Interim business progress report on November 9th 2010

Confirmation of 2010 objectives : record year underway

Brussels, 9 November 2010 - In the second half year 2010, Zetes Group’s business remains solid in the Goods ID sector and is up significantly in the People ID sector.

In Goods ID, the business growth observed in the first half year continues to bear out. It is still sustained by retail, pharmaceutical, and postal service customers. In the retail sector, it is mainly in response to supply chain efficiency needs, and in the pharmaceutical sector, it is driven by the new regulatory constraints relating the serialisation of drugs (labelling on production lines). Finally, in the postal service sector, the applications provided are in answer to the growing need for traceability and proof of delivery. In 2010, the Goods ID division will surpass the revenue and EBITDA performances achieved in 2009.

The recent acquisition of PHI DATA’s assets increases the Group’s market share in The Netherlands. The offer of Zetes’ solutions to PHI DATA BV customers will allow a positive contribution to the Group’s results as of the second half of 2011. Acquisitions remain a good vehicle for growth and value generation for the Group.

In People ID, in addition to the revenues related to long term contracts (Belgium, Côte d’Ivoire, Israel and Portugal), the biometric kits destined for the elections in Congo (DRC) were delivered; this significantly increased the division’s revenue. However, with the hardware component of the contract being very high, the EBITDA/Sales margin has decreased and is close to its historical level of 15%. The majority of the service component will roll out in 2011. In Africa, other projects are being carried out for the identification of military servicemen and policemen. A central biometric system (AFIS) is also in the process of being installed in Benin for the identification and elimination of duplicate IDs in the voter list for the United Nations count.

In conclusion, Zetes Group is confident to be able to realize a record year in 2010, with consolidated revenues of €190 million and an EBITDA of €17 million.

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