at actual exchange rates (+52.2% at constant exchange rate). In the outside broadcast segment, sales grew by 13.6% to EUR 21.1 million. The studio sales jumped by 181.6% to EUR 13.3 million, which represented 38.7% of total 2Q08 sales, compared to 20.3% in 2Q07.

+-------------------------------------------------------------------+
| 2Q08 | 2Q07 | % 2Q08 / | Revenue - EUR   | 1H08 | 1H07 | % 1H08 / |
|      |      |   2Q07   | millions (1)    |      |      |   1H07   |
|------+------+----------+-----------------+------+------+----------|
| 34.4 | 23.3 |   +47.7% | Total reported  | 59.8 | 43.2 |   +38.6% |
|------+------+----------+-----------------+------+------+----------|
|      |      |          | Total at        |      |      |          |
| 35.5 | 23.3 |   +52.2% | constant        | 61.9 | 43.2 |   +43.3% |
|      |      |          | exchange rate   |      |      |          |
|------+------+----------+-----------------+------+------+----------|
|      |      |          | Total at        |      |      |          |
|      |      |          | constant        |      |      |          |
| 33.4 | 23.3 |   +43.5% | exchange rate   | 59.9 | 43.2 |   +38.7% |
|      |      |          | excluding big   |      |      |          |
|      |      |          | events rentals  |      |      |          |
+-------------------------------------------------------------------+

(1) Refer to the geographical segmentation in annex.

Europe, Middle-East and Africa ("EMEA") revenue increased by 127.9% in 2Q08 to EUR 18.9 million. This confirms the steady developments of the European market, including Eastern Europe. This strong performance of 2Q08 has benefited from the momentum around this summer's big events, especially the EUR 2 million rental agreement for the UEFA EURO2008(TM) soccer cup. Feedback from the broadcasters present at the UEFA EURO2008(TM) was very positive, and the EVS solutions have played a key role in the success of the tournament broadcast operations through the UEFA's LIVEX(TM) concept. The second quarter has also benefited from the large equipment sale agreement with Presteigne Charter for about EUR 5 million, which was split between the EMEA and the APAC regions. Studio sales grew significantly for various applications like drama production, live entertainement shows and near-live programming. Sales in EMEA are clearly supported by a lot of HDTV initiatives that are being launched by various broadcasters, IPTV, cable, or satellite players across Europe, around the European Soccer Finals and Beijing 2008.

America's revenue ("NALA") decreased by 27.1% (-16.1% at constant exchange rate) to EUR 6.9 million, representing 20.2% of group sales in 2Q08. The replacement cycle of Outside Broadcast trucks migrating to HDTV remains a key sales driver, together with important studio project wins with premium customers. For instance, a major network bought additional EVS solutions to expand their studio broadcast center and add more HD equipment for the next football season. Full year 2008 sales in NALA expressed in USD are expected to remain stable compared to 2007.