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Preliminary report on 2008 Zenitel results

As reported in its Q3 trading update, Zenitel expects its 2008 revenue to be in line with 2007, thanks to the increased revenues in its intercom business.

Nevertheless, the drop in order intake in the System Integration business, especially in the Benelux, which started in 2007 and lasted throughout 2008, continued to heavily impact this business’ turnover, earnings and cash. Therefore, the goodwill on this business has been impaired for 3.5 million EUR, resulting in a net loss for the company of 13.5 million EUR compared to 12.5 million EUR in 2007. The savings from the reorganization in the System Integration business only came into effect as from the 4th quarter of 2008, therefore these savings have not been able to compensate for the additional losses incurred.

Given these negative results in the System Integration business and given the current difficult economic outlook, management is evaluating, together with its advisors, all strategic options.