Smartphoto Group N.V.

Interim / Quarterly Report • Aug 30, 2012

SPECTOR PHOTO GROUP – 2012 HALF-YEARLY FINANCIAL REPORT

Regulated information

2012 HALF-YEARLY FINANCIAL REPORT

TABLE OF CONTENTS

O b lig h r d t d l in for he b lic da h t he lg l D f 1 be 2 0 0 at ion it io ica t ion to t in it B ian R 4 N 7 s w eg ar o p er ma p u ac co r nc e w e oy a ec ree o ov em r	3
Ke fig C li da d fig in da it h I FR S te ure s - on so ure s ac co nc e w y r	4
Int im l re ort er an nu a p	5
A br i dg d fin ia l s 3 0 Ju 2 0 1 2 tat ts at e an c em en as ne	8
for he d Inc tat t t io om e s em en p er	8
f c he for he d St ate nt ive in t io me o om p re ns co me p er	9
he for he d p ha Co ive in t io mp re ns co me p er er s re	9
St f fin l p he d o f t he d ate nt ia it ion at t io me o an os en p er c as	0 1
St f c ha for he d ate nt in ity t io me o ng es eq p er u	11
St f c h f low for he io d ate nt t me o as s p er	2 1
Ba is for he ion f t he ha l f-y ly li da d fin ia l s t t te tat ts s p rep ara o ea r co ns o an c em en	1 2
No he ha l f-y ly li da d fin ia l s tes to t te tat ts ea r co ns o an c em en	14
1. Op ion l s t nts era a eg me	14
for hic h s fic ha d 2. No tes nin ts ig ni t c co nc er g as se w an ng es oc cu rre	1 6
lia b lit for hic h s fic ha d 3. No tes nin i ies ig ni t c co nc er g w an ng es oc cu rre	17
d lia b lit he l d for le 4. As ts i ies se an sa	1 8
S ha 5. res	1 8
6. Ev fte he ing io d ts r t ort en a re p p er	1 8
7. Se l c ha f in im ing ivi ies ter ter t t t as on a rac o op era ac	1 9
fut 8. Co ing iva b les d lia b i lit ies d im ion nt t r ort t t en ec e an an p an ure as su mp s	1 9
fac 9. Ris k to rs	1 9
lat d p 1 0. Re art ies e	1 9
ha 11 . E ate xc ng e r s	9 1
2. St fro he C f S d he lim d r f t he 1 ate nt t mi tte tat uto Au ito t ite iew in ter im me m om e o ry rs on ev o
li da d p f S ho Gr 3 0 2 0 2 t it ion tor P to NV at Ju 1 co ns o os o p ec ou p as ne	2 0
1 3. De fin it ion s	2 2
Fin ia l c len da an c a r	2 2
Sp P ho Gr Pro fi le tor to ec ou p	2 2
lia f t he li da d fig for he fir ha l f o f b lis he d o AP PE ND IX 1 : R i t ion te t st 2 0 11 ec on c o co ns o ure s as p u n
d a de d c li da d fig f t he fir ha l f o f Au t 3 0, 2 0 11 te st 2 0 11 g us an me n on so ure s o	2 3

Obligations with regard to periodical information to the public in accordance with the Belgian Royal Decree of 14 November 2007

Mr. Stef De corte, Chief Executive Officer, declares in the name and on behalf of Spector Photo Group, that to the best of his knowledge: -

• the half-yearly consolidated financial statements, which have been prepared in accordance with the applicable standards for financial statements, present a true and fair view of the assets and liabilities, of the financial position, and of the results of Spector Photo Group NV and the companies incorporated in the consolidation; -
• the interim half-yearly report gives a true and fair summary of the developments and the results in the first half-year, the effect of these on the abridged half-yearly financial statements, and the information that must be included about these, and a description of the risks and uncertainties for the remaining months of the financial year.

Key figures

Consolidated figures in accordance with IFRS

In St at t co me em en	( € ' 00 0) in	2 01 Ju 1 ne	20 12 Ju ne	in % ∆
Re ve nu e		93 3 75	79 92 4	-14 .8%
fit/ los s ( -) fro tin cti vit ies be for rri ite Pro m op era g a e n on -re cu ng ,	( ) RE BIT ms	- 2 65 6	69 - 4 1	-76 .6%
h i s f be for No tem tin cti vit ies rri n-c rom op era g a e n on -re ng as cu ,	ite ms	2 5 68	1 6 09	-37 .3%
RE BIT DA		88 -	- 3 08 2	-
fr No ing ite tin cti vit ies n-r ec urr ms om op era g a		11 7 -	52 1 -	-34 6.4 %
Pro fit/ los s ( -) fro tin cti vit ies ( EB IT) m op era g a		- 2 77 3	- 5 21 2	-88 .0%
No ing sh ite fr tin cti vit ies n-r ec urr n on -ca ms om op era g a		0	23 3	-
EB ITD A		20 4 -	- 3 37 0	-15 48 .7%
Fin cia l re lt an su		1 14 7	93 2 -	-
(- ) / Inc e t inc om ax ex pe nse om e		16 3 -	61	13 7.6 %
fit/ los s ( -) fro Pro nti ing tiv itie m co nu ac s		- 1 78 9	- 6 08 3	-
s f No h i tem nti ing tiv itie n-c as rom co nu ac s		2 83 3	88 5	-68 .8%
fit/ los s ( -) fro d f h i Pro nti ing tiv itie cte m co nu ac s, co rre or no n-c as	tem s	1 04 4	- 5 19 8	-
Pro fit/ los s ( -) fro dis nti ed tio m co nu op era ns		0	0	-
Pro fit/ los s ( -) for th eri od e p		- 1 78 9	- 6 08 3	-
rib ble th Att uta to e g rou p		78 9 - 1	- 6 08 3	-
f f St at t o ina ial sit ion em en nc po	( in € ' 00 0)	Ju 2 01 1 ne	Ju 20 12 ne	∆ in %
To tal uit eq y		20 69 8	18 76 5	-9. 3%
f fi ial tal Sta tem t o sit ion to en na nc po		90 47 3	85 37 5	-5. 6%
t fi ial de bt Ne na nc		36 07 4	37 53 7	4.1 %
Cu ela tio hip sto me r r ns s		69 1	0	-
Re ble rta ts po se gm en	( in € ' 00 0)	Ju 2 01 1 ne	Ju 20 12 ne	∆ in %
Re ve nu e
Re tai l		69 18 4	56 24 4	-18 .7%
Im ing ag		24 85 0	23 92 5	-3. 7%
Int nt ers eg me		28 1 -	24 6 -	12 .5%
tal ab le To ort ts re ve nu e r ep se gm en		93 3 75	79 92 4	-14 .8%
Pro fit/ los s ( -) fro tin cti vit ies be for rri ite m op era g a e n on -re cu ng ,	( RE BIT ) ms	- 2 46 6	- 4 54 5	-84 .3%
l Re tai		82 2 - 1	- 3 42 5	-88 .0%
Im ing ag		64 3 -	- 1 12 0	-74 .0%
RE BIT DA		1 00	- 2 93 9	-
Re tai l		94 8 -	- 2 79 5	-19 4.8 %
Im ing ag		1 04 8	14 4 -	-
Pro fit/ los s ( -) fro tin cti vit ies ( EB IT) m op era g a		- 2 58 2	- 5 06 6	-96 .2%
tai l Re		93 9 - 1	- 3 94 6	-10 3.5 %
Im ing ag		64 3 -	- 1 12 0	-74 .0%
EB ITD A		16 -	- 3 22 7	-
Re tai l		- 1 06 5	- 3 08 3	-18 9.6 %
Im ing ag		1 04 8	14 4 -	-11 3.8 %

2012 HALF-YEARLY FINANCIAL REPORT

Interim annual report

In the context of the opinion of the EECS (EuropeanEnforcers' Coordination Sessions) and the FSMA relating the interpretation of IAS 38.88 on externally acquired customer relationships, in particular the definite or indefinite useful life thereof, the Board of Directors published amended consolidated financial statementsfor the 2010 and 2011 financial years.

Based on this opinion the Board of Directors of Spector Photo Group defined an adjusted amortisation methodand useful life, defining the amortisation period between minimum 1 year to maximum 20 years.

As was already determined in 2010, is a straight-line method over a period of 7 years not an adequate representation of the reality. Due to technologicaldevelopments such as internet and the resulting change in the acquisition channels and consumers patterns of behavior, it is impossible, according to the Board of Directors, to determine the 'best estimate'. The Board of Directors therefore considered an amortization period of one year as the most transparent assessment.

This change in amortisation method and useful life was applied retroactively in accordance with IAS 8.41. See 2011 annual report on page 21.

This implies that the comparable figures of the 2012 Half-yearly financial report have been adjusted.

The original 2011 half-yearly financial report was published on August 30, 2011.

The present 2012 half-yearly financial report includes the aforementioned changes. Also, in Appendix 1 to this report, the reconciliation between the consolidatedfigures for the first half of 2011 as published on August 30, 2011 and the amended consolidated figures for the first half of 2011 is included.

CURRENT SITUATION OF EACH DIVISION

Retail Group – Photo Hall

On 24 July 2012, Photo Hall Multimedia NV informed its Works Council that the procedure had been started with the Commercial Court to appeal to the Law on the Continuity of Companies (Wet op de Continuïteit vanOndernemingen - WCO) in order to use this procedureto find a buyer for the operations of the Retail Group in Belgium and Luxembourg (See press release of 24 July 2012).

As a result of this decision by the Board of Directors of Photo Hall Multimedia NV, Spector Photo Group NV will recognise the Retail Group as assets held for sale in its consolidated figures in accordance with IFRS 5 with

effect from 1 July 2012. In the consolidated figures as at 30 June 2012, the Retail Group is still recognised under the continuing operations in accordance with IAS 10.10.

For some time now, the Retail Group has been experiencing the impact of the crisis, combined with the decline in the market for consumer electronics, the pressure on prices, and increased competition.

Since the start of 2011, various measures have beentaken to try to improve the situation. In addition to the closure of several shops in 2011 and 2012, the management has been changed. There was also a reduction in the number of staff, inventories were drastically reduced, and the parent company, Spector

Photo Group NV, increased the shareholders' equity of Photo Hall Multimedia NV. The result of these measures turned out to be insufficient to reach an agreementwith the lenders in the short term. The Board of Directors of Photo Hall Multimedia NV therefore decided to seek a buyer for its activities under the protection of the Law on the Continuity of Companies – Articles 59 to 70 – 'Judicial reorganisation through transfer under judicial authority' (Gerechtelijke reorganisatie door overdracht onder gerechtelijk gezag).

With this procedure, Photo Hall wants to make everyeffort to ensure the continuity, to retain employment, to guarantee service to its customers, and to safeguard relationships with its commercial partners.

At final deconsolidation, there will be no negative effect under IFRS on the consolidated equity of Spector Photo Group. Since there is no financial commitment from Spector Photo Group NV to the creditors of its subsidiary Photo Hall Multimedia NV, there will therefore be no further negative financial effect on the Group. The net financial debt of Spector Photo Group as at 30 June 2012 amounted to EUR 37.537 million, of which EUR 32.125 million related to the Retail Group.

Evolution of the first half-year of 2012

The revenues of the retail operations within the Photo Hall Group amounted to EUR 56.244 million in the first half of 2012, a decrease by 18.7% compared to the EUR 69.184 million in the same period last year.

Several factors underlie this further decrease of the revenues. During the past year, 15 unprofitable shops were closed, reducing the number of shops in Belgium from 92 to 78, and 16 shops remain in Luxembourg (one shop was closed).

Consumer confidence continues to be low and manufacturers are reluctant to make investments, which results in a lack of product innovations. Moreover, a high level of competition causes price erosion and puts continuous pressure on profit margins.

ber of sho Num ps	Jun e 2 011	Jun e 2 012	∆
Belg ium
hop ow n s s	89	75	-14
e-co mm erce	1	1
und er f chis ing ran	3	3
Lux bou em rg
hop ow n s s	17	16	-1
e-co mm erce	1	1
Sub l tota
hop ow n s s	106	91	-15
e-co mm erce	2	2
und er f chis ing ran	3	3
Tot al n ber of sho um ps	111	96	-15

The REBIT of the Retail Group fell from minus EUR 1.822 million to minus EUR 3.425 million, with the REBITDA decreasing from minus EUR 0.948 million to minus EUR 2.795 million in the first half of 2012.

smartphotoTM Group - Photomedia

The revenues from the smartphotoTM Group amounted to EUR 23.925 million in the first half-year of 2012, a decrease of only 3.7% in comparison with the same period in 2011. The REBIT developed from minus EUR 0.643 million in the first half of 2011 to minus EUR 1.120 million in 2012.

The group's activities are shifting more and more into the last quarter, due to a greater focus on products with higher margins, such as photo books, photo cards, and photo gifts. The decline in sales figures for digital and analogue prints reinforces this phenomenon.

The mail order photo activities experienced a sharpdecline in analogue and digital prints: -48% for analogue and -24% for digital. The increase in sales of photo books, photo cards, and photo gifts ensured that digital revenues remained at the same level as lastyear. This also resulted in the margin being retained. On the other hand, the transition to the new smartphotoTM brand led to increased marketing costs in the first half-year of 2012.

The photo activity in the retail shops experienced the same decrease in analogue and digital prints, but since the proportion of these products there is much greater, this puts heavy pressure on both the revenues from and profitability of this activity.

The sale of hardware via Filmobel remained stable, but the continuing pressure on margins also depressed the profitability in this area.

Most important items from the statement of comprehensive income

In the first half-year of the 2012 financial year, Spector Photo Group realised revenues of EUR 79.924 million (-14.8%) with a REBIT of minus EUR 4.691 million, compared to EUR 93.753 million and minus EUR 2.656 million respectively in the first half of 2011. The EBIT decreased from minus EUR 2.773 million to minus EUR 5.212 million. At the level of its REBITDA, Spector Photo Group experienced a deterioration of EUR 0.088 million to minus EUR 3.082 million. The contribution of the Retail Group in the REBITDA amounted to minus EUR 2.795 million, while the Imaging Group operated at almost break-even.

Due to the nature and development of the activities of the Retail Group, but especially of the Imaging Group, the focus of the financial year lies in the fourth quarter.

Restructuring measures implemented within the Retail Group during the first half of the year led to nonrecurring expenses of EUR 0.521 million and mainly included severance payments of EUR 0.272 million and additional depreciation of EUR 0.182 million as a result of closing shops. During the first half-year of last year, the non-recurring costs of EUR 0.117 million were also exclusively related to the Retail Group, principally severance payments.

Financial result

The financial result decreased by EUR 2.080 million in comparison with the first half of 2011, and amounted to minus EUR 0.932 million compared to EUR 1.147 million in the preceding year. This decrease is theresult of the non-recurring income of EUR 2.011 million realised in the first half-year of 2011 as a result of the loan and facility agreement concluded with NIBC Bank in April 2011. The recurring financial result remained almost the same due to the combination of lower financial charges of EUR 0.045 million, and the negative change in realised and unrealised exchangerate gains and losses of minus EUR 0.112 million.

Taxes

In the first half of 2012, Spector Photo Group achieved a tax result of EUR 0.061 million compared to minusEUR 0.163 million in the first half of 2011. The income taxes amount EUR -0.123 million. The mutation in the deferred taxes amounts to EUR 0.185 million.

Result for the financial year

The first half of the 2012 financial year was closed with a loss of EUR 6.083 million, compared to a loss of EUR 1.789 million in the same period of 2011. This decline in the result by minus EUR 4.294 million can be explained as follows:

• Operating result: decrease of EUR 2.439 million, of which EUR 2.007 million related to the Retail Group.
• Financial result: decrease of EUR 2.080 million, mainly due to the non-recurring income of EUR 2.011 million in the first half-year.
• Income taxes: decrease of the tax expenses by EUR 0.224 million.

Statement of financial position

The balance sheet total decreased from EUR 95.608 million at the 2011 year-end to EUR 85.375 million at the end of June 2012. The most important items are the following:

The net financial debt amounted to EUR 37.537 million as at the end of June 2012, compared to EUR 36.074 million as at the end of June 2011. The net financial debt relating to the Retail Group as at the end of June 2012 amounted to EUR 32.125 million.

48.046.236.2 34.828.041.429.636.132.15.41520252007 08H1 2008 09H1 2009 10H1 2010 11H1 2011 12H1Evolution net financial debt (in EUR mio)

• Shareholders' equity compared to year decreased primarily due to the halfamounted as at the end of June 2012 EURmillion (EURshare).equity year-end 2011 primarily due half-year loss and EUR 18.765 (EUR 0.53 for each dividend-bearing
• The non million, mainly as a result, on the one hand, of the depreciation of minus EURthe other, the investments in property, plant and equipment and intangible assets of EURmillion, and a net increase in deferred tax assets of EUR 0.to the Imaging Group, in particular production material for the canvas division and the expansion of the web application for the website.The non-current assets decreased by EUR 1.393 on of EUR 1.994 million and, on other, plant assets EUR 0.468 and a increase 0.199 million. The investments relate mainly the Group, in production for application for

Prospects for 2012Prospects

The Retail Group is currently operating under protection against the main creditors via the Law on the Continuity of Companies (Wet op de Continuïteit van Ondernemingen). is sought under the supervision of the trustees appointed by the court, ends at 31 December 2012. Retail operating n the main creditors via the van This procedure, in which a buyer under the by the court, 2012, Group expects

For 2012, the Imaging Group expects a stabilisation of total revenues while retaining its profitability.

Abridged financial statements as at 30 June 2011

INCOME STATEMENT FOR THE PERIOD (in € '000)

( in € '0 0 0 )	Ju 2 0 1 1 ne	Ju 2 0 1 2 ne	∆	∆ in %
Re ve nu e	9 3 75 3	7 9 9 24	1 3 8 3 0 -	-1 4. 8 %
Ot he at ing inc r o p er om e	2 1 0 7	3 0 1 5	8 75 -	-3 6. 0 %
ha f f he d g ds k C in inv to in is & in ng es en ry o oo wo r p ro g re ss	3 -	4 -	1 -	-
k p fo d by d c l d Wo nte ise ita ise r er rm e e rp r a n ap	2		2 -	-
Tr de ds ia ls d c b les ate a g oo aw m an on su ma , r r	6 7 7 3 2 -	- 5 8 25 0	9 4 8 2	14 0 %
Em loy p ee ex p en se s	3 9 1 6 6 -	1 3 4 2 6 -	5 4 0	3. 9 %
De iat ion d a isa ion rt t p re c a n mo ex p en se s	2 5 3 4 -	1 6 3 9 -	9 0 4	3 % 5. 5
Ot he ing at r o p er e xp en se s	14 27 5 -	1 2 6 45 -	1 6 3 0	1 1.4 %
f / los (- ) fro be fo Pr it at ing ct iv it ies ing o s m op er a re no n- re cu rr ,
ite ms	2 6 5 6 -	- 4 6 9 1	2 0 3 5 -	-7 6. 6 %
fro No ing ite at ing ct iv it ies n- re cu rr ms m op er a	1 17 -	2 5 1 -	0 4 4 -	-3 4 6. 4 %
f / los (- ) fro Pr it at ing ct iv it ies o s m op er a	2 7 7 3 -	- 5 2 1 2	2 4 3 9 -	-8 8. 0 %
l F ina ia inc nc om e	4 7 6	24	45 2 -	-9 5. 0 %
l c F ina ia ts nc os	1 3 4 0 -	9 5 6 -	3 8 4	2 8. 6 %
l c be fo F ina ia t-n et, ing ite nc os re no n- re cu rr ms	8 6 4 -	9 3 2 -	6 8 -	9 % -7
f l No ing ina ia ite n- re cu rr nc ms	2 0 1 1		2 0 1 1 -	-
ina ia l r lt F nc es u	1 14 7	9 3 2 -	2 0 8 0 -	-1 8 1. 3 %
Pr f it / los (- ) be fo be fo ing f ina ia l ite tax o s re es re no n- re cu rr nc ms ,	3 6 3 7 -	6 14 4 -	2 5 0 7 -	-6 8. 9 %
Pr f it / los (- ) be fo tax o s re es	1 6 25 -	6 14 4 -	- 4 5 1 9	-2 7 8. 0 %
(- ) / In ta inc co me x e xp en se om e	1 6 3 -	6 1	2 24	1 3 7. 6 %
f / los (- ) fro Pr it nt inu ing ct iv it ies o s m co a	8 9 1 7 -	6 0 8 3 -	2 9 - 4 4	-2 4 0. 1 %
Pr f it / los (- ) fo he io d r t o s p er	1 7 8 9 -	6 0 8 3 -	- 4 2 9 4	-2 4 0. 1 %
At i bu b le ity ho l de f t he tr ta to t c eq u rs o p ar en om p an y	1 7 8 9 -	6 0 8 3 -	- 4 2 9 4	-2 0. % 4 1

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD (in € '000)

( in € '0 0 0 )	Ju 2 0 1 1 ne	Ju 2 0 1 2 ne	in % ∆
Pr f it / los (- ) fo he io d r t o s p er	1 7 8 9 -	6 0 8 -	3 -2 4 0. 1 %
lat d Cu tra ion j tm ts rre nc y ns a us en :	1 8 5 -	4 5	-
/ los (- ) du he Ga ins is ing ing t se s ar r y ea r	1 8 5 -	4 5
lat h f low he dg ( ) ing to In te st te N I B C re ca s e re ra sw ap
l c he fo he d a bu b le ho l de f t he To ta ive inc r t io ttr i ta to ity om p re ns om e p er eq u rs o
t c p ar en om p an y	9 3 1 7 -	6 0 9 -	9 -2 0 9. % 1

COMPREHENSIVE INCOME FOR THE PERIOD PER SHARE

( fo he be f s ha ) in €, t r t ex ce p n um r o re s	Ju 2 0 1 1 ne	Ju 2 0 1 2 ne
be f s ha Nu m r o re s	3 6 6 1 9 5 0 5	3 6 6 1 9 5 0 5
Nu be f s ha it h d iv i de d ig hts m r o re s w n r	3 5 4 1 2 4 3 3	3 5 4 1 2 4 3 3
fo he io d In st ate nt r t co me me p er Pr f it / los (- ) fo he io d a i bu b le ity ho l de f t he r t ttr ta to t o s p er eq rs o p ar en u co mp an y he fo he d Co ive inc io	-0 0 5	-0 1 7
r t mp re ns om e p er To l c he ive inc fo he io d a i bu b le ity ho l de f t he ta r t ttr ta to om p re ns om e p er eq rs o u
t c p ar en om p an y	-0 0 6	-0 1 7

STATEMENT OF FINANCIAL POSITION AS AT THE END OF THE PERIOD (in € '000)

AS SE TS	( in € '0 00 )	DE C 2 01 1	JU N 2 01 2	EQ UI TY A ND LI AB IL IT IE S	( in € ' 00 0)	DE C 2 01 1	JU N 20 12
No t a ts n-c urr en sse				tal uit To eq y
				Ca l ita p		64 19 4	64 19 4
				Re nd tai d e ing s/ se rve s a re ne arn ac cu	lat ed lo (- ) mu ss	- 4 4 4 02	- 5 0 5 45
lan nd uip Pro rty t a nt pe , p eq me		20 84 9	19 9 44	Re lua tio lus va n s urp		5 33 5	5 3 35
Co lida tio dw ill a nd oth od wil l nso n g oo er go		18 60 3	17 09 4	Tre sh s ( -) as ury are		- 2 42 2	- 2 42 2
Int ible the r th od wil l set an g as s o an go		1 31 8	2 6 80	Cu sla tio dju tr stm ts rre ncy an n a en		2 15 8	2 2 03
Oth t fi nci al ets er no n-c urr en na ass		4 9	49	Sh ho lde r's uit are eq y		24 86 4	18 76
de d o the ble Tra iva an ece s r r		1 99	154	To tal uit		24 86 4	5 18 76
fer red De ta ts x a sse		8 88 1	9 0 80	eq y			5
				t li ab ilit No ies n-c en urr
No t a ts n-c urr en sse		49 89 9	48 50 6	-be fin No t in ter est ari cia n-c en ng an urr	l o blig ati on s	8 4 68	7 9 50
				loy be fit lia bil Em itie p ee ne s		4 74	44 5
				No t p isio n-c urr en rov ns		23 6 1	28 6
Cu nt ets rre ass				De fer red x l iab ilit ies ta		7 59	75 7
				t li ab ilit No ies n-c en urr		10 93 6	9 4 37
As s h eld fo ale set r s		7 35	60 8
Inv tor ies en		20 33 7	20 38 8	Cu nt lia bil itie rre s
Tra de d o the iva ble an r r ece s		14 14 9	10 97 3	bil s h eld fo ale Lia itie r s		7 53	62 6
Inv est nt uri tie nt me sec s - cu rre		3	3	Cu int be ari fin cia l o blig nt st- rre ere ng an	ati on s	33 90 4	18 34 7
sh d c h e len Ca iva ts an as qu		10 23 5	4 5 96	Tra de d o the ab les an r p ay		19 83 7	16 83 5
Cu nt inc e t ets rre om ax ass		2 50	30 0	loy be fit lia bil Em itie p ee ne s		06 4 1	3 4 98
				lia bil Cu nt inc e t itie rre om ax s		4 5	87 7
Cu nt ets rre ass		45 70 9	36 86 9	f p Cu nt rtio isio rre po n o rov ns		1 20 8	1 1 51
				Cu lia bil nt itie rre s		59 80 8	57 17 3
TO TA L A SS ET S		95 60 8	85 37 5	TO TA L E Q UIT Y A ND LI AB ILI TI ES		95 60 8	85 37 5

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD (in € '000)

( in € ' 00 0)	ita l Ca p	d ea ine Re ta ing rn s	Fa ir lue va ad ju st nt me s of fi ial na nc ins tru nt me s	lua tio Re va n lus su rp	Tr ea su ry sh ar es	Cu rre nc y lat ion tra ns ad ju st nt me s	Sh eh old s' ar er uit eq y	l e ity To ta qu
lan 3 1.1 2.2 01 0 Ba at ce as	64 19 4	1 5 29 -4			-2 42 2	2 4 28	22 67 1	22 67 1
Cu sla tio n d iffe tr rre ncy an ren ce s s/ los s ( -) ed th Ne t g ain t r nis in e i se no ec og nc om e sta tem t en						- 1 85	- 1 85	- 1 85
Ne rof it/ los s ( -) for th eri od t p e p		-1 78 9					-1 78 9	-1 78 9
To tal reh siv e i co mp en nc om e		-1 78 9				- 1 85	-1 97 3	-1 97 3
lan 30 .06 .20 Ba at 11 ce as	64 19 4	-43 3 17			-2 42 2	2 2 43	20 69 8	20 69 8

lan Ba at 3 1.1 2.2 01 1 ce as	64 19 4	-44 40 2		5 3 35	-2 42 2	2 1 58	24 86 4	24 86 4
sla n d iffe Cu tr tio rre ncy an ren ce s Ne t g ain s/ los s ( -) t r nis ed in th e i se no ec og nc om e sta tem t en			- 6 1			45	45 - 6 1	45 - 6 1
Ne rof it/ los s ( -) for th eri od t p e p		-6 08 3					-6 08 3	-6 08 3
tal reh To siv e i co mp en nc om e		-6 08 3	- 6 1			45	-6 09 9	-6 09 9
Ba lan at 30 .06 .20 12 ce as	64 19 4	-50 48 5	- 6 1	5 3 35	-2 42 2	2 2 03	18 76 5	18 76 5

STATEMENT OF CASH FLOWS FOR THE PERIOD (in € '000)

Fo he de d o r t ye ar en n	Ju 20 11 ne	Ju 20 12 ne
Op tin ctiv itie era g a s
Ne t re sul t	- 1 78 9	- 6 08 3
De cia tio ite -of fs, im irm f p lan nd t o ert t a pre n, wr pa en rop y, p
uip nt eq me	1 544	1 6 38
-of fs, f in ible De cia tio ite im irm t o tan set pre n, pa en g as s wr	8 92	35 5
Wr ite -of fs, im irm nd t o t a t a ts pa en n c urr en no n-c urr en sse	31 1	124 -
Pro vis ion s	2 5	- 2 7
Un lise d f ign cha lo s/g ain s ( -) rea ore ex nge sse	- 3 00	20
e ( -) /ex Ne t in ter est in com pe nse	9 07	85 1
Los s/g ain (- ) o ale of ert lan t a nd uip nt n s pr op p eq me y,	10 -	13 -
Inc e t om ax ex pe nse s	103 -	- 1 01 6
Oth ash sts er no n-c co
fit fro tio bef ch s in rki ial d Pro m op era ns ore an ge wo ng cap an
vis ion pro s	1 29 7	- 4 39 8
/ (- ) rad nd oth ab les d c De inc in t eiv t cre ase rea se e a er rec an urr en
inc e t ets om ax ass	3 82 9	3 0 49
/ (- ) De inc in inv tor ies cre ase rea se en	8 5 05	157
se/ de (- ) rad nd oth ab les Inc in t rea cre ase e a er pay	- 1 7 9 98	- 2 95 4
Inc se/ de (- ) in vis ion rea cre ase pro s	- 4 70	178 -
se/ de (- ) loy be nef it l iab iliti Inc in t e rea cre ase no n-c urr en mp ee es		- 7
Inc se/ de (- ) in rki ita l rea cre ase wo ng ca p	- 6 13 5	67
Op tin ash flo fte ha s in rki ita l a nd era g c w a r c nge wo ng cap
vis ion pro s	- 4 83 8	- 4 33 1
Int st id (- ) ere pa	- 9 03	- 7 95
ed Int st eiv ere rec	1 4	10
ash flo w f C tin ctiv itie rom op era g a s	- 5 72 7	- 5 11 6

	Ju 20 11 ne	Ju 20 12 ne
Inv ing tiv itie est ac s
ds fro sal f p lan nd Pro ert t a uip nt cee m e o rop p eq me y,	1 0	34
Ac isit ion of lan nd uip ert t a nt qu pr op y, p eq me	- 5 59	- 2 60
of ible Ac isit ion in tan set qu g as s	- 2 44	- 2 08
Ca sh flo w f in stin ctiv itie rom ve g a s	- 7 92	- 4 33
Fin cin ctiv itie an g a s
Pro ds fro inte t-b rin fin cia l o blig ati cee m res ea g an on s	12 63 6	2 5 00
of int bea rin fin cia l o blig ati Re nt st- pay me ere g an on s	- 1 5 2 26	- 2 73 6
dif fer Oth er en ces	- 1 33 6
Ca sh flo w f fin cin ctv itie rom an g a s	- 3 92 6	- 2 36
/ de (- ) h a nd h e len Ne t in in c iva ts cre ase cre ase as cas qu	0 4 - 1 46	78 - 5 5
Ca sh d c ash uiv ale th e b inn ing of th nts at an eq eg e y ea r	16 58 0	10 23 5
sh d c ash ale th e b of th Ca uiv nts at inn ing an eq eg e y ea r
dis nti d o ion rat co nue pe s	6 28	73 5
Eff of cha flu ati ect ate ctu ex ng e r on s	3	18
sh d c ash ale th nd of the d Ca uiv nts at rio an eq e e pe	6 1 37	4 5 96
Ca sh d c ash uiv ale th nd of the rio d i he ld nts at ts an eq e e pe n a sse
for le sa	6 28	60 7
To tal sh d c ash uiv ale nts ca an eq	6 76 5	5 2 03

BASIS FOR THE PREPARATION OF THE HALF-YEARLY CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF COMPLIANCE

The half-yearly consolidated financial statements closed on 30 June 2012 have been prepared in accordance with IAS 34 "Interim financial reporting" as approved by the European Union. They do not contain all the information necessary for the full financial statements and therefore must be read together with the consolidated financial statements for the year ended 31 December 2011, as published in the 2011 Annual Report.

The Board of Directors approved the half-yearly consolidated financial statements for publication on 27 August 2012.

CHANGES IN ACCOUNTING AND PRESENTATION RULES

The accounting policies and presentation basis used for the format of the half-yearly consolidated financial statements are identical to those applied for the financial year ended 31 December 2011, as incorporated in the

2011 Annual Report, with the exception of the new standards and interpretations reported below applicable with effect from 1 January 2012.

Amendments to IFRS 1 First Time Adoption of International Financial Reporting Standards — Exemption for Severe Hyperinflation and Removal of Fixed Dates: applicable for financial years commencing on or after 1 July 2011.

Amendments to IFRS 7 Financial Instruments: Disclosures - disclosures concerning transferred financial assets: applicable for financial years commencing on or after 1 July 2011.

Spector Photo Group NV has applied all published new and revised standards and interpretations that are relevant to its activities and which are in force for the accounting period that started on 1 January 2012, as issued by the International Accounting Standards Board (IASB) and International Financial Reporting Interpretations Committee (IFRIC) of the IASB.

The group has not yet proceeded with the early application of the new standards, amended existing standards and interpretations that had already beenendorsed by the EU on the date of the financial statements' approval, but which were not compulsorily applicable for the period commencing on 1 January 2012:

Amendments to IAS 1 Presentation of Financial Statements - Presentation of the other elements of comprehensive income: applicable for financial years commencing on or after 1 July 2012.

Amendments to IAS 12 Income Taxes — Deferred Taxes:realisation of underlying assets: applicable for financial years commencing on or after 1 January 2013.

IAS 19 Employee Benefits – Revised version of 2011:applicable for financial years commencing on or after 1 January 2013.

Amendments to IAS 27 Separate Financial Statements:applicable for financial years commencing on or after 1 January 2013 Requirements for consolidated financial statements are now included in IFRS 10 ConsolidatedFinancial Statements.

Amendments to IAS 28 Investments in associates and interests in joint ventures: applicable for financial years commencing on or after 1 January 2013.

Amendment to IAS 32 Netting financial assets and liabilities: applicable for financial years commencing on or after 1 January 2014.

IFRS 9 Financial instruments: applicable for financial years commencing on or after 1 January 2013.

IFRS 10 Consolidated Financial Statements: applicable for financial years commencing on or after 1 January 2013.

IFRS 11 Joint Arrangements: applicable for financial years commencing on or after 1 January 2013.

IFRS 12 Disclosure of interests in other entities: applicable for financial years commencing on or after 1 January 2013.

IFRS 13 Fair Value Measurement: applicable for financial years commencing on or after 1 January 2013.

The future application of the standards, amendments, and interpretations identified above is not expected to have any material effect on the consolidated financial statements of Spector Photo Group NV.

CONSOLIDATION

Changes in the companies included in the consolidation during the first half-year of 2012: -

• The name was changed of the legal entity Extra Film AG, the company that performs mail-order activities in Switzerland under the brand name smartphotoTM, formerly ExtraFilmTM, to smartphoto AG. - The winding up of companies that had already been put into liquidation in previous financial years has not yet been concluded for: Litto-Color NV, a company previously operating in the wholesale photofinishing market, Vivian Photo Products NV, a non-operational company, and Sacap France SA, company in France previously operating in wholesaling and distribution of photo materials and equipment for the photography trade.

NOTES TO THE HALF-YEARLY CONSOLIDATED FINANCIAL STATEMENTS

1.Operational segments

(in € '00 0)		ail Ret		gin g	al r Tot seg	ble rta epo nts me
	201 1	201 2	201 1	201 2	201 1	201 2
Rev enu e l rev Exte rna enu e Inte t rseg men Tot al r eve nue	69 134 51 69 184	56 216 28 56 244	24 620 23 0 24 850	23 708 21 7 23 925	93 753 28 1 94 034	79 924 24 6 80 169
Inte rest rev enu e	3	8	12	2	15	10
Inte rest ex pen se	1 27 0	67 2	60 5	21 3	1 87 5	884
Pro fit/l (-) befo re t oss axe s	-3 2 05	-4 6 09	91 9	-1 3 91	-2 2 86	-5 9 99
Tot al o atin nt a ts per g se gme sse	49 028	41 275	30 6 10	32 8 85	79 6 38	74 160
al o nt li abil Tot atin ities per g se gme	16 3 80	13 4 98	8 07 2	8 08 5	24 453	21 582
Tot al c apit al e ndit pla nt & uipm rty, ent xpe ure s pr ope eq al c al e ndit odw ill Tot apit xpe ure s go	38 1	49	16 5	21 0	0 5 46	26 0
Tot al c apit al e ndit s in ible othe r th tang ets xpe ure ass an dwi ll goo	11	32	220	176	0 23 1	208
nd a Dep reci atio tisa tion ns a mor s Oth ash er n on c	- 86 3 - 11	- 99 9 13 6	- 1 570 - 12 2	- 99 1 15	- 2 433 - 13 3	- 1 990 0 1 52
ber of p mpl d in d of the riod Num FTE erso ns e oye s en pe	474	421	237	219	711	640

The operational segments to be reported reconcile with the internal management reporting, on the basis of which the performance of the operational segments is assessed and funds are allocated to the various segments.

Spector Photo Group's segment reporting consists of two operational segments: theImaging segment and the Retail segment. -

• The measurement of the result of the segments is performed in the same way as the measurement of the entity's result. This also applies for the measurement of the assets and liabilities. The principle for the financial reporting concerning transactions between the segments to be reported is set at arm's length. -
• For the information on products concerning the revenues from sales to external customers for the entire entity, please refer to the table containing the segment information. -
• There is no dependence on key customers in the two different segments. -
• The detailed figures of the former segment 'corporate' can be found under the `Reconciliations', as there are no external revenues.

Reconciliations

Rev enu e Tot al r for tab le s ent eve nue re por egm s Elim ina tion of inte ent rse gm re ven ue al r Tot eve nue Pro fit/ loss (-) Oth fit o r lo (-) er pro ss Pro fit/ loss (-) t al loca ted ble to orta nts no rep seg me	2 0 11 94 034 - 28 1 93 753	1 2 2 0 12 80 169 - 24 6 79 924
Oth er	66 1	- 14 5
Pro fit/ loss (-) be fore tax es	-1 6 25	-6 144
Ass ets
Tot al a ts f ble orta nts sse or rep seg me	79 638	74 160
Ass t al loca ted ble ets to orta nts no rep seg me
of Elim ina tion eiv abl rec es	-6 8 16	-4 218
Def ed tax set err as	7 8 01	9 0 57
Oth er	9 2 14	5 7 66
ed Dis tinu rati ets con ope ng ass	63 6	608
Tot al a ts sse	90 473	85 375
Liab ilitie s
Tot al l iab ilitie s fo tab le s ent r re por egm s	24 453	21 582
Liab ilitie ot a lloc ate d to tab le s ent s n re por egm s
Elim ina tion of liab ilitie s	- 2 11	- 26
Fina ncia l ob liga tion s	42 214	3 42
Oth er	2 6 66	136 2 5
Dis tinu ed rati liab ilitie con ope ng s	65 3	28
al l iab ilitie Tot s	69 775	626 66 610

Retail segment

The Retail segment consists entirely of the Retail Group operating division. This division consists of the legal entity Photo Hall Multimedia NV in Belgium and its wholly-owned subsidiaries Photo Hall France SARL, Hifi International SA (Luxembourg) and Hifimmo SA (Luxembourg). The Retail Group is structured centrally under Photo Hall Multimedia NV, and managed centrally at operational level by the central management of Photo Hall Multimedia NV, which reports on all of these activities directly to the Chief Executive Officer of Spector Photo Group NV.

The products and services of the entities in this segment are comparable: the retail trade in consumer electronics and related products. The customers in this segment are also the final consumers in the countries in which this division's entities operate. The distribution channels of the entities within this segment are comparable. The entities bring their products and services to the market mainly via the channel of shops. Although all of the entities also operate websites on internet, the total turnover of internet sales is not significant for their total revenues. Furthermore, the entities in this segment show comparable economic characteristics. The returns from all the entities in this division are of similar size – notwithstanding any national or culturally-related small differences. These entities have similar levels of investment requirements and working capital, and generate comparable gross margins and EBIT margins. For their internal controlling, they also use similar criteria, such as: revenue per sales person, revenue per square metre of shop space, and suchlike. There is also a wholesaledivision in Luxembourg that operates in France, Germany, and the Benelux.

The Retail segment was created by combining activities that, in accordance with paragraphs 5 to 10 of IFRS 8, have been identified and meet the criteria for combination as prescribed in IFRS 8.12.

The Retail Group has a risk profile that differs from that of the Imaging Group.

Imaging segment

The Imaging segment consists entirely of the operating division, the Imaging Group. This division contains the legal entity Photomedia NV in Belgium and its wholly owned subsidiaries in Belgium and abroad. The Imaging Group is centrally organised under Photomedia NV and is centrally managed at operational level by the managing director of Photomedia NV, who reports directly to the Chief Executive Officer of Spector Photo Group NV on all of these activities.

The operating entities within the Imaging Group produce individual goods or a group of similar goods and/or provide individual services or a group of similar services. The nature of the products and services is therefore comparable. They are all directly concerned with photography, both analogue and digital. These are mainly products and services concerned with the production of photo prints.

The production process that runs as a thread through this segment is "photofinishing": the processing ofphotographs into photo prints. This is the only core activity for the majority of the entities in the Imaging Group. Filmobel NV trades in goods that are required for this production process, specifically photofinishing services, maxilab and minilab, under the Spector bysmartphotoTM brand name, as user and consumer items for photofinishing.

The photo prints are processed in the lab in Wetteren, Belgium. Central teams perform all the marketing and other back-office activities. Only one person is responsible for the general management, specifically the Chief Executive Officer of the Imaging Group.

The final customers for these activities are almostalways consumers. For the majority of the Imaging Group's entities, the end-consumer is also the direct customer. The marketing concept that Filmobel NV pursues under the Spector by smartphoto™ brand name is also directed towards final consumers.

The distribution channels are aligned with the market characteristics, which are often determined nationally and culturally. The boundaries between the distribution channels in the digital market are blurring and a crosschannel concept is emerging.

For example, consumers who order photo prints via internet, then sometimes want the photos delivered to their homes by mail and, at other times, want to collect the photos from a retail outlet in their neighbourhood.

Furthermore, the entities in this segment show comparable economic characteristics. The returns from virtually all the entities in this division are of similar size – notwithstanding any national, culturally-related or channel-specific differences. These entities have similar levels of investment requirements and working capital, and generate comparable gross margins and EBIT margins.

The Imaging segment was created by combining activities that, in accordance with paragraphs 5 to 10 of IFRS 8, have been identified and meet the criteria for combination as prescribed in IFRS 8.12.

The Imaging Group has a risk profile that differs from that of the Retail Group.

Both the Retail segment and the Imaging segment meet the quantitative thresholds as specified in IFRS 8.13, in which the reported revenues, reported profit or loss, and assets amount to more than 10% of the combined operational segments. In addition, in compliance with IFRS 8.15, the external revenues from the identified operational segments amount to more than 75% of Spector Photo Group's total revenues, which means no additional operational segments needto be considered.

Discontinued operations

Discontinued operations concern the Imaging Group.

The discontinued operations of the Imaging Group now still only include Litto-Color NV, which is in liquidation. The discontinued operation Litto-Color NV, in liquidation, had no impact on the result in the first half-year of 2011 or on the result in the first half-year of 2012.

2.Notes concerning assets for which significant changes occurred

Property, plant and equipment

The net carrying amount decreased by EUR 1.399 million in the first half of 2012. The decrease is mainly due, on the one hand, to the depreciation that amounted to EUR 1.638 million and, on the other, tothe investments amounting to EUR 0.260 million.

Goodwill

The intangible assets, which are the capitalised externally acquired trading securities and tenancy rights were reclassified from the 'Goodwill' heading to the 'Intangible assets other than goodwill' heading. The net carrying amount as at 31 December 2011 amounted to EUR 1.509 million.

The net carrying amount of the consolidation goodwill, with the main components of EUR 6.932 million for the Retail Group and EUR 10.162 million for the ImagingGroup, has remained unchanged.

At the end of June 2012, in accordance with IAS 36.12, the company performed an impairment test on the identified cash-generating units to examine whether

they have undergone any impairment loss. These tests demonstrated that the recoverable amount for these entities was higher than the net carrying amount for these entities. Accordingly, no impairment loss needs to be recognised.

The cash-generating units that represent the net carrying amount of the goodwill are: Photo HallBelgium – operating in the retail consumer electronics market in Belgium, Hifi International - operating in the retail consumer electronics market in Luxembourg and France, and smartphoto - operating in photofinishing via mail order and the professional photography trade.

Photo Hall Belgium and Hifi International

In accordance with IAS 36.104, an impairment loss should be recognised for a cash-generating unit if, and only if, the recoverable amount of the unit is less than the carrying amount of the unit.

Since the consolidated net book value as at 30 June2012 of all operating assets and liabilities, including all corporate assets and increased with the consolidation goodwill of the cash generating units Photo Hall Belgium and Hifi International is negative and the recoverable value (being the fair value less costs to sell) is a minimum of zero EUR as Spector Photo Group has no financial obligations towards the creditors of its subsidiary, notwithstanding the negative evolution of the figures and the uncertainty following the procedure to look for a buyer under the protection of the Law on the Continuity of companies, no impairment loss is recognised.

smartphoto

The recoverable amount of the cash-generating unit smartphoto is higher than the net carrying amount of all the operating assets and liabilities of this cashgenerating unit, plus its consolidated goodwill. The recoverable amount is calculated on the basis of the value in use, which is the sum of the discounted free cash flows. This calculation uses projections of the future free cash flows for the five coming financial years and adds a continuing annual growth of 2%.

More details on the determination of the projections and growth rates are included in the 2011 Annual Report on pages 72 and 73.

The results of these calculations are discounted at8.41% before taxes for the coming five years. As per end of 2011, this discount rate before tax amounted to 10.48%. The decrease in the discount rate arises from the further decrease of the interest rates. This discount rate reflects market-level return on equity and debt, , the current balance between equity and debt for this cash generating unit, and the estimates of additional risks and volatility for the potential developments in the market in which this unit operates.

The impairment test was also subjected to a sensitivity analysis in which the annual EBIT would be 10% lower each year. This showed that the recoverable amount was still higher than the carrying amount.

Intangible assets other than goodwill

The net carrying amount increased by EUR 1.362 million in the first half of 2012. This increase can be explained by: -

• the reclassification of the capitalised externally acquired trading securities and tenancy rights fromthe 'Goodwill' heading to the 'Intangible assets other than goodwill' heading. The net carrying amount as at 31 December 2011 amounted to EUR 1.509 million.
• the amortisation amounting to minus EUR 0.355 million -
• the investments of EUR 0.208 million.

Inventories

The heading 'Inventories' is virtually unchanged and focus mainly on the Retail Group.

Trade and other receivables

The decrease in the trade and other receivables is mainly caused by the fall of revenues in the RetailGroup, on the one hand, and the seasonal character of the activities of both divisions, on the other. The last quarter is the most important one for both the Retail Group and for the Imaging Group.

3.Notes concerning liabilities for which significant changes occurred

Non-current and current interest-bearing liabilities

The interest-bearing liabilities amounted to EUR 42.137 million as at 30 June 2012 compared to EUR 42,372 million as at 31 December 2011.

On the one hand, the long-term debt to the banking consortium of EUR 1.5 million of the Retail Group, as well as the long-term debt between NIBC Bank NV andPhotomedia have been repaid on a half-yearly basis.On the other hand, there were more short-term borrowings.

Current trade and other payables

The decrease in the trade and other receivables is mainly due to the fall of revenue in the Retail Group on the one hand, and the seasonal character of the activities of both the Retail Group and the ImagingGroup, on the other.

Non-current provisions

Because of a negative ruling of the court on a tax dispute of the subsidiary Vivian Photo Products NV, in liquidation – dating from the 1991 financial year – the provision that had been formed for this disputed tax, increased with interest amounts, was reversed and the amount was recognised as a current income tax liability of EUR 0.830 million.

4.Assets and liabilities held for sale (in € '000)

Discontinued operations

IMAGING: LITTO-COLOR NV

(in € '00 0)	Dec ber 20 11 em	Jun e 2 012
Ass ets
Trad e & othe ceiv able r re s		1
h an d ca sh e alen Cas quiv ts	73 5	607
held for sal Ass ets e	73 5	608
Prov ision s	16	8
Trad e & othe yab les r pa	14 3	24
Emp loye e be nefi t lia biliti es	59 4	594
Liab iliti es h eld for sale	75 3	626

The shares of the companies Litto-Color BV and Litto-Color SARL were sold at the end of 2006. Litto-Color NV was put into liquidation on 6 November 2006.

Litto-Color, previously operating in the wholesale photofinishing market, was a separate significant operation within the meaning of IFRS 5.32, with itsown lab in Ostend and its own portfolio of customers. With effect from the 2006 financial year, the assets and liabilities of this company have been classified as 'assets and liabilities held for sale'.

5.Shares

During the first half-year of 2012, no changes haveoccurred relating the treasury shares.

On 30 June 2012, Spector Photo Group NV possessed 1,207,072 treasury shares (3.296% of the total number), of which 77,271 are held by Spector Photo Group NV, 1,075,275 are held by the subsidiary Spector Coördinatiecentrum NV, and 54,526 by the subsidiary Alexander Photo SA. In accordance with IFRS, these treasury shares are recognised as a reduction of the equity.

6.Events after the reporting period

Retail Group – Photo Hall

On 24 July 2012, Photo Hall Multimedia NV informed its Works Council that the procedure had been started with the Commercial Court to appeal to the Law on the Continuity of Companies (Wet op de Continuïteit van Ondernemingen - WCO) in order to use this procedure to find a buyer for the operations of the Retail Group in Belgium and Luxembourg.

As a result of this decision by the Board of Directors of Photo Hall Multimedia NV, Spector Photo Group NVwill recognise the Retail Group as assets held for sale in its consolidated figures in accordance with IFRS 5 with effect from 1 July 2012. In the consolidated figures as at 30 June 2012, the Retail Group is still recognised under the continuing operations in accordance with IAS 10.10.

At final deconsolidation, there will be no negativeeffect under IFRS on the consolidated equity of Spector Photo Group. Since there is no financial commitment from Spector Photo Group NV to the creditors of its subsidiary Photo Hall Multimedia NV, there will therefore be no further negative financial effect on the Group. The net financial debt of Spector Photo Group as at 30 June 2012 amounted to EUR 37.537 million, of which EUR 32.125 million related to the Retail Group.

See also 'Current situation of each division' on page 5 of this report.

7. Seasonal character of interim operating activities

The activities of both the Retail Group and the Imaging Group are subject to seasonal fluctuations.

For the Retail Group, the last quarter and in particular the month of December is traditionally the most important. For the Imaging Group, in the analogue era the largest sales figures were realised during the summer months. With the transition to digital photography, there has been a shift to the fourth quarter due to the increased importance of new products with higher margins, such as photo books, photo calendars, photo cards, and photo gifts. The decline in sales figures for digital prints reinforces this phenomenon.

8. Contingent receivables and liabilities and important future assumptions

The provision that was formed for the disputed tax related to Vivian Photo Products NV was reversed asa result of the court's unfavourable ruling. The amount has been recognised as a current income tax liability.

There were no other changes in the contingent receivables and liabilities.

Assumptions concerning the future

Retail Group – Photo Hall

Photo Hall Multimedia NV, under the protection of the Law on the Continuity of Companies, on the basis ofarticles 59 to 70 'Judicial reorganisation through transfer under judicial authority' (Gerechtelijke reorganisatie door overdracht onder gerechtelijk gezag), is seeking a buyer for the operations of the Retail Group in Belgium and Luxembourg. This procedure, in which a buyer is sought under the supervision of the trustees appointed by the court,will operate until 31 December 2012.

At final deconsolidation, in view of the negative carrying amount as at 30 June 2012, there will be no negative effect on the consolidated equity of Spector Photo Group. Since there is no financial commitmentfrom Spector Photo Group NV to the creditors of itssubsidiary Photo Hall Multimedia NV, there will therefore be no further negative financial effect on the Group.

Imaging Group

The assumptions concerning the future as described in the 2011 Annual Report still apply for the Imaging Group.

9.Risk factors

The risks, particularly the credit risks, liquidity risks, currency risks, interest rate risks, and market risks, as described in the 2011 Annual Report, continue toapply with respect to the Imaging Group for the remaining period of the 2012 financial year.

Derivative financial instruments

To restrict the effects of interest rate fluctuations on the profit or loss to a minimum, Interest Rate Swaptransactions have been contracted with a counterparty.

These transactions concern cash flow hedges on the interest amounts on loans contracted, in which the hedging is done using IRS contracts for which the notional amounts correspond to the amounts of the loans. The fair value of these IRS contracts amounted to EUR 0.061 million as at 30 June 2012. The contractual expiry date is 31 March 2015, with quarterly fixed interest rate payment dates on the last day of March, June, September and December.

During the first six months of 2012, an amount of EUR 0.061 million was recognised in other comprehensive income.

10. Related parties

Except for transactions between consolidated companies, which are eliminated through the consolidation and the fees paid to managers with a key position, explained in the 2011 Remuneration Report, the transactions and outstanding balances for other related parties are negligible.

11. Exchange rates

The half-yearly financial statements were prepared using the following exchange rates:

C han ates urre ncy exc ge r	C losin te g ra		Ave rat rage e
	June 201 1	June 201 2	June 201 1	June 201 2
Swis s fra nc	1.20 71	1.20 30	1.26 58	1.20 33
Norw egia n kr one	7.78 75	7.53 30	7.79 96	7.55 74
Swe dish kro na	9.17 39	8.77 28	8.92 09	8.86 95
rica n do llar Ame	53 1.44	1.25 90	1.42 39	1.30 30

12.Statement from the Committee of Statutory Auditors on the limited review of the interim consolidated position of Spector Photo Group NV as at 30 June 2012

SPECTOR PHOTO GROUP NV Kwatrechtsteenweg 160 9230 WETTEREN

REPORT ON THE LIMITED REVIEW OF INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX-MONTHS PERIOD ENDED ON JUNE 30, 2012

Introduction

We have reviewed the accompanying interim consolidated balance sheet of Spector Photo Group as of June 30, 2012 and the related consolidated statements of income, changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this interim consolidated financial information in accordance with the International Financial Reporting Standards as approved by the European Union, applicable to the communication of interim financial information ("IAS 34"). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial information does not present fairly, in all material respects the consolidated financial position of the entity as at June 30, 2012, and of its financial performance and its cash flows for the six-month period then ended in accordance with the International Financial Reporting Standards as approved by the European Union, taking into accountthat the motivation of the valuation of the consolidation goodwill depends on the future positive developments of the markets on which the business plan is based.

Ghent, August 28, 2012

Statutory Auditor Statutory Auditor Represented by Represented by

Ria Verheyen Leen Defoer Registered auditor Registered auditor

PKF bedrijfsrevisoren BV CVBA Grant Thornton, Lippens, Rabaey BV CVBA

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13.Definitions

REBIT = Profit/loss (-) from operating activities before non-recurring items.

EBIT = Profit/loss (-) from operating activities (Earnings Before Interest and Tax).

REBITDA = Profit/loss (-) from operating activities before non-recurring items, adjusted for depreciation, amortisation, impairment and provisions.

EBITDA = Profit/loss (-) from operating activities adjusted for depreciation, amortisation, impairment and provisions (Earnings Before Interest, Tax, Depreciation and Amortisation). Profit/loss (-) before taxes, adjusted for non-cash items = Profit/loss (-) before taxes, adjusted for depreciation, amortisation, impairment, provisions, and financial non-cash items. Profit/loss (-) from continuing operations, adjusted for non-cash items = Profit/loss (-) after taxes, adjusted for depreciation, amortisation, impairment, provisions, financial noncash items and deferred taxes.

Share of the equity holders in the parent company in the cash flow for the financial year = Net profit/loss adjusted for depreciation, amortisation, impairment, provisions, financial non-cash items, deferred taxes and non-cash items from discontinued operations.

Net Financial debt = financial obligations less cash, cash equivalents and other non-current financial assets.

Financial calendar

25 Oc be 2 0 1 2 * to r	fte ha los a r e xc ng e c es	for f Tr d ing da hir d q 2 0 1 2 te t rte a u p ua r o
h 2 0 3 * 7 M 1 arc	be for ha e e xc ng e o p en s	2 0 2 A l re lts 1 nn ua su
8 Ma 2 0 1 3 y	be for ha e e xc ng e o p en s	Tr d ing da for fir f 2 0 1 3 te st rte a u p q ua r o
	2. 0 0 p .m	l m ing f s ha ho l de An t nu a ee o re rs
2 9 A 2 0 1 3 * t ug us	fte ha los a r e xc ng e c es	f-y f-y Ha l lts d ha l ea r r es u an ea r
		fin l re for 2 0 3 ia ort 1 an c p

*indicative dates

Spector Photo Group, profiel

Spector Photo Group is a diversified multimedia andphoto group with some 650 employees, operating in 14 European countries. Spector Photo Group's shares are traded on Euronext Brussels (ISIN BE0003663748, stock code SPEC).

Spector Photo Group has two core activities that are structured into two separate divisions:

The Retail Group, which contains the retailing of consumer electronics and multimedia products under the brand names Photo HallTM and Hifi InternationalTM. At the end of June 2012, the Retail Group had 94 shops, of which 91 were under the Group's own management, spread across Belgium and the Grand Duchy of Luxembourg. The group also operates two online shops.

The Retail Group's revenue represented 70% of the revenue from the group's continuing operations during the first half of 2012.

The Imaging Group processes digital and analogue photographs into photo prints, photo calendars, photo diaries, photo books, photos on canvas, photo gifts, etc., using smartphotoTM as its strategic brand for this purpose.

The Imaging Group's revenue represented 30% of the revenue from the group's continuing operations during the first half of 2012.

For additional information, please contact:

Stef De corte, CEO Tel. +32 9 365 98 10 E-mail: maggy.vandenstock@spector.beInternet: www.spectorphotogroup.com

APPENDIX 1: RECONCILIATION OF THE CONSOLIDATED FIGURES FOR THE FIRST HALF OF 2011 AS PUBLISHED ON AUGUST 30, 2011 AND THE AMENDED CONSOLIDATED FIGURES OVER THE FIRST HALF OF 2011

INCOME STATEMENT FOR THE PERIOD (IN € '000)

	Ju 2 0 1 1 ne	Ju 2 0 1 1 ne	f Ju 2 0 1 1 te ne a r
( '0 ) in € 0 0	b l is he d p u	ha c ng e	ha c ng e
Re ve nu e	9 3 7 5 3		9 3 7 5 3
O he ing inc t t r o p er om e a	2 1 0 7		2 1 0 7
C ha in inv f f in is he d ds & k in to ng es en ry o g oo wo r p ro g re ss	3 -		3 -
k fo d by d l l d W te ise i ta ise or p er rm e e n rp r a n ca p	2		2
Tr de ds ia ls d b les te a g oo ra m a an co ns um a w r ,	6 7 7 3 2 -		6 7 7 3 2 -
Em loy p ee e xp en se s	1 3 9 6 6 -		1 3 9 6 6 -
De ia ion d isa ion t t t p re c a n am or e xp en se s	1 9 8 5 -	5 5 8 -	2 5 4 3 -
O he ing t t r o p er a e xp en se s	2 1 4 7 5 -		2 1 4 7 5 -
f / los (- ) fro be fo Pr i t t ing t iv i t ies ing o s m op er a a c re n on -re cu rr ,
i te m s	2 0 9 8 -	8 5 5 -	2 6 5 5 -
fro No ing i te t ing t iv i t ies n- re cu rr m s m op er a a c	1 1 7 -		1 1 7 -
f / los (- ) fro Pr i t t ing t iv i t ies o s m op er a a c	2 2 1 4 -	8 5 5 -	2 7 7 2 -
l F ina ia inc nc om e	4 7 6		4 7 6
l c F ina ia ts nc os	1 3 4 0 -		1 3 4 0 -
fo F ina ia l c be ing i t-n t, te nc os e re n on -re cu m s rr	8 6 4 -		8 6 4 -
f l No ing ina ia i te n- re cu rr nc m s	2 0 1 1		2 0 1 1
F ina ia l r l t nc es u	1 1 4 7		8 6 4 -
f / los (- ) be fo be fo f l Pr i ing ina ia i t ta te o s re xe s, re n on -re cu nc m s rr	3 0 7 9 -	5 5 8 -	3 6 3 6 -
f i / los (- ) be fo Pr t ta o s re xe s	0 6 1 7 -	8 5 5 -	6 2 1 5 -
(- ) / In ta inc co m e x ex p en se om e	1 9 1 -	2 6	1 6 5 -
Pr f i / los (- ) fro inu ing iv i ies t t t t o s m co n a c	1 2 5 8 -	3 5 1 -	8 9 1 7 -
f / los (- ) fo he d Pr i t t io o s r p er	1 2 5 8 -	5 3 1 -	1 7 8 9 -
bu b le ho l de f he A t tr i ta to i ty t t c e q u rs o p ar en om p an y	2 8 1 5 -	3 5 1 -	8 9 1 7 -

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD (IN € '000)

( '0 ) in € 0 0	Ju 2 0 1 1 ne b l is he d p u	Ju 2 0 1 1 ne ha c ng e	Ju 2 0 1 1 ne fte ha a r c ng e
Pr f it / los (- ) fo he io d r t o s p er	1 2 5 8 -	5 3 1 -	1 7 8 9 -
Cu lat ion d j tra tm ts rre nc y ns a us en :	1 7 7 -	7 -	8 1 5 -
Ga ins / los (- ) is ing du ing he t se s ar ea r y r	1 7 7 -	7 -	1 8 5 -
Re las i f ica ion d j fo ins / los (- ) inc lu de d in f it o los t tm ts c s a us en r g a se s p ro s r
To l c he ive inc fo he io d a i bu b le ity ho l de f t he ta r t ttr ta to t om p re ns om e p er eq rs o p ar en u
co mp an y	1 4 3 6 -	5 3 8 -	1 9 7 3 -

COMPREHENSIVE INCOME FOR THE PERIOD PER SHARE

	2 0 Ju 1 1 ne	2 0 Ju 1 1 ne	2 0 Ju 1 1 ne
( in €, fo he be f s ha ) t r t ex ce p n um r o re s	b l is he d p u	ha c ng e	fte ha a r c ng e
be f s ha Nu m r o re s	3 6 6 9 0 1 5 5	3 6 6 9 0 1 5 5	3 6 6 9 0 1 5 5
be f s ha h d de d hts Nu it iv i ig m r o re s w n r	3 5 4 1 2 4 3 3	3 5 4 1 2 4 3 3	3 5 4 1 2 4 3 3
In fo he io d st ate nt r t co me me p er
Pr f it / los (- ) fro inu ing iv it ies nt ct o s m co a	-0 0 4	-0 0 1	-0 0 5
f / los (- ) fro d d o Pr it isc t inu at ion o s m on e p er s	0. 0 0	0. 0 0	0. 0 0
Pr f it / los (- ) fo he io d a i bu b le ity ho l de f t he r t ttr ta to t c o s p er eq u rs o p ar en om p an y	-0 0 4	-0 0 1	-0 0 5
he fo he d Co ive inc r t io mp re ns om e p er l c he ive inc fo he io d a i bu b le ity ho l de f t he To ta r t ttr ta to t om p re ns om e p er eq u rs o p ar en
co mp an y	-0 0 4	-0 0 2	-0 0 6

STATEMENT OF FINANCIAL POSITION AS AT THE END OF THE PERIOD (in € '000)

ASS ETS	(in € '0 00)	Jun e 2 011 pub lish ed	Jun e 2 011 cha nge	Jun e 2 011 aft cha er nge	(in € '0 EQ UIT Y A ND LIA BIL ITI ES	e 2 01 Jun 1 blis hed 00) pu	e 2 01 Jun 1 cha nge	e 2 01 Jun 1 aft cha er nge
					Tot al e qui ty
Non t as sets -cu rren					C api tal	64 19	4	64 194
Pro plan d e quip ty, t an nt per me		16 99 5		16 9	Res and tain ed nin gs/ ula ted los s (- ) erv es re ear ac cum	- 3 5 0 62	- 8 255	- 4 3 3 17
Goo dwi ll		18 7 26		95 18 7	har (-) Tre asu ry s es	- 2 422		- 2 422
ngib le a the r th dwi ll Inta ts o sse an goo		10 33 8	- 8 748	26 1 59 1	nsla ad Cu tra tion jus tme nts rre ncy	2 330	- 8 7	2 2 43
Oth t fin ial a ts er n on- cur ren anc sse		49		49
Lon g te ivab les rm rece		21 8		218	Sha reh old er's uity eq	29 04	0 - 8 342	20 698
Def d ta ts erre x a sse		7 8 15		7 8 15	Tot al e
Non t as sets -cu rren					qui ty	29 04	0 - 8 342	20 698
		54 14 1	- 8 748	45 393
					nt l iab ilitie Non -cu rre s
C nt a ts urre sse					fin Non nt i nte t-b ing ial obl iga tion -cu rre res ear anc s	20 68	3	20 683
					Em plo be nef it li abi litie yee s	5 26		526
for Ass ets held le sa		63 6		636	Non isio nt p -cu rre rov ns	103 1		03 1 1
Inv ent orie s		24 92 6		24 9 26	Def ed lia bilit ies tax err	99	6 - 4 06	590
Tra de and oth ivab les er r ece		13 13 5		13 135	nt l iab ilitie Non -cu rre s	23 30	8 06 - 4	22 902
Inv estm ent urit ies t sec - cu rren		3		3
ash d ca sh e alen C quiv ts an		6 1 37		6 1 37	nt l iab ilitie Cu rre s
C nt i tax ets urre nco me ass		24 2		242	Lia bilit ies hel d fo le r sa	6 53
nt a ts urre sse		45 08 0		45	Cu nt i t-b ing fin ial obl iga tion nte rre res ear anc s	21 53	2	653 21
C				080	de and her yab les Tra ot	20 50	7	532 20
					pa be nef it li abi litie Em	3 8 58		507 3 8
TOT AL ASS ETS		99 22 0	- 8 748	90 473	plo yee s			58
					Cu nt i tax lia bilit ies rre nco me	1 57		157
					Cu ion of vis ion nt p ort rre pro s	1 66		166

Current liabilities 46 873 46 873 TOTAL EQUITY AND LIABILITIES 99 220 - 8 748 90 473