(27/06/2006) EVS BROADCAST EQUIPMENT : XDC raises 12.5 million EUR and is deconsolidated from EVS Group accounts

XDC closes its second round of financing and raises 12.5 million EUR to leverage its early stage leadership position Liège, June 27th 2006 - The Extraordinary General Meeting of Shareholders of XDC has approved today the second round of financing of the company, raising 12.5 million EUR additional equity. This funding shall allow XDC to further expand its market leading digital cinema network across Europe. Following the successful launch over the last two years, XDC is one of the largest digital cinema networks in the world with more than 230 digitally equipped screens which represent a 75% market share so far in its targeted area : Europe. The XDC business model balances the requirements from movie exhibitors with a full service proposal for a fixed monthly fee and from movie distributors with a secured digital movie logistics platform which reduces print costs by more than 50% on average. XDC enables the long expected roll-out of digital cinema with a dedicated team of 40 experienced staff which covers all of Europe. 2006 shall be a transition year for XDC with the development of both the company customer base and the new hybrid MPEG2-JPEG2000 Cinestore (R) server. EVS and all existing shareholders have participated in the second round and have welcomed a new partner: Powe Capital Management LLP. Existing shareholders were mainly BIP Investment Partners, Vivium Life Private Equity, Partners at Venture, Audiolux, Compagnie du Bois Sauvage, Meusinvest. EVS has contributed 2 million EUR which dilutes the EVS share in XDC affiliate down to 47.20%. This leads to the deconsolidation of XDC in the IFRS consolidated accounts of EVS Broadcast Equipment S.A. as from July 1, 2006. XDC is expected to break-even in 2008 and to expense 4 million EUR at EBITA level in 2006 to create the best practice digital cinema solution provider in Europe. For more information, please contact: Jacques GALLOY, Director & CFO, EVS Broadcast Equipment 16 rue du Bois Saint Jean, B-4102 Liège-Ougree, Belgium Tel : +32 4 361 7014 Fax : +32 4 361 7089 e-mail : corpcom@evs.tv About EVS Group EVS Group designs, develops and markets professional digital equipment for Television (EVS Broadcast) and Cinema (XDC). The Group employs over 180 persons in 10 countries and sells its products to professionals of the video and audio sectors in more than 70 countries. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371. For more information, refer to www.evs-global.com EVS Broadcast is the world leader for Live TV Production Digital Disk Recorders and Related Software Applications, especially in the field of sports. The company's dedicated hardware and software suite offer a complete production platform: live slow motion (LSM), high speed slow motion, replay only, clips generation, quick clips editing, real-time SD/HD video files transfer, time delay, multi-camera recording, metadata association, graphics storage and play-out, digital transmission, multi-format ingest and play-back, audio record & edit, webcasting, mobile phone clipping. Main software applications like the "IP Director" are running on the dedicated robust and flexible hardware the "XT[2] Platform". The world's leading broadcasters, such as NBC, BSkyB, FOX, RTL, NHK, CANAL+, ABC, ESPN, TF1, CCTV, PBS, CBS, BBC, ZDF and many others use EVS' solutions. XDC is pioneering Digital Cinema Logistics and Play-out and operates between the movies distributors and exhibitors. XDC has installed more than 230 digital screens in Europe where it is market leader for end-to-end digital cinema solutions.. © CompanynewsGroup