Press Releases

Paris, February 10th 2009 – Dalet announced consolidated revenues (unaudited) for the year ended December 31, 2008 of €17.8 million, compared to €19.1 million in 2007. On a pro-forma basis, excluding the 2007 revenues related to the OpenMedia activity which was sold, revenues were up by 10%.
Revenues for the fourth quarter of 2008 were €4.7 million, compared to €7.5 million for Q4-07.
Gross margin (revenues minus costs of goods sold) for the year was €15.5 million vs. €16.4 million in 2007, gross margin rate increased slightly to 87%.

The sales mix improved as license revenues increased from 31% of sales to 37%, associated professional services went from 26% to 24%, resale of hardware dropped from 21% to 18%, recurring support revenues remained stable at 22% of revenues.

Sales growth in TV: +29%

Sales of Dalet products to television broadcasters increased by 29% to €12.5 million, from €9.7 million in 2007. They represent 70% of total sales, with sales in the News, HD production for sports, VOD and digital video archives markets.

Significant increase in US sales: +84%

In terms of geographical breakdown of revenues, Europe represented 53%, Americas 27%, Asia-Pacific 8%, Africa-Middle East 12%.
US sales increased sharply (+84% in Euros, +96% in US Dollars). This growth is mainly driven by sales on the US TV market. Among the recent contract wins with prestigious US customers are projects with entities from NBC Universal and NewsCorp Fox. They are among a growing number of broadcasters that are relying on Dalet solutions to enhance their content production capabilities while controlling costs.
Sales growth in the US compensated for the weak fourth quarter sales and order intake in Europe, due to the context of economic crisis. To account for the new market environment, Dalet has streamlined its European operations while reinforcing its US team.
Dalet’s order backlog at the beginning of 2009 is €11 million.

About Dalet Digital Media Systems

Dalet empowers broadcasters and content professionals to produce and manage audio and video content in a digital, multi-platform world.
Dalet media asset management (MAM) software streamlines production costs and increases revenue opportunities by simplifying the distribution of rich-media assets across both interactive and traditional platforms.
Dalet software is used around the world by thousands of content producers including major public broadcasters (BBC, CBC, DR, DW, NPR, RFI, RSR, Russia Today, VOA, WDR), commercial networks and operators (ART, eTV, Grupo Prisa, Orange, Prime Television, The Press Association, Warner Bros., XM Satellite…) and government organizations (Queensland JAG, Canadian House of Commons, The European Commission).

Dalet is traded on the EURONEXT-NYSE stock exchange (Eurolist C-Paris): ISIN: FR0000076176, Bloomberg DLT:FP, Reuters: DALE.PA

Number of outstanding shares: 17 526 364

Contact Dalet: +33 1 41 27 67 00

For more information on Dalet, visit www.dalet.com