FISCAL 20052006 YEAR END RESULTS

1
FISCAL 2005/2006 YEAR END RESULTS
(Unaudited estimates)

• June 15, 2006

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Fiscal year 2005/2006

• First year under IFRS
• Results strongly affected by US operations
• Profitable operations in Europe and Asia

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Summary consolidated financial statements
() After capitalization of in-house RD expenses
of  19.9 million on March 31, 2006.
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Sales for the year

• By region
• Sales 391.2 million (-32.2)

03/31/2006
03/31/2005
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Sales for the yearBy platform
FY05/06
FY04/05
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Revenue

• By publisher

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Gross profit

• 161.2 million on March 31, 2006 compared with
  291.5 million on March 31, 2005
• Impact of publisher mix
• Changes in technology
• Impact on prices
• Impact on volume

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Operating expenses

• Operating expenses down 23.6
• Restructuring charges 13.2 million

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Impairment of goodwill

• Decline in market
• Poor Group performance
• Goodwill impairments of 125.4 for the year
• Recognized in operating income

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Financial result

• Financial result of 23.4 million
• Cost of debt 20.1 million compared with 18.6
  million last year.
• 7.2 million of which reflects application of
  IFRS
• Other financial expenses 3.3 million compared
  with income of 13.0 million last year
• Results as of 03/31/05 reflect 15.6 million
  from stock offering
• Foreign exchange loss of 2.1 million in March
  2006 ( 0.0 in March 2005)

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Geographical breakdown
() including the impact of the impairment of
goodwill () including the proceeds from the
sale of Hasbro
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Summary balance sheet as of March 31, 2006
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Cash flow statement
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Net debt

• As of March 31, 2006, the net debt (IFRS) had the
  following maturities

() the OCEANE 2009 bonds have a redemption value
of  125.4 million. The difference between their
book value and their redemption value comes from
the application of IAS 32 and 39.
15
New agreement with banks

• Repayment extension to June 15, 2006 (from April
  1, 2006) for the first installment of 13.4
  million on 2008 notes
• Maturity of 25.5 million in medium-term debt
  rescheduled to March 31, 2008
• One-year operating credit facility of 20
  million secured
• Possible offering of local credit facilities in
  Europe, backed by trade receivables, for up to
  30 million.

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Asset management

• Hasbro license agreement renegotiated
• ? net gain of 36.6 million
• Sale of assets for 20 million
• As of March 31, 2005
• Games.com
• Timeshift
• After year-end
• Stuntman

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PUBLISHING PROGRAM FOR 2006-2007
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Titles for next-generation consoles X360, PS3,
PSP, NDS, Wii

• Alone in the Dark
• Test Drive Unlimited
• Dungeons Dragons Tactics
• Asterix Obelix Mission Ouifix
• Totally Spies
• Rainbow Islands Evolution
• Dragon Ball Z Budokai Tenkaichi 2
• Battlezone
• Hot Pxl

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Arthur and the MinimoysPS2-PSP-PC-GBA-NDS

• Directly inspired by the universe created in the
  Luc Besson story, already a popular success
• The game and film of the same name are slated for
  release in late 2006, accompanied by an
  international promotional campaign

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E3 awards acknowledged quality

• NWN2
• Winner of GameSpots E3 2006 Best Role Playing
  Award
• Finalist for GameSpots E3 2006 Best Stage Demo
  Award
• Runner-up for IGNs E3 2006 Best Role-Playing
  Game Award
• Test Drive Unlimited
• Winner of Best Racing Game GameTrailers
• Finalist for GameSpots E3 2006 Best Racing
  Game Award
• Runner up for Best Racing Game - Team Xbox
• Super DBZ and DBZ Budokai Tenkaichi 2
• Runners-Up for IGNs E3 2006 Best PS2 Fighting
  Game Award
• Arthur the Minimoys
• Runner-Up for IGNs E3 2006 Best PS2 Surprise
  Award
• DD Tactics
• Runner-Up for IGNs E3 2006 Best PSP
  Role-Playing Game Award
• Runner-Up for IGNs E3 2006 Best PSP Strategy
  Game Award
• Alone in the Dark
• Winner of Best Adventure Game - Team Xbox
• Earthworm Jim
• Nominated for IGNs E3 2006 Biggest PSP
  Surprise Award

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Test Drive Unlimited for Xbox 360-PC-PS2-PSP

• The very first online, massively multi-player
  racing game is considered the future game of
  reference in its genre for next-generation
  consoles.

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Neverwinter Nights 2 for PC

• The sequel to the popular RPG franchise has sold
  more than two million copies worldwide, and
  boasts one of the largest and most active fan
  bases for role-playing games.

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Alone in the Dark for Xbox 360-PS3-PC

• The original survival horror franchise returns
  for PC and next-generation consoles.
• Earlier versions of this historical franchise
  sold 6 million copies.

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Hot Pxl for PSP

• 200 fast and furious micro-games

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Dragon Ball Z Budokai Tenkaichi 2for PS2 and Wii

• First Dragon Ball Z game for the future Nintendo
  Wii console

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Dungeons Dragons Tactics for PSP

• The first Dungeons Dragons game for PSP marks
  the DD franchises big debut for
  next-generation portable systems.

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Asterix Obelix Mission Ouifix for NDS-PSP

• The latest edition of this licensed game returns
  in style for next-generation consoles

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Priorities

• Reducing overall debt
• US operations

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