Pentalog will report a 50% production increase for the second quarter 2008 compared to the same period in 2007.This booming activity was mainly drawn by the expansion of Eastern-European business (bank, telecom, industry). On the German side, the Frankfurt subsidiary, focused on java and dotnet development activities achieves 7% of the sales figure and 20% of the group's total growth. The Ukrainian subsidiary is still at an embryonic stage and thus will probably not contribute significantly to the group's growth before the 4th quarter. The Kiev team is currently working for a local subsidiary of the European leader in the banking sector.

If we look at the offshore production, a certain number of clients (particularly innovative companies) have clearly increased their development operations. During the second quarter the group experienced its first failure with an offshore client and will make sure that this does not happen again in the future. Regarding engineering activities, the trend is a rising demand in R&D (especially in embedded software) which jumped by 100% in Pentalog's business. These activities represent 45 employees and several bids are still being analysed.

The BPO contracts have significantly contributed to the company's growth, with 22 persons involved in the contact centre (call and data management), 10 in finance and accountancy, 5 in DTP and content management. This business does not yet account for a big part of the sales figure since the prices are very low. However the net profit ratio meets our objectives.

By the way the group is searching for a partner to manage and market the "contact centre" offer.

After reassessing the growth rate to 5% for the first quarter, the company should confirm a 50% progression in turnover for the first semester, with 80% of organic growth, far ahead from the usual 6% expected in most of the Western European countries

Pentalog will have at least 240 employees by the end of June and sales will exceed the 2006 level by the 15th of June. For this year, the sales objective is EUR 7 - 7,5M. The operating margin meets the group's strategic expectations.