UBI SOFT ENTERTAINMENT A Strategy, Results An International Group Ubi Soft, a producer, publisher, and distributor of interactive entertainment software, employs 1,050 people in 13 countries around the world. Its products are distributed in 47 territories with 61 percent of its turnover generated outside France. Created in 1986, Ubi Soft is now one of the top publishers in the world. Strong Assets A strong portfolio of trademark names, fascinating characters and worlds, available in several formats Ubi Soft develops original products under three separate editorial lines: games, academic and arts education, and children's titles. The group works under licence with well-known companies, such as Playmobil®. It also creates game concepts capable of being developed, enhanced, undergoing constant evolution. Examples include the Rayman series, F1 Racing Simulation, The Cosmic Family, Tim7, and POD. Substantial international production capabilities and technological mastery · Teams of specialists A combination of technological know-how, game design experience, and team creativity enables Ubi Soft to offer innovative software. Script-writers, illustrators, modellers, animators, game designers and engineers consider quality their bottom line. They pool their creativity, meticulousness, daring, humour, and sense of poetry to give the public the pleasure, thrills, and emotional satisfaction it expects. · An integrated, international production system Ubi Soft boasts one of the biggest integrated production systems in the industry. Over 800 employees world-wide work on the design and production of the software of the future. The group focuses on creating local projects, which can draw on Ubi Soft's cultural diversity and are accordingly more adapted to the expectations of consumers on each continent. · The challenge of advanced technology Ubi Soft consistently employs the latest PC capabilities to produce higher quality products. Everything it publishes is deliberately innovative, whether in terms of ideas, image processing, motion fluidity, etc. Ubi Soft is establishing partnerships with the big names in the industry, and is already working on Sega®'s Dreamcast®. The group's technological mastery enables it to meet ever more demanding standards and pursue its quest for excellence in graphics and game design. A large distribution network for deeper penetration of every market Ubi Soft is continuing its strategy of setting up operations in all major markets. Thanks to its knowledge of the various geographical markets and its localization, marketing, and distribution expertise, which grows stronger every year, Ubi Soft also distributes the products of 50 other publishers, including LucasArtsTM, Europress, 3DO, and Blizzard. Ubi Soft, creator of the program content of tomorrow Because Ubi Soft is organized to emphasize responsiveness and flexibility, it is able to gain a foothold in emerging market segments and to seize new opportunities for growth: · Internet: all of the most recent software programs produced by Ubi Soft have on-line extensions. Future products will also offer multi-player options. · DVD-Video: Ubi Soft will publish a catalogue of DVD-Video titles in the autumn. · Drawing on its modelling and broadcast-quality, 3D animation experience, Ubi Soft is actively developing animated series projects. · Set-top boxes and other interactive applications: Ubi Soft is studying all the possibilities offered by the interactive market. Earnings · 1997/98 turnover: FF632 million, up 83.1 percent · 1997/98 earnings: FF29.1 million, +83.7 percent over 1996/97. · Quoted on the second market of the Paris Stock Exchange since July 1996: · Market capitalization: FF1 844 million as of 24 July 98 Share price (SICOVAM 5447) on 24 July 1998: FF829 (FF250 on 1 July 1996) · Best-sellers: POD, the first real-time 3D race car game for multiple players on the Internet: over 3 million sold since February 1997. Rayman: over 2.5 million units sold worldwide since December 1995 F1 Racing Simulation, which the international press hailed as the best Formula 1 simulation on the market when it came out in the autumn of 1997: 300,000 units sold since November 1997 F1 Pole Position 64, the only Formula 1 game available for Nintendo® 64: 400,000 units sold since October 1997. A growth strategy for the future Ubi Soft is positioned in a very dynamic market, one that is expected to grow 30 to 40 percent annually over the next decade. Its goal is to rank among the Top 20 international publishers in the year 2000, and to generate turnover in excess of FF1 billion. To that end, the group continues to pursue its strategies-now several years old-of creating brands, promoting internationalization, and expanding production and distribution facilities. Ubi Soft aims to create appealing and exciting game concepts, offering players new sensations and impressing by their quality, realism, and imaginative fantasy. For more information, annual report available on request.