Paris, December 14, 2004

Improvement in operating profit in the first half of 2004-2005 Christmas sales off to a good start Record activity expected in the fourth quarter

• Sales: 130 million euros, up 2%* • Operating income: o According to French accounting standards: -45.2 million euros o According to US GAAP pro-forma standards: -55.2 million euros

• Net financial result: -7.5 million euros, including 2.7 million euros of provisions related to the equity swap

• Net income:

o According to French accounting standards: -33.0 million euros o According to US GAAP pro-forma standards: -39.5 million euros This net income is calculated before amortization of goodwill.

• Objectives for 2004-2005 confirmed

o Third-quarter sales for fiscal year 2004-2005: ⁄180-⁄190 million

o Annual sales: growth in excess of 10%*

o Earnings before interest and tax: ⁄40-⁄45 million according to French accounting standards and ⁄38-⁄43 million according to the pro-forma standard

o Net income excluding exceptional items (before depreciation of goodwill and business assets): ⁄18-⁄22 million according to French accounting standards and ⁄17-⁄21 million according to the pro-forma standard

o Net free cash flow (excluding acquisitions): -10 to +10 million euros ∗ at constant exchange rates

—With a 5.4 million euro improvement in operating profit, the first half is in line with our expectations. For the Christmas season, the launches of two major products œ Tom Clancy‘s Ghost Recon ® 2 and Warrior Within TM œ have been very encouraging: Ghost Recon ® 2 ranks third in November sales on ® in the United States ** while Prince of Persia Warrior Within TM sold more than twice as many copies in its first week than the original game. The release of Tom Clancy‘s Splinter Cell Chaos Theory TM and Brothers In Arms Road to Hill 30 TM in the fourth quarter are bound to be major events. We are therefore confident of reaching our annual targets,“ stated Yves Guillemot, CEO of .

Main elements of the income statement:

In millions of euros French accounting standards Pro forma standards

As of September 30 2004/2005 2003/2004 2004/2005 2003/2004

Sales 130.0 128.8 130.0 128.8 Gross margin 72.7 78.3 72.7 78.3 Operating income -45.2 -50.6 -55.2 -46.8 Financial gain/loss -7.5 -4.1 -7.5 -4.1 Exceptional income/loss 0.2 9.5 0.2 9.5 Net income (before depreciation of goodwill and business assets) -33.0 -31.6 -39.5 -29.3 Net income (after depreciation of goodwill and business assets) -36.5 -34.4 -43.0 -32.1

Improvement in operating profit in the first half of 2004-2005

In keeping with its objectives, Ubisoft has seen its sales continue to grow and its operating profit improve.

The 2% growth in sales reflects the success of such major titles as Tom Clancy‘s Splinter Cell Pandora Tomorrow TM (1.2 million units during the first half and 2.8 million units since its launch), Tom Clancy‘s Rainbow Six ® 3: Black Arrow TM (top-selling game on Xbox® when launched in France ** , Germany and the United Kingdom, and in third place in the United States) and ® IV: Revelation (No. 3 in sales on PC in France and No. 5 in Germany at the time of its launch ** ). The gross margin of 56% includes a 2.5 point impact related to inventory sell-out operation, for which a provision had already been set up, and which have generated 3.4 million euros in write-backs for provisions of inventory. Operating profit: • According to French accounting standards, operating profit increased by 5.4 million euros thanks to a 10.6 million euro reduction in development costs, due to a positive base effect (accelerated amortization during the first half 2003/04), and a one-time increase of 4.5 million euros in marketing expenses. • According to US GAAP pro-forma standards, operating profit was -55.2 million euros as a result of the increase in investments related to internal production (up 11.7 million euros compared to September 30, 2003). Total capitalized production costs reached 46.4 million euros, which is in line with annual forecasts. The net financial result of -7.5 million euros is mainly comprised of:

• 3.7 million euros in financial charges, recording a 34% reduction (5.6 million euros in first half 2003/2004)

• 2.7 million euros in charges related to the equity swap. In this transaction, the company continues to bear the risk until the final settlement and has therefore set up a provision based on a price of 16.53 euros.

Before amortization of goodwill (3.5 million euros), net income was -33.0 million euros according to French accounting standards (vs. -31.6 million euros in 2003-2004) and -39.5 million euros according to US GAAP pro-forma standards (vs. -29.1 million euros in 2003-2004).

Christmas sales off to a good start œ record activity expected in the fourth quarter The growth of the market has accelerated since October. In the United States, the market grew by 34% in October (all formats combined) and 11% in November (on consoles ** ). As a result, the group is anticipating annual growth of more than 6% on the overall market. In this favorable environment, sales of Prince of Persia Warrior Within TM and Tom Clancy‘s Ghost Recon® 2 are already very satisfactory. In its second week of sales, ® Heritage of Kings was the second best-selling PC game in Germany ** .

The following games will be launched in the fourth quarter: - Tom Clancy‘s Splinter Cell ® Chaos Theory™ - Brothers in Arms Road to Hill 30™ - Instincts™ - Cold Fear™ - The Settlers® Heritage of Kings (in Europe, excluding Germany) - Playboy: The Mansion™ - Silent Hunter™ III - Crime Scene Investigation Miami™ - Disney‘s Winnie the Pooh Rumbly Tumbly Adventure - Etc.

The third opus of Tom Clancy‘s Splinter Cell has already won several awards for its exceptional quality, and its release is being hailed as one of the major events of 2005. For its part, Brothers in Arms Road to Hill 30™ will be the most impressive game developed on the theme of World War II. These two much-anticipated blockbusters, together with the other games released during the quarter, will enable Ubisoft to achieve its annual targets. Operating income is projected to be between ⁄40 and ⁄45 million according to French standards and between ⁄38 and ⁄43 million pro forma accounting standards. Before extraordinary items, net income (before goodwill amortization and depreciation of business assets) is projected to be between ⁄18 and ⁄22 million according to French standards and between ⁄17 and ⁄21 million in pro forma accounting standards. The Group should generate net free cash flow (excluding acquisitions) of between ⁄-10 million and ⁄+10 million over the fiscal year.

Notes: Net free cash flow is defined as the net cash flow from operating transactions minus investments related to the operating cycle (excluding financial investments and investments in external growth).

Business assets include all intangible elements (customer base and know-how) needed for the company to do business and grow. The intangible elements represent the average of productivity, sales and a sector-based multiple. In the event that business assets are valued at less than their book value, a provision for depreciation is applied.

Equity swap: As part of the transaction concluded with Crédit Lyonnais on September 30, 2003, the latter will sell its shares (918,137 shares) at the end of an 18-month period in the understanding that Ubisoft will assume in its entirety any fluctuation in the share price from the sale price of .18.66. Changes between the date on which the contract is signed and its expiration will be recorded in temporary accounts pending a final adjustment. Unrealized gains are not recorded in the income statement. A provision for risk and charges must be included for any unrealized losses. At Ubisoft‘s request Crédit Lyonnais may sell in advance all or a portion of these shares in advance.

** Source: United States: NPD, France: GFK, United Kingdom: Chart Track, Germany: Media Control

-end-

© 2004 . All Rights Reserved. Ghost Recon, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. Red Storm and the Red Storm logo are trademarks of Red Storm Entertainment in the US and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company. © 2004 Ubisoft Entertainment. Based on Prince of Persia® created by Jordan Mechner. All Rights Reserved. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Prince of Persia and Prince of Persia Warrior Within are trademarks of Jordan Mechner used under license by Ubisoft Entertainment. © 2004 Gearbox Software, L.L.C. All rights reserved. Published and distributed by UBISOFT Entertainment under license from Gearbox Software, L.L.C. Brothers In Arms Road to Hill 30 is a trademark of Gearbox Software and is used under license. © 2004 Ubisoft Entertainment. All Rights Reserved. Splinter Cell, Sam Fisher, Splinter Cell: Pandora Tomorrow, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. © 2005 Ubisoft Entertainment. All Rights Reserved. Splinter Cell, Splinter Cell Chaos Theory, Sam Fisher, Ubisoft, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. © 2004 Red Storm Entertainment. All Rights Reserved. Ubisoft, the Ubisoft logo & Black Arrow are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Rainbow Six, Red Storm, and Red Storm Entertainment are trademarks of Red Storm Entertainment in the U.S. and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company. Myst® IV Revelation © 2004 Ubisoft Entertainment. All Rights Reserved. Ubisoft, ubi.com, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. D'ni™, Cyan ®, and Myst® are trademarks of Cyan, Inc. and Cyan Worlds, Inc. under license to Ubisoft Entertainment. © 2004 Red Storm Entertainment. All Rights Reserved. The Settlers, The Settlers Heritage of Kings, Blue Byte and the Blue Byte logo are trademarks of Red Storm Entertainment in the US and/or other countries. Red Storm Entertainment Inc is a Ubisoft Entertainment company. Developed by Blue Byte Software. © 2004 Ubisoft Entertainment. All Rights Reserved. Far Cry, Far Cry Instincts, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. © 2004 Playboy. PLAYBOY, RABBIT HEAD DESIGN, THE MANSION and BUNNY COSTUME are marks of Playboy and used under license by ARUSH Entertainment and GROOVE Games. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. Silent Hunter III © 2004 Ubisoft Entertainment. All Rights Reserved. Silent Hunter, Strategic Simulations, Ubisoft, ubi.com, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries © 2004 Ubisoft Entertainment. All Rights Reserved. Cold Fear, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. Developed by Darkworks. © 2004 Ubisoft Entertainment. All Rights Reserved. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. CSI: MIAMI and elements and characters thereof TM & © 2004 CBS Broadcasting Inc. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. CBS and the CBS eye design TM & © 2004 CBS Broadcasting Inc. Company logos are trademarks of their respective owners. No celebrity endorsements implied. All Rights Reserved. © 2005 Ubisoft Entertainment. All Rights Reserved. Under license by Disney. Disney‘s Winnie the Pooh © Disney. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Microsoft, Xbox, the Xbox Logos and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or in other countries.

All other trademarks are the property of their respective owners.

About Ubisoft: Ubisoft is an international producer, publisher and distributor of interactive entertainment products. A leading company in the multimedia industry, Ubisoft‘s strong and diversified lineup has grown considerably, as has Ubisoft itself. As well as steadfastly continuing to partner with several high-profile companies, Ubisoft has also confirmed its presence on the global market by developing its own exceptional properties. Founded in 1986 in France, Ubisoft is now present on every continent, both through offices in 21 different countries including the United States, Morocco, Germany and China and through sales of products in over 50 countries. The group is dedicated to delivering high-quality, cutting- edge video game titles to consumers around the world. Ubisoft generated a turnover of 508 million euros for the 2003/2004 fiscal year, up 22.5% over the previous fiscal year. To learn more, visit www.ubisoftgroup.com

Contact

Investor Relations + 33 1 48 18 56 34 [email protected]

Appendices

Consolidated Accounts on September 30, 2004

I - Consolidated Balance Sheet on September 30, 2004 in thousands of euros

ASSETS Notes Gross Amort/ Net Net Net Net Depr K⁄ K⁄ K⁄ K⁄ K⁄ K⁄ 09.30.04 09.30.04 09.30.04 03.31.04 09.30.03 03.31.03

Goodwill / trademarks and patents / business assets 1 142.775 22.065 120.710 105.515 108.860 97.670 Intangible assets 2 410.904 232.872 178.032 164.552 183.603 186.357 Tangible fixed assets * 3 38.802 25.166 13.636 12.866 13.414 14.099 Financial assets 4 2.214 192 2.022 2.020 1.827 10.022 Shares entering the scope of consolidation 5 581 - 581 325 - -

Fixed assets 595.276 280.295 314.981 285.278 307.704 308.148

Inventory and work-in-progress 6 30.977 1.734 29.243 35.128 33.196 38.148 Advances and instalments paid 7 34.367 - 34.367 31.776 44.290 48.303 Trade receivables 8 52.726 923 51.803 96.214 22.835 153.304 Other receivables, prepayments and deferred 9 94.557 111 94.446 88.434 99.769 105.457 income ** Investment securities 10 449 281 168 43.132 768 24.211 Cash 11 54.850 - 54.850 76.915 47.579 97.905

Current assets 267.926 3.049 264.877 371.599 248.437 467.328

Total Assets 863.202 283.344 579.858 656.877 556.141 775.476

LIABILITIES AND STOCK EQUITY Notes K⁄ K⁄ K⁄ K⁄ 09.30.04 03.31.04 09.30.03 03.31.03

Capital 5.482 5.450 5.437 5.437 Premiums 270.950 269.588 268.954 268.954 Consolidated reserves 17.707 27.602 28.267 25.490 Consolidated earnings -36.491 -9.023 -34.408 4.854 Investment subsidy 2 33 63 93 Share Capital (Group share) 12 257.650 293.650 268.313 304.828

Minority interests 0 0 0 0

Provisions for risks and charges 13 3.614 1.932 986 702

Financial debts (1) 14 240.829 243.592 219.470 299.394 Advances and installments received 779 251 1.433 237 Trade creditors and other accounts payable 35.018 63.251 33.575 81.032 Sundry creditors and accrued expenses 15 41.968 54.201 32.364 89.283 Total debts and accounts payable 318.594 361.295 286.842 469.946

Total Liabilities 579.858 656.877 556.141 775.476 (1) including debt less than one year 93.303 70.920 74.698 105.673 including debt more than one year 147.526 172.672 144.772 193.721

* including net tangible assets financed through leasing : 395 K⁄ ** including advances to affiliated companies not fully or proportionately consolidated on September 30, 2004: 34 K⁄

II - Consolidated Income Statement at September 30, 2004 in thousands of euros

K ⁄ K ⁄ K⁄ K⁄ Notes 09.30.04 03.31.04 09.30.03 03.31.03

Net Revenue 16 130.009 508.444 128.818 452.952 Other operating income 17 61.176 100.111 43.129 86.955 Cost of sales -57.343 -178.515 -50.485 -175.637 Wages and social security costs -64.850 -115.730 -56.579 -99.221 Other operating expenses 18 -63.571 -176.648 -63.194 -143.331 Taxes -2.651 -4.769 -2.300 -3.561 Depreciation and provisions 19 -48.010 -131.365 -49.956 -81.100 Earnings before interest and tax -45.240 1.528 -50.567 37.057 Financial charges and income 20 -7.463 -12.082 -4.139 -12.540 Pre-tax profit of consolidated companies -52.703 -10.554 -54.706 24.517 Exceptional income / expense 21 233 8.938 9.495 -6.853 Corporate tax 22 19.439 -1.420 13.588 -7.298 Net profit of consolidated companies -33.031 -3.036 -31.623 10.366 Share in results of companies using the equity method of accounting 92 34 0 0 Amortization of Goodwill -3.552 -6.021 -2.785 -5.512 Total net profit of consolidated company -36.491 -9.023 -34.408 4.854 Minority interests 0 0 0 0 Net profit (Group share) -36.491 -9.023 -34.408 4.854

Earning per Share -2,06 -0,51 -1,96 0,28 Earning per Share Diluted -2,06 -0,51 -1,96 0,38

III - Consolidated cash flow statement on September 30, 2004

09.30.04 03.31.04 09.30.04 03.31.04 K⁄ K⁄ K⁄ K⁄ Cash flow from operating activities Cash flow from operating activities Net income -36.491 -9.023 Net income -36.491 -9.023 Minority interests -92 -34 Share in results of companies using the equity method -92 -34 of accounting Depreciation of tangible and intangible fixed assets 45.261 124.559 Depreciation of game software (internal and external) 40.596 114.937 Depreciation of deferred charges 1.353 3.018 Depreciation of other tangible and intangible fixed 4.665 9.622 assets Net amortization of goodwill write-backs* 3.552 6.019 Depreciation of deferred charges 1.353 3.018 Changes in provisions -4.892 -17.581 Net amortization of goodwill write backs * 3.552 6.019 Grants -31 -61 Changes in provisions -4.946 5.139 Cash flow from the disposal of fixed assets 3.381 385 Grants -31 -61 Total cash flow from operating activities 12.041 107.282 Internal development and license development -54.543 -89.797 expenses Inventory 7.714 -851 Total cash flow from operating activities -45.937 39.820 Trade receivables 44.291 17.102 Advances and installments -2.756 14.223 Inventory 7.714 -851 Sundry assets -6.074 10.332 Trade receivables 44.291 17.102 Trade payables -27.656 -11.328 Advances and installments -2.756 14.223 Sundry liabilities -12.372 1.639 Sundry assets -6.074 10.332 Total change in working capital requirement 3.147 31.117 Trade payables -27.656 -11.328 Sundry liabilities -12.372 1.639 Cash flow from investments Total change in working capital requirement 3.147 31.117 Acquisition of tangible assets -55.684 -95.071 Acquisition of intangible assets -3.694 -5.608 Total cash flow from operations -42.790 70.937 Acquisition of equity holding - -6.448 Acquisition of other financial fixed assets -336 -645 Cash flow from investments Charges to be spread over several years -87 -1.099 Acquisition of tangible and intangible assets -4.835 -10.882 Disposal of fixed assets 127 153 Acquisition of equity holdings and other financial -336 -7.093 assets Proceeds from long-term loans and other financial assets 411 519 Charges to be spread over several years -87 -1.099 Changes in scope of consolidation (1) -18.847 -1.678 Disposal of fixed assets 127 153 Total cash flow from investments -78.110 -109.877 Cash flow from the disposal of fixed assets 3.381 385 Disposal of financial assets 411 519 Cash flow from financial transactions Provisions for expense on securities 54 -22.720 New long-and medium-term loans 29 56.694 Changes in scope of consolidation (1) -18.847 -1.678 Repayment of loans -528 -11.857 Total cash flow from investments -20.132 -42.415 Increase in capital 32 13 Increase in issue premium 23 633 Cash flow from financial transactions Increase in conversion premium - 1 Long-and medium-term loans -499 44.837 Increase in issue premium on shares with warrants - - Increase in capital 1.394 647 Increase in issue premium on group savings plan 1.339 - Grants received - - Grants received - - Repayment of shareholders' current accounts - - Repayment of shareholders' current accounts - - Other flows - -5 Other flows - -5 Total cash flow from financial transactions 895 45.479 Total cash flow from financial transactions 895 45.479

Impact of conversion rate adjustments -395 503 Impact of conversion rate adjustments -395 503

Net change in cash flow -62.422 74.504 Net change in cash flow -62.422 74.504 Net cash position at the beginning of the period 52.212 -22.292 Net cash position at the beginning of the period 52.212 -22.292 Net cash position at the end of the period -10.210 52.212 Net cash position at the end of the period -10.210 52.212

(1) including cash position of companies acquired and sold 1 -297

The net cash position is calculated in accordance with the gross value of investment securities, unlike the net financial debt (XIII), which is calculated on a net basis.

Cash Flow details 09.30.04 03.31.04 K⁄ K⁄ Cash 54.850 77.076 Investment securities 449 43.359 Currency advance -25.380 -26.200 Short term loans - -4.245 Bank overdrafts -40.129 -37.762 Miscellaneous financial debts - -16 TOTAL -10.210 52.212