Bull announces its third quarter 2007 revenue

Third quarter activity confirms good progress of the Group’s transformation plan
Continued strong growth in Services and Solutions business
EBIT target for 2007 confirmed at the upper end of the initially announced target range

Key figures for the third quarter of 2007:

• 10.1% increase in order intake, with 30.8% growth in Services and Solutions
• Revenues of €243.3 million, representing an increase of 2.5% excluding divested activities¹, with an 18.4% increase in the Services and Solutions business

Outlook: the Group confirms that its target EBIT (see glossary) for the 2007 financial year is in the range € 22 million to €24 million, at the upper end of the initially announced target range .

Paris, 19 October, 2007: Bull (Euronext Paris: BULL.PA) today announces that its revenue for the third quarter of 2007 was €243.3 million, growing 2.5% excluding divested activities¹. For the same period in 2006 the published revenue was €250.0 million.

“Our performance this quarter demonstrates that we have adopted the right strategy aimed at strengthening and increasing the momentum behind our growth offerings in High-Performance Computing and storage on the one hand, and our Services and Solutions business on the other,” confirmed Didier Lamouche, Chairman and CEO of Bull. “The results we have attained at the end of this third quarter mean that we can be confident of achieving our profitability objective for the end of the financial year, and we can confirm that our target EBIT is at the upper end of the range initially announced.”

Orders and revenue for the third quarter of 2007

All figures are unaudited. Comparisons are made with the same quarter in the prior year excluding divested activities.

Order intake grew by 10.1%, with 30.8% growth in the Services and Solutions business

The third quarter saw robust business activity with order intake significantly improved.

Growth was particularly strong in the areas of Services and Solutions, which saw a 30.8% rise particularly as a result of the strengthening of our offering in Spain, with the acquisition of IT services company Siconet, and organic growth at twice the market rate.

In the products segment, the Group’s deliberate refocusing on value-added offerings has resulted in a fall of 10.9% in order intake: orders for third-party products fell significantly, whereas those for high added-value Bull products grew, particularly in the areas of High-Performance Computing (HPC) and storage.

Revenue was €243.3 million, an increase of 2.5% excluding divested activities¹, with an 18.4% increase in the Services and Solutions business

Revenue increased excluding divested activities¹, as it had done in the first and second quarters of the year. This improvement has once again been particularly sustained in the area of Services (+18.4%), and confirms the execution of the growth strategy in this business .

The refocusing of sales activities on higher added-value Bull offerings explains the decrease of 7.4% in our Products business. A number of initiatives launched in recent months around the Group’s core offers should allow to counter this trend. The acquisition of Serviware (cf. today’s press release) during the third quarter should immediately strengthen the Group’s presence and reach in HPC and extend its customer base.

Finally, in line with expectations, revenue from the Maintenance activities fell slightly by 1.3%. It is worth noting that for the same period in 2006 the decline in comparison to 2005 was -8.2%.

Revenue evolution by business activity was as follows:

*Figures for the third quarter of 2006 have been recast to exclude the Italian and Portuguese businesses. The contribution to revenue from companies acquired in 2007 is €13.8 million in the third quarter of 2007.

Geographic breakdown of revenue was as follows:

* Figures for the third quarter of 2006 have been recast to exclude the Italian and Portuguese businesses. The contribution to revenue from companies acquired in 2007 is €13.8 million in the third quarter of 2007.
** Refocusing on high value add product offers

Group’s financial position

The Group remains in good financial health. As in previous years, its cash position shows a marked seasonality. The end of September usually marks a low-point in terms of cash, which reflects the imbalance in revenue which is unevenly split between the two quarters of the second half of the year.

The Group’s money market investments are showing an unrealized gain despite the financial market crisis this summer.

Highlights for the third quarter of 2007

Products and Solutions: significant new advances in strategic markets

Confirming its aim to pursue an ambitious growth strategy in High-Performance Computing (HPC), one of its key areas for strategic development, Bull has acquired French company Serviware, a leader in the integration of HPC solutions (cf. today’s press release). This acquisition consolidates the Group’s position in the rapidly-growing HPC market, particularly in industry and is in line with the Group’s initiative launched in May 2007 aimed at increasing democratization of HPC.

At the same time, Bull’s expertise in the area of large-scale supercomputers has been reaffirmed with the work carried out by a team of researchers at the CCRT (Centre de Calcul Recherche et Technologie), the Center for Research and Technology Computing in France, which has completed the largest ever simulation of the formation of the structures of the Universe. The work was carried out using the CCRT’s new Bull supercomputer (consisting of over 800 Bull NovaScale servers or 6144 Intel® Itanium 2® processors) delivered at the start of 2007. This configuration – along with the Tera-10 supercomputer at the French Atomic Energy Authority (the CEA) – now forms Europe ’s most powerful scientific computing complex.

When it comes to sustainable development Bull, as a responsible corporate citizen, has defined a new technological agenda in which all the elements combine to manage the ‘carbon footprint’ more effectively. Both the NovaScale and Escala server families already feature the most advanced energy management technologies, starting with the use of Intel Xeon®/Itanium® and POWER 6 processors – that deliver lower energy consumption while also optimizing performance – along with technologies enabling an ‘electricity budget’ to be allocated to a group of servers using a Data Center administration tool. Finally, Bull has incorporated virtualization technologies across all its high-end servers, enabling much more effective use of server capacity.

For example, Nottingham City Council in the UK has equipped itself with an IT infrastructure based around Bull NovaScale blade servers to improve the services it delivers to its 640,000 inhabitants while at the same time reducing the energy consumed by that infrastructure by over 40%.

Finally, in the area of large-scale servers for managing business-critical data, Bull has launched DataScale, a solution designed to simplify and improve the reliability of major Oracle database implementations. DataScale offers a choice of pre-assembled and optimized configurations combining servers, storage systems, software and implementation services.

Bull’s growth in Services is illustrated by successes in outsourcing and systems integration services

Consolidating its position as a key supplier in the modernization of public sector information systems, in the UK, Barnsley Metropolitan Borough Council (BMBC) has announced that it is on track to achieve its objective of reducing its IT costs by 20% over the coming decade. This is the result of a joint venture, created in association with Bull, to manage all BMBC’s IT resources. In July 2006, Bull and BMBC announced a ten-year partnership valued at some €110 million, to deploy a 21 st century IT infrastructure responding to government directives in terms of rationalization and cost reduction.

In the Outsourcing business Onera, Europe’s leading establishment dedicated to aeronautical and aerospace research – which uses a 1.43 Terabyte Bull NovaScale supercomputer – has once again shown its confidence in Bull by awarding a four-year outsourcing contract for part of its scientific computing resources. For its part, EDF-GDMI has also renewed its confidence in Bull by extending its third-party application maintenance contract for OPX2 applications for a further year.

Addressing the Business Intelligence market, Bull has launched its Data Warehouse Parallel Server (DWPS) in Europe, combining Datallegro technology with Bull NovaScale servers and storage solutions. Targeting centralized datawarehouses, this new offering is part of Bull’s initiative deisgned to help organizations make the most of their knowledge capital and facilitate effective decision-making.

In IT security solutions, the company’s subsidiary Bull Evidian, one of the leading publishers of Identity and Access Management (IAM) software solutions, has been named as one of the leaders in Single Sign-On by industry analysts Gartner in its ‘Magic Quadrant for Enterprise Single Sign-On, 2007’ report. This ranking recognizes the added value and advanced solutions offered by Bull’s Enterprise Single Sign-On offering.

Outlook

Didier Lamouche stated: “ Our performance over the last nine months means we are able to confirm our 2007 objectives: for slight growth in revenue and for EBIT in 2007 to be at the high end of the outlook we published at the start of the year, in the range €22 million to €24 million.”

Glossary:

EBIT (Earnings before Interest and Taxes): Earnings before Interest and Taxes, non-operating and non-recurring items and contribution of equity affiliates .

^* The figures for the third quarter of 2006 have been recast to exclude the impact of the sale of the Italian and Portuguese businesses. The contribution to revenue from companies acquired in 2007 is €13.8 million in the third quarter of 2007.

About Bull, ‘Architect of an Open World’...

As one of the leading European IT companies, Bull delivers open, flexible and secure information systems. The group helps public and private sector customers transform their information systems, applying its know-how and expertise in three main areas:

•  Capitalizing on its extensive mainframe experience, Bull designs and produces robust, innovative and open servers, based on industry-standard technologies;

•  Building on its alliances with leading ISVs and long-standing involvement with Open Source, Bull develops and implements flexible and interoperable application infrastructures which give business processes the freedom to evolve;

•  Bringing together recognized expertise in end-to-end IT security, Bull secures data and exchanges that are so critical in preserving customers’ business integrity.

Bull has a particularly strong presence in the public, healthcare, finance, telecommunications, manufacturing and defense sectors. Its distribution network and business partners cover more than 60 countries worldwide.

For more information visit: http://www.bull.com

Investor Relations:

Peter Campbell  - Tel: 01 30 80 32 36 – peter.campbell@bull.net

Press Relations:

Bull - Anne Marie Jourdain – Tel: 01 30 80 32 52 – anne-marie.jourdain@bull.net

Quarterly revenue figures published for the 2007 and 2006 financial years

Disclaimer

This Press release includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause expected results to differ.

Although Bull believes that its expectations and the information in this Press release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the expected results will be as set out in this Press release. Neither Bull nor any other company within the Bull Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Press release, and neither Bull, any other company within the Bull Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Press release.