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Mandriva (formely Mandrakesoft)

Financial Results for First Half 2004/2005 (October 2004 to March 2005)

(M€) (Period Oct. - March.)	31 March 2004 (1)	31 March 2005 (*)	Variation	Variation
			M€	%
	6 months	6 months
Revenue	2.52	2.76	0.24	9.5%
Operating revenue	2.84	3.48	0.64	22.5%
Gross margin	2.11	2.20	0.09	4.3%
% Gross margin	84%	80%
Operating income	0.16	0.21	0.05	31.3%
Net income	0.71	1.03	0.32	45.1%

(1) audited (*) unaudited consolidated result

Activity and results

For the first half year of fiscal year 2004-2005, Mandriva reported consolidated revenue of 2.76 MEUR, and operating revenue of 3.43 MEUR, a respective increase of 9.5% and 22.5% compared with the same period of the previous fiscal year. The increase of operating revenue is due primarily to R&D grants realized, amounting to 0.61 MEUR.

For the half-year period, the company reported an operating income of 0.21 MEUR compared to 0.16 MEUR one year prior.

Net income was 1.03 MEUR, compared to 0.71 MEUR one year prior. Net income benefited from a 0.87 MEUR extraordinary gain, due to the renegotiation of payables registered in the Chapter 11 like process.

The financial performance reflects the company's strategic emphasis on enterprise sales and services. Product sales amounted to 50% of revenues, enterprise services 24% and online sales and services 26%. This compares to 72%, 10% and 18%, respectively, in the one year ago period. During the half-year period, additional expenses were invested in the enterprise product including R&D, marketing, and sales. The company expects a return on this investment to occur in the subsequent quarters. The company currently has a services backlog in excess of 0.80 MEUR.

The company maintains its objective of growth and profitability over the current fiscal year.

Conectiva

The acquisition of Conectiva has been approved by the EGM of shareholders held on 30 March 2005. Therefore, Conectiva's accounts will only be consolidated into Mandriva's accounts starting
1 April 2005. The above-mentioned half-year figures at end March 2005 do not include Conectiva's accounts.

About Mandriva

Mandriva is a leading Linux and Open Source Software (OSS) editor. (OSS source code is freely accessible according to the GPL, the General Public License). Mandriva develops and distributes the Mandriva Linux operating system. Hundreds of developers around the world contribute to the continuous improvement of the product via Internet and contribute to its internationalization (with more than 67 languages available). The company also provides related on-line and off-line services including consulting, education, support, and the Mandriva Club.
Mandriva has offices in France, USA and Canada.
Since July 30th , 2001, the company is listed on Euronext Marché Libre and OTC US
Euronext: ISIN: FR0004159382, Mnemo: MLMAN, Reuters: MAKE.PA, Bloomberg: MLMAN FP

Pink Sheets: MDKFF
Number of shares : 5,593,405

Contact Mandriva
Jacques Le Marois/ Thierry Bossut
investors a mandriva . com

For additional information: mandriva.com/company/investors/newsletter

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