Results 2005and

Outlook for 2006

Analysts Meeting29 March 2006

Inside New Television

Presentation

Netgem provides solutions and services in the new television anddigital convergence markets.

The operations are divided into two businesses:

Digital Terminals and Media Services

The Group markets its offers in France, the UK, Spain and theBenelux.

Key events andconsolidated key figures

2005

Key events 2005

� Significant growth of digital terminal sales (change 05/04: + 148%) thanks to the takeoff of Neuf Cegetel

� Launch of the bottom-of-the-range terminal distributed by Boulanger (iPlayer4600)

� Development of a 7-day Electronic Programme Guide for 9T

� Launch of the HitView9 service together with Médiamétrie and 9T

� Conclusion of a new agreement with an IPTV operator: Télé 2

� Agreement with TrustCapital concerning the reorganization of Media Services’control in France and in the UK as well as the discharging of certain liabilities

Consolidated IFRS key figures on 31 December 2005

4.20.5Debt (incl. shareholders’ current accounts)

5.96.2Net cash available on closing date

(4.1)(4.6)

(0.16)

+2.1+1.9

+0.06

Net resultof which Group’s share of net result

Group’s share of net result by share (in euros)

(4.7)+2.0Operating profit

(4.7)(0.7)Operating loss before non-current items

(3.0)+0.2EBITDA (*)

10.29.5

17.317.3

Revenue of which revenue on a like-for-like basis)

2004IFRS

2005IFRS

Data in millions of euros

(*) EBIT exclusive of depreciation

Operating result analysis

(3.0)+0.2EBITDA

1.70.9Increase in depreciation

(4.7)(0.7)Operating loss before non current items

(7.8)(6.0)Operating expenses

3.130%

5.331%

Gross MarginGross Margin in % of revenue

2004 IFRS2005 IFRSData in millions of euros

Operating contribution of the Digital Terminals

(3.6)(0.7)EBITDA

1.10.6Increase in depreciation

(4.7)(1.3)Operating loss before non current items

(5.3)(4.3)Operating expenses

0.611%

3.023%

Gross MarginGross Margin in % of revenue

5.213.1Revenue

2004 IFRS2005 IFRSData in millions of euros

Operating contribution of the Media Services

0.60.9EBITDA

0.60.3Increase in depreciation

-0.6Operating loss before non current items

(2.5)(1.7)Operating expenses

2.551%

2.355%

Gross MarginGross Margin in % of revenue

5.04.3

4.24.2

Revenueof which revenue on a like-for-like basis

2004 IFRS2005 IFRSData in millions of euros

Operating result and net resultformation

(4.1)(4.6)+0.5

2.11.90.2

Net resultGroup’s shareMinority share

+1.0-Net result of disposed operations

(5.1)2.1Net result of maintained operations

(0.4)0.1Financial result and tax

(4.7)2.0Operating profit

-2.7Net capital gains on perimeter changes

(4.7)(0.7)Operating loss before non current items

2004 IFRS2005 IFRSData in millions of euros

Consolidated IFRS balance sheet on 31 December 2005

13.615.2Total Liabilities

13.615.2Total Assets

6.17.7Current liabilities5.26.6Other current assets

3.50.4Non current liabilities5.96.2Cash and cash equivalents

4.07.1Total equity capital1.61.6Other non currentassets

(1.3)-Minority interests

5.37.1Equity capital, Group’s share0.90.8Goodwill

LIABILITIESASSETS

NET31/12/2004

NET31/12/2005

NET31/12/2004

NET31/12/2005

Data in millions of euros

Consolidated IFRS cash flow

(1.1)0.2Net change in cash position

--Exchange rate impact

1.30.1Cash flow from financial transactions

0.1(1.4)Cash flow from investment operations

(2.5)(4.2)1.7

1.5(0.3)1.9

Cash flow from business activitiesOf which cash flow financing capacity (1)Of which change in working capital requirements

2004IFRS

2005IFRS

Data in millions of euros

(*) Cash flow financing capacity before the cost of debt

Outlook for 2006

Perspectives 2006

Over 2006, the company anticipates a strong growth for thenetbox business which should increase from 90,000 terminals in 2005 up to 220-250,000 units in 2006. The sales will be boostedby the technological innovation created by the HD and the new formats (MPEG4 et Microsoft).

New investments in viewtime will be made with the initial objective to create new offers in synergy with Digital Terminalsenabling recurrent income and increased profitability on theoverall operations.

The exports will be rising in all target markets and we are expecting nice surprises in the UK.

Terminals in France: Triple Play

� The exceptional dynamism of the French ADSL market whichshould continue over 2006 places France as one of the prime markets for « triple play » offers.

� Three major actors, including Neuf Cegetel, currently dominate this market.

� Also, the apparition of new actors is inexorable. They presentan opportunity for Netgem to increase its partnerships.

9TV in the heart ofNeuf Cegetel’s strategy

For 6 euros per month, more than 60 national and international channels with all DTT channels, including TF1 and M6. Dozen of a la carte channels. Free terminal.

The possibility with the same card and remote control to subscribe to the offers of CanalSat, TPS and Canal+ le Bouquet. The richestADSL choice.

A 7-day Electronic Programme Guide with an exclusive HitView9 service. Acces to one’s voicemail. A Media Player service. A new Videoconferencing service.

30% of the ADSL clients subscribe to the 9TV offer (source: Neuf Cegetel on 31/12/05).

France: the DTT

� Netgem is present in the DTT market through the sales ofDTT/ADSL operators.

� Netgem’s presence in the « non-enriched » DTT marketwith low added value is limited to a bottom-of-the-rangeterminal targeting the « 2nd TV set ». It is distributed by Boulanger and more recently by Teleshopping (iPlayer4600).

� The arrival of the MPEG4, pay-TVs and the high definitionwill give Netgem the possibility to reassess its offer in thismarket and consider offers with higher added value.

The High Definition

� Netgem just announced its new high definition multimediaterminal (series 7000).

Build on the Group’s hybrid technology, it enables to target:• the IPTV market with DTT channels (terminal to rent).• the « enriched DTT » market (terminal on sale).

� It enables the reception of IPTV bouquets as well as free andpaying DTT (HD and SD) and gives access to new interactive services such as the VOD and TVOD.

� It can be equipped with an internal or external hard disk in order to offer digital video recorder (DVR) services.

Digital Terminals: global approach for the household

MultimediaHome Network

Media Services in France

Netgem intends to develop an independent Services unit targeting theMedias with the objective to help them as they are undergoing changes related to convergence and new networks.

In particular, the current activity related to the Viewtime Pro offer will bedeveloped according to the audience and usage of the new television.

The arrival of Marc Tessier confirms the Group’s new ambitions in thisfield. The investments are in progress. The offers will be presentedshortly.

The Group has been organized with the objective of a strong synergydevelopment between this business and Digital Terminals (container-contents synergies) in order to improve profitability and business recurrence.

Netgem in Spain

� Netgem is present in Spain with a B2B offer (« sales outlet digital animation ») which is distributed by theB2B sales division of Telefonica. The contract iscurrently under renegotiation.

� The burgeoning competition in the B2C ADSL marketcould present development opportunities for theGroup’s B2C offers.

Netgem in the Benelux

Netgem is present in Belgium with Mediaxim and in the Netherlandswith TV Times.

Since 1/1/06, Netgem holds 49% of both companies together with a financial group, Trust Capital.

Mediaxim has a strategic position in the Belgian market as a media data provider. This position was strengthened as the company recentlyentered into an exclusive long-term contract with the CIM (interprofessional media organization).

The execution of this contract requires, however, substantialinvestments over 2005 and 2006. They will be mainly taken care of by Trust. In the Netherlands, TV Times provides a centralized TV codingservice under a multi-annual contract.

Netgem in the UK

Media Services business should remain stable as far as theGroup enlargens its offer or its client base.

New opportunities arise for Digital Terminals after a difficultyear 2005. They are in particular related to « enriched DTT »offers (DTT + hard disk + TVOD services and VOD in a legalpeer-to-peer distribution mode on the Internet) distributed by ISPs or retailers.

Contacts

Thank you for your attention !

For further information, please contact

Gilles Aubagnac, VP Financegau@netgem.com+33 1 55 62 56 51

www.netgem.com

- Stock exchange survey (on 27 March 2006)- Recent press releases- Shareholding structure on 31/12/2005- Financial communication timescale 2006

Appendix

Inside New Television

Stock Exchange Survey

Since the beginning of

the week

Since the beginning of

the month

Previous month

Since the beginning of

the year

Previous year

+ High 3.22 3.22 2.18 3.22 1.69

+ Low 2.86 1.82 1.53 1.34 1.12

Change in % 11.31 62.37 19.02 138.64 16.81

Exchanged securities

991 855 6 500 373 3 268 945 14 173 355 23 615 681

N°of transactions

984 7 947 3 353 14 994 22 745

Listed in Euronext’s C section - Euronext Paris,

Next Economy, member of the FTSE index– code 9097000

ISIN : FR0004154060, Reuters : ETGM.PA,

Bloomberg : NTG FP

Shareholding structureon 31 December 2005

0.3%100,073Employees

-5,430Treasury shares

46.8%14,413,736Public

100.0%30,835,817Total

0.6%186,766Other directors and company representatives

2.4%746,900Family of the founders

49.9%15,382,912Managers subtotal

18.2%5,600,000Olivier Guillaumin

31.7%9,782,912J2H

% of capital and voting rights

Number of shares in circulation

on 31 December 2005

Financial communication timescale 2006

Q1 2006 revenue Week starting on 10 April 2006

Q2 2006 and H1 2006 revenue Week starting on 10 July 2006

SFAF meeting and H1 2006 statements Week starting on 25 September 2006

Q3 2006 revenue Week starting on 9 October 2006

Q4 2006 revenue and Week starting on 8 January 2007annual statements for 2006