SOLID PERFORMANCE IN  2 0 0 3 Sharp increase in margins in 2003 In 2003, sales decreased by 1.3% but rose   by   7.4%   excluding   currency effects.  On  a  pro  forma  basis  and excluding    currency    effects,    sales decreased by 0.9%, which was a good performance     given     the     various positive   factors   that   boosted   2002 figures. Operating  income  rose  by  17.2%  to €156m,  giving  operating  margin  of 20.7%. This increase was due to: • synergies resulting from the successful integration of Ascom Hasler, • the success of new digital products, • the  final  elimination  of  losses  and cessation   of   activities   at   Neopost Online, • a firm grip on currency risk. Net income grew by 19.7% to €84m, giving net margin of 11.1%. Stronger financial position Gearing fell from 1.5 to 1.0, thanks to: • strong cash flow, • reduced working capital requirement, • the weaker dollar. During   2003,   Neopost   successfully refinanced   all   of   its   non-leasing debt.  The  very  good  terms  of  this refinancing  clearly  demonstrate  the market’s   recognition   of   Neopost’s excellent credit quality. This refinancing will enable Neopost to   redeem   its   €135m   convertible bond  issue  maturing  on  1  February 2005,   as   well   as   fund   its   future developments. 2004 outlook With its stronger organisation and its increasingly   competitive   range   of products   and   services,   Neopost   is expecting    positive    organic    sales growth  in  2004.  The  company  will also continue to increase productivity. Operating    margin    should    be    at least   22%   in   2004,   regardless   of movements in the dollar.