Esr : ESR: First Half-Year, 2007 Results - Operating Profit: 3.3% - Net Debt Significantly Down

Regulatory News:

ESR (Paris:ESRP)

million Euros		H1 2006		H2 2006		H1 2007
Revenue		39.7		39.6		38.5
Operating profit		-3.9		+0.6		+1.3
As % of revenue		-9.8%		+1.5%		+3.3%
From financial transactions		-0.2		-0.9		-1.2
From discontinued operations		0.0		0.0		-0.7
Income tax		-0.9		-0.2		+0.9
Minority interest		-0.1		+0.1		-0.1
Net group's profit excluding minority interest		-5.0		-0.5		+0.4

Audited figures

In the first half of 2007, the ESR group experienced both an increase in its operating profitability and a significant improvement in its balance sheet structure.

On June 21, ESR sold its 44% (non consolidated) stake in Phenix Energy. Additionally, the 75% stake that the group held in Valexa was sold on July 12. As a consequence, the consolidated revenue figure for the first half-year does not include Valexa's contribution to the group's business any longer, and the net income of this subsidiary, for the like period, is shown under the ?discontinued operations" caption. Excluding Valexa, the consolidated revenue amounted to € 38.5 million, up 1.6% (it would have been € 39.2 million including Valexa).

In line with the recovery process started in the previous fiscal year, the ESR group posts € 1.3 million in operating profit, or 3.3% of revenue. This twofold increase over the second half-year, 2006, results from a satisfactory sales volume, a drop in the off-assignment rate and a decrease in overhead expenses.

The net consolidated group's profit excluding minority interest is € +0.4 million after [1] the impact of financial transactions including the sale of Phenix Energy stocks (€ -0.7 million), [2] Valexa's negative contribution (€ -0.7 million as "discontinued operations"), [3] income tax (€ +0.9 million from realization of deferred tax) and [4] minority interest (€ -0.1 million).

Due to the cash-flows from operating activities, to the efficient management of accounts receivable and to the proceeds from the Phenix Energy stocks, total consolidated net debt is down by € 2.5 million, or by € 4.2 million when taking into account the sale of Valexa equity.

million Euros		Dec. 31, 2006		June 30, 2007*		June 30,2007**
Factoring debt		13.9		12.3		12.3
Bank debt		3.5		3.5		3.5
Due tax and social charges (installments respread)		5.7		4.5		2.8
Gross total debt (a)		23.1		20.3		18.6
Gross cash (b)		2.9		2.6		2.6
Net total debt (a-b)		20.2		17.7		16.0

* Book figures, audited

** Pro forma figures including sale of Valexa

The positive trend of the first six months is presently confirmed. New initiatives are to be launched soon. Thus, the operating performances of the first half-year are expected to extend into the full fiscal year. With the profit from Valexa proceeds (€1 million), that will only appear in the books in the second half-year, the net profit for the 2007 fiscal year should be over € 2 million.

These good results, as well as the favorable prospects, have enabled the group to strengthen its balance sheet structure without having to carry out a capital increase nor to consider one for the future.

Boasting its half-year accomplishments, namely the margin upturn and the sales of non-strategic assets in accordance with its prior commitment, the ESR group, henceforth in full working order, is confidently stepping into a further stage of its expansion process with renewed ambition.

On October 24, ESR will release its revenue figure for the 3rd quarter, after stock exchange close.

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

ESR is a major player of the IT infrastructure market. The group also develops high added value consulting expertises on IT systems security and storage.

Clients of the group are the largest institutions in the sectors of telecoms, bank and insurance, services, industry and public sector.

ESR covers all the French national market and follows his clients abroad.

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

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

ESR
Jean-Guy Barboteau, Chairman & CEO:
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Florent Barboteau, Managing Director:
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