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<SEC-DOCUMENT>0001041934-06-000005.txt : 20060518
<SEC-HEADER>0001041934-06-000005.hdr.sgml : 20060518
<ACCEPTANCE-DATETIME>20060518065923
ACCESSION NUMBER:		0001041934-06-000005
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060518
FILED AS OF DATE:		20060518
DATE AS OF CHANGE:		20060518

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EDAP TMS SA
		CENTRAL INDEX KEY:			0001041934
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29374
		FILM NUMBER:		06850475

	BUSINESS ADDRESS:	
		STREET 1:		PARC D'ACTIVITES LA POUDRETTE LAMARTINE
		STREET 2:		4 RUE DU DAUPHINE
		CITY:			69120 VAULX EN VELIN
		STATE:			I0

	MAIL ADDRESS:	
		STREET 1:		PARC D'ACTIVITES LA POUDRETTE LAMARTINE
		STREET 2:		4 RUE DU DAUPHINE
		CITY:			69120 VAULX EN VELIN
		STATE:			I0
		ZIP:			69120
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>edgar6k18may2006.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD><TITLE>EDAP TMS S.A. REPORTS 2006 FIRST QUARTER RESULTS</TITLE>

<META content="MSHTML 6.00.2800.1400" name=GENERATOR></HEAD>
<BODY text=#000000 bgColor=#ffffff>
<P align=center>SECURITIES AND EXCHANGE COMMISSION <BR>Washington, D.C. 20549
</P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>FORM 6
K </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>REPORT
OF FOREIGN PRIVATE ISSUER </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
size=2>PURSUANT TO RULE 13a-16 OR 15d-16 <BR>UNDER THE SECURITIES EXCHANGE ACT
OF 1934 </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>EDAP
TMS S.A. Files </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Press
release on EDAP TMS Reporting <BR>its 2006 First Quarter Results <BR>released on
May 10, 2006 </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>EDAP
TMS S.A. <BR>Parc Activite La Poudrette Lamartine <BR>4/6 Rue du Dauphine
<BR>69120 Vaulx-en-Velin - France </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Indicate by check
mark whether the registrant files or will file annual reports under cover Form
20-F or Form 40-F. </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Form
20-F .........X........ Form 40-F................. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Indicate by check
mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b) under the Securities Exchange Act of 1934. </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Yes
............. No .....X..... </FONT></P>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
size=2>SIGNATURES </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Date : <BR>EDAP TMS
S.A. </FONT></P>
<P>&nbsp;</P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>S/HUGUES DE BANTEL
<BR>HUGUES DE BANTEL <BR>CHIEF EXECUTIVE OFFICER </FONT></P>
<P>&nbsp;</P>
<DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
size=2><STRONG>EDAP TMS S.A. REPORTS 2006 FIRST QUARTER
RESULTS</STRONG></FONT></DIV>
<P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
size=2><EM>Revenue Per Procedure Business Up 86% from Growing Demand for
Therapy</EM><BR><EM>Dedicated Marketing Campaigns, FDA Trial Moving
Forward</EM></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><EM>&nbsp;
</EM></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Lyon,
France, May 10, 2006 -- EDAP TMS S.A. (Nasdaq: EDAP)</STRONG>, today reported
financial results for the first quarter ended March 31, 2006. For the first
quarter of 2006, the Company reported total revenues of EUR 5.2 million compared
to EUR 5.1 million in the same quarter of 2005. First quarter revenue included
the sale of ten lithotripsy and two Ablatherm-HIFU units and a dramatic increase
in RPP "revenue-per-procedure" business. This is in line with the Company
anticipation of future growth derived primarily from the HIFU division and its
per procedure sales activity while unit sales will remain steady. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Financial
Highlights:</FONT></P>
<UL>
  <LI><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The Company's
  gross margin as a percentage of total revenue increased from 40 percent to 44
  percent due to significant margins on two Ablatherm units sold and increasing
  contributions from higher margin per procedure and services revenues. </FONT>
  <LI><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The Company's
  operating expenses increased 16 percent from the prior year, in line with the
  company's strategy to focus on marketing and education, to enhance its
  Ablatherm-HIFU positioning and to strengthen its clinical leadership.</FONT>
  <LI><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Net loss for the
  first quarter was EUR 623,000 compared to a loss of EUR 140,000 for the first
  quarter of 2005 due to the increased spending on marketing and clinical and
  education for future growth and increased market penetration.</FONT>
  <LI><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The net loss
  includes EUR 317,000 attributable to negative changes in currency and tax in
  the comparable periods. </FONT>
  <LI><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>As of March 31,
  2006, the Company had EUR 7.6 million in cash compared to EUR 8.3 million at
  December 2005 end. Uses of cash included EUR 0.7 million for operating
  activities. </FONT></LI></UL>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Hugues de Bantel,
CEO of EDAP TMS, commented: "Our first quarter results give clear indications of
the HIFU RPP growth opportunity we are successfully addressing with the launch
of our strong and focused marketing and education programs. Expenses increased
from these efforts as has market response demonstrated by a 20 percent increase
in treatments and dramatic growth in the RPP business. We will address a HIFU
treatment acceleration plan over the course of 2006 to increase this growth
further." </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif"
size=2><STRONG></STRONG></FONT>&nbsp;</P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>EDAP:
ABLATHERM-HIFU GROWTH DRIVEN BY RPP BUSINESS</STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>For the first
quarter of 2006, the HIFU division recorded a 11 percent growth in its revenue
driven by a 86 percent increase in its RPP business. RPP as a percent of HIFU
revenues increased from 22 percent in 2005 to 35 percent in 2006. While the
Company sold the same number of Ablatherm units, the revenue from equipment
sales declined due to the sale of an Ablatherm unit that was converted from a
lease to an equipment sale at a reduced price. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Expenses increased
25 percent from EUR 871,000 in first quarter 2005 to EUR 1.1 million in first
quarter 2006, in line with the Company's strategy to further strengthen its
clinical credibility and expand its marketing and sales reach. Operating income
remained positive. Gross margin as a percentage of revenue strengthened from 50
percent up to 56 percent on a quarterly comparison, thanks to significant
margins on the two equipment sold and to an increasing contribution from margins
on RPP and service revenues. </FONT></P>
<TABLE cellSpacing=0 cellPadding=3>

  <TR>
    <TD vAlign=top colSpan=4>
      <DIV align=center>
      <P align=left><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>EDAP - HIFU Division:
  </EM></STRONG></FONT></P></DIV></TD></TR>
  <TR>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD>
    <TD vAlign=top width=143>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD>
    <TD vAlign=top width=162>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Year</STRONG></FONT></P></TD>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Revenues </STRONG></FONT></P></TD>
    <TD vAlign=top width=143>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Gross Margin % </STRONG></FONT></P></TD>
    <TD vAlign=top width=162>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Operating Income (Loss) </STRONG></FONT></P></TD></TR>
  <TR>
    <TD>
      <HR noShade SIZE=1>
    </TD>
    <TD width=153>
      <HR noShade SIZE=1>
    </TD>
    <TD width=143>
      <HR noShade SIZE=1>
    </TD>
    <TD width=162>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Q1 2005 </FONT></P></TD>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>1,761</FONT></P></TD>
    <TD vAlign=top width=143>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>50%</FONT></P></TD>
    <TD vAlign=top width=162>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>4</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Q1 2006</FONT></P></TD>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>1,949</FONT></P></TD>
    <TD vAlign=top width=143>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>56%</FONT></P></TD>
    <TD vAlign=top width=162>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>1</FONT></P></TD></TR></TABLE>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Total
Ablatherm-HIFU treatments in the quarter were approximately 720 driven by RPP
activity as compared to approximately 600 in the fourth quarter 2005. In total,
106 user sites were trained on Ablatherm-HIFU as of March 31, 2006. The increase
was clearly correlated to countries where the therapy is being reimbursed, and
the company continues to lead efforts aimed at securing additional
reimbursements. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The company is
seeing increasing interest following the EAU meeting held in Paris during April.
The company's clearly confirmed clinical success coupled with the attractive
side effect and recovery benefits to the patient have positioned Ablatherm-HIFU
as an emerging treatment of choice, offering both patients and doctors
significant benefits in the treatment of localized prostate cancer. Global
consensus from the urology community is that Ablatherm-HIFU specifically is an
important therapeutic offering for non-surgical patients diagnosed with prostate
cancer for the first time and an emerging gold standard in the treatment of
locally recurrent prostate cancer following radiation failure. This was
confirmed in April 2006 by a clinical article appearing in the peer reviewed
European Association of Urology Update from Prs. H. Azzouz and J. de la Rosette,
Academic Medical Center, Amsterdam, The Netherlands, comparing HIFU options in
prostate cancer to traditional therapies. The article also highlighted the
technical and clinical advances of Ablatherm-HIFU as compared to less advanced
HIFU devices also marketed.&nbsp; </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Building on its
recent success at the EAU Congress in Paris, the Company is aggressively
marketing Ablatherm-HIFU to both doctors and patients to increase awareness of
the efficacy, low side effects, high quality of life and rapid recovery
available to patients who pursue Ablatherm-HIFU for both first indication and
locally recurrent prostate cancer treatment. The Company's successful launch in
the U.K. as well as strong growth in markets providing reimbursement helped
increase awareness and is driving greater demand from the medical
community.&nbsp;&nbsp; </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>In addressing the
growing interest for Ablatherm-HIFU, the Company anticipates placing
additional&nbsp; Ablatherm-HIFU devices on a fixed RPP basis at major urology
centers in Europe. This is the first part of the Company strategy to reach out
to a maximum of patients by making the technology available to a greater number
of hospitals and furthering use at high-traffic centers. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>In May the company
received confirmation that the first patient has been treated under the US
clinical trials program with partner HealthTronics. EDAP will report on these
events in greater detail at a future date. </FONT></P>
<P>&nbsp;</P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>TMS: STEADY
SALES, CASH FLOWS</STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The UDS division
net sales for the quarter remained stable at EUR 3.9 million. The company sold
ten lithotripsy units versus nine for the previous year quarter. The level
revenues related primarily to competitive pricing pressures as well as unit mix
between mid-range and high-range models. Service fees were up from the larger
installation base built over the past years and as more units entered servicing
phases of their lifecycle. As of today, TMS has a strong backlog of seven
lithotripters. </FONT></P>
<TABLE cellSpacing=0 cellPadding=3>

  <TR>
    <TD vAlign=top colSpan=4>
      <DIV align=center>
      <P align=left><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>TMS - UDS Division :
  </EM></STRONG></FONT></P></DIV></TD></TR>
  <TR>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD>
    <TD vAlign=top width=153>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD>
    <TD vAlign=top width=143>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD>
    <TD vAlign=top width=162>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><EM>&nbsp; </EM></STRONG></FONT></P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Year</STRONG></FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Revenues </STRONG></FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Gross Margin</STRONG> % </FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Operating Income (Loss) <BR></STRONG></FONT></P></TD></TR>
  <TR>
    <TD>
      <HR noShade SIZE=1>
    </TD>
    <TD>
      <HR noShade SIZE=1>
    </TD>
    <TD>
      <HR noShade SIZE=1>
    </TD>
    <TD>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Q1 2005</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>3,920</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>30%</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>34</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Q1 2006</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>3,863</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>31%</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(66)</FONT></P></TD></TR></TABLE>
<P>&nbsp;</P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=1><STRONG><FONT
size=2>CORPORATE OUTLOOK </FONT></STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Hugues de Bantel,
CEO of EDAP TMS, commented: "We are pleased to report the strong growth in our
RPP business, which represents the key growth engine for Ablatherm-HIFU as it
allows rapid access to technology which is becoming a new standard of care for
localized prostate cancer addressing non-surgical patients and radiation
failures. We intend to continue advancing our clinical credibility through
clear, detailed clinical publication of the results obtained by our users and
accurately marketing these outcomes to both the medical community and the
patients seeking a less invasive therapeutic option for localized prostate
cancer. Ablatherm-HIFU stands alone in the quantity and quality of our clinical
data confirming the strongest outcomes and most attractive opportunities to
offer the patient a high quality of life after treatment by pursuing
Ablatherm-HIFU therapy.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>"To make treatments
grow faster, we will also be using our resources to advance the placement of RPP
units at fixed centers with a minimum required utilization level as a means of
quickly addressing and growing the market demand for Ablatherm-HIFU technology.
This model allows us to ensure Ablatherm-HIFU is available to patients seeking
treatment as well as build grass-roots demand for this therapy as patients learn
about its significant advantages available as compared to existing offerings.
This program will secure a larger base of long-term steady and recurring
revenues through the investment of our capital resources in the near term. We
intend to aggressively expand this program and others to meet the growing
interest in offering Ablatherm-HIFU. Since the EAU meeting in Paris, we continue
to receive ever more inquiries about Ablatherm from prospects at the Congress
and the recent German Symposium hosted by EDAP in Frankfurt. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>"We also anticipate
increasing returns from our efforts in marketing, which include media, online,
workshop and patient education components. These efforts are clearly already
driving greater awareness of Ablatherm-HIFU as a therapeutic option. Patients
are also creating more demand as traffic on our HIFU-Planet Web site continues
to grow more than seven-fold in April alone. We believe many of these rewards
will be recognized in the coming quarters through increased demand for
Ablatherm-HIFU treatment and the establishment of Ablatherm-HIFU as a mainstream
therapy choice required by the patient of his care provider."</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Conference
Call and Webcast</STRONG><BR>The company will host a conference call to discuss
the results and answer questions from investors on Thursday, May 11, 2006, at
12:00 noon Eastern Time, 6:00 p.m. Paris Time. Investors may join the call live
by dialing 866-200-5830 with passcode 558429# within the United States or
+1-732-694-1588 from international locations and requesting the EDAP TMS 2006
First Quarter Conference Call. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Investors unable to
join the call can access a playback of the conference call. To access the
replay,<BR>please dial 866-206-0173 or +1-732-694-1571 and passcode 173563#
beginning two hours after the end of the call until Saturday, May 18,
2005.<BR><STRONG>Participation in Congresses</STRONG><BR>EDAP will present at
the American Urology Association (AUA) conference to be held in Atlanta,
Georgia, May 20-23, 2006 (Booth #2445, Hall B3). EDAP will also be participating
in the next British Association of Urological Surgeons (BAUS) conference to be
held in Manchester, United Kingdom, June 27-29, 2006. Investors and others who
will be attending the AUA meeting are invited to contact Investor Relations if
they would like to schedule an appointment during the conference. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Stock
Compensation charge related to Performance Stock Plan</STRONG> <BR>The Company
adopted FASB Statement 123(R) "Share-based payment" as of January 1, 2006.
Statement 123(R) requires all share-based payments to employees of the Company,
including grants of employee stock options, to be recognized in the income
statement based on their fair values. As permitted by this new statement, the
Company adopted the "modified prospective" method, in which compensation cost is
recognized beginning January 1, 2006 based on the requirements of Statement
123(R) for all share-based payments granted after January 1, 2006 and based on
the requirements of Statement 123 for all awards granted to employees prior to
January 1, 2006 that remain unvested on the effective date. On February 17,
2005, the shareholders of EDAP TMS authorized the Board of Directors to grant up
to 625,000 free shares to be issued to certain employees of the Company, subject
to compliance with conditions and performance criteria fixed by the Board of
Directors of the Company. On January 6, 2006, in accordance with the Performance
Stock Plan authorized by the shareholders, the Board of Directors granted
564,100 rights to subscribe to new shares based on performance criteria to be
achieved in 2006 and 2007. This plan is to be accounted for in accordance with
FASB 123(R). The Fair Value of the award was determined at the grant date.
Expense will be recognized only for the number of awards earned through
attainment of the performance targets. As of March 31, 2006, the Company did not
recognize any compensation expense related to the above Performance Stock Plan,
as no objective for year 2006 has been yet achieved. Recognition of compensation
expense will begin when it is the company's best estimate that the award will be
earned.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>About EDAP
TMS S.A.</STRONG><BR>EDAP TMS S.A. develops and markets Ablatherm, the most
advanced and clinically proven choice for High Intensity Focused Ultrasound
(HIFU) treatment of localized prostate cancer. HIFU treatment is shown to be a
minimally invasive and effective treatment option with a low occurrence of side
effects. Ablatherm-HIFU is generally recommended for patients with localized
prostate cancer (stages T1-T2) who are not candidates for surgery or who prefer
an alternative option or patients who failed radiotherapy treatment. The company
is also developing this technology for the treatment of certain other types of
tumors. EDAP TMS S.A. also produces and commercializes medical equipment for
treatment of urinary tract stones using Extra-corporeal Shockwave Lithotripsy
(ESWL). </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>For more
information on the Company, contact Halliburton Investor Relations at (972)
458-8000, the Corporate Investor Relations Dept at +33 (0)4 78 26 40 46 or see
the Company's </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><EM>This press
release contains, in addition to historical information, forward-looking
statements that involve risks and uncertainties. These include statements
regarding the Company's growth and expansion plans. Such statements are based on
management's current expectations and are subject to a number of uncertainties
and risks that could cause actual results to differ materially from those
described in the forward-looking statements. Factors that may cause such a
difference include, but are not limited to, those described in the Company's
filings with the Securities and Exchange Commission. Ablatherm-HIFU treatment is
in clinical trials but not yet FDA approved or marketed in the United
States.</EM> </FONT></P>
<P> </P>
<TABLE cellSpacing=0 cellPadding=3 width=722 border=0>

  <TR>
    <TD colSpan=8>
      <DIV align=center>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=2><STRONG>EDAP TMS S.A. <BR>CONDENSED CONSOLIDATED STATEMENTS OF
      OPERATIONS (UNAUDITED) <BR>(Amounts in thousands of Euro's and U.S.
      Dollars, except per share data) </STRONG></FONT></P>
      <P><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><BR><BR></STRONG></FONT></P></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD colSpan=3>
      <DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      color=#1 size=1><B>Three Months Ended : </B></FONT>
      <HR noShade SIZE=1>
      </DIV></TD>
    <TD width=4>&nbsp;</TD>
    <TD colSpan=3>
      <DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      color=#1 size=1><B>Three Months Ended : </B></FONT>
      <HR noShade SIZE=1>
      </DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD vAlign=top width=106>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>March&nbsp; 31,
      </STRONG><BR><STRONG>2006</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Euros</STRONG></FONT></P></TD>
    <TD vAlign=top width=3>
      <DIV align=right></DIV></TD>
    <TD vAlign=top width=106>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>March 31,&nbsp;
      </STRONG><BR><STRONG>2005</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>Euros</STRONG></FONT></P></TD>
    <TD vAlign=top width=4>
      <DIV align=right></DIV></TD>
    <TD vAlign=top width=106>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>March 31,&nbsp;
      </STRONG><BR><STRONG>2006</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>$US</STRONG></FONT></P></TD>
    <TD vAlign=top width=4>
      <DIV align=right></DIV></TD>
    <TD vAlign=top width=106>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>March&nbsp;
      31,</STRONG><BR><STRONG>2005</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif" size=1><STRONG>$US</STRONG>
      </FONT></P></TD></TR>
  <TR>
    <TD height=1>&nbsp;</TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD height=1>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD height=1>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD height=1>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Net sales of medical equipment</FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,314</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,699</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,795</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>3,530</FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Net sales of spare parts, supplies and Services </FONT></TD>
    <TD width=106>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,870</FONT></P></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,377</FONT></P></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>3,465</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>3,109</FONT></P></TD></TR>
  <TR>
    <TD height=1>&nbsp;</TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD height=1>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD height=1>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD height=1>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>TOTAL NET SALES</STRONG></FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>5,184</STRONG></FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>5,076</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>6,260</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>6,639</STRONG></FONT></P></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Other revenues</FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>15</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>50</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>18</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>65</FONT></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>TOTAL REVENUES</STRONG></FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>5,199</STRONG></FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>5,126</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>6,278</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>6,704</STRONG></FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Cost of sales</FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(2,913)</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(3,062)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(3,517)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(4,004)</FONT></DIV></TD></TR>
  <TR>
    <TD width=239 height=20>&nbsp;</TD>
    <TD width=106 height=20>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <HR align=right noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>GROSS PROFIT</STRONG></FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>2,286</STRONG></FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>2,064</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>2,761</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>2,700</STRONG></FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Research &amp; development expenses</FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(595)</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(450)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(718)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(589)</FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>S, G &amp; A expenses </FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(2,175)</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(1,937)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(2,626)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(2,533)</FONT></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Total operating expenses</FONT></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(2,770)</FONT></DIV></TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(2,387)</FONT></DIV></TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(3,344)</FONT></DIV></TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(3,122)</FONT></DIV></TD></TR>
  <TR>
    <TD width=239 height=20>&nbsp;</TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD>
    <TD width=3 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD>
    <TD width=4 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD>
    <TD width=4 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>OPERATING PROFIT</STRONG></FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(484)</STRONG></FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(323)</STRONG></FONT></P></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(583)</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(422)</STRONG></FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Interest (expense) income, net </FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>14</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>7</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>17</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>9</FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Currency exchange gains (loss), net</FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(73)</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(73)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(89)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>220</FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Other income (loss), net </FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(3)</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>9</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(4)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>12</FONT></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width=239 height=20>&nbsp;</TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD>
    <TD width=3 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD>
    <TD width=4 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD>
    <TD width=4 height=20>
      <DIV align=right></DIV></TD>
    <TD width=106 height=20>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>INCOME (LOSS) BEFORE TAXES AND MINORITY
      INTEREST</STRONG></FONT></TD>
    <TD width=106>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(546)</STRONG></FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(139)</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(659)</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(181)</STRONG></FONT></P></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Income tax (expense) credit</FONT></TD>
    <TD width=106>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(77)</FONT></P></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(1)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(93)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(1)</FONT></DIV></TD></TR>
  <TR>
    <TD width=239 height=1>&nbsp; </TD>
    <TD width=106 height=1>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3 height=1>
      <DIV align=right></DIV></TD>
    <TD width=106 height=1>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4 height=1>
      <DIV align=right></DIV></TD>
    <TD width=106 height=1>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4 height=1>
      <DIV align=right></DIV></TD>
    <TD width=106 height=1>
      <HR align=right noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><B><FONT color=#1>NET INCOME (LOSS) </FONT></B></FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(623)</STRONG></FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(140)</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(752)</STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(182)</STRONG></FONT></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD width=106>
      <HR align=right noShade SIZE=3>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=3>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=3>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <HR align=right noShade SIZE=3>
    </TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Earning per share - Basic </FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.08)</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.02)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.10)</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.02)</FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Average number of shares used in computation of EPS </FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>7,823,331</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>7,781,731</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>7,781,731</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>7,781,731</FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Earning per share - Diluted </FONT></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.08)</FONT></DIV></TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.02)</FONT></DIV></TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.10)</FONT></DIV></TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(0.02)</FONT></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Average number of shares used in computation of EPS </FONT></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>8,608,255</FONT></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=106>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>8,344,368</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>8,608,255</FONT></DIV></TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>8,344,368</FONT></DIV></TD></TR></TABLE>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif"
size=1><STRONG>NOTE:</STRONG>&nbsp; Translated for convenience of the reader to
U.S. dollars at the 2006 average three months noon buying rate of 1 Euro =
1.2074 USD, and 2005 average three months noon buying rate of 1 Euro = 1.3079
USD.</FONT></P>
<P>&nbsp;</P>
<TABLE cellSpacing=0 cellPadding=3 width=750 border=0>

  <TR>
    <TD colSpan=8>
      <DIV align=center>
      <P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>EDAP
      TMS S.A.<BR>CONSOLIDATED BALANCE SHEETS HIGHLIGHTS (UNAUDITED)<BR>(Amounts
      in thousands of Euro's and U.S. Dollars) </STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><BR><BR></STRONG></FONT></P></DIV></TD></TR>
  <TR>
    <TD width=293>&nbsp;</TD>
    <TD vAlign=top width=100>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>March 31,
      </STRONG><BR><STRONG>2006</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif" size=1><STRONG>Euros</STRONG>
      </FONT></P>
      <HR align=center noShade SIZE=1>
    </TD>
    <TD width=2>
      <DIV align=center></DIV></TD>
    <TD vAlign=top width=100>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>December 31,
      </STRONG><BR><STRONG>2005</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif" size=1><STRONG>Euros</STRONG>
      </FONT></P>
      <HR align=center noShade SIZE=1>
    </TD>
    <TD width=2>
      <DIV align=center></DIV></TD>
    <TD vAlign=top width=100>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>March 31,
      </STRONG><BR><STRONG>2006</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif" size=1><STRONG>$US</STRONG>
      </FONT></P>
      <HR align=center noShade SIZE=1>
    </TD>
    <TD width=2>
      <DIV align=center></DIV></TD>
    <TD vAlign=top width=100>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>December 31,
      </STRONG><BR><STRONG>2005</STRONG></FONT><BR><FONT
      face="Verdana, Arial, Helvetica, sans-serif" size=1><STRONG>$US</STRONG>
      </FONT></P>
      <HR align=center noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD><FONT face="Verdana, Arial, Helvetica, sans-serif" size=1>Cash, cash
      equivalents and short term investments </FONT></TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>7,591</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>8,317</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>9,214</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>9,849</FONT></DIV></TD></TR>
  <TR>
    <TD><FONT face="Verdana, Arial, Helvetica, sans-serif" size=1>Total
      current assets</FONT></TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>21,846</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>22,034</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>26,519</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>26,092</FONT></DIV></TD></TR>
  <TR>
    <TD><FONT face="Verdana, Arial, Helvetica, sans-serif" size=1>Total
      current liabilities</FONT></TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>9,675</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>9,557</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>11,744</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>11,318</FONT></DIV></TD></TR>
  <TR>
    <TD><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Shareholders' Equity </FONT></TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>16,871</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>17,372</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>20,480</FONT></DIV></TD>
    <TD>&nbsp; </TD>
    <TD width=100>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>20,572</FONT></DIV></TD></TR></TABLE>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif"
size=1><STRONG>NOTE:</STRONG>&nbsp; Translated for convenience of the reader to
U.S. dollars at the noon buying rate of 1 Euro = 1.2139 USD, on March 31, 2006
and at the noon buying rate of 1 Euro = 1.1842 USD, on December 31,
2005.<BR></FONT></P>
<P>&nbsp;</P>
<TABLE cellSpacing=0 cellPadding=3 width=700 border=0>

  <TR>
    <TD colSpan=11>
      <DIV align=center>
      <P align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT size=2>EDAP TMS S.A.<BR>CONDENSED STATEMENTS OF
      OPERATIONS BY DIVISION<BR>THREE MONTHS ENDED MARCH 31,
      2006</FONT></STRONG><FONT size=2><BR><STRONG>(Amounts in thousands of
      Euro's)</STRONG></FONT><STRONG><BR><BR></STRONG></FONT></P></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD vAlign=top width=70>
      <DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT color=#1>EDAP S.A.<BR>HIFU
      Division</FONT></STRONG></FONT></DIV></TD>
    <TD vAlign=top width=3>&nbsp; </TD>
    <TD vAlign=top width=70>
      <DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT color=#1>TMS S.A.<BR>UDS
      Division</FONT></STRONG></FONT></DIV></TD>
    <TD vAlign=top width=3>&nbsp; </TD>
    <TD vAlign=top width=70>
      <DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT color=#1>EDAP
    TMS<BR>HQ</FONT></STRONG></FONT></DIV></TD>
    <TD vAlign=top width=4>&nbsp; </TD>
    <TD vAlign=top width=70>
      <DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT color=#1>Consolidation
      Impact</FONT></STRONG></FONT></DIV></TD>
    <TD vAlign=top width=4>&nbsp; </TD>
    <TD vAlign=top width=70>
      <DIV align=center><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT color=#1>Total <BR>After
      Consolidation</FONT></STRONG></FONT></DIV></TD>
    <TD vAlign=top width=4>
      <DIV align=center></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Net sales of medical devices</FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>702</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>1,767</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      color=#1 size=1>-</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(155)</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,314</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Net sales of spare parts, supplies &amp; services</FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>1,240</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,088</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      color=#1 size=1>-</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(458)</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>2,870</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD>
      <P align=left><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>TOTAL NET SALES </STRONG></FONT></P></TD>
    <TD>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>1,942</STRONG></FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>3,855</STRONG></FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(613)</STRONG></FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>5,184</STRONG></FONT></P></TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD>
      <DIV align=right></DIV></TD>
    <TD>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Other revenues</FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>7</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>8</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>- </FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>- </FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>15</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><B><FONT color=#1>TOTAL REVENUES</FONT></B></FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>1,949</STRONG></FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>3,863</STRONG></FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT color=#1>-</FONT></STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(613)</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>5,199</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><B><FONT color=#1>GROSS PROFIT</FONT></B></FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>1,094</STRONG></FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>56%</STRONG></FONT></P></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>1,192</STRONG></FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>31%</STRONG></FONT></P></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG><FONT color=#1>-</FONT></STRONG></FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>-</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>2,286</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right>
      <P><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>44%</STRONG></FONT></P></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#1
      size=1>Research &amp; Development</FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(353)</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(242)</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      color=#1 size=1>-</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      color=#1 size=1>-</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(595)</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>Total SG&amp;A plus depreciation</FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(740)</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(1,016)</FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(419)</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      color=#1 size=1>-</FONT></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1>(2,175)</FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239>&nbsp;</TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <HR align=right noShade SIZE=1>
    </TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR>
  <TR>
    <TD width=239><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><B><FONT color=#1>OPERATING PROFIT (LOSS)</FONT></B></FONT></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>1</STRONG></FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(66)</STRONG></FONT></P></DIV></TD>
    <TD width=3>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(419)</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>-</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD>
    <TD width=70>
      <DIV align=right>
      <P align=right><FONT face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>&nbsp;</STRONG></FONT><FONT
      face="Verdana, Arial, Helvetica, sans-serif"
      size=1><STRONG>(484)</STRONG></FONT></P></DIV></TD>
    <TD width=4>
      <DIV align=right></DIV></TD></TR></TABLE></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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