Ubisoft reports 2007-08 third-quarter sales

In 2007 Ubisoft moves up to the position of third-leading independent publisher1.

Two new franchises created - Assassin's Creed and Imagine.

2007-08 title release schedule updated.

2007-08 targets revised upwards and sales guidance raised for 2008-09.

LONDON, 23rd Jaunary, 2008 - Today Ubisoft, one of the world's largest video game publishers, reported its sales for the third fiscal quarter ended December 31, 2007.

Sales

Sales for the third quarter of 2007-08 came to 450 million, up 44.4%, or 50.1% at constant exchange rates, compared with the 311 million recorded for the same period of 2006-07. Sales for the first nine months of fiscal 2007-08 totaled 711 million versus 483 million in the corresponding period of 2006-07, representing an increase of 47.2%, or 52.1% at constant exchange rates.

Third-quarter sales outstripped the guidance that was raised to 410 million on13th December, 2007. This very good performance was fueled primarily by the following elements:

A further exceptional showing from Assassin's Creed. In Europe, this was the best-selling game in 2007 for the PLAYSTATION®3 computer entertainment system and the number 2 best-seller for the Xbox360 system.

In the United States, it was the second best-selling game in 2007 for the PLAYSTATION®3 computer entertainment system and the number 3 best-seller for the Xbox360 system.2

Excellent sales levels reported by our casual games including Fashion Designer, Babyz® and Animal Doctor for the Imagine series; Horsez®, Hamsterz and Catz® for the Petz® series; and MyWordCoach for the MyCoach series.

Games for new-generation consoles represented 84% of the Group's sales in the first nine months of 2007-08, versus 55% for the equivalent period of 2006-07.

Ubisoft continued to gain market share in calendar 2007, and was ranked as follows1:

Number 2 independent publisher in Europe, reporting 58% growth (versus 25% for the European market as a whole), and market share of 8.7% (6.9% in 2006).

Number 3 independent publisher in the United States, where growth came in at 49% (compared with 29% for the US market as a whole), and market share represented 6.1% (5.2% in 2006).

Yves Guillemot, Chief Executive Officer of Ubisoft, stated "The vast majority of our games reaped the benefits of particularly strong market momentum over the Christmas period. Two new long term multi-million franchises were created, Assassin's Creed and Imagine, generating sell-in sales of 5 and 2.5 million units respectively. They will join our existing portfolio of 12 franchises. As a result, Ubisoft moved up from fourth to third place in the overall ranking of independent publishers in 2007 - a year that saw the video game industry enter new dimension with previously unheard-of visibility. This revolution stems from the greater accessibility of Nintendo's consoles as well as from the superb cinema-like visual experience provided by Sony and Microsoft consoles. We expect this situation to significantly drive up market performance once again in 2008, with overall market growth representing at least 10%. Against this backdrop, Ubisoft will continue to leverage its strong brands and design capacities with a view to outperforming the market."

Outlook

Fourth-quarter 2007-08 sales

This period will see the following main releases:

Tom Clancy's Rainbow Six® Vegas 2 for PC, the Xbox360 system and the PLAYSTATION®3 computer entertainment system,

Assassin's Creed for PC and the Nintendo DS,

The game based on the Lost television series, for PC, the PLAYSTATION®3 computer entertainment system and the Xbox360 system,

New casual games for the Nintendo DS and Nintendo Wii.

Haze, which was originally scheduled for the fourth quarter of 2007-08, will now be released in fiscal 2008-09.

The Group expects sales for the fourth quarter of 2007-08 to total around 165 million, representing a 16% contraction compared with the same period of 2006-07.

Targets revised upwards for 2007-08 and 2008-09

In light of the Group's third-quarter performance and initial positive trends for the fourth quarter of the year, Ubisoft has raised its performance targets for full-year 2007-08. The 2007-08 sales target is now approximately 875 million, compared with the forecast of 840 million announced on December 13, 2007, and the Group expects current operating income before stock options to represent at least 13% of sales, versus the previous estimate of at least 12%.

At the same time, in order to take into account the postponed release date for Haze, Ubisoft has raised its 2008-09 sales target to approximately 1 billion, compared with the previously-announced forecast of around 975 million. The Group is maintaining its target for current operating income before stock options to represent at least 11% of sales.

The 2008-09 line-up will include notably the following key titles:

7 franchises, including Tom Clancy's Splinter Cell®, Brothers in Arms®, Far Cry®, Prince of Persia® and Anno,

5 new brands, including Tom Clancy's EndWar, Haze, the Shaun White snowboard game and a Tom Clancy air combat game,

New games in the Petz, Imagine and MyCoach series as well as a new line of casual games.

Recent highlights

Market share: Excluding Asia, Ubisoft was the third-leading independent publisher in the world in 2007. It ranked number 3 in the United States with 6.1% market share (compared with number 5 and 5.2% one year earlier); number 2 in Europe with 8.7% market share (compared with number 2 and 6.9%); number 2 in France with 9.3% market share (compared with number 2 and 7.7%); number 2 in the United Kingdom with 9.1% market share (compared with number 3 and 7.6%); and number 2 in Germany with 7.9% market share (compared with number 2 and 6.6%).

Ubisoft closes the acquisition of the Japanese video game development studio Digital Kids: Established in 1996 with offices in Nagoya and Osaka, Digital Kids currently has a team of 20 developers specialized in games for the Nintendo DS. The studio has worked regularly for a number of Japanese publishers and has developed several successful titles for Ubisoft's Petz line of games, including Hamsterz Life.

Disclaimer

This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly compared with the actual results that will be published. The estimated financial data have been presented to the Board of Directors and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on June 27, 2007 with the French Financial Markets Authority (l'Autorité des marchés financiers)).

Financial calendar

Release

Date

Fourth-quarter 2007-08 sales

April 24, 2008

This date is subject to change and will be confirmed at a later stage.

About Ubisoft

Ubisoft is a leading producer, publisher and distributor of interactive entertainment products worldwide and has grown considerably through a strong and diversified line-up of products and partnerships. Ubisoft has offices in 21 countries and sales in more than 50 countries around the globe. It is committed to delivering high-quality, cutting-edge video game titles to consumers. Ubisoft generated sales of 680 million for the 2006-07 fiscal year. To learn more, please visit www.ubisoftgroup.com.

Contact

Investor relations

Jean-Benoît Roquette

Head of Investor Relations

+ 33 1 48 18 52 39

Jean-benoit.roquette@ubisoft.com

® 2008 Ubisoft Entertainment. All Rights Reserved. Anno, Imagine, Petz, Horsez, Babyz, Hamsterz, Hamsterz Life, Splinter Cell, Assassin's Creed, EndWar, Ubisoft, Ubi.com, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Rainbow Six, Red Storm and Red Storm logo are trademarks of Red Storm Entertainment in the U.S. and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company.

® 2007 Ubisoft Entertainment. All Rights Reserved. Far Cry is a trademark of Ubisoft Entertainment in the US and/or other countries. Based on Crytek's original Far Cry directed by Cevat Yerli.

® 2003-2008 Ubisoft Entertainment. All Rights Reserved. Based on Prince of Persia® created by Jordan Mechner. Ubisoft Prince of Persia is a trademark of Jordan Mechner in the US and/or other countries used under license by Ubisoft Entertainment.

TM Paramount Pictures. ® 2007 Paramount Pictures and Shangri-La Entertainment, LLC. All Rights Reserved. Game Software ® 2007 Ubisoft Entertainment. All Rights Reserved.

® 2007 Ubisoft Entertainment SA and Free Radical Design Limited. All Rights Reserved. Haze is a trademark of Ubisoft Entertainment and Free Radical Design. Free Radical Design and its associated logo are trademarks of Free Radical Design Limited.

® 2007 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 is a trademark of Gearbox Software and is used under license. Gearbox Software and the Gearbox logo are registered trademarks of Gearbox Software, LLC.

® 2007 MTO Inc. All Rights Reserved. Published and distributed by Ubisoft Entertainment under license from MTO.,

"PlayStation", "PLAYSTATION", "PS" Family logo and "PSP" are registered trademarks of Sony Computer Entertainment Inc. PSP® system- Memory Stick Duo may be required (sold separately).

Microsoft, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are trademarks of the Microsoft group of companies.

Nintendo DS and the Wii logo are trademarks of Nintendo. ® 2006 Nintendo.