> E-Letter n 23 - October 2011

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1 > E-Letter n 23 - October 2011 INDEX NSE Group has more than 800 employees dedicated to customer service in the Electronic, Computer and Telecom domains, in the sectors of civil aircraft, defence, industry. EDITORIAL INTERVIEW WITH THE AFONE GROUP - ERIC DURAND-GASSELIN MULTI-LAYERED COMMERCIAL OFFER IN INTEGRATED SERVICES NSE ADAPTS ITS PROCESS APPROACH EDITORIAL - NSE CONTINUES ITS DEVELOPMENT Hello, NSE Group, created in 1983, continues its development. Our strategy is clear: to be a recognised participant in the field of design, integration and support services, partner of major groups, in the international area, in the sector of aircraft, defence and industry, for electronic and informatic activities. For greater efficiency, we decided in June 2011 to merge NSE Integrations and NSE Services into one entity named NSE, with 2 business units, respectively managed by Joaquim DA SILVA for Integrations BU and Alain ROCHER for Services BU. We also purchased in August 2011 a majority shareholding in ECT Industries, which designs, creates and sells systems, notably in electronic instrumentation and geo localization (data acquisition and transmission) for the sectors of aircraft and defence. In March 2011, we created a subsidiary, NSE Brasil, near Sao José dos Campos, in the State of Sao Paulo in Brazil, to meet the demand of our European customers established in Brazil, and for the own needs of this country and its major players, notably EMRAER. Today, NSE Group has 850 people, generating a turnover of 70 Million Euros and strengthens its international development. The next step will be a presence in India. For the Services BU, heavily involved in the sector of support in informatics and electronics at the client interface

2 (Customer Care Center) level, in logistic coordination and of course in repair, it is the opening of a new field of international intervention on higher value added products. Present and future clients should benefit of that synergy. We are working now to optimize our organization with an efficient ERP system, a control of costs, strong competencies, linked together in an international culture. This legal restructuration will bring us in next January to merge NSE Holding and ECT Industries for a better readability into a new structure, with NSE as a "control tower" of international integration and services activities, and the presence of the other subsidiaries in Hungary, Canada, Morocco, Brazil and India in the second term Please note that this new entity will be listed in the Stock-Exchange on the Alternext market. Our financial situation will be strengthened. Our corporate culture based on five values (rigor, hardwork, frankness, honesty, humility) acts as a bond between us. Reactivity and pro activity, that means playing a propository role, are our main virtues. NSE is a company oriented towards its clients. We exist thanks to the Client. We respect and listen to them. The whole NSE's teams are at your disposal. Industrial markets organizations are directed by specialization. Ours is to accompany and propose you complete offers in the field of design, integration and services support to help you in your own development. Don't hesitate to contact us. François Lacoste CEO INTERVIEW WITH THE AFONE GROUP - ERIC DURAND-GASSELIN Interview with Mr. Eric Durand-Gasselin, Group Chief Executive Officer AFONE, and Jean- Yves Tuduri Sales Director EMEA BU Services, NSE Group. Jean-Yves Tuduri - Can you introduce the AFONE group, its history and its activities? Eric Durand-Gasselin - The group AFONE is a telecommunications operator active in the fields of payment systems (e-money, purchase payments), CCTV and the provision of telecommunications services, both mobile and fixed for businesses and individuals. Philip Fournier, President of Afone and I have created the company in The main steps in our development were as follows : In 2001, we floated the company to a PLC. It is now listed on Euronext in Paris. At that time, Afone markets were telecommunications for businesses. We evolved over the coming years our solutions to be able to provide much of the fixed-line telecommunications solutions (switched network, Internet access, VPN, VoIP, Centrex, etc.). Our position remains that of a small and agile player close to its customers.

3 In 2004, we made the strategic decision to position the company in the field of electronic payment systems according to the analysis that telecom operators have taken in this market flow especially in view of the deregulation of acquisition payments (SEPA). To enter this market, Afone acquired Maps and Customer Services with a tens of thousands of merchants. These traders are traders as well as local commercial multi-site outlets. We deployed our strategy with these customers by offering to be their single point of contact for their electronic payment system: we can now provide them beyond the provision of electronic payment terminal (EPT), capturing the traffic of their financial flows on particularly attractive tariffs, and of course the operation of the traffic (as defined telecommunications) flows to their payment centres depending on the technology of their choice according to their needs (switched fixed network, ADSL / IP, GPRS mobile network). In 2005 and 2006, we positioned our company in the world of company and individual security and surveillance through the acquisition of companies in this field who have a base of more than ten thousand customers. Here again our strategy is to operate this business as a telecommunications operator, particularly with respect to telecommunications traffic from the alarm panels to the monitoring centers with an attractive pricing offer with a diverse level of service. In 2007, Afone became a mobile virtual network operator (MVNO) on the physical network of SFR. This year we formed a partnership with the Leclerc group with them and ensured the launch of their offer LeclercMobile for the general public. The mobile business expanded in subsequent years with the launch of our own brand AfoneMobile for businesses and individuals, and recently launched in partnership with the title of PQR Telegram, The Telegram Mobile. Can you describe the services performed by NSE? We have entrusted NSE with managing the global logistics for our electronic banking. NSE as a platform provides logistics management of all incoming and outgoing inventory management including new products, accessories and customer service management products. Upon receipt of an order from a AFONE customer, for either new products or accessories, NSE ensures the full management with a permanent dedicated stock, the preparation, integration, customer configuration and test payment terminals and finally the shipping to the customer. All these operations are made by NSE in permanent contact with our services by connecting IT systems between our companies that track all transactions in real time. NSE also manages the warranty of payment terminals by implementing standard swaps on the customers site. Are the customer satisfaction objectives being achieved as part of your collaboration with the NSE Services BU? Customer satisfaction is our top priority. We are committed to delivery before 13:00 at Day+1 throughout mainland France for orders received up to 17:00. Also we guarantee any exchange on customer site before 18h on day+1. This means that NSE is committed to processing and shipping the same day for orders received before 17H. NSE has set up its expertise for AFONE to meet our commitments to our customers with an in-time logistics service with options to meet specific expectations for deliveries, exchanges, Saturday morning delivery time slots. Currently we are working on a new offer with NSE as we launch towards private customers the provision of voice + unlimited internet offers evidenced by the establishment of a AFoneBox with a gold service for home delivery or droppoint packages following customer requests. In conclusion NSE is a reliable partner with a good rate of service. The expertise of NSE and its ability to adapt to the expectations of our markets allow us to envisage a collaboration with our group that is sustainable and profitable in the short, medium and long term. Of course they will have to continue to grow, to adapt to the constraints and compete! Eric Durand-Gasselin Managing Director AFONE Group Jean-Yves TUDURI Sales manager EMEA BU Services

4 MULTI-LAYERED COMMERCIAL OFFER IN INTEGRATED SERVICES Hello, In a fluctuating economy and global markets, the "Company" has to adapt continuously adjust to provide a response to its markets, its customers. The merger this year of subsidiaries of NSE Integrations and NSE Services in June (now the Business Units) and external growth in September with the entry in the NSE group of society ECT Industries, are an example of the case in point. Through this new organization, NSE offers commercial layering through "design, integration & services", based on three complementary activities in the areas of informatics, electronics, defense and aviation. The purpose of this new business model is to offer our customers "the best" in terms of technical and economic solutions, thanks to our concept called "One Roof Concept". Each entity exists within its own right and its own characteristics (recalled below). However, under one roof, NSE now has the ability to pool the expertise of each and create synergies, targetting the problem to be addressed, all of which is an international global offer. ECT Industries specializes in the design of specific products, manufacturing, marketing and maintenance of electronic systems and equipment for aerospace, defense and raill. The Integration Business Unit is engaged in the engineering, construction, installation and Maintaining in Operational Condition (MCO) of integrated embedded (or not), for Large Industries, Defence and Aerospace. The Services Business unit that specializes in management and coordination of customer relationship provides clients with support services, assistance and logistic support for their IT products, telecommunications and commercial and personal electronics throughout Europe. NSE group is present in France, Canada, Morocco, Brazil and Hungary. A technical coordination office will be launched in 2012 in India in Bangalore, for cabling and simple integration activities. Finally, the complementary expertise allows us to control the entire value chain upstream and downstream, "Design,

5 Integration & Services", with a growing presence in international markets. NSE is a company that puts the customer at the center of its concerns. Best Regards. Jean Jacques RAFFENNE Sales manager BU Integrations NSE ADAPTS ITS PROCESS APPROACH To ensure continuity in the quality process of NSE Integrations and NSE Services, systems quality management need to be harmonized and simplified. The first step will be to define a common mapping process for the management, implementation and support. PLEDGE OF QUALITY NSE Services sites are certified by l'afaq under reference QUAL/2003/ Certification ISO 9001 and ISO Declaration CNIL # You have a right of access, of modification, correction and suppression of the data which concern you (Article 34 - Law "Informatique Et Libertes" January 6, 1978). For each process, a file will be created and will include : The objective of the process, Performance indicators, The concerned axes of the quality policy, The different activities of each process with the input, output and key documents used Interactions with different processes. The second step will be to define a common control system by using a scorecard measuring the effectiveness and efficiency of each process. This scorecard will also measure the efficiency of quality management to the objectives of the quality policy. From 1 January 2012, this sole quality policy will be integrated in the new system to improve our performance and increase the satisfaction of our clients. All licenses and certifications will be maintained to ensure our customers meet their own requirements. This will also be extended to the company ECT in 2012 to control our processes consistently across the group.

6 Laurent FAVIER Quality Manager BU Services Yannick RIGAUD Quality Manager BU Integrations