ADB Group reports second-half 2007 business update

1 november 2007 Geneva - November 1, 2007 Advanced Digital Broadcast Holdings S.A. (SWX: ADBN) reports today its second-half 2007 update on the progress of its business. In second-half 2007, the Group continued the expansion of its customer and product base, in all segments of its activity. It also continued working on the improvement of its manufacturing and supply chain. In Set-Top Boxes (STB), the Group announced in September the addition of T-Com Innovation to its customer base. It also won contracts to supply new generation of products to several customers: a High-Definition, Hybrid IPTV PVR to Telefonica Spain; a HD decoder to Yes in Israel; and a High-Definition IPTV PVR for the US IPTV market, which is expected to start deployment within year end. Since the beginning of 2007, the Group's STB customer base has grown by 6 new customers, and its product mix continues shifting towards high-end. In Software and Services, the Group's affiliates have successfully introduced new products, some of which are being commercially deployed by its customers. In particular, Osmosys' MHP(TM)-based, end-to-end solutions are being deployed by INDI in Belgium and Multimedia in Poland, and EGG(TM), its latest innovative solution bringing 3D graphics to STBs is attracting massive market interest. In the US, Vidiom continues to lead the OCAP(TM) development wave with major players such as CableLabs and prominent MSOs, and progressively evolving from a pure services to a product company. Finally Simple, the Group's start-up for new content and technology, keeps developing its customer base and business at a satisfactory pace. The Group has been making significant progress regarding STB manufacturing and operations. In the third quarter of 2007, the Group has taken appropriate actions to consolidate its production in Thailand, where substantially all the Group products are now manufactured. One-off costs directly related to this move will have to be incurred in the remainder of 2007, and overall, supply chain has been sub-optimal. The Group believes this strategic decision will simplify its supply chain and materially improve its execution capabilities moving into 2008. The Group has also decided to improve the organization of its STB affiliate by the creation of dedicated business units, so to better match market and customers dynamics. This new organization, which is aimed at increasing the effectiveness of the existing engineering, marketing, sales and management teams, will be fully deployed in January 2008. Finally, following the amendment of certain terms of its strategic partnership with ITI Neovision as announced on August 9, 2007, the Group's June 30, 2007 amounts receivable from this customer have been reduced by US$ 30 million. Standard payment terms are now being applied on product deliveries to this customer. "We continue our efforts to align our overall efficiency with our demand" said Andrew N. Rybicki, Chairman and CEO. "We put a significant effort into consolidating substantially all our production in Thailand. The main steps have been successfully completed, and the next two months will be key. With the changes that we are conducting, including the new organization of our STB business, we will be in a good position to start 2008 on a solid basis." ADB Group management will hold a telephone conference today at 15:00 CET to comment on this release. To connect to this conference, interested participants should dial: +33 1 7226 0165. To ask a question, participants will be required to dial: 01 OCAP(TM) is a trademark of Cable Television Laboratories, Inc. DVB and MHP are registered trademarks of the DVB Project. -end- About ADB Group (SWX: ADBN) ADB Group (www.adbholdings.com) was founded in 1995 and is a leading developer of solutions required to view and interact with digital TV broadcast through cable, satellite, terrestrial and IP networks. The Group primarily sells consumer premise devices, including set-top boxes, with over 9 million units deployed since 1997. The development and sales of the Group's products and services are conducted in three main operating segments: the Digital TV Equipment segment, mainly operated by ADB (www.adbglobal.com), Software and Services segment, encompassing Osmosys (www.osmosys.tv) and Vidiom Systems (www.vidiom.com) and New Initiatives segment, which includes interactive applications, new media, content and related services. This segment operates essentially under the Group's tele.DOM (www.teledom.tv) and Simple (www.simple.tv) brands. This press release or related communications may contain forward-looking statements. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors, among which: * future developments of the world digital TV market, in particular the future demand for digital TV products in the key markets and from key customers served by our Group; * pricing pressures, competitive market situation; * our and the industry's capability to successfully and timely innovate and develop challenging technology, and our capability to hire and retain high-level employees; * changes in the exchange rates between the US$ and the main other operating currencies of the Group, including the Euro and the Polish Zloty; * our ability in an intensive competitive environment, to continue securing orders from existing or new customers and to achieve our pricing expectations for volume supplies of new products in whose development we have or are currently investing; * the ability of our suppliers to meet our demands for supplies, qualitatively or quantitatively, and to offer competitive pricing; * our gross margin could vary significantly from expectations based on changes in revenue levels, product mix and pricing, changes in unit costs, and the timing and execution of shipments ramp-ups; * changes in the economic, tax, social or political environment, including import and other duties, military conflict, terrorist activities, as well as natural events such as severe weather, health risks, epidemics or earthquakes in the countries in which we, our key customers and our suppliers operate; * our ability to obtain required licenses on third-party intellectual property on reasonable terms and conditions, the impact of potential claims by third parties involving intellectual property rights relating to our business, and the outcome of litigation; * the results of actions by our competitors, including new product offerings and our ability to react thereto; Advanced Digital Broadcast Holdings SA undertakes no obligation to publicly update or revise any forward-looking statements. Advanced Digital Broadcast Holdings SA reserves the right to amend the information at any time without prior notice. The information contained in this press release may not be considered as being a substitute for economic, legal, tax or other advice and you are cautioned to base investment decisions or other decisions on the content of this release. You are recommended to consult your investment advisers or other advisers prior to making any decision. This press release is not an offer of securities for sale or a solicitation to invest in Advanced Digital Broadcast Holdings SA securities. In particular, it is not an offer of securities for sale in the United States of America, its territories and possessions. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Advanced Digital Broadcast Holdings S.A. does not intend to register its securities in the United States of America. For further information please contact: François Pogodalla EVP Corporate Development Advanced Digital Broadcast Holdings S.A. 7, avenue de Tournay 1292, Chambésy Switzerland Tel: +41 22 592 84 30 Fax: +41 22 592 84 32 f.pogodalla@adbglobal.com --- End of Message --- ADB Holdings S.A. Avenue de Tournay 7 Chambesy Switzerland ISIN: CH0021194664; Index: SPI, SPIEX, SSCI; Listed: Main Market in SWX Swiss Exchange;