Chairman's letter to the shareholders

May 2006

Ladies and Gentlemen,

GFI Informatique ended 2004 on an optimistic note as business indicators turned upwards in the final quarter. This hint of a recovery was fully confirmed in 2005 with financial results in line with our best-case forecasts.

Organic growth for the year came to 5 % and accelerated to 7.8 % in the final quarter, one of the market’s best performances. Our profitability also improved with an operating margin of 5.5 %, 1.1 % higher than in 2004. Thanks to these strong results, GFI Informatique has once again turned its attention to acquisitions.

At the end of 2005, GFI Informatique purchased Adelior and Actif, whose 1,000 employees added considerably to our position in France, and especially in Western France.

GFI Informatique is thus able to begin working on a new three-year plan for the period from 2006 to 2008. With a stronger organisation and a workforce of 8,000, we are now one of the ten leading French IT services providers and, in several regions, such as the West and Rhône-Alpes, one of the top three. Additional staff has also been added to international operations.

This is especially true in Spain, Portugal, Canada and Morocco where the combined workforce now exceeds 2,000. The past year was one of recovery for our operations in Germany, Belgium and Luxembourg, and saw a significant restructuring carried out in Italy. Our subsidiary in the United Kingdom, however, having failed to reach critical size, was sold.

The purpose of all these changes was to provide GFI Informatique customers with the appropriate products and services to meet their requirements for flexibility, cost-effectiveness and expertise in the areas of both technology and specific business sectors.

By demonstrating our ability to adapt to a changing market, cultivating our widely recognised traditional skills and developing new product offers with high added value, GFI Informatique has made significant progress.

Our three-year plan calls for reaching turnover of one billion euros in 2008 with a workforce of 12,000, and for improving our profitability even further as from 2006.

Jacques Tordjman,
Chairman and Chief Executive Officer.