2006 Organic growth in revenues +1.5%
Transformation plan to accelerate organic growth capabilities, improve operational efficiency and operate as a global company
PARIS – 5 February 2007 – Atos Origin, an international information technology services provider, today announced its 2006 revenues and operating margin before equity-based compensation of EUR 5,397 million and EUR 270 million respectively and a transformation programme aimed at accelerating organic growth by operating globally and improving productivity. All figures are
unaudited.
2006 Performance Revenues
2006 Reported Group revenues reached EUR 5,397 million, compared with EUR 5,459 million last year. After adjusting for disposals and exchange rates movements, the Group generated organic growth of +1.5%. After +2.9% organic growth in the first half, the second half, as expected, was flat against the previous year due to the delays in new business signatures in the UK and a tough environment in Italy.
The year has been severely affected by a 12.6% decline in revenues in the UK resulting from four major contract ramp downs (one in consulting and three in Managed Operations), which were not compensated for by new business. Excluding the UK, Group revenues were up +5.4%.
In EUR million
Revenues Organic growth Organic growth excluding UK
Consulting 406 -8.1% +7.9%
Systems Integration 2,243 +2.0% +4.3%
Managed Operations 2,749 +2.5% +6.0%
Total 5,397 +1.5% +5.4%

Portfolio
By year end, all the major contracts in the UK pipeline had been signed and will start contributing progressively in 2007. As a result, order entry picked up significantly at the end of the year at EUR 6.3 billion in 2006 i.e. a book to bill ratio of 116%. On top of the large UK contracts such as
Department of Constitutional Affairs, NHS Scotland, and National Farmers Union Mutual, Government Gateway portal, NHS Diagnostics and Rail Settlement Plan, there were some significant new contracts in the Netherlands for ING, Delta and Telegraaf, in Brazil for the Rio Pan- American Games and in China for ChemChina.

Operating margin
Following the latest recommendations from the AMF of 20 December 2006, promoting best practices in France for the presentation of IFRS accounts, Atos Origin has taken the decision to integrate all equity-based employee compensation (Stock options and employee savings plan costs) into the operating margin. For the last time, and for ease of comparison, the operating
margin analysis below has been provided on the operating margin before equity-based compensation but both sets of figures are provided in the appendix.

In EUR Million FY 2006 FY 2005
Revenues 5,397 5,459
Operating margin before equity-based compensation 270 413
Operating margin rate before equity-based compensation 5.0% 7.6%
Equity-based compensation 23 14
Operating margin after equity-based compensation 247 399
Operating margin rate after equity-based compensation 4.6% 7.3%

The Group’s operating margin for the year reached EUR 247 million or 4.6% against 7.3% in 2005.
Equity-based compensation rose due to the launch of a new Employee savings plan in December.
The operating margin before equity-based compensation was EUR 270 million, or 5.0% of revenues, down by EUR 143 million against 2005.
The UK operating margin before equity based compensation declined by EUR 91 million due to the combination of lower than expected revenues, extra costs to complete of EUR 47 million on several difficult projects and lower utilisation rates in Consulting. In Italy, the operating margin declined by EUR 25 million with the Italian activities moving from profits into losses due to the
difficult market conditions. A major restructuring programme is underway in these two countries to ensure sustainable profitability in the future.
As a result of this performance, the Italian goodwill will be fully impaired in 2006 for a total amount of EUR 77 million, and impairment tests on the UK goodwill are currently underway. The total impairment for the year will be in the range of EUR 350 to 400 million.
While being affected by the performance in the UK, Consulting and Managed Operations have maintained a good financial performance with an operating margin before equity-based compensation, of 9.1% and 8.5% respectively. In Systems Integration, while the operating margin in the Netherlands is still double digit, it remains low in all other countries.

Objectives
The 2007 objectives of the Group are to achieve top line growth of 8.5%, a recovery in the operating margin in the UK and Italy, execution of the transformation plan, development of Atos Worldline, Atos Euronext Market Solutions and medical BPO. We expect an improvement in the
operating margin rate before the costs of the transformation plan and positive free cashflow after restructuring.
Concerning this announcement, Bernard Bourigeaud, CEO of Atos Origin, declared: “2007 is going to be an exciting year. Our objectives are clear, to strengthen the management team, restore the profitability in the UK, Italy and other low performing countries, implement the new organisation and ensure that the Transformation plan is effective. Our ambition is that by 2009 we
are able to double our operating margin, assuming cautious topline growth. The whole Atos Origin is focused on achieving this plan. ”