CEVA Group Plc Reports 2006 Annual Results First Annual Disclosure After Acquisition by Apollo Management L.P. (y 2)

    
    CONDENSED CONSOLIDATED AND COMBINED CASH FLOW STATEMENTS
    in EUR millions

                               Aggregated  Successor  Predecessor Predecessor
                                Successor   period       period       2005
                                   and      ended        ended
                               Predecessor December 31, November 3,
                                  2006       2006 (1)     2006
                              (unaudited)    
    Loss before income tax        (90.2)    (14.8)      (75.4)      (18.0)

    Adjustments for:
    Depreciation, amortisation    
    and impairments                84.1      89.1        20.8        68.3

    Result on sale of property,
    plant and equipment             1.6     (0.7)         2.3        (2.1)
    Investment income and
    results from investments in
    associates                     79.0     27.0         52.0       115.0
    Changes in working capital                  
    and provisions               (117.0)    61.6       (178.6)      (94.8)
    Interest paid                 (38.7)   (25.1)       (13.6)      (11.9)
    Income taxes paid             (41.4)   (13.8)       (27.6)      (11.2)
    Other                          (2.8)     7.2        (10.0)          -
    Net cash from operating                              
    activities                   (120.4)    62.2       (182.6)       61.1

    Net cash from investing
    activities                   (129.3)   (94.0)       (35.3)      (36.2)

    Net cash from financing                      
    activities                    469.6    297.7        171.9         4.6

    Begin period cash and cash                                            
    equivalents                    93.4        -         93.4        63.9
    Change in cash and cash                                              
    equivalents                   219.9    265.9        (46.0)       29.5
    Foreign exchange               (1.2)    (1.2)           0           0
    End period cash and cash                                              
    equivalents                   264.7    264.7         47.4        93.4

(1) The company was incorporated on August 9, 2006 and had no operations until the acquisition of the logistics business from TNT N.V. on November 4, 2006.

NOTES TO THE CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

CEVA Group Plc (the "Company") is a company incorporated in the United Kingdom on August 9, 2006, with bond securities registered on the Alternative Securities Market of the Irish Stock Exchange.

The financial report of the Company for 2006 comprises the Company and its subsidiaries (together referred to as the "Group") and CEVA Group's interest in associates.

ACCOUNTING POLICIES

The accounting policies are stated in the Annual Report 2006 of CEVA Group Plc.

Comparative figures are pro forma on a combined basis.

FORWARD-LOOKING STATEMENTS NOTICE

Some statements in this press release are "forward-looking statements" within the meaning of U.S. federal securities laws. We intend that these statements be covered by the safe harbors created under these laws. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about future events. In addition to the assumptions specifically mentioned in this press release, important factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, the results and the timing of the conclusion of our tax investigations and our discussions or disagreements with other tax authorities and the other factors discussed in our annual report. Given these uncertainties, no assurance can be given as to our future results and achievements. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this press release and are neither predictions nor guarantees of future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

For further information, please contact: CEVA Logistics, Paul Kwakkenbos, Marketing & Communications Director, Tel +31-612-059086, Fax +31-20-500-6217, Email: paul.kwakkenbos@cevalogistics.com