Press Release

February 13, 2008

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For Immediate Release

Revenues Q4-2007: €7.5 MILLION, +48%; 2007 Revenues: €19 MILLION, +9%

Success of new products: Dalet consolidates its leadership in the Media Asset Management market

(Euro millions)Q4-2007*Q4-2006Variation2007*2006Variation
Revenues 7.55.1+48%19.0 17.5+9%
Gross margin 6.24.6+36%16.315.9+3%
Gross margin rate83%90%86% 91%

(*) unaudited

Paris, France – February 13, 2008 – Dalet announced record revenues for the fourth quarter of 2007 (unaudited) of €7.5 million, compared to €5.1 million for Q4-06 (+48%). The gross margin (revenues minus cost of goods sold) for the quarter increased by 36%, from €4.6 million to €6.2 million.

For the year ended December 31, 2007, Dalet consolidated revenues (unaudited) were €19.0 million, a 9% increase with respect to €17.5 million in 2006, with a gross margin of €16.3 million compared to €15.9 in 2006 (+3%).

Total order intake over the year increased by 37% from €11.9 million in 2006 to €16.3 million for 2007.

Significant increase in US sales

In terms of geographical breakdown of revenues, Europe represented 67%, Americas 15%, Africa-Middle East 12% and Asia-Pacific 6%. US sales increased sharply, in spite of the adverse effect of the dollar to euro exchange rate fluctuations (+42% in Euros, +55% in US Dollars).

Sales growth for new product lines for digital television

(Euro millions)20072006%
Radio6.47.4-14%
OpenMedia product (sold)2.9 4.3 -33%
TV and digital video 9.7 5.8 +68%
Total19.017.5

As reported on 1/28/2008, Dalet sold the assets of its German subsidiary related to the OpenMedia product. OpenMedia sales had decreased by 33% from €4.3 million in 2006 to €2.9 million in 2007. Whereas OpenMedia sales declined, sales of new Dalet products for television broadcasters steadily increased, with revenues growing by 68% from €5.8 million in 2006 to €9.7 million in 2007.

Sales of digital solutions for radio decreased by 14%, from €7.4 million to €6.4 million, reflecting the general trend of this mature market. Dalet believes nonetheless that its unique ability to provide unified solutions for radio and television will be a compelling selling proposition in coming years for its radio customers as they transition to unified multimedia production environments combining radio, TV and web delivery channels.

Dalet solidifies its position as a leading supplier of MAM solutions In 2006, Dalet had registered its first significant contract wins on the Media Asset Management (MAM) market in Europe. Dalet MAM software empowers content producers to streamline their production costs and increase their revenue opportunities by simplifying the distribution of rich-media assets across both interactive and traditional platforms.

In 2007, Dalet added key references with contract wins at BBC World Service, and system deployments at CBS Sports, Channel One Russia, The Press Association, Warner Bros. and Westdeutscher Rundfunk (WDR). Now fully focused on its core product offerings, Dalet is ideally placed to grow and move along with the MAM market of which it has become a key player.

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 (ART, eTV, Grupo Prisa, 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 stock exchange (Eurolist C): ISIN: FR0000076176, Bloomberg DLT:FP, Reuters: DALE.PA

Number of outstanding shares: 17 526 364

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

Contact Dalet: +33 1 41 27 67 00

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