LACROIX Group — Earnings Release 2012

Jul 4, 2012

PRESS RELEASE

Half year results(1): activity increase (ISIN FR 0000066607)

(in millions of Euros)	31.03.12	31.03.11	Variation	30.09.11
Turnover	161,5	149,7	+7.9%	303,5
Current operating income	4,5	7,5	-40.0%	12,0
Operating income	3,9	7,5	-48.0%	12,1
Net profit for the Group	2,2	5,3	-58.5%	8,4

The following were the main events in the 1st half of this year:

1° In Electronics (54% of TO), the increase in activity (+7.8%) was accompanied by a reduction in profit mainly due to a strongly degraded environment in Germany and the announced impact of the T.E.S design and engineering office's takeover in June 2011. Despite the fact that the second half of the year is expected to be very difficult and that there will be increased human and capacity investments in anticipation of next year's prospects the business line will generate a positive free cash flow.

2) In Telemetry (9% of TO), the stronger than expected activity in France offset a slight decline in export sales. The business line's profitability was again very satisfactory and this trend should continue in the second half of the year.

3) In Signalling (37% of TO), the strong increase in turnover (+9.3%) was achieved despite a very difficult context in France and especially Spain. Charges related to the shortfall in signing some major contracts and difficulties in services have greatly impacted the results. However, they should improve significantly in the second half of the year.

Despite a highly disturbed environment, each business line will still generate positive results for the year thus preserving the Group's strong ability to invest in its development.

(1) The statutory auditors have performed a limited review of the accounts.

Contact: Yves KROTOFF Tel: 02 40 92 32 00 – y.krotoff@lacroix.fr

The half year financial report is available on our website www.lacroix-sa.fr