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Consolidated results for the 1st half 2003/2004 (Oct 2003-March 2004)

Confirmation of operating profitability

Continued sales growth

(M€) (Oct. - March.)	03/31/2003 (*)	03/31/2004 (*)	Growth in M€	Growth %
	6 months	6 months
Revenue	2.10	2.52	+0.42	+20.0%
Gross Margin	1.55	2.12	+0.57	+36.8%
% Gross Margin	74%	84%
Operating Result	-1.27	0.21	+1.48
Net Result	-1.23	0.31	+1.54

(*) non-audited consolidated figures

For the first half of fiscal year 2004, Mandriva earned a gross margin of 2.12 million euros on sales of 2.52 million euros, for a growth rate of 36.8% and 20.6%, respectively, as compared to the same period for the previous year. Gross margin ratio improved to 84% compared to 74% for the comparable period. Both the growth in sales and the improvement in gross margin are largely attributable to the progress in E-Commerce, Royalties and the Mandriva Linux Users Club, which together now represent 76% of sales compared to 62% for the prior year comparable period.

For the half year, Mandriva recorded a positive operating result of 0.21 million euros (0.04 euros per share) compared to an operating loss of 1.27 million euros over the comparable half year period. Net income has risen to 0.31 million euros (0.07 euros per share) compared to a net loss of 1.23 million euros one year prior.

These results confirm the return of the company to structural operating profitability. Mandriva is now expecting a positive net income for the entire 2003/04 fiscal year.

The exercise of warrants resulted in the issuance of 1,084,103 new shares at 2.10 euros per share. The warrants were previously issued on May 27th 2002 and expired on April 15th 2004. The exercise resulted in the increase in the total number of shares from 3,666,953 to 4,751,056.

About Mandriva

Mandriva is a leading Linux and Open Source Software (OSS) editor. (OSS source code is freely accessible according to the GPL, the General Public License). Mandrivasoft develops and distributes the Mandriva Linux operating system. Hundreds of developers around the world contribute to the continuous improvement of the product via Internet and contribute to its internationalization (with more than 67 languages available). The company also provides related on-line and off-line services including consulting, education, support, and the Mandriva Club.
Mandriva has offices in France, USA and Canada. Since July 30th , 2001, the company is listed on Euronext Marché Libre and OTC US

Euronext: ISIN: FR0004159382, Mnemo: MLMAN, Reuters: MAKE.PA, Bloomberg: MLMAN FP
Pink Sheets: MDKFF
Number of shares : 4,751,056

Contact Mandriva
Jacques Le Marois/ Thierry Bossut
investors @ mandrakesoft . com

For additional information: mandriva.com/company/investors/newsletter

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