Esr : ESR : FY 2007 Results

Regulatory News:

in € M		Full year 2006		First half year 2007		Second half year 2007		Full year 2007
Revenue		79.3		38.5		38.0		76.5
Operating Profit		-3.3		1.3		1.3		2.6
as a percentage of revenue		-4.2%		+3.3%		+3.5%		+3.4%
From financial transactions		-1.1		-1.2		-0.5		-1.7
From discontinued operations		0.0		-0.7		+1.2		+0.5
Income tax		-1.1		+0.9		+0.1		+1.0
Minority interest		0.0		-0.1		0.0		-0.1
Net profit excluding minority interest		-5.5		0.4		2.1		2.5

In fiscal year 2007, the ESR Group (Paris:ESRP) returned to profitability and continued lowering its debt.

Revenue amounted to € 76.5M, or a 2% increase on a proforma basis.

In line with the recovery process started 18 months ago, the ESR Group achieved a € 2.6M operating profit which represents 3.4% of sales. This positive result has three causes: (1) a drop in the average off-assignment rate, (2) a decrease in overhead expenses and (3) an improvement in gross margin on assignments.

The "From financial transactions" figure includes a € 0.7M loss on the sale of the stake in Phenix Energy.

Discontinued operations relate to the Valexa subsidiary that was sold in July. The figure covers (1) the negative margin contribution of this subsidiary, accounted for in the first half year and (2) the capital gain made on this sale. The income tax positive figure results, in particular, from deferred tax booked to the amount of € 1.1M.

These factors allowed net profit to reach € 2.5M, as against € -5.5M for the previous fiscal year. Reflecting the return to profitability, the group's net worth moves forward to € 3.2M at 2007 year end.

The sale of Phenix Energy and Valexa stock, the generated cash flow and the improved control of working capital requirements together enabled the group to reduce its overall indebtedness by € 5.4M over 12 months. As of December 31, 2007, the net bank debt was down by € 1.4M to € 13.4M, of which € 12.5 M was factoring debt. The rescheduled tax and social charge debt decreased by € 4.0M, to € 1.7M.

These results, which stand above previous commitments, lead the group to step into the future with equanimity and determination. ESR's ambition is, from now on, to do as well as the best performers of similar size in the industry.

With a recently started "Innovation and Partnerships" division, with the optimization of the sales organization and with the ongoing improvement in recruiting efficiency, the group's development drive will be boosted throughout 2008.

On April 29, 2008 after stock exchange close, ESR will release its First Quarter, 2008 revenue along with the financial information that will be attached henceforth.

Shareholders' information of the ESR Group available on www.esr.fr

20 YEARS OF EXCELLENCE IN MANAGEMENT OF IT AND TELECOM INFRASTRUCTURES

Established in 1987, the ESR group has reached as of today the status of number one specialist in France, exclusively dedicated to engineering and management of IT and telecom infrastructures.

Over 1100-strong at 2007 year end, the group carries out professional services and outsourcing assignments on projects covering such fields as auditing, design, deployment, integration, operation, security and storage.

The whole of clients are major accounts engaged in the telecom, banking, insurance, services and manufacturing industries as well as in government. In 2007, the group's revenue reached € 76.5M.

The ESR group is active in all regions in France, via a system of branches, and locally contributes to the projects of its clients throughout Europe.

ESR - 2, rue de Paris - 92190 Meudon - France - Tél: [phone]

Section C - Eurolist by Euronext Paris - ISIN FR0000072969 – ESRP

Jean-Guy Barboteau, Chairman & CEO:
[e-mail]
or
Florent Barboteau, Managing Director:
[e-mail]