This letter is intended to provide Mandriva Shareholders with the latest news of the company.

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Consolidated results for the first half year 2001/2002

The losses have been cut by half

(M€)	09/30/2001 12 months	03/31/2001 6 months	03/31/2002 6 months
Revenues	3.56	1.71	2.33
Operating result	-13.38	-7.27	-3.67
Net result	-13.59	-7.55	-3.67

For the first half year of the current fiscal year, Mandriva has reported a net consolidated loss of 3,67 M€, which is an improvement of 3,88 M€ over the same period in the prior year.

This improvement reflects :

• an increase of revenues (a growth of 37 % in the half year)

• an increase in gross margin.

• cost-cutting measures taken since April 2001.

Outlook

In the forthcoming months the company will continue to on one hand develop the revenue lines having the greatest margin (on-line sales, OEM, Mandriva Club) while on the other continuing to cut costs.

About Mandriva

Mandriva is one of the leading distributors of Linux and open source software (unrestricted access to the source code according to the GPL - General Public License). Mandriva develops and distributes the Mandriva Linux operating system.

Large numbers of developers around the world, using the Internet, continuously enhance the product and extend its internationalization (now more than 50 languages available). The company also provides related off-line services (consulting, education, support) as well as on-line services (e-support ).

Euroclear : 4477
Reuters : MAKE.PA
OTC US : MDKFF
Number of shares : 3 407 661

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