Parrot

Regulatory Filings • Jan 29, 2010

Press release – DA FACT

Parrot takes a stake in DA FACT, creator of wireless digital musical intruments

Paris, January 29th, 2010

Parrot announces it has taken a minority stake in Da Fact, a Parisian start-up creating digital musical instrument, co-founded by the musician Rémi Dury and the sound engineer Bernard Garabedian.

The creators of Da Fact explain: "With their versatility, Da Fact digital instruments' can embrace the entirety of musical arts, from classical to underground music. With their intuitive ergonomics, placing the body of the artist at the center of his art, they also open new artistic possibilities, just like the Nintendo Wii or Apple iPhone have opened up new usage."

The digital instruments created by Da Fact result from 7 years of intensive research and development and are protected by several patents.

Parrot is investing 1 000 560 Euros for a 49% stake in Da Fact. The rest of the ownership is shared between the cofounders of Da Fact. Funding shall be provided in 3 installments of approximately 335 000 euros paid between 2010 and 2013. Furthermore, Parrot has an option to purchase the remaining 51% between 2013 and 2015. In case the option is not exercised, the co-founders could buy back the 49% stake held by Parrot.

The financial resources allocated by Parrot will be mainly dedicated to evaluating the potential of this new market as well as the initial sales of the first product, the Karlax, a multimedia and futuristic digital musical instrument. The Parrot brand will also be associated to the Da Fact products through a "Sponsored by Parrot" word mark on all existing and upcoming Da Fact products. Finally, the agreement will enable Parrot to access the licenses developed by Da Fact in the video games field, to explore new possibilities of development in this area.

Henri Seydoux, CEO of Parrot, adds: "Discovering new uses is part of the DNA of Parrot: hands-free systems for cars, wireless digital music, and very recently the first drone controlled by Wi-Fi. Together, Parrot and Da Fact will explore new possibilities at the technological frontiers between music, multimedia and video games."

About DA FACT

DA FACT is a young innovative instrument factory dedicated to audio and visual digital arts. DA FACT is the winner of numerous prizes of innovation such as the "Concours d'Aide à la Creation d'Entreprises de Technologies Innovantes" of the French Research Ministry in 2004 and 2005, the Quartz Electronic Music Awards in 2005 and the award for innovation of the city of Paris in 2007. DA FACT was created with the ambition to offer artists in digital musical and visual arts a range of instruments which would grant them openness, expression capability and pleasure of playing while breaking the constraints associated with traditional controllers and computer interfaces issued from the information technology world. Karlax is the premier instrument of absolute control bringing this vision to life.

About PARROT

Parrot, a global leader in wireless devices for mobile phones, stands on the cutting edge of innovation. The company was founded in 1994 by Henri Seydoux as part of his determination to drive the inevitable breakthrough of mobile phones into everyday life by creating high-quality, user-friendly wireless devices for easy living. Parrot has developed the most extensive range of hands-free systems on the market for cars, motorbikes and scooters, including wireless multimedia products geared towards audiovisual applications. In 2008, Parrot launched a new prestige line of high-end products bearing the hallmark of renowned artists. Parrot, headquartered in Paris, currently employs 450 people worldwide and generates 85% of its sales overseas. Parrot is listed on NYSE Euronext Paris since 2006. www.parrot.com NYSE Euronext Paris (FR0004038263 – PARRO)