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Thomson Transfers its Italian Tubes Activity to Videocon

26 January 2005

Thomson (NYSE:TMS)(Euronext Paris:18453) today announced an important step in the implementation of its strategy announced on 21st October 2004 to partner its Displays activity. Thomson will transfer its Italian tubes manufacturing facility in Anagni to Videocon, India's leading manufacturer of consumer electronics and white goods.

Videocon is pursuing an international expansion strategy and will develop its European manufacturing base from the Anagni plant in Italy. The agreement between Thomson and Videocon will therefore enable the progressive development of new manufacturing operations at Anagni.

The financial impact of the transaction for Thomson is fully in line with the one-time charge announced on 21st October 2004 to be taken largely against its 2004 results.

This agreement illustrates Thomson's determination to find a sustainable future for the sites within its Displays business. Thomson has previously announced a strategy of partnerships in Displays, which continues to progress on plan and schedule.

Contacts

Thomson
Monica Coull, +33 1 41 86 53 10 (Press Relations)
monica.coull@thomson.net
Severine Camp, +33 1 41 86 57 23 (Investor Relations)
severine.camp@thomson.net
David Schilansky, +33 1 41 86 52 38 (Investor Relations)
david.schilansky@thomson.net
or
Financial Dynamics
Elisa Kitson, +33 1 47 03 68 10 (Press Relations)
elisa.kitson@fd.com
Aurelie Gasnier, +33 1 47 03 68 10 (Press Relations)
aurelie.gasnier@fd.com