Revenue in personal navigation increases 104%

's-Hertogenbosch, The Netherlands, March 1, 2007 - Tele Atlas NV (FSE: TA6, EUNV: TA), a leading global provider of digital map data and dynamic content for navigation and location-based solutions, today reported fourth quarter and full year results for 2006.

Highlights of full year 2006 and fourth quarter 2006:

Full year revenues increased to a record €264.3 million, up 32% over 2005 and 107% over 2004.
Full year Adjusted EBITDA increased to a record €43.8 million, up from €14.7 million in 2005 and a loss of €22.5 million in 2004.
Fourth quarter revenues increased 43% over the prior year to a record €82.8 million.
Fourth quarter Adjusted EBITDA increased 331% over the prior year to a record of €21.0 million.
Ongoing strong personal navigation revenue growth in 2006 of 104% over the prior year.
Wireless navigation accelerated with several key new partnerships.
Outlook for 2007: Revenues increasing to approximately €315 million and Adjusted EBITDA to approximately €65 million. [1]
[1] - See detailed discussion of Full Year Outlook below

Key Figures
In millions of Euro except employee and earnings per share information
Q4 2006 Q4 2005
2006 2005

Revenues 82.8 57.8 264.3 200.1

Adjusted EBITDA[2] 21.0 4.9 43.8 14.7

Operating result (EBIT) 6.7 (4.8) (17.3) (24.2)

Net result 5.4 (1.1) (19.0) (21.6)

Average number of employees 1,590 1,381 1,490 1,329

Earnings per share 0.06 (0.02) (0.21) (0.49)

[2] - Adjusted EBITDA is the operating result before capitalization, depreciation and amortization and before costs related to share-based payments.

Alain De Taeye, Chief Executive Officer, says: "This was an excellent year for us, with strong growth in revenue and Adjusted EBITDA. We signed important strategic partnerships, expanded the Company's global footprint, launched our next generation database and secured growth in both traditional and emerging map markets. We remain focused on providing the best digital maps and the most useful local search content that helps navigation system and location-based solutions users find the people, places and products most important in their daily lives."

Hardie Morgan, Chief Financial Officer, says: "In 2006, we grew total revenues by 32% to a record €264 million and tripled our Adjusted EBITDA from €14.7 million to €43.8 million. For 2007 we anticipate continued growth in revenues to approximately €315 million and Adjusted EBITDA to approximately €65 million."


2006 Financial Highlights

Revenues

Full Year 2006 Revenues
In 2006 Tele Atlas realized revenues of €264.3 million, up 32% from €200.1 million in 2005. The impact of changes in exchange rates was minimal. In Europe, revenue was up 36% to €198.2 million. In North America, revenue was up 21% to €66.2 million. The following chart provides revenue by geographic and market segment for 2006 and 2005.

Europe North America Total
(in thousands of euros) 2006 2005 2006 2005 2006 2005
Personal navigation 115,638 56,184 11,463 6,132 127,101 62,316
Automotive navigation 40,555 44,705 11,115 8,171 51,670 52,876
Data products navigation 22,988 27,156 198 - 23,186 27,156
Enterprise and government 10,654 11,352 36,964 34,830 47,618 46,182
Other segments 8,318 5,861 6,414 5,677 14,732 11,538
Total revenues 198,153 145,258 66,154 54,810 264,307 200,068


The growth in revenues in 2006 was primarily driven by the strength of personal navigation revenues, which increased 104% to €127.1 million from €62.3 million in 2005. The Company recorded revenues on 7.5 million personal navigation units sold in 2006 versus 3.9 million units in 2005. European personal navigation revenues grew by 106% to €115.6 million from €56.2 million in 2005 as a result of continuing rapid growth in the European market. Revenues in the North American personal navigation segment grew by 87% to €11.5 million from €6.1 million in 2005.

Revenues in the automotive navigation segment decreased by 2% to €51.7 million from €52.9 million in 2005. This decrease resulted from a reduction in compilation and conversion revenues due to the Company's decision to phase out this business. Tele Atlas has restructured several customer contracts in Europe so that these revenues are no longer reflected in the Company's accounts. This change resulted in a reduction in automotive segment revenues of €6.5 million, with a similar reduction in the Company's cost of revenue and operating costs. Consequently it had a limited effect on the Company's Adjusted EBITDA. The 2006 automotive revenues represent 1.5 million units, as compared to 1.2 million units sold in the prior year. Adjusting for the impact of the reduction in compilation and service revenues, global revenues in the automotive navigation segment increased by 10%.

Revenues in the European automotive navigation segment were affected most by the reduction in compilation and conversion revenues and therefore decreased by 9% to €40.6 million as compared to €44.7 million in 2005. Revenues in the North American automotive navigation segment increased by 36% to €11.1 million in 2006 compared to €8.2 million in 2005.

As anticipated, revenues in the data products navigation segment, a segment which today exists primarily in Europe, decreased by 15% to €23.2 million in 2006 compared to €27.2 million in 2005 due to reduced demand for map updates for older CD based systems and a shift in sales from the dealer and consumer channel towards the platform channel.

Revenues in the enterprise and government sector grew by 3% to €47.6 million in 2006, from €46.2 million in 2005. This growth was mainly driven by North America revenues in this segment, with 6% revenue growth to €37.0 million, up from €34.8 million in 2005. In Europe, revenue decreased by 6% to €10.7 million from €11.4 million in 2005, mainly due to the exceptionally strong performance of the segment in 2005.

Revenues in the other segments, which are comprised primarily of the Internet and wireless segments, increased by 28% to €14.7 million in 2006 as compared to €11.5 million in 2005. European revenues in these segments grew 42% in 2006 to €8.3 million from €5.9 million in 2005 while North American revenues increased 13% in 2006 to €6.4 million from €5.7 million in 2005.

Fourth Quarter Revenues
Fourth quarter revenues increased by 43% to €82.8 million, compared to €57.8 million in 2005. European revenues grew by 45% to €63.0 million and revenues in North America increased by 38% to €19.8 million.

Europe North America Total
(in thousands of euros) Q4 2006 Q4 2005 Q4 2006 Q4 2005 Q4 2006 Q4 2005
Personal navigation 42,258 17,473 5,100 1,409 47,358 18,882
Automotive navigation 9,537 12,803 3,977 2,265 13,514 15,068
Data products navigation 5,054 7,091 51 - 5,105 7,091
Enterprise and government 2,878 4,429 9,179 8,910 12,057 13,339
Other segments 3,286 1,683 1,507 1,778 4,793 3,461
Total revenues 63,013 43,479 19,814 14,362 82,827 57,841


Cost of Revenue and Operating Expenses
Cost of revenue for 2006 increased in absolute terms to €33.0 million from €28.4 million in 2005, but declined as a percentage of revenues to 12.5% from 14.2% in 2005 as result of the reduction in costs related to the elimination of the compilation and conversion revenues in the automotive navigation segment.

Full year cash operating expenses (operating expenses excluding the effects of capitalization of database and tool development costs, depreciation, amortization and employee stock option expense) increased by 19% to €220.5 million in 2006 from €185.3 million in 2005 as the Company continued to expand the coverage and content of its database, invest in new technology and develop its sales channels. Fourth quarter cash operating expenses increased by 17% to €61.8 million from €53.0 million in the fourth quarter of 2005.

Depreciation and amortization decreased to €50.2 million in 2006 from €52.3 million in 2005. Capitalization of database and tool development costs, which is treated as a reduction of operating expenses, decreased to €11.0 million from €32.9 million in the previous year. Employee stock option expenses were €21.9 million compared to €19.4 million in 2005. Including capitalization, depreciation, amortization and stock option expenses total operating expenses increased by 26% in 2006 to €281.6 million in 2006 from €224.2 million in 2005. Fourth quarter total operating expenses increased by 22% to €76.1 million from €62.7 million in 2005.

Results
Tele Atlas' full year Adjusted EBITDA improved 196% to a profit of €43.8 million in 2006 from €14.7 million in 2005. Fourth quarter Adjusted EBITDA increased 331% to €21.0 million in 2006, compared to €4.9 million in the same period in 2005. Tele Atlas believes that Adjusted EBITDA provides the most meaningful measurement of performance as it eliminates the impact of the large variations in non-cash expense items the Company has experienced since 2004.

The operating loss for the year improved to €17.3 million from a loss of €24.2 million in 2005 as the strong increase in Adjusted EBITDA was partially offset by decreases in capitalization of database and tool development costs. In the fourth quarter, an operating profit of €6.7 million was recorded, compared to a loss of €4.8 million a year earlier.

Tele Atlas incurred an impairment loss on investment of €9.3 million during the year, related to the restructuring of its activities in China.

In 2006, a net tax benefit of €1.4 million was recorded, as compared to a benefit of €0.6 million in the previous year. This 2006 benefit mainly resulted from the recognition of a €11.5 million tax asset in The Netherlands following the approval by the tax authorities of the tax treatment of certain inter-company financing.

The net result for the year was a loss of €19.0 million as compared to a net loss of €21.6 million in 2005.

Cash Flow
As a result of the improved EBITDA, cash flow from operating activities improved 57% to €28.3 million in 2006 from €18.1 million in 2005.


2006 Operational Highlights

In 2006, Tele Atlas announced strategic partnerships with a number of leading navigation and location-based solutions companies, including Hewlett-Packard, Nokia and Research in Motion (RIM).

Personal Navigation
Six of the eight leading personal navigation device providers worldwide use Tele Atlas digital maps. These include TomTom, Mio, Navman and ViaMichelin. The personal navigation market continued to grow rapidly throughout 2006. A record 12 million dedicated personal navigation units were sold in Europe, representing market growth of more than 80% compared to 2005. Tele Atlas currently anticipates that this market growth will continue into 2007, with projected unit growth rates of approximately 50%.

Tele Atlas partner and global market leader TomTom launched a new series of GO models using Tele Atlas maps as well as the TomTom ONE in North America and a regional version in Europe.

Hewlett-Packard selected Tele Atlas as the map provider for its iPAQrx5900 Travel Companion. This device includes pre-installed Tele Atlas digital maps and TomTom's NAVIGATOR 6 software.

Tele Atlas also expanded its agreement with Mio Technology, making the Company the preferred global digital map provider for Mio Technology's personal navigation devices. Mio products that feature Tele Atlas maps include the Mio C310, C310x, C710 and H610. This agreement also extends the use of Tele Atlas maps to Mio's North American products.

Automotive Navigation
Tele Atlas made significant progress in the automotive market. In early 2007, we entered into an agreement with the BMW Group to provide digital map data and local search content for the next generation driver information/navigation systems in BMW vehicles in the United States, Canada, Mexico, Australia, New Zealand, Singapore and Malaysia. Select BMW vehicle navigation systems will contain Tele Atlas maps starting in 2008; additional navigation systems are expected to be powered by Tele Atlas maps starting in 2009.
In 2006, the Company was awarded a significant development contract to be the map supplier for Europe for all models of the Mercedes' E-class and C-class vehicles for the 2009 model year. Both agreements represent a significant step forward in the automotive navigation segment for Tele Atlas.

The unit increase experienced by the Company in the North American automotive segment was largely as a result of increased sales to General Motors, Toyota and Lexus by Tele Atlas' customer DENSO.

Enterprise and Government
The year saw the continuation of Tele Atlas' leadership in the enterprise and government segment. Significant developments in 2006 included the signing of an agreement with Telargo for use of Tele Atlas maps in Telargo's mobile asset management platform, designed to optimize fleet and mobile workforce management. These systems are used primarily in the transportation and logistics, public transport and utilities industries.

In the North American government sector, the Company announced contracts with the California Department of Transportation and the Department of Public Safety in Connecticut, expanding the number of license agreements to 41 states. Currently over 90% of all emergency (911) calls in the United States annually are routed with Tele Atlas data. These partnerships are important to the Company's map update process and are part of a network of over 50,000 resources that supply information to ensure Tele Atlas maps both anticipate and reflect real world changes.

Internet/Wireless
With the recent launch of the first GPS enabled handsets by leading manufacturers, we believe the wireless market is now poised for significant growth. These launches are expected to trigger the rollout of more mobile devices that support navigation and location based services. Tele Atlas, already a leading supplier in this market, is well positioned to capitalize on this expected growth given new agreements the Company signed with Nokia and RIM in 2006.

In 2006, Nokia selected Tele Atlas to provide digital map data for the Nokia N95, the company's first GPS-enabled multimedia device. The N95 leverages Tele Atlas' digital maps and related content, providing basic mapping and simple routing functionality to initiate local searches in more than 100 countries. Nokia also selected Tele Atlas as the map supplier for its 770 Internet tablet device.

In addition, RIM selected Tele Atlas to provide mapping and location-based services for its BlackBerry Maps application featured in the new BlackBerry Pearl smartphone. This application provides the same type of routing capabilities found in Internet applications. More importantly, Tele Atlas maps have been linked to the RIM application developer toolkit, designed to encourage developers to create location-based services applications for BlackBerry devices.

Tele Atlas firmly believes the quality of its map data, combined with its relationships with companies such as Nokia and RIM, leave it well positioned in the growing wireless market. Mass market penetration is expected to begin to emerge in 2007 as the number of GPS-enabled handsets increase and new, innovative applications reach the end user.

Expansion

In 2006, Tele Atlas grew its operations and global footprint, building a solid organization in Asia Pacific, establishing new operations in Russia and Mexico, and significantly expanding coverage of the global database to include 64 countries across six continents. Also this year, acquisitions, joint ventures and partnerships expanded the global footprint of the Company across China, Indonesia, Africa, Russia and the Middle East. This progress has put Tele Atlas in the lead position for number of countries and miles covered in the digital map database.

In addition, Tele Atlas has continued to invest in the development of systems and technologies to ensure the consistent delivery of high quality, accurate digital maps. During the third quarter, the Company's position in North America was further enhanced with the launch of its next generation database, which includes integrated data from Tele Atlas North America and Geographic Data Technology (GDT).

Full Year Outlook

Barring unforeseen circumstances and based on the 2006 results and its current expectations for 2007, Tele Atlas expects revenues to grow to approximately €315 million during 2007 and Adjusted EBITDA to approximately €65 million.

The personal navigation market segment is expected to be the main driver of revenue growth in 2007 with market unit growth anticipated to be approximately 50% in Europe and 100% in North America. Unit prices are expected to decline moderately. The Company expects little or no growth from the automotive segment during 2007 due to the completion of the elimination of revenues from compilation and conversion services and the anticipated loss of part of the Volkswagen business beginning in late 2007.

This outlook includes the impact of the following transactions concluded in 2006: the creation of the Company's Indonesian joint venture, the purchase of all outstanding shares of the Company's Chinese joint venture and the acquisition of Navmaps in Russia. Combined, these transactions are expected to increase 2007 revenue by €2.2 million and reduce 2007 Adjusted EBITDA by €1.2 million. In addition, the expectation for Adjusted EBITDA reflects investments that are planned in connection with the announced BMW agreement and associated acceleration of the development effort required to implement the Advanced Driver Assistance Systems ("ADAS") standards in the Company's database. The ADAS standard requires a higher degree of precision than current navigation standards. These investments are anticipated to be approximately €5 to €7 million in 2007.

After the effects of depreciation and amortization, share based payment expense, capitalization of database development costs and other non-cash items, this level of Adjusted EBITDA is anticipated to produce an operating (EBIT) profit for the year of approximately €3 million. Given this level of EBIT, we anticipate total income tax expense to be approximately €15 million, with approximately €7 million of that amount being current income tax expense. Based on these factors, we anticipate a net loss for the year of approximately €5 million.

The Company's expenditures for property and equipment for 2007 are expected to be approximately €14 million and working capital requirements for accounts receivables are expected to increase in proportion to the anticipated increase in revenues.

This outlook excludes the impact of unforeseen circumstances as well as the impact of any acquisitions which may be completed in 2007.

Subsequent to 2007, Tele Atlas' current expectation is that, barring unforeseen circumstances, the Company can grow revenues in excess of 20% on an annual basis for the next several years and that Adjusted EBITDA for each year will increase by approximately 50% of incremental revenue. The Company expects to incur total income tax expense at an effective rate of approximately 31% of earnings before taxes after adjustment to eliminate the effect of employee stock option expense. This rate does not take into account the expected impact of utilization of U.S. tax loss carryforwards.

Webcast full year results 2006: March 1 14:00 CET, www.teleatlas.com/investors