HI-MEDIA : 2007 semiannual earnings

I – 2007: The operational leverage effect applies

With 49 million euros in sales compared to 32 million for the first half of 2006, the group's activity growth rate reaches 53%, showing the group's ability to combine organic growth and integration of acquired companies.

On a proforma basis, sales are up by 28% and the gross margin by 32%, showing that the development of our activities did not harm our margins. The latter stabilise at very satisfactory levels, at 40% of revenue. At the same time, the operating costs increased at a markedly lower rate (15%), in spite of the efforts made in connection with structuring the group's teams (management, reporting and marketing, in particular). The operating profit exceeds 7 million euros[1], proof of the strong leverage effect characterising the Hi-Media business model.

The stock option plans and free shares posted to charges in accordance with the IFRS standards (but not entailing any cash outflow) amount to 2 million euros. Tax proceeds coming to 0.7 million euros were recorded, in accordance with the rules regarding the group's capitalisation of tax losses carried over, and for the fourth straight financial year.

II – Confirmation of the objectives for the financial year as a whole and continued external growth

The synergies between the historical and the acquired activities as well as the group's organisation installed at the beginning of the year enable us to reconcile improved profitability and external growth, as was shown during this first half. Hence the group management confirms its objective of more than 100 million euros in sales and a current operating profit of 15 million for financial year 2007 as a whole, compared with 7.2 million in 2006. The significant increase in these results reflects not only the leverage effect connected with the group's Service activities, but also the positive impact of the positioning in publishing, which is characterised by higher margins.

In accordance with that same strategic logic, on 17 August 2007 Hi-Media signed a memorandum of understanding for acquisition of the company Fotolog Inc. The net price for all Fotolog Inc shares would be 65.8 million euros, divided into an issue of 7 414 852 Hi Media shares (valued at 6.81€) and a cash payment of 15.3 million euros. The deal will have to be approved by Hi-Media shareholders at an extraordinary meeting before the end of November.

From 10 million at the time of announcement of the project, the number of members now exceeds 11 million, illustrating the strength of the viral phenomenon supporting the growth of the audience of the site, which now contains more than 300 million photos. Thus that deal would group one of the world's largest audiences and the specialist in generating online revenue. This means that Hi-Media would structure one of the largest online networks for distribution of advertising and of content in the world.

With available cash amounting to more than 11 million euros on June 30 - after payment in the first half of an earn out price for Medianet company and of the dividend - and a debt capacity of more than 30 million euros not yet used, the group has the resources needed for continuing its external growth.

The company will release information on quarterly sales on 23 October 2007 after stock market.

About Hi-Media :

Hi-Media is a publisher of Internet sites and is a company offering specialised services in connection with Internet advertising and e-commerce, present in 8 countries. The company is the third-ranking independent interactive advertising network agency in Europe and is also ranking number one among the French providers of electronic micro-payment solutions. The company has also developed a complete range of tools and services in the direct marketing field. Hi-Media is listed on the Euronext Paris Eurolist B, and belongs to the SBF 250, CAC IT and CAC Small 90 indices.

ISIN Code: FR0000075988.

Investor contact

Cyril Zimmermann

President and Chief Executive Officer

David Bernard

Chief Operating Officer – Corporate Finance

Tel : (33) 1 73 03 89 00

Fax : (33) 1 73 03 89 54

E-mail : [email protected]

Site : www.hi-media.com

[1] : before taking the cost of stock options and free shares into account