Management report ......................................... 1 Consolidated financial statements .......................................................... 4 Notes to the consolidated financial statements .......................................... 9 Statut

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(1)Consolidated financial statements .......................................................... 4 Notes to the consolidated financial statements .......................................... 9 Statutory auditors’ report ..............................20. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. Management report ......................................... 1.

(2) Disclaimer. Design and production:. 40, rue de la Folie-Régnault - 75011 Paris - France Phone: 33 (0)1 42 12 92 12 www.aristophane.com Production: ABC arbitrage group, Communications Department. This document is printed on environmentally-friendly, FSC-certified paper.. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. The interim report and its constituent parts have been translated from the original French versions. For the purposes of interpretation, the French originals will take precedence over the English translation..

(3) MANAGEMENT REPORT FIRST HALF 2008. Key consolidated figures are presented below:. Advisory revenues. June 30, 2008 IFRS. June 30, 2007 IFRS. Dec. 31, 2007 IFRS. -. -. -. Proprietary trading revenues (1). 27.7. 25.6. 48.2. Net revenues. 27.7. 25.6. 48.2. Payroll costs. (6.1). (7.4). (13.6). Occupancy costs. (0.3). (0.3). (0.6). Other expenses. (1.1). (1.0). (2.1). Income before tax. 20.2. 16.8. 31.8. Net income. 12.1. 10.3. 20.7. (1): Net gains on derivative financial instruments measured at fair value through profit or loss (€27.9m) less provision expense (€0.2m).. 1. Operating performance First-half 2008 consolidated net income totalled €12.1 million, an increase of 17% over the year-earlier period. Net revenues grew to nearly €27.7 million, lifting gross return on equity – corresponding to the ratio of net revenues to average equity – to nearly 40% for the first-half alone. In first-half 2008, the markets continued to focus on the financial crisis that hit during summer 2007. With the extent of subprime losses being constantly revised upward, banks have booked major asset write-downs and are now taking a much more selective approach to new lending. The Group has never had any exposure to the subprime market, either directly or indirectly through derivatives. In line with our strategy in this type of environment, we have focused on managing risk, keeping costs strictly under control and pursuing the diversification of our operations in order to achieve our long-term goals.. ABC arbitrage // Interim report 2008. 1. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. In EUR million.

(4) Management report - First half 2008. The markets remained turbulent in the first half of 2008, despite a calmer period in April and early May. While the Group benefited from this volatility, the generally strong returns delivered by our strategies were only partly attributable to the current climate. We continued to expand the business, with an average of close to 1,200 arbitrage positions in the portfolio at all times, carried out on some forty financial markets worldwide, an increase of nearly 8% over 2007.. During the period, external investors subscribed a total of €2.2 million in the fund, of which €1 million on February 1 and €1.2 million on July 1, 2008. On the whole, market uncertainties have had a noticeable impact on the flow of new money throughout the industry, with investors taking longer to make a decision and investing smaller amounts.. 2. Dividend distribution The Annual Shareholders’ Meeting of May 28, 2008 approved a final net dividend of €0.26 per share for 2007. The total net dividend for 2007 therefore came to €0.43 per share. After taking into account the shares issued upon exercise of stock options and upon reinvestment of discretionary profit-sharing bonuses and dividends, the share capital currently amounts to €603,394.64, represented by 37,712,154 shares. The free float stands at just over 46%. Confident in the Group’s ability to continue to grow the business, the Board of Directors has decided to pay an interim 2008 dividend of €0.20 per share. Shareholders will be given the option of reinvesting all or part of their interim dividend in ABC arbitrage shares at a price of €5.50 per share. The payment date will be announced at a later stage.. ABC arbitrage // Interim report 2008. 2. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. Merger arbitrage, however, was affected by the difficulty for buyers to raise funding and the significant decline in M&A activity, particularly LBOs, many of which had to be abandoned or re-priced. Market conditions were better at the end of the period and M&A activity picked up, but mostly involved small and mid-cap companies. Through effective risk management, the Group achieved good results with this type of strategy in first-half 2008, via “ABCA Arbitrage Opportunities Fund Plc”, a hedge fund governed by Irish law..

(5) Management report - First half 2008. 3. Outlook The markets remain uncertain, so volatility is still relatively high and issuance activity is back at 2004 levels. Thanks to the diversification of our arbitrage strategies and our continued efforts to expand our presence in financial markets worldwide, the momentum achieved in first-half 2008 has continued through July and August. Backed by a history of successful performances, “ABCA Arbitrage Opportunities Fund Plc” received a €7 million subscription on September 1, bringing its assets under management to nearly €37 million. The Group’s considerable earnings power enables us to finance organic growth while maintaining our dividend payout policy. Our regular yet diversified sources of revenue provide us with a solid foundation for future success.. ABC arbitrage // Interim report 2008. 3. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. The Board of Directors September 4, 2008.

(6) INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2008. In EUR. Note. Intangible assets Property and equipment Current financial assets. 2.2. Deferred tax assets Total non-current assets. June 30, 2008 IFRS. Dec. 31, 2007 IFRS. 30,216. 36,583. 576,575. 478,349. 329,073. 329,481. 2,579,968. 3,187,966. 3,515,832. 4,032,379. Financial assets at fair value through profit or loss. 2.4. 393,766,289. 581,570,180. Other accounts receivable. 2.5. 6,860,356. 5,742,122. 130,220. 191,652. Total current assets. 400,756,865. 587,503,954. TOTAL ASSETS. 404,272,697. 591,536,333. Cash and cash equivalents. ABC arbitrage // Interim report 2008. 4. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. BALANCE SHEET - ASSETS.

(7) Interim consolidated financial statements at June 30, 2008. In EUR. Note. Paid-up share capital Additional paid-in capital Retained earnings Interim dividend Net income Total equity attributable to equity holders. 2.3. Minority interests Total equity. June 30, 2008 IFRS. Dec. 31, 2007 IFRS. 602,688. 580,223. 42,108,633. 42,072,409. 9,677,572. 6,612,244. -. (6,007,917). 12,087,772. 20,729,129. 64,476,664. 63,986,087. (170). (157). 64,476,494. 63,985,931. Provisions for contingencies and charges. 182,933. 182,933. Non-current financial liabilities. 181,231. 181,231. 364,164. 364,164. Non-current liabilities Financial liabilities at fair value through profit or loss. 2.4. 319,688,094. 512,405,218. Other liabilities. 2.5. 16,721,976. 6,937,328. 2,972,222. 7,793,805. 49,746. 49,888. Current liabilities. 339,432,038. 527,186,239. TOTAL EQUITY AND LIABILITIES. 404,272,697. 591,536,333. Taxes payable Short-term debt. ABC arbitrage // Interim report 2008. 5. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. BALANCE SHEET - LIABILITIES.

(8) Interim consolidated financial statements at June 30, 2008. In EUR. Note. June 30, 2008 IFRS. June 30, 2007 IFRS. Dec. 31, 2007 IFRS. Net gain/loss on financial instruments at fair value through profit or loss. 3.1. 27,933,222. 25,755,971. 48,083,796. Other revenue. 3.2. 506,648. 486,528. 983,115. Administrative expenses. 3.3. (1,786,157). (1,722,548). (3,561,083). (254,581). (225,984). (512,396). (5,831,111). (7,246,621). (13,053,516). (138,842). (111,602). (223,473). 20,429,178. 16,935,744. 31,716,444. (266,983). (169,836). 128,090. 20,162,195. 16,765,908. 31,844,533. (7,466,438). (7,496,187). (13,729,725). (607,998). 1,055,534. 2,614,302. 12,087,759. 10,325,255. 20,729,110. 12,087,772. 10,325,269. 20,729,129. (13). (14). (19). Taxes and duties Payroll costs. 3.4. Depreciation and amortisation expense OPERATING INCOME Provision expense INCOME BEFORE TAX Current taxes Deferred taxes NET INCOME Attributable to equity holders Attributable to minority interests Number of ordinary shares. 3.5. 37,668,003. 33,915,588. 36,263,914. Earnings per ordinary share. 0.32. 0.30. 0.57. Diluted earnings per ordinary share. 0.32. 0.28. 0.54. ABC arbitrage // Interim report 2008. 6. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. STATEMENT OF INCOME.

(9) Interim consolidated financial statements at June 30, 2008. In EUR thousand At December 31, 2006 Issue of shares Elimination of treasury shares Share-based payments Appropriation of net income 2006* Net income for the period At June 30, 2007 In EUR thousand At December 31, 2007. Paid-up share capital. Equity instruments and related reserves. Elimination of treasury shares. Retained earnings and net income. Total equity. 531. 30,186. (78). 13,961. 44,600. 11. 1,670. -. -. 1,681. -. -. (98). 125. 27. -. -. -. 170. 170. -. -. -. (6,635). (6,635). -. -. -. 10,325. 10,325. 542. 31,856. (176). 17,945. 50,168. Paid-up Equity share instruments capital and related reserves. Elimination Retained Total equity of treasury earnings and attributable to shares net income equity holders. 580. 42,072. (1,132). 22,465. 63,986. Issue of shares Elimination of treasury shares Share-based payments Appropriation of net income 2007* Net income for the period. nm. 36. -. -. 37. -. -. 970. (35). 935. 22. -. -. (3,162). (3,140). -. -. -. (9,429). (9,429). -. -. -. 12,088. 12,088. At June 30, 2008. 603. 42,108. (162). 21,927. 64,477. nm: non material * Appropriation of 2006 and 2007 net income do not include the impact of dividend reinvestment in shares during July (see note 2.3.). * Investors’ equity in the ABCA Arbitrage Opportunities Fund has been reclassified from “Minority interests” to “Financial liabilities at fair value through profit or loss” at December 31, 2007 and June 30, 2008. The reclassification has no impact on net income or on equity attributable to equity holders.. ABC arbitrage // Interim report 2008. 7. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. STATEMENT OF CHANGES IN EQUITY BETWEEN DECEMBER 31, 2006 AND JUNE 30, 2008.

(10) Interim consolidated financial statements at June 30, 2008. In EUR thousand. June 30, 2008 IFRS. June 30, 2007 IFRS. Dec. 31, 2007 IFRS. 12,088. 10,325. 21,107. Net allocations to provisions. 267. 270. (128). Net allocations to depreciation and amortisation. 139. 112. 223. Change in deferred taxes. 608. (1,055). (2,614). Others. 956. 196. (486). Net cash provided by operations before changes in working capital. 14,058. 9,848. 18,102. Changes in working capital. (1,335). (4,565). (16,745). Net cash provided by operating activities. 12,722. 5,282. 1,357. Net cash used by investing activities. (230). (118). (393). 59. 1,682. 11,930. Dividends paid. (9,429). (6,635). (12,786). Share-based payments. (3,183). -. -. (12,553). (4,954). (857). (61). 210. 108. Cash and cash equivalents, beginning of period. 142. 34. 34. Cash and cash equivalents, end of period. 81. 244. 142. Net income. Net cash provided by capital transactions. Net cash used by financing activities Net change in cash and cash equivalents. The change in net cash and cash equivalents reflects the cash flows arising from the administrative management of Group companies. Cash flows relating to operating activities and their financing appear as changes in working capital.. ABC arbitrage // Interim report 2008. 8. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. CONSOLIDATED CASH FLOW STATEMENTS.

(11) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2008. 1. Accounting principles The summarized interim consolidated financial statements for the ABC arbitrage Group for the 6-months period ending June 30, 2008 were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. In particular, the interim financial statements were prepared and are presented in accordance with IAS 34 “Interim Financial Reporting”.. In preparing the interim consolidated financial statements, the Group applied the same accounting principles and methods as for its 2007 annual consolidated financial statements, which were drawn up in accordance with IFRS as adopted by the European Union and described in note 1 to the 2007 consolidated financial statements “Significant accounting principles” and note 2 “Accounting principles and policies”, except for investors’ equity in the ABCA Arbitrage Opportunities Fund Plc, which has been reclassified from “Minority interests” to “Financial liabilities at fair value through profit or loss” at December 31, 2007 and June 30, 2008 in accordance with IAS 32. The reclassification has no impact on net income or on equity attributable to equity holders. Preparation of the financial statements required ABC arbitrage Group to make estimates and assumptions which could have an impact on the amounts at which assets, liabilities, income and expenses are stated.The estimates, and the assumptions underlying them, have been made on the basis of past experience and of other factors considered to be reasonable in the circumstances.They thus serve as the basis for the judgement made in determining the carrying amounts of assets and liabilities which could not be determined directly from other sources. The definitive amounts that will be stated in ABC arbitrage Group’s future financial statements may be different from the amounts currently estimated. These estimates and assumptions are reviewed on a continuous basis. As the Group’s activities are neither seasonal nor cyclical in nature, its first half results were not affected by any seasonal or cyclical factors.. ABC arbitrage // Interim report 2008. 9. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. As permitted by IAS 34, this condensed set of financial statements includes only selected explanatory notes. These condensed consolidated financial statements for the six months ended June 30, 2008 must be read in conjunction with the Group’s 2007 consolidated financial statements. There are no new standards or interpretations that must be applied for the first time during 2008..

(12) Notes to the interim consolidated financial statements at June 30, 2008. 2. Notes to the balance sheet – 1st half 2008 2.1. Consolidation principles. Company. Countries. Proportion of capital held directly or indirectly. ABC arbitrage. France. Parent company. ABC arbitrage Asset Management. France. 100%. ABCA Global Fund. France. 100%. ABCA Arbitrage Opportunities Fund Plc. Ireland. 69%. ABCA Arbitrage Opportunities Fund Plc, an Irish non-harmonised (non-UCITS) investment fund, is managed by ABC arbitrage Asset Management. The fund’s investment strategy is designed to generate returns that are independent from market trends. It is marketed solely to qualified investors and the minimum investment is €1 million. At December 31, 2007, the fund had investment capital of €25 million – €18 million for ABC arbitrage and €7 million for the Group’s founder-shareholders, ABC participation & gestion and the Chauderlot family. The fund’s investment capital has since increased, by €1 million on January 31 and by a further €1.2 million on June 30, 2008.. 2.2. Other non-current financial assets At June 30, 2008, this item included €324 thousand in deposits and €5 thousand in employee advances.. ABC arbitrage // Interim report 2008. 10. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. All group subsidiaries are fully consolidated..

(13) Notes to the interim consolidated financial statements at June 30, 2008. 2.3. Consolidated equity Capital increase resulting from exercise of options During first half 2008, 17,336 new ordinary shares, ranking pari passu with existing shares, were issued to Stock options’ grantees. The total issue proceeds included €277 credited to paid-up capital and €36,224 credited to additional paid-in capital. Capital increase resulting from stock grants. Of the 2,319,939 shares granted, 933,186 were bought back on the market as part of the buy-back programme for a net amount of €3,161 thousand. The other shares granted were new shares paid up by capitalising reserves of €22 thousand. Share-based payment At its meeting of May 22, 2006, the Board of Directors decided to grant: - 8,845,000 stock options to 24 grantees; - 1,200,000 warrants to 3 grantees. For the two groups, the exercise price has been set at €4 and may be revised in light of future dividend payments, with a minimum of €2.514 (average share price on date of Board’s decision).The options and warrants will vest in 2011 based on different levels of performance. All of the options and warrants will vest if cumulative consolidated net income over the five-year vesting period (2006 to 2010 inclusive) amounts to at least €100 million.. ABC arbitrage // Interim report 2008. 11. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. At its meeting of May 22, 2006, the Board of Directors decided to make the following performance share grants: - 211,939 shares to 16 grantees; - 2,108,000 shares to 24 grantees. The Board of Directors formally noted at its meeting of May 5, 2008 that net return on consolidated equity and cumulative consolidated net income for 2006 and 2007 were above the plans’ performance targets..

(14) Notes to the interim consolidated financial statements at June 30, 2008. At its meeting of January 22, 2008, the Board of Directors also decided to grant: - 169,700 shares to 17 grantees; - 670,000 Stock options to 14 grantees. For the last group, the exercise price has been set at €6.5 and may be revised in light of future dividend payments, with a minimum of €4.45 (average share price on date of Board’s decision).. In the absence of any market for these instruments, mathematical valuation models are used. The key data and assumptions used to estimate the fair value of these equity instruments are the share price on the grant date, estimated future dividends which will not be received by the grantees, a discount rate equal to the risk-free rate plus a credit risk premium, the probability of the profitability and continued presence conditions being met and, in the case of stock options and warrants to subscribe for founder’s shares, historical volatility and liquidity in ABC arbitrage shares. The benefit is measured at the fair value of the shares at the grant date, which may not be revised subsequently following any changes in ABC arbitrage’s share price. The ultimate cost will depend on whether the performance conditions are met and how many of the beneficiaries are still employed by the Group on the vesting date. At June 30, 2008, the payroll expense amounts to €22 thousand. Capital increase resulting from reinvestment of dividends The Annual Shareholders’ Meeting of May 28, 2008 decided to pay a final dividend for 2007 in a net amount of €0.26 per share and to offer shareholders the option of receiving the final 2007 dividend either in cash or in new shares. At June 30, 2008, equity was reduced by €9,429 thousand to take account of the dividend payment.. ABC arbitrage // Interim report 2008. 12. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. The expense related to Stock option plans is recognised over the vesting period. This expense, the credit entry for which is posted to shareholders’ equity, is calculated on the basis of the overall plan value, determined at the grant date by the Board of Directors..

(15) Notes to the interim consolidated financial statements at June 30, 2008. At the end of the option period (July 25, 2008), taking account of reinvested dividends and treasury shares: - cash dividends were paid in the amount of €9,543 thousand; - 44,151 new ordinary shares, ranking pari passu with existing shares, were issued at a price of €5.50 per share. At July 25, 2008, the Parent Company’s share capital was represented by 37,712,154 ordinary shares with a par value of €0.016 each, all fully paid. Treasury stock During first half 2008, ABC arbitrage sold 141,230 of its own shares. At the same time, 140,209 shares were purchased under the market-making agreement with Fortis. At June 30, 2008, ABC arbitrage held 31,712 of its own shares, acquired at a total cost of €162 thousand.. 2.4. Financial assets/liabilities at fair value through profit or loss The Group holds financial instruments for trading purposes only. Details of securities to be received and delivered are provided in note 2.6. Risks. Cash reserves earn interest at variable rates indexed to benchmark market rates. “Fair value of financial assets and liabilities” is defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. The primary basis for determining the fair value of a financial instrument is the quoted price in an active market. If the instrument is not traded on an active market, fair value is determined using valuation techniques.. ABC arbitrage // Interim report 2008. 13. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. In accordance with IFRS, treasury stock is deducted from equity..

(16) Notes to the interim consolidated financial statements at June 30, 2008. In EUR thousand. Financial assets. Financial liabilities. Total. Securities to be received. 382,754. 144,502. Securities to be received (recorded off-balance sheet). 104,633. 98,864. Securities to be delivered. (17,521). (490,431). Securities to be delivered (recorded off-balance sheet). (90,244). (137,980). 14,145. 75,386. 89,531. -. (10,029). (10,029). Total at June 30, 2008. 393,766. (319,688). Total at December 31, 2007. 581,570. (512,405). Cash and cash equivalents Investors’ equity the consolidated fund*. 730,753. (736,176). 2.5. Other receivables and payables All receivables and payables are due within less than one year. In EUR thousand. Other receivables. Other payables. 340. (103). -. (9,429). 487. (346). Accrued taxes and payroll costs. 6,033. (6,844). Total at June 30, 2008. 6,860. (16,722). Total at December 31, 2007. 5,742. (6,937). Trade receivables/payables Balance of dividend payable Accrued income/expenses. ABC arbitrage // Interim report 2008. 14. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. * In accordance with IAS 32, investors’ equity in the ABCA Arbitrage Opportunities Fund has been reclassified from “Minority interests” to “Financial liabilities at fair value through profit or loss”. The reclassification has no impact on net income or on equity attributable to equity holders..

(17) Notes to the interim consolidated financial statements at June 30, 2008. 2.6. Risks The Group’s risks are the same as those described in the notes to the consolidated financial statements for the year ended December 31, 2007.. Type of arbitrage (in EUR thousand). Total long positions. Total short positions. Securities borrowed and not yet sold or symmetrical exposures. 147,849. (147,849). Arbitrages without market risks. 518,805. (558,386). 64,099. (29,942). 730,753. (736,176). Arbitrages with market risks Total for arbitrage transactions. The Group has never had any exposure to the subprime mortgage market nor to any directly correlated derivatives. The main risks in this type of market environment are: - a rise in the failure rate of arbitrages with market risks; - drying up of deals in the financial markets (mergers & acquisitions, issuance of various products); - delays in completing deals, which could lead to carrying costs in excess of the expected profits.. 2.7. Guarantees given Most financial instruments recorded under “Financial assets at fair value through profit or loss” have been given as collateral to the institutions that provide the financing.. ABC arbitrage // Interim report 2008. 15. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. The following table summarizes the positions taken on the markets at June 30, 2008:.

(18) Notes to the interim consolidated financial statements at June 30, 2008. 3. Notes to the statement of income – 1st half 2008 3.1. Net gains on financial instruments at fair value through profit or loss In view of the highly specific nature of its business, the ABC arbitrage group is probably one of the only independent firms engaged solely in arbitrage trading. The Group has opted for presentation by nature as this is closer to the indicators customarily published in its management report. At June 30, 2008, “Net gains or losses on financial instruments at fair value through profit or loss” came to €27,933 thousand, an increase of 8.45% compared with first half 2007 (€25,756 thousand at June 30, 2007).. -. dividends; gains and losses on disposal of financial assets at fair value through profit or loss; changes in fair value of instruments held or due; securities carrying or lending costs; exchange gains and losses.. 3.2. Other revenue Other revenue comprises revenue from sub-letting premises and amounted to €507 thousand versus €487 thousand during first half 2007.. 3.3. Administrative expenses Administrative expenses principally comprise data mining and processing costs, together with administrative and communications costs. This item totalled €1,786 thousand versus €1,723 thousand for the first half 2007.. ABC arbitrage // Interim report 2008. 16. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. This item corresponds to revenues from proprietary trading activities discussed in the Group’s management report, except for provisions. It includes all expenses and costs directly related to the trading business, including:.

(19) Notes to the interim consolidated financial statements at June 30, 2008. 3.4. Payroll costs At June 30, 2008, the average number of employees was 61. Payroll costs include (i) €4,338 thousand in fixed and performance-related compensation together with statutory and discretionary profit-sharing (versus €4,978 in 2007), (ii) payroll taxes of €1,472 thousand (versus €2,098 thousand in 2007). Payroll-based taxes amounted to €187 thousand (versus €147 thousand in 2007). Share-based payments amounted to €22 thousand (versus €170 in 2007). The Group does not provide any post-employment benefits (supplementary pensions or health insurance).. 3.5. Provision expense. 3.6. Note to the statement of cash flow The change in net cash and cash equivalents reflects the cash flows arising from the administrative management of Group companies. Cash flows relating to operating activities and their financing appear as changes in working capital.. ABC arbitrage // Interim report 2008. 17. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. At 30 June, 2008, provision expense amounted to €267 thousand, comprising additional impairment losses on receivables from foreign governments..

(20) Notes to the interim consolidated financial statements at June 30, 2008. 4. Segment information Revenues by business segment Arbitrage trading is the Group’s only business activity and all revenues are derived from proprietary transactions. The Group conducts two types of arbitrage strategy with different risk profiles in various geographical markets: arbitrages without market risks–self liquidating arbitrage strategies (transactions that do not generate any directional risk or any event risk; positions are fully hedged and are governed by legally binding documentation which guarantees convergence on a fixed date) and arbitrages with market risks–suspensive clause arbitrage strategies (unlike the first category, the legally binding documentation governing suspensive clause strategies does not guarantee convergence). Note: In the following tables, positions correspond to long positions valued at the convergence price, adjusted for the value of any payments to be made or received to close out the transaction.. 1st half 2008. Average number of arbitrage transactions. Average positions (value). Arbitrages without market risks. 72%. 89%. Arbitrages with market risks. 28%. 11%. 100%. 100%. Total. ABC arbitrage // Interim report 2008. 18. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. BREAKDOWN OF ARBITRAGE TRANSACTIONS BY TYPE OF RISK.

(21) Notes to the interim consolidated financial statements at June 30, 2008. BREAKDOWN OF ARBITRAGE TRANSACTIONS BY GEOGRAPHIC AREA. 1st half 2008. Average number of arbitrage transactions. Average positions (value). 23%. 18%. 5%. 14%. USA. 54%. 36%. Other markets. 18%. 32%. 100%. 100%. Euro zone (excluding France) France. Total. 1st half 2008. Arbitrages without market risks. Arbitrages with market risks. Total. Euro zone (excluding France). 15%. 3%. 18%. France. 13%. 1%. 14%. USA. 32%. 4%. 36%. Other markets. 29%. 3%. 32%. Total. 89%. 11%. 100%. ABC arbitrage // Interim report 2008. 19. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. BREAKDOWN OF ARBITRAGE TRANSACTIONS BY GEOGRAPHIC AREA AND TYPE OF RISK.

(22) STATUTORY AUDITORS’ REPORT ON THE FIRST-HALF 2008 INTERIM CONSOLIDATED FINANCIAL STATEMENTS. To the Shareholders, In accordance with the terms of our appointment by the General Meeting of Shareholders and as required by Article L.232-7 of the French Commercial Code (Code de Commerce) and Article L.451-1-2 III of the French Monetary and Financial Code (Code Monétaire et Financier), we have performed a limited review of the accompanying condensed interim consolidated financial statements of ABC arbitrage for the period from January 1 to June 30, 2008, and of the information contained in the interim management report. These condensed interim consolidated financial statements are the responsibility of the Board of Directors. Our responsibility, based on our limited review, is to report our conclusions concerning these interim consolidated financial statements.. We conducted our limited review in accordance with the professional standards applied in France. A limited review of interim financial statements consists primarily of making inquiries of the persons responsible for financial and accounting matters, and applying analytical procedures. It is less in scope than an audit conducted in accordance with auditing standards applicable in France and, consequently, does not enable us to obtain the same level of assurance that the financial statements are free from material misstatement as would be obtained from a full audit. Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34, the International Financial Reporting Standard adopted in the European Union for Interim Financial Reporting.. ABC arbitrage // Interim report 2008. 20. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. 1. Conclusions concerning the financial statements.

(23) Statutory Auditors’ report on the first-half 2008 interim consolidated financial statements. 2. Specific verification We have also reviewed the information given in the activity report accompanying the condensed interim consolidated financial statements that were the subject of our limited review. We have no matters to report regarding its fair presentation and conformity with the condensed interim consolidated financial statements. Paris and Neuilly-sur-Seine, September 8, 2008 The Statutory Auditors ERNST & YOUNG ET AUTRES Olivier Durand. ABC arbitrage // Interim report 2008. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. CONSTANTIN ASSOCIÉS Brigitte Drême .

(24) www.abc-arbitrage.com. WorldReginfo - 23281f11-8338-4876-9da1-6bfecd0ed1b0. 40, rue Notre Dame des Victoires 75002 Paris - France Tel: 33 (0)1 53 00 55 00 Fax: 33 (0)1 53 00 55 01 E-mail: abc@abc-arbitrage.com.

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