Smartphoto Group N.V.

Quarterly Report • May 25, 2012

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PRESS RELEASE – Regulated information

Wetteren, 25 May 2012

Changed consolidated figures 2010 and 2011

concerning the useful life of externally acquired customer relationships

Referring to the press release dated May 8, 2012, in which the Board of Directors announced the change in the consolidated financial statements for the 2010 and 2011 financial years concerning the externally acquired customer relationships, in particular the definite or indefinite useful life thereof, the audited adjusted consolidated statements of financial position and income statement are presented hereafter.

Income statement for the period (in € '000)	2010 published	2010 change	2010 after change	2011 published	2011 change	2011 after change
Revenue	223 347		223 347	197 405		197 405
Other operating income	5 459		5 459	4 142		4 142
Changes in inventory of finished goods & work in progress	14		14	- 8		- 8
Work performed by enterprise and capiltalised	40		40	2		2
Trade goods, raw materials and consumables	- 159 888		- 159 888	- 140 285		- 140 285
Employee expenses	- 30 373		- 30 373	- 28 472		- 28 472
Depreciation and amortisation expenses	- 5 738	- 8 072	- 13 810	- 4 415	- 729	- 5 144
Other operating expenses	- 28 225		- 28 225	- 30 048		- 30 048
Profit/loss (-) from operating activities, before non
recurring items	4 635	- 8 072	- 3 438	- 1 678	- 729	- 2 407
Non-recurring items from operating activities	- 1 501		- 1 501	- 1 732		- 1 732
Profit/loss (-) from operating activities	3 134	- 8 072	- 4 938	- 3 411	- 729	- 4 140
Financial income	565		565	509		509
Financial costs	- 4 013		- 4 013	- 2 333		- 2 333
Financial cost-net, before non-recurring items	- 3 448		- 3 448	- 1 824		- 1 824
Non-recurring financial items				2 011		2 011
Financial result	- 3 448		- 3 448	187		187
Profit/loss (-) before taxes, before non-recurring financial items	- 313	- 8 072	- 8 386	- 5 235	- 729	- 5 964
Profit/loss (-) before taxes	- 313	- 8 072	- 8 386	- 3 224	- 729	- 3 953
Income tax expense (-)/ income	413	348	761	1 101	- 21	1 080
Profit/loss (-) from continuing activities	99	- 7 724	- 7 625	- 2 123	- 750	- 2 873
Profit/loss (-) for the period	99	- 7 724	- 7 625	- 2 123	- 750	- 2 873
Attributable to equity holders of the parent company	99	- 7 724	- 7 625	- 2 123	- 750	- 2 873

Statement of comprehensive income for the period (in € '000)	2010 published	2010 change	2010 after change	2011 published	2011 change	2011 after change
Profit/loss (-) for the period	99	- 7 724	- 7 625	- 2 123	- 750	- 2 873
Currency translation adjustments :	1 279	- 80	1 199	- 248	- 21	- 269
Gains/losses (-) arising during the year	689	- 80	610	- 248	- 21	- 269
Reclassification adjustments for gains/losses (-) included in profit
or loss	589		589
Revaluation surplus				5 514		5 514
Income tax relating to components of other comprehensive income				- 179		- 179
Total comprehensive income for the period attributable to equity
holders of the parent company	1 378	- 7 804	- 6 426	2 964	- 771	2 193

STATEMENT OF FINANCIAL POSITION AS AT (in € '000) THE END OF THE PERIOD	2010 published	2010 change	2010 after change	2011 published	2011 change	2011 after change
ASSETS
Non-current assets
Property, plant and equipment Consolidation goodwill and other goodwill Intangible assets other than goodwill	17 980 18 849 10 288	- 8 172	17 980 18 849 2 116	20 849 18 603 10 247	- 8 929	20 849 18 603 1 318
Other non-current financial assets Long term receivables	49 224		49 224	49 199		49 199
Deferred tax assets Non-current assets	7 760 55 151	- 8 172	7 760 46 979	8 881 58 828	- 8 929	8 881 49 899
Current assets Assets held for sale Inventories	636 33 445		636 33 445	735 20 337		735 20 337
Trade and other receivables Investment securities - current	16 267 3		16 267 3	14 149 3		14 149 3
Cash and cash equivalents Current income tax assets Current assets	16 580 892 67 823		16 580 892 67 823	10 235 250 45 709		10 235 250 45 709
TOTAL ASSETS	122 974	- 8 172	114 802	104 537	- 8 929	95 608
EQUITY AND LIABILITIES
Total equity Capital Reserves and retained earnings/ accumulated loss (-) Revaluation surplus	64 194 - 33 804	- 7 725	64 194 - 41 529	64 194 - 35 927 5 335	- 8 474	64 194 - 44 402 5 335
Treasury shares (-) Currency translation adjustments	- 2 422 2 508	- 80	- 2 422 2 428	- 2 422 2 260	- 102	- 2 422 2 159
Shareholder's equity	30 475	- 7 805	22 671	33 439	- 8 576	24 864
Total equity	30 475	- 7 805	22 671	33 439	- 8 576	24 864
Non-current liabilities Non-current interest-bearing financial obligations Employee benefit liabilities Non-current provisions Deferred tax liabilities Non-current liabilities	28 697 535 1 069 979 31 279	- 368 - 368	28 697 535 1 069 611 30 912	8 468 474 1 236 1 113 11 290	- 354 - 354	8 468 474 1 236 759 10 937
Current liabilities Liabilities held for sale Current interest-bearing financial obligations Trade and other payables Employee benefit liabilities Current income tax liabilities Current portion of provisions Current liabilities	653 17 444 37 971 4 320 194 637 61 219		653 17 444 37 971 4 320 194 637 61 219	753 33 904 19 837 4 061 45 1 208 59 808		753 33 904 19 837 4 061 45 1 208 59 808
TOTAL EQUITY AND LIABILITIES	122 974	- 8 172	114 802	104 537	- 8 929	95 608

NOTES RELATING TO THE AMENDMENT OF CONSOLIDATED RESULTS 2010 AND 2011

The change in the amortisation method and period was applied retroactively in accordance with IAS 8.41 resulting in an additional amortisation expense of EUR 8,072 ('000) to the consolidated figures for 2010 and EUR 729 (000) to the consolidated figures of 2011.

The following items in the consolidated statements of financial position and income statements were affected:

For the consolidated figures of 2010:

• an increase in amortisation by EUR 8,072 ('000) to EUR 13,810 ('000);
• a reduction in income tax by EUR 348 ('000);
• a decrease in the result from continuing activities by EUR 7,724 ('000) to minus EUR 7,625 ('000); the result adjusted for non-cash expenses remains unchanged;
• a decrease of the intangible assets other than goodwill by EUR 8,172 ('000) to EUR 2,116 ('000);
• a decrease in equity by EUR 7,805 ('000) to EUR 22,671 ('000);
• a decrease in the deferred tax liabilities by EUR 368 ('000).

For the consolidated figures of 2011:

• an increase in amortisation by 729 ('000) to EUR 5,144 ('000), relating the pro rata temporis amortisations of the externally acquired customer relationships in 2010;
• a reduction in income tax by EUR 21 ('000);
• a decrease in the result from continuing activities by EUR EUR 750 ('000) to minus EUR 2,873 ('000); the result adjusted for non-cash expenses, remains unchanged;
• a decrease in the intangible assets other than goodwill by EUR 8,929 ('000) to EUR 1,318 ('000);
• a decrease in equity by EUR 8,576 ('000) to EUR 24,864 ('000);
• a decrease in the deferred tax liabilities by EUR 354 ('000).

An adjusted version of the 2011 Annual Report is available on the website www.spectorphotogroup.com. In Appendix 1 to the 2011 Annual Report, the reconciliation between the consolidated figures for the year 2010 as filed with the National Bank of Belgium and the amended consolidated figures is included.

The comparable figures, disclosed in 2012, are also adjusted.

Statement of the Committee of Statutory Auditors

COMMITTEE OF STATUTORY AUDITOR'S REPORT OF SPECTOR PHOTO GROUP NV ON THE ADJUSTED CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2010 AND 31 DECEMBER 2011 BEING PART OF THE PRESS RELEASE OF 25 MAY 2012

Unqualified audit opinion on the adjusted consolidated balance sheet and income statement on 31 December 2010 and 31 December 2011 with an explanatory paragraph

We have audited the adjusted consolidated balance sheet and income statement for the year ended 31 December, 2010 prepared in accordance with International Financial Reporting Standards as adopted by the European Union, which show a balance sheet total of EUR (000) 114.802 and a loss for the year of EUR (000) 7.625 and also the adjusted consolidated balance sheet and income statement for the year ended 31 December, 2011 prepared in accordance with International Financial Reporting Standards as adopted by the European Union, which show a balance sheet total of EUR (000) 95.608 and a loss for the year of EUR (000) 2.873.

Management is responsible for the preparation and the fair presentation of these adjusted consolidated balance sheets and income statements. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation of the adjusted consolidated balance sheets and income statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting principles and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these adjusted consolidated balance sheets and income statements based on our audit. We conducted our audit in accordance with the legal requirements and the Auditing Standards applicable in Belgium, as issued by the Institute of Registered Auditors (Institut des Réviseurs d'Entreprises / Instituut van de Bedrijfsrevisoren). Those standards require that we plan and perform the audit to obtain reasonable assurance whether the adjusted consolidated balance sheets and income statements are free from material misstatement, whether due to fraud or error.

In accordance with the above-mentioned auditing standards, we considered the group's accounting system, as well as its internal control procedures. We have obtained from management and the company's officials, the explanations and information necessary for executing our audit procedures. We have examined, on a test basis, the evidence supporting the amounts included in the adjusted consolidated balance sheets and income statements. We have assessed the appropriateness of the accounting policies and consolidation principles, the reasonableness of the significant accounting estimates made by the company, as well as the overall presentation of the adjusted consolidated balance sheets and income statements. We believe that these procedures provide a reasonable basis for our opinion.

In our opinion the adjusted consolidated balance sheets and income statements for the year ended 31 December, 2010 and 31 December, 2011 give a true and fair view of the group's assets and liabilities, its financial position and the results of its operations in accordance with International Financial Reporting Standards as adopted by the European Union

Notwithstanding our unqualified opinion, we draw the attention to the adjusted consolidated director's report dated 21 May, 2012 in which the board of directors explains the adjustment of the consolidated figures of 2010 and 2011 and motivates the valuation of the intangible assets ( consolidation goodwill included), the deferred tax assets and the inclusion of Photo Hall Multimedia in the consolidation under the assumption of going concern, taken into account the changing market conditions. The motivation of the valuation of the intangible assets (consolidation goodwill included) and deferred tax assets depends on the future positive development of the markets on which the business plan is based. The inclusion of Photo Hall Multimedia in the consolidation under the assumption of going concern depends on the further financial support of its banks and on the realisation of the announced restructuring measures.

The adjustment of the consolidated figures of 2010 and 2011 concerns the depreciation method and lifetime of the external acquired customer relationships from "indefinite" to "finite" as explained in the above mentioned adjusted consolidated director's report. As established in 2010 by the board of directors, a straight-line depreciation method over a period of 7 years was no longer an adequate representation of the reality and it was impossible to determine a "best estimate" of the lifetime. In view of the fact that a lifetime had to be determined, the board of directors is of the opinion that the most transparent estimate is an amortisation period of one year. Taking into account the foregoing we are of the opinion that there will be always an element of uncertainty while determining the lifetime (depreciation period).

Gent, May 23, 2012

The Committee of Statutory Auditors

Represented by Represented by

Ria Verheyen Leen Defoer Statutory Auditor Statutory Auditor

PKF bedrijfsrevisoren CVBA Grant Thornton, Lippens & Rabaey

This press release is an English translation of the official Dutch version.

For additional information, please contact: Tonny Van Doorslaer, Executive Chairman,

Spector Photo Group NV Kwatrechtsteenweg 160, B -9230 Wetteren, Belgium +32 9 365 98 10 Email: vdstockm@spector.be