GFT GFT Technologies SE

Gameloft generated consolidated sales of �22.7 M ($30.9 M) in the first quarter of 2007, up by 54% from the previous year. On a comparable consolidation and exchange rate basis, growth would have reached 66%. In �M 2007� 2006� Variation 1st quarter 22.7� 14.8� +54% In the first quarter of 2007, Europe accounted for 44% of sales, North America 39% and the rest of the world 17%. The sharp increase in the company�s sales is a result of: the continued success of Gameloft�s back catalogue, thanks in particular to the large number of games released in 2006 (45 new games were released in 2006 compared to just over 20 in 2005); and the immediate success of the games launched in the first quarter of 2007, such as Desperate Housewives, Lost, Real Football 2007, Tennis Open 2007 feat. Lleyton Hewitt, etc. The company�s strong performance in the first quarter of 2007 shows that it is perfectly positioned to take advantage of the rapid growth in the mobile games market. The worldwide installed base of Java phones reached 1.2 billion units in 20071 and is expected to double in the coming years. With its catalogue of 130 mobile games distributed by more than 170 operators around the world, Gameloft is now beginning to reap the benefits of the massive investments made in previous years. The better-than-expected growth in its activity over the first three months of the year is prompting the company to fine-tune its 2007 sales target. Gameloft is now forecasting annual sales of �95 to 100 M (versus its previous estimate of �90 to 100 M), i.e. annual growth of 39 to 46%. The company is also confirming its operating margin target (excluding employee stock-based compensation) in excess of 10% for 2007. Second quarter sales will be published July 26, 2007. 1 Source: Ovum