Clarence A. Davis, Chief Executive Officer of Nestor, Inc., stated, "The results reported for the third quarter of 2008 continue to show improved operating performance despite making important investments in our sales organization for future growth. In fact, we have now reported positive operating cash flow in four of our last 6 quarters. With the addition of new business in Sweetwater, Florida and Manteca, California as well as the expansion of our Delaware Department of Transportation program announced this quarter, we expect to continue to demonstrate the company's ability to grow a successful and profitable business going forward.

"The Company remains actively engaged in its efforts to effect a restructuring and financing consistent with the general terms and conditions originally disclosed in its second quarter press release. I remain optimistic that this process, once completed, will provide Nestor with the balance sheet and capital base necessary to execute on its growth plans and provide our existing customers and prospects alike with the assurance that the Company is committed to our long term success. The completion of the bridge financing in October, the majority of which was sourced from our existing debt holders, provided the Company with needed short-term capital and represented a critical step in the context of the larger transaction, which I anticipate will close in the coming months."

The Company reported a U.S. GAAP Loss from Operations (U.S. GAAP differs from modified EBITDA as indicated at the end of this press release by including a number of non-cash charges) for the quarter ended September 30, 2008 of $916,000 compared to a Loss from Operations of $612,000 in the third quarter of 2007. Loss from Operations for the nine month period ended September 30, 2008 was $2,728,000 compared to a Loss from Operations of $2,786,000 for the comparable 2007 period. The Company incurred a non-cash charge of $122,000 for share-based compensation in the third quarter of 2008 compared to $130,000 in the third quarter of 2007, and $306,000 for the nine month period ended September 30, 2008 compared to $439,000 for the comparable 2007 period. The increase in Loss from Operations for the quarter ended September 30, 2008 is a result of the Company's investments in its sales organization. The Company's results for the nine month period ended September 30, 2008 is a result of the increase in gross profit achieved through revenue growth and decreased share-based compensation expense, partially offset by increased selling expenses.

The Company reported a U.S. GAAP net loss for the quarter ended September 30, 2008 of $3,003,000, compared to a net loss of $1,967,000 in the third quarter of 2007. Net loss for the nine month period ended September 30, 2008 was $7,252,000 compared to $5,436,000 for the comparable 2007 period. In the third quarter of 2008, non-cash derivative instrument income was $230,000 compared to $338,000 in the third quarter of 2007. For the nine months ended September 30, non-cash derivative investment income was $1,438,000 in 2008 and $2,204,000 in 2007. Also, amortization of debt discount expense was $1,008,000 for the quarters ended September 30, 2008 and 2007 and $3,023,000 and $3,024,000 for the nine months ended September 30, 2008 and 2007, respectively.

We had cash and cash equivalents of approximately $327,000 at September 30, 2008, compared to $3.1 million at December 31, 2007. More details regarding our results for the third quarter of 2008 may be found in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 13, 2008.

Nestor Traffic Systems provides automated traffic enforcement solutions to state and municipal governments. Our CrossingGuard(R) red light enforcement system uses patented multiple, time-synchronized videos to capture comprehensive evidence of red light violations. In addition, CrossingGuard(R) offers customers a unique Collision Avoidance(TM) safety feature that can help prevent intersection collisions. We also offer a video-based ViDAR(TM) speed detection and imaging system which uses non-detectable, passive video detection and enforces multiple, simultaneous violations bi-directionally. Nestor Traffic Systems is a distributor for the Vitronic PoliScanSpeed(TM) scanning LiDAR, capable of tracking multiple vehicles in multiple lanes simultaneously. CrossingGuard(R) and ViDAR(TM) are registered trademarks of Nestor Traffic Systems, Inc. PoliScanSpeed(TM) is a trademark of Vitronic. For more information, call (401) 274-5658 or visit www.nestor.com.

Statements in this press release about future expectations, plans and prospects for Nestor, including statements containing the words "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We may not achieve the plans, intentions or expectations disclosed in our forward-looking statements and investors should not place undue reliance on our forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including: market acceptance of our products, competition, further approvals of contracted approaches, legal and legislative challenges to automated traffic enforcement, patent protection of our technology, and other factors discussed in Risk Factors in our most recent Annual Report on Form 10-K filed with the SEC. Investors are advised to read our Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed after our most recent annual or quarterly report. The forward-looking statements included in this press release represent our current views, and we specifically disclaim any obligation to update these forward-looking statements in the future.

The table below is a reconciliation of U.S. GAAP net loss to modified EBITDA for the quarter and nine month periods ended September 30:

                     Three Months Ended Sept.     Nine Months Ended Sept.
                                30,                         30,
                    --------------------------  --------------------------
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------
GAAP net income
 (loss)             $ (3,003,000) $ (1,967,000) $ (7,252,000) $ (5,436,000)
Interest expense,
 net of interest
 income                1,309,000       685,000     2,939,000     1,830,000
Income tax expense           ---           ---           ---           ---
Depreciation and
 amortization          1,055,000       914,000     3,056,000     2,458,000
                    ------------  ------------  ------------  ------------
EBITDA              $   (639,000) $   (368,000) $ (1,257,000) $ (1,148,000)
Derivative
 instrument
 (income) expense       (230,000)     (338,000)   (1,438,000)   (2,204,000)
Debt discount
 expense               1,008,000     1,008,000     3,023,000     3,024,000
Stock-based
 compensation
 expense                 122,000       130,000       306,000       439,000
                    ------------  ------------  ------------  ------------
Modified EBITDA     $    261,000  $    432,000  $    634,000  $    111,000
                    ============  ============  ============  ============

We calculate Modified EBITDA by first calculating EBITDA, which we define as net income before interest expense, debt restructuring or debt extinguishment costs (if any during the relevant measurement period), provision for income taxes, and depreciation and amortization. Then we exclude derivative instrument income or expense, debt discount expense, share-based compensation expense, and asset impairment charges. These measures eliminate the effect of financing transactions that we enter into on an irregular basis based on capital needs and market opportunities, and these measures provide us with a means to track internally generated cash from which we can fund our interest expense and our growth. In comparing modified EBITDA from period to period, we also ignore the effect of what we consider non-recurring events not related to our core business operations to arrive at what we define as modified EBITDA. Because modified EBITDA is a non-GAAP financial measure, we include in a table in this press release reconciliations of modified EBITDA to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States. We present modified EBITDA because we believe it provides useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements, and that it provides an overall evaluation of our financial condition. In addition, modified EBITDA is defined in certain financial covenants under our Senior Secured Convertible Notes and was used to adjust the interest rate on those notes at July 1, 2007, and will be used at January 1, 2009 to determine whether the holders of those notes have a redemption right at May 25, 2009.

Modified EBITDA has certain limitations as an analytical tool and should not be used as a substitute for net income, cash flows or other consolidated income or cash flow data prepared in accordance with accounting principles generally accepted in the United States or as a measure of our profitability or our liquidity.

                            NESTOR, INC.
                Condensed Consolidated Balance Sheets
                IN THOUSANDS, EXCEPT SHARE INFORMATION
                                             SEPTEMBER 30,   DECEMBER 31,
                                                 2008            2007
                                            --------------  --------------
                                              (Unaudited)
ASSETS
Current assets
  Cash and cash equivalents                 $          327  $        3,135
  Accounts receivable, net                           2,762           2,806
  Inventory, net                                     1,018             922
  Other current assets                                 480             255
                                            --------------  --------------
    Total current assets                             4,587           7,118
Noncurrent assets
  Capitalized system costs, net                      9,536           9,867
  Property and equipment, net                          396             487
  Goodwill                                           5,581           5,581
  Patent development costs, net                        129             128
  Other long term assets                             1,861           1,865
                                            --------------  --------------
Total Assets                                $       22,090  $       25,046
                                            ==============  ==============
Liabilities and Stockholders' Equity
 (DEFICIT)
Current liabilities
  Current portion of notes payable, net of
   discounts                                $       18,038  $          ---
  Current portion of derivative instruments            482             ---
  Accounts payable                                   2,058             826
  Accrued interest and penalties                     1,893             572
  Accrued expenses                                     873             763
  Accrued employee compensation                        434             366
  Deferred revenue                                     691           1,220
  Asset retirement obligation                          839             330
                                            --------------  --------------
    Total current liabilities                       25,307           4,077
Noncurrent liabilities
  Long term convertible notes payable                  ---           1,719
  Long term notes payable                              ---          13,295
  Derivative instruments - debt and warrants           161           2,081
  Long term asset retirement obligation                628             934
                                            --------------  --------------
    Total liabilities                               26,096          22,106
                                            --------------  --------------
  Commitments and contingencies                        ---             ---
Stockholders' Equity (Deficit)
  Preferred stock, $1.00 par value,
   authorized 10,000,000 shares;
   issued and outstanding: Series
   B - 180,000 shares at September
   30, 2008 and December 31, 2007                      180             180
  Common stock, $0.01 par value, authorized
   50,000,000 shares issued and outstanding:
   28,954,219 shares at September 30, 2008
   and December 31, 2007                               290             290
  Additional paid-in capital                        79,278          78,972
  Accumulated deficit                              (83,754)        (76,502)
                                            --------------  --------------
    Total stockholders' equity (deficit)            (4,006)          2,940
                                            --------------  --------------
Total Liabilities and Stockholders' Equity
 (Deficit)                                  $       22,090  $       25,046
                                            ==============  ==============
                                NESTOR, INC.
               Condensed Consolidated Statements of Operations
             IN THOUSANDS, EXCEPT SHARE AND PER SHARE INFORMATION
                                (UNAUDITED)
                                Quarter Ended         Nine Months Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
Revenues:
  Lease and service fees    $    3,698  $    3,329  $    9,706  $    8,771
  Product sales                    125         ---         125         ---
  Product royalties                  3          20         526          20
                            ----------  ----------  ----------  ----------
    Total revenue                3,827       3,349      10,357       8,791
                            ----------  ----------  ----------  ----------
Cost of sales:
  Lease and service fees         2,168       1,943       5,858       5,164
  Product sales                    104         ---         104         ---
  Product royalties                ---         ---         ---         ---
                            ----------  ----------  ----------  ----------
    Total cost of sales          2,273       1,943       5,962       5,164
                            ----------  ----------  ----------  ----------
Gross profit:
  Lease and service fees         1,530       1,386       3,848       3,607
  Product sales                     21         ---          21         ---
  Product royalties                  3          20         526          20
                            ----------  ----------  ----------  ----------
    Total gross profit           1,554       1,406       4,395       3,627
                            ----------  ----------  ----------  ----------
Operating expenses:
  Engineering and
   operations                    1,077         926       3,209       3,019
  Research and development          83          99         234         318
  Selling and marketing            518         181       1,282         552
  General and
   administrative                  792         812       2,398       2,524
                            ----------  ----------  ----------  ----------
    Total operating
     expenses                    2,470       2,018       7,123       6,413
                            ----------  ----------  ----------  ----------
Loss from operations              (916)       (612)     (2,728)     (2,786)
Derivative instrument
 income                            230         338       1,438       2,204
Debt discount expense           (1,008)     (1,008)     (3,023)     (3,024)
Interest and other expense,
 net                            (1,309)       (685)     (2,939)     (1,830)
                            ----------  ----------  ----------  ----------
Net loss                    $   (3,003) $   (1,967) $   (7,252) $   (5,436)
                            ==========  ==========  ==========  ==========
Loss per share:
Loss per share, basic and
 diluted                    $    (0.10) $    (0.07) $    (0.25) $    (0.24)
                            ==========  ==========  ==========  ==========
Shares used in computing
 loss per share:
  Basic and diluted         28,954,219  26,542,888  28,954,219  22,480,692
                            ==========  ==========  ==========  ==========

SOURCE: Nestor, Inc.

Modified EBITDA for the quarter ended 30 September 2008 was USD261,000 compared to USD432,000 in the comparable 2007 period. A US GAAP loss from operations (U.S. GAAP differs from modified EBITDA) of USD916,000 compared to a loss from operations of USD612,000 in the third quarter of 2007. Non-cash derivative instrument income was USD230,000 compared to USD338,000 in the third quarter of 2007. Also, amortization of debt discount expense was USD1m for the quarters ended 2008 and 2007, respectively.

Total revenues for the nine months which ended 30 September 2008 rose to USD10.4m, up by 20% from USD8.8m for the same period in 2007. Net loss was USD2.7m (USD0.25 loss per diluted share), up from a net loss of USD5.4m (USD0.24 per diluted share) for the first nine months of 2007.

Modified EBITDA improved for the nine months ended 30 September 2008, to USD634,000 compared to USD111,000 for the comparable nine month period in 2007. Loss from operations was USD2.7m compared to a loss from operations of USD2.8m for the comparable 2007 period. Non-cash derivative investment income was USD1.4m in 2008 and USD2m in 2007. Amortization of debt discount expense was USD3m for 2008 and 2007, respectively.

Comments on this story may be sent to admin@m2.com

* EBITDA[2] was down n18.6 million at n50.8 million. The revenue impact was partially offset by a reduction in marketing, selling and distribution costs

* Operating profit was n12.7 million, a decline of n11.7 million. Lower amortisation costs further limited the impact of the revenue reduction

* Net profit attributable to shareholders was n20.1 million

* Diluted earnings per share were down 20.3 cents to 23.6 cents per share

* Channel subscribers increased 1.8 million to 52.3 million households

* Operating cash flow increased n11.1 million to n37.5 million

Amsterdam, The Netherlands and London, UK - Jetix Europe N.V. (Jetix Europe or the Company, "we", "our") (AMEX: JETIX; Reuters JETIX.AS; Bloomberg: JETIX.NA), one of Europe's leading integrated kids entertainment companies, today announced its financial results for the year ended September 30, 2008. Revenue decreased by n29.5 million to n136.9 million, compared with the year ended September 30, 2007. This was in line with management's expectations, and the guidance given at the interim results. The decline in revenue was primarily due to the effects of a limited number of previously announced deals, combined with an adverse movement in exchange rates. At exchange rates consistent with the prior year, revenue would have been n144.9 million. Operating profit was down n11.7 million, at n12.7 million. The decline in revenue was partially offset by a reduction in marketing, selling and distribution costs, as well as a decrease in amortisation costs. Net profit attributable to shareholders was n20.1 million. Operating cash flow increased by n11.1 million to n37.5 million. Subscribers increased by 1.8 million to 52.3 million at September 30, 2008.

Paul Taylor, Chief Executive Officer, said "Throughout this year we have continued to pursue our core strategy - creating the best kids entertainment content and delivering it whenever and wherever our audience wants to engage with it.

Our new programming team has made a strong start, commissioning two outstanding new co-productions. Their first, Jimmy Two-Shoes, continues Jetix's drive to create strong characters in shows which combine action with humour. The other, Kid vs. Kat, develops this further, and I am confident that both shows will prove popular. We have also increased the level of resources that we are investing in our creative development process, ensuring that our new team is well positioned to uncover the best ideas and grow them into our future hit franchises.

We have continued to strengthen our programming alliance with The Walt Disney Company (Disney). We collaborate closely on our long-term hit property, Power Rangers, and are co-producing its seventeenth season. We also have a new initiative with Disney's programming team to develop live-action series. This initiative has been given increased impetus with Disney's recently announced plans to launch a new channel, Disney XD, in the US. Disney has an impressive track record and we are uniquely placed in being able to access their expertise in this area.

Our programming alliance with Disney also benefits us in other areas. We have continued to air Disney content on a number of our channels, and in the US, Disney has been airing the second series of Pucca, one of the productions Jetix Europe developed.

We have renewed a number of major carriage deals this year, notably in Eastern Europe and with Canalsat in France. Following the Canalsat deal, we decided to restructure our French channel operations in order to take advantage of the economies of scale available from working more closely with Disney. This deal allows Jetix to continue to benefit from a profitable business in France, whilst limiting our risk and ensuring that we benefit from future revenue growth.

We are also realising synergy benefits with Disney in other areas. This year we signed an important deal which secures us access to Disney's new integrated sales structure. Disney-ABC-ESPN Television (DAET) has been created to pull together under one organisation sales of programming, channels and new media. DAET already services Jetix Europe's programme sales and this deal extends the relationship to include our channels and digital video content. I am confident that being presented alongside Disney's broad portfolio of products to their wide range of established contacts will ensure that we are able to maximise our revenue in these areas.

During the year we have also been investing in the development of our online and mobile businesses. We have redesigned our websites to take advantage of the opportunities presented by the latest developments in technology. Our new sites include a range of community features, such as avatars and loyalty rewards, as well as a new video-on-demand player and an improved games offering. The enhanced sites are currently being launched, offering our audience a new destination where they can be entertained and where they can engage and interact with our characters.

We continue to distribute our content through various third-party digital platforms. As the range of different distribution channels continues to increase, we are working to ensure that wherever kids search for entertainment, we are present. This year we have significantly increased our mobile distribution with a multi-territory deal with Orange, and we have recently launched a new service offering some of our content on a download-to-own basis through iTunes in the UK.

As a full service kids entertainment company, creating content and then delivering it through a broad range of different media, from television and online to consumer products, Jetix Europe is well positioned for the future. We will continue to pursue our core strategy, to leverage our relationship with Disney and to deliver the very best kids entertainment possible."

Dene Stratton, Chief Financial Officer, said "As expected, the results we are announcing today have been adversely affected by the impact of a limited number of specific deals, as well as exchange rate movements. However, I am pleased that the results are in line with our guidance, and that our strong focus on cost control is evident in reduced operating costs. We have achieved strong growth in operating cash flow and this year we generated n37.5 million of operating cash flow."

OPERATING REVIEW

Channels and Online

* Subscribers increased by 1.8 million to 52.3 million households * New structure in France following multi-year distribution deal with Canalsat * DAET appointed to service the distribution of our channels * Major re-launch of Jetix branded websites * Online content distribution launched on iTunes

Despite the effects on revenue of a limited number of specific deals, the Channels and Online division has continued to expand and develop its operations. We have grown the number of households reached by our channels, enhanced the appeal of our content with further localisation and increased our investment in digital media. We have also agreed to be part of a new sales structure which leverages the strengths of our majority shareholder, Disney, and should ensure we maximise future revenues.

At the end of the period our channels reached 58 countries across Europe and the Middle East. We broadcast 15 separate channel feeds in 19 languages, and our 18 websites offer our audience the opportunity to interact directly with our content.

We have increased the number of subscribers to our television channels by 1.8 million, and we now reach 52.3 million households. We continued to achieve strong growth on our Central and Eastern European (CEE) channel feed, primarily serving Russia and Romania, which increased the number of households reached by over one million. Our Polish channel also performed well, increasing subscribers by 10%. These increases were partially offset by a reduction in the number of households reached by our channel in Turkey, as one of our distribution contracts came to an end. We do not expect this to have a significant financial impact. In France we saw strong subscriber growth of almost 20% as we continue to benefit from the increased carriage we secured following the merger of TPS and Canalsat.

We have continued to localise our presence in Eastern Europe with the addition of a Bulgarian language track to our CEE feed. Jetix is the first dedicated kids channel to broadcast a local language channel in this market, helping us to consolidate our position by securing new distribution and increasing the number of households we reach. In Serbia we have begun the process of localisation with the addition of Serbian subtitles. This has already delivered results through the renewal of our distribution contract with the local satellite television operator, SBB.

We continue to realise synergies with Disney. In France we secured a multi-year distribution agreement with Canalsat and, following this agreement, we have restructured our operations. We have licensed the operation of the Jetix channel in France to the local Disney channel operations, allowing us to take further advantage of the economies of scale available from working closely with Disney. This new structure ensures that Jetix Europe will continue to benefit from a profitable business in France.

Since the period end we have secured a multi-year distribution agreement in Eastern Europe with UPC to continue carriage of our channels on their platforms in five markets. UPC is one of our largest distributors in the region, and this deal covers Poland, Romania, Hungary, Slovakia and the Czech Republic. In Eastern Europe we have also renewed our distribution deal with NTV, our second largest distribution partner in Russia. In the UK we have recently exercised our option with Sky to extend carriage by two years to 2012. This secures our long-term distribution in one of Europe's key pay television markets.

In June we announced a fundamental change to the way we sell our channels and digital video content. We have signed a deal with Disney for Disney-ABC-ESPN Television (DAET) to service the distribution of our channels. This means that, since July 2008, Jetix Europe's channels and digital content have been presented to customers alongside the portfolio of Disney and ESPN channels, films and television programmes for which DAET is currently responsible. DAET already services Jetix Europe's programme distribution business. This new deal will allow Jetix Europe to benefit from DAET's distribution expertise and strong market presence across our key territories.

Advertising revenue grew strongly in Eastern Europe. In Russia, we more than doubled advertising revenue as we increased the scale of our business. Our Poland channel feed grew advertising revenue by 30%, whilst our Hungary, Czech, Slovakia channel feed achieved growth of more than 25%. In our more developed markets advertising growth was more constrained. Healthy growth in Italy, Spain and Scandinavia was more than offset by declines in The Netherlands and France. The reported advertising revenue in France was lower than the prior year as we no longer recognise advertising revenue following our restructuring[3]. In the UK, local currency advertising growth was negated by the decline in the UK pound against our reporting currency, the euro.

We are currently re-launching our Jetix branded websites. The sites have been redesigned to take advantage of the latest developments in technology. We have introduced a range of new features, including personalised avatars, new navigation tools, an enhanced loyalty scheme and improved interactive applications. We have also focused on improving our games offering, one of our most popular online activities, and we have invested in our video-on-demand player. This investment has been in both the infrastructure, with new underlying technology, and in content, where we have begun commissioning several series of shorts primarily for online distribution. Some of these series are based on our main television content, whilst others develop new characters, which if successful could inspire future television properties.

We are also distributing our content through online and mobile distribution platforms, allowing us to reach our audience whenever and wherever they would like to engage with our characters. Online video distribution continues to expand and we offer our content through a range of different providers covering a number of business models, including transactional video-on-demand, subscription services and download-to-own.

We have recently launched a range of our most popular series for sale on iTunes in the UK, and we have other video-on-demand deals in six countries. Our channels or content are also available on mobile phones, either through an aggregator or from a network operator. At present we have services reaching eight countries, including a multi-territory deal with Orange which has led the expansion of our mobile offering into Eastern Europe.

Programme Distribution

* Strong sales from Power Rangers and Yin Yang Yo! * Second series of Pucca delivered to US alliance partners * Five new series commissioned or acquired * 165 new episodes delivered * Programme pipeline of 95 episodes

The majority of our programme distribution revenue comes from programme sales to third-party free-to-air broadcasters, which is serviced by DAET. These sales are predominantly denominated in US dollars and so have been impacted by the fall in the US dollar against the euro through the period. Revenue has also been affected by a reduced volume of episodes supplied outside of Europe and a production commissioned in the prior year from our Israel operation which was not repeated this year. However, the success of the original Israeli series has led to a new series being commissioned, which we will be delivering next year.

Our third-party programme sales were led by Power Rangers, which again sold in most major markets. Yin Yang Yo!, the latest co-production from the Jetix programming alliance with Disney also sold well, as did our recent acquisitions Captain Flamingo and Iggy Arbuckle. These shows continued to deliver strong audiences, ranking as one of the top two shows with kids in their timeslots in the major European markets in which they aired.

We have supplied a second series of Pucca to Disney ABC Television Group, our Jetix alliance partner in the US. The show airs in the Jetix programming block on Toon Disney and has continued to perform well, ranking as one of their top ten series. As we only acquire US rights on an opportunistic basis, the volume of programming we have supplied is lower than in the previous year, and we do not expect further sales in the near future.

During the year we have secured five new series. Through our global programming alliance with Disney we have commissioned a new series of Power Rangers. This will be the seventeenth season in Europe, highlighting the on-going attractiveness of this property. We have commissioned two new co-productions, Jimmy Two-Shoes and Kid vs Kat.

Jimmy Two-Shoes is the first commission from our new programming team and it is being produced by Breakthrough Animation in Canada. It follows the adventures of fourteen-year-old Jimmy after he falls into the weird world of Miseryville. We are pleased that in the recent Mipcom Junior television programming market Jimmy Two-Shoes was the most viewed show by potential buyers. This is the highest ever ranking for a new Jetix show and was achieved against a field of more than 1,000 other titles. Kid vs. Kat will be produced by Studio B, which also produced Pucca for us. It follows the exaggerated conflicts between a malevolent cat with extra-terrestrial links and the beleaguered ten-year-old boy to whom it has taken a demented dislike.

We have also acquired two new series from Cookie Jar Entertainment, Magi-Nation and World of Quest. Magi-Nation is a new action-adventure series set in an ancient magical world and World of Quest is a fantasy action-comedy following Prince Nestor on his quest against the evil Lord Spite.

During the year we have taken delivery of 165 new episodes of programming. This includes episodes from each of our major sources of programming. We have received new episodes from series co-produced through our programming alliance with Disney, Power Rangers and Yin Yang Yo!; new episodes from Jetix Europe co-productions Pucca, Combo Ninos and Kid vs. Kat, and new content from our acquired series Captain Flamingo, Urban Vermin, Magi-Nation and World of Quest.

At the end of the period we had 95 episodes in production.

Consumer Products

* Power Rangers remains largest property * Pucca continues strong performance * Four new magazines launched * Strong home entertainment sales of Marvel catalogue * Consumer products rights secured on new series and properties

As expected, the reported results in our consumer products division have been affected by the decision not to produce a third series of A.T.O.M. Alpha Teens on Machines. As a result the master toy licence sale in the prior year was not repeated. There has also been an impact on reported revenue from the change in our contract with Disney Consumer Products, which was phased in during the first quarter of the prior year, and the fall in the US dollar against the euro.

Power Rangers, our largest selling property, is represented for us by Disney Consumer Products (DCP). Overall Power Rangers revenue has been under pressure as we have seen increased competition from a number of new properties with a similar target audience, in a difficult trading environment. However, following last year's change in our contractual arrangements with DCP, which allows us to be included directly in DCP's agreements, we have seen a significant increase in our volume of contracts, highlighting Power Rangers continued popularity. We have also been expanding our sales into Eastern Europe, building upon our strong channel presence in these markets.

Jetix Consumer Products (JCP), our in-house consumer products division, had a good year with strong revenue growth in both its merchandising and home entertainment divisions. JCP represents all of our owned and third-party properties, apart from the Power Rangers rights which we have licensed to Disney.

In JCP's merchandising division we have continued to develop Pucca, which again delivered strong revenue growth this year. France remains Pucca's key market, with fashion and stationery the most important categories. We have continued to exploit the Jetix brand with new magazines launched in Turkey, Hungary, Romania and Bulgaria. Following these launches we have ten magazines across Europe, each of which helps to build the Jetix brand and offers new commercial opportunities for our advertising partners.

Home entertainment has also seen strong revenue growth this year. Our catalogue of Marvel series, including characters such as Spiderman, The Incredible Hulk and Iron Man, has been a notable highlight. We have secured a number of new deals, reaching over 30 countries. A range of Marvel titles was also licensed in Italy to the newspaper Gazzetta dello Sport where the series featured in a promotion, with an exclusive DVD available for purchase by readers who also bought a newspaper. Some of the Marvel licensing deals include a commitment to advertise the products on our local television channels, demonstrating the benefits of building franchises across all of our operations.

During the year we have continued to expand the range of properties we represent. We have secured the consumer products rights to our two new co-productions, Jimmy Two-Shoes and Kid vs. Kat. We are also the agent for all available consumer products rights on our recent acquisitions, World of Quest and Magi-Nation. Alongside our television properties we are looking to leverage the scale of our consumer products business, and we have just been appointed as exclusive merchandising licensee by the Really Useful Group for a number of their major musicals. We will be representing a range of the non-music merchandising rights outside of the theatre for Joseph and the Amazing Technicolor Dreamcoat, Cats, Starlight Express and Evita.

FINANCIAL REVIEW

Revenue

Revenue decreased 18% to n136.9 million. On a constant currency basis, revenue would have been n144.9 million, a decline of 13% (see note 5).

Channels and online revenue decreased 15% to n104.2 million. Subscription revenue decreasing 22% to n62.6 million as a result of rate reductions in a limited number of markets, the impact of the appreciation of the euro against the pound sterling and the US dollar[4], and the licensing of our channel operations in France to The Walt Disney Company France[5]. This was partially offset by an increase in the subscriber rate in a key Western European market and increases in the number of subscribers in Italy, CEE and Poland. Advertising revenue increased 1% to n37.7 million[4]. At exchange rates consistent with fiscal 2007, advertising revenue would have increased by 6% with increases across most territories. Other channel and online revenue was down at n3.9 million.

Our programme distribution revenue was n15.9 million, a decrease of 24%. The decrease is primarily due to the delay of programme sales in Israel until fiscal 2009, the timing of programme deliveries to broadcasters and lower sales of programming with non-European rights. Revenue was also impacted by the strengthening of the euro versus the US dollar as distribution sales are predominantly US dollar-based.

Consumer products revenue decreased 25% to n16.8 million. The decrease was principally a result of the fiscal 2007 A.T.O.M. Alpha Teens on Machines master toy license not being repeated this year, increased competition in the market with respect to the Power Rangers property, and the change in recording DCP Power Rangers revenue on a net basis[6]. This was partially offset by increased home entertainment revenue, primarily for the Marvel properties, and growth of JCP merchandising revenue.

Marketing, Selling and Distribution Costs

Marketing, selling and distribution costs decreased 21% to n39.6 million. This was primarily driven by the appreciation of the euro against the pound sterling and the US dollar, a decrease in participations, and savings from the licensing of our channel operations in France. The decrease in participations largely resulted from a one-time reduction of the liability, following the revision of estimates of the ultimate performance of certain properties. There were also savings in production costs, driven by the delay of programming in Israel, and lower costs from the change in accounting for the DCP Power Rangers arrangements (resulting in revenue being recorded net and with no commission expense)[6].

General and Administrative Costs

General and administrative costs decreased n0.7 million to n47.8 million principally due to the strengthening of the euro against the pound sterling and the US dollar, and savings from the licensing of our channel operations in France. Other cost reductions included lower bad debt expense and professional fees. These lower overall costs were partially offset by increases from the end of an office rental rebate period, French employee termination costs, an increase in share based compensation and costs related to our channel distribution deal with DAET.

EBITDA

EBITDA decreased 27% to n50.8 million. Channels and online EBITDA was n39.6 million, a decrease of 22%. This is primarily due to the decrease in subscription revenue and increased office rental costs due to the end of the rebate period, offset by the reduction in bad debt expense and savings in production costs.

Programme distribution EBITDA decreased 14% to n11.2 million due to the timing of programme deliveries to broadcasters, the net impact of the delay in programme sales within Israel, offset by the one-time adjustment to the participation liability.

Consumer products EBITDA was down 31% to n8.9 million as a result of the fiscal 2007 A.T.O.M. Alpha Teens on Machines master toy license not being repeated in fiscal 2008 and increased competition with respect to our Power Rangers property, offset by decreased costs from participation fees.

Shared costs not allocated to segments increased to n8.9 million principally as a result of one-time employee termination costs for our French channel operations, an increase in office rental costs due to the end of a rental rebate period, and increased share based compensation charges as described above.

Amortisation and Impairment of Programme Rights

Amortisation and impairment of programme rights (defined as cost of sales in the income statement) decreased 15% to n36.8 million primarily due to the appreciation of the euro versus the US dollar, as the programme library is predominantly US dollar based, and a decline in the amortisation related to titles with non-European rights. This was partially offset by an impairment for programme rights on a limited number of our titles as a result of changes in our future programming schedules. Movements of foreign exchange rates contributed n4.4 million to the savings and, excluding the exchange rate movements, amortisation and impairment on programme rights would have declined by 5%.

Finance Income (net)

Finance income (net) decreased n1.0 million to n4.9 million primarily due to a decrease in interest rates and a decrease in the average cash balances held by the company due to the n50 million distribution to shareholders made during fiscal 2007.

Gain on Foreign Exchange

The gain on foreign exchange recognised during the year of n8.0 million primarily relates to gains on intercompany transactions which reflect the exchange risk of doing business with foreign group members where the functional currency is not in euros[7]. Commencing April 2008, foreign exchange gains or losses in relation to certain intercompany transactions, that are formally deemed to be permanent in nature, are no longer recognised in the statement of income but directly recognised in equity. If this formal process had been in place at October 1, 2006, the gain on foreign exchange would have been n3.4 million and n0.8 million for fiscal 2007 and 2008, respectively.

Profit Before Tax Expense

Profit before tax and minority interest decreased by 36% to n28.2 million, resulting from decreased EBITDA as discussed above, a reduction in gains on foreign exchange and a decrease in net finance income.

Tax Expense

The effective tax rate for the period was 24% compared with 14% in the prior period. This higher rate primarily reflects the differential pattern of profit distribution among the tax jurisdictions in which the Group operates, changes to the forecast utilisation of deferred tax losses, changes to tax rates that impacted the carrying value of certain deferred tax assets and an adjustment in the previous fiscal year that did not recur in the current period.

Minority Interest[8]

Net profit attributable to minority interest increased by n0.6 million to n1.2 million resulting from higher profits from the Polish channel.

Earnings per Share

Basic and diluted earnings per share decreased to 23.6 cents from 43.9 cents in the prior period.

Cash Flow

Cash and cash equivalents increased by n33.1 million to n132.6 million from September 30, 2007. Net cash generated from operations increased by n11.1 million to n37.5 million primarily as a result of the fiscal 2007 use of working capital not being repeated, partially offset by lower net profit.

OUTLOOK

At present, visibility on fiscal 2009 is limited, due to the uncertainty of the economic outlook. However, we currently expect that revenue in 2009 will be broadly flat with the current year, assuming current exchange rates. The new structure of our channel operations and carriage agreement in France[9] and the possible effect of general economic conditions on advertising revenue are expected to offset growth in other areas of the business.

We currently expect that costs in fiscal 2009, excluding amortisation, will approach the fiscal 2007 level. Costs in fiscal 2008 benefited from cost control efforts, as well as a number of items which we do not expect to be repeated in 2009, for example the reduction in the provision for participations. Alongside the impact from these, we are expecting cost increases in 2009 from strategic initiatives and from costs directly linked to revenue increases in specific areas.

FINANCIAL CALENDAR

We will be announcing our interim results for the 6 months ending March 31, 2009 on May 14, 2009. We will be holding our Annual General Meeting (AGM) on January 29, 2009. Further details will be published on our website, www.jetixeurope.com. Please note that this is a change to the previously advised AGM date.

Jetix Europe N.V. Consolidated Statements of Income for the Years Ended September 30, 2008 and September 30, 2007

Year ended Year ended % Change In euro' 000 September 30, September 30, Unaudited 2008 2007

Revenue 136,917 166,444 (18)% Cost of sales (36,770) (43,441) 15% Gross Profit 100,147 123,003 (19)% Marketing, selling and (39,622) (50,025) 21% distribution costs General and administrative costs (47,791) (48,526) 2% Operating profit 12,734 24,452 (48)%

Analysed as: EBITDA 50,756 69,392 (27)% Amortisation and impairment of (36,770) (43,441) 15% programme rights Depreciation of property and (434) (659) 34% equipment Amortisation of other (818) (840) 3% intangibles 12,734 24,452 (48)%

Finance income 11,658 11,752 (1)% Finance expense (6,793) (5,898) (15)% Gain on foreign exchange 8,033 10,770 (25)% Share of net profits from joint 2,526 2,755 (8)% ventures Profit before tax expense 28,158 43,831 (36)% Tax expense (6,866) (5,987) (15)% Net profit 21,292 37,844 (44)% Attributable to minority (1,172) (537) (118)% interest Net profit attributable to 20,120 37,307 (46%) shareholders

Earnings per share for net profit attributable to the equity shareholders of the Group during the period (expressed in euro cents per share) Basic 23.6 43.9 Diluted 23.6 43.9

The notes on pages 17 to 19 are an integral part of the consolidated financial information.

Jetix Europe N.V. Consolidated Balance Sheets as at September 30, 2008 and 2007 In euro' 000 September 30, 2008 September 30, 2007 Unaudited

ASSETS Non-current assets Intangible assets Programme rights 66,024 81,647 Goodwill 9,834 9,834 Other 1,593 1,896 Total intangible assets 77,451 93,377

Property and equipment, net 985 1,022 Investment in joint ventures 849 649 Deferred tax assets 5,572 7,589 Total non-current assets 84,857 102,637

Current assets Trade and other receivables, 44,179 47,053 net Related party receivables 5,998 11,278 Cash and cash equivalents 132,567 99,488 182,744 157,819 Total assets 267,601 260,456

EQUITY Capital and reserves attributable to the Group's equity Share capital 21,310 21,303 Share premium 409,231 408,948 Other reserves (39,490) (27,906) Retained losses (176,831) (196,951) 214,220 205,394 Minority interest 1,724 1,542 Total equity 215,944 206,936

LIABILITIES Current liabilities Trade and other payables 44,920 44,913 Current income tax liabilities 3,262 3,159 Related party payables 2,236 3,227 Provisions for other 1,239 2,221 liabilities 51,657 53,520

Total equity and liabilities 267,601 260,456

The notes on pages 17 to 19 are an integral part of the consolidated financial information.

Jetix Europe N.V. Consolidated Statement of Changes in Equity for the Years Ended September 30, 2008 and September 30, 2007

In euro' 000 Share Share Currency Other Share Retained Minority Total Unaudited capital premium translation Reserves[10] option (losses)/ interest equity adjustment reserve earnings

Balance at 21,199 456,799 (11,383) - 2,875 (234,258) 1,627 236,859 September 30, 2006 Currency - - (19,786) - - - (26) (19,812) translation differences Net profit - - (19,786) - - - (26) (19,812) recognised directly in equity Profit for - - - - - 37,307 537 37,844 the period Total - - (19,786) - - 37,307 511 18,032 recognised income for period

Distribution - (49,930) - - - - - (49,930) of share premium

Employee share option scheme Value of - - - 429 210 - - 639 employee services Proceeds 104 2,079 - - - - - 2,183 from shares issued Change in - - - - (251) - - (251) settlement from equity to cash for restricted shares Total 104 2,079 - 429 (41) - - 2,571 employee share option scheme Redemption - - - - - - (596) (596) of shares

Balance at 21,303 408,948 (31,169) 429 2,834 (196,951) 1,542 206,936 September 30, 2007

Currency - - (12,275) - - - (232) (12,507) translation differences Net profit - - (12,275) - - - (232) (12,507) recognised directly in equity Profit for - - - - - 20,120 1,172 21,292 the period Total - - (12,275) - - 20,120 940 8,785 recognised income for period

Distribution of share premium

Employee share option scheme Value of - - - 668 23 - - 691 employee services Proceeds 7 283 - - - - - 290 from shares issued Total 7 283 - 668 23 - - 981 employee share option scheme

Redemption - - - - - - (758) (758) of shares

Balance at 21,310 409,231 (43,444) 1,097 2,857 (176,831) 1,724 215,944 September 30, 2008

The notes on pages 17 to 19 are an integral part of the consolidated financial information.

Jetix Europe N.V.

Consolidated Cash Flow Statements for the Years Ended September 30, 2008 and 2007

In euro' 000 Notes Year ended Year ended Unaudited September 30, September 30, 2008 2007

Cash flows from operating activities Net profit 21,292 37,844 Depreciation 434 659 Amortisation 36,056 44,281 Impairment charge 1,532 - Loss on disposal of assets - 75 Share based compensation charge 1,756 1,177 Equity in income of joint (1,063) (834) ventures Interest income (11,658) (11,752) Interest expense 6,793 5,898 (Decrease)/increase in provision (688) 1,009 for bad and doubtful debts Decrease in other liabilities - (1,394) Deferred and current taxation 6,866 5,987 Decrease in amounts due from - 985 related parties Decrease in provisions for other (898) (1,381) liabilities Adjustment for non-cash movement (7,751) (11,210) in intra-group balances Operating cash flows before change 52,671 71,344 in working capital

Change in working capital 3 5,925 (21,218)

Cash generated from operations 58,596 50,126

Purchase of programme (21,878) (22,804) rights Dividends received from 863 510 joint ventures Interest received 11,406 11,250 Interest paid (6,793) (5,898) Income tax paid (4,743) (6,830)

Net cash generated from operating 37,451 26,354 activities

Cash flows from investing activities Purchases of property and equipment (361) (301) Purchases of software (510) (40) Net cash from investing activities (871) (341)

Cash flows from financing activities Proceeds from exercise of employee 290 2,183 share options Redemption of shares to minority (758) (596) interests Distribution of share premium - (49,930)

Net cash from financing activities (468) (48,343)

Increase/(decrease) in cash and 36,112 (22,330) cash equivalents Cash and cash equivalents at the 99,488 127,126 beginning of the year Effects of exchange rate changes on (3,033) (5,308) cash and cash equivalents Cash and cash equivalents at the end of the year 132,567 99,488

The notes on pages 17 to 19 are an integral part of the consolidated financial information.

Jetix Europe N.V. Operating Results by Business Segment for the Years Ended September 30, 2008 and 2007 Year ended Year ended % Change In euro' 000 September 30, September 30, Unaudited 2008 2007

BUSINESS SEGMENT

Segment Revenue Channels and online 104,211 122,897 (15)% Programme distribution 15,917 21,068 (24)% Consumer products 16,789 22,479 (25)% Total revenue 136,917 166,444 (18)%

EBITDA

Channels and online 39,590 51,054 (22)% Programme distribution 11,180 13,040 (14)% Consumer products 8,861 12,772 (31)% Shared costs not allocated to (8,875) (7,474) (19)% segments Total EBITDA 50,756 69,392 (27)%

Segment Result

Channels and online 9,504 19,664 (52)% Programme distribution 7,138 5,760 24% Consumer products 4,694 6,911 (32)% Shared costs not allocated to (8,602) (7,883) (9)% segments Operating profit 12,734 24,452 (48)%

Jetix Europe N.V.

Operating Results by Geographic Segment for the Years Ended September 30, 2008 and 2007

Year ended Year ended % Change In euro' 000 September 30, September 30, Unaudited 2008 2007

GEOGRAPHIC SEGMENT

Revenue

Italy 28,438 25,381 12% United Kingdom and Ireland 26,388 43,952 (40)% Central and Eastern Europe 19,374 18,359 6% Benelux 15,695 18,187 (14)% France 11,577 18,561 (38)% Germany 10,813 10,931 (1)% Poland 8,417 8,565 (2)% Nordic Region 5,752 5,414 6% Middle East 5,287 8,739 (40)% Spain and Portugal 4,001 4,749 (16)% USA 700 1,171 (40)% Other 475 2,435 (80)% Total revenue 136,917 166,444 (18)%

EBITDA

Italy 13,258 10,620 25% United Kingdom and Ireland 13,301 27,312 (51)% Central and Eastern Europe 8,608 6,614 30% Benelux 3,530 5,192 (32)% France 5,500 8,661 (36)% Germany 4,073 4,300 (5)% Poland 5,410 4,794 13% Nordic Region 1,501 783 92% Middle East 2,387 4,568 (48)% Spain and Portugal 1,281 1,848 (31)% USA 520 725 (28)% Other 262 1,449 (82)% Shared costs not allocated to (8,875) (7,474) (19)% segments EBITDA 50,756 69,392 (27)%

Less: amortisation, impairment 38,022 44,940 15% and depreciation

Operating profit 12,734 24,452 (48)%

Notes to the consolidated financial information Unaudited

1 Basis of preparation

The consolidated financial information of the Group has been prepared using accounting policies which are consistent with the policies used in preparing the consolidated financial statements for year ended September 30, 2007.

The consolidated financial information does not include all of the financial statement disclosures included in the annual consolidated financial statement prepared in accordance with International Financial Reporting Standards (IFRS) and therefore should be read in conjunction with the most recent annual consolidated financial statements.

The preparation of financial information requires that management make estimates in reporting amounts of certain revenues and expenses for each financial year and certain assets and liabilities at the end of each financial year. On an ongoing basis, management reviews its estimates, including those related to revenue, accruals for costs incurred but not billed from vendors, bad debts, potential impairment and useful lives of assets, income taxes, certain other accrued liabilities and share-based compensation. Actual results may differ from these estimates.

The consolidated financial information presented in this document is for the twelve months ended September 30, 2008. This period is compared to the corresponding twelve months ended September 30, 2007, unless otherwise stated.

Weighted average exchange rates used in the translation of income statement accounts were US dollar - n1 = $1.504 (2007 - n1 = $1.331) and pound sterling - n1 = GBP0.763 (2007 - n1 = GBP0.676). Exchange rates used to translate assets and liabilities at the balance sheet date were US dollar - n1 = $1.445 (September 30, 2007 - n1 = $1.415) and pound sterling n1 = GBP0.799 (September 30, 2007 - n1 = GBP0.698).

2 Share-based compensation

During the year ended September 30, 2008, there were 75,297 restricted shares for Jetix Europe N.V. issued. The restricted shares vest in two tranches at January 9, 2010 and January 9, 2012. There are no performance related criteria associated with the restricted shares. During the period there were 27,107 options exercised. There were 18,808 restricted shares and 8,194 options forfeited.

The total share-based compensation expense for the year ended September 30, 2008 is n1.8 million (n1.2 million for the year ended September 30, 2007), of which n0.7 million related to Disney share options and restricted shares (n0.4 million for the year ended September 30, 2007).

Notes to the consolidated financial information Unaudited

3 Change in working capital

In euro' 000 Year ended Year ended Unaudited September 30, September 30, 2008 2007 Change in working capital

Decrease/(increase) in trade and 2,240 (214) other receivables Decrease/(increase) in amounts due 5,353 (2,318) from related parties Decrease in trade and other (804) (9,697) payables Decrease in amounts due to related (864) (8,989) parties 5,925 (21,218)

The Consolidated Statement of Cash Flows reflects the cash flows arising from the activities of Group companies as measured in their own currencies, translated to euros at monthly average rates of exchange. Therefore, the cash flows recorded in the Consolidated Statement of Cash Flows exclude both the currency translation differences which arise as a result of translating the assets and liabilities of non-euro Group companies to euro at year-end rates of exchange, with the exception of those arising on cash and cash equivalents. These currency translation differences must therefore be added to the cash flow movements at average rates in order to arrive at the movements derived from the Consolidated Balance Sheet.

4 Earnings per Share

Basic earnings per share (EPS) is net profit attributable to shareholders divided by the weighted average number of shares outstanding. Diluted EPS reflects the potential dilution that would occur if dilutive share options and non-vested restricted shares were exercised. A reconciliation of the weighted average number of shares is as follows:

(000's of shares) Year ended Year ended Unaudited September 30, 2008 September 30, 2007 Weighted average number of common shares used in 85,227 84,899 calculated basic EPS

Effect of dilutive securities - Share options 4 14 - Unvested restricted shares 96 36 Weighted average number of common shares used in 85,327 84,949 calculating diluted EPS

Notes to the consolidated financial information Unaudited

5 Analysis of effects of changes in exchange rates

The following table shows the operating results by business segment at exchange rates consistent with those in fiscal 2007[11].

Year ended Year ended Year Change % Change In euro' 000 September September ended at at Unaudited 30, 2008 30, 2008 September constant constant at 2008 at 2007 30, 2007 exchange exchange exchange exchange rates rate rates rates BUSINESS SEGMENT

Segment Revenue Channels and 104,211 110,852 122,897 (12,045) (10)% online Programme 15,917 16,564 21,068 (4,504) (21)% distribution Consumer 16,789 17,454 22,479 (5,025) (22)% products Total revenue 136,917 144,870 166,444 (21,574) (13)%

EBITDA Channels and 39,590 41,887 51,054 (9,167) (18)% online Programme 11,180 11,325 13,040 (1,715) (13)% distribution Consumer 8,861 8,883 12,772 (3,889) (30)% products Shared costs (8,875) (9,944) (7,474) (2,470) (33)% not allocated to segments Total EBITDA 50,756 52,151 69,392 (17,241) (25)%

ABOUT JETIX EUROPE N.V.

Jetix Europe N.V. is one of Europe's leading integrated kids entertainment companies with localised television channels, programme distribution and consumer products businesses. Jetix Europe N.V. is listed on the Euronext Amsterdam Stock Exchange and is majority owned (approximately 73%) by The Walt Disney Company. In 2004 Jetix Europe and The Walt Disney Company launched Jetix, a global kids entertainment brand which brings a unique combination of action, adventure and cheeky humour to kids aged 6-14 worldwide.

Channels Jetix Europe broadcasts 15 channels to 58 countries across Europe and the Middle East, reaching more than 52 million households. These channels are broadcast in 19 languages, with content tailored to suit each market. The 13 Jetix branded channels entertain kids ages 6-14, whilst Jetix Play targets a younger audience, and in Italy, GXT targets teenage boys. Jetix Europe also runs localised websites, supporting all of Jetix Europe's activities by enabling kids to interact with their favourite characters through video-on-demand, games and exclusive content.

Programme Distribution Jetix Europe owns one of the largest libraries of kids programming in the world with approximately 6,000 episodes. Distributed to more than 110 terrestrial, cable and satellite channels in over 50 markets across Europe and the Middle East, the library includes major global programming franchises such as Power Rangers, Sonic X, Spiderman, X-Men and Yin Yang Yo! Jetix Europe also has branded blocks that appear on terrestrial TV channels across Europe, reaching over 100 million households. The Jetix Europe library is serviced by Disney-ABC-ESPN Television.

Consumer Products Jetix Consumer Products International (JCP) is Jetix Europe's consumer products and home entertainment business. JCP has representation in over 50 countries, including fully integrated offices in the UK, France, Germany, Israel, Italy, Spain and the Netherlands, as well as third party agents in other key markets. JCP's properties are sourced from the Jetix Europe library and include Sonic X and the Jetix brand, as well as third party representation for properties such as Pucca and Totally Spies.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. These statements may be identified by words such as "expect", "should", "could", "shall" and similar expressions. These statements are subject to risks and uncertainties, and actual results and events could differ materially from what is contemplated by the forward-looking statement. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions, competition for viewers and ratings, changes to our channel distribution deals, the popularity of our content and characters, technology issues or changes in the distribution of television, regulatory change, the timing of new programme deliveries and foreign exchange fluctuations. The foregoing list of factors should not be construed as exhaustive. Jetix Europe disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

[1] All comparisons and percentage changes are stated versus the year ended September 30, 2007. [2] Consistent with prior years, EBITDA is operating profit stated before programme amortisation, impairment and depreciation. [3] On June 1, 2008, Jetix Europe licensed its French channel operations to The Walt Disney Company France. From that date forward, Jetix Europe is paid a license fee, which is recorded as other revenue in the Channels and Online segment. During the term of the contract Jetix will no longer record gross revenue (subscription or advertising) or marketing, selling, distribution or general and administrative costs for channel operations in France. [4] In certain markets revenues and costs are denominated in either pound sterling or US dollar, including the UK, CEE, Poland and Israel. [5] On June 1, 2008, Jetix Europe licensed its French channel operations to The Walt Disney Company France. From that date forward, Jetix Europe is paid a license fee, which is recorded as other revenue in the Channels and Online segment. During the term of the contract Jetix will no longer record gross revenue (subscription or advertising) or marketing, selling, distribution or general and administrative costs for channel operations in France. [6] Reported revenue was impacted by a change in our Power Rangers representation contract with DCP, which resulted in revenue being recorded net of DCP's share of revenue. Measured on a consistent basis against the prior year, impact on revenues was n0.7 million. Revenue had been recorded gross along with the related DCP commissions in marketing, selling and distribution costs under the previous arrangement. This change was phased in during the first half of fiscal 2007. [7] Primarily the result of balances between group members denominated in dollars. The euro to US dollar year end rate has increased from 1.415 to 1.445 in 2007 and 2008, respectively. The euro to US dollar rate at March 31, 2008 was 1.580. [8] Minority interest relates to a third party's 20% interest in Jetix Poland Limited. [9] On June 1, 2008, Jetix Europe licensed its French channel operations to The Walt Disney Company France. From that date forward, Jetix Europe is paid a net license fee, which is recorded as other revenue in the Channels and Online segment. During the term of the contract Jetix will no longer record gross revenue (subscription or advertising) or marketing, selling, distribution or general and administrative costs for channel operations in France. [10] The other reserves represent a capital contribution by Jetix Europe's parent company, The Walt Disney Company, for Disney stock options issued to Jetix Europe employees [11] A number of subsidiaries within the Group have a functional currency that is not the euro. To provide an approximation of the underlying fiscal 2008 results excluding the impact of foreign currency movements, the monthly results in the applicable functional currency of these subsidiaries have been retranslated at an equivalent rate that would have been applied in fiscal 2007. Certain transactions which are originated in a currency other than the euro and the functional currency of the subsidiary have been separately translated using the fiscal 2007 rate.

Bergweg 50, 1217 SC Hilversum, The Netherlands. PO Box 901, 1200 AX Hilversum, The Netherlands. Official Seat: Rotterdam. Trade Register Number: 32076694. www.jetixeurope.com

The report can be downloaded from the following link:

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

SOURCE: Jetix Europe N.V

"Since 1934, SMPTE has honored a handful of professionals each year who have significantly advanced the entertainment technology industry," said Kimberly Maki, SMPTE and SMPTE 2008 executive director. "Recipients are selected by an extensive review process conducted by fellow innovators and honored at the kind of red carpet event that Hollywood does best."

The SMPTE 2008 Honors & Awards Ceremony and Reception is sponsored by Dalsa and Sony Electronics Inc.

GOLD MEDAL AWARD WINNERS

-- The Progress Medal, which will be given to Dayton, recognizes outstanding contributions to the progress of motion picture and television engineering.

-- The Eastman Kodak Gold Medal, honoring outstanding contributions that lead to new or unique educational programs utilizing motion pictures, television, or photography, will be bestowed upon David Master, founder of non-profit educational organization ACME Animation, for his innovations in distance learning for animators.

-- The Technicolor/Hebert T. Kalmus Gold Medal, recognizing outstanding contributions to the development of color films, processing, techniques or equipment for making color motion pictures, will be given to Michael E. Ryan, film technology director for entertainment imaging at Eastman Kodak Company, for his contributions to the development of color negative film products and his pioneering work in electron sensitization technology.

-- The Fuji Gold Medal for the design and development of techniques and equipment advancing photographic or electronic image origination will be bestowed on Dr. Albert Theuwissen, professor at Delft University of Technology and founder of Harvest Imaging, for his contributions to solid-state image sensing.

-- The Samuel L. Warner Memorial Medal for design and development of methods and/or equipment for sound-on-film motion pictures will be given to Shawn F. Jones, chief engineer and chief technology officer of NT Audio, for his innovative work in optical negative recording and multi-format digital mastering.

FELLOWS

Members are elevated to fellows when, by proficiency and contributions, they have attained an outstanding rank among engineers or executives in the motion picture, television or related industries.

The following industry leaders will be named SMPTE Fellows: Merrick Ackermans, engineering technology fellow, Turner Broadcasting Systems; Jerry Butler, senior director interconnection projects, Public Broadcasting Service; Tze Cheong Fung, production director, Digital Magic Ltd.; Matthew S. Goldman, VP, Technology, TANDBERG Television; Al Kovalick, Avid fellow, Avid Technology; Lenny Lipton, CTO, Real D; John C. Miller, product technical specialist, Eastman Kodak Company; Ann Marie Rohaly, senior program manager, Microsoft, Inc.; Ernesto Santos, marketing & sales director, MOG Solutions; and J. Patrick Waddell, technical marketing manager, Harmonic Inc.

ADDITIONAL AWARD WINNERS

Five other awards and scholarships will be bestowed at the ceremony. They are:

-- The Journal Award, to be given to Richard B. Wheeler, senior principal scientist and Nestor M. Rodriquez, senior technical associate, both at Eastman Kodak Company

-- Journal Certificate of Merit, to be bestowed on Tomlinson Holman, professor, University of Southern California School of Cinematic Arts; Paul W. Jones, co-founder of Certifi Media Inc.; and Thomas O. Maier, research fellow, Entertainment Imaging Business Unit, Eastman Kodak Company

-- Citation of Outstanding Service to the Society, to be given to Patricia Keighley, vice president/general manager, David Keighley Productions 70mm, Inc. and Harold L. Miller, retired, formerly of Technicolor

-- Society Citation, to be given to Christopher Lennon, director, integration & standards, Harris Corporation and Stanley N. Baron, former managing director, television technology, NBC and former SMPTE President, 1995-1996

-- Louis F. Wolf Jr. Memorial Scholarship, to be awarded to Jeremy Mark Littler, student at Ryerson University, Toronto, Canada

Companies interested in sponsoring or exhibiting at SMPTE 2008 should contact Kimberly Maki, 914-761-1100 x4960.

About SMPTE 2008: Annual Tech Conference & Expo

SMPTE 2008: Annual Tech Conference & Expo takes place October 28 -- 30, 2008 at the Renaissance Hotel in Hollywood, CA. It is preceded by the full-day symposium, Filmmaking and Live Event Broadcast, on October 27, 2008, at the same location. Produced by the Society of Motion Picture and Television Engineers (SMPTE), the leading technical society for the motion imaging industry, SMPTE 2008 is created by entertainment technology professionals, for entertainment technology professionals. It features educational sessions and a hands-on show floor that highlight new and emerging media technologies of practical use to content creation, management, distribution and display professionals. Register at: (http://smpte2008.org/register).

About the Society of Motion Picture and Television Engineers

The Society of Motion Picture and Television Engineers (SMPTE) is the leading technical society for the motion imaging industry. As an internationally recognized and accredited standards-setting body, SMPTE develops standards, recommended practices and guidelines and spearheads educational activities to advance engineering and moving imagery. Since its founding in 1916, the Society has established close to 600 standards, including the physical dimensions of 35mm film and the SMPTE time code. More recently, it codified the MXF file format to support the exchange of professional AV content and crafted the Digital Cinema Standards, which paved the way for digital movie theaters. Headquartered in New York, SMPTE is comprised of engineers and other technical specialists, IT and new media professionals, filmmakers, manufacturers, educators and consultants in more than 65 countries. They are joined at SMPTE by more than 200 sponsoring corporations, principal players in content creation, production and delivery for all platforms and in entertainment hardware and software. http://smpte.org

Photos to Download
http://www.sampr.net/BDayton.jpg
Birney Dayton, President and CEO, NVISION
Progress Medal honoree
http://www.sampr.net/RWeller.jpg
Robb Weller, partner/executive producer, Weller/Grossman Productions
2008 Honors & Award's Reception and Ceremony emcee
http://www.sampr.net/KMaki.tiff
Kimberly Maki, executive director, SMPTE and SMPTE 2008

SOURCE: SMPTE

Smoke & Mirrors 
Rochelle Winters, 213-250-4603 
rochelle@sampr.net