HF Company

Earnings Release • Sep 22, 2010

H1-2010 results Operating profit up 5.4% Net profit up 11.8% Sharp increase in operating cash flow

In the first half of 2010, HF Company reported consolidated sales of €72m, up 1.1% from the first half of 2009 (up 3% on a like-for-like basis). For the third consecutive six-month period, HF Company posted sales growth, confirming the resilience of its business model in a disturbed economic environment.

Operating profit came to €5.2m, up 5.4%, mainly driven by a significant increase in the margin of TV Activities. Net attributable profit came to €3.5m, up almost 12% from H1-2009.

HF Company's balance sheet was strengthened in the first half of 2010 with a net cash position of €3.8m, a sharply increased operating cash flow of €7.9m and debt of only €0.9m. Equity came to €71.6m, i.e. €19.06 per share.

Strong growth prospects for the years ahead

2010 is expected to produce significant growth – especially in the second half – driven by:

• TV Activities, helped by the ongoing switch-over (changeover from analog to digital TV) in France
• PCL (online power carrier), even if part of sales have been postponed to 2011 due to a worldwide scarcity of components.

Expansion is likely to continue picking up in 2011. The Group's two growth paths enjoy significant growth potential despite the global economic environment. TV Activities will remain buoyed by further switch-overs in Europe. The Group's strategic PLC activity should go rapidly international, catering to European operators in the pre-marketing phase of IPTV on their domestic markets.

The Group's prospects for the years ahead are therefore excellent with strong growth perspectives in the buoyant PCL market, expected to account for about 25% of consolidated sales in 2012.

Next meeting:

Publication of Q3-2010 sales on 18 October 2010 after trading hours

Contacts comfi@hfcompany.com stahrst@cmcics.com

HF Company Press: Stephanie Stahr : +33 (0)2 47 34 38 38 : +33 (0)1 45 96 77 83

ISIN: FR0000038531– Reuters: HFCO.LN - Bloomberg: HFCO NM

1/2 About HF Company: HF Company is a major player in the market for TV Activities notably DVB, PCL technology and office automation ergonomics. The Broadband business is the leading global provider of splitters. HF Company, which is quoted on the Eurolist (section C), has been awarded the Entreprise Innovante (Innovative Business) label by OSEO ANVAR (number A0912002F) and is also eligible for inclusion in FCP (fonds commun de placement-French investment funds).