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Ubisoft Releases 2007-2008 Third Quarter Sales Figures

• Third Quarter Sales Up 44 Percent to €450 ($625.81) Million, Outstripping Forecasts• In 2007 Ubisoft Moves up to the Position of Third Leading Independent Publisher (In Europe and North America, Excluding Asia)

• Two New Franchises Created - Assassin’s Creed(TM) and Imagine(TM)

• 2007-08 Title Release Schedule Updated

• 2007-08 Targets Revised Upwards and Sales Guidance Raised for 2008-09

Paris, January 23, 2008 - Today Ubisoft, one of the world’s largest video game publishers, reported its sales for the third fiscal quarter ended December 31, 2007.

Sales

Sales for the third quarter of 2007-08 came to €450 ($625.81) million, up 44.4 percent, or 50.1 percent at constant exchange rates, compared with the €311 ($432.50) million recorded for the same period of 2006-07. Sales for the first nine months of fiscal 2007-08 totaled €711 ($988.78) million versus €483 ($671.70) million in the corresponding period of 2006-07, representing an increase of 47.2 percent, or 52.1 percent at constant exchange rates.

Third-quarter sales outstripped the guidance that was raised to €410 ($570.18) million on December 13, 2007. This very good performance was fueled primarily by the following elements:

• A further exceptional showing from Assassin’s Creed. In Europe, this was the best-selling game in 2007 for the PLAYSTATION®3 computer entertainment system and the number 2 best-seller for the Xbox360(TM) system.
In the United States, it was the second best-selling game in 2007 for the PLAYSTATION®3 computer entertainment system and the number 3 best-seller for the Xbox360(TM) system (in units, based on data issued by market research firms such as NPD, Chart-Track, Nielsen and GFK).

• Excellent sales levels reported by our casual games including Fashion Designer, Babyz® and Animal Doctor for the Imagine series; Horsez®, Hamsterz(TM) and Catz® for the Petz® series; and My Word Coach from the My Coach series.

Games for new-generation consoles represented 84 percent of the Group’s sales in the first nine months of 2007-08, versus 55 percent for the equivalent period of 2006-07.

Ubisoft continued to gain market share in calendar 2007, and was ranked as follows1:
• Number 2 independent publisher in Europe, reporting 58 percent growth (versus 25 percent for the European market as a whole), and market share of 8.7 percent (6.9 percent in 2006).
• Number 3 independent publisher in the United States, where growth came in at 49 percent (compared with 29 percent for the U.S. market as a whole), and market share represented 6.1 percent (5.2 percent in 2006).

Yves Guillemot, Chief Executive Officer of Ubisoft, stated “The vast majority of our games reaped the benefits of particularly strong market momentum over the Christmas period. Two new long term multi-million franchises were created, Assassin’s Creed and Imagine, generating sell-in sales of five and 2.5 million units respectively. They will join our existing portfolio of 12 franchises. As a result, Ubisoft moved up from fourth to third place in the overall ranking of independent publishers in 2007 - a year that saw the video game industry enter new dimension with previously unheard of visibility. This revolution stems from the greater accessibility of Nintendo’s consoles as well as from the superb cinema-like visual experience provided by Sony and Microsoft consoles. We expect this situation to significantly drive up market performance once again in 2008, with overall market growth representing at least 10 percent. Against this backdrop, Ubisoft will continue to leverage its strong brands and design capacities with a view to outperforming the market.”
Outlook

Fourth-quarter 2007-08 sales
This period will see the following main releases:
• Tom Clancy’s Rainbow Six® Vegas 2 for PC, the Xbox360(TM) system and the PLAYSTATION®3 computer entertainment system;
• Assassin’s Creed for PC and the Nintendo DS(TM);
• The game based on the Lost(TM) television series, for PC, the PLAYSTATION®3 computer entertainment system and the Xbox360(TM) system; and
• New casual games for the Nintendo DS(TM) and Nintendo Wii(TM).

Haze(TM), which was originally scheduled for the fourth quarter of 2007-08, will now be released in fiscal 2008-09.

The Group expects sales for the fourth quarter of 2007-08 to total around €165 ($229.46) million, representing a 16 percent contraction compared with the same period of 2006-07.

Targets revised upwards for 2007-08 and 2008-09
In light of the Group’s third-quarter performance and initial positive trends for the fourth quarter of the year, Ubisoft has raised its performance targets for full-year 2007-08. The 2007-08 sales target is now approximately €875 million ($1b 216m) compared with the forecast of €840 million ($1b 168m) announced on December 13, 2007, and the Group expects current operating income before stock options to represent at least 13 percent of sales, versus the previous estimate of at least 12 percent.

At the same time, in order to take into account the postponed release date for Haze(TM), Ubisoft has raised its 2008-09 sales target to approximately €1 billion ($1b 390m) compared with the previously-announced forecast of around €975 million ($1b 355m). The Group is maintaining its target for current operating income before stock options to represent at least 11 percent of sales.

The 2008-09 line-up will include notably the following key titles:
• Seven franchises, including Tom Clancy’s Splinter Cell®, Brothers in Arms®, Far Cry®, Prince of Persia® and Anno(TM);
• Five new brands, including Tom Clancy’s EndWar(TM), Haze(TM), the Shaun White snowboard game a Tom Clancy(TM) air combat game; and
• New games in the Petz, Imagine and My Coach series as well as a new line of casual games.

Recent Highlights

Market share: Excluding Asia, Ubisoft was the third-leading independent publisher in the world in 2007. It ranked number 3 in the United States with 6.1 percent market share (compared with number 5 and 5.2 percent one year earlier); number 2 in Europe with 8.7 percent market share (compared with number 2 and 6.9 percent); number 2 in France with 9.3 percent market share (compared with number 2 and 7.7 percent); number 2 in the United Kingdom with 9.1 percent market share (compared with number 3 and 7.6 percent); and number 2 in Germany with 7.9 percent market share (compared with number 2 and 6.6 percent).

Ubisoft closes the acquisition of the Japanese video game development studio Digital Kids: Established in 1996 with offices in Nagoya and Osaka, Digital Kids currently has a team of 20 developers specialized in games for the Nintendo DS(TM). The studio has worked regularly for a number of Japanese publishers and has developed several successful titles for Ubisoft’s Petz line of games, including Hamsterz Life(TM).

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