Page 9 Analysis of the activity and competition Activity Created in 1985, Digigram is a provider of audio-numerical solutions in networks for

the professional markets of broadcasting (Broadcast) and diffusion of the sound in the public places (Address Public). The Group presents a very strong technological competence, related to its policy of investment as regards Research and development, which constitutes a key success factor insofar as it allows the regular renewal of the ranges of products and an adequacy to new uses of the sector. Digigram completely controls the design, the development and the industrialization of its products. The production is sub-contracted at some French partners but the principal purchases, assembly, configuration and quality control are realized within the company/corporation. Digigram is a supplier of technologies and intermediate products and also a supplier of finished marketed products in France and internationally through channels of direct and indirect sales. Digigram operates through two distinct segments within the audio-visual-professional market.

The Broadcast Market It is the historical sector on which Digigram launched in the end of 1980 a technology of substitution, sound card PC, which allowed the automation of the Radios and revolutionized the work methods in replacing the band recorders with data-processing solutions in network bringing capacity, productivity and quality. This innovating technology associated with an original model OEM allowed a strong growth and leading position in this new category of the sound cards. The market of the Broadcast returns since 2005 in its second revolution and is now of the digital traditional towards the whole IP. The players of the sector seek all the utilization of this technology of decreasing the cost of operation, an increased flexibility and competitive answers to new requests from consumers for differentiated, enriched and interactive programs. To profit from this opportunity, Digigram launched in 2008 in the continuity of visiblu, its operating audio system in network, the development of a range of Audio products on IP innovating to equip the infrastructure of the Radios which migrate ineluctably towards the IP. The new offer of Vido products on IP also fits in this market on the side of the TV in order to answer needs of Video contribution, delivery and redistribution on networks IP.

The Audio and Video Equipment Market Digigram was launched at the beginning of the year 2000 on the market of the Public Address, wiring for sound public places, to diversify and develop. Today completely organized around a technology of wiring and of analogical treatment, this market is going towards the digital one as regards transport and treatment of the sound. There, Digigram still penetrated this market by a technology of substitution, the audio in network, EtherSound technology, which makes it possible to transport its high quality and to very weak latency on the Ethernet structure and is particularly adapted to systems of wiring for sound of the alive spectacles. The market of the sound installed, like the Broadcast, is now also in evolution towards whole IP in order to be able to realize professional audio equipment based on the standard networks IT and Telecom in order to reduce the costs, to increase flexibility and the possibilities. Digigram thus widened its offer of terminals and solutions in network to integrate Audio terminals on IP. The new Vido offer on IP makes it possible to answer needs for the IPTV for corporate or hospitality applications.