1st Half 2006 Sales Activity
Revenues: 4 M€ (+ 34%)
Revenue Backlog: 4.2M€ (+ 68%)

Simultaneous revenue and backlog growth
Consolidated 1st half 2006 revenues for the Emailvision group reached 4.0 M€ representing growth of 34% compared to the 1st half 2005. 1st half organic revenues reached 3.9M€ representing 31% growth over 1H05. Revenue contribution from the acquisition of Barnes & Richardson on May 24th 2006, represented 0.1M€ during the 1st half 2006.

Revenue backlog on June 30th 2006 grew by 68% reaching 4.2M€ compared to 2.5M€ in June 2005. Almost half of this revenue backlog will be recognised in revenues by the end of 2006 and 1.7M€ will be recognised within 2007. During the 1st half, 32% of contracts signed were for duration of 24 Months or longer. The number of long term contracts grew by 23%. This validates the long term subscription contract strategy and provides Emailvision with increasing visibility on medium term revenues. The average duration of all contracts reached 20 Months compared to 13.5 Months in the business plan.

Recurring revenues from the client base showed a very strong client retention rate. Revenue growth was driven by the win of 125 new clients out of a total of 340 clients in the 1st half. These indicators show the growing sales dynamic of the company and the strengthening of its position as the European market and technology leader. The Company’s e-mail marketing campaign automation software service, Campaign Commander™ was chosen by new clients including Seloger.com, Lapeyre, The Red Cross, Auchan Voyages, Handbag.com and Orange UK. The number of new client wins accelerated towards the end of the 2nd quarter with 40% of 1st half new clients won in May and June.

The revenue growth at the end of the 2nd quarter was driven by the first contributions of the new sales hunters hired in March 2006. In the 1st half 2006, Emailvision had an average of 18 sales hunters in the team verses 12 at the end of 2005. Nonetheless, the company incurred a delay in the hiring of new sales hunters, particularly in Germany. This delay will probably impact organic revenue growth and weigh temporarily on group profitability. Corrective measures were taken in the 2nd quarter 2006 to accelerate sales hunter hiring and a new sales organisation was put in place. In September 2006, the sales hunter team will reach 23. This strong expansion of the sales team should lead to accelerated revenue growth towards the end of the second half of 2006 and make a full contribution to growth in the 1st half of 2007.

It should be noted that in 2007 and 2008, the Company does not plan the same aggressive growth in sales headcount (+100% between 2005 and 2006). The Company plans to increase sales headcount by only 25% per annum in 2007 and 2008.

In this context, 2006 profitability should be below the range announced during the IPO.

Strategic investments in European market share and growth
In addition to the strengthening of its sales force, the 1st half 2006 was marked by important investments to consolidate the company’s market leadership position in Europe. The funds raised during the February 2006 IPO allowed the company to strengthen its management and technology teams and expand its geographical coverage. The company hired new experienced management including a CFO, CIO, Client Services Director and a Product Manager. The bolstering of the R&D team enabled the company to accelerate the development of new competitive product features with a major release of Campaign Commander™ V5.0 planned in September 2006.

As announced during the IPO in February 2006, Emailvision executed on its plan to accelerate organic growth with selected acquisitions. In May 2006, the Company announced the acquisition of Barnes & Richardson in Benelux. This first acquisition was both relutive and a strategic move enabling the company to meet three objectives:

- Expansion of it’s geographical coverage in Europe,
- Enhancement of it’s technology offering
- Enrichment of it’s professional services offering

Outlook
The doubling of the Emailvision sales force by September 2006 coupled with strong recurring revenues from the client base will have a positive impact on the profitable growth of the group. The Company’s “on demand” software business model will enable the company to benefit from two major profit levers in 2007:
• Lower marginal cost of revenues for new clients, driven by relatively fixed technology operating costs
• Strong growth in recurring revenue stream and backlog

About Emailvision
Emailvision is the European technology and market leader in "on demand" software for e-mail marketing. Campaign Commander™ has become the e-commerce benchmark tool for e-mail campaign automation, optimisation and delivery. Emailvision operates a highly robust and secure technical platform capable of delivering over 300 million opt-in e-mail messages per month. The Company also offers high added value professional services including training, integration, support and best practice sessions. Emailvision’s clients enjoy one of the highest e-mail message delivery rates in Europe (> 95%). Founded in May 1999, Emailvision currently has a workforce of 70 throughout its subsidiaries in the United Kingdom, Germany, Belgium and France.

Emailvision is listed on the Euronext Paris Alternext market - ISIN code: FR0004168045/MNEMO: ALEMV

(*) Emailvision defines “Backlog” as the sum of all non recognised revenues from non-cancellable client contracts. It is a snapshot of future subscription revenues not yet recognised in accounting.

Published on: 12:00AM on 27th July 2006