Archos : FIRST QUARTER 2017 REVENUE

Financial Release Paris, Friday, May 12th, 2017 FIRST QUARTER 2017 REVENUEIn the first quarter of 2017, the ARCHOS Group recorded sales of €25 million, compared with

€40.2 million for the same period in 2016.

Consolidated revenues (in €M)	Q1 2017	Q1 2016	Variation	Variation as a %
ARCHOS	21.6	37.3	-15.7	-42%
LOGIC INSTRUMENT	3.4	2.9	0.5	+17%
Total	25.0	40.2	-15.2	-38%

The decrease in the first quarter can be explained by lower sales of tablets throughout Europe. The market has been particularly difficult in France and in Germany. The trends seem more positive for the second quarter.

Logic Instrument reported an increase of 17% over this period.

SIGNIFICANT EVENTS:

• The launch of the KODAK tablets range, unveiled in February, will begin in June 2017. Underneath their elegant casing, they include the latest technologies as well as a set of preloaded applications that will allow photo and video enthusiasts to enjoy many creative actions and to share them instantly on social networks.
• The ARCHOS 50 Graphite and ARCHOS 55 Graphite smartphones, sneak previewed at MWC 2017, will also be available before this summer. These devices put at users' disposal what they expect: larger screens, fast authentication, high speed mobile Internet connection, access to fancy apps, photo and videos functionalities to share on social networks, fast charge for an ease of use anytime.
• The urban mobility line up now consists of the ARCHOS Urban eScooter, the ARCHOS Bolt and the ARCHOS X3, for easier and greener daily journeys, at an affordable price.
• ARCHOS inaugurated its first pop-up store at Vélizy 2 in March 2017 and continues its presence in major shopping centers, CNIT and Rosny 2, in France. This evenly format contributes to increasing the brand awareness and favors live demonstrations to highlight key benefits.

PERSPECTIVES:

The performance of this quarter does not currently allow a growth target in 2017, with same scope of consolidation. However, the actions implemented, especially around the development of new ranges of tablets and smartphones as well as the evolution of the urban mobility segment are aimed at re-vitalizing sales as of the second quarter.

ABOUT ARCHOS:

ARCHOS, a pioneer in consumer electronics, continues to innovate and revolutionize the consumer electronics market. Among others, the French manufacturer was first with an HDD MP3 player in 2000, a multimedia player in 2003; Google Android powered tablets in 2009, a connected Smart Home in 2014 and PicoWAN, the first collaborative network dedicated to the IoT, in 2016. Today, ARCHOS offers its own line of tablets, smartphones and connected objects worldwide. It also markets and distributes high-value innovative products associated with the tablet and smartphone markets: urban mobility, smart entertainment. With headquarters in France, offices in Europe and in Asia, ARCHOS has become a strong pan-European player and is furthering its international expansion. ARCHOS is quoted on Compartment C of Eurolist, Euronext Paris, ISIN Code: FR0000182479.

www.archos.com.

CONTACT:

Loïc Poirier Email:[e-mail]

CEO Phone number: 01 69 33 16 90

ARCHOS // Financial Release // First Quarter 2017 Revenue Page 1 out of 1