(07/09/2006) EVS BROADCAST EQUIPMENT : Record 2Q06 earnings, strong summer order book and revised guidance for 20

Liège (Belgium), 7 September 2006, EVS Broadcast Equipment S.A. (ISIN BE0003820371, Bloomberg EVS BB, Reuters EVSB.BR), the leader in Professional Digital Video applications for Live, Near-Live and Studio TV Production, reports today its second quarter ("2Q06") and first half-year 2006 ("1H06") financial results and provides a business update: Highlights: - RECORD 2Q06 GROUP SALES OF 22,4 MILLION ?, UP 180% vs. 2Q05 - 200% GROWTH IN NEAR-LIVE TV STUDIO SOLUTIONS - 30 JOBS CREATED OVER LAST 12 MONTHS - RECORD 2Q06 EPS OF 0,61, UP 4x vs. 2Q05 - XDC DILUTION TO 47% LEADS TO 3,4 MILLION EUR DILUTION PROFIT - VERY STRONG SUMMER ORDER BOOK OF 28,7 MILLION EUR, +12% vs. 2005 - REVISED GUIDANCE : 2006 SALES GROWTH OVER 40% Group Revenue As announced early July, EVS delivered another record quarter with 2Q6 sales topping 22,4 million EUR. This compares to 8,0 million EUR in the same period of last year. It should be noted however that EVS sales for the year 2005 showed a strong seasonal pattern, like the overall market trend, resulting in a weak first half and a much stronger second half. This pattern has been amplified for EVS following the release of the new XT[2](R) platform and its related applications in June 2005. For 1H06, sales totalled 43,0 million EUR, up 162% from last year at a constant exchange rate. XDC sales of 0,9 million EUR for 1H06 are fully consolidated in reported revenue. Commenting on 1H6 results, Jacques Galloy, CFO said: "Continued sales growth translates into strong operational gearing, leading margins to record levels. Seasonally speaking, we may have overestimated the impact of the large 1H06 sport events on our full year 2006 revenues. Our long term growth drivers (tapeless, HDTV, studio, speedclipping and sport), have been sustaining business growth. Therefore, the second half of the year should beat our earlier expectations".

Revenues ? in million EUR	2Q05	2Q06	1H05	1H06	% 1H06 / 1H05
Total reported	8,0	22,4	16,2	43,0	+ 164 %
Total at constant exchange rate	8,0	22,2	16,2	42,5	+ 162 %
By segment:
TV systems (Broadcast)	7,8	21,9	15,9	42,1	+ 165 %
Digital Cinema (XDC)	0,2	0,5	0,3	0,9	+ 200 %
Total	8,0	22,4	16,2	43,0	+ 165 %

Broadcast "Upon buoyant broadcast market conditions, EVS continues to gain market share thanks to the reliability and power of its XT[2](R) platform combined with new applications like the [IP] Director(R). 2006 sets another great year for EVS for two main reasons. First, EVS has introduced new innovative technologies to leverage the tapeless production of many TV contents in live and near-live environments. Speed is essential in today's world. Reliability is critical for live captures. EVS made a major impact at the World Cup with the deployment of a big central server what clearly sets the trend for years to come for such major productions. Second, our open format policy and our continuous efforts to develop new dedicated tools over recent years allow us to firmly enter the fixed studio production market.", said Pierre L'Hoest, CEO of EVS TV activities. EVS Broadcast sales reached 42,1 million EUR over the first half-year, up 164% compared to 1H05. This is the combined effect of sales growth in all regions: Europe, Middle-East and Africa (EMEA) +189%, North America and Latin America (NALA) +105% and Asia Pacific (APAC) +194%. This compares to an average 15-20% broadcast equipment market growth. Regarding EVS, the professional European market is performing strongly despite consumer HDTV penetration being currently weak, which is mainly due to overall market delays in HDTV consumer receivers and set-top boxes. Undoubtedly, some European broadcasters have decided to invest in EVS technology ahead of the large 1H06 events (in 2005 and 1H06) as most sales have been related to both regular weekly sports and non-sport applications. The US market is pursuing its HDTV deployment thus calling for more and more HDTV production tools. The penetration of HDTV ready equipment at broadcasters is rather linked to household penetration which should move from 15% to 20% in the near term. EVS gets strong products references within large networks. Latin America sales are expected to double compared to 2005. Finally, the Asia & Pacific region continues to achieve strong revenue growth with diversified orders from major broadcasters and independent production companies in Japan, China, India, Australia, Singapore and Korea. Sales should more than double in this region over 2006. Thirty percent of the period's sales relate to studio networked systems designed for talk shows, entertainment shows, news or automated play-out, for which "speed to air" is a key success factor. EVS will be presenting its latest line up of products at booth 8.191 of the IBC2006 Tradeshow in Amsterdam between September 8th and 12th. The focus will be on integrated tapeless solutions for the critical near-live environment. The transition from Standard Definition to High Definition still remains to be a major issue. EVS shall demonstrate in the new Partners' Village area how its products interchange seamlessly between EVS servers and the most popular post production solutions. EVS favours an open architecture policy. Another key element in the rapid acceptance and use of EVS equipment in major production systems this year has been the end-to-end management of media, based on the new version of the [IP] Director(R), for which a dedicated section of the booth will be devoted. EVS offers a wide range of reliable modules and applications based on the XT[2](R) platform to design the most efficient workflows and cutting edge "speedclipping" solutions. EVS has just released its Quarterly Business Newsletter with case studies relating to the World Cup, a studio project at Fuji TV (Japan) and Roland Garros Tennis Cup. The newsletter provides an update on the commercial highlights and recent deals. Please refer to www.evs.tv. XDC - Digital Cinema For last six years, XDC, the pioneer in Digital Cinema, has initiated early stage deployment in Europe and currently . has 80% market share (230 screens over 8 countries) of currently installed high-end digital screens. Main technological challenges have been fixed but less than 1% of the total potential European market (35.000 screens) has been digitised. Incumbent and new market players do currently negotiate to define the appropriate business model between exhibitors, distributors and service providers. Great is the temptation to acquire market shares. Consequently, XDC's current high market share shall decline as market develops. More than 220 different digital movies have already been played worldwide on XDC systems for more than 150.000 screenings. XDC provides complete projection solutions to exhibitors and specialised digital services to movie distributors (eg. encoding, encryption, logistics, quality assurance, sub-titling). More than 230 systems have been deployed in Europe thus far (Sweden, Germany, Austria, Benelux, France, The Netherlands, Luxembourg, Switzerland, Belgium etc). As announced in mid-June, XDC raised an additional 12.5 million EUR of equity to roll-out more than 500 additional screens over the next 30 months. As a consequence, EVS share of ownership in XDC has decreased to 47% from 60%, leading to a change in the consolidation method of XDC in the consolidated accounts of EVS. The XDC 47% stake shall be booked in the equity accounting method after June 30, 2006 rather than globally consolidated as it had been the case prior to this date. In other words, for IFRS compliance, while the Profit and Loss account has been fully consolidated over the first half of the year, the EVS balance sheet includes XDC at equity as of June 30, 2006. XDC losses (100%) from operating activities for 1H06 are 2.9 million EUR. The 60% to 47% reduction results in 3,4 million EUR in diluted profit over 2Q06. Result Over 1H06, consolidated gross profit reached 80%, 1 percent point better than 1H05. The 85% TV gross profit is partly offset by XDC negative gross profit. The group's staffing as of June, 30 2006 was 191 (including 152 for Broadcast and 39 for XDC). On average, there were an equivalent of 180 full time employees during 1H06, up 19% versus 1H05 (+24 FTEs for TV and +6 FTEs for XDC). Over the first half, Sales & Administrative expenses were 30% higher than last year due to higher sales commissions linked to increased revenue, higher marketing and NAB2006 expenses, and the recruitment of additional Sales, Marketing and Training staff to sustain EVS growth into both the outside broadcast and the studio market segments. As a consequence, 1H06 reported group share operating margin (EBIT) reached 60% of revenue compared to 39% in 1H05, to record 65% in 1Q06 and to 56% in 2Q06. Eventually, one should notice that non recurring 1S06 big events rentals (3 million EUR) generated below average EVS operational margins. The broadcast segment had 66% operating margin (EBIT) or 27,6 million EUR over the first half year while Digital Cinema recorded a negative 2,9 million EBIT over the same period. As XDC tax losses may not be offset against EVS TV profits, reported consolidated tax rate of 33% does not reflect reality. In fact, the actual EVS TV tax rate has decreased by 3 percent points from 34% in 1H05 down to 31% in 1H06 due to overseas sales growth. For consolidation purposes, no Deferred Tax Assets have yet been booked for the cumulated XDC losses. Taking into account XDC dilution profit, basic net profit per share reaches 1,46 EUR over 1H06, up 370% compared to 0,31 EUR for 1H05. Net Cash and Corporate Events Over the first half of the year, EVS has bought back 144.000 own shares at an average acquisition price of 37,7 EUR. On June 19, 2006, the company cancelled 200.000 own shares and on June 20, 2006 paid out a gross 1,20 EUR dividend per share. On June 30, 2006, the balance sheet (with XDC at equity) states a balance of 28,7 million EUR in cash and 2,8 million in long-term bank debts, leading to a net cash balance of 25,9 million EUR (thus excluding XDC). Annualised return on equity yields above 90%. As the Transfer Agents have debited most of that dividend in early July, 8,6 million EUR dividends payable still appears in the group books as of June 30, 2006. At the end of the quarter, EVS share capital equalled 13.875.000 outstanding shares of which 293.402 are owned by the company. As of September 7, 2006, 202.800 warrants are outstanding with an average strike price of 18,07 EUR and an average maturity of 2,4 years.

Profit & Loss	2Q05	2Q06	1H05	1H06	1H06 / 1H05
				(1)
Key Consolidated figures ? IFRS in million EUR
Revenue	8,0	22,4	16,2	43,0	164%
Gross Profit %	78%	79%	79%	80%	+1 pct
Operating result - EBIT	2,3	11,8	5,6	24,7	339%
Operating result - EBIT group share	2,7	12,5	6,3	25,9	308%
EBIT group share margin %	34%	56%	39%	60%	+21 pct
Profit before taxes and exceptionals	2,3	11,7	6,0	24,7	312%
XDC Spin-out dilution profit	-	3,4	-	3,4
Income taxes	-1,1	-4,3	-2,3	-9,1	290%
Net profit ? Group share	1,7	11,4	4,4	20,1	359%
Net profit from operations ? Group share (2)	1,7	8,4	4,4	17,3	292%
Net profit margin %	21%	37%	27%	40%	+13 pct
Per share in EUR
Weighted average number of subscribed shares for the period less treasury shares	13.715.345	13.649.553	13.710.741	13.677.916
Weighted average number of fully diluted number of shares	13.947.595	13.796.553	13.942.991	13.824.916
Basic earnings ? share of the Group per share	0,12	0,84	0,32	1,47	361%
Fully diluted earnings ? share of the Group per share	0,12	0,83	0,31	1,46	363%
Basic net profit from operations ? share of the Group per share	0,13	0,61	0,32	1,26	292%

(1) EVS has owned 60,17% of XDC S.A. until June 27, 2006 which reduced to 47,20%. For 1H06 consolidation purposes, XDC has been fully consolidated over the entire period. (2) The net profit from operations is the net profit (share of the group) excluding non-recurring exceptional results, taking into account tax items. This notion has not been reviewed by our auditors. Outlook 2006 For more than a decade, EVS has been pioneering digital tapeless workflows and has successfully combined unique hardware & software solutions dedicated to niche markets: live, near-live production and playout for broadcast sports, news and entertainment. The teams execute the "Speed to Air strategy" and share the same key values: customer proximity, reliability, reactivity and open architecture policy. EVS is increasingly considered as a trusted partner by its major customers. The excellent progress on orders reflects the ongoing success of the XT[2](R) platform combined with new applications like [IP] Director(R) in all market segments and over all regions. The Board and the teams believe that the underlying demand for EVS products will continue to be supported by the combination of the following long term growth drivers: transition to tapeless workflows from 70% tapebased penetration today, replacement market due to HD format conversion, launch of new products to address the near-live studio production needs, demand of new "speedclipping" tools to fragment the content to multimedia environments, and an increased focus of broadcasters / IPTV and advertisers on large popular sports to gain new viewers. EVS currently benefits from this strong momentum due to all of these drivers. The open sales orders as of 30 June 2006 currently totalled 19,2 million EUR (excl. XDC) and orders received during the months of July and August for sales to be invoiced in 2006 amounted to 9,5 million EUR (excl. XDC). This leads to a total worldwide summer order book of 28,7 million EUR compared to 25,6 million EUR during the same period last year. This amounts to an increase of 12%. While visibility remains limited as usual, the Board gains confidence with the strong order flow following the sport events which underlines the company's potential to gain market shares in new segment opportunities. Following the summer order intake, the Board now anticipates that TV sales for 2006 should increase by more than 40% year-to-year to exceed 75 million EUR. Earnings shall increase slightly more due to the balanced cost structure of the group. In 2007, unlike 2006, the group shall not have large exceptional equipment rental and service agreements for major worldwide sport events which shall have represented around 5 million EUR in 2006. The group continues to actively recruit individuals with key skills to reinforce its R&D competitiveness, market presence, system design, products branding, and training for thousands of EVS applications users. Analyst & Press meeting and Conference Call: EVS will hold today an analyst meeting in Liège at 10:30 CET, with Pierre L'Hoest, EVS Broadcast CEO and Jacques Galloy, Group CFO. A conference call in English will be held at 4:00 PM (CET) to offer another opportunity to discuss the results and recent developments. Please contact corpcom@evs.tv to receive the dial-in number and the presentation. Corporate Calendar: Thursday 9 November 2006: 3Q06 sales & earnings End of February 2007: 2006 annual sales & earnings Tuesday 15 May 2007: Annual General Meeting of Shareholders For more information, please contact: Jacques GALLOY, Director & CFO, EVS Broadcast Equipment Liege Science Park, 16 rue du Bois Saint-Jean, B-4102 Liège-Ougree, Belgium Tel : +32 4 361 7014. E-mail : corpcom@evs.tv; www.evs-global.com Forward Looking Statements: This press release contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS's management and are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company's concentration on one industry, decline in demand for the company's products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. EVS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. About EVS Group : EVS Group designs, develops and markets professional digital equipment for Television (EVS Broadcast) and Cinema (XDC). The Group employs over 190 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](R) 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. The full press release including detailed Profit & Loss account, balance sheet, cash-flow statement, segment information, accountants report and notes to the accounts is available on EVS website www.evs-global.com, / investors / financial news. © CompanynewsGroup