HF Company

Earnings Release • Mar 18, 2009

Tours, 18 March 2009

2008 consolidated financial statements

Net profit: €5.3m

Dividends proposal maintained at €0.66 per share -

Results held up well despite a weak environment

HF Company reported consolidated sales of €131.8m in FY2008, down 7.8% from the 2007 financial year. Hurt by an extremely tense environment, demand declined more rapidly in the 4th quarter, particularly in France and the United States.

Against this background, the group managed to exploit the flexibility of its economic model and a series of management decisions to record net profit of €5.3m and to generate an operating cash-flow¹ of €7.5m. The financial structure was improved in 2008 with a gearing(2)of 11.6% and a net financial debt of only €7.8m.

€m	2006	2007	2008	Change
Sales	136.4	142.9	131.8	-7.8%
Operating profit	8.5	10.9	8.7	-20%
Operating margin	6.2%	7.6%	6.6%	-1pt
Net financial loss	-0.8	-1.1	-0.8	-27%
Net attributable profit	4.9	5.9	5.3	-10.1%
Net attributable profit per share	1.19	1.42	1.40	-1.4%

Dividends proposal maintained at €0.66 per share

In 2008, the group paid out €6.3m to its shareholders in the form of dividends and share buybacks. Management intends to continue this policy while preserving the capacity to seize great opportunities. Management therefore plans to invite the General Meeting to maintain a dividend of €0.66 per share, i.e. a yield of 15% at the closing price on 16 March.

Outlook

A sound financial structure, a steady flow of innovations and a European supply chain allowed the group to strengthen its position as a leading supplier of international retailers. HF Company can be expected to gain market share in 2009 on the back of many new quality customers acquired at the end of 2008.

In a persistently difficult environment in 2009 the group will be able to count primarily on:

• its Office Automation Ergonomics marketing plan and rapid growth of the CPL market,

• strong TV Reception sales, buoyed in 2009 by the analog turn-off in Italy, Spain, France and the United Kingdom as well as the start of digital reception in Portugal, Greece and the Central European countries, where the group is already established.

While management maintains cautious Broadband forecasts, the group could benefit from a strong leadership position compared with rivals weakened by the crisis.

Next meeting: Publication of Q1-2009 sales after trading hours on 21 April 2009

Contacts
HF Company			Press: Stéphanie Stahr
: +33 (0)2 47 34 38 38				: +33(0)1 45 96 77 83
comfi@hfcompany.com		stahrst@cmcics.com
ISIN: FR0000038531– Reuters: HFCO.LN Bloomberg: HFCO NM
About HF Company: HF Company is a major player on the market for TV reception, digital peripherals and office automation ergonomics. HF Company's Broadband business also makes it the world leader in the Splitters market. HF Company is listed on 'Eurolist (Compartment C), and has

been awarded the "innovative company" label by OSEO ANVAR.

⁽¹⁾ Operating cash flow: cash flow after the cost of financial debt and taxes less working capital requirements

⁽²⁾ Gearing : debt-to-equity ratio