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Thomson-Powered Fixed Mobile Convergence Arrives in the Baltics

Estonian Service Provider Telegrupp set to launch one of the world’s richest fixed-mobile services for businesses thanks to Thomson’s Cirpack Mobile IP Centrex solutions
Paris May 12, 2006 – Thomson (Euronext 18453; NYSE; TMS) today announced that its CIRPACK Mobile IP Centrex solutions have been deployed by Telegrupp, a leading Applications Service Provider (ASP) and system integrator in Estonia. Telegrupp is already successfully using the system in house, and is now marketing a full set of fixed-mobile convergence features for mobile operators and Mobile Virtual Network Operators (MVNOs) to provide their customers with both mobile and fixed IP networks connectivity bundled with unique converged voice features. The VoIP market is gaining rapid ground in Estonia, with a seven-fold increase in the number of subscriber lines reported for the year 2005 according to the latest Quarterly Broadband Residential Market from analysts Dataxys.

Baltic pioneers

Telegrupp’s system means that customers only require standard IP phones on their premises to enjoy all the services that are available with complex PBX systems, such as call transfer, conferencing, filtering, presence and unified voice mail. Mobile phones are integrated into the service so that users can choose to receive all their calls through a single system or have both devices ring simultaneously. Users can now enjoy a rich set of business features on their mobile phones, such as call filtering, extension dialling, multi-party conferencing and hunt groups and all these services come with a single phone number, either the mobile or fixed line number, according to the customer's preference.

Telegrupp’s Mobile IP Centrex also brings innovative features to international travellers and tele-workers. Thanks to CIRPACK’s seamless VoIP roaming feature, users have the option of phoning with any SIP phone or softphone wherever there is a broadband connection, including WiFi hotspots, receiving and placing calls as if they were in the office. When broadband is not available, the CIRPACK’s Mobile IP Centrex platform will automatically roam the calls to the users’ GSM phones so they can be reached whenever they choose.

Ivo Remmelg, Telegrupp’s CEO explained "Telegrupp has been selling PBX systems since 1997 so we believe that we are well positioned to know the needs of our business customers and the shortages of existing systems. We have been integrating, testing and using CIRPACK’s Mobile IP Centrex solution in house for a while and everyone is very excited about the features and the quality of the system. Two of our business customers are already hooked up for trials and we are working with Estonian mobile network operators to help them launch this service so that all of their clients can enjoy the same advantages. Now that the model system is in place, we can easily clone it to other clients, operators and even countries.”

As to the choice of Thomson’s CIRPACK platform, Ivo Remmelg explained “We picked Thomson’s CIRPACK SoftSwitch over other vendors as we consider it the most advanced platform on the market and has the richest feature set compared to those of the other vendors. As it comes with its own gateway, it connects smoothly to both GSM and legacy fixed networks to enable unique fixed-mobile features to be delivered very easily using standard IP and GSM phones. The flexibility of the CIRPACK platform with its open interfaces also allows us to develop new functions and feature add-ons.”

Jean-Pierre Dumolard, General Manager of Thomson’s Next Generation Network (NGN) Business Unit continued “Telegrupp is a doubly important achievement for Thomson. Not only is this the first CIRPACK client in the Baltic region, but it is also our first customer announcement for our fixed mobile convergence solutions. We are confident Telegrupp will help many operators deliver Fixed Mobile Convergence services so that Thomson can quickly become a clear market leader in the delivery of these unique features in the Baltic region. We are also working on a number of other mobile IP Centrex projects with major European GSM operators to be announced later in the year.”

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Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

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About Telegrupp

Telegrupp is a systems integrator in Telecommunications and IP networking. Founded in 1997, Telegrupp has its offices in two major Estonian cities, with its head office in Tallinn. The company was acquired by Comliet UAB (Telia-Sonera group) and Merko Ehitus AS in 2002, being joined to one of the largest communications integrators in the Baltic Region, followed by MBO in late 2005. The company has been fast growing and profitable since founding, making EEK 77 million in revenues and EEK 2 million profit in 2005. For more information about the company and services, please visit: www.telegrupp.ee or www.mobileipcentrex.com.

About Thomson

Thomson (Euronext Paris: 18453; NYSE: TMS) provides technology, services, and systems & equipment to help its Media & Entertainment clients – content creators, content distributors and users of its technology – realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA, and Thomson brands. For more information: http://www.thomson.net.

Thomson’s Access Platforms and Gateways and Cirpack (AP&G) activity, part of the company’s systems and equipment division, is a leading supplier of digital entertainment receivers to the world’s major satellite and terrestrial broadcasters, cable operators and telecom service providers. It offers a full range of digital set-top boxes, phones, broadband modems and gateways with modular VoIP, IPTV and wireless capabilities. Through its Next Generation Networks business unit, Cirpack, it is also one of the leading suppliers of softswitch solutions to migrate telecom infrastructures to NGN (Next Generation Networks) and IMS (IP Multimedia Subsystem) enabling massive deployments of broadband telephony and IP Centrex, for instance. Products are marketed under the RCA, THOMSON, SpeedTouch and CIRPACK brands. You can find more information on AP&G’s products at www.thomson-broadband.com and www.cirpack.com

Press Contacts:
Joanna Pays
CIRPACK
Tel: +33 (0)1 41 44 38 18
E-mail: jpays@cirpack.com

Ivo Remmelg
Telegrupp AS
Tel: +372 504 2706
ivo.remmelgtelegrupp.ee