Interim business progress report as of 9 November 2011

2011 on target, with performance expected to be in line with 2010 record year.

Brussels 9 November 2011. The executive management of the Zetes Group confirms that it is on target to meet its objectives for 2011, with performance in line with its 2010 record year. 

In Goods ID, business activity remained strong, with good order intake in the third quarter. Zetes expects 2011 sales of the Goods ID division to exceed those of 2010, thanks essentially to the contribution of ProScan Systems (Pty) Ltd in South Africa (renamed Zetes (Pty) Ltd). Integration of this company is progressing smoothly, confirming that acquisitions remain a good growth and value-creating vector for the Group.

Aside from acquisitions made in 2011, sales and gross margins in Goods ID are stable. EBITDA, however, has been affected by the counter-performance of the North region (UK/Ireland/Nordic) and will be down on 2010.

The People ID division is performing very well, under very high added value service contracts (AFIS, electoral enrolment maintenance kits, etc.), though without major equipment deliveries in the second half. All the long term ("build and operate") contracts are continuing to make a stable and predictable contribution of the division's performance. Zetes expects the People ID division to post a higher EBITDA performance than in 2010.

The Board of Directors has decided to implement a share buy-back programme given that the Group's operations continue to generate sufficient cash flow to cover both its expansion and the needs of this programme.

By way of conclusion, with its mixed Goods ID + People ID model, and with the geographic distribution of its activities, the Zetes group is confident that sales for 2011 will be in line with its 2010 record year. Its EBITDA performance is set to turn out slightly lower, at around EUR 18 million.

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