PR Newswire/Les Echos/

Three consecutive quarters of growth

Quarterly Consolidated sales

In million euros

2009    183   182   165   166 
2010    181   200   186 
         Q1    Q2    Q3    Q4
 
EBIT* & Net Profit in EURM

EBIT               100,1    98,9    34,2
Net profit          67,6    56,2     9,4

                   2007     2008    2009

*After participation and profit- sharing expenses

- Third straight quarter of organic growth, due to stabilization of the markets

- Successful integration of acquisitions made since the start of the financial
  year, which is accelerating the Group's growth

- Recovery slower in the LISI AEROSPACE division, due to the USA

- Business better than expected in the LISI AUTOMOTIVE division

During Q3 ended September 30, 2010 the LISI Group achieved sales of EUR 185.8m,
up 1.7% at constant scope and exchange rates. In published data, the variance is
+12.9%.

Sales in EURm                                         Change
                                                       2010/2009 on a likefor-
                                                          like and constant
                              2010     2009    2010/2009  exchange rate basis
Q1                           181.4    183.1      -  0.9 %       + 3.1 %
Q2                           199.7    181.6     + 10.0 %        + 1.2 %
Q3                           185.8    164.6     + 12.9 %        + 1.7 %
9 months ended September 30  566.9    529.3      + 7.1 %        + 2.0 % 

LISI AEROSPACE

-  Stabilization of sales on account of recovery in Europe

-  No sign of recovery in the US for LISI AEROSPACE

-  Incorporation of LISI MEDICAL Orthopaedics as of September 1, 2010, and
   satisfactory order book at present scope

LISI AUTOMOTIVE

-  Less sharp market drop than expected; cumulatively, European production still
   up; European clients dynamic in exports

-  Activity level still lower than in 2007

-  Significant growth in sales in Germany and China; growth in France supported
   by integration of the Acument sites

LISI COSMETICS

-  Strong demand, both for new launches and the main classic lines

-  Production rates properly adapted to clients' expectations in terms of both
   volumes and quality

Sales in million euros

End of September

320
       278.3                   297.5   
280
               231.3
240
                       225.1   
200

160

120

80

40
                                        26.7    39.0
0       2009    2010    2009    2010    2009    2010
         AEROSPACE       AUTOMOTIVE       COSMETICS

                                NOTES BY SECTOR

LISI AEROSPACE (41% of the consolidated total)

* Stabilization of sales on account of recovery in Europe

* No sign of recovery in the US for LISI AEROSPACE

* Incorporation of LISI MEDICAL Orthopaedics as of September 1, 2010, and
  satisfactory order book at present scope

Sales in EURm                                         Change
                                                        2010/2009 on a likefor-
                                                            like and constant
                              2010     2009    2010/2009  exchange rate basis
Q1                            76.2    104.6    - 27.2 %        - 26.3 %
Q2                            78.0     95.0    - 17.8 %        - 21.6 %
Q3                            77.1     78.7     - 2.1 %        - 13.2 %
9 months ended September 30  231.3    278.3    - 16.9 %        - 21.0 % 

Upstream for the sector, air traffic figures are still high even if a slight
slowdown has been felt with RPM(1) up 6.4%, while cargo is still increasing
strongly (up 19.6%).

In terms of orders, Boeing has booked 445 aircraft(2) year to date and Airbus
379(2) at a fairly even rate since the start of the year. In respect of new
programs the sixth B787 has made its first flight while the A350 has started its
first assembly operations.

Production rates have been maintained at the same level since the start of the
year at both Boeing (346 planes) and Airbus (380). The increased rates announced
are scheduled for the start of 2011 at Airbus and for 2012 at Boeing.

LISI AEROSPACE's business levels need to be analyzed separately in Europe and
the USA:
>  In Europe the coming increase in rates is linked to the new programs, in
particular the A350 and above all among equipment manufacturers who have
expressed increased requirements. The book to bill ratio for Q3 was an
encouraging 1.10.

>  In the USA the Boeing production rates will only go up at the end of 2011.
Regional aircraft manufacturers Bombardier and Embraer are continuing to run
down inventories, and their distributors are only ordering products that are out
of stock. Therefore, even if the last few months have been a bit better, the Q3
book to bill ratio in the US was slightly down at 0.8.

The number of so-called urgent orders has only risen in Europe and is mainly
connected to the Initial Provisioning phase of the A350 assembly lines for new
products. It should be noted that the composite clasps proposed by LISI
AEROSPACE were selected for the assembly of the wings of the A350, as well as in
the US by Boeing and in Japan. 

The two LISI AEROSPACE platforms in Europe and the USA both show a comparable
drop as compared with the divisional average, but for different reasons:
regional aircraft manufacturers, distributors and the Boeing world have recorded
the largest drops in the USA, while in Europe the equipment manufacturers and
especially engine manufacturers that had adjusted their production downwards,
have recently restarted production.

A level of fixed costs that is too high for present activity levels has affected
the division's overall performance. This intentional overcapacity will let the
division pick up quicker, which is clear enough in Europe, but still remains a
wager in the USA.

(1) Source IATA - RPM: number of passengers - revenue per mile
(2) Source Boeing and Airbus

% Sales Variation per division / N-1

  80
  60              LISI COSMETICS
  40             LISI AUTOMOTIVE
  20              LISI AEROSPACE
   0
- 20
- 40
- 60
        Q1 Q2 Q3 Q4   Q1 Q2 Q3 Q4   Q1 Q2 Q3 Q4   Q1 Q2 Q3
            2007         2008           2009        2010

LISI MEDICAL has significantly rebuilt its order book.

The increase of 135.2% in the division's sales revenues for Q3 2010 in
particular reflects the inclusion of one month's activity of LISI MEDICAL
Orthopaedics of about EUR 5.0m.

The LISI MEDICAL division brought together the two Lyon area sites of Fleurieux
and Neyron in the new factory at Neyron during August, which impacted on the
quarter's productivity.

LISI AUTOMOTIVE (52% of the consolidated total)

* Less sharp market drop than expected; cumulatively, European production still
  up; European clients dynamic in exports

* Activity level still lower than in 2007

* Significant growth in sales in Germany and China; growth in France supported
  by integration of the Acument sites

Sales in EURm                                         Change
                                                        2010/2009 on a likefor-
                                                           like and constant
                              2010     2009    2010/2009  exchange rate basis

Q1                            94.4     68.6    + 37.6 %        + 51.3 %
Q3                            95.8     78.5    + 22.1 %         + 9.7 %
9 months ended September 30  297.5    225.1    + 32.2 %        + 25.9 %

Notwithstanding a drop in European new registrations(3) that had been noted
since April 2010, September has seen some relief at -9.2%, making it -3.7%
since the start of the year. The drop has been less than was expected. Other
markets are holding up well, especially the US up 28.7% in September and 10.4%
year to date, even if China has slowed down to +19.3% in September and 36.7%
year to date(4).

Production levels of LISI AUTOMOTIVE clients, who set the call downs for
delivery for fasteners, was also down -5.3% in September, but still up by
12.6% for the first nine months of the year. The latest market forecast is for
new registrations to drop to 7%(5) , which is an expected drop of 10% - 15% for
the second half year. This trend seems to have been adopted by the car
manufacturers, and a reduction in production rates has been observed at all LISI
AUTOMOTIVE's clients, except Audi, for the entire range, excepting their
recent models (BMW: X1 and Mini Country; PSA: 3008, 5008, C3 and DS3; Renault:
Duster and Fluence; Daimler: Class E). 

It should be noted that this level is still almost 12% lower than in 2007.

If the LISI AUTOMOTIVE increase in sales is ahead of the market, it must be
adjusted for the acquisition of the two Acument factories: the increase then
comes to 25.9% since the start of the year, up 24.2% in France and 28.1% in
Germany. However, sales have not yet caught up with their 2007 levels, which can
be used as a reference year, and are down 5.4% on similar scope.

(3) New registrations in EU 27 + EFTA - Source ACEA
(4) Source Reuters
(5) Source JD Power

The activity with equipment manufacturers worldwide is showing quite clear signs
of a slowdown: they only went up 1.1% in Q3, as compared with up 22% since
January 1, 2010.

This rate allows achieving operational performances in line with expectations
that in turn reflect normal operation of most of the Group's production sites.
The Germany and Global Equipment Manufacturers business groups have posted
performances above the divisional average. Following a period of tensions
concerning raw materials prices at the start of the year, the end of the
financial year looks better with a drop in prices.

LISI COSMETICS (7% of the consolidated total)

* Strong demand, both for new launches and the main classic lines

* Production rates properly adapted to clients' expectations in terms of both
  volumes and quality

Sales in EURm                                         Change
                                                        2010/2009 on a likefor-
                                                           like and constant
                              2010     2009    2010/2009  exchange rate basis

Q1                            11.2     10.1    + 10.8 %        + 10.8 %
Q2                            14.6      8.8    + 65.3 %        + 65.3 %
Q3                            13.2      7.8    + 70.6 %        + 70.6 %
9 months ended September 30   39.0     26.7    + 46.1 %        + 46.1 %

Available market data about consumption of perfumery and cosmetics products show
that the numbers are slightly up in both Europe and the USA (+3% and +2%
respectively(6)), while China is still posting very strong growth (+26%). This
demand has required restocking by the division's customers, especially for
flagship products, and has led to the release of new products. As a result LISI
COSMETICS' order book has achieved a record figure of EUR40m to the end of
September 2010. Work on new products is at a level that LISI COSMETICS has not
seen for many years. The very strong recovery in sales revenues has been made
possible by the investments made over the last two years at the three production
locations. The quality and logistics indicators remain at levels in line with
the targets notwithstanding the very heavy demand and new products.

(6) Source NDP Beauty - - Figures at June 30, 2010

OUTLOOK AND COMMENTS REGARDING THE INCIDENCE OF BUSINESS ACTIVITIES

LISI AEROSPACE

The continuation and even acceleration of the Group's growth is still
dependent on the expected recovery in aerospace. At the present time the
assumption of a gradual turnaround in Europe has been confirmed, even if it has
slipped slightly to Q4 2010 and the start of 2011. On the other hand, the
situation in the USA does not show signs of improvement and can be explained by
greater exposure to the regional programs (Embraer, Bombardier) and
distributors. The B787 program has not yet generated the growth expected. As a
result, the current activity level of the LISI AEROSPACE division in the USA
might continue into part of 2011.

The first month of inclusion of LISI MEDICAL Orthopaedics has been grounds for
satisfaction that ought to make a positive contribution to the Group's results
by the end of the period. LISI MEDICAL, a sub-division of LISI AEROSPACE, will
in 2011 become an entirely separate operating segment just like the Group's
other divisions.

LISI AUTOMOTIVE

The productivity programs, especially the implementation of a just-in-time
system, control of working capital requirements, and the major medium-term
actions are continuing in order to prolong and maintain the progress the
division has made. In the shorter term, forecasts for the end of the year are
solid with demand from manufacturer customers remaining high, while equipment
makers appear to be adjusting their production levels downwards. LISI AUTOMOTIVE
has benefited indirectly from the strong performance of certain countries, such
as China, that are undergoing rapid growth. The gradual unlinking of LISI
AUTOMOTIVE's sales from European production levels is now a fact. New orders
booked from equipment makers in particular strengthen LISI AUTOMOTIVE's
position as a leading supplier for the most technical parts. 

LISI COSMETICS

Thanks to a solid and sustained order book (book to bill ratio 1.8 in
September), business at the end of the year and start of 2011 is expected to
slow down.

The Group is continuing with its ongoing improvement of its management methods
and processes, while speeding up its investment projects and always seeking
opportunities for external growth. The continuing growth should automatically
help cover absorbing the fixed costs, as well as facilitating an increase in
scheduled investments.

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

2010 annual results: 18 February, 2011

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