SES-imagotag — Earnings Release 2008

Feb 26, 2009

FY 2008 results Substantial increase in profits with a profitability level significantly above the targets

• Turnover : 54 035 K€, up 38.2%
• Operating profit : 18 615 K€ (at 34.5 % of turnover), up 32.8%
• Net profit : 11 823 K€, up 23.4%
• Early competitive wins in 2009

K€ (French GAAP)	2008	2007	% change
Net Sales	54 035	39 099	+38.2 %
Operating profit	18 615	14 019	+32.8%
Operating margin	34.5%	35.9%
Net profit	11 823	9 582	+23.4%
Net margin	21.9%	24.5%

Turnover

As of December 31, 2008, net sales amounted to 54 035 K€, up 38.2% compared to 2007. Recurring revenue (restocking, maintenance…) account for some 25.3% of turnover, a level similar to that of 2007 when neutralizing the impact of the Auchan roll-out.

In France, at 38 550 K€ revenues are up 34.9% vs.2007; 418 new stores have been installed against 329 last year (+27.1%). Export sales amount to 15 485 K€, a growth of 47.3%.

In total, 646 new stores have been installed (vs.492 in 2007, i.e. +31.3%) in 73 different store networks across 18 countries; this allows the Company to further strengthen, even more, its worldwide industry leadership.

Major increase in profitability above the targets

At 18 615 K€, the 2008 full year operating profit is up 32.8% compared to the previous year (against +27.2% in H1 2008).

With an operating margin of 34.5% of sales, SES significantly exceeds Company guidelines for fiscal year (at least 30%).

For H2, the operating margin is reaching 35.3 % of sales V.S. 33.5 % for H1. Overall this high level of profitability reflects a volume effect allowing a better amortization of the company fixed costs combined with an optimisation of purchasing conditions.

A tight control of SG&A has continued in spite of proactive organizational enhancement conducted in H1 2008 (headcounts, warehouse…).

Net profit amounts to 11 823 K€; this increase of 23.4% vs. FY 2007, includes an exchange rate loss of 650 K€.

Balance sheet

As of December 31 2008 Store Electronic Systems has no financial debt and its cash position amounted to 13.2 M€ (vs. 11.0 M€ in 2007), 2.0M€ of which are the proceeds of a profitable sale of the Company's headquarters.

Shareholding structure

As of February 13 2009, to the best of the company knowledge, the shareholding structure was the following:

• Amber Master Fund : 19.8 %
• Schroders : 14.1 % (9.9 % of voting rights)
• Catteau concert : 10.8 %
• Other : 55.3 %

2009 Outlook

The Company anticipates a growth in turnover between +25 and +30 %, with an operating margin above 30%.

Early 2009, Store Electronic Systems is reporting key competitive wins, such as:

• Win of a roll-out for the SES solution in a French group operating 120 hypermarkets and supermarkets. The first order is for 7 hypermarkets and 6 supermarkets to be installed before the end of June 2009.
• Win of a competitive bid to equip all the hypermarkets of Coop d'Alsace Group (the Coop d'Alsace Group is operating 62 hypermarkets and supermarkets and has recently signed a franchising agreement with E. Leclerc Group).
• Acceleration of the rate of equipment for a major Italian food network with a systematic installation of the SES solution in all new and in remodelling stores.
• Installation of a pilot store in a network of 400 stores. Roll-out decision expected During 2009.

These new wins add-up to the retainers by independent store networks (Leclerc, Intermarché, Système U…), and combine with a growing success on the secondary target of DIY stores, both in France and abroad. The "leverage" of its installed customer base fuelled by the switch to the 4th ESL generation, should further allow the Company to exhibit substantial growth in 2009, with acceleration in subsequent years.

Q1 turnover for 2009 will be published on May 14, 2009.

About Store Electronic Systems

Store Electronic Systems is one of the world leaders in Electronic Shelf Labelling (ESL) Systems for both food and nonfood mass retailers.

This reliable, high value-added product can rely on a substantial market potential, presently in its deployment phase worldwide.

Store Electronic Systems is listed on the Compartment C of EuronextTM Paris. Mnémo: SESL

ISIN codes: FR0010282822 - Reuters: SESL.PA - Bloomberg: SESL.FP

www.ses-esl.com www.store-electronic-systems.com

YOUR CONTACTS

Michel Boyer François Berrubé EVP and Chief Financial Officer Marketing Manager Tél. : 01 34 34 61 66 Tél. : 01 34 34 61 73 michel.boyer@ses-esl.com francois.berrube@ses-esl.com