Thomson Expands Broadband Activities in China and Asia Through Strategic Investment in NCDT.

PARIS -- Development of Digital Satellite and Cable Business Part of Thomson's Strategic Growth Initiative

Thomson (Euronext:18453)(NYSE:TMS), the worldwide leader in integrated solutions (technologies, equipment and services) for the entertainment and media industries, today announced that it is acquiring a major stake in Nokia/CITIC Digital Technology (NCDT), a leading provider of cable set-top-boxes in the People's Republic of China. NCDT is a joint venture formed by Nokia, CITIC Technology Co Ltd, a technology investor which is fully owned by financial and industrial conglomerate CITIC group, and Academy of Broadcasting Sciences (ABS), a research and development organization reporting to SARFT (State Administration for Radio, Film and Television).

The joint venture will be renamed Thomson/CITIC Digital Technology (TCDT) subject to the transaction's approval by the Chinese regulatory authorities.

Through its Broadband Access Products organization, Thomson develops technologies, products and solutions for broadband network operators who deliver digital entertainment and data to consumers and businesses. Thomson is already the worldwide leader in digital set-top-boxes and DSL modems, with strong positions in the Americas and Europe. The new TCDT partnership represents a key step in further developing Thomson's presence in the promising markets of China and Asia as a provider of equipment and services for the production and distribution of audiovisual content.

TCDT will target cable TV operators with new and exciting technologies at competitive prices, delivering end-to-end solutions with unparalleled quality and usability. Thomson will notably bring its best-in-class cable set top box technology to strengthen the joint venture's leadership in the Chinese market. Thomson's DCI1000 platform, which has been very successful on a worldwide basis since its introduction at the end of 2003, was recently customized for the Chinese market.

In anticipation of the explosive growth of digital communications in China, Thomson has also established a research and development laboratory in Beijing. This laboratory will be fully operational at the end of August and will help develop broadband access products both for the Chinese and the international market and conduct long-term projects for the corporate technology group.

"We are especially pleased to work in conjunction with CITIC, a company with major investments in Chinese cable, and SARFT. Together with CITIC and SARFT, we are dedicated to serving China's digital TV market, whose growth will be boosted by a strong governmental commitment to have world-class digital infrastructure for the 2008 Olympics," said Ghislain Lescuyer, Executive Vice President, Broadband Access Products, Thomson.

About Thomson

Thomson (Euronext:18453)(NYSE:TMS) is the leading provider of technology and service solutions for integrated media and entertainment companies. By capitalizing on and expanding its leadership positions at the intersection of entertainment, media and technology, Thomson provides end-to-end solutions to content creators, video network operators, manufacturers and retailers through its Technicolor, Grass Valley, THOMSON and RCA brands. For more information: www.thomson.net

Thomson's Broadband Access Products activity, part of Thomson's Video Network Solutions division, is the leading supplier of digital entertainment receivers to the world's major satellite, cable and terrestrial broadcasters. It is also one of the leading suppliers of high-speed modems, IP set-top boxes, and telephones to telephone companies around the globe. Products are marketed under several brands including RCA, Thomson, and SpeedTouch.