Regulatory News:

XIRING (Paris:ALXIR), a security solutions provider for electronic transactions, announces its non-audited results for the first half of the 2010 financial year.

The figures for the first half of 2010 reflect two changes in the company's activities since the first half of 2009: the sale of the Banking activity on 31 December 2009 and the acquisition of TELFIX on June 1st 2010, with a retroactive consolidation of the accounts as at January 1st 2010.

(in €m)

not audited

   XIRING(1)

30 June 2010

   XIRING

30 June 2009

      including TELFIX

30 June 2010

Turnover 9.5 11.8(2) 1.4
Operating income

% of turnover

 1.0

10.6%

 2.0

16.6%

 0.4

28.5%

Current income before taxes 1.1 2  
Net income

% of turnover

 1,0

10.7%

 2,0

16.8%

 0.3

20.7%

(1) including TELFIX

(2) including €4.3m for the Banking activity sold

Georges Liberman, Chairman and CEO stated: ?Following the general meeting of September 3rd, XIRING absorbed TELFIX and consolidated the accounts at contact value as at January 1st, 2010. This consolidation marks another step in our company's development. XIRING's profitability from operations for the first half of 2010 is in line with our roadmap. Our development on the healthcare and e-ID markets in Europe is meeting our expectations?.

Profitability in line with XIRING's roadmap

With operating income of €1.0m, including €0.4m from TELFIX, XIRING achieved an operating margin of 10.6%. Net income was of 1€.0m, representing a net margin of 10.7%.

Cash flow of €10.7m on June 30, 2010

Without financial debt, and with €21.4m in equity and cash flow of €10.7m (after the payment of a one-off dividend and the acquisition of TELFIX), XIRING has a very solid financial position.

Confirmation of objectives for the 2010 financial year

XIRING confirms the objectives it announced on January 12, 2010, i.e., a turnover of 20 million euros and operating income exceeding 14% of turnover for the year.

Next press release

October 19, 2010: Publication of turnover for 3rd quarter of 2010

About XIRING

XIRING, a security solutions provider for electronic transactions, develops security software embedded in smart card readers and terminals for strong authentication and electronic signatures. XIRING is the market leader in SESAM-Vitale healthcare terminals for generating and signing electronic medical claim forms or for updating healthcare cards in France and also works alongside authorities in the field of healthcare system dematerialization in international markets. In the area of electronic identity (e-ID), XIRING proposes a broad range of solutions for public authority staff and citizens to meet the latest market challenges with secure electronic identity documents systems: electronic national identity cards, electronic passports, public transport cards and professional cards. XIRING is listed on the Alternext compartment of the NYSE-Euronext Paris stock exchange. For further information: www.xiring.com

XIRING Press relations:
Pauline Cieutat
Tel: +33 (0)1 46 25 80 23 / pressoffice@xiring.com
or
ACTIFIN:
Anaïs de Scitivaux
Tel: +33 (0)1 56 88 11 14 / adescitivaux@actifin.fr