Dear Shareholders,

The strongest sport emotions in 2008 were without any doubt those images that came to us from the two major events of last summer: the UEFA EURO2008 TM tourmament (European football championship) in Austria and Switzerland, and the Summer Olympics in Beijing. We are proud of having contributed to both events, while demonstrating successfully new production processes, quicker and more efficient.

This sporting year resulted, in financial terms, in new records for EVS: sales up by 16.9% to EUR 110.7 million, and operating margin of 61.8% of turnover, and all this despite a large increase in operating costs. The choice of strengthening our teams, in particular the R&D and the teams on the field, was made to cope with the growth of the company. In this regard, we hired 45 people in 12 months and the group now counts more than 235 employees, including one quarter in our 12 foreign offices. Today, sport remains our most important entry point in the TV stations, because our products are particularly adapted for this kind of production. The efforts of our teams also resulted in a considerable growth in sales in the studios in 2008 (+43.5%).

The good results in 2008 and the company’s confidence in its future prospects and its objectives allow to optimize the shareholders return through the distribution of dividends and/or stock repurchase. The Board of Directors will propose to the Ordinary General Meeting to increase the dividend by 8.8% to a total gross dividend of EUR 2.48 per share (including the interim dividend of EUR 1.00 distributed in November 2008).

2009 presents many challenges. We do not control the difficult economic environment, but we are convinced that this year will create nice opportunities. The very healthy financial position of the company is an important asset. EVS will continue to invest in the development of innovative solutions, the quality of its staff and improvements in the service provided to our customers. EVS should therefore emerge from the crisis in an even stronger position.

Finally, 2009 will be another year of transition, with no major sporting events. This year will enable EVS to get ready for 2010, with 4 major events, most importantly the Winter Olympics in Vancouver (Canada) and the Soccer World Cup in South Africa.

EVS and the other financial partners continue to support XDC’s rollout efforts, which is still the leader on the European digital cinema market.

The Board of Directors and the Management of EVS have full confidence in the future of the company. The efforts made in recent years must be continued and supported in order to prepare us for further years of growth. All this is only possible thanks to those who play an active part in the life of our company: our employees, our customers, our suppliers and our shareholders. We would like to thank them for their confidence and their encouragements.

Michel DELLOYE, Chairman of the Board of Directors & Pierre L'HOEST, Managing Director & CEO