Trading update - To deal decisively with the new realities of today’s markets Barco announces further exceptional charges to be booked in 4Q09

Regulated information
The financial data below are unaudited

Kortrijk, Belgium, 22 January, 2010. In the wake of the economic crisis and the very significant drop in sales in the events and out-of-home media markets, Barco announces today that it has conducted a comprehensive analysis of its impairment risks and other financial exposures.

The company will book charges of approximately euro 10 million in terms of warranty related project expenses and inventory write-offs in the events and out-of-home media businesses. Consequently EBITDA for the quarter will be slightly negative.

Barco also intends to book euro 6 million of additional restructuring charges to further simplify and rationalize its operational footprint on a global basis.

Moreover the company has conducted a series of impairment tests on capitalized development & capitalized customer project costs as well as on goodwill, which will lead to a reduction by around euro 33 million in the value of related assets on its balance sheet and will generate substantial negative net income results for the quarter and for the year ended 31 December 2009.

Most of the above are non-cash charges.
Free cash generation for the quarter continues to be positive, resulting in a free cash flow for the year of approximately euro 59 million (one third cash flow from operations and two thirds related to reductions in working capital), illustrating the underlying health of the company. As compared to the net financial debt position of euro minus 32.8 million at the end of 2008, the company's net cash position at the end of 2009 was euro 23.5 million, including the divestiture of Voxar, which took place in January 2009 and the acquisition of FIMI, which was closed in December 2009.

As previously indicated the company is dealing decisively with the remnants of the economic crisis and the dramatic shortfalls of revenues in its events and media-out-of-home businesses, which have indeed substantially altered the valuation of certain assets.

Whereas the focus in 2009 was on cash generation and on restructuring, the focus in 2010 will be on the improvement of operational profit.

About Barco
Barco, a global technology company, designs and develops visualization products for a variety of selected professional markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and Asia Pacific.
Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with about 3100 employees worldwide. Barco posted sales of 725 million euro in 2008.

© Copyright 2010 by Barco

For more information, please contact

JP Tanghe JP Tanghe
Senior Advisor to the CEO - Compliance Officer
Barco NV

Telephone +32 56/26 23 22