Novabase SGPS

Interim / Quarterly Report • Aug 21, 2012

REPORT AND ACCOUNTS - 1ST HALF 2012

I - Management Report

• 1. Key Indicators Evolution
• 2. Short Summary of the Activity
• 3. Stock Performance
• 4. Outlook 2012

II - Consolidated Financial Statements

III - Annexes to the Management Report

• I Shareholding Structure and Qualified Holdings
• II Management Transactions
• III Own Shares Transactions

IV - Condensed Consolidated Accounts

V - Statement of Compliance

Consolidated Results 6M12

Privileged Information July 26, 2012

Highlights:

Turnover: 108.6 M€ (119.1 M€ in 6M11)

EBITDA: 10.3 M€ (8.2 M€ in 6M11)

Net Profit: 4.5 M€ (3.5 M€ in 6M11)

Net Cash: 25.1 M€ (14.7 M€ in 12M11)

Message from the CEO - Luís Paulo Salvado

"The results of the first half are strongly positive, reflecting a significant progress in the Novabase's strategic priorities.

1/3 of the total business is generated outside Portugal, as a result of the significant growth of the international business by 72%. Likewise, the services already accounts for more than 2/3 of the total business, thanks to a 10% increase. EBITDA increased by 25% and Net Profit grew 30%. Also positive was the evolution of cash, with a generation above 10 M€ since the beginning of the year.

These results show that the measures implemented by the end of the previous year, in order to adapt the company to current market challenges, are proving to be very effective.

However, the current macroeconomic environment has adversely impacted our domestic business, especially in the components where we have less strategic control. Thus, the business of third party products declined by 33%, leading to a decrease of 9% in total Turnover.

To continue to maximize synergies between businesses, we decided to reorganize Digital TV operations. In order to increase operating efficiency, we will integrate the solutions for TV operators in the Infrastructures & Managed Services business. On the other hand, the solutions System-in-Package (SIP), strongly supported in R&D investments and intellectual property, will be transferred to the Venture Capital business, where they will have a more suitable platform for its future development.

2012 continues proving to be a challenging year, but these results allow us to confirm our commitment to compliance with the Guidance and reaffirm our priorities for the future."

INVESTOR RELATIONS OFFICE: María Gil Marín Tel. +351 213 836 300 Fax: +351 213 836 301 investor.relations@novabase.pt

Report available on website : www.novabase.pt

Novabase SGPS, S.A. Public Company . Euronext code: NBA.AM . Registered in TRO of Lisbon and Corporate Tax Payer nº 502.280.182 . Share Capital: 15,700,697.00 € . Head Office: Av. D. João II, Lote 1.03.2.3., 1998-031 Lisbon - PORTUGAL

1. Key Indicators Evolution

Turnover (M€)

Turnover below the annual Guidance linearized (-9.5%), due to the contraction of business in Portugal in the product component.

EBITDA (M€)

Earnings per share (EPS) in 6M12 reached 0.15 euros per share, registering an increase of 28.8% towards the EPS from the previous year of 0.11 euros per share.

EBITDA above the annual Guidance linearized of 16- 19 M€ and 7.3%: +17.3% above the middle of the range (+2.2 points %).

Significant improvement of profitability as a result of the measures adopted in the

end of 2011.

From EBITDA to Net Profit 6M12 Vs 6M11 (M€)

Non-controlling interests in 6M12 amounted to -0.9 M€, which compares to -0.4 M€ in 6M11. This variation is mainly due to the positive evolution of the results of subsidiaries Collab and Celfocus compared to the same period of the prior year.

In the 6M12, Novabase shows a positive performance in cash generation. Novabase ended the 6M12 with 25.1 M€ in net cash, which compares to 14.7 M€ in the 12M11.

On June 4th 2012, Novabase paid its shareholders a total amount of 0.9 M€ (0.03€/share).

Cash generation of 10.5 M€ in the first half of 2012.

2. Short Summary of the Activity

The first half of 2012 was marked by strong pressure on prices in the third party product component in Portugal, but also by significant improvement of the operating performance, which already reflects the measures adopted in the end of 2011 (restructuring process with the double objective of decreasing the average production cost and enabling the company to increase international growth).

Thus, the results of the first half of 2012 are below the Turnover Guidance (-9.5%), but remained above the middle of the range of the EBITDA Guidance (+17.3%). Compared to 2011, Turnover decreased 8.9%, however, services grew 9.9% and international business represented 33.2% of the total business. EBITDA raised 25.2% and Net Profit reached 4.5 M€.

Novabase's management was focused on strengthening internationalization, the great challenge of the company for 2012, continuing the effort to maintain the position in the domestic market, which is proving extremely challenging.

Noteworthy is the inauguration of Parque Oriente Operations Centre in the first quarter of 2012. The new space, which occupies more than 3,000 m2 and is designed to operate 24 hours a day, 7 days a week, incorporates all of the expertise needed to design and deploy large-scale technology infrastructure projects. This new Operations Centre at Parque Oriente will allow us to reinforce outsourcing and managed services in Portugal and the rest of the world.

In the second quarter of the year, Novabase strengthened its focus on the Financial sector with the acquisition of 100% stake in Binómio, a company specialising in financial assets management solutions, that holds a paramount position in Portugal with insurance and pension management companies and also has customers in the PALOPs (African Portuguese Speaking Countries), namely in Angola.

Also worthy of note in this first half of 2012, is the distinction of Novabase as Best System Integrator in 2011, in the National Conference of IBM Business Partners. Additionally, Collab has received three awards at the Conference Beyond 2013, attributed by the Portuguese Association of Contact Centers (APCC) to the organizations that had a key role in their Customer Relations Centres in 2012: Best IVR Platform 2012, Best Workforce Management Platform 2012 and Best Agent Front End (CRM) 2012.

The percentage breakdown of Turnover and EBITDA by the different businesses, in the 6M12, is as follows:

This investment is part of Novabase's growth and internationalization strategy for the Financial Services sector.

9.9% rise in services, in line with Novabase strategic orientation to increase the added value of its offers.

International business increased 71.5%, reflecting a strong focus on markets

outside Portugal.

Of the overall Turnover generated in 6M12, the services rendered represents 67.4%, which compares to 55.9% in 6M11.

Of the 108.6 M€ Turnover, 33.2% is generated outside Portugal, that is 36.1 M€, which compares to the 21.0 M€ registered in 6M11.

Turnover by geography 6M11 Turnover by geography 6M12

Business outside Portugal generated in the Business Solutions area increased to 29.8% of the respective invoicing (16.2% in 6M11). In the IMS business area, the international business in 6M12 increased to 34.5% (22.0% in 6M11) and in the Digital TV area increased to 36.4% (13.7% in 6M11).

Novabase had on average, in the 6M12, 2,134 employees, which represents an increase of 0.4% compared to the 6M11 (2,125) and of 1.2% compared to FY11 (2,109).

Employee breakdown by business area, in 6M12, is as follows:

Average Number of Employees

Average number of employees evolution includes the talent renovation by the recruitment of 161 university graduates through Novabase Academy program.

Average Number of Employees by geography 6M11

Average Number of Employees by geography 6M12

2.1. Business Solutions

Turnover Business Solutions (M€)

BS Turnover evolution reflects the significant growth of the international component (2x vs. 6M11).

EBITDA Business Solutions (M€)

BS positive evolution reflects the measures adopted for the improvement of operating competitiveness.

2.2. Infrastructures & Managed Services

IMS evolution is mainly due to the pressure on prices in the product sales component in Portugal, despite the growth in services (+11.5%) and international sales (+24.1%). However, this area should be analysed for more extended periods of time.

2.3. Digital TV

The negative evolution of DTV area is explained by the strong contraction of business in Portugal, despite the international business growth (+92.2%).

EBITDA Digital TV (M€)

With effect from the second half of the year, it was decided to reorganize the DTV area in order to maximize synergies between businesses and to increase operating efficiency.

2.4. Venture Capital

Global Turnover in this area reached 1.9 M€, which represents an increase of 169.3% compared to 6M11.

Venture Capital EBITDA in 6M12 increased, year on year, from -0.6 M€ to 0.7 M€, reaching an EBITDA margin of 34.2%.

3. Stock Performance

Novabase share price in 6M12 lost 9.1%, comparing to a 14.5% loss in the PSI20 Index and a 0.5% gain in the EuroStoxx Technology Index.

In this period, a dividend of 0.03€/share was distributed.

Novabase and the Market

Excluding the shareholder remuneration, the

depreciation of Novabase share price would be 7.7%.

VC results are primarily due to the improvement of the performance of subsidiary

Collab.

When comparing Novabase share prices with other companies in the IT sector in Europe, we verify that Novabase share performance in 6M12 was in line with the values of the average performance of other IT.

Novabase and other TMT

Average upside of 93.0%, according to the analysts who cover Novabase.

The average price target disclosed by the analysts who cover Novabase is 3.67 euros.

Rotation in 6M12 represented 8.1% of the capital and 2.5 million shares were traded, below the values in 6M11 (rotation of 10.7% of the capital and 3.4 million shares traded).

Summary	2Q12	1Q12	4Q11	3Q11	2Q11
Minimum price (€)	1.89	1.99	1.70	2.26	2.58
Maximum price (€)	2.30	2.32	2.38	2.75	3.10
Volume weighted average price (€)	2.03	1.92	1.99	2.55	2.80
Closing price at the end of the Quarter (€)	1.90	2.32	2.09	2.45	2.75
Nr. of shares traded	1,826,016	717,461	833,186	1,284,390 1,491,268
Market cap in the last day (M€)	59.7	72.9	65.6	76.9	86.4

4. Outlook 2012

The results of the first half of 2012 are positive, 17.3% above the middle of the range of the EBITDA Guidance, as a result of the measures implemented in the end of 2011 for the improvement of operating competitiveness. International business now accounts for 33.2% of total business and the weight of services increased to 67.4%. However, we experienced a strong pressure in the product component in Portugal, which explains the negative evolution of Turnover in this semester.

In order to maximize synergies and to increase operating efficiency of the businesses, Novabase decided to reorganize the Digital TV area, by integrating their offerings in the IMS and VC businesses, from the second half of the year. We believe this new model will be able to better meet the specific characteristics of each business, and is more suited to the nature of these operations, maturities and investment needs.

Despite the macroeconomic context, that remains difficult and uncertain, Novabase is committed to compliance with the Guidance for 2012, which in terms of Turnover we consider more challenging, reaffirming as its priorities the international focus and the preservation of the position in the domestic market.

Consolidated Statement of Financial Position Consolidated Income Statement as at 30 June 2012 for the period of 6 months ended 30 June 2012

(Thousands of Euros) (Thousands of Assets Tangible assets 7,693 9,000 Sale of goods Intangible assets 30,335 31,127 Cost of goods sold	(Thousands of Euros) (Thousands of 35,369 52,551 (30,697) (47,690) 4,672 4,861
Financial investments 1,974 1,786
Deferred income tax assets 11,980 12,387 Gross margin
Other non-current assets 30 -
Other income
Total Non-Current Assets 52,012 54,300 Services rendered	73,184 66,577
Supplementary income Supplementary income	63 101
Inventories 6,776 6,909 Other operating income Trade debtors and accrued income 87,834 99,168	345 140
Other debtors and prepaid expenses 22,870 18,523	73,592 66,818
Derivative financial instruments 178 245
Available-for-sale financial assets 9,953 -
Cash and cash equivalents 26,105 27,157	78,264 71,679
Total Current Assets 153,716 152,002 Other expenses
External supplies and services	( ) 28 572) , ( ) 24 898) ,
Assets for continuing operations 205,728 206,302 Employee benefit expense	(38,502) (38,686)
(Provisions) / Provisions reversal	(701) 614
Assets for discontinued operations - - Other operating expenses	(223) (511)
Total Assets 205,728 206,302	(67,998) (63,481)
Shareholders' Equity Gross Net Profit (EBITDA)	10,266 8,198
Share capital 15,701 15,701 Depreciation and amortization	(2,870) (2,910)
Treasury shares (371) (490)
Share premium 43,560 43,560 Operating Profit (EBIT)	7,396 5,288
Reserves and retained earnings 33,679 31,206 Financial Gains / (Losses)	(390) (341)
Net profit 4,514 2,651
Net Profit before taxes (EBT)	7,006 4,947
Total Shareholders' Equity 97,083 92,628 Income tax expense	(1,578) (1,087)
Non-controlling interests 10,752 9,811 Non-controlling interests	(914) (380)
Total Equity 107,835 102,439 Attributable Net Profit Attributable Net Profit	4 514 , 3 480 ,
Liabilities
Non-current borrowings 8,425 10,500
Finance lease liabilities 1,202 1,528
Provisions 2,257 1,721
Deferred income tax liabilities 100 100 Other information:
Other non-current liabilities 70 308
Total Non-Current Liabilities 12,054 14,157 Turnover	108,553 119,128
Gross margin from sales % Gross margin from sales Current borrowings 3,909 4,053 EBITDA margin	13 2 % . 93% . 9.5 % 6.9 %
Trade payables 24,292 26,165 EBT % on Turnover	6.5 % 4.2 %
Other creditors and accruals 34,841 36,013 Net profit % on Turnover	4.2 % 2.9 %
Derivative financial instruments 243 461
Deferred income 22,209 22,669
Total Current Liabilities 85,494 89,361
Total Liabilities for cont. operations 97,548 103,518
Total Liabilities for discont. operations 345 345
Total Liabilities 97,893 103,863
Total Equity and Liabilities 205,728 206,302
Net Cash 25,134 14,653

	30.06.12	31.12.11		30.06.12	30.06.11	Var. %
	(Thousands of	(Thousands of Euros)		(Thousands of	(Thousands of Euros)
Assets
Tangible assets	7,693	9,000	Sale of goods	35,369	52,551
Intangible assets	30,335	31,127	Cost of goods sold	(30,697)	(47,690)
Financial investments	1,974	1,786
Deferred income tax assets	11,980	12,387	Gross margin	4,672	4,861	-3.9 %
Other non-current assets	30	-
			Other income
Total Non-Current Assets	52,012	54,300	Services rendered	73,184	66,577
			Supplementary income Supplementary income	63	101
Inventories	6,776	6,909	Other operating income	345	140
Trade debtors and accrued income	87,834	99,168
Other debtors and prepaid expenses	22,870	18,523		73,592	66,818
Derivative financial instruments	178	245
Available-for-sale financial assets	9,953	-
Cash and cash equivalents	26,105	27,157		78,264	71,679
Total Current Assets	153,716	152,002	Other expenses
			External supplies and services	( ) 28 572) ,	( ) 24 898) ,
Assets for continuing operations	205,728	206,302	Employee benefit expense	(38,502)	(38,686)
			(Provisions) / Provisions reversal	(701)	614
Assets for discontinued operations	-	-	Other operating expenses	(223)	(511)
Total Assets	205,728	206,302		(67,998)	(63,481)
Shareholders' Equity			Gross Net Profit (EBITDA)	10,266	8,198	25.2 %
Share capital	15,701	15,701	Depreciation and amortization	(2,870)	(2,910)
Treasury shares	(371)	(490)
Share premium	43,560	43,560	Operating Profit (EBIT)	7,396	5,288	39.9 %
Reserves and retained earnings	33,679	31,206	Financial Gains / (Losses)	(390)	(341)
Net profit	4,514	2,651
			Net Profit before taxes (EBT)	7,006	4,947	41.6 %
Total Shareholders' Equity	97,083	92,628	Income tax expense	(1,578)	(1,087)
Non-controlling interests	10,752	9,811	Non-controlling interests	(914)	(380)
Total Equity	107,835	102,439
			Attributable Net Profit Attributable Net Profit	4 514 ,	3 480 ,	29 7 % .
Liabilities
Non-current borrowings	8,425	10,500
Finance lease liabilities	1,202	1,528
Provisions	2,257	1,721
Deferred income tax liabilities	100	100	Other information:
Other non-current liabilities	70	308
Total Non-Current Liabilities	12,054	14,157	Turnover	108,553	119,128	-8.9 %
			Gross margin from sales % Gross margin from sales	13 2 % .	93% .
Current borrowings	3,909	4,053	EBITDA margin	9.5 %	6.9 %
Trade payables	24,292	26,165	EBT % on Turnover	6.5 %	4.2 %

Novabase S G P S S A Public Company Stock Code BVL: NBA IN Novabase S.G.P.S., S.A. Public Company - Stock Code BVL: NBA.INShare Capital 15 700 697 00 Euros Corporate Registration CRCL N º 1495 Share Capital 15,700,697.00 Euros - Corporate Registration CRCL N.º

Head-office Av. D. João II, Lote 1.03.2.3, Parque das Nações, 1998-031 Lisbon, PORTUGAL Corporate Tax Payer N.º 502 280 182

Consolidated Income Statement by SEGMENTS for the period of 6 months ended 30 June 2012

(Thousands of Euros)

	Business	Digital		Venture
	Solutions	IMS	TV	Capital	NOVABASE
Sale of goods	282	21,259	13,828	-	35,369
Cost of goods sold	(107)	(18,616)	(11,974)	-	(30,697)
G i ross margin	175	2 643 ,	1 854 ,	-	4 672 ,
Other income	-	-	-	-	-
Services rendered	50,015	15,233	5,989	1,947	73,184
Supplementary income and subsidies	61	-	-	2	63
Other operating income	282	51	11	1	345
	50,358	15,284	6,000	1,950	73,592
	- 50 533 ,	- 17 927 ,	- 7 854 ,	- 1 950 ,	- 78 264 ,
Other expenses	-	-	-	-	-
External supplies and services	(16,295)	(8,090)	(3,706)	(481)	(28,572)
Employee benefit expense	(27,281)	(6,694)	(3,734)	(793)	(38,502)
(Provisions) / Provisions reversal	31	(199)	(533)	-	(701)
Other operating expenses	(106)	(96)	(11)	(10)	(223)
	- (43,651)	- (15,079)	- (7,984)	- (1,284)	- (67,998)
Gross Net Profit (EBITDA)	- 6,882	- 2,848	- (130)	- 666	- 10,266
Depreciation and amortization	- (1,797)	- (675)	- (313)	- (85)	- (2,870)
Operating Profit (EBIT)	5,085	2,173	(443)	581	7,396
Financial Gains / (Losses)	- (190)	- (204)	- (32)	- 36	- (390)
Net Profit / (Loss) before Taxes (EBT)	4,895	1,969	(475)	617	7,006
Income tax expense	- (894)	- (663)	- 91	- (112)	- (1,578)
Non-controlling interests	(692)	(76)	-	(146)	(914)
Attributable Net Profit / (Loss)	3,309 -	1,230 -	(384) -	359 -	4,514 -
Other information :
Turnover	50,297	36,492	19,817	1,947	108,553
EBITDA	6,882	2,848	(130)	666	10,266
EBITDA % on Turnover	13.7%	7.8%	-0.7%	34.2%	9.5%
EBT % on Turnover	9.7%	5.4%	-2.4%	31.7%	6.5%

30 June 2012 Annex I - Management Report

Shareholding Structure and Qualified Holdings

Shareholdings of Members of the Corporate and Supervisory Boards (pursuant to Article 447/5 of the Company Code) ¹

	#	%
Shareholders	Shares	Capital and voting rights
José Afonso Oom Ferreira de Sousa	2,514,947	8.01%
Pedro Miguel Quinteiro Marques de Carvalho	2,170,679	6.91%
Luís Paulo Cardoso Salvado	2,079,592	6.62%
João Nuno da Silva Bento	1,899,799	6.05%
Rogério dos Santos Carapuça	1,884,787	6.00%
Álvaro José da Silva Ferreira	1,370,969	4.37%
Nuno Carlos Dias dos Santos Fórneas	122,757	0.39%
Paulo Jorge de Barros Pires Trigo	50,000	0.16%
Manuel Alves Monteiro	9,000	0.03%
Luís Mira Amaral	6,305	0.02%
João Luís Correia Duque	500	0.00%
Total	12,109,335	38.56%

Shareholdings and Qualified Holdings (pursuant to Article 448/4 of the Company Code and Article 16 of the Securities Code - 'CVM') ¹

	#	#	%
Shareholders	Shares partial	Shares	Capital and voting rights
Partbleu, Sociedade Gestora de Participações Sociais, SA		3,180,444	10.13%
ES TECH VENTURES, SGPS, SA Espírito Santo Fundo de Pensões, SA Members of the Corporate Boards	1,792,144 1,050,000 60
Grupo Banco Espírito Santo, SA (pursuant to Article 20/1 of CVM)		2,842,204	9.05%
José Afonso Oom Ferreira de Sousa		2,514,947	8.01%
Pedro Miguel Quinteiro Marques de Carvalho		2,170,679	6.91%
Luís Paulo Cardoso Salvado		2,079,592	6.62%
João Nuno da Silva Bento		1,899,799	6.05%
Rogério dos Santos Carapuça		1,884,787	6.00%
Fernando Fonseca Santos		1,575,020	5.02%
Fundo Santander Acções Portugal Fundo Santander PPA Fundo Santander Santander Asset Management - Soc. Gestora de Fundos de Investimento Mobiliário,	1,413,967 138 786 138,786
SA (pursuant to Article 20/1 of CVM)		1,552,753	4.94%
Álvaro José da Silva Ferreira		1,370,969	4.37%
Caixagest Acções Portugal Caixagest PPA	209,382 467,332
Caixagest — Técnicas de Gestão de Fundos, SA (pursuant to Article 20/1 of CVM)		676,714	2.16%
IBIM2 Ltd		648,486	2.07%
Total		22,396,394	71.32%

1 Shareholding of each Shareholder corresponds to the last position disclosed to the Company before 30 June 2012.

30 June 2012 Annex II - Management Report

Management Transactions

List of Management Transactions (pursuant to Article 14/6 and 14/7 of the Portuguese Securities Commission Regulation nº 5/2008)

Director					#	€
	Transaction	Date	Time	Location	Shares	Share price
Álvaro José da Silva Ferreira	Acquisition	16-02-2012	10:08:04	Euronext Lisbon	20,000	2.17
Nuno Carlos Dias dos Santos Fórneas	Acquisition	02-04-2012	-	Over-the-Counter	15,405	2.79
Nuno Carlos Dias dos Santos Fórneas	Acquisition	02-04-2012	-	Over-the-Counter	4,028	2.32
Luís Paulo Cardoso Salvado	Acquisition	11-05-2012	16:29:08	Euronext Lisbon	12,500	2.15
Luís Paulo Cardoso Salvado	Acquisition	14-05-2012	15:27:15	Euronext Lisbon	14,045	2.13
Luís Paulo Cardoso Salvado	Acquisition	15-05-2012	09:50:15	Euronext Lisbon	35,000	2.16
Álvaro José da Silva Ferreira	Acquisition	11-05-2012	16:29:08	Euronext Lisbon	12,500	2.15
Álvaro José da Silva Ferreira	Acquisition	14-05-2012	15:27:15	Euronext Lisbon	14,046	2.13
Álvaro José da Silva Ferreira	Acquisition	15-05-2012	09:50:15	Euronext Lisbon	35,000	2.16
Álvaro José da Silva Ferreira	Acquisition	22-06-2012	15:52:34	Euronext Lisbon	100,000	1.91
Total					262,524

The above mentioned directors, as a result of such transactions, hold the following shareholdings in the Company's share capital:

	#	%
Director	Shares	Capital and voting rights
Luís Paulo Cardoso Salvado	2,079,592	6.62%
Álvaro José da Silva Ferreira	1,370,969	4.37%
Nuno Carlos Dias dos Santos Fórneas	122,757	0.39%

Novabase SGPS, S.A. Public Company - Euronext Code: NBA.AM Head Office: Av. D. João II, Lote 1.03.2.3 Parque das Nações 1998-031 Lisboa Share Capital: 15,700,697.00 Euros Corporate Tax Payer nº 502.280.182

30 June 2012 Annex III - Management Report

Own Shares Transactions

Information of transactions on own shares (pursuant to Article 66/5 d) of the Company Code)

			#	€
Transaction	Date	Location	Shares	Share price
Transfer	02-04-2012	Over-the-Counter	26,018	2.79
Transfer	02-04-2012	Over-the-Counter	24,539	2.79
Transfer	02-04-2012	Over-the-Counter	24,170	2.79
Transfer	02-04-2012	Over-the-Counter	15,405	2.79
Transfer	02-04-2012	Over-the-Counter	4,348	3.81
Transfer	02-04-2012	Over-the-Counter	4,348	3.81
Transfer	02-04-2012	Over-the-Counter	348	3.81
Transfer	02-04-2012	Over-the-Counter	5,493	3.81
Transfer	02-04-2012	Over-the-Counter	1,831	3.81
Transfer	02-04-2012	Over-the-Counter	24,826	3.68
Transfer	02-04-2012	Over-the-Counter	12,413	3.68
Transfer	02-04-2012	Over-the-Counter	12,413	3.68
Transfer	02-04-2012	Over-the-Counter	12,413	3.68
Transfer	02-04-2012	Over-the-Counter	6,804	2.32
Transfer	02-04-2012	Over-the-Counter	6,417	2.32
Transfer	02-04-2012	Over-the-Counter	6,321	2.32
Transfer	02-04-2012	Over-the-Counter	4,028	2.32
Transfer	02-04-2012	Over-the-Counter	1,137	2.32
Transfer	02-04-2012	Over-the-Counter	1,137	2.32
Transfer	02-04-2012	Over-the-Counter	91	2.32
Transfer	02-04-2012	Over-the-Counter	1,436	2.32
Transfer	02-04-2012	Over-the-Counter	478	2.32
Transfer	02-04-2012	Over-the-Counter	6,493	2.32
Transfer	02-04-2012	Over-the-Counter	3,246	2.32
Transfer	02-04-2012	Over-the-Counter	3,246	2.32
Transfer	02-04-2012	Over-the-Counter	3,246	2.32
Transfer	02-04-2012	Over-the-Counter	3,606	2.32
Transfer	02-04-2012	Over-the-Counter	3,005	2.32
Transfer	02-04-2012	Over-the-Counter	3,606	2.32
Transfer	02-04-2012	Over-the-Counter	10,852	2.32
Transfer	25-05-2012	Over-the-Counter	594	2.07
Transfer	25-05-2012	Over-the-Counter	2,971	2.07
Transfer	25-05-2012	Over-the-Counter	155	2.07
Transfer	25-05-2012	Over-the-Counter	777	2.07
		Total	238,211

At 31 December 2011, Novabase S.G.P.S. held 980,527 own shares, representing 3.12% of its share capital.

During 1st half 2012, the company transferred 238,211 own shares at the average price of 2.95 euros.

Own shares transfers were used in the settlement of acquisitions to non-controlling interests occurred in 2008 and in 2010 and as bonuses to employees.

At 30 June 2012, Novabase S.G.P.S. held 742,316 own shares, representing 2.36% of its share capital.

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Condensed Consolidated Accounts 1st half 2012

NOVABASE S.G.P.S., S.A.

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INDEX

I.	2012	CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period of 6 months ended 30 June	5
		● Condensed Consolidated Interim Statement of Financial Position as at 30 June 2012	6
		● Condensed Consolidated Interim Statement of Comprehensive Income for the period of 6 months ended 30 June 2012	7
		● Condensed Consolidated Interim Statement of Changes in Equity for the period of 6 months ended 30 June 2012	8
		● Condensed Consolidated Interim Statement of Cash Flows for the period of 6 months ended 30 June 2012	9
	●	Selected Notes to the Condensed Consolidated Interim Financial Statements for the period of 6 months ended 30 June 2012	10
		Note 1. General information	10
		Note 2. Significant accounting policies	10
		Note 3. Critical accounting estimates and judgements	11
		Note 4. Seasonality	11
		Note 5. Segment information	11
	Note 6	Note 6. Business Business combinations	11
		Note 7. Property, plant and equipment and intagible assets	12
		Note 8. Deferred income tax assets and liabilities	12
		Note 9. Trade and other receivables	13
		Note 10. Cash and cash equivalents	14
		Note 11. Reserves and retained earnings	14
		Note 12. Non-controlling interests	14
		Note 13. Borrowings	14
		Note 14. Provisions	15
		Note 15 Note 15. Trade and other payables Trade and other	16
		Note 16. Other gains/(losses) - net	16
		Note 17. Income tax expense	16
		Note 18. Earnings per share	17
		Note 19. Related-party transactions	17
		Note 20. Contingencies	17
		Note 21. Events after the reporting period	18
		Note 22. Note added for translation	18
II.		SECURITIES ISSUED BY THE COMPANY AND OTHER GROUP COMPANIES, HELD BY BOARD MEMBERS	19
	●	Detail of securities issued by the Company and other group companies, held by board members of Novabase S.G.P.S. and of
		other group companies	21

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I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period of 6 months ended 30 June 2012

Condensed Consolidated Interim Statement of Financial Position as at 30 June 2012

		(Amounts expressed in thousands of Euros)
	Note	30.06.12	31.12.11
Assets
Non-Current Assets
Property, plant and equipment	7	7,693	9,000
Intangible assets	7	30,335	31,127
Investments in associates		1,809	1,621
Available-for-sale financial assets		165	165
Deferred income tax assets	8	11,980	12,387
Other non-current assets		30	-
Total Non-Current Assets		52,012	54,300
Current Assets
Inventories		6,776	6,909
Trade and other receivables	9	80,127	92,830
Accrued income		19,902	16,414
Income tax receivable		2,633	3,211
Derivative financial instruments		178	245
Other current assets		8,042	5,236
Available-for-sale financial assets		9,953	-
Cash and cash equivalents Cash and cash Total Current Assets	10	26 105 , 153,716	27 157 , 152,002
Assets for discontinued operations		-	-
Total Assets		205,728	206,302
Equity
Share capital		15,701	15,701
Treasury shares		(371)	(490)
Sh i are premium		43 560 ,	43 560 ,
Reserves and retained earnings Profit for the period	11	33,679 4,514	31,206 2,651
Total Equity attributable to owners of the parent		97,083	92,628
Non-controlling interests	12	10,752	9,811
Total Equity		107,835	102,439
Liabilities
Non-Current Liabilities
Borrowings	13	9,627	12,028
Provisions	14	2,257	1,721
Deferred income tax liabilities	8	100	100
Other non-current liabilities		70	308
Total Non-Current Liabilities		12,054	14,157
Current Liabilities
Borrowings	13	5,010	5,279
Trade and other payables	15	57,999	60,935
Income tax payable		33	17
Derivative financial instruments		243	461
Deferred income and other current liabilities		22,209	22,669
Total Current Liabilities		85,494	89,361
Liabilities for discontinued operations		345	345
T t l Li biliti Total Liabilities		97 893 ,	103 863 103,863
Total Equity and Liabilities		205,728	206,302

THE ACOUNTANT THE BOARD OF DIRECTORS

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Condensed Consolidated Interim Statement of Comprehensive Income for the period of 6 months ended 30 June 2012

				(Amounts expressed in thousands of Euros)
		6 M *		3 M *
	Note	30.06.12	30.06.11	30.06.12	30.06.11
Sales	5	35,369	52,551	16,946	26,740
Services rendered	5	73,184	66,577	37,937	33,087
Cost of sales		(30,697)	(47,690)	(13,487)	(24,464)
External supplies and services		(28,572)	(24,898)	(16,859)	(13,496)
Employee benefit expense		(38,502)	(38,686)	(18,854)	(19,044)
Other gains/(losses) - net	16	(516)	344	(676)	524
Depreciation and amortisation		(2,870)	(2,910)	(1,419)	(1,501)
Operating Profit		7,396	5,288	3,588	1,846
Finance income		2,640	2,187	1,709	1,135
Finance costs		(2,888)	(2,494)	(1,829)	(1,511)
Share of (loss)/profit of associates		(142)	(34)	(46)	12
Profit Before Income Tax		7,006	4,947	3,422	1,482
Income tax expense	17	(1,578)	(1,087)	(757)	(324)
Profit for the period		5,428	3,860	2,665	1,158
Other comprehensive income for the period		-	-	-	-
Total comprehensive income for the period		5,428	3,860	2,665	1,158
Profit attributable to:
Owners of the parent		4,514	3,480	2,002	1,238
Non-controlling interests	12	914	380	663	(80)
		5,428	3,860	2,665	1,158
Total comprehensive income attributable to:
Owners of the parent		4,514	3,480	2,002	1,238
Non-controlling interests	12	914	380	663	(80)
		5,428	3,860	2,665	1,158
Earning p ser share
attributable to owners of the parent (Euros per share)
Basic earnings per share	18	0.15 Euros	0.11 Euros	0.07 Euros	0.04 Euros
Diluted earnings per share	18	0.15 Euros	0.11 Euros	0.07 Euros	0.04 Euros
6 M * - period of 6 months ended 3 M * - period of 3 months ended

THE ACOUNTANT THE BOARD OF DIRECTORS

Condensed Consolidated Interim Statement of Changes in Equity for the period of 6 months ended 30 June 2012

(Amounts expressed in thousands of Euros)

		Attributable to owners of the parent
	Note					Stock	Reserves	Non
		Share	Treasury	Share	Legal		options and retained-controlling		Total
		capital	shares	premium	reserves	reserves	earnings	interests	Equity
Balance at 1 January, 2011		15,701	(603)	43,560	2,365	1,076	30,675	5,724	98,498
Total comprehensive income for the period		-	-	-	-	-	3,480	380	3,860
Transactions with owners
Dividends	11	-	-	-	-	-	(3,955)	-	(3,955)
Legal reserve		-	-	-	140	-	(140)	-	-
Treasury shares movements		-	113	-	-	-	625	-	738
Share-based payments		-	-	-	-	166	-	-	166
Foreign currency translation reserve		-	-	-	-	-	4	4	8
Transactions with owners		-	113	-	140	166	(3,466)	4	(3,043)
Changes in ownership interests in subsidiaries that do not result in a loss of control
Transactions with non-controlling interests		-	-	-	-	-	(7)	-	(7)
Balance at 30 June, 2011		15,701	(490)	43,560	2,505	1,242	30,682	6,108	99,308
Balance at 1 January, 2012		15,701	(490)	43,560	2,505	1,407	29,945	9,811	102,439
Total comprehensive income for the period		-	-	-	-	-	4,514	914	5,428
Transactions with owners
Dividends	11	-	-	-	-	-	(920)	-	(920)
Legal reserve		-	-	-	537	-	(537)	-	-
Treasury shares movements		-	119	-	-	-	584	-	703
Share-based payments (a)		-	-	-	-	(1,459)	1,459	-	-
Share-based payments		-	-	-	-	133	-	-	133
Foreign currency translation reserve		-	-	-	-	-	25	27	52
Transactions with owners		-	119	-	537	(1,326)	611	27	(32)
Changes in ownership interests in subsidiaries that do not result in a loss of control
Transactions with non-controlling interests		-	-	-	-	-	-	-	-
Balance at 30 June, 2012		15,701	(371)	43,560	3,042	81	35,070	10,752	107,835

(a) Transfer of the balance of share options fully vested.

THE ACOUNTANT THE BOARD OF DIRECTORS

Condensed Consolidated Interim Statement of Cash Flows for the period of 6 months ended 30 June 2012

				(Amounts expressed in thousands of Euros)
		6 M *		3 M *
	Note	30 06 12 30.06.12	30 06 11 30.06.11	30 06 12 30.06.12	30 06 11 30.06.11
Cash flows from operating activities
Net Cash generated / (used) in operating activities		15,798	396	8,894	(1,625)
Cash flows from investing activities
Receipts:
Proceeds on disposal of subsidiaries and associates		-	3	-	3
Loan repayments received from associates		243	414	228	414
Proceeds on disposal of property, plant and equipment Interest received Interest received		1 408	- 393	1 204	- 180
		652	810	433	597
Payments: Acquisition of subsidiaries and associates		(460)	(338)	(460)	(264)
Loans granted to associates		(1,972)	(94)	(1,595)	-
Purchases of available-for-sale financial assets		(9,953)	-	(9,953)	-
Purchases of property, plant and equipment		(354)	(940)	(282)	(385)
Purchases of intangible assets		(233)	(1,290)	(182)	(1,207)
		(12,972)	(2,662)	(12,472)	(1,856)
Net Cash used in investing activities		(12,320)	(1,852)	(12,039)	(1,259)
Cash flows from financing activities
Receipts:
Proceeds from borrowings		-	2,393	-	2,081
		-	2,393	-	2,081
Payments:
Repayments of borrowings		(2,219)	(1,320)	(1,204)	(815)
Dividends paid Dividends	11	(920)	(3,955) (3,955)	(920)	(3,955)
Payment of finance lease liabilities		(837)	(886)	(419)	(483)
Interest paid		(553)	(430)	(260)	(181)
		(4,529)	(6,591)	(2,803)	(5,434)
Net Cash used in financing activities		(4,529)	(4,198)	(2,803)	(3,353)
Cash, cash equivalents and bank overdrafts at beginning of period		27,157	27,057	32,032	27,618
Net decrease in cash, q cash equivalents and bank overdratfs		(, ) 1 051	(, ) 5 654	(, ) 5 948	(, ) 6 237
Effect from exchange rate fluctuations on cash held		(1)	(29)	21	(7)
Cash, cash equivalents and bank overdrafts at end of period	10	26,105	21,374	26,105	21,374
6 M * - period of 6 months ended

3 M * - period of 3 months ended

THE ACOUNTANT THE BOARD OF DIRECTORS

Selected Notes to the Condensed Consolidated Interim Financial Statements for the period of 6 months ended 30 June 2012

1. General information

Novabase, Sociedade Gestora de Participações Sociais, SA (hereunder referred to as Novabase or Group), with its head office in Av. D. João II, Lote 1.03.2.3, Parque das Nações – 1998-031 Lisboa - Portugal, holds and manages financial holdings in other companies as an indirect way of doing business, being the Holding Company of Novabase Group.

Novabase is listed on the Euronext Lisbon.

These condensed consolidated interim financial statements were approved for issue by the Board of Directors on July 23, 2012. In the opinion of the Board of Directors these financial statements fairly present the Group operations, as well as its financial position, financial performance and cash flows.

2. Significant accounting policies

These condensed consolidated interim financial statements for the period of six months ended 30 June 2012 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2011, which have been prepared in accordance with IFRSs, as adopted by the European Union (EU).

These financial statements are presented in thousands of euros (EUR thousand).

These financial statements have not been audited.

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2011, as described in those financial statements.

Taxes on income in this interim period were accrued using the tax rate that would be applicable to expected total annual earnings for the year 2012.

3. Critical accounting estimates and judgements

The preparation of interim financial statements requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant estimates and judgments made are the same as those that applied to the consolidated financial statements for the year ended 31 December 2011.

4. Seasonality

The activity of Business Solutions and IMS is usually lower in 3rd quarter due to holiday period.

5. Segment information

	Business		Digital	Venture
	Solutions	IMS	TV	Capital	NOVABASE
At 30 June 2011
Total segment Sales and services rendered	74,582	52,340	29,414	1,266	157,602
Inter-segment Sales and services rendered	29,936	6,100	1,895	543	38,474
Sales and services rendered	44,646	46,240	27,519	723	119,128
Depreciation and amortisation	(1,791)	(677)	(348)	(94)	(2,910)
Operating profit/(loss)	3,564	1,668	753	(697)	5,288
Finance costs – net	57	(271)	(75)	(18)	(307)
Share of (loss)/profit of associates	(13)	-	-	(21)	(34)
Income tax expense	(450)	(1,577)	873	67	(1,087)
Profit/(Loss) from operations	3,158	(180)	1,551	(669)	3,860
Other information:
(Provisions) / Provisions reversal	(53)	520	147	-	614
At 30 June 2012
Total segment Sales and services rendered	83,525	43,226	21,359	2,484	150,594
Inter-segment Sales and services rendered	33,228	6,734	1,542	537	42,041
Sales and services rendered	50,297	36,492	19,817	1,947	108,553
Depreciation and amortisation	(1,797)	(675)	(313)	(85)	(2,870)
Operating profit/(loss)	5,085	2,173	(443)	581	7,396
Finance costs – net	(70)	(204)	(32)	58	(248)
Share of (loss)/profit of associates	(120)	-	-	(22)	(142)
Income tax expense	(894)	(663)	91	(112)	(1,578)
Profit/(Loss) from operations	4,001	1,306	(384)	505	5,428
Other information:
(Provisions) / Provisions reversal	31	(199)	(533)	-	(701)

6. Business combinations

In the end of the 1st half of 2012, the Group acquired 100% of the share capital of Binómio, a company specialising in financial assets management solutions, for an amount indexed to its future performance. This investment is part of Novabase's growth strategy for the Financial Services sector. Binómio holds a paramount position in Portugal with insurance and pension management companies. It also has customers in the PALOPs (African Portuguese Speaking Countries), namely in Angola. This company was included in consolidation by full method, and affecting Business Solutions segment.

The total consideration of EUR 206 thousand corresponds to a contingent consideration, with an initial advanced payment of EUR 136 thousand, paid in cash, and an amount of EUR 70 thousand to be paid until 2017, depending on future goals to be achieved by the subsidiary in terms of Free Cash Flow.

The goodwill arising from this acquisition, of EUR 249 thousand, is attributable mainly to access to the highly skilled workforce of Binómio in that market.

The consideration paid for Binómio, and the amounts of assets acquired and liabilities assumed recognised at the acquisition date, are detailed as follows:

	Jun-12
Consideration
Advanced payment in cash	136
Remaining contingent consideration	70
Total consideration	206
	Fair value
Recognised amounts of identifiable assets acquired and liabilities assumed
Property, plant and equipment and Intangible assets	30
Deferred income tax assets	15
Trade and other receivables	84
Accrued income	7
Cash and cash equivalents	6
Trade and other payables	(153)
Deferred income	(32)
Total identifiable net assets	(43)
Goodwill	249
	206

7. Property, plant and equipment and intagible assets

During the periods ended at 30 June 2012 and 30 June 2011, the movements in the net book value of property, plant and equipment and intagible assets, were as follows:

	Property, plant Intangible
	and equipment	assets
Net book value at 1 January 2011	9,836	31,229
Acquisitions / increases	1,957	1,382
Write off's / disposals	(71)	-
Change in consolidation universe	7	-
Exchange differences	(15)	-
Depreciation and amortisation	(1,691)	(1,219)
Net book value at 30 June 2011	10,023	31,392
Net book value at 1 January 2012	9,000	31,127
Acquisitions / increases	540	481
Write off's / disposals	(283)	-
Change in consolidation universe	27	3
Exchange differences	3	-
Depreciation and amortisation	(1,594)	(1,276)
Net book value at 30 June 2012	7,693	30,335

8. Deferred income tax assets and liabilities

The movement in the deferred income tax assets was as follows:

	30.06.12	31.12.11
Balance at 1 January	12,387	10,396
Change in consolidation universe	15	19
Reclassifications	-	(30)
Exchange differences	(6)	2
Discontinued operations	-	592
Profit or loss charge	(416)	1,408
Balance at the end of the period	11,980	12,387

The movement in the deferred income tax liabilities was as follows:

	30.06.12	31.12.11
Balance at 1 January Profit or loss charge	100 -	909 (809)
Balance at the end of the period	100	100

The movement in deferred tax assets during the period, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

	Tax	Tax Provisions /
	Losses	Incentives	Adjustments	Total
Balance at 1 January 2011	2,372	6,350	1,674	10,396
Profit or loss charge	(51)	1,340	119	1,408
Reclassifications	(30)	-	-	(30)
Change in consolidation universe	19	-	-	19
Exchange differences	2	-	-	2
Discontinued operations	592	-	-	592
Balance at 31 December 2011	2,904	7,690	1,793	12,387
Profit or loss charge	(546)	125	5	(416)
Change in consolidation universe	15	-	-	15
Exchange differences	(6)	-	-	(6)
Balance at 30 June 2012	2,367	7,815	1,798	11,980

9. Trade and other receivables

	30.06.12	31.12.11
Trade receivables	70,970	85,608
Allowance for impairment of trade receivables	(3,038)	(2,854)
	67,932	82,754
Prepayments to suppliers	689	546
Employees	272	133
Value added tax	327	650
Receivables from related parties (note 19)	2,356	597
Financial investments disposal	149	146
Receivables from financed projects	3,004	3,040
Capital subscribers of FCR NB Capital Inovação e Internacionalização	3,850	3,850
Other receivables	5,153	4,775
Allowance for impairment of other receivables	(3,605)	(3,661)
	12,195	10,076
	80,127	92,830

Movements in allowances for impairment of trade and other receivables are analysed as follows:

	Trade receivables		Other receivables		Total
	30.06.12	31.12.11	30.06.12	31.12.11	30.06.12	31.12.11
Balance at 1 January	2,854	2,012	3,661	3,442	6,515	5,454
Change in consolidation universe	7	62	-	-	7	62
Impairment	256	988	-	218	256	1,206
Impairment reversal	(4)	(208)	(55)	-	(59)	(208)
Recovery of bad debts	-	-	-	1	-	1
Exchange differences	-	-	(1)	-	(1)	-
Write off's	(75)	-	-	-	(75)	-
	3,038	2,854	3,605	3,661	6,643	6,515

10. Cash and cash equivalents

With reference to the consolidated statement of cash flows, the detail and description of Cash, cash equivalents and bank overdrafts is analysed as follows:

	30.06.12	31.12.11
- Cash	39	24
- Short term bank deposits	26,066	27,133
Cash and cash equivalents	26,105	27,157
- Overdrafts	-	-
	26,105	27,157

11. Reserves and retained earnings

In the annual General Meeting of Shareholders held on 3 May 2012, it was approved the payment to shareholders of an amount of EUR 942 thousand, corresponding to 0.03 Euros per share. The payment occurred in June, 2012.

	30.06.12	30.06.11
Payment to shareholders Remuneration of the treasury shares held by the Company	920 22	3,955 127
	942	4,082

12. Non-controlling interests

	30.06.12	31.12.11
Balance at 1 January	9,811	5,724
(*) Change in consolidation universe	-	5,500
Dividends paid by Celfocus to non-controlling interests	-	(1,800)
Foreign currency translation differences for foreign operations	27	98
Profit attributable to non-controlling interests	914	289
Balance at the end of the period	10,752	9,811

(*) In 2011, FCR NB Capital Inovação e Internacionalização was incorporated.

13. Borrowings

	30.06.12	31.12.11
Non-current
Bank borrowings	8,425	10,500
Finance lease liabilities	1,202	1,528
	9,627	12,028
Current
Bank borrowings	3,909	4,053
Finance lease liabilities	1,101	1,226
	5,010	5,279
Total borrowings	14,637	17,307

The periods in which the current bank borrowings will be paid are as follows:

	30.06.12	31.12.11
6 months or less	1,834	2,269
6 to 12 months	2,075	1,784
	3,909	4,053

The maturity of non-current bank borrowings is as follows:

	30.06.12	31.12.11
Between 1 and 2 years Between 2 and 5 years Over 5 years	3,150 5,275 -	3,650 6,775 75
	8,425	10,500
The effective interest rates at the reporting date were as follows:
	30.06.12	31.12.11
Bank borrowings Bank overdrafts	5.320% N/A	5.359% N/A
Gross finance lease liabilities – minimum lease payments:
	30.06.12	31.12.11
No later than 1 year	1,471	1,672
Between 1 and 5 years	1,557	2,004
	3,028	3,676
Future finance charges on finance leases	(725)	(922)
Present value of finance lease liabilities	2,303	2,754
The present value of finance lease liabilities is analysed as follows:
	30.06.12	31.12.11
No later than 1 year	1,101	1,226
Between 1 and 5 years	1,202	1,528
	2,303	2,754

14. Provisions

Movements in provisions are analysed as follows:

		Legal	Other Risks
	Warranties	Claims	and Charges	Total
Balance at 1 January 2011	380	484	769	1,633
Additional provisions	198	-	518	716
Reversals	(177)	(244)	(727)	(1,148)
Reclassifications	500	-	-	500
Change in consolidation universe	-	-	20	20
Balance at 31 December 2011	901	240	580	1,721
Additional provisions	111	-	860	971
Reversals	(160)	-	(273)	(433)
Exchange differences	-	-	(2)	(2)
Balance at 30 June 2012	852	240	1,165	2,257

15. Trade and other payables

	30.06.12	31.12.11
Trade payables	23,191	24,939
Remunerations, vacations and vacation and Christmas subsidies	11,843	8,147
Restructuring costs not yet paid	441	546
Bonus	6,410	7,442
Ongoing projects	5,178	3,727
Value added tax	4,103	7,263
Social security contributions	1,137	2,026
Income tax withholding	1,030	1,590
Employees	121	288
Prepayments from trade receivables	134	-
Acquisition of financial interests to related parties (note 19)	205	714
Acquisition of financial interest in Evolvespace Solutions	151	86
Other accrued expenses	3,984	4,027
Other payables	71	140
	57,999	60,935

16. Other gains/(losses) - net

	30.06.12	30.06.11
Impairment and impairment reversal of trade and other receivables	(197)	(146)
Impairment and impairment reversal of inventories	34	383
Warranties provision	49	25
Provisions for other risks and charges	(587)	352
Operating subsidies	-	52
Other operating income and expense	185	(322)
	(516)	344

17. Income tax expense

The tax on the Group's profit before tax differs from the theoretical amount that would arise using the weighted average rate applicable to profits of the consolidated entities as follows:

	30.06.12	30.06.11
Profit before income tax	7,006	4,947
Income tax expense at nominal rate (25%)	1,752	1,237
Tax benefit on the net creation of employment for young and long term unemployed people	(234)	(255)
Provisions and amortisations not considered for tax purposes	104	104
Associates' results reported net of tax	35	8
Autonomous taxation	323	(220)
Losses in companies where no deferred tax is recognised	(154)	(78)
Expenses not deductible for tax purposes	(11)	53
Differential tax rate on companies located abroad	62	(48)
Research & Development tax benefit	(469)	(4)
Municipal surcharge and State surcharge	99	80
Impairment of Special Payment on Account, tax losses and withholding taxes	70	208
Other	1	2
Income tax expense	1,578	1,087

18. Earnings per share

	30.06.12	30.06.11
Weighted average number of ordinary shares in issue	30,539,223	30,331,298
Stock options adjustment	-	-
Adjusted weighted average number of ordinary shares in issue	30,539,223	30,331,298
Profit attributable to owners of the parent	4,514	3,480
Basic earnings per share (Euros per share)	0.15 Euros	0.11 Euros
Diluted earnings per share (Euros per share)	0.15 Euros	0.11 Euros

19. Related-party transactions

For reporting purposes, related-party consider subsidiaries, associates, shareholders with management influence and key elements in the Group management.

i) Key management compensation

30.06.12	30.06.11
2,724	2,335 166
2,857	2,501
30.06.12	31.12.11
-	7
-	7
	133

iii) Balances arising from acquisitions of financial interests to related parties (former shareholders)

	Non-current		Current (note 15)		Total
	30.06.12	31.12.11	30.06.12	31.12.11	30.06.12	31.12.11
Novabase Consulting SGPS	-	-	-	306	-	306
Novabase A.C.D.	-	78	40	109	40	187
SAF	-	32	32	33	32	65
Novabase International Solutions B.V.	-	133	133	266	133	399
	-	243	205	714	205	957

iv) Other balances with related parties

		30.06.12	31.12.11
	Loan to Novabase Atlântico, SI, S.A. (associate)	449	550
	Loan to Powergrid, Lda (associate)	550	-
(*)	Loan to DTV Research, Lda (associate)	1,310	-
	Loans to other shareholders	47	47
	Receivables from related parties (note 9)	2,356	597

(*) New investment from FCR NB Capital Inovação e Internacionalização.

20. Contingencies

Given the disclosed in the annual financial statements for the year 2011, the significant changes in the judicial processes are the following:

• It was cancelled the procedures brought forward by the Instituto de Gestão Financeira da Segurança Social to Novabase E.A. regarding the alleged absence of payment of social security contributions in the years 2004, 2005, 2006 and 2007, in the amount of EUR 42 thousand and EUR 20 thousand.

• Court procedure brought against Novabase S.G.P.S. and Novabase Capital, under which the plaintiff claims the payment of EUR 905 thousand, plus interests accrued until full payment, as well as the payment of the damages it suffered in a value yet to be established within the procedure. Final ruling has been issued by the Court which was totally in favour of the defendants. The Plaintiff has filed an appeal on the decision. The Appeals Court decided in favour of Novabase, wherein the plaintiff filed an appeal to the Supreme Court of Justice. The procedure awaits decision on this appeal.

• It was cancelled the procedure brought forward by the Instituto de Gestão Financeira da Segurança Social to Novabase Business Solutions S.A. regarding the alleged absence of payment of social security contributions in the years 2004, 2005, 2006 and 2007, in the amount of EUR 131 thousand.

• The claims brought forward by the Instituto de Gestão Financeira da Segurança Social to NBO regarding the alleged absence of payment of social security contributions (in the amount of EUR 85 thousand and EUR 438 thousand) were cancelled.
• It was cancelled the procedure brought forward by the Instituto de Gestão Financeira da Segurança Social to Octal regarding to alleged absence of payment of social security contributions in the years 2006 to 2010, in the amount of EUR 20 thousand.
• The judge issued final ruling in the procedure brought forward by a shareholder of a Manchete where Fundo Capital Risco NB Capital (which is managed by the subsidiary Novabase Capital) is co-defendant in which the Plaintiff was claiming violation of the Shareholders Agreement and requested (i) payment of a compensation in the amount of EUR 446 thousand in lieu of remunerations he would have received for the remaining period that the Shareholders Agreement would remain in force; (ii) an amount equal to 8.5% of company results before tax related to the years 2010 and further until final decision on the proceeding is issued; (iii) that the defendants were ordered to buy the plaintiff's shares for the price of EUR 750 thousand. The judge issued final ruling in favour of the Defendants, considering that the Plaintiff had not observed certain essential contractual formalities before bringing the issue to Court.
• IMS has filed insolvency procedure against Alfasom, claiming credits in the amount of approximately EUR 88 thousand. Creditor's Assembly will take place on September 10.

21. Events after the reporting period

Novabase reorganizes its Digital TV business

With the aim of maximizing synergies between all of its businesses, Novabase has decided to reorganize its Digital TV operations. Solutions geared toward TV operators will therefore be included in the Infrastructures & Managed Services (IMS) business. These businesses have similar operations and maturity levels and therefore their integration will lead to an increase in overall efficiency. The System-in-Package (SIP) solutions, however, will be transferred to the Venture Capital business. These offers, strongly supported by R&D and intellectual property investments, will find the appropriate platform for their future development in Novabase Capital, including creation of strategic partnerships and international distribution channels. These changes will come into force at the start of the second half of 2012. Accordingly, Novabase will disclose its results for Business Solutions, Infrastructures & Managed Services and Venture Capital as of the third quarter.

22. Note added for translation

These financial statements are a translation of financial statements originally issued in Portuguese. In the event of discrepancies, the Portuguese language version prevails.

II. SECURITIES ISSUED BY THE COMPANY AND OTHER GROUP COMPANIES, HELD BY BOARD MEMBERS

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DETAIL ON SECURITIES ISSUED BY THE COMPANY AND OTHER GROUP COMPANIES, HELD BY BOARD MEMBERS OF NOVABASE S.G.P.S. AND OF OTHER GROUP COMPANIES

	Share Capital	Total Number of Shares	Number of shares held by Board Members at 31.12.11	Transactions	Number of shares held by Board Members at 30.06.12	% of shares held by Board Members at 30.06.12
Novabase S.G.P.S., S.A.	15,700,697 €	31,401,394	11,796,811	312,524	12,109,335	38.6%
José Afonso Oom Ferreira de Sousa			2,514,947	0	2,514,947	8.0%
Pedro Miguel Quinteiro Marques de Carvalho			2,170,679	0	2,170,679	6.9%
Luís Paulo Cardoso Salvado			2,018,047	61,545	2,079,592	6.6%
João Nuno da Silva Bento			1,899,799	0	1,899,799	6.1%
Rogério dos Santos Carapuça			1,884,787	0	1,884,787	6.0%
Álvaro José da Silva Ferreira			1,189,423	181,546	1,370,969	4.4%
Nuno Carlos dos Santos Fórneas			103,324	19,433	122,757	0.4%
Paulo Jorge de Barros Pires Trigo			0	50,000	50,000	0.2%
Manuel Fernando Macedo Alves Monteiro			9,000	0	9,000	0.0%
Luís Fernando de Mira Amaral			6,305	0	6,305	0.0%
João Luís Correia Duque			500	0	500	0.0%
NBASIT - Sist. Inf. e Telecomunicações, S.A.	47,500,000 AOA	100,000	800	0	800	0.8%
Álvaro José da Silva Ferreira			400	0	400	0.4%
Francisco Paulo Figueiredo Morais Antunes			200	0	200	0.2%
Luís Paulo Cardoso Salvado			200	0	200	0.2%
CelFocus, S.A.	100,000 €	100,000	2	0	2	0.0%
Paulo Jorge de Barros Pires Trigo			1	0	1	0.0%
José Afonso Oom Ferreira de Sousa			1	0	1	0.0%
COLLAB – Sol. I. Com. e Colab., S.A.	61,333 €	61,333	3,750	0	3,750	6.1%
Pedro Cabrita Quintas			3,750	0	3,750	6.1%
Forward, S.A.	250,000 €	250,000	100,000	0	100,000	40.0%
Miguel Leite Fragoso			50,000	0	50,000	20.0%
Nuno Baião dos Santos			50,000	0	50,000	20.0%
Manchete, S.A.	150,000 €	150,000	37,501	0	37,501	25.0%
Mª de Fátima da Silva Rebelo			37,501	0	37,501	25.0%
FeedZai, S.A.	90,000 €	9,000,000	5,359,615	190,385	5,550,000	61.7%
Nuno Jorge da Cruz Sebastião			1,700,000	0	1,700,000	18.9%
Paulo Jorge Pimenta Marques			1,700,000	0	1,700,000	18.9%
Pedro Gustavo Santos Rodrigues Bizarro			1,700,000	0	1,700,000	18.9%
Pedro Miguel Quinteiro Marques de Carvalho			259,615	190,385	450,000	5.0%
PowerGrid, Lda	450,000 €	450,000	50,000	0	50,000	11.1%
Nelson David Ferreira Teodoro			50,000	0	50,000	11.1%

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STATEMENT OF COMPLIANCE

NOVABASE S.G.P.S., S.A.

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Statement of the Board of Directors

(Free translation from the original version in Portuguese)

Under the terms of sub-paragraph c) paragraph 1 of article 246 of the Portuguese Securities Code, the members of the Board of Directors of Novabase S.G.P.S., S.A., below identified declare that to the extent of their knowledge:

(i) the information contained in the condensed consolidated interim financial statements and all other accounting documentation required by law or regulation, regarding the period of six months ended 30 June 2012, was prepared in compliance with the applicable accounting standards and gives a true and fair view of the assets and liabilities, financial position and results of Novabase S.G.P.S., S.A. and the companies included in the consolidation perimeter; and

(ii) the interim management report faithfully states the evolution of the businesses, of the performance and of the position of Novabase S.G.P.S., S.A. and the companies included in the consolidation perimeter, containing namely an accurate description of the main risks and uncertainties which they face.

Lisbon, July 23, 2012

Rogério dos Santos Carapuça (Non-Executive Member, Chairman of the Board of Directors)

Luís Paulo Cardoso Salvado (Executive Member, Chairman of the Executive Committee - CEO)

José Afonso Oom Ferreira de Sousa (Non-Executive Member)

Pedro Miguel Quinteiro Marques de Carvalho (Non-Executive Member)

João Nuno da Silva Bento (Executive Member, Member of the Executive Committee)

Álvaro José da Silva Ferreira (Executive Member, Member of the Executive Committee)

Nuno Carlos Dias dos Santos Fórneas (Executive Member, Member of the Executive Committee)

Francisco Paulo Figueiredo Morais Antunes (Executive Member, Member of the Executive Committee - CFO)

Paulo Jorge de Barros Pires Trigo (Executive Member, Member of the Executive Committee)

Joaquim Manuel Jordão Sérvulo Rodrigues (Non-Executive Member)

Luís Fernando de Mira Amaral (Non-Executive Member, Independent, Chairman of the Audit Committee)

(Non-Executive Member, Independent, Member of the Audit Committee) Manuel Fernando Macedo Alves Monteiro

João Luís Correia Duque (Non-Executive Member, Independent, Member of the Audit Committee) (Page left intentionally blank) À