23 July 2008, page 1 Company confidential Results 2Q08 Results 2Q08 Martin De Prycker, CEO 23 July 2008

23 July 2008, page 2 Company confidential Highlights 2Q08  Sales growth before exchange impact limited to 1% due to unequal performance of the different divisions and to economic slowdown. Sales declined 6% at real exchange rates  Good order intake at 1.5% higher than last year despite strong Euro  EBIT decline of € 10.5 million, due to lower sales, price pressure, exchange rates and restructuring  A cost reduction plan is being implemented to improve bottom line and to cope with inflation and economic slowdown

23 July 2008, page 3 Company confidential Operational results In € million2Q082Q07Growth 08/07 At real FX At constant FX Orders %10% Orderbook % Sales (6%)1% EBIT (before restructuring) (57%)(34%) EBIT (68%)(44%) EBIT %2.88.1

23 July 2008, page 4 Company confidential Results per quarter Results per quarter In € million

23 July 2008, page 5 Company confidential Overall comments  Sales growing 1% excluding exchange rates. Declining 6% at real exchange rates –Strong growth in Security & Monitoring and Medical can not compensate the lower sales in Media & Entertainment and Other Markets –Weak in EMEA due to strong drop in Middle East (Dubai Mall)  Gross profit at € 62.4 million vs € 74.7 million last year, due to exchange rates, product mix and price pressure  EBIT at € 5.0 million, lower than 2Q07, after a negative currency impact of € 3.6 million and restructuring charges of € 1.6 million

23 July 2008, page 6 Company confidential Evolution of results per division In € million2Q082Q07Sales growth 08/07 Sales% EBITSales% EBIT At real FX At constant FX Media & Entertainment % %(27%)(21%) Security & Monitoring % %22%31% Medical Imaging % %6%16% Other26.9(15.0%) %(22%)(14%) Eliminations(2.9)0%(6.7)0% Total % %(6%)1%

23 July 2008, page 7 Company confidential Media & Entertainment Division (1) In € million

23 July 2008, page 8 Company confidential Media & Entertainment Division (2)  Orders –Orders in Events lower at real exchange rates, but again at a very high level thanks to the new LED products, increasing confidence for second half –Orders in Media strongly improved –Orders in Digital Cinema much higher than last year, following the VPF model slowly gaining momentum  Sales –Sales in Events much lower, due to weak economy. 2Q07 had a peak volume of newly launched products –Media sales significantly lower as some projects were delayed –Digital Cinema strongly improved vs 2Q07  Margins EBIT weaker due to lower volumes and lower gross margin, caused by sell-off of slow moving inventory  Actions and outlook –Headcount reduction implemented in July, further cost reductions are foreseen –New product introductions coming up to speed in second half Sales declined 21% at constant FX, due to worldwide economic situation Orders increasing again Q on Q and on consecutive basis Profit much lower than 2Q07

23 July 2008, page 9 Company confidential Security & Monitoring Division (1) In € million

23 July 2008, page 10 Company confidential Security & Monitoring Division (2)  Orders –Decline in orders, but order funnel remains solid –Good order intake in Defense and Utilities and confirmation of leadership position in Traffic & Surveillance –Continued growth in APAC  Sales –Sales growth 31% at constant exchange rates –Stronger growth in Defense and Traffic & Surveillance  Margins EBIT margin at 7.7% vs 0.1% in 2Q07, thanks to higher sales and cost containment  Actions and outlook –New products introduced for deliveries in second half –Streamlining portfolio Declining orders but sales strongly improve, with good profitability at € 4.9 million

23 July 2008, page 11 Company confidential Medical Imaging Division (1) In € million

23 July 2008, page 12 Company confidential Medical Imaging Division (2)  Orders / Sales –Orders level stable and growing at constant exchange rates –Healthy sales growth in PACS vs 2Q07, at constant exchange rates, mainly in APAC  Margins –Good EBIT margin at 10.6%, vs 13.4% in 2Q07, due to lower gross margin caused by price pressure  Actions and outlook –New products being launched in second half, to broaden our market coverage –Initiatives to further outsource to LCC ongoing Very strong sales growth at constant FX, resulting in good profitability

23 July 2008, page 13 Company confidential Other Markets (1) In € million

23 July 2008, page 14 Company confidential Other Markets (2)  Orders / Sales –Order intake stable despite weak USD –Lower orders and sales in simulation market, mainly due to unavailability of LCOS products –Weak orders and sales in presentation market –Orders and sales in Avionics continue to grow  Margins –EBIT margin negative at (15.0%) vs 7.2% in 2Q07, as lower gross profit was unable to offset the high investments in product development for simulation and avionics  Actions and outlook –Strong orderbook, especially in Simulation and Avionics –First shipments of simulation projectors with new LCOS panels have now started. This will help to substantially increase orders and sales in second half –Headcount reduction implemented in July, further cost reductions are foreseen Overall weaker sales and high R&D investments result in negative EBIT

23 July 2008, page 15 Company confidential Geographical breakdown of sales Americas + 1%* APAC - 9%* EMEA - 12%* * At real FX

23 July 2008, page 16 Company confidential Key figures Income Statement In € million2Q08%2Q07% Sales Cost of goods sold (117.1) (65.2) (117.2) (61.1) Gross Profit Research & Development Sales & Marketing General & Administration Other operating result 62.4 (19.2) (29.9) (12.2) (10.7) (16.6) (6.8) (16.5) (29.3) (12.5) (0.8) 38.9 (8.6) (15.3) (6.5) (0.4) EBIT Non-operating result(0.4)(0.2) (0.1) Income Taxes(0.8)(0.5)(2.9)(1.5) Net Income from continuing operations Net Income from discontinued operations Net Income EBITDA Net Earnings per Share (in €)

23 July 2008, page 17 Company confidential Key figures Balance Sheet In € million 30/06/0831/12/0730/06/07 Accounts Receivable Inventory Trade Payables Net Working Capital Net Financial Debt

23 July 2008, page 18 Company confidential Expectations full year 2008  A cost reduction plan of € 30 million is being implemented, and is composed of manpower reductions, streamlining our business portfolio and cost containment actions. This cost reduction plan will result in an improvement of EBIT in 2009 and will offset inflation  One time restructuring cost expected of around € 20 million, to be taken in 2H08  Notwithstanding the current economic circumstances, we expect a significant improvement of the EBIT level before restructuring in 2H08 compared to 1H08, thanks to the good order intake, the cost reduction plan and the introduction of a number of new products