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Mandriva:

49% Consolidated Revenue Growth in Fiscal Year 2003/2004 H2

33% Consolidated Revenue Growth in Full Fiscal Year 2003/2004

(M Euros)	2002/03 (*)	2003/04 (*)	Variation %
1st Half Year	2,10	2,52	+21%
2nd Half Year	1,80	2,66	+49%
Total (12 months)	3,90	5,18	+33%

(*) Unaudited. Fiscal year ends September 30th.

Mandriva's revenue for fiscal year 2003-2004 has reached 5.18 millions Euros, representing a 33% increase over the previous year. This revenue is the highest in the company's history. The revenue growth strongly accelerated during H2 2003/2004, with a 49% year over year rise in revenues, when compared to a 21% year over year increase in H1.

The growth factors remain online sales, licenses, and Mandriva Linux User Club subscriptions. Those revenue lines amount to 77% of consolidated revenue (compared to 66%, 43% and 11% in each of the three previous years). Retail sales now comprise only 15% of revenue. Professional services (support, training, and consulting) comprise 8% of revenues, compared to 11% in the previous period.

Deferred revenues, which mainly consist of Club subscriptions and unfinished support contracts, amounted to 766 KEuros at fiscal year end. The order backlog, which primarily consists of service contracts, was 879 KEuros. The company therefore expects strong growth in these revenue lines as a total of 1.64 million Euros of future revenues can already be anticipated.

The acquisition of professional support company Edge-IT was effective on 4 October 2004. Consequently, this subsidiary's revenue has been excluded from the group's consolidated figures for fiscal year 2003/2004. For indicative purposes, Edge-IT billings were 268 KEuros for the year ending 30 September 2004, as opposed to 71 KEuros in the prior period, representing a growth of 279%.

The return to strong growth is evidence of the soundness of strategic choices made in 2001, when the company decided to refocus on core activities and develop lines of revenues with high margins. Mandriva's objective is to develop its Enterprise offerings, including the sales of products and new lines of professional services.

The company can also announce that it was profitable during this fiscal year. Full details will be given in a subsequent announcement.

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 : 4 753 906

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

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

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