H1 2008 Results

August 28, 2008

3. H1 2008 Financial Performance

1. Presentation

4. FY 2008 and Medium-Term Outlook

2. H1 2008 Review of Operations

3

Hi-Media – H1 2008 in line with development plan

Effective resilience in an increasingly tight advertising market:

– Revenues up 24% year-on-year

Results in line with the development plan:

– Gross margin maintained at the high level of 40%

– Fotolog reached break-even

– Net rebound in profitability expected in H2 2008

New milestones towards integrated Internet media group

– In two years, the audience of the Group’s websites has increased almost six-fold, to 30 millions unique users

– Advertising offering further strengthened: with 65 million unique users across the world

– Acquisition of Mobile Trend

Full year 2008 guidance and medium-term EBIT margin objective of 20% confirmed

While profits for the first half of the year may not be representative of the year as a whole, they validate the strategy adopted more than two years ago, reflect the quality of the business model and demonstrate Hi-Media’s effective resilience in uncertain advertising markets.

4

Hi-Media – An Integrated Online Media Group

One of the world’s largest online media groups

– 30 million unique visitors to Hi-Media websites, of which 16 millions from Europe

Europe’s 3rd largest ad network and 1st micro-payments network

International footprint

– France, Germany, Belgium, Sweden, Spain, Portugal, USA, Brazil, China

386 employees

Duplication of the current business model (online advertising, publishing and micro-payment) in the mobile Internet world with the integration of Mobile Trend

Board of Directors strengthened

2008: a transition year towards an integrated media group model

maintaining high growth rate : FY 2008 guidance € 140M+; +35%

and investing to launch new websites and services (e-wallet, local advertising)

Hi-Media combines one of the world’s largest Internet publishing platforms with a monetization engine of advertising and micro payment networks that are European leaders. This unique integrated and diversified model allows the Group to achieve high growth rates even in the current maturing market.

¹ Before stock based compensation

HM Services65 million UV*

+220,000 website partners

5

Hi-Media – An Integrated Model

Hi-Media is a major online publisher with integrated monetization tools for proprietary and third party audiences

$

$ $

3rd largest ad network in

Europe

1st micro-payment network

in Europe

HM Publishing30 million UV*

Proprietary and third parties audience monetization

* UV = unique visitors per month

Entertainment

Women

News & Sport

6

Hi-Media – A Balanced, Diversified and Resilient Business Model

Online Advertising

B-to-B activity

Clients: Companies (advertisers)

Number of campaigns per month:500 to 1,000

European growth CAGR ‘08-12¹: 12%

Cyclical activity

50% of H1 2008 consolidated revenues

Hi-Media was the first among most of its peers to develop a micro-payment activity as a way to diversify its revenue stream and reduce exposure to online advertising.

Micro-payment platform

B-to-C activity

Clients: Individuals (web / mobile phone users)

Number of transactions per month:4 to 5 millions

European growth CAGR ‘08-’12¹: 24%

Contracyclical activity

50% of H1 2008 consolidated revenues

¹ Source: Jupiter Reasearch, December 2007

3. H1 2008 Financial Performance

1. Presentation

4. Full Year 2008 and Medium-Term Outlook

2. H1 2008 Review of Operations

Hi-Media Publishing

9

HM Publishing – H1 2008 Highlights

Entertainment– Fotolog European versions –

France, Spain, Germany– Programme-tv.be - Belgium– Dastvprogram.de - Germany– Magicrpm.com - France

Women– Actustar.be – Belgium– Mujeractual.com - Spain

News– Monsondage.com - France– Contre-feux.com - France– Sport.fr - France– Rue89.com – France– Vivat.be - Belgium

Consistent with its strategy, Hi-Media has actively developed its publishing activity. These developments, in-house launches and acquisitions, are focused on three main verticals and three strategic countries

Entertainment

Women

News

France Spain Germany

HM Publishing – H1 2008 developments

Source: Hi-Media

30 million unique and non-duplicated users, with rapidly growing European audience at 16 million unique users

Worldwide traffic around 5 billion page views per month

2,9

3,84,2

4,95,3

5,8

Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08

10

Fotolog – One year later, Fotolog is a success

Rapidly-growing, highly engaged audience:– Audience footprint:

33% in Europe52 % in South America13 % in North America

Since its acquisition last August, Fotolog has added nearly 10 million new members, up to more than 20 millions

Mobile version recently launched thanks to Mobile Trend ( m.fotolog.com ): 3.5 million page impressions in July ‘08, with August showing 30% increase, despite holyday season in Europe

One year after the announcement of the acquisition, Fotolog has more than doubled its member base passing the 20 million members mark and has reached break-even

Source: Comscore – June 2008

Fotolog European Sustainable Growth ( in million VU)

Source: Comscore, June 2008

+100%

Number of unique visitors per month

75%50% 42% 37%

6%27%

27% 39%

17% 15% 24% 24%2% 8% 7%

Q3 2007 Q4 2007 Q1 2008 Q2 2008

Google Display Micro-payment Others

11

Fotolog – Success in monetization driven by Hi-Media Business model

Micro-payment revenue stream – Gold cam member x4 since Jan ‘08– New countries opening :

June ‘08: Argentina(conversion rate >1.5%)July ‘08: MexicoAugust ‘08: ChileComing soon: Brazil

Huge increase on display ad revenue, even stronger where managed by Hi-Media subsidiaries

Google revenues are below schedule

Revenue show strong growth on micro-payment and display

Source: Comscore – June 2008

Fotolog – Evolution of Revenue Streams

Source: Hi-Media

12 742 13 72924 177

34 768 36 117 36 361 43 560 46 213

78 999

122 482

oct-07

nov-07

déc-07

janv-08

févr-08

mars-08

avr-08

mai-08

juin-08

juil-08

Fotolog – Paying Members Evolution

Source: Hi-Media

12

HM Publishing – Performance H1 2008

Strong revenue growth demonstrate Hi-Media capacity to generate audience and monetize it

It validates uniqueness of its integrated business model

Integration of Mobile Trend opens new area of growth and development potential by going mobile

Confirms guidance: publishing should represent 10% of total consolidated revenue and 20% of the total consolidated gross margin for fiscal 2008

Revenue split reflects yet to be generated micro-payment potential

In June ’08, micro-payment was up to 29 % of Publishing revenue

Rapid growth in share of total revenues generated by the Group’s websites, which now represent 9.6% of Hi-Media’s consolidated revenues and 24% of gross profits

Revenue Share of Hi-Media’s Websites (in million of euros]

Source: Hi-Media

H1 07 vs H1 08: +171%

HM Publishing –Evolution of Revenue Streams

Source: Hi-Media

1,0

1,3 1,2

2,5 2,5

3,3

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008

23% 13% 12% 11%

65% 76% 74% 69%

8% 7% 10% 18%4% 3% 3% 2%

Q3 2007 Q4 2007 Q1 2008 Q2 2008

Google Display Micro-payment Others

Hi-Media Services – Online Advertising

14

HM Advertising - Go to Market Strategy: Dedicated Network Verticals Strong verticalisation of a thematic can bring value as it offers advertisers massive outreach to one of their core targets

Due to the fragmentation of audience, increasing targeting requirements can only be achieved by bringing together owned-and-operated websites with websites in the same vertical

This strategy is the only one able to assess the requirement of the advertisers: power and segmentation

Analysts expect the market to return to higher growth rate by mid 2009, with full impact in 2010

HM Ad Network – Key Verticals Ranking (M VU)

Source: Nielsen Net Rating, May 2008

Entertainment

#1 TF1 Network 11.2

#2 Hi-Media 9.4

#3 Youtube Network 9.4

Women

#1 Hi-Media 5.0

#2 Doctissimo Network 3.8

#3 Aufeminin Network 3.6

Portals

#1 MSN Network 19.3

#2 Hi-Media 14.6

#3 Free Network 14.4

News & Sport

#1 Hi-Media 5.7

#2 Lequipe Network 4.6

#3 LeMonde Network 3.0

15

HM Advertising - Key Success Factors in a Slowdown: Reach and Segmentation

As reach and segmentation improve, value of good traffic should rise

Reach 72% 33% 60% 45% 40%72%

Portaldemoda.pt

France Spain PortugalBelgiumGermany Sweden

Finance / Services

Travel / Entertainment

Info / News

Communities

Women Portaldemoda.pt

France Spain PortugalBelgiumGermany Sweden

Finance / Services

Travel /

Info / News

Communities

Women

16

HM Advertising: Untapped Growth Potential – Social Networks42% of the Internet users in Europe now communicate through social networking sites (increasing to 66% amongst 16-24 years olds)

42% of internet users now regularly communicate via social networking sites

The popularity of social media and their large number of page impressions will create rapid growth in display ad inventory over the next five years

The growth of display ad market partly relies on the ability of ad networks to improve the value of this inventory by effectively leveraging new targeting and optimization technologies

Social network / Community Tools – Reach over Time

Source: Universal McCann, March 2008

Social Network Penetration Rate

Source: Universal McCann, March 2008

16,9

26,030,4

H12006 H12007 H12008

17

HM Advertising – H1 2008 Performance

Double-digit revenue growth despite market slowdown

Hi-Media continue to outperform the market (estimated at c.10% growth during H1 ‘08)

Growth opportunities with mobile advertising and direct marketing (acquisition of Mobile Trend)

Hi-Media’s ad network revenues grew by 17% compared to H1 2007, and is out-performing the overall European ad market. The Group unique positioning enables to resist the slowdown in this difficult times.

HM Services – Evolution of Online Ad Revenues (in €m)

Source: Hi-Media

+17%

Hi-Media Services – Micro-payments

19

.

Turf / press /

classifiedads

Gaming Role gamesMMORPG

LogosRingto

nes

Astrology/ SMS

warning / audiotel

2001 2008

Innovation

Development in progress: downloading of content with our partner Nexway, provider of major brands such as Fnac. AllopassTM is currently being used on

Social networks

Downloadingof music /

VOD

?

Since 2001, micro-payment growth has been driven by ongoing launch of new premium services by an increasing number of websites

HM Micro-payment – A constantly innovating market

20

Micro-payment is benefiting from the increasing number of websites or off-line media implementing new premium services

20

HM Micro-payment – Any service, any website, any vertical

Classified adswebsite, users can

pay by Allopass

Marseille area newspaper offering

last 2 weeks editions

News / Classified

Famous Julien Courbet TV show : advises canbe purchased on line

Femmes

Dating websitesponsoring Secret

Story TV Show invoicing premium

membership

Communautés

On line version of the magazine can bepurchased on line,

paying psycho tests

Education book editor offering exams’ subjects

AOL portal users canpurchase SMS credit online

Finance and services

On of the biggestMMORPG selling

subscription

Show on France 2 TV offeringto purchase on line rights to

participate to a game

Entertainment

21

Growth driven by increasing uptake of Allopass™ solution by websites and an expanding international activities

Growth should accelerate in H2 thanks to :– International development (new payment

solution contracts in Argentina and Chile, implementation of Allopass on Fotolog)

– New assignments including advertising partnership, among which Dofus and Prizee

– Higher penetration of SMS market provided by integration of Mobile Trend

Beginning of H2 is promising : – In Jan. ’08, average number of transaction

(Allopass only) per day was c. 89,000 +40% growth vs Jan 07 (c. 63,000)

– In Aug. ’08, average number of transaction per day was c. 120,000: +82% growthvs Aug. ‘07

Allopass™ posted growth of 32% in H1 2008, well above the market’s growth rate

HM Micro-payment – Performance H1 2008

HM Services – Evolution of Micro-payments Revenues (in €m)

Source: Hi-Media

+32%

15,1

23,1

30,4

H1 2006 H1 2007 H1 2008

3. H1 2008 Financial Performance

1. Presentation

4. Full Year 2008 and Medium-Term Outlook

2. H1 2008 Review of Operations

16,926,0

30,4

15,1

23,1

30,4

H1 2006 H1 2007 H1 2008Online Advertising Micro-payment

23

H1 2008 Performance – Double-Digit Revenue Growth and High Gross marginAll of Hi-Media’s lines of business contributed to continued growth. Consolidated gross margin was maintained at high level of 40%

Revenue Growth

Source: Hi-Media

Gross margin

Source: Hi-Media

€32.0 m €49.1 m €60.8 m

+54%

+24%

30%25%

49%

55%

40% 40%

MP H1-07

MP H1-08

Adv H1-07

Adv H1-08

ConsoH1-07

ConsoH1-08

24

H1 2008 Performance – Cost structure in line with a year of investment

The increase in operating costs was mainly generated by integration of new companies and launching of new activities, among which new websites development

Integration of Fotolog and Mobile Trend as well as launching of new activities such as local advertising in France and ad network in Spain explain nearly half of the increase in costs

Costs for creation of new websites, development of those launched at the end of ‘07 and e-wallet should be around 3.5 M on 2008, compared with 5M initial plan.

Balance of cost increase can be attributed to the strengthening of Hi-Media’s organization (mainly duplication of Micro-payment platform) and the adoption of marketing tools in line with market standards and best practices

in millions of euros H1 2007 H1 2008 variationof which

new activities

of which new

sites and e-wallet

adjusted variation

Adj. change

%

Payroll charges 7.7 10.4 2,6 0.8 0.9 0.9 11%

Other operating charges taxes 4.2 7.4 3.2 1.6 0.6 1.0 23%

D&A 0.6 1.5 0.9 0.5 0.2 0.3 43%

Total operating costs 12.5 19.3 6.7 2.9 1.7 2.1 17%

25

H1 2008 Performance: maintaining high growth and investing to build an integrated media groupTurnover and gross profit continue to show double digit growth in a depressed market while the cost structure increased consequently to the investment strategy decided by the Group for 2008.

Income statement in million euros

Source: Hi-Media

H1 2007 H1 2008 % change In million euros reported reported H1 2007 reported

Revenues 49.0 60.8 24.1%Gross Profit 19.6 24.3 23.9%Gross margin in % 40.0% 39.9%Payroll Charges -7.7 -10.4 33.9%Other operating charges, taxes -4.2 -7.4 76.1%D&A -0.6 -1.5 146.1%

Operating profit(before stock based compensation)

7.0 5.0 -28.7%

Operating margin 14.4% 8.3%Stock based compensation -2.0 -2.2 12.0%Operating profit 5.1 2.8 -44.5%Financial result -0.1 -0.7 na

Earnings of the consolidated companies 5.0 2.1 -58.3%Income taxes 0.7 -1.1 na

Consolidated net income 5.7 1.0 -83.3%

¹Before stock based compensations

19.138.511.7

35.149.8

30.7

140.7117.0

ASSETS LIABILITIES

221.3m 221.3m

26

H1 2008 Performance – Solid Financial StructureHi-Media has a solid balance sheet which is going to continue to support growth strategy through organic and external growth.

Balance Sheet as of June 30, 2008 (in millions of euros)

Source: Hi-Media

Fixed assets

Accounts receivable

Other assetsCash and equivalents

Shareholders equity

Long Term Financial debt

Accounts payable

Other liabilities

27

H1 2008 Performance – Healthy Cash Position

H1 2008 change in cash (in millions of euros)

9.4

18.8

Cash fromoperationsbefore WC

Income taxand financial

interest

Change in debt

Acquisitionsand

investments

Changein working

capital

9.4

Share buyback and others

18.8

-15.221.4-2.41.36.5In €m

-2.2

June 30, 2008January 1, 2008

3. H1 2008 Financial Performance

1. Presentation

4. Full Year 2008 and Medium-Term Outlook

2. H1 2008 Review of Operations

29

Advertising market: longer-term potential unaffected by short-term turbulenceA sluggish market for the next 12 months. Main players like Hi-Media should absorb all the growth

A short-term downturn, a long-term high growth avenue– Market growth should be limited for the next

12 month and should only benefit to leaders– 2010 and 2011 should show high growth

again

Hi Media is in a great position to resist and leapfrog competition– More than 1,000 advertisers across all

economic segment and target groups (youth, women, executives, B-to-B etc…)

– Leadership position in France, Sweden, Portugal

– Rapidly expanding market share in Spain and Belgium towards leadership

– Experienced and senior management team in Germany

Double-digit growth:– +17% in H1 2008 (+24% in Q1 and +12% in

Q2)– +10%+ in H2 2008 expected

“ Online advertising spend is expected grow at a rapid

rate, with 90 percent of marketers saying they will

continue to increase their direct online advertising

budgets - and 15 percent saying they will "radically"

increase online ad spend. Moreover, some 78 % of

marketers say they will increase their social media

spend; 74 percent say they will increase their

direct email spend; and 65 percent say they will

increase their mobile texting/SMS spend.”

“Online ad spend is forecast to slow a bit in 2009 as

well, growing less than 15% YOY, before

beginning a significant rebound starting in 2010

through 2012.”

Emarketer, August 2008

Eloqua market survey May 2008

30

Micro-payment: time for pay-offStrong growth potential, in the short as well as in the long-term

New projects start to pay off:– New technical platform for Allopass released in June 2008 (one-year development)– Latin American potential started to bear fruit in Q2 2008 ( 6*month negotiations with telcos)– Key references joined Hi-Media and create a new client stream on Massively Multiplayer Online Role Playing

Game (MMORPG): Dofus and Prizee

Substantial growth expected in H2 2008 – Allopass records more than 5M transaction a month– c. 85% expected in H2 2008

Growth will remain extremely strong in 2009 and in the longer term:– Publishers can’t rely on strong ad revenues growth anymore– Allopass™ means of payment get more and more diversified

– Premium SMS with Mobile trend– E-wallet with imminent Hi Pay launch

31

Publishing: the engine is runningMain investments and development costs are now behind. Success is starting to show up

Main developments were completed late 2007 and in H1 2008– Acquiring competences and building the organization: 100 people New York-Paris-Aurillac– Development and launch of 5 websites– Acquisition and redesign of 1 website– Development of www.gameonly.com to be launched in September 2008

Fewer new projects on H2 2008:– Launch of www.gameonly.com in France (september) and in Germany (december)– Redesign of mujeractual in Spain

32

Publishing: the engine is runningWeb sites follow a virtuous path towards increasing audience and profitability

-500

0%

500 1 000 1 500 3 000 15 000

-100%

-50%

50%

100%

Actustar

metv

Sport.fr

Program

Psychonet

Blogorama

Jeuxvideo

20 000

Fotolog

Toutleciné

ContrefeuxMonsondage

Profitability

Audience

33

Medium-term strategic outlook: we sowed the seed, let’s grow the crop2 years were necessary to transition the business model. 2009 and beyond will be focused on reaping the profits

2006 and 2007 proved the operational leverage of the model– 2006 revenues +189% ; EBIT* + 380%– 2007 revenues + 45% ; EBIT* + 109%

2007- 2008 demonstrate investment and diversification ability

2008 shows marked resilience to the ad market downturn– Growth expected to accelerate in H2– objectives of +35% growth and revenues in excess of 140 M € confirmed

2009-2012 will see return to operational leverage– 2009 will be focused on optimization and focus on core assets– Objective is to generate more than 20% EBIT* margin by 2012– Selective acquisitions may boost integrated media group features

¹Before stock based compensations