PR Newswire/Les Echos/

LISI ANNOUNCES REVENUE AT €183.1M, DOWN 19% FOR Q1 2009, A RESULT OF THE
AUTOMOTIVE MARKET'S SEVERE DROP

Revenue in EUR million     March 31st             Change
                                                            2008/2009
                                                       on a like-for-like and
                        2009     2008    2009/2008 constant exchange rate basis
Q1                      183.1   226.1      -19.0 %           -21.2 % 

Over the period, the average euro/dollar exchange rate stands at 1.29 versus
1.53 during Q1 2008.	

LISI AEROSPACE

• Good resilience of the aerospace markets thanks to manufacturers' production
  pace maintained

• Order book and number of orders down

• Racing down sharply

• Medical: dental segment slows down in North America

LISI AUTOMOTIVE

• Significant decline of markets and production

• Inventories adjusted throughout the industry

• Disposal of SDU

LISI COSMETICS

• Ongoing weakening of demand

• New projects: favorable impact expected for H2

The Group's action plan is focused on preserving cash and adjusting fixed costs
to the business activity level.

COMMENTS PER LINE OF BUSINESS

LISI AEROSPACE (57% of consolidated total)

•Good resilience of the aerospace markets thanks to manufacturers' production
 pace maintained

•Order book and number of orders down

•Racing down sharply 

•Medical: dental segment slows down in North America

Revenue in EUR million    March 31st             Change
                                                            2008/2009
                                                       on a like-for-like and
                        2009     2008    2009/2008 constant exchange rate basis
Q1                     104.6    103.2     + 1.3 %             - 3.5 % 
 
According to IATA forecasts, the world air traffic should display a sharp drop
in 2009, of approximately -5.7% for passengers and -13% for freight. At end
February, figures are even lower, at -10% and -22%, respectively. Lacking any
sign of recovery of air traffic, it is reasonable to think that airlines will
not take possession of new aircraft that would cause their capacities to exceed
their current requirements. Orders placed by the two main manufacturers are
therefore close to zero over the first quarter (+8 aircraft at Airbus, -4 at
Boeing).

(1)International Air Transport Association

Despite the strongly negative nature of these published indicators, the industry
showed signs of resilience during the beginning of the year: Airbus's deliveries
stood at 116 (123 in 2008), those of Boeing at 121 (115 in 2008). The production
and delivery programs for 2009 would remain, according to the figures announced
by the two major manufacturers, pretty sustained. Nevertheless, no A380 has been
delivered during the period, while some twenty aircraft should be assembled and
the B787 has not yet taken off.

The general trend towards destocking throughout the industry (distributors,
subcontractors, component manufacturers, manufacturers), already noted during
the last quarter of 2008, continues, with new measures to put off or cancel
orders. Over the period, LISI AEROSPACE observes that the book to bill ratio at
Airbus is rather stable, while it is adjusted more significantly at Boeing, at
0.7. The volume of short-notice backup deliveries is therefore down sharply, at
€1.8M versus €4.8M in 2008. Thus, the delivery book is further declining at
€291M versus €309M at end December 2008.

The division's quarterly sales revenue therefore stands at €104.6M, up +1.3%.
The sales revenue in constant currency, purely allocated to aerospace, is down
-2.4%, especially in the USA (-6.7% in USD), while Europe is quite resilient
(+6.9%).

As far as Racing is concerned, the two sites dedicated to automobile competition
are strongly affected by the reduction in F1 racing teams. A reconversion plan
for these sites is currently under way.

The medical segment is a victim of the drop in its main line of business, dental
(approximately 40% of the sales revenue), more particularly in North America.
LISI MEDICAL's customers have adjusted their inventories severely given the
reduction in the number of so-called "comfort" surgical operations that are
directly tied to the consumption level. The division's sales revenue is down
-9.6% at €5.5M and at -12.4% in dollars.


LISI AUTOMOTIVE (37% of consolidated total)
• Significant decline of markets and production
• Inventories adjusted throughout the industry
• Disposal of SDU

Revenue in EUR million    March 31st             Change
                                                            2008/2009
                                                       on a like-for-like and
                        2009     2008    2009/2008 constant exchange rate basis
Q1                      68.6    109.7    - 37.5 %           - 37.5 %

The markets of LISI AUTOMOTIVE's customers in Europe are continuing to decline
with a -17.2% drop over the quarter, according to EAMA1. Month by month, the
market is picking up gradually (-27% in January, -18.3% in February, -9.0% in
March) thanks to the various recovery plans, particularly in Germany (+40% in
March), France (+8%) and Italy (+0.2%). The Group's customers saw their
production collapse by 34%* in Europe, both for German manufacturers (VW* -24%,
BMW* -36%, Daimler* -40%) and French manufacturers (PSA* -35%, Renault* -35%).

LISI AUTOMOTIVE's sales are adjusting to these activity levels at €68.6M for the
quarter (-37.5%). This drop breaks down evenly throughout the division's three
main segments: France, Germany and Global Tier One. The monthly sequential
analysis shows that sales have picked up in March at -27% after reaching their
lowest level in February at -45%. Only business in China displays some momentum,
with €2M sales, up +60%.

* Source : JD Power
(2)Association des Constructeurs Europ's d’Automobiles

The LISI Group has signed the disposal of SDU to a group of investors and the
company's management. A subsidiary of Knipping, it posted sales of approximately
€26M in 2008 in the distribution of technical products aimed at mines and the
industries in Germany and Poland, a segment not considered strategic for the
LISI Group. The disposal became effective April 1, 2009 and should have a
negative impact of -€0.5M on the income statement and lead to an improvement of
the net debt of approximately €6.2M on the LISI Group's 2009 balance sheet.

LISI COSMETICS (6% of consolidated total)
• Ongoing weakening of demand

• New projects: favorable impact expected for H2

Revenue in EUR million    March 31st             Change
                                                            2008/2009
                                                       on a like-for-like and
                        2009     2008    2009/2008 constant exchange rate basis
Q1                      10.1     13.5    - 25.2 %           - 25.2 %  

The destocking trend followed by LISI COSMETICS's customers has been
accelerating at the beginning of the year, and our customers have proved to be
extremely cautious. The sales revenue is down sharply by more than 25%, wile no
sign of recovery can be perceived over the period.

OUTLOOK AND COMMENTS REGARDING THE FINANCIAL INCIDENCE OF BUSINESS ACTIVITIES

As stated in its press release dated February 20th, the LISI Group is not
expecting any improvement of market visibility before the end of the first
halfyear. All the markets where the LISI Group operates are victims of severe
fluctuations, without it being possible to establish any general trend.

As an illustration, some outlook elements can be underlined:

LISI AEROSPACE

• As planned at the beginning of the year, LISI AEROSPACE provides the Group
with a stable base. New order indicators show that the entire industry is
extremely cautious, except for manufacturers, who have changed their production
programs only minimally. The depth of the order book in the USA should make it
possible to maintain the current production pace in 2009. However, we expect it
to be slower than in 2008, as a result of the unfavorable comparison basis.
Business in Europe seems to be rather stable with Airbus, subject to production
paces being maintained. Other customers will be down upstream on uncertainties
for 2010.

• Racing will not enjoy a recovery during the year and should keep its current
low level throughout 2009.

• The Medical industry still displays extreme resilience except for the dental
segment (spinal and orthopedic implants, in particular).

• The consequence of this generalized uncertainty is the gradual adaptation of
capacities and expenses to the level of activity: reduction of the number of
temporary employees (175 registered at March 31, 2009, versus 400 at December
31, 2008), reduction of extra time and head count (-193 full time equivalents
between December 31, 2008 and March 31, 2009). Investments have also been
slashed, reaching a level of around €20M for financial 2009.

• Projects considered strategic will be maintained, for example the deployment
of the Lawson ERP M3 (kickoff in May in Europe and November in the USA), R&D
actively engaged in the A350 project, the construction of the extension of the
Lyon plant by LISI MEDICAL, etc.

LISI AUTOMOTIVE

• The expected scenario could be confirmed in the coming months with a come-back
to sales of more than €25M per month. Calls for delivery from our customers in
the month of April seem to confirm the reduction in unemployment days on certain
sites and for certain production lines, particularly in France. However, this
revived optimism could be challenged by the difficulty, for the automotive
industry, to pick up if certain suppliers or component manufacturers are no
longer in a position to supply the assembly lines.

• All action has been taken to best adjust the capacities using partial
unemployment in France (50% of the time in France) or the 12- or 16-hour week in
Germany. The adjustment flexibility stands at approximately 20% over the quarter
and 26% on a full-time equivalent basis (2,157 versus 2,931 at December 31,
2008). Given that the adjustment of production has reached -47% over the period,
the residual volume only covers part of the fixed costs.

LISI COSMETICS

• Despite the "wait and see" approach adopted by the Group's customers, which
seems to be there to stay, it seems that only new projects for L'Oréal or 
Chanel could help the division pick up. In that case, the new plant in Nogent,
which is the only one among the three sites of the LISI COSMETICS Division, not
to have resorted to partial unemployment, should be the main beneficiary.

Consolidated LISI Group

The adaptation measures' impact on the production level is likely to be far
below the sales revenue level. Consequently, fixed costs will be less covered, a
phenomenon that will be reflected by the operating margin. However, no
restructuring measure encompassing the entire Group has been determined to
date.

Priority was therefore given to preserving the Group's cash position. All
decisions have been made to limit the capital used for operations. Given the
business decline, the management of working capital is followed very closely,
even though the mechanical inertia of the adjustment of certain items is likely
to take a few months. Based on the information available to date, the LISI Group
confirms that the generation of free cash flow over fiscal 2009 should be
positive and far above the levels achieved in 2008. That way, it would
strengthen the resilience of its balance sheet, whose gearing (net debt on
equity ratio) did not exceed 15.1% at end December 2008.

This is how, despite this troubled context, the Group maintains its growth
strategy in the medium term and will be able to seize any external growth
opportunities that may arise.

CONTACT
Gilles KOHLER
Chairman and CEO
email: gilles.kohler@lisi-group.com

Emmanuel VIELLARD
Deputy CEO
email : emmanuel.viellard@lisi-group.com

Tel:+33 3 84 57 00 77 - Fax : +33 3 84 57 02 00

Website: www.lisi-group.com

The next announcements will appear after close of trading on Paris Euronext

Half-yearly results 2009: July 28, 2009

Q3 2009 financial situation: October 27, 2009

TRADING AGREEMENT: ODDO Midcap – LYON Tel:+33 3 (0)4 72 68 27 60
                      
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