NETGEM

Earnings Release • Apr 19, 2012

First quarter 2012 Revenue Dividend to be increased

Neuilly-sur-Seine, April 19th , 2012 – Netgem, provider of technologies and solutions for the connected home, today announced its revenue for the first quarter of 2012.

Revenue and activity

Netgem generated consolidated revenue of €18.4 million for the quarter ending March 31st 2012, of which 49% from international sales. International sales bore the whole impact of the shortage of hard disk drives that resulted from Thailand's flooding. The availability and pricing of hard disk drives are now coming back to normal.

IFRS data in €M	Q1 2012	Q1 2011	Change
Revenue	18.4	25.7	-28%
- France	9.4	13.7	-31%
- International	9.0	12.0	-25%

Financial situation and results

Netgem continues to develop as a profitable business benefits from a high investment capacity and maintains it objective to double international revenue before the end of 2014.

Since the start of its share-buyback program at the end of 2011, the Group bought 1,149,180 of its own shares, equivalent to 3.1% of its capital. Early 2012, 491,000 of those shares were used for the vesting of free shares granted in 2010.

Key events and Dividend Policy

The Group consolidated perimeter did not change during the quarter. Based on the Group's results in 2011 and its financial situation, the Board will propose to raise the dividend per share to €0.13 (+ 8 % compared to 2010's dividend) at the General Shareholders Meeting, scheduled on June 6th, 2012.

Financial Calendar (subject to possible changes)

• General Shareholders Meeting: June 6th, 2012
• H1 results and revenue: Week of July 23rd , 2012

About Netgem: Netgem provides Connected Home Entertainment Solutions to Multiservice Operators to help them strengthen their endcustomer relationship and drive revenue growth. Based upon Netgem's hardware and software technologies, operators are able to develop innovative convergent services and a unique broadcast TV experience, enriched by the power of Internet. Netgem is present in more than twelve countries around the world with an install base of more than 4 million. Netgem is listed on Compartment C of NYSE Euronext Paris. ISIN : FR0004154060, Reuters : ETGM.PA, Bloomberg : NTG FP

Site Internet: www.netgem.com Twitter http://www.twitter.com/netgem

Press Contact: Julie Dardelet: jda@netgem.com