(09/11/2006) EVS Broadcast - Record 3Q06, 24.1m sales, 71% EBIT margin, Interim dividend 0.48 EUR

PRESS RELEASE - 9 NOV 06 - Before market opening Liège (Belgium), 9 November 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 third quarter ("3Q06") and first nine months of 2006 ("9M06") financial results and provides a business update: Highlights: - RECORD 3Q06 SALES OF 24,1 MILLION €, UP 22% vs. 3Q05 - 71% EBIT MARGIN FOR 3Q06 - RECORD 3Q06 EPS OF 0,81, +29% vs. 3Q05 - STRONG BROADCAST ORDER BOOK OF 17,4 MILLION EUR - STUDIO SOLUTIONS REPRESENT 33% OF THE ORDER BOOK - 2006 SALES TO EXCEED 80 MILLION EUR, +50% vs. 2005 - YEAR 2007 TO BE A TRANSITION YEAR - BOARD REORGANISATION - INTERIM DIVIDEND OF 0,48€ PER SHARE Group Revenue and Performance Pierre L'Hoest, CEO of EVS said: "Following a very strong first half driven by major sport events, the third quarter reaches another record quarter with 24,1 million EUR revenues, up 22% compared to the third quarter of last year. Over the first nine months, this increase even represents +86% or an additional 30,5 million EUR in absolute terms to 66,1 million EUR. This great performance is explained by the overall successes of our key digital products XT[2](R) and [IP]Director(R) in all territories where our teams are working very hard to manage this continuous growth for the fifth quarter in a row". Commenting on the results, Jacques Galloy, CFO said: "Continued sales growth translates into strong operational gearing, leading margins to record levels. The 71% EBIT margin for the third quarter 2006 leads to a 68% EBIT margin for the first nine months of 2006, compared to 60% in 2005. The strong combination of reliable dedicated hardware, innovative software applications, engineering design and field support fuelled EVS growth in both sales and earnings. The second half of the year shall clearly beat our earlier expectations".

Revenues - in million EUR	3Q05	3Q06	9M05	9M06	% 9M06 / 9M05
TV Systems (Broadcast) 1)
Total	19,7	24,1	35,6	66,1	+ 86 %
Total at constant exchange rate	19,7	24,0	35,6	65,9	+ 85 %

1) As from June 27, 2006, EVS has decreased its stake in XDC from 60.17% down to 47.20%. Accordingly, XDC S.A. is accounted for at equity and is no longer fully consolidated in EVS group consolidated accounts. Broadcast EVS Broadcast sales reached 66,1 million EUR over the first nine months, which is a +85% growth at constant exchange rate. Ahead of the new TV season and program grids starting September, EVS delivered record volumes to broadcasters during summer, partly to fixed studio production environments. This evidences EVS equipment lower and lower dependency on large worldwide sporting events. Major broadcasters are adopting our evolutionary platform which fits their complex production workflows. Geographically, EVS Broadcast sales grew in all regions over the first nine months of 2006. Europe, Middle-East and Africa ("EMEA") sales added 16 million EUR (+74%) from Russia to Morocco and from Germany to the UK, 55 % of sales being HD. As outlined by "Das Medien Bulletin - September 06", all first 71 HD Trucks in Europe are powered by the XT[2] (R) HD platform. 3Q06 sales included the last third of the World Cup equipment rental & service agreement. America's revenues ("NALA") increased by 11 million USD (+93%) thanks to the replacement cycle of outside broadcast trucks migrating to HDTV but also to major studio projects wins within premium customers. Last but not least, Asia and Pacific ("APAC") sales grew by +129% (or 6 million EUR) to 10,7 million EUR mainly thanks to Japan, China, India, Australia, Singapore and Korea. EVS technology shall power the upcoming Asian Games in Doha (Qatar) through its partnership with HBS, which shall deploy a central media server with dozens of online accesses to the thousands of videoclips associated with metadata. Twenty six 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. Sales for near-live studio solutions amount to 17,3 million EUR, + 79% compared to 2005. EVS presented successfully its latest line up of products at IBC2006 Tradeshow in Amsterdam last September. Customers warmly welcomed EVS integrated tapeless solutions for the critical near-live environment and much appreciated the demonstrations in the new Partners' Village area to interchange seamlessly high-end video content between EVS servers and the most popular post production solutions like Apple, AVID, Leitch etc. EVS favours an open architecture policy. XDC - Digital Cinema Following EVS dilution in XDC from 60,17% down to 47,20% last June 27, 2006, XDC accounts is booked in the equity accounting method after June 27, 2006 rather than globally consolidated as it had been the case prior to this date. While only 1% of European, screens have been digitised so far, major discussions are ongoing regarding the business model of Digital Cinema. Between Theater exhibitors, movie distributors and digital service providers, the key issue remains who shall bear the cost of deployment and who shall benefit from the annual 1 billion EUR saving from the switch-over to digital. 2006 is a transition year for XDC. Early 2007, XDC shall be one of the first companies in the world to release the long awaited hybrid MPEG2-JPEG2000 server. Building a first class service company addressing the complex and fragmented European cinema market, XDC shall incur a loss of around 5 million EUR in 2006. The recent additional 12,5 million EUR fund raising by both existing and new shareholders allows XDC to gain traction in this promising market. Result Thanks to higher sales combined with the fixed costs base and the deconsolidation of XDC as from June 27, the 9M06 EBIT margin jumped to 68% compared to 60% for 9M05, ex. XDC. Over the same period, gross profit reached 86%. Over 3Q06, the gross profit of TV activities yielded 88%, highlighting the software & service profile of the company. As explained earlier, 2Q06 higher expenses included non-recurring charges as stock based compensations to employees and new corporate marketing policy. The Amsterdam IBC trade fair in September has also been less expensive than the USA NAB trade fair in April. Eventually, one should notice that non recurring big events rentals (4,5 million EUR over 9M06) generated below average EVS operational margins. Taking into account XDC 3,3 million EUR dilution profit, basic net profit per share reaches 2,27 EUR over 9M06, up 141% compared to 0,94 EUR for 9M05. Net Cash and Corporate Events On September 30, 2006, the group balance sheet shows 33,7 million EUR in cash at the bank and 2,8 million in long-term bank debts, leading to a net cash position of 30,9 million EUR. At the end of the quarter, EVS share capital equalled 13.875.000 outstanding shares of which 290.902 are owned by the company. At the same date, 199.100 warrants are outstanding with an average strike price of 18,14 EUR and an average maturity of 2,4 years.

Profit & Loss	3Q05	3Q06	9M05	9M06	9M06 / 9M05
Key Consolidated figures - IFRS in million EUR
Revenue	19,7	24,1	35,6	66,1	+86%
Gross Profit %	87%	88%	85%	86%	+1 pct
Operating result - EBIT	13,8	17,0	21,2	44,6	+110%
EBIT margin %	70%	71%	60%	68%	+8 pct
Profit before taxes and exceptionals	13,9	16,5	21,7	44,2	+103%
Income taxes	-4,6	-5,6	-7,0	-14,7	+112%
Net gain/(loss) associated with the discontinued operation	-1,1	0,0	-2,9	0,4
Net profit - Group share	8,6	10,9	13,0	31,0	139%
Net profit from operations - Group share	8,6	11,0	13,0	28,3	117%
Net profit margin %	44%	46%	37%	43%	+6 pct
Per share in EUR
Weighted average number of subscribed shares for the period less treasury shares	13.718.687	13.581.951	13.713.436	13.645.576
Weighted average number of fully diluted number of shares	13.945.247	13.779.637	13.943.768	13.809.657
Basic earnings - share of the Group per share	0,63	0,80	0,94	2,27	141%
Fully diluted earnings - share of the Group per share	0,62	0,79	0,93	2,25	142%
Basic net profit from operations - share of the Group per share	0,63	0,81	0,95	2,08	119%

(1) As from June 27, 2006, EVS has decreased its stake in XDC from 60.17% down 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. Outlook 2006 Executing the "Speed to Air" strategy, EVS serves hundreds of TV stations worldwide with its high-end digital video and audio applications, especially in the field of live sports and near-live studio production where the company has developed leadership positions on niche markets. The migration from tape-based operations towards integrated tapeless workflows is underway and will last during the next decade. This process is accelerated by the transition from Standard Television to High Definition Television because new equipment needs to interoperate with digital solutions which shall be High Definition. Hence, EVS directly benefits from the following long term growth drivers: increasing number video distribution channels like IPTV, 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 Board and the teams believe that the underlying demand for EVS products will continue to be supported by the transition to HDTV which shall impact the business over a long period of time and shall follow usual equipment acquisition wave patterns. Open orders for sales to be invoiced in 2006 as of 30 September 2006 amounted to 9,9 million EUR. Orders received during the month of October to be invoiced in 2006 amounted to 4,9 million EUR. At the end of October 2006, EVS has open orders in-hand for invoicing in 2007 amounting to 2,6 million EUR. This leads to a total order book of 17,4 million EUR on 31 October 2006, compared to 20,3 million EUR during the same period last year (incl. 4,0 million EUR for the large sporting events rental revenue). Last but not least, one should notice that 33% of our order book is dedicated to Studio Solutions. Based on current analysis and market conditions, the Company expects 2006 revenues and earnings to be strongly better than in 2005. Indeed, secured 2006 TV sales as of October 31 shall exceed 80,0 million EUR compared to 49,1 million EUR ex. XDC at the same date last year, or an increase exceeding 60%. Hence, 4Q06 revenues could even exceed 4Q05. Despite buoyant market conditions, visibility remains limited in the rapidly changing broadcast equipment market. The track record of the company evidences strong growth during even years (known as "sport" years) balanced by following transition years. Moreover, large equipment rental agreements have so far been fuelling the even years revenues, like in 2006 with 5,5 million EUR from the Winter Olympics, the Commonwealth Games, the World Cup and the Asian Games. One should notice that 50% of EVS customers do acquire EVS equipment to rent them to broadcasters for weekly sporting events or regular championships. The development of the regular near-live studio segment should reduce this company bi-annual seasonality. Thus, following a very strong even year driven by large sport events, the Board believes the company shall achieve a transition year in 2007 during which it shall continue to grow in its existing markets, reinforce its organisation, grow its presence in the near-live studio production market niche, develop new tools and applications, and open new offices. Board reorganisation Working 50% of his time as Managing Director of XDC since 2 years and 50% for his private investments, Laurent Minguet, founding member, formally resigns as Co-Managing Director of EVS and is replaced by Michel Counson, founding member and CTO of EVS Broadcast who shall become co-Managing Director with Pierre L'Hoest, founding member and CEO EVS Broadcast. On his turn, for corporate governance reasons, Michel Counson resigns as Chairman of the Board of Directors and is replaced by Michel Delloye, representing Cytindus S.A., significant shareholder for the last 9 years and former CEO of RTL Group. Interim Dividend Given the strong performance of the current year, the Board has decided to distribute an interim dividend of 0,48 EUR per share, except for own shares. It should be paid by early December, subject to the limited review of the figures as of 30 September 06 by the Group auditors. Further information shall be communicated in due time. 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, 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 22 February 2007: 2006 annual sales & earnings Thursday 10 May 2007: 1Q07 sales & earnings Tuesday 15 May 2007: Annual General Meeting of Shareholders Thursday 6 September 2007: 2Q07 sales & earnings Thursday 8 November 2007: 3Q07 sales & earnings 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.. ANNEX 1: EVS GROUP - IFRS CONDENSED CONSOLIDATED INCOME STATEMENT

		Restated				Restated
(In thousands EUR)		3Q05		3Q06		9M05		9M06
Revenue		19.659		24.073		35.570		66.128
Costs of sales		-2.460		-2.944		-5.275		-9.400
Gross Profit %		87%		88%		85%		86%
Selling and administrative expenses		-2.229		-2.501		-5.965		-7.537
Research and development expenses		-988		-1.461		-2.961		-4.011
Other revenue		192		84		233		271
Other expenses		-349		-98		-324		-179
Stock based compensation and ESOP plan		-25		-76		-53		-450
Impairment on Tax Shelter Assets		-		-58		-		-176
EBITDA		14.293		17.494		22.330		46.036
Operating Profit (EBIT)		13.801		17.019		21.225		44.647
Operating Margin %		70%		71%		60%		68%
Net interests		11		138		142		413
Other net financial incomes / (charges)		104		-51		315		-332
Share in the result of the enterp. accounted for using the equity method		22		-596		47		-526
Profit before taxes (PBT)		13.939		16.509		21.729		44.202
Income taxes		-4.628		-5.615		-6.970		-14.748
Net profit for the year from continuing operations		9.310		10.894		14.759		29.454
Net gain/(loss) associated with the discontinued operation : (1)
XDC loss until dilution as of June 27, 2006		-1.135		-		-2.921		-2.976
Dilution profit on XDC refinancing		-		-		-		3.368
Net profit for the year		8.175		10.894		11.838		29.846
Attributable to :
Minority interests		402		-		1.121		1.180
Equity holders of the parent company		8.578		10.894		12.959		31.025
Net profit from operations - share of the group (2)		8.607		11.027		13.025		28.328
RESULT PER SHARE		3Q05		3Q06		9M05		9M06
(in number of shares and in EUR)
Weighted average number of subscribed shares for the period less treasury shares		13.718.687		13.581.951		13.713.436		13.645.576
Weighted average number of fully diluted number of shares		13.945.247		13.779.637		13.943.768		13.809.657
Basic earnings - share of the group per share		0,63		0,80		0,94		2,27
Fully diluted earnings - share of the group per share		0,62		0,79		0,93		2,25
Basic net profit from operations - share of the group per share		0,63		0,81		0,95		2,08

(1) In 2005 until June 27, 2006, XDC was a 60.17% EVS affiliate and has been fully consolidated. From June 27, 2006, XDC has been a 47.20% EVS affiliate and therefore accounted for at equity. (2) The net profit from operations is the net profit (share of the group) excluding non-recurring exceptional results, taking into account tax items. ANNEX 2: EVS GROUP - CONDENSED SEGMENT REPORTING The EVS Group sales are divided up by business segments and geographical segments as follows: 2.1. Business segments 2006

(In thousands EUR) - 9M06	Continuing operations TV 9M06 (A)	XDC / discontinued operations (1)	XDC / Net gain/(loss) associated with the discontinued operation (B)	TOTAL 9M 2006 (A) + (B)
Revenue
Sales to external customers	66.128	907	-	66.128
Gross Profit	56.727	-1.161	-	56.727
Stock based compensation and ESOP plan	-450	-45	-	-450
Impairment on Tax Shelter Assets	-176	0	-	-176
Operating Profit (EBIT)	44.647	-2.898	-	44.647
Operating Profit (EBIT) - %	68%	-192%		68%
Financial Results	81	-73	-	81
XDC Spin-out dilution profit	-	3.368	-	-
Share in the result of the enterp. accounted for using the equity method	-526	-	-	-526
Profit before taxes (PBT)	44.202	396	-	44.202
Income taxes	-14.748	-5	-	-14.748
Net profit for the year	29.454	392	392	29.846
Minority interests	-	1.180	1.180	1.180
Net profit - share of the Group	29.453	1.572	1.572	31.025
Net current profit - share of the Group	30.079	-1.751	-1.751	28.328
(In thousands EUR) - 30.09.06	Continuing operations TV	XDC / discontinued operations (1)	TOTAL 30.09.06
Assets and liabilities
Investment accounted for using equity method	365	5.864	6.229
Non-Current Assets	7.485	-	7.485
Cash and cash equivalents	33.733	-	33.733
Other current assets	21.214		21.214
Assets	62.797	5.864	68.661
Net assets	42.505	5.864	48.369
Long term provisions	230	-	230
Deferred taxes	256	-	256
Financial debts	2.766	-	2.766
Government recoverable loans	834	-	834
Other current liabilities	16.205	-	16.205
Liabilities	62.797	5.864	68.661

(1) EVS share in XDC has decreased to 47,20 % from 60,17 %, leading to a change in the consolidation method of XDC stake in the consolidated accounts of EVS: XDC 47,20 % stake is booked at equity method as from June 27, 2006 rather than globally consolidated as it had been the case until June 27, 2006. 2.2. Business segments 2005

(In thousands EUR)- 9M05	Continuing operations TV 9M05 (A)	XDC / discontinued operations (1)	XDC / Net gain/(loss) associated with the discontinued operation (B)	TOTAL 9M 2005 (A) + (B)
Revenue
Sales to external customers	35.570	1.447	-	35.570
Gross Profit	30.296	-612	-	30.296
Stock based compensation and ESOP plan	-53	-13	-	-53
Operating Profit (EBIT)	21.225	-2.919	-	21.225
Operating Profit (EBIT) - %	60%	-121%		60%
Financial Results	458	2	-	458
Share in the result of the enterp. accounted for using the equity method	47	-	-	47
Profit before taxes (PBT)	21.729	-2.917	-	21.729
Income taxes	-6.970	-4	-	-6.970
Net profit for the year	14.759	-2.921	-2.921	11.838
Minority interests	-	1.121	1.121	1.121
Net profit - share of the Group	14.759	-1.800	-1.800	12.959
Net current profit - share of the Group	14.812	-1.787	-1.787	13.025
(In thousands EUR) - 31.12.05	Continuing operations TV	XDC / discontinued operations (1)	TOTAL 31.12.05
Assets and liabilities
Investment accounted for using equity method	282	-	282
Non-Current Assets	7.910	7.035	14.945
Cash and cash equivalents	22.299	3.928	26.227
Other current assets	18.410	2.146	20.556
Assets	48.901	13.109	62.010
Net assets	36.400	3.992	40.392
Long term provisions	151	-	151
Deferred taxes	252	-	252
Financial debts	2.955	, 5.661	8.616
Government recoverable loans	881	2.223	3.104
Other current liabilities	8.262	1.233	9.495
Liabilities	48.901	13.109	62.010

(1) EVS share in XDC has decreased to 47,20 % from 60,17 %, leading to a change in the consolidation method of XDC stake in the consolidated accounts of EVS: XDC 47,20 % stake is booked at equity method as from June 27, 2006 rather than globally consolidated as it had been the case until June 27, 2006. 2.3. Geographical segments 2006 The TV activities are split over 3 regions: Asia Pacific ("APAC"), Europe, Middle-East and Africa ("EMEA") and North America and Latin America ("NALA") while XDC business is limited to EMEA (sales from discontinued operations).

(In thousands EUR)	APAC		EMEA		NALA		TOTAL 9M 2006
Revenue
Sales to external customers	10.707		37.280		18.141		66.128
Sales from discontinued operations	-		907		-		907
Segment revenue	10.707		38.187		18.141		67.035
Evolution versus 2005 - Proforma %	129%		78%		93%		88%
Segment Revenue at constant exchange rate	10.707		38.187		17.873		66.767
Variation 9M06 vs 9M05 (coninuing operations)	129%		74%		93%		86%

2.4. Geographical segments 2005

(In thousands EUR)	APAC		EMEA		NALA		TOTAL 9M 2005
Revenue
Sales to external customers	4.666		21.487		9.416		35.569
Sales from discontinued operations	12		1.372		63		1.447
Segment revenue	4.678		22.859		9.479		37.016

The EVS Group has a strong vertical integration located mainly in Belgium. Foreign subsidiaries are distribution and representation subsidiaries, which explains why most of investments and investment expenditure are concentrated in the parent company EVS Broadcast Equipment S.A.. We should also note that the EVS Group has a centralised cash management within Belgium and that only the subsidiaries based in the USA and in Hong Kong directly invoice the end customers for commercial reasons. All customers are invoiced in EUR except the United States of America, in US Dollar. ANNEX 3: EVS GROUP - CONDENSED IFRS CONSOLIDATED BALANCE SHEET - ASSETS

				Proforma
		Reported		XDC at equity (1)
ASSETS:		31.12.05		31.12.05		30.09.06
(In thousands EUR)
Non-Current Assets :
Intangible assets		584		581		404
Lands and buildings