Thursday, May 11, 2006

EVS Broadcast Report

[View from EVS Broadcast Equipment Manufacturer]

Outlook 2006

"The broadcast industry is undergoing a major technological evolution. EVS serves hundreds of TV stations worldwide with its high- end digital video and audio applications, especially in the field of live sports and studio productions where the company has developed leadership positions in niche markets. The migration from tape-based operations towards integrated tapeless workflows is underway and will last during the next decade. This process is accelerated by the transition from Standard Definition Television to High Definition Television because new equipment needs to interoperate with digital solutions that shall be High Definition. Hence, EVS directly benefits from two key broadcast industry drivers, i.e. HDTV and Sport. EVS has a double growth strategy for its broadcast business: first, to benefit from its Mobile TV Production leadership and transition all production trucks to HDTV over the next 6-10 years; second, to develop the Near-Live Studio Editing market for which the XT[2] platform is to become the core engine. HDTV will impact the business over a long period of time and shall follow usual equipment acquisition wave patterns."

Li├Ęge (Belgium), 11 May 2006, EVS Broadcast Equipment S.A.

About EVS Group

EVS Group designs, develops and markets professional digital equipment for Television (EVS Broadcast) and Cinema (XDC). The Group employs over 180 persons in 9 countries and sells its products to professionals of the video and audio sectors in more than 70 countries. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371. For more information, refer to.

EVS Broadcast is the world leader for Live TV Production Digital Disk Recorders and Related Software Applications, especially in the field of sports. The company's dedicated hardware and software suite offer a complete production platform: live slow motion (LSM), high speed slow motion, replay only, clips generation, quick clips editing, real- time SD/HD video files transfer, time delay, multi-camera recording, metadata association, graphics storage and play-out, digital transmission, multi-format ingest and play-back, audio record & edit. Main software applications are running on the dedicated robust and flexible hardware the "XT Platform".

EVS client list includes the BBC, NBC, BSkyB, FOX, RTL, and in Asia- Pacific NHK Japan and CCTV China.

EVS's strong performance Jan-March 2006 it says is due to equipment deployments lead by worldwide sporting events which took place in Europe (Winter Olympics in Italy, February; Soccer World Cup in Germany, June/July), in Australia (Commonwealth Games, March) and in Qatar (Asian Games, December). Broadcasters usually complete and upgrade their mobile facilities for large one-time sporting events where investments may represent between 2 and 5% of the TV rights respectively.

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