I – Continuing strong organic growth: +72%

For the beginning of the year, Hi-Media managed to reconcile external and organic growth. Actaully, along with its 3 acquisitions carried out in the last nine months, the company also consolidated its management and control structures, and concentrated on continuing its operational efforts.

This gave the company the full benefit of market growth and of the impetus created by its policy aimed at diversification and consolidation of its market.

• The advertising network continued to expand its offerings by concluding some new contracts, for instance, in connection with its BtoB offer with décideur.com, its ecommerce offer and ebuyclub.fr.
  In this way the Hi Media Network enabled advertisers to target more than 13.8 million people
  (source: Nielsen Netratings) in March 2006.
  From the organic viewpoint, this business jumped by 40% in the first quarter of the year, with particularly sustained growth in France and in Germany.

• After a year devoted to repositioning its offerings and working on margins, the direct marketing sector has gotten back to a very high level of organic growth: 138% for the three months of 2006.

• The best performance has been posted by the micro-payment sector, with a sales increase of 203% for the first quarter of the year thanks to the sustained development of the market and to the dynamic approach displayed by the Hi-Media teams. This resulted in conclusion of some new partnerships, particularly with the Internet sites of RTL, M6 and Le Figaro newspaper.

All this indicates that external growth did not come at the expense of the current operations market, but - on the contrary - quickly produced some commercial synergies. In the first quarter of 2006, Hi-Media recorded one of its highest organic growth rates in 18 months.

II – Some quickly consolidated acquisitions leading to faster development (+ 196%)

The advertising network activities were enriched by the contributions of Numériland, which was acquired in June 2005, with the integration of the main contracts into the Hi‑Media Network commercial offers and, in addition, a strengthening of the affiliation activities that had been launched in-house a few months earlier. By including Numériland in the consolidation perimeter, the advertising network sector produced 6 million euros in sales (46% of consolidated sales), up 62%. As a specialist in audience generation thanks to search engines, Publicityweb - which was acquired in October 2005 - was attached to the direct marketing sector, giving it the benefit of an additional stimulus to its offerings. Taking the Publicityweb business volume into account, the direct marketing sector represents 1.3 million euros in sales (10% of consolidated sales), a 208% jump year on year. Finally, Eurovox group, acquisition of which was announced on 8 February 2006, has been attached to the micro-payment sector. The teams were integrated during the past quarter, and the Eurovox sales were consolidated for two months starting on 1 February 2006. Including Eurovox in the consolidation perimeter, the micro-payment sector's sales come to 5.7 million euros (44% of consolidated sales).

Hi-Media, encouraged by these good results, plans to continue its external growth policy and develop a publishing sector, which will capitalise on expertise in terms of development, services and a dominantly community audience. This approach is aimed, on one hand, at strengthening the group's services offerings, and on the other hand at deriving the greatest possible benefit from new growth sources indicated by the increasing role played by community tools and participative applications. The launch of a blogs platform, the acquisition of actustar.com and the agreement-in-principle bearing on acquisition of jeuxvideo.com represent successive moves toward this goal. The combined shareholders' meeting held on April 20 empowered the Hi-Media Board of Directors to carry out a capital increase aimed at financing such developments.