A N N U A L R E P O R T

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A N N U A L R E P O R T 2 0 0 2

EUROPE, AFRICA, MIDDLE EAST HEADQUARTERS EVS

Parc Scientifique du Sart Tilman Rue Bois Saint-Jean, 16 BE-4102 Ougrée - Belgium Tel. : +32 (4) 361 70 00 Fax : +32 (4) 361 70 99 [email protected]

[email protected] AMERICA(EVS & NETIA) 9 Law Drive, suite 200 Fairfield, NJ 07004 - USA Tel. : +1 (973) 575 7811 Fax : +1 (973) 575 7812 [email protected] [email protected]

ASIA, PACIFIC (EVS & NETIA) Room 430, Block D, D.B. Plaza, Discovery Bay, Lantau Island Hong Kong

Tel. : +852 (2914) 25 01 Fax : +852 (2914) 25 05 [email protected] [email protected]

FRANCE - PARIS (EVS & NETIA) Parc d’affaires EMGP - Bat 269 45 Avenue Victor Hugo

FR-93 534 Aubervilliers - France Tel. : +33 (1) 49 37 97 57 Fax : +33 (1) 49 37 97 58 [email protected]

FRANCE - MONTPELLIER MAISON MERE NETIA Halle industrielle de Farjou FR-34270 Claret - France Tel. : +33 (4) 67 59 08 07 Fax : +33 (4) 67 59 08 20 [email protected] www.netia.net ITALY Via Cipro, 102

IT-25124 Brescia - Italy Tel. : +39 (030) 242 71 34 Fax : +39 (030) 247 81 82 [email protected]

UNITED KINGDOM C/O 400 Capability Green Luton LU1 3LU - England Tel./fax : +44 (208) 464 4244 [email protected]

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INFORMATION TO SHAREHOLDERS

Letter to the shareholders 3

Board of Directors as at 31/12/02 4

Historical background 5

Management Report 7

Shareholding 14

Result allocation 15

Stock Market Report 16

PRODUCTS AND MARKETS

Integrated production systems 20

Broadcast solutions 22

Radio management systems 26

Digital cinema – cinestore 28

Professional fairs 2002 30

CONSOLIDATED FINANCIAL STATMENTS

General information 33

Corporate governance 35

Auditor’s report 38

Income statement 39

Balance sheet 40

Appendices and comments 42

Cash flow statement 52

PARENT COMPANY FINANCIAL STATMENTS

Income statement 55

Balance sheet 56

Appendix 58

Major Technical Terms 59

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[ 2 ] A N N U A L R E P O R T 2 0 0 2 A N N U A L R E P O R T 2 0 0 2 [ 3 ]

EVS BROADCAST EQUIPMENT S.A.

NETIA S.A. France

NETIA Inc. USA • New Jersey Branch Asia Pacific

Hong Kong Branch Pacific Australia

Australia • Sydney Branch Paris France • Paris Branch Benelux Belgium • Liège FAR S.P.R.L. Belgium • Liège/Huy MECALEC SMD S.A. Belgium • Liège EVS Broadcast Equipment Ltd

Hong Kong

EVS Broadcast Equipment Inc. USA • New Jersey

EVS France S.A. France EVS Italia Srl Italy EVS Broadcast UK Ltd United Kingdom 100 % 99.76 % 95 % 100 % 99.99 % 99.99 % 100 % 49.95 % 49.50 %

I N F O R M A T I O N T O S H A R E H O L D E R S

Branch Asia Pacific Hong Kong

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The overall economic environment has not improved compared to 2001. However, EVS successfully reached the 2002 full-year forecast announced early in the year. Even with the week economy in the beginning of 2003, we foresee a fruitful year for EVS.

This slower economic growth led us to make some reorganisation decisions, notably the reduction of staff down to 175 in order to improve overall profitability. Our development potential remains strong and we thank all our colleagues for their continued commitment to the Group success.

The revenues for 2002 amount to EUR 36.4 million, i.e. 5% more than 2001, and the net result from operations reached EUR 4.7 million or EUR 1.74 per share, equivalent to a Price/Earning ratio of 11.5. This profit allows us, for the fifth consecutive year, to propose the payment of a gross dividend of 48 Eurocents per share.

In a very bearish stock market, the stock price succeeded in remaining quite stable over the period. Given the relatively low stock valuation, EVS pursued its own shares buy back program which has been initiated 2 years ago. EVS currently owns approximately 5% of its shares.

As announced in 2001, the third generation of our hard disk recorders has reinforced our worldwide leadership in the field of Live Slow Motion replays and highlights. It has also allowed the successful release of the High Definition Servers with first major sales during the last quarter of 2002. This promises a future steady growth for these new products in the USA, Japan, Korea and Australia before that new television format reaches Europe.

The Company’s financial position continues to improve, going from a net debt of EUR 0.5 million in 2001 to a net cash position of EUR 3.5 million in 2002. Long-term debts amount to EUR 6.0 million, mainly for financing fixed assets (buildings). In order to boost our future growth, we invested in a new 3.200 m2 building, which will be ready to be occupied in May 2003. EVS ended the year with EUR 9.5 million in cash and marketable securities versus EUR 5.6 million in 2001.

We are also enjoying the success of our diversification policy in other areas of digital video. Indeed, RTL-TVi has chosen EVS’ CleanEdit to equip its future digital newsroom. This installation will be a sound reference for our non-linear editing MPEG-2 long GOP compression technology.

We also deployed our servers in more than 40 digital cinemas, notably in Sweden, China and Brazil. This demonstrates the potential of the Digital Cinema technology to equip the

100.000 cinema screens around the world.

Despite the overall weak environment in 2003, we expect to see a slight increase in sales and a much stronger growth in earnings.

Pierre L’Hoest Laurent Minguet

Managing Director Managing Director

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[ 4 ] A N N U A L R E P O R T 2 0 0 2 A N N U A L R E P O R T 2 0 0 2 [ 5 ] Francis BODSON (55) (1)

Director since September 25, 1998. Francis Bodson is Deputy Managing Director of CANAL+ Benelux and is also the Head Engineering of Canal+ Belgium since its start in 1988. He was Director of Engineering at the RTBF («Radio Télévision Belge de service de la Communauté Française de Belgique») for fifteen years (1973-1988). He graduated as a civil engineer in electronics at the University of Liège and is specialized in acoustics.

Christophe CARNIEL (36)

Director since September 7, 1999, Christophe CARNIEL is currently the Managing Director of NETIA. In 1993, he founded NETIA with Pierre KEIFLIN. He holds an engineer degree from the “Ecole des Mines” in Alès (France). Prior to founding NETIA, Christophe Carniel was working for three years as Project Manager for a Company responsible for the development of interactive record playing terminals, ordered by FNAC stores.

Michel COUNSON (42) (2)

Chairman of the Company since it was founded in 1994. He graduated in 1982 from the «Institut Electronique» in Liège. He started his career as a hardware engineer in 1983 with TECHNIQUE DIGITAL VIDEO S.A. before founding his own Company in 1986, VIDEO SYSTEM ENGINEERING S.P.R.L., working in partnership with EVS on numerous projects. Over the time he has acquired a significant share of EVS. Working beside Pierre L’HOEST and Laurent MINGUET, he is part of the management team of the EVS Group and is Manager of the hardware department.

ING (former BANQUE BRUXELLES LAMBERT) – Arnaud LAVIOLETTE (41) (3) Director of EVS since June 1997, repre-sented by Arnaud LAVIOLETTE, Head of the Investment Banking Department.

CYTINDUS S.A – Michel DELLOYE (46) (3)

Director of EVS since June 1997, represented by Michel DELLOYE. Michel DELLOYE runs his own investment management Company. From 1992 to 1996 he was the Managing Director of the «Compagnie Luxembourgeoise de Télédiffusion» (CLT-UFA, now RTL Group), the largest European TV and Radio broadcasting Company. He previously worked in various positions (Financial Manager, General Manager) for the Bruxelles Lambert Group (GBL).

Jean DUMBRUCH (51)

Jean Dumbruch graduated as an engineer in electronics. He has been playing an active role in the Company since it was founded. He is Director of several companies and is now the Company’s administrative Director.

Jacques GALLOY (32) (2)

Director since May 21, 2002, Jacques GALLOY is Chief Financial Officer of EVS. He is a commercial engineer from HEC Liège and had been working for Coo-pers & Lybrand in Luxemburg and then for RTL Group as Financial Controller of RTL Netherlands and Business Development Manager TV & Radio prior to joining EVS.

Laurent LEVAUX ( 47) (1)(3)

Director since December 27, 2000, Laurent LEVAUX is the Managing Director of ABX Logistics Group and lecturer (Corporate Strategy) at HEC (Hautes Etudes Commerciales) of Liège. He is also Director in other Belgian Companies. He holds a degree in Applied Economics from the University of Louvain (Belgium) and a MBA from the University of Chicago. He occupied different positions in Mc Kinsey & Co and was CEO of CMI Group during 7 years.

I N F O R M A T I O N T O S H A R E H O L D E R S

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Pierre L’HOEST (44) (1) (2)

Managing Director of the Company since it was founded in 1994. He graduated from the «Académie d’Architecture» (Academy of Architecture) in Liège as an architect specialized in computer processing and 3D modelling. Since 1984, he acquired a broad expertise in video simulation production. He was involved in the foundation of EVS in 1994 following the purchase of the Company’s assets and is Head of the Research and Development department together with Laurent MINGUET and is also supervising Production and European Sales.

Laurent MINGUET (43) (2)

Managing Director of the Company since it was founded in 1994. He graduated in 1982, as a physicist engineer from the University of Liège, specialized in digital analysis. With Pierre L’HOEST and Michel COUNSON, he contributed to the creation of EVS in 1994 and is in charge of the Research and Development department. He is also in charge of the D-Cinema de-partment and supervises the Sales outside the European Union.

(1) Member of the Compensation Committee (2) Member of the Executive Committee (3) Member of the Audit Committee

H I S T O R I C A L B A C K G R O U N D

Laurent MINGUET, Pierre L’HOEST and Michel COUN-SON, who bought the EVS logo and some assets of an existing Company already active in this sector, founded EVS Broadcast Equipment in February 1994. The found-ers of EVS aimed at developing equipment for the digital recording of pictures on hard disks (disk recorders) for professionals within the television industry: the Broad-casters.

In September 1995, EVS signed a contract with PANA-SONIC, the exclusive supplier of Broadcast equipment for the Atlanta Olympic Games, to develop a slow motion system. This partnership allowed Panasonic to release their first «Super Motion” camera and EVS to develop the corresponding hard disk recorder, which were suc-cessfully deployed at those Summer Olympic Games. In 1997, EVS opened two subsidiaries, EVS Inc. in the United States and EVS Ltd in Hong Kong, to market their equipment on the American and Asian continents. In April 1998, EVS acquired the Liège based Company VSE, known worldwide for its range of picture mosaics. Founded in 1986, VSE had worked alongside EVS for many years in design and electronic production work. In July 1998, EVS opened a subsidiary in France in order to follow up the important developments of this market.

In October 1998, EVS listed on the first market of the Brussels Stock Exchange and collected 7 436 806 EUR. This amount has been used to guarantee the expansion of the Company, increase its reputation and attract top quality employees.

In 1999, EVS set up a subsidiary in Italy and one in United Kingdom.

On September 7th, 1999, EVS acquired the French Com-pany NETIA, well known in the digital Radio world, TV and Internet Broadcast.

In 2000, the Group booked record sales and earnings of EUR 38 and 6 million.

In 2002, following the structural economic slump in South America, EVS decided to reorganize its sales force and thus pass the responsibility of these markets have under the New York office.

Today, over 2 000 EVS and over 1 000 NETIA systems are in use in over 60 countries at 300 prestigious Radio and Television stations.

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NETIA • Rome • 15/01/2002 Public Italian Radio Television RAI has initiated its network digitization with the Radio-Assist 7 software suite.

EVS • Salt Lake City • 1/02/2002 EVS staff at the Winter Olympic Games of Salt Lake City.

NETIA • Chicago • 25/02/2002 Sporting News Radio has selected NETIA for the digitization of its (digital) audio systems (contradiction) for its central operations in Chicago.

EVS DC • Sao Polo • 3/04/2002 In Brazil, EVS in partnership with UCI and Casablanca Digital System announces the opening of the second digital screen in Sao Paulo.

EVS • Seoul • 2/05/2002 EVS delivers High Definition Servers for SBS Television in South Korea.

EVS DC • Cannes • 20/05/2002 EVS chosen for the digital screening of STAR WARS Episode 2: «Attack of the Clones» at the Cannes Film Festival.

EVS • Tokyo, Seoul • 12/06/2002 EVS participates at the Soccer World Cup in Korea and Japan with its team and 100 Live Slow Motion Recorders.

NETIA • Sydney • 21/06/2002 ABC Radio, the main National Public Australian radio pursues its digitization process with Radio-Assist.

EVS DC • Stockholm • 30/08/2002 First Swedish Digital Cinema projection in the 7 screens pilot circuit of Folkets Hus & Parker.

NETIA • Athens • 19/09/2002 Radio Athens 98.4 FM acquires Radio-Assist 7 in the light of Athens 2004 Olympic Games.

EVS • Columbia • 4/10/2002 ASEM is the first truck Company in the USA to integrate the High Definition LSM XT of EVS.

NETIA • Ankara • 15/10/2002 TRT, the national Turkish radio, prefers Radio-Assist 7.0 for its workflow automation.

EVS • Barcelona • 23/10/2002 Mediapro Group, one the European leading sport TV production companies, adopts the XT technology and upgrades its 26 systems into 6 channels networkable LSM’s.

EVS • Burbank • 2/01/2003 Bexel Inc, one of the leading US TV production rental companies, rents High Definition LSM’s to CBS Sports for the National Football League, the most popular sport in the USA.

EVS • Hilversum • 17/01/2003 Cinevideogroep, the important Dutch sport production corporation acquires the very first maXS server which has been developed by the EVS teams.

EVS • Melbourne • 26/01/2003 Seven Network Australia uses the “Live SportServer” at the Australian Tennis Open for Slow Motion, network, automatic archiving and non-linear editing.

EVS DC • Las Vegas • 15/03/2003 The “Digital Cinema Providers Group (DCPG)” is launched by the equipment manufacturers at ShoWest 2003 to promote and ease Digital Cinema Initiatives.

NETIA • Claret • 25/03/2003 TurnKey Media System is selected as US distributor for the Radio-Assist v7.1 products suite.

K E Y F A C T S

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M A N A G E M E N T R E P O R T 2 0 0 2

Consolidated figures, audited, in million EUR 2000 2001 2002 % 02/01

Operating income 38.0 35.4 37.3 +5 %

Sales 36.6 34.8 36.4 +5%

R&D expenditures -3.5 -5.0 -6.2 +24%

Gross operating cash-flow 12.2 10.6 10.3 -3%

Operating result (EBITA) 10.9 9.0 7.8 -13%

EBITA margin % 29% 25% 21% n.c.

Goodwill amortization -2.5 -2.3 -2.3 n.c.

Financial result (incl goodwill amortization) -2.7 -2.5 -2.3 n.c.

Profit from operations before taxation 8.2 6.3 5.5 -15%

Extraordinary items -1.0 -0.7 -0.7 n.c.

Profit before taxes 7.2 5.6 4.8 -17%

Income taxes -4.3 -3.5 -2.8 -22%

Net profit 2.9 2.1 2.0 -9%

Net profit – share of the Group 2.8 2.2 2.0 -9%

Net profit from operations 6.3 5.1 4.7 -8%

Net profit margin 17% 15% 13% -17%

Net cash-flow 7.7 6.6 6.8 +3 %

Per share data, in Euro

Number of shares as of 31 December 2 863 952 2 863 952 2 863 952

Number of shares excluding own shares 2 863 952 2 784 857 2 727 016

Net profit from operations by share 2.20 1.85 1.74 -6%

- Consolidation: EVS S.A., EVS France, EVS Hong Kong, EVS USA, EVS Italy, EVS UK, NETIA

- The Goodwill amortization for VSE (as of 01/01/98) and NETIA (as of 01/07/99) is carried out over 5 yrs

- The net profit from operations is the net profit (share of the Group) excluding goodwill amortization and extraordinary income, taking into account tax items

- The net profit margin is the net profit from operations divided by the operating income

Turnover has increased by 5% compared to 2001 despite the global market recession and the US dollar evolution. This confirms the good resistance of EVS to the effects on the Broadcasters’ (Media & Entertainment) market undermined by the slowdown of advertising spending and investments in digital bouquets. This good performance is due to the success of the third generation of EVS’ LSM’s, the LSM-XT, particularly in Europe. R&D expenses represent 17% of the operating income (EUR 6.2 million). The main R&D priorities have been the Digital Cinema, safety of the radio databases and mainly the focus of converging technologies linked to the Sport, Live Entertainment and editing solutions for journalists. As a consequence, EVS now offers an integrated solution that goes beyond the slow motion recorders. During the year, EVS installed more than 40 digital cinema servers all over the world.

Given the weak environment, which affects the media industry, the Group staff has been carefully reduced from 190 to 175 employees over the year 2002. The gross operating cash-flow of EUR 10.3 million is 3% lower than in 2001 but still represents 28% of the Group’s 2002 revenues. This allows the Group to self-finance its growth and its investments while paying-out a dividend.

The goodwill amortizations of EUR 2.3 million are in line with 2001 and represent one year of amortization derived from the VSE and NETIA acquisitions in 1998 and 1999. These goodwill’s are amortized over 5 years and will be almost fully amortized at the end of 2003. The 2001 net debt of EUR 0.5 million has been converted into a net cash position of EUR 3.5 million in 2002 while a EUR 1.4 million dividend has been paid in 2002.

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[ 8 ] A N N U A L R E P O R T 2 0 0 2 A N N U A L R E P O R T 2 0 0 2 [ 9 ] At year-end, long term debts amount to EUR 6.0 million,

mainly financing fixed assets and buildings. The good financial health of the Group is expressed by its low debt/equity ratio of 0.24.

As previously announced, the Group has pursued its own shares buy back program. At December 31st , 2002, the Group held 4.8% of its own shares.

As expected, the net return on sales of the Group is about 13%. EVS Group has achieved a net profit from operations (after tax) of EUR 4.7 million in 2002.

Group Turnover

The analysis of the operating income shows a 5% growth compared to 2001, notably thanks to the contracts for the Salt Lake City’s Olympic Games and the Soccer World Cup, and that in spite of the negative US dollar evolution.

CONSOLIDATED OPERATING INCOME EVOLUTION (in EUR million)

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The EVS Group sales are divided up by segment as follows :

Products (in million EUR) 2001 2002 % 2002 Turnover % 02/01

Slow motion recorders (Sport) 19.4 26.4 73 % + 36 %

Broadcast Solutions 9.1 4.2 11 % - 54 %

Radio Management Systems 6.3 4.9 14 % - 23 %

Digital Cinema Servers - 0.9 2% N/A

TOTAL 34.8 36.4 100 % + 5 %

- The turnover corresponds to the operating income excluding the stock variations of finished goods and other revenues

In the current recession period, EVS’ star product, the slow motion recorder, enjoys a 36% growth, namely +15% excluding contracts for major sporting events. The third generation of Live slow motion recorders («LSM-XT») is a clear answer to the market need for production and distribution of live transmissions, thus confirming EVS’ leadership in this segment. The HDTV (High-Definition television) market in the USA and in Asia is showing a promising future for the Group. On the other side, the sales of broadcast solutions to the TV industry have dropped by 54% in a very competitive

market environment. One should observe that 2001 took advantage of the last deliveries of OEM contract with an important American client (with an impact of 2.2 million EUR). France 3, Canal+, RTL, PBS (USA), ABC (Australia) have renewed their trust in EVS and Netia products. The 2002 projects postponements must be positive for 2003 as the present order book gives evidence.

Radio Management Systems experienced a 23% de-crease in an expectant market by virtue of the drop of advertising incomes. The “Radio-Assist” software already equips numerous radios all over the world.

I N F O R M A T I O N T O S H A R E H O L D E R S

BROADCAST SOLUTIONS RADIO CINEMA SPORT

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The digitization processes are ongoing even though they have slowed down in 2002. The national Turkish and Malaysian broadcasters, have selected the product «Radio-Assist» to completely reshuffle their business processes. The RAI (Italy) has also signed an important long term maintenance contract.

EVS Digital Cinema has deployed more than 40 servers (8 in Sweden, 4 in Brazil, 6 in Italy, 8 in China, 3 in USA etc.). Today, there are around 140 systems installed in

the world. The growth of the digital screenings in theatres has accelerated with the worldwide release of StarWars II in June 2002. EVS also contributes to the emergence of alternative business models for projection of local content like in Sweden, China or Brazil. EVS’ worldwide distribution network has permitted the spread and the support of the products. EVS does not expect a massive digital cinema expansion in the short term.

The EVS Group sales are divided up by segment as follows : EUROPE_AFRICA

MIDDLE-EAST AMERICAS

ASIA PACIFIC

The Group confirms its international expansion with a strong commercial presence on every continent. The temporary slow down of the American sales has been balanced by the strong European and Asian performances in 2002. The decrease in the Americas

is explained by the termination of an OEM contract in 2001 (EUR 2.2 million), by the economic crisis in South America and by the US Dollar effect. However, the current order book shows a strong improvement for the North American market for EVS products.

The Group has expensed 17% of its sales in R&D, compared to 14% in 2001 to reach EUR 6.2 million. In accordance with the Group accounting rules, these costs are not activated but are prudently and completely expensed over the period.

Today, more than 70 high level engineers work on the conversion of broadcasters from the age of tape towards digital and IT based solutions. Tomorrow, television, radio and cinema will be built more and more around a network of servers with dedicated applications like CleanEdit, the non-linear editing software. R&D efforts have sustained the convergence of the various solutions of acquisition (slow motion etc), editing and

broadcast. In doing so, EVS has clearly positioned itself as a reference for integrated network solutions for the sport but also for Live Entertainment and the increasing market for Digital Newsrooms.

These investments in R&D permitted EVS to gain new types of contracts with customers ranging from a solution of Video-on-Demand for a luxury cruise boat to the digitalization of the newsroom of a significant European TV network. NETIA launched the MBOX, musical solution for a chain of shops. NETIA also launched the version 7.1 of the Radio-Assist software with functionalities of advanced security features for database. NETIA continued the development of a

Research & Development

Regions (in million EUR) 01 02 % Sales 02 % 02/01

Europe, Middle-East and Africa 19.9 21.4 59 % + 8 %

Americas 9.1 6.6 18 % - 27 %

Asia Pacific 5.8 8.4 23 % + 45 %

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[ 1 0 ] A N N U A L R E P O R T 2 0 0 2 A N N U A L R E P O R T 2 0 0 2 [ 1 1 ] solution for the bandwidth management of the transfer

of video files over a dedicated exchange network. This being done without forgetting the development of the servers for the digital cinema, intended to replace the film 35mm in the medium term.

The good margins that are derived thanks to a well-mixed product portfolio allow EVS to finance its growth and to prepare today its future successes while balancing profit and investments.

Manpower

By prudence in a difficult market, EVS Group reduced its manpower by 8% (15 employees) in 2002 both in Belgium and abroad going from 190 people at the start of the year to 175 at year-end. The average arises to 183 people in 2002 against an average of 175 people in 2001. The total employment costs amounts to EUR 10.8 million, which is 29% of operating income.

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HEADCOUNT EVOLUTION BY SUBSIDIARY AND BY DEPARTMENT IN FULL TIME EQUIVALENTS :

Split as of Services & Research & Sales & Production & TOTAL December 31, 2001 Administration Development Marketing Operations

EVS Belgium 16 46 16 25 103

EVS Europe Offices 8 8

NETIA 8 28 14 19 69

EVS USA 6 6

EVS Hong Kong 4 4

TOTAL 24 74 48 44 190

Split as of Services & Research & Sales & Production & TOTAL December 31, 2002 Administration Development Marketing Operations

EVS Belgium 15 44 11 25 95

EVS Europe Offices 7 7

NETIA 7 27 12 17 63

EVS USA 5 1 6

EVS Hong Kong 4 4

TOTAL 22 71 39 43 175

I N F O R M A T I O N T O S H A R E H O L D E R S

R&D EXPENSES (in EUR million)

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Earnings

DSO (Days of Sales Outstanding) has been reduced from 126 to 71 days in particular thanks to a more effective recovery policy. The Group has written off receivables and obsolete stock items for approximately EUR 1 mil-lion.

As announced, the operating margin (EBITA) exceeds 20% of operating income to reach 21%. Net operating profit - net result excluding goodwill amortization and extraordinary items (taking into account tax elements) – amounted to EUR 4.7 million against EUR 5.1 million in 2001, i.e. a reduction of 8%. However, the Group’s net profitability, excluding goodwill amortization and extraordinary items, remains high at 13%.

Cash-Flow and Net cash position

The 2002 net Cash-Flow of EUR 6.8 million has transformed the net debt position of EUR 0.5 million at December 31, 2001 into a positive net treasury of EUR 3.5 million at December 31 2002. This taking into account the buy back of own shares for EUR 1.2 million, the dividend of EUR 1.4 million paid in June 2002 and long-term financing of the Group of EUR 6.0 million at the end of 2002. The Group’s excellent financial health at December 31 2002 is also illustrated by its low ratio debts / equity of 0,24. The residual goodwill of EUR 2.7 million will be completely amortized over the next 18 months.

Investments

Production of the equipment manufactured and marketed by EVS and NETIA does not require important tangible investment. Nor does R&D require any consi-derable investment, since engineers and programmers work directly on the machines to be sold or on PC type equipment for the software development. The net asset value of tangible fixed assets is EUR 0.96 million as at December 31, 2002.

The Group policy is to own its buildings and to finance them with long-term loans. The net value of the land and buildings of Liège and Montpellier amounts to EUR 4.0 million. A new 3 200 m2_{building is nearly ready and}

will costs approximately EUR 3.8 million, out of which EUR 3.0 million appear in Building in Progress as at De-cember 31, 2002 (versus EUR 0.9 million as at DeDe-cember 31, 2001).

Furthermore, the Group has received confirmation of regional state and European grants and subsidies, that explains the EUR 0.7 million increase of investment grants. This amount is depreciated at the same rhythm as the related buildings.

EVS acquired VSE in 1998 and NETIA in 1999. The net remaining value of goodwill is about EUR 2.7 million as at year-end.

EVS has also acquired minority stakes in two companies FAR and MECALEC SMD which are accounted for at equity. The positive differences resulting from the first application of the equity method were EUR 186.8 thousand and the remaining value at year-end is zero.

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EVOLUTION OF NET PROFIT FROM OPERATIONS (in EUR million)

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Shares buy-back and dividend

The Group devotes around 30% of its cash-flow to the Com-pany development, 30% to the strengthening of its balance-sheet structure and 40% to shareholders interest : on the one side through the dividend distribution (EUR 1.4 million in June 2002) and on the other side through the own shares buyback program (EUR 1.2 million in the course of 2002). As previously announced, the Group carried out in 2002 its program to buy back its own shares. At December 31, 2002, the Group held 4.8% of its own capital (136.936 shares).

The Board of Directors intends to maintain its dividend policy with a payout of 30% of the Net operating profit, which corresponds to 70% of the Net profit – share of the Group. So, the Board of Directors will propose the following to next May 20, 2003’s General Shareholders Meeting: EUR 0.48 per share dividend payment, excluding the own shares, i.e. EUR 1 308 968. This decision to distribute a dividend underlines the quality of the Company and its ability to generate and distribute profits each year while at the same time pursuing its investments.

Outlook 2003

EVS Group is a pioneer in the digitization of media companies and is determined to maintain its growth thanks to its intrinsic product quality and with the confidence from its large number customers. The fast adaptation to the market needs, the service quality and the equipment reliability remain the key success factors for the Group both in Europe and in the rest of the world. In starting on new market opportunities like digital cinema, EVS relies on its technological expertise and commercial dynamism to dominate new niches.

Today, the Group is a leader on its worldwide niches. The Group intends to reinforce these positions and to create new opportunities by widening its line of products. For example, the solutions developed for the Sport were

adapted to the new needs for digitization of the editing desks of television journalists. This highlights the convergence of the radio solutions developed by NETIA and the broadcast solutions developed by EVS. In the year 2003, EVS Group will continue to benefit from the growth of its Sport activities / LSM, in particular in Asia and in the United States. The Group anticipates new significant orders of di-gital Solutions and radio management systems without for-getting the continuation of the deployment of the digital ci-nema servers. The Group will carry on its costs control. Even if it is confirmed that the digitization process of the media industry corresponds to a fundamental strategic need, the whole will also depend on the good news on the side of the incomes of advertising and the digital bouquets.

The order book as of 1 January 2003 amounted to EUR 8.3 million. For the year 2003, the EVS Group foresees a slight growth of its sales in comparison of 2002 but a strong growth of its net operating profit. The gross margin will be better than in 2002 : there should be less non-recurring charges and the tax rate will roughly be lower thanks to the new Belgian tax law. The Group intends to pursue its buy back program of own shares according to opportunities of the stockmarket. �� �� �� �� �� �� �� �� �� ��  �� �� �� ��

I N F O R M A T I O N T O S H A R E H O L D E R S

SPEED TO AIR

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Miscellaneous

During this financial year, parent Company’s auditor, ERNST & YOUNG, Statutory Auditors S.C.C. (B160), represented by Philippe PIRE and associated Companies provided consulting services valued at 21 282.06 EUR in the following areas: assistance in preparing consolidated accounts, tax advices, IFRS/IAS diagnostic and miscellaneous other issues. The Annual General Meeting of 21st May 2002 voted to renew the Directors’ authorisation to buy back the Company’s shares, subject to specific conditions of timing and value. This buy-back policy is carried out in order to stabilise and support the share price, and also to demonstrate the Company’s confidence in its future. Most share purchases have taken place within the framework of a contract entered into with the stockbrokers «Dewaay» (HSBC Group) in 2000. As a consequence

of its reorganisation, Bank Dewaay stopped its liquidity providing services. After a search, EVS has selected Delta Lloyd Securities as new liquidity provider as from February 1, 2003. At 31st December 2002, EVS held 4.8% of its own capital, or 136 936 shares, with a total value, based on the stock price at the end of the year (EUR 20.00), of EUR 2.7 million. The Board of Directors proposes to the Annual General Meeting of 20th May 2003 to renew this authorisation for a period of 18 months.

The same General Meeting of 20th May 2003 decided to issue additional 70 000 warrants. At 31st December 2002, 83 400 of the 150 000 warrants issued for staff had been allocated.

The Board of Directors Liège, April 25, 2003.

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[ 1 4 ] A N N U A L R E P O R T 2 0 0 2 A N N U A L R E P O R T 2 0 0 2 [ 1 5 ] L. Minguet and Family P. L'Hoest and Family M. Counson DTV S.A.

EVS Broadcast Equipment S.A. _{(ING, Cytindus, BIP)}Institutionnals Public and misc. Own shares 33.3 % 33.3 % 33.3 % 34.7 % 15.4 % 4.8 % 36.3 % 3.2 % 3.2 % 2.4 %

S H A R E H O L D I N G A S A T A P R I L 4 , 2 0 0 3

I N F O R M A T I O N T O S H A R E H O L D E R S

Situation as it appears from the last official statements received by the Company and the last modifications of the shareholders’ register until April 4, 2003 :

Shareholders Number of shares in % in % diluted

(with 150.000 issued warrants) Linked shares

DTV 994 029 34.7 33.0

Pierre L’Hoest and Family 91 125 3.2 3.0

Laurent Minguet and Family 91 125 3.2 3.0

Michel Counson 69 809 2.4 2.3

SUB-TOTAL linked shares 1 290 578 43.5 41.3

CYTINDUS S.A. 137 200 4.8 4.5

ING Group (BBL) 156 000 5.4 5.2

BGL Investment Partners SA 150 056 5.2 5.0

Public and misc. 1 037 592 36.3 34.4

Own shares 138 016 4.8 4.6

Issued warrants 5.0

TOTAL 2 863 952 100.0 100.0

DÉVELOPPEMENT TECHNOLOGIQUE VIDÉO (DTV) is a Holding Company, whose purpose is the management and financing of companies in which it holds a stake. It is owned equally by Pierre L’HOEST, Laurent MINGUET and Michel COUNSON.

ING Group (former BBL) is a large international Bank which has accompanied EVS during its continued growth since 1997. It is represented by Mr Arnaud LAVIOLETTE.

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CYTINDUS S.A. is an investment Company essentially owned by Michel DELLOYE and founded in 1997 with the purpose of investing in expanding companies, actively contributing to their long-term management.

BGL INVESTMENT PARNERS (BIP) is an investment Company listed on the Luxembourg Stock Market. It is specialised in the development financing of strong growth companies located in the large neighbouring region of Luxembourg.

On 31 December 2002 as well as on 4 April 2003, there are 1 131 354 registered shares of which 994 029 are owned by DTV, 137 200 by CYTINDUS S.A. and 125 by five other shareholders.

There are 1 457 598 bearer shares and 275 000 physical bearer shares.

The Board of Directors examines the results of the last financial year and proposes at its Annual General Mee-ting to distribute those profits in the best interest of the Company and its shareholders. Bearing in mind the legal restrictions on profit distribution, the Board of Directors can propose a dividend policy that will respect the Com-pany’s investment and acquisition requirements.

In the IPO prospectus of October 1998, EVS announced dividends of around 30% of consolidated net profit from operations. The healthy financial structure of EVS has permitted the Group to comply with its commitment as illustrated on the following chart :

P R O F I T A L L O C A T I O N P O L I C Y

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GROSS DIVIDEND PER SHARE (in EUR)

% OF NET PROFIT FROM OPERATIONS

The Board will propose at the Ordinary General Meeting of 20 May 2003 a dividend of 0.48 EUR per share, i.e. 28% of net profit from operations. This decision emphasizes the quality of the Company and its capacity for making profit, paying dividends and going on with investments.

Dividends are payable at following financial institutions: - Fortis Bank SA, Montagne du Parc, 3,

1000 Bruxelles, Belgium

- ING (BBL) Bank SA, Cours Saint-Michel 60, 1040 Bruxelles, Belgium

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I N F O R M A T I O N T O S H A R E H O L D E R S

After the euphoria of 1998 and 1999, the Company’s valuation returned to a more reasonable Price Earning Ratio (P/E): it declined from 39 (31/12/98) to 27.5 (31/12/99), 15.4 (31/12/00) then to 10.7 (31/12/01). Due to stock market trends by the end of 2002 and low liquidity of the share, the P/E at the closing date amounts to 12.1 and even 11.5 if the 4.8% own shares are taken into account. The average number of shares traded per month over the year 2002 is approximately 50 000.

The maximum price achieved over 2002 was 27 EUR on February 27 and the minimum price was 14 EUR on October 10.

Following the IPO, the stock was back to more reasonable levels in 1999. The EVS stock price did actually not enjoyed the overall peak of technology and media stocks during 2000. On the contrary, EVS followed those stocks in September 2001. During the period between January 1, 2000 and March 31, 2003, Dow Jones Euro Stoxx Media™ et Dow Jones Euro Stoxx Technology™ indices have lost 74 % while BEL20 and EVS respectively lost 53 and 54 %

S T O C K M A R K E T R E P O R T

COMPARED EVOLUTION OF STOCK PRICE

AND P/E RATIO

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COMPARED EVOLUTION OF STOCK PRICE

SINCE JANUARY 1, 2000 (BASE 100)

Market and listing

EVS shares are quoted conti-nuously on EURONEXT and form part of the “253. Electronic Equipment“ sector, which also includes the Companies THOM-SON, BARCO NEW and PHILIPS. The Company was listed on the first market of the Brussels Stock Exchange in October 1998 at a price of 37.2 EUR.

EVS has been selected to be part of the “Next Economy“ segment, which includes companies such as MOBISTAR, BARCO NEW, IBA, IRIS Group and TELINDUS. In order to fit in with the requirements of these segments, the Company will publish its accounts according to the IAS/ IFRS standards in 2005 at the latest. EVS is ready for this conversion.

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ADJUSTED VELOCITY

Velocity and Liquidity Providing

In the course of 2002, around 15 % of the Company sha-res have been traded. An average of 2 000 shasha-res have been daily traded on Euronext, which represent a 41% improvement compared to 2001. With a true float of 30-35 %, EVS has a high adjusted velocity of 44 %, also in progress compared to 2001.

Annual Average Standard Adjusted traded daily velocity velocity volume volume (1) (2)

1999 630 095 2 864 22 % 63 %

2000 552 939 2 513 19 % 55 %

2001 314 982 1 432 11 % 31 %

2002 443 630 2 017 15 % 44 %

(1) Standard velocity represents the annual volume traded on the stock market and expressed as a percentage of the total number of shares of the Company (2 863 952).

(2) Adjusted velocity represents the annual volume traded on the stock market and expressed as a percentage of the unidentified float (around 35 %).

In order to encourage the liquidity of the share and avoid major fluctuations in its price, a market stimulation contract was concluded on October 2000 with the Company “Dewaay, member of HSBC”. Given internal reorganisation, Dewaay stopped the liquidity providing agreement. EVS then selected Delta Lloyd Securities as new liquidity provider as from February 1, 2003. This stock-broker also executes the acquisition of the Company’s own shares within the limits fixed at the Extraordinary General Meeting on 21 May 2002.

Innovative Financial Communication

In order to improve the financial communication and to highlight the new international and multi products dimension of the Group, EVS teams have developed a new portal website for professional and financial visitors : www.evs-global.com.

This site includes a vertical “investor relations” with last press releases, shareholders calendar, corporate governance, last available financial analyst’s reports and recent annual reports in pdf format. It also presents the four business activities of the Group: Sport (slow motion disk recorders), Broadcast Solutions, Radio Management Systems and Digital Cinema Servers. The investors’ area was also improved and allows both better visibility and transparency. EVS regularly participates in various road shows for institutional or private investors. If you wish to be informed about these meetings or automatically receive our e-news and press-releases, please mail to: EVS Broadcast Equipment S.A.

Jacques Galloy,

CFO & Corporate Communication

16 rue Bois Saint Jean 4102 Ougrée, Belgium or e-mail to: [email protected]

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P R O D U C T S A N D M A R K E T S

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EVS Broadcast Equipment is a designer and manufacturer of digital broadcast equipment and automation software for the radio and television industry. The EVS Group continues to expand within its core business sector as well as expanding into new markets. This growth includes the cinema segment, which is currently undergoing a transition into the digital world.

EVS maintains its leading edge trough a dynamic and creative R & D approach. The products are developed to fit into niche markets, while manufactured in small volumes with a high added value.

EVS has established its roots within the sports television broadcasting business. The Live Slow Motion (LSM) system has become a worldwide standard since it revolutionized the industry in the early 1990s. EVS has sustained a steady growth through worldwide marketing and continued excellence in post-sales support. This stability enabled strategic diversification through various acquisitions but mainly through developments brought about by an ambitious R & D program.

Today, EVS continues to show their expertise in the sports broadcasting market with the LSM XT and its networking capabilities. These latest developments have led to a full range of products, which allows production to do away with the last remaining needs of tape in their mobile sports productions. This full compliment of options embraces the complete production workflow: from the capture of camera feeds; to the non-linear editing and archive; up to the final play-out. This range of modular solutions were launched at the International Broadcast Convention (IBC) at Amsterdam in September 2002. As a result from the request of NHK, the first Japanese national television station, for the Sydney Olympics in 2000, EVS has developed the High Definition (HD) version of the LSM, the HD LSM. In 2002, with the increase of the HD demand, EVS delivered a large quantity of HD LSM in the United States and Asia. By comparison with a Standard Definition signal (350,000 – NTSC, US & Japan or 400,000 – PAL, Europe and Australia – pixels per image), the HD image offers a significantly greater number of pixels per image (e.g. 1920 x 1080 represents 2 million pixels). Therefore, these HD images require approximately 6 times greater bandwidth resulting in a superior picture quality. The most recent range of EVS broadcast video servers has offered an even larger array of Broadcast

Solutions to EVS customers and clients. This choice of

servers includes models for live broadcast applications

as well as solutions for automation play-out systems. The EVS DTV®_{servers offer unique features that follow a}

“MPEG-2, all the way through” concept. These servers are optimal solutions for cable and satellite operators, as well as Pay-TV platforms that require the management of an ever-increasing number of “digital bouquets”. The acquisition of NETIA, world leader in radio

management and broadcast automation software,

augmented the EVS Group expertise into automation, Internet services and networking technology. Such an addition has added to the diversity of the respective R & D teams that collaborate closely, exchanging and sharing their wide base of know-how. These collaborations have lead to the use of NETIA’s play-out automation in the EVS DTV®_{servers, a combination which has}

produced an extremely powerful solution for television. In addition, web streaming devices and other Internet based products are being released with a rapid pace. FAR, with EVS stake of 49.95 %, designs and builds

professional active and passive loudspeaker systems and complete studio interiors.

CineStore incorporates a family of EVS High Definition

servers configured to fit the needs of the cinema business as it embarks on the replacement of 35mm film projectors by high performance digital projectors. EVS is contributing to this pioneering venture with the development of a full range of digital cinema servers, with associated control software, to meet the requirements of distributors all the way through to the movie theater of the future.

The EVS Group has maintained a continuous growth pattern through its international presence and high quality products combined with excellent after sales service. Given these assets, the Company looks to continually diversify with a strategy based on an ambitious R & D program.

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1.1. LSM-XT, Slow-motion replay & editing server

The new generation of the LSM, the LSM-XT combines astounding speed with unprecedented flexibility thanks to the new MultiCam unified software. This new software allows seamless operation as the various applications run the same user interface sparing operators the task of learning new software each time they use the different configurations. The system can be configured to run in either standard (25 or 30 frames per second) or Super Motion (75 or 90 frames per second) mode, or a combination of both at the same time; a Super motion camera can be used in conjunction with 1 or 2 standard rate cameras with 5 or 6-Channel LSM systems.

The LSM-XT is a powerful 6-Channel system with the ability to record up to 5 sources simultaneously, as well as the possibility to be controlled by 3 operators from the same unit, if so configured. The LSM-XT becomes even more versatile with networking capability in SportNet, becoming a fully integrated production environment. All recorded material from any device on the network can be accessed from anyone on the same network for editing or playback, instantly.

P R O D U C T S A N D M A R K E T S

1 . I N T E G R A T E D P R O D U C T I O N S Y S T E M S

1.2. maXS, Universal production server

This is the XT technology packaged in a compact (4U) chassis for applications that do not require either Super-motion or local editing. The maXS can be controlled by all the standard protocols including SONY, LOUTH, ODETICS, THOMSON DD35 or EVS. The fixed 2 record & 2 play channel configuration with the variable RS-422 control ports allows the maXS to replace 2 Video Tape Recorders effortlessly, yet the SportNet SDTI Networking option enables automatic archiving and opens the door to the EVS integrated live production system.

1.3. XFile, Digital Archiving on Removable

hard drive

The biggest stumbling block for the transition to a tape-less environment has been the need for a removable media source. Currently, recorded video tape material is transported back to the studio for further editing and/or archival purposes. In addition, pre-built material such as graphics, commercials and transition effects need to be loaded during preproduction, which again is trans-ported via video tape.

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The XFile is a robust 3U frame containing 2 «off-the-shelf» IDE drives on which all clips built on the active LSM XT and maXS units within the SportNet SDTI network are archived. As each clip is created on the network servers, a copy is automatically made on the

XFile. The transfer to the XFile is a pure data copy; no

decoding/encoding takes place at any point, preserving the original quality of the footage through out the entire process. Super motion footage is also maintained in its original format, allowing the full range of playback on these archived clips. As soon as the event is complete, the hard drives can be removed and sent on to the next event and back to the studio. One removable drive can store up to 14 hours of standard definition video.

1.4. XBrowse, Digital browsing station with

SDI output

The media that was archived out in the field by the XFile can now be restored in the XBrowse after which the clips can be viewed and sorted on the local VGA monitor. This Xbrowse, which can be installed in the studio ( TV Station ), can be seen as an extended version of XFile. This is also a highly efficient method to pre-load an EVS server with pre-produced material. Jingles and synchronised key & fill sequences can be put on removable disk packs using maXS and XBrowse in the Studio.

1.5. SportServer, Digital media server,

Non Linear Editing(NLE) and Playout

This compact (5U) powerful engine supports faster than real-time media file transfer, asset / database manage-ment, non-linear editing and playout, simultaneously. Installed on site, the SportServer automatically collects all action captured on the LSM-XT and maXS servers via SportNet. Indexing, sorting and editing can then com-mence during the match instantaneously. Additional content can also be fed to the SportServer from the XFile or XBrowse via the network. The SportServer comes standard with a local license of the CleanEdit NLE software, as well as additional options through the Gigabit Ethernet port allowing up to 3 clents positions with the capability of a combination of CleanEdit work-stations or playout modules.

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P R O D U C T S A N D M A R K E T S

2 . B R O A D C A S T S O L U T I O N S

The EVS Group offers a wide range of products that has been developed to provide its customers with tailor-made solutions.

2.1. Production and Playout Servers

The television industry is facing a real technologic revo-lution in which videotape is being progressively replaced by digital solutions. In some countries, such as the United States and Australia, some legal decrees have been issued forcing broadcasters to digitise their opera-tions within a certain deadline. This forces even the most reluctant TV stations to make the move to digital. The EVS catalogue contains a family of broadcast servers based on the JPEG technology but also based on DVB®_{standards. These servers include control software}

tailored to the workflow of the new Digital TV (DTV) stations. The DVB®_{standards open up various new}

business opportunities to broadcasters who can now offer many new (interactive-) services to consumers.

Here is a list of the many applications linked with the EVS servers.

AirBox is a cost effective, user-friendly video server with

multi-channel configurations for integrated play-list management - a “play-out studio in a box”. Applications range from simple clip storage to more sophisticated play-out capabilities, including the ability to control an external VTR and switcher. It can be used for news or entertainment productions with the ability to build and roll a play-list for unattended or night broadcast. The AirBox replaces the need of several VTRs at a fraction of the cost with the many added advantages of a non-linear video server.

AirEdit features a continuous recording loop with live

editing capabilities which allows the addition or removal of content to/from a live program. Applications for the AirEdit server include time delay, content control (censor-ship) and automated or manual commercial insertion.

PLAYOUT AUTOMATION

EVS LBS Mpeg-2 Server with Harris Automation

Multi-channel ASI/SDI playout controlled through VDCP protocol

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SpotBox is identical to the AirBox , without the operator

interface. It is designed for integration into an automat-ed play-out architecture, under the control of 3rd party automation systems. The use of a multi-channel disk recorder for such applications allows the replacement of several VTR’s to complete the same operation with much more efficiency and ease, especially for record/ playback of commercials, news or short sequences.

maXS is a compact 4-channel production server that can

be control by all standard broadcast industry protocols (SONY, LOUTH, ODETICS, THOMSON GVG or EVS). It can replace 2 VTRs effortlessly in a mobile unit or in a studio.

Little Big One – Multi-channel server : The Little Big

One server can support up to 64 channels of play-out in a single device, from a shared disk base, in order to create large multi-channel installations. The servers are capable of operation through control of 3rd party

broadcast automation systems, which is specially aimed at Pay-TV operators.

Delay 2000 : The EVS’ Delay 2000 application manages

programs in their original transport stream format, re-cording programs for playback with user-programmable delays. A multiplex of several programs is handled as a single feed, resulting in dramatic cost savings. This sys-tem is particularly used for TV broadcasting for various time zones (e.g. in Australia).

DTV-Assist : DVB-Assist is a channel and

multi-operator play-out control system, based on the Netia product, Radio-Assist. One or more EVS servers, driven by the DVB-Assist play-out control software, offers a completely integrated broadcast solution including options for VOD (Video On Demand) and pay-TV… Additional features such as advanced access rights man-agement and multi-language support ensures maximum flexibility and operator efficiency.

U-Share : U-Share is a revolutionary automated system

for data exchange (video, audio, etc.) between remote sites. This network operates independently of all data transmission networks (ATM, satellite, terrestrial network, etc.). The national broadcaster, France 3, already uses this product for transmitting video reports and local news between its regional production centers via a DVB®

network. The entire network now achieves maximum efficiency for a minimal investment thanks to the flexibility and special DVB®_{functions of the EVS server.}

Video-Assist : Video-Assist is a dubbing booth network

application for use in the mixing of background sounds, translation of documentaries, handling of multi-language commentaries, combination of sound and video, etc. The Video-Assist digital audio/video system is especially designed for television stations that broadcast in multiple languages. The synchronization of the audio and video is automatically controlled by the use of a time-code generating board.

DTV ASSIST

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2.2. CleanEdit – Non linear editing for NEWS

production

Today’s television programming mostly consists of pre-recorded material, for which broadcasters rely heavily on videotape technology. This linear format can be limiting but today’s digital disk technology offers an attractive alternative with its flexible non-linear format. In the last few years, there has been a mass scale move towards these disk-based systems and EVS is riding the wave with a wide range of cost effective solutions.

CleanEdit is a fully customisable software application

for non-linear audio / video editing of news items or sport content. Installed on standard PC workstations, users can be editing live feeds or using archived material. All sources and jobs can be shared between multiple operators.

CleanEdit has been designed through the combined

efforts of engineers and computer programmers specializing in audiovisual techniques and professional video editors and journalists alike. This team has taken into account the working methods as applied in different services and departments handling information in a television station.

The CleanEdit application illustrates EVS’ know-how in the compressed digital video streaming process: the non-linear editing of MPEG2 long GOP format.

The CleanEdit environment therefore consists of different types of machines connected via a network:

CleanEdit editing stations enable browsing and viewing

of all available media and the creation of edits in either high or low resolution.

Media server(s) store the audio, video and still sources

used by the editing stations.

Database server permanently records and manages

the work of all users as well as the functional parameters of the system.

Playout server reproduces, in high resolution and in

real time, the edits finished on the editing workstations and declared ready to go «to air».

Encoders digitise both the high and low resolution

video simultaneously using common timecode reference for the video feeds coming in from press agencies, ENG cassettes or from any other available video source.

P R O D U C T S A N D M A R K E T S

CLEANEDIT

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Mosaics allow several video signals to be displayed simultaneously on a single display with layouts that are selectable by the user. Applications for mosaics include barker channels for cable and satellite providers as well as monitor walls in control rooms.

SuperSplit : The EVS SuperSplit can display up to 64

non-synchronized video sources, in real time, on a single video monitor. The SuperSplit uses customized layout patterns and advanced graphic tools to create attractive and functional multi-channel displays

Digiquad : The Digiquad displays 4 non-synchronized

video signals, in real time, on a single video monitor. It is

the perfect add-on piece of equipment for the EVS LSM disk recorder for displaying video sources and program and preview channels on a single monitor.

2.4. Streaming and Webcasting

The purpose of Webcasting is to allow the retrieval of a radio or television program through the Internet. Recognizing the great potential of the Internet, NETIA has entered this market in its early stages and earned a position as an integral provider through their StreamIn product and the ISP Services.

Stream-In automates video image broadcasting via the

Internet. This program uses an external trigger to digi-tize and encode in 2 Internet stream formats, simultane-ously, sending the files to the final Internet server.

ISP Services : NETIA relinquishes the need for a team

of designers, developers and graphic artists enabling the reality of full turnkey solutions for the production and hosting of Web sites. As does the UUNET distributor, NETIA also sells Internet Service Access by Leased Line (ISALL) allowing high performance access worldwide. NETIA has developed sites for customers in many areas such as Tourism, Institutional Communication, Sales, Banks and Medias. The streaming technology is also used as an accessory to television server systems.

Dispatcher is an automatic conversion engine that

pro-duces low bit-rate copies of broadcast media (video and audio). The broadcast files in the DVB-Assist database are detected and converted automatically to one or more low bit-rate formats for remote browsing using a Web server (e.g. Insider).

Insider is a web-publishing tool that allows access to

video and audio files for any user that is linked to the Intranet. All staff that is involved in television production (Directors, news editors, journalists, presenters, etc.) can now view any part of the content, which is present on the broadcast server(s) from their office.

Insider and Dispatcher are integrated into the

DVB-Assist suite thus adding powerful browsing facilities to the EVS MPEG-2 server.

BOW is a unique 1- or 2-channel hard disk based Video

Logging recorder with integrated HTML browsing facili-ties that has recording capacifacili-ties from 1 week to several months. The incoming video feeds are automatically recorded in segments according to a predefined sched-uling plan and indexed on the HTML interface. These segments can be viewed remotely through any classic web browser. A virtually unlimited number of BOW serv-ers can be stacked and connected to a common LAN network to build a multi-channel system. Applications include broadcast transmission logging (e.g. for legal or contractual purposes) and time-lapse recording in CCTV systems for surveillance and security. In all cases, the BOW replaces the need for any Video Cassette Record-ers and thus dramatically decreases all maintenance and operation costs.

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2.5. Acoustics

FAR, a 49.95% subsidiary of EVS, designs, manufactures and markets active monitor loudspeakers, which are distributed in more than 20 countries around the world. FAR also designs audio studios, acoustical panels and complete prefabricated studios. Applications range from Radio & TV stations to film post-production, “dubbing” theatres across to music recording studios.

P R O D U C T S A N D M A R K E T S

Every decision-maker in a radio station is fully aware of the strategic and economic challenges presented in the digital transition of his or her Company. As time passes, magnetic tape degenerates, which leads to additional costs for the radio station or the inevitable loss of audio segments. The increase in radio programs with

specific themes requires new ways of organizing the workflow. Digital technology offers many solutions in terms of productivity and flexibility through the use of equipment and software: unlimited editing of an original program, immediate access to an audio database, secure digital storage, etc. The process is simplified and the functionality of the system can be easily updated in conjunction with advances in the technology.

This market also has the need for globally automated solutions as the demand for satellites, communication data, «on-air» systems, advertising and administrative systems keeps growing. There are new needs arising constantly as the technology advances, which makes the days of strictly AM and FM radio broadcasts a thing of the past. Today’s radio and public authorities have their minds set on plans for wireless or Internet digital radio projects.

Radio-Assist 7, the new version

Since 1994, the Radio-Assist range of digital radio products have been developed under Windows. They cover all areas from recording to storage, by way of processing, programming and broadcasting. The latest version, Radio-Assist 7, was launched in April 2001 to answer the call of the evolution of requests from radio broadcasters. The newest upgrade Radio-Assist 7.1 was released In January 2003.

Music-All

Music-All software manages the schedule planning, statistical analysis and report generation for copyright management companies. Given a large choice of criteria, the user may define exposure frequency, compulsory or prohibited continuity conditions, or any other realistic constraint. Once all the data has been entered, Music-All produces hundreds of programs from a source of several thousand items. In Korea, Music-All manages the programming of 32 channels in the digital package for Digital Sky Net, each having its own musical style. In total, the database contains more than 50,000 items.