Dear Shareholders,

NET2S has become a profitable and fast-growing group. This success is reflected in the steady advance of our stock price since the beginning of the year. Such an excellent result is driven by the dedicated commitment of the entire staff, all of whom have contributed unreservedly to the success of the business plan launched in the first half of 2003. We achieved what we set out for: restructuring our activity, returning to organic growth and finally get back to profitability in the third quarter of 2004. 

The end of 2004 and the first half of 2005 confirmed our proactive strategy and our intention to continue building up our business. Several important results were achieved during this period: 
- The December-2004 acquisition of Cyber Networks boosted our position in the security segment. Expert in a strong growth market, Cyber Networks not only enriches the group's service line-up but also allows diversification to new business sectors and government administrations,
- The acquisition of Syntone's entire capital confirmed our offshore strategy. Our partner for the last two years, this Moroccan company will provide an excellent basis to offer European customers a selected range of highly competitive services,
- We pursued our services' enrichment, maintained the organic growth
and improved the operating margin despite persistent, cut-throat competition.

Encouraged by these positive signals NET2S has decided to repay part of the issue premium at a rate of EUR 1 per share held on 30 June 2005. This decision is a milestone event in the history of our group, reflecting our confidence in the month s ahead and our wish to reward the for their loyalty.

  
        Bernard Razaghi
Chairman and CEO, NET2S