9 reflecting record mobile sales for theGroup

Founded in 1949 as a carhop restaurant, todayit has grown to include Eat'n Park Restaurants, Parkhurst Dining Services -the company's contract dining division, providing contract dining services tobusinesses, universities, and cultural centers, and CURA Hospitality -providing contract dining and management service for senior livingcommunities.SOURCEEatn ParkKevin O'Connell of Eat'n Park Restaurants, 1-412-461-2000; or Brian Tedeschi,Mobile: 1-412-638-5981, or Kirstian Jacobs, both of Think Communications,Inc., both at 1-412-281-9228. A 52.5 increase in revenue during the 4th quarter of 2008PARIS(Business Wire)Regulatory News: ModeLabs Group (Paris:MDL) has achieved an excellent performance during the 4thquarter of 2008 with a like for like increase of 52.5 in its revenue at 67.8mcompared with 44.4m for the 4th quarter of 2007. Unaudited figures in millions of euro Q4 2008Q4 2007Change 31-Dec-0831-Dec-07Change Design4.86.2-22.6 25.3 29.0 -12.8 Distribution63.0 38.3 64.6162.4161.30.7 Like for like total 67.8 44.4 52.5187.7190.3-1.4 Phonix03.3NA08.5NA ModeLabs Technologies Q403.1NA03.1NATotal 67.8 50.8 33.3187.7202.0-7.1The like for like total excludes Phonix, deconsolidated with effect from 1st January 2008, and ModeLabs Technologies, deconsolidated with effect from 1st October 2008. Design:Non-representative manufacturing activityModeLabs Manufactures activity during 2008 has not been representative of itsgrowth potential: in accordance with its policy of investment, during the 4thquarter the Group only launched a single LifeStyle mobile (the MTV 3.4) comparedwith two (Levis Original and Airness XS99) during the same period of 2007. As already announced, this reflects the policy of ModeLabs Group decided in 2008to concentrate the major part of its capital investment on luxury mobiles thecontribution of which will become significant commencing in 2009.

Sale of the loss-making Bluetooth businessWithin the context of the economic crisis, ModeLabs Group has decided to focuson its profitable and strategic businesses and thus devote the essential part ofits investment capacity to its manufacturing activity and more particularly, tothe luxury products for which the outlook for growth is promising. The Group hastherefore decided to sell its loss-making ModeLabs Technologies (ex-InnoviTechnologies Ltd) subsidiary, acquired in 2006, which was the vehicle for itsBluetooth product design and distribution business. Since the beginning of 2007 ModeLabs Technologies was confronted with anextremely competitive market for Bluetooth products which experiencedsignificant further deterioration during the 4th quarter of 2008 as a result ofthe economic crisis. As the Group expects this deterioration in the Bluetooth market to be a lastingone, during the fourth quarter of 2008 it decided to sell the loss-makingbusiness whilst retaining the skills required for the development of Bluetoothproducts for its luxury mobiles. Distribution: strong growth in sales of mobilesThe Groups distribution business, which had increased a little during the thirdquarter, has experienced very significant growth during the fourth quarter of2008 with an increase in revenue of 64.9 reflecting record mobile sales for theGroup. This excellent performance has been achieved in part as a result of reinforcedpartnerships with those manufacturers that have sought to diversify theirdistribution channels by offering an attractive and exclusive product range, asannounced by the Group on 15 October 2008. As a result, the Group has comforted its position as the French market leaderfor the distribution of mobile telephones and accessories.

Outlook: continuing confidence in the luxury segmentAs already announced, given the capital investment required to set up the luxurymobile manufacturing business and launch two new mobiles worldwide, the Groupexpects to record an operating loss for 2008 as a whole of the order of 10m(excluding the impact of the sale of ModeLabs Technologies) as compared with aloss of 6.7m for the first half of the year. The Groups distribution businesswill however disclose an increase in profitability. Despite a very unfavourable worldwide economic environment during 2009, theGroup remains confident in the pertinence of its strategy of concentrating ondeveloping luxury mobiles. Salesof luxury mobiles will make a significant contribution to the Groups results assoon as full production capacity is achieved during the coming months. Despite the encouraging performance of the distribution business during thefinal quarter of 2008, the Group remains prudent as to the evolution of thisactivity in 2009 given the lack of market visibility. Nevertheless, there hasbeen a trend towards market consolidation in favour of main players such asModeLabs who can best be relied upon to cope with the difficulties anticipatedin 2009. Finally, the sale of the loss-making ModeLabs Technologies subsidiary will alsostrengthen the Groups profit potential by allowing it to devote the major partof its capital expenditure to Mobiles On Demand, particularly within the luxurysegment, as a means of ensuring profitable growth commencing in 2009.