Louveciennes, 13 February 2003. Bull today publishes its preliminary results for the full year 2002. These results exceed the objectives of the second phase of its turnaround plan, as approved by the Board of Directors in March 2002.

The first step of this turnaround plan, as achieved at the end of the 1st half of 2002, included a strong restructuring and a drastic reduction in SG&A's. The second step was to reach breakeven at the EBIT level in the second half of 2002.

In a particularly difficult economic climate, Bull's results exceeded expectations for this second step.

Reaching positive EBIT was a prerequisite to launching the third step of the turnaround plan. This step will target the restoration of Bull's net equity as well as its long term financing.

Second half 2002

In the second half of 2002, Bull recorded a turnover of M€ 733, in line with expectations. The gross margin represents 24,4% of the turnover against 19% in the first half. From one half year to another, the SG&A were reduced by more than 47% to M€ 128, to represent 17% of the turnover, as in line with the plan's objectives.

The earnings before tax, financial expenses, goodwill depreciation and exceptional items (EBIT) reached M€ 18, to represent 2.5% of the turnover in the second half allowing Bull to exceed its initial objectives to reach breakeven.

The net result for the second half is a loss of M€ 24 after taking into account financial costs (M€ 28) and non operational expenses (M€14.5), against a net loss of M€ 524 in the first half 2002.

Bull's overall improvement of profitability addressed both products and services activities. The products activity gross margin increased from 28% to 36% of the turnover while that of the services activity grew from 3% to 8% of the turnover.

For the full year 2002, the turnover reached M€ 1,514. The gross margin amounted to M€ 324, representing 21% of the turnover. R&D expenses reached M€ 73, representing 5% of the turnover.
SG&A reached M€ 371, representing 24% of the turnover. The earnings before tax, financial expenses, goodwill depreciation and exceptional items (EBIT) for the year 2002, were a loss of 133 M€, and the net loss amounted to 549 M€. Bull's net debt as of 31 December 2002, was M€ 564, including the French State shareholder advance of M€ 466 and Bull's net equity was negative for an amount of 724 M€.

Perspectives 2003

During the first half of 2003, the market of both servers and IT services will experience a new downturn. In this context the Group reiterates its turnover forecast of M€ 660, as stated in October 2002, and expects earnings before tax, financial expenses and goodwill depreciation (EBIT) of M€ 7 with a positive operational cash-flow. Bull does not foresee any exceptional charges for this period.

During this period, Bull will be focussed on consolidating its operations and implementing its strategy. Major announcements will highlight in particular its positioning in the enterprise servers market.

Beyond the achievement of these operational objectives, the Group's priority is to implement the last essential step of its turnaround plan relative to the group's recapitalisation.

The deadline of the reimbursement (end of June 2003) of the Shareholder advance granted by the French State, together with the necessity to restore Bull's net equity at the end of 2003 require that the necessary conditions to recapitalisation be met in the course of 1st half.

Press Contact :
Marie-Claude Bessis
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