Earnings for H1 2008: Improvement in growth during Q Significant increase in half-year earnings Strong sales growth in the US

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1 Earnings for H1 2008: Improvement in growth during Q Significant increase in half-year earnings Strong sales growth in the US Paris, July 31 st, :40 pm Revenues: at June 30 th, 2008, revenues came to million euros, up 4.6% yoy. Over Q2 2008, revenues totaled 58.3 million euros, up 9.7% yoy. Gross margin: 53.1% (vs. 50.4% in H1 2007), benefiting from a favorable product mix and the weak dollar vs. euro. EBIT: 19.3 million euros (+9.1% yoy), representing an operating margin of 16.4% (vs. 15.8% in H1 2007). Net income: 15.5 million euros (+30.5% yoy), representing a net margin of 13.2% (vs. 10.6% in H1 2007). In Q2, Parrot: - Sold 2 million product units in three months, with a major contribution of the OEM business; - Finalized the recruitment of its Chief Financial Officer, who will be taking up his position on September 1 st, 2008; - Achieved strong growth in its revenues in the US (+69%); - Continued strengthening its market shares in the various regions; - Successfully launched the Parrot RK8200 (hands-free kit), the Parrot SK4000, hands-free kit for scooters and motorbikes, the first product from the Designer collection the digital photo-frame Parrot by Andrée Putman (multimedia) and the Minikit Slim (Plug and Play). In million Euros H H Change (yoy) Revenues % of which, navigation products (1) Gross operating margin % % of revenues 53.1% 50.4% EBIT % % of revenues 16.4% 15.8% Net income (Group share) % % of revenues 13.2% 10.6% Net earnings per share (in Euros) % Diluted net earnings per share (in Euros) % Number of shares outstanding at Jun Diluted number of shares outstanding at Jun In million Euros, excluding net EPS Jun 30, 2008 Jun 30, 2007 Change (yoy) Net debt % (1) Share of revenues from the contract for distributing navigation products in Spain. As Henri Seydoux, Parrot's Chairman, CEO and founder explains: Within difficult market condition, Parrot achieved a sustained rate of growth in its business over the second quarter of 2008, excluding Spain our growth rate is close to 30%. The good commercial performances illustrate the strength of our product portfolio, driven by the remarkable growth on OEM. These strong positions are enabling us to grow our business with a long-term focus. More than ever, this increase in activity confirms Parrot s strong ability to resist and grow, which is being combined with the virtuous development of our profitability and our cash generation capacity. I am confident in Parrot s ability to achieve a new year of growth and improve on its financial performances in /5

2 Revenues at June 30 th, 2008 In Q2 2008, Parrot achieved a clear improvement in its growth, with 58.3 million euros in consolidated revenues, up 9.7% in relation to Q Over the first half of 2008, revenues came to million euros, representing an increase of 4.6% yoy. Excluding the navigation product distribution contract in Spain, revenue growth comes out at 6.9%. For each segment Installed handsfree kit sales (67% of revenues) are stable set against the continued geographical realignment of sales. The OEM business (15% of revenues), driven by a high level of orders for latest generation chips and modules, attesting to the excellent quality of Parrot's products, is up 63.6% yoy. Plug and Play products (5% of revenues) have made a significant contribution to growth, with an increase of 39.7% yoy. The level of sales of Multimedia products (1% of revenues) is not significant for the full-year trend in light of the activity's highly seasonal nature, with sales concentrated over the fourth quarter. The first product from the Designer collection has gradually been listed with a strong initial focus on high-end points of sale; the first largely positive feedback points to promising potential for development of this new collection. For each region As the main growth driver and a particularly strategic market for Parrot in 2008 (law came into force on July 1 st, 2008 in California and Washington state forbidding drivers from holding a mobile phone), the US (13% of revenues) has continued ramping up its business: +68.7% yoy. The strategy deployed to accompany Parrot's breakthrough in these states is paying off, and the marketing campaign was significantly stepped up over June. Parrot s products are proving very successful in this country, with 41.7% growth qoq in relation to Q In Spain, set against an economic recession, Parrot's business is down 22.8% yoy. Spain now accounts for 31% of revenues, compared with 42% in H To a lesser extent, the Parrot Iberia subsidiary was also impacted over the second quarter by June s major trucker strike. France (16% of revenues) has once again achieved strong growth, coming in at +42.9% yoy. For its part, the UK (7% of revenues) has seen volatile sales (-25.0% yoy). In this way, although market shares are still high in this country, exchange effects are encouraging the development of a parallel importer market (grey market), a challenge that Parrot is rising to (product traceability to identify exporters). In Germany (2% of revenues), the country manager deployed in Q1 has recruited a first-rate manager to head up the subsidiary: Markus Lange, former VP Marketing Europe for Logitech. Initial positive results are showing slight growth in relation to the previous quarter. On other regions, sales of Parrot products have continued to grow at a sustained rate, with the strongest sales growth achieved in Asia (7% of revenues, +158% yoy), the Benelux (8% of revenues, +25% yoy) and Italy (4% of revenues, +19% yoy). Lastly, new regions (Australia/New Zealand, Middle East and Eastern Europe) have continued to record a dynamic level of growth. Gross margin and EBIT For H1 2008, Parrot s gross margin represented 53.1% of revenues (+2.7 pts in relation to H1 2007). Without factoring in the contract for the distribution of navigation products in Spain, the gross margin on all Parrot products comes out at 55.4%. This progress reflects: 1/ an improvement in the product mix, 2/ the euro's continued strength against the dollar, 3/ a reduction in unit costs by more than the reduction in average sales prices over the period. Sales and marketing costs came to 22.7 million euros, representing 19.4% of revenues for the first half of In line with its action plan for 2008, the second quarter saw a sustained level of spending on sales and marketing, with the 2.3 point increase in relation to the previous quarter focused primarily on the American market. The major multi-media marketing campaign (internet, press, radio, poster and point of sale) is bearing fruit, and will therefore be able to be duplicated at a lower cost in the other American states. At June 30 th, 2008, EBIT came to 19.3 million euros (+9.1% yoy), representing an operating margin of 16.4%, confirming the excellent management of the Group's other costs. The workforce was made up of 470 people at June 30 th Net income Net income (Group share) totaled 15.5 million euros (+30.5% yoy), representing 1.18 euros per share for H1, with a net margin of 13.2% (vs. 10.6% in H1 2007). The Group's average tax rate is 19.9%, factoring in a 1.8 million euro research tax credit. Financial structure The Group is in a healthy financial position, with 50.9 million euros in net cash at June 30 th, The impact of the share buyback program carried out in April/May 2008 (268,513 shares) represents 3.7 million euros. Net cash from operating activities came to 19.6 million euros over the first half of 2008, compared with 2.1 million euros in H1 2007, with this significant improvement notably made possible by the healthy and efficient business management. 2/5

3 Outlook for the second half of 2008 In H2 2008, Parrot plans to: - Carry out several co-marketing operations in Europe and the US, - Ramp up new product launches, particularly on the multimedia range, in order to fully benefit from the sales forecast for the end-of-year period, - Continue strengthening product listings on major markets, as well as in new countries and regions (Australia, Eastern Europe, Middle East). The performances over the first half of 2008 within a difficult economic environment highlight the soundness of Parrot's development model, making it possible to look ahead to the second part of the year with moderate optimism due to the uncertain environment. For the full year, Parrot maintains its target for double-digit revenue growth, combined with a high operating margin, set against continued commercial and R&D investments. Parrot will be publishing its results for Q (ending September 30 th ) after close of trading on November 13 th, (Appendices hereafter) About PARROT Fo un ded in 1994, Parrot has rapidly est ablished it self as a pivot al global player f or w ireless m obile t elephone accessories. Drawing on its t ried-and-tested expertise on voice recognition and signal processing technologies, Parrot was one of the very first companies to produce Bluetooth -enabled wireless handsfree car kits, having identified this standard s vast potential as early as Determined to accompany the mobile telephone s irresistible breakthrough into our day-to-day lives, Parrot has been developing a new range of Multimedia products since 2006, including wireless hi-fi systems and LCD photo frames. Today, Parrot truly has a major international focus, both in terms of its client base, with 86.6% of sales generated outside of France, and in terms of production, outsourced to carefully selected partners, enabling it to achieve the best possible level of quality and responsiveness. Parrot is now particularly well positioned to capitalize on the bright future opening up for mobile telephone devices. Parrot has seen sustained growth in its consolidated revenues, which have tripled since In 2007, Parrot sold over 5 million product units and generated 220 million euros in revenues, up 32% on m Euronext Paris Eurolist, B: FR PARRO The Bluetooth word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Parrot S.A. is under license. Other trademarks and trade names are those of their respective owners. Tous droits réservés. Les marques PARROT figurant sur ce document sont la propriété exclusive de la société PARROT. Toutes les autres marques sont la propriété de leurs détenteurs respectifs et sont utilisées sous licence par la société PARROT CONTACTS Analyst and investor relations Press relations Marie Ein / Cyril Combe T.: +33(0) parrot@calyptus.net 3/5

4 APPENDICES Breakdown of revenues by region % of revenues H Q H France 15.8% 16.1% 11.6% Spain 31.0% 27.5% 42.0% UK 6.7% 5.4% 9.3% Netherlands and Belgium 8.4% 9.5% 7.0% Italy 3.9% 4.0% 3.4% Germany 2.2% 2.2% 2.7% Rest of Europe 6.7% 5.9% 6.8% USA 13.2% 15.6% 8.2% Rest of world 12.1% 13.8% 8.9% Breakdown of revenues by segment % of revenues H Q H Installed kits 67.3% 64.6% 71.2% OEM 14.9% 15.5% 9.5% Plug & Play 5.3% 5.9% 4.0% Multimedia 1.0% 0.8% 1.8% Other 11.4% 13.3% 13.5% Income statement In thousand Euros H Q H Revenues 117,187 58, ,061 Cost of sales -54,982-27,724-55,541 Gross margin 62,204 30,545 56,520 % of revenues 53.1% 52.4% 50.4% Research and development costs -11,040-5,605-9,174 % of revenues 9.4% 9.6% 8.2% Sales and marketing costs -22,689-11,962-20,643 % of revenues 19.4% 20.5% 18.4% General costs -5,034-2,358-5,485 % of revenues 4.3% 4.0% 4.9% Production and quality -4,172-2,178-3,552 % of revenues 3.6% 3.7% 3.2% EBIT 19,269 8,441 17,667 % of revenues 16.4% 14.5% 15.8% Net financial income Other financial income and expenses Corporate income tax -4,446-1,800-5,724 Net income (Group share) 15,478 7,160 11,860 % of revenues 13.2% 12.3% 10.6% Balance sheet - assets Non-current assets 34,025 32,993 29,295 Goodwill 20,903 21,016 18,546 Other intangible fixed assets 8,072 6,962 5,851 Tangible fixed assets 4,430 4,437 4,067 Financial assets Deferred tax assets Current assets 129, , ,939 Inventories 20,660 21,106 26,691 Trade receivables 52,017 50,095 48,344 Other receivables 5,848 7,105 6,109 Other current financial assets Cash and cash equivalents 50,945 39,514 35,795 Total assets 163, , ,234 4/5

5 Balance sheet - liabilities Shareholders' equity Share capital 2,031 1,992 1,957 Issue and contribution premiums 60,363 59,919 57,852 Reserves and retained earnings 40,907 23,657 22,849 Earnings for the period 15,478 19,965 11,860 Translation gains Equity attributable to Parrot SA shareholders 119, ,025 94,854 Minority interests Non-current liabilities 3,137 3,379 3,153 Long-term financial debt 0 1,000 1,000 Pension provisions and related commitments Deferred tax liabilities 2,224 1,611 1,014 Other non-current provisions Current liabilities 41,256 41,408 45,651 Short-term financial debt 1,136 1,137 1,174 Derivatives Current provisions 1,133 1, Trade payables 26,498 28,332 30,425 Current tax liability 3,111 1,749 6,154 Other current liabilities 9,378 8,988 9,293 Total shareholders' equity and liabilities 163, , ,234 Cash flow statement Operating cash flow Earnings for the period 15,478 19,965 11,860 Depreciation and amortization 3,307 5,395 2,472 Tax charges 4,446 6,386 5,724 Cash flow from operations before tax and cost of net financial debt 23,396 33,402 20,708 Change in working capital -2,045-15,341-6,710 Tax paid -1,768-6,884-11,893 Net cash from operating activities (a) 19,582 11,177 2,105 Investing cash flow Acquisition of tangible and intangible fixed assets -4,365-9,368-4,945 Acquisition of subsidiaries, net of cash acquired (1) 0-2,477 0 Cash flow from investment activities (b) -4,364-11,910-4,932 Financing cash flow Equity contributions 483 6,371 4,278 Cost of net financial debt Repayment of short-term financial debt (net) -1,001-1,000-1,000 Repayment of other debt 0-13,992-13,992 Acquisition of treasury stock -3, Cash flow from financing activities (c) -3,422-8,170-10,032 Net change in cash position (d = a+b+c) 11,797-8,902-12,859 Net exchange rate differences Cash and cash equivalents at start of period 39,514 48,674 48,674 Cash and cash equivalents at end of period 50,945 39,514 35,771 End of the release 5/5