##### Table of Contents



As filed with the Securities and Exchange Commission on
October 20, 2005








UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 20-F


|   |  |                                                                                                       
|-- |  | ------------------------------------------------------------------------------------------------------
|o  |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR
    (g)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|OR
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934              
|   |  | For the fiscal year ended June 30, 2005                                                               
|OR
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934          

Commission file no. 000-30838





INFOVISTA S.A.


(Exact name of Registrant as specified in its charter)





|                             |  |                                                                                 |  |                               
|---------------------------- |  | ------------------------------------------------------------------------------- |  | ------------------------------
|Not Applicable               |  | 6, rue de la Terre de Feu
     91940 Les Ulis
    France
    (33-1) 64-86-79-00 |  | Republic of France            
|(Translation of Registrants |  | (Address of principal                                                           |  | (Jurisdiction of incorporation
|name into English)           |  | executive offices)                                                              |  | or organization)              

Securities registered or to be registered pursuant to
Section 12(b) of the Act:


None


Securities registered or to be registered pursuant to
Section 12(g) of the Act:


Title of Class:








Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act:


None





|  |                                                                                                                                                                                                                  
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Listed, not for trading or quotation purposes, but only in
    connection with the registration of the American Depositary
    Shares pursuant to the requirements of the Securities and
    Exchange Commission.



|                |  |  |            | 
|--------------- |  |  | ---------- | 
|Ordinary shares |  |  | 18,524,721 | 

þ o


o þ










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##### Table of Contents










TABLE OF CONTENTS


|        |       |                                                                     |                                                                          |          |    |    | 
|------- | ----- | ------------------------------------------------------------------- | ------------------------------------------------------------------------ | -------- | -- | -- | 
|        |       |                                                                     |                                                                          | Page No. |   
|        |       |                                                                     |                                                                          |          |   
|Part I  |       |                                                                     |                                                                          |          | 7  |   
|       
|Item 1. |       | Identity Of Directors, Senior Management
    And Advisers           |                                                                          |          | 7  |   
|       
|Item 2. |       | Offer Statistics And Expected Timetable                             |                                                                          |          | 7  |   
|       
|Item 3. |       | Key Information                                                     |                                                                          |          | 7  |   
|       
|3.1     |       | Selected Financial Data                                             |                                                                          |          | 7  |   
|3.2     |       | Exchange Rate Information                                           |                                                                          |          | 9  |   
|3.3     |       | Risk Factors                                                        |                                                                          |          | 10 |   
|        | 3.3.1 |                                                                     | Risks Related To Our Business                                            |          |    | 10 | 
|       
|        | 3.3.2 |                                                                     | Risks Related To Our Industry                                            |          |    | 20 | 
|       
|        | 3.3.3 |                                                                     | Other Risks                                                              |          |    | 20 | 
|       
|Item 4. |       | Information On The Company                                          |                                                                          |          | 23 |   
|       
|4.1     |       | General Information                                                 |                                                                          |          | 23 |   
|       
|        | 4.1.1 |                                                                     | Name And Registered Office                                               |          |    | 23 | 
|       
|        | 4.1.2 |                                                                     | Legal Form And Applicable Law                                            |          |    | 23 | 
|       
|        | 4.1.3 |                                                                     | Date Of Incorporation And Expiry                                         |          |    | 23 | 
|       
|        | 4.1.4 |                                                                     | Corporate Purpose                                                        |          |    | 23 | 
|       
|        | 4.1.5 |                                                                     | Registry Of Commerce And Companies                                       |          |    | 24 | 
|       
|        | 4.1.6 |                                                                     | Consultation Of Legal Documents                                          |          |    | 24 | 
|       
|        | 4.1.7 |                                                                     | Fiscal Year                                                              |          |    | 24 | 
|       
|        | 4.1.8 |                                                                     | Mergers & Consolidations                                                 |          |    | 24 | 
|       
|4.2     |       | General Information Concerning The Share
    Capital Of The Company |                                                                          |          | 24 |   
|        | 4.2.1 |                                                                     | Subsidiaries And Unconsolidated Investments
    As Of September 20, 2005 |          |    | 24 | 
|       
|        | 4.2.2 |                                                                     | Share Capital Information                                                |          |    | 25 | 
|       
|4.3     |       | Business Overview                                                   |                                                                          |          | 25 |   
|4.4     |       | Industry Background                                                 |                                                                          |          | 29 |   
|4.5     |       | The Infovista Difference                                            |                                                                          |          | 31 |   
|4.6     |       | Strategy                                                            |                                                                          |          | 33 |   
|4.7     |       | Solutions And Products                                              |                                                                          |          | 35 |   
|4.8     |       | Products In Development                                             |                                                                          |          | 38 |   
|4.9     |       | Services                                                            |                                                                          |          | 39 |   

1



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|        |  |                                                                              |  |          |    | 
|------- |  | ---------------------------------------------------------------------------- |  | -------- | -- | 
|        |  |                                                                              |  | Page No. |   
|        |  |                                                                              |  |          |   
|4.10    |  | Geographical Breakdown of Revenues and
    operating results                 |  |          | 41 | 
|4.11    |  | End-Users                                                                    |  |          | 42 | 
|4.12    |  | Sales And Marketing                                                          |  |          | 44 | 
|4.13    |  | Strategic Relationships                                                      |  |          | 44 | 
|4.14    |  | Competition                                                                  |  |          | 45 | 
|4.15    |  | Intellectual Property                                                        |  |          | 47 | 
|4.16    |  | Insurance                                                                    |  |          | 48 | 
|4.17    |  | Communications                                                               |  |          | 48 | 
|4.18    |  | Personnel  See
    Item 6. Directors, Senior Management And
    Employees |  |          | 48 | 
|4.19    |  | Research And Development                                                     |  |          | 48 | 
|4.20    |  | Facilities                                                                   |  |          | 48 | 
|4.21    |  | Legal Proceedings                                                            |  |          | 49 | 
|4.22    |  | Seasonality                                                                  |  |          | 49 | 
|4.23    |  | Raw Materials                                                                |  |          | 49 | 
|4.24    |  | Material Effect Of Government
    Regulations                                |  |          | 49 | 
|4.25    |  | Industrial And Environmental Risks                                           |  |          | 49 | 
|Item 5. |  | Operating And Financial Review And
    Prospects                             |  |          | 49 | 
|       
|5.1     |  | Overview                                                                     |  |          | 50 | 
|5.2     |  | Recent Developments                                                          |  |          | 50 | 
|5.3     |  | Revenues                                                                     |  |          | 50 | 
|5.4     |  | Cost Of Revenues                                                             |  |          | 51 | 
|5.5     |  | Operating Expenses                                                           |  |          | 51 | 
|5.6     |  | Period-To-Period Variability                                                 |  |          | 51 | 
|5.7     |  | Results Of Operations                                                        |  |          | 52 | 
|5.8     |  | Liquidity And Capital Resources                                              |  |          | 57 | 
|5.9     |  | Critical Accounting Policies                                                 |  |          | 58 | 
|5.10    |  | Transition To International Financial
    Reporting Standards (IFRS)       |  |          | 61 | 
|5.11    |  | Forward Looking Statements                                                   |  |          | 61 | 
|5.12    |  | Contractual Obligations                                                      |  |          | 62 | 
|Item 6. |  | Directors, Senior Management And
    Employees                               |  |          | 62 | 
|       
|6.1     |  | Board of Directors                                                           |  |          | 63 | 

2



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|        |       |                                                                              |                                                          |          |    |    | 
|------- | ----- | ---------------------------------------------------------------------------- | -------------------------------------------------------- | -------- | -- | -- | 
|        |       |                                                                              |                                                          | Page No. |   
|        |       |                                                                              |                                                          |          |   
|6.2     |       | Executive Officers                                                           |                                                          |          | 68 |   
|6.3     |       | Corporate Governance                                                         |                                                          |          | 69 |   
|        | 6.3.1 |                                                                              | Audit Committee                                          |          |    | 69 | 
|       
|        | 6.3.2 |                                                                              | Compensation Committee                                   |          |    | 69 | 
|       
|        | 6.3.3 |                                                                              | Investment Committee                                     |          |    | 70 | 
|       
|6.4     |       | (Reserved)                                                                   |                                                          |          | 70 |   
|6.5     |       | Compensation of Directors and Executive
    Officers (Mandataires Sociaux) |                                                          |          | 70 |   
|6.6     |       | Options and Warrants To Subscribe /
    Purchase Our Securities              |                                                          |          | 75 |   
|        | 6.6.1 |                                                                              | Options Giving The Right To Subscribe For
    New Shares |          |    | 75 | 
|       
|        | 6.6.2 |                                                                              | Options Giving The Right To Purchase
    Existing Shares |          |    | 78 | 
|       
|        | 6.6.3 |                                                                              | Warrants                                                 |          |    | 79 | 
|       
|6.7     |       | Employees                                                                    |                                                          |          | 80 |   
|        | 6.7.1 |                                                                              | Employee Distribution                                    |          |    | 80 | 
|       
|        | 6.7.2 |                                                                              | Reduction In Workforce                                   |          |    | 81 | 
|       
|        | 6.7.3 |                                                                              | Compensation                                             |          |    | 81 | 
|       
|        | 6.7.4 |                                                                              | Social Relations And Collective
    Agreements           |          |    | 82 | 
|       
|        | 6.7.5 |                                                                              | Health And Safety Conditions                             |          |    | 82 | 
|       
|        | 6.7.6 |                                                                              | Training For Personnel                                   |          |    | 82 | 
|       
|6.8     |       | Share Ownership                                                              |                                                          |          | 82 |   
|Item 7. |       | Major Shareholders And Related Party
    Transactions                        |                                                          |          | 82 |   
|       
|7.1     |       | Major Shareholders As Of September 20,
    2005                              |                                                          |          | 82 |   
|7.2     |       | Significant Changes To Shareholdings Over
    The Last Three Fiscal Years    |                                                          |          | 84 |   
|7.3     |       | Related Party Transactions                                                   |                                                          |          | 84 |   
|Item 8. |       | Financial Information                                                        |                                                          |          | 85 |   
|       
|8.1     |       | Consolidated Statements And Other Financial
    Information                  |                                                          |          | 85 |   
|8.2     |       | Legal Proceedings                                                            |                                                          |          | 85 |   
|8.3     |       | Dividend Policy                                                              |                                                          |          | 85 |   
|8.4     |       | Significant Changes                                                          |                                                          |          | 85 |   
|Item 9. |       | The Offer And Listing                                                        |                                                          |          | 85 |   
|       
|9.1     |       | Markets                                                                      |                                                          |          | 85 |   
|9.2     |       | Price History Of The Stock                                                   |                                                          |          | 85 |   

3



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|         |        |                                                                     |                                                     |          |     |    | 
|-------- | ------ | ------------------------------------------------------------------- | --------------------------------------------------- | -------- | --- | -- | 
|         |        |                                                                     |                                                     | Page No. |    
|         |        |                                                                     |                                                     |          |    
|9.3      |        | General                                                             |                                                     |          | 87  |   
|9.4      |        | Euronext Paris SA And Eurolist                                      |                                                     |          | 88  |   
|Item 10. |        | Additional Information                                              |                                                     |          | 89  |   
|        
|10.1     |        | Memorandum And Articles Of Association                              |                                                     |          | 89  |   
|10.2     |        | Shareholders Meetings And Voting
    Rights                        |                                                     |          | 89  |   
|         | 10.2.1 |                                                                     | General                                             |          |     | 89 | 
|        
|         | 10.2.2 |                                                                     | General Shareholders Meetings                      |          |     | 90 | 
|        
|         | 10.2.3 |                                                                     | Notice Of Shareholders Meetings                    |          |     | 90 | 
|        
|         | 10.2.4 |                                                                     | Attendance And Voting At Shareholders
    Meetings |          |     | 91 | 
|        
|         | 10.2.5 |                                                                     | Proxies And Votes By Mail                           |          |     | 91 | 
|        
|         | 10.2.6 |                                                                     | Quorum                                              |          |     | 92 | 
|        
|         | 10.2.7 |                                                                     | Majority                                            |          |     | 92 | 
|        
|10.3     |        | Financial Statements And Other
    Communications With Shareholders |                                                     |          | 92  |   
|10.4     |        | Dividends                                                           |                                                     |          | 93  |   
|         | 10.4.1 |                                                                     | Legal Reserve                                       |          |     | 93 | 
|        
|         | 10.4.2 |                                                                     | Approval Of Dividends                               |          |     | 93 | 
|        
|         | 10.4.3 |                                                                     | Distribution Of Dividends                           |          |     | 93 | 
|        
|         | 10.4.4 |                                                                     | Timing Of Payment                                   |          |     | 93 | 
|        
|10.5     |        | Changes In Share Capital                                            |                                                     |          | 94  |   
|         | 10.5.1 |                                                                     | Increases In Share Capital                          |          |     | 94 | 
|        
|         | 10.5.2 |                                                                     | Decreases In Share Capital                          |          |     | 95 | 
|        
|         | 10.5.3 |                                                                     | Share Capital Issued History                        |          |     | 96 | 
|        
|10.6     |        | Preemptive Subscription Rights                                      |                                                     |          | 98  |   
|10.7     |        | Form, Holding And Transfer Of Shares                                |                                                     |          | 98  |   
|         | 10.7.1 |                                                                     | Form Of Shares                                      |          |     | 98 | 
|        
|         | 10.7.2 |                                                                     | Holding Of Shares                                   |          |     | 98 | 
|        
|         | 10.7.3 |                                                                     | Transfer Of Shares                                  |          |     | 99 | 
|        
|10.8     |        | Liquidation Rights                                                  |                                                     |          | 99  |   
|10.9     |        | Requirements For Holdings Exceeding Certain
    Percentages         |                                                     |          | 99  |   
|10.10    |        | Purchase Of Our Own Shares                                          |                                                     |          | 100 |   
|        
|10.11    |        | Trading In Our Own Shares                                           |                                                     |          | 101 |   

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|          |         |                                                                |                                        |          |     |     | 
|--------- | ------- | -------------------------------------------------------------- | -------------------------------------- | -------- | --- | --- | 
|          |         |                                                                |                                        | Page No. |    
|          |         |                                                                |                                        |          |    
|10.12     |         | Ownership Of Shares By Non-French
    Persons                  |                                        |          | 102 |    
|         
|10.13     |         | Material Contracts                                             |                                        |          | 102 |    
|         
|10.14     |         | Exchange Controls                                              |                                        |          | 102 |    
|         
|10.15     |         | Other                                                          |                                        |          | 102 |    
|         
|10.16     |         | French Taxation                                                |                                        |          | 103 |    
|         
|          | 10.16.1 |                                                                | Taxation On Sale Or Disposal Of Shares |          |     | 103 | 
|         
|          | 10.16.2 |                                                                | Taxation Of Dividends                  |          |     | 103 | 
|         
|          | 10.16.3 |                                                                | Estate And Gift Tax                    |          |     | 105 | 
|         
|          | 10.16.4 |                                                                | Wealth Tax                             |          |     | 105 | 
|         
|          | 10.16.5 |                                                                | Taxation Of U.S. Investors             |          |     | 106 | 
|         
|          | 10.16.6 |                                                                | Where You Can Find More Information    |          |     | 113 | 
|         
|Item 11.  |         | Quantitative And Qualitative Disclosures
    About Market Risk |                                        |          | 113 |    
|         
|11.1      |         | General                                                        |                                        |          | 113 |    
|11.2      |         | Currencies                                                     |                                        |          | 114 |    
|11.3      |         | Interest Rates                                                 |                                        |          | 114 |    
|11.4      |         | Shares                                                         |                                        |          | 114 |    
|11.5      |         | Liquidity Situation                                            |                                        |          | 114 |    
|11.6      |         | Financial Instruments                                          |                                        |          | 114 |    
|Item 12.  |         | Description Of Securities Other Than Equity
    Securities     |                                        |          | 114 |    
|         
|Part II   |         |                                                                |                                        |          | 115 |    
|         
|Item 13.  |         | Defaults, Dividend Arrearages And
    Delinquencies            |                                        |          | 115 |    
|         
|Item 14.  |         | Material Modifications To The Rights Of
    Security Holders   |                                        |          | 115 |    
|         
|14.1      |         | Material Modifications To The Rights Of
    Security Holders   |                                        |          | 115 |    
|Part III  |         |                                                                |                                        |          | 115 |    
|         
|Item 15.  |         | Controls And Procedures                                        |                                        |          | 115 |    
|         
|Item 16.  |         | [Reserved]                                                     |                                        |          | 115 |    
|         
|Item 16a. |         | Audit Committee Financial Expert                               |                                        |          | 115 |    
|         
|Item 16b. |         | Code Of Ethics                                                 |                                        |          | 115 |    
|         
|Item 16c. |         | Principal Independent Auditor Fees And
    Services            |                                        |          | 116 |    
|         
|Item 16d. |         | Exemptions From The Listing Standards For
    Audit Committees |                                        |          | 116 |    
|         
|Item 16e. |         | Purchases Of Equity Securities                                 |                                        |          | 117 |    

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|                                                 |  |                      |  |          |     | 
|------------------------------------------------ |  | -------------------- |  | -------- | --- | 
|                                                 |  |                      |  | Page No. |    
|                                                 |  |                      |  |          |    
|Item 17.                                         |  | Financial Statements |  |          | 118 | 
|                                                
|Item 18.                                         |  | Financial Statements |  |          | 118 | 
|                                                
|Item 19.                                         |  | Exhibits             |  |          | 119 | 
|EX-1: STATUS (BY-LAWS)                          
|EX-4.8: 2005 STOCK OPTION PLAN                  
|EX-10.1: CONSENT OF ERNST & YOUNG AUDIT         
|EX-10.2: CONSENT OF PRICEWATERHOUSECOOPERS AUDIT
|EX-12.1: CERTIFICATION                          
|EX-12.2: CERTIFICATION                          
|EX-13.1: CERTIFICATION                          



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PART I







|        |                                                          
|------- | ---------------------------------------------------------
|ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND
    ADVISERS








|        |                                        
|------- | ---------------------------------------
|ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE








|        |                
|------- | ---------------
|ITEM 3. | KEY INFORMATION






|    |                        
|--- | -----------------------
|3.1 | SELECTED FINANCIAL DATA





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|                                                                                                                                   |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        |  |  |        |        |  |  |        |        | 
|---------------------------------------------------------------------------------------------------------------------------------- | ---------------------- | ------------------ |  | ------ | ------ |  | - | ------ | ------ | - | ---- | ------ | ------ | ---- |  | ------ | ------ |  |  | ------ | ------ |  |  | ------ | ------ | 
|                                                                                                                                   |                        | Year Ended June 30 | 
|                                                                                                                                   |                        |                    | 
|(In thousands, except for share and per share data)                                                                                |                        | 2005               |  |        | 2005   |  |   | 2004   |        |   | 2003 |        |        | 2002 |  |        | 2001   | 
|                                                                                                                                   |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        | 
|                                                                                                                                   |                        |                    |  |       |        |  |  |        |        |  |      |        |       |      |  |       |       
|                                                                                                                                   |                        | $                  |  |        |        |  |   |        |        |   |      |        |       
|Consolidated Statement of Income and Comprehensive Income
    Data:                                                                |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        |  |  |        |        |  |  |       
|Revenues                                                                                                                           |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        |  |  |        |        |  |  |       
|                                                                                                                                   | License revenues       |                    |  | 23,197 |        |  |   | 19,049 |        |   |      | 16,076 |        |      |  | 13,246 |        |  |  | 18,295 |        |  |  | 19,548 |       
|                                                                                                                                   | Service revenues       |                    |  | 18,621 |        |  |   | 15,292 |        |   |      | 12,611 |        |      |  | 12,276 |        |  |  | 11,108 |        |  |  | 8,350  |       
|                                                                                                                                   |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        | 
|                                                                                                                                   |                        | Total revenues     |  |        | 41,818 |  |   |        | 34,341 |   |      |        | 28,687 |      |  |        | 25,522 |  |  |        | 29,403 |  |  |        | 27,898 | 
|Cost of revenues(exclusive of non-cash compensation
    expense of $0,
    0,
    0,
    5,
    83, and
    146 respectively) |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        |  |  |        |        |  |  |       
|                                                                                                                                   | Cost of licenses       |                    |  | 1,044  |        |  |   | 857    |        |   |      | 681    |        |      |  | 914    |        |  |  | 954    |        |  |  | 882    |       
|                                                                                                                                   | Cost of services       |                    |  | 7,205  |        |  |   | 5,917  |        |   |      | 5,722  |        |      |  | 6,215  |        |  |  | 6,159  |        |  |  | 6,132  |       
|                                                                                                                                   |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        | 
|                                                                                                                                   | Total cost of revenues |                    |  | 8,249  |        |  |   | 6,774  |        |   |      | 6,403  |        |      |  | 7,129  |        |  |  | 7,113  |        |  |  | 7,014  |       
|                                                                                                                                   |                        |                    |  |        |        |  |   |        |        |   |      |        |        |      |  |        |        | 
|                                                                                                                                   | Gross profit           |                    |  | 33,569 |        |  |   | 27,567 |        |   |      | 22,284 |        |      |  | 18,393 |        |  |  | 22,290 |        |  |  | 20,884 |       

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|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |   |  |            |      |   |  |            |     | 
|--------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------- |  | ---------- | ---- |  | - | ---------- | -- | - | ---- | ---------- | --- | ---- |  | ---------- | ---- | - |  | ---------- | ---- | - |  | ---------- | --- | 
|                                                    |                                                                                                                                                              | Year Ended June 30                                                                          | 
|                                                    |                                                                                                                                                              |                                                                                             | 
|(In thousands, except for share and per share data) |                                                                                                                                                              | 2005                                                                                        |  |            | 2005 |  |   | 2004       |    |   | 2003 |            |     | 2002 |  |            | 2001 |  
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    |                                                                                                                                                              |                                                                                             |  |           |      |  |  |            |    |  |      |            |    |      |  |           |     
|                                                    |                                                                                                                                                              | $                                                                                           |  |            |      |  |   |            |    |   |      |            |    
|Operating expenses:                                 |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |   |  |            |      |   |  |           
|                                                    | Sales and marketing expenses (exclusive of non-cash compensation
    expense of $0,
    0,
    44,
    24,
    129, and
    309 respectively)           |                                                                                             |  | 18,748     |      |  |   | 15,396     |    |   |      | 14,802     |     |      |  | 16,513     |      |   |  | 16,600     |      |   |  | 16,574     |    
|                                                    | Research and development expenses (exclusive of non-cash
    compensation expense of $0,
    0,
    0,
    6,
    51,and
    155 respectively)          |                                                                                             |  | 8,099      |      |  |   | 6,651      |    |   |      | 6,081      |     |      |  | 7,036      |      |   |  | 7,183      |      |   |  | 4,640      |    
|                                                    | General and administrative expenses (exclusive of non-cash
    compensation expense of $0,
    0,
    0,
    3,
    54, and
    1,619
    respectively) |                                                                                             |  | 6,788      |      |  |   | 5,574      |    |   |      | 4,346      |     |      |  | 5,167      |      |   |  | 6,980      |      |   |  | 7,629      |    
|                                                    | Stock compensation expense                                                                                                                                   |                                                                                             |  |           |      |  |   |           |    |   |      | 44         |     |      |  | 38         |      |   |  | 317        |      |   |  | 2,229      |    
|                                                    | Restructuring costs and consulting fee                                                                                                                       |                                                                                             |  |           |      |  |   |           |    |   |      | 2,495      |     |      |  | 1,590      |      |   |  | 2,377      |      |   |  |           |    
|                                                    | Impairment of fixed assets                                                                                                                                   |                                                                                             |  | 5          |      |  |   | 4          |    |   |      | 608        |     |      |  | 150        |      |   |  | 182        |      |   |  |           |    
|                                                    | Impairment charge for goodwill                                                                                                                               |                                                                                             |  |           |      |  |   |           |    |   |      |           |     |      |  |           |      |   |  | 1,841      |      |   |  |           |    
|                                                    | Amortization of goodwill and acquired intangibles assets                                                                                                     |                                                                                             |  | 192        |      |  |   | 158        |    |   |      | 380        |     |      |  | 380        |      |   |  | 380        |      |   |  | 513        |    
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    | Total operating expenses                                                                                                                                     |                                                                                             |  | 33,832     |      |  |   | 27,783     |    |   |      | 28,756     |     |      |  | 30,874     |      |   |  | 35,860     |      |   |  | 31,585     |    
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    | Operating loss                                                                                                                                               |                                                                                             |  | (263       | )    |  |   | (216       | )  |   |      | (6,472     | )   |      |  | (12,481    | )    |   |  | (13,570    | )    |   |  | (10,701    | )  
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    | Other income                                                                                                                                                 |                                                                                             |  | 458        |      |  |   | 376        |    |   |      | 522        |     |      |  | 992        |      |   |  | 1,644      |      |   |  | 4,319      |    
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    | Income (loss) before income taxes and minority interest                                                                                                      |                                                                                             |  | 195        |      |  |   | 160        |    |   |      | (5,950     | )   |      |  | (11,489    | )    |   |  | (11,926    | )    |   |  | (6,382     | )  
|                                                    | Income tax expense                                                                                                                                           |                                                                                             |  | (44        | )    |  |   | (36        | )  |   |      | (254       | )   |      |  | (36        | )    |   |  | (12        | )    |   |  | (2         | )  
|                                                    | Minority interest                                                                                                                                            |                                                                                             |  |           |      |  |   |           |    |   |      |           |     |      |  |           |      |   |  | 34         |      |   |  | 68         |    
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    | Net income (loss)                                                                                                                                            |                                                                                             |  | 151        |      |  |   | 124        |    |   |      | (6,204     | )   |      |  | (11,525    | )    |   |  | (11,904    | )    |   |  | (6,316     | )  
|                                                    |                                                                                                                                                              | Other comprehensive (loss) income, net of tax: Foreign currency
    translation adjustments |  |            | 43   |  |   |            | 35 |   |      |            | (98 | )    |  |            | (370 | ) |  |            | (164 | ) |  |            | 297 | 
|                                                    |                                                                                                                                                              | Unrealized gains (losses) on available for sale securities                                  |  |            | 77   |  |   |            | 63 |   |      |            | 54  |      |  |            | 337  |   |  |            | (487 | ) |  |            |    | 
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    | Comprehensive income (loss)                                                                                                                                  |                                                                                             |  | 271        |      |  |   | 222        |    |   |      | (6,248     | )   |      |  | (11,558    | )    |   |  | (12,555    | )    |   |  | (6,019     | )  
|                                                    |                                                                                                                                                              |                                                                                             |  |            |      |  |   |            |    |   |      |            |     |      |  |            |      |  
|                                                    | Basic net income (loss) per share                                                                                                                            |                                                                                             |  | 0.01       |      |  |   | 0.01       |    |   |      | (0.35      | )   |      |  | (0.61      | )    |   |  | (0.60      | )    |   |  | (0.34      | )  
|                                                    | Diluted net income (loss) per share                                                                                                                          |                                                                                             |  | 0.01       |      |  |   | 0.01       |    |   |      | (0.35      | )   |      |  | (0.61      | )    |   |  | (0.60      | )    |   |  | (0.34      | )  
|                                                    | Basic weighted average shares outstanding                                                                                                                    |                                                                                             |  | 17,271,717 |      |  |   | 17,271,717 |    |   |      | 17,778,929 |     |      |  | 18,843,308 |      |   |  | 19,733,253 |      |   |  | 18,851,731 |    
|                                                    | Diluted weighted average shares outstanding                                                                                                                  |                                                                                             |  | 20,936,182 |      |  |   | 20,936,182 |    |   |      | 17,778,929 |     |      |  | 18,843,308 |      |   |  | 19,733,253 |      |   |  | 18,851,731 |    

8



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|                                                          |  |                |         |   |      |  |             |       |  |             |        |  |             |       |        |             |       |  |        |  |  |  |        | 
|--------------------------------------------------------- |  | -------------- | ------- | - | ---- |  | ----------- | ----- |  | ----------- | ------ |  | ----------- | ----- | ------ | ----------- | ----- |  | ------ |  |  |  | ------ | 
|                                                          |  | As of June 30, |        
|                                                          |  |                |        
|(In thousands, except for share and per share data)       |  | 2005           |         |   | 2005 |  |             | 20041 |  |             | 20031  |  |             | 20021 |        |             | 20011 | 
|                                                          |  |                |         |   |      |  |             |       |  |             |        |  |             |       |        |             |       | 
|                                                          |  |                |         |  |      |  |            |       |  |            |        |  |            |       |        |            |      
|                                                          |  | $              |         |   |      |  | As restated |       |  | As restated |        |  | As restated |       |        | As restated |      
|Consolidated Balance Sheet Data:                          |  |                |         |   |      |  |             |       |  |             |        |  |             |       |        |             |       |  |        |  |  |  |        | 
|Cash and cash equivalents                                 |  |                | 10,693  |   |      |  | 8,781       |       |  |             | 5,070  |  |             |       | 4,779  |             |       |  | 3,316  |  |  |  | 4,377  | 
|Marketable securities                                     |  |                | 30,400  |   |      |  | 24,965      |       |  |             | 27,606 |  |             |       | 38,971 |             |       |  | 52,423 |  |  |  | 58,527 | 
|Working capital (current assets less current liabilities) |  |                | 38,975  |   |      |  | 32,007      |       |  |             | 30,956 |  |             |       | 39,681 |             |       |  | 53,150 |  |  |  | 62,775 | 
|Fixed assets, net                                         |  |                | 2,679   |   |      |  | 2,200       |       |  |             | 2,449  |  |             |       | 3,549  |             |       |  | 4,441  |  |  |  | 4,758  | 
|Total assets                                              |  |                | 63,599  |   |      |  | 52,229      |       |  |             | 48,853 |  |             |       | 58,433 |             |       |  | 73,530 |  |  |  | 85,000 | 
|Total current liabilities                                 |  |                | 18,412  |   |      |  | 15,120      |       |  |             | 12,486 |  |             |       | 11,944 |             |       |  | 12,851 |  |  |  | 11,983 | 
|Total non-current liabilities                             |  |                | 138     |   |      |  | 113         |       |  |             | 113    |  |             |       | 71     |             |       |  | 61     |  |  |  | 448    | 
|Shareholders equity                                      |  |                | 45,050  |   |      |  | 36,996      |       |  |             | 36,254 |  |             |       | 46,418 |             |       |  | 60,618 |  |  |  | 72,569 | 
|Capital
    stock2                                        |  |                | 115,558 |   |      |  | 94,896      |       |  |             | 95,215 |  |             |       | 94,869 |             |       |  | 96,495 |  |  |  | 96,252 | 






|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1 | The Group has historically accounted for certain investments,
    known as Société dInvestissement à Capital
    Variable (SICAV) and Fonds Commun de Placement
    (FCP), as cash and cash equivalents. These highly
    liquid investments represent units of ownership in a portfolio
    of underlying investments that are primarily low risk and that
    are mostly, but not exclusively short-term (less than
    90 days) fixed maturity dates. During fiscal year 2005, the
    Group reviewed the nature of these investments and discovered
    that certain of the Groups SICAV and FCP underlying
    investments contained equity instruments and investments whose
    maturity date is greater than 3 months. As a result, the
    Group has restated all SICAV and FCP, which were previously
    recorded in cash and cash equivalents, to short-term marketable
    securities in the accompanying consolidated financial
    statements. Prior periods information was restated to conform to
    the current year presentation. The restated balance sheet as of
    June 30, 2004, 2003, 2002 and 2001 now reflects cash and
    cash equivalents totaling
    5,070 thousand
    (previously reported as
    26,772
    thousand), 4,779
    thousand (previously reported as
    37,900
    thousand), 3,316
    thousand (previously reported as
    50,226 thousand)
    and 4,377
    thousand (previously reported as
    62,904
    thousand), respectively; as well as marketable securities
    totaling 27,606
    thousand (previously reported as
    5,904 thousand),
    38,971 thousand
    (previously reported as
    5,850 thousand),
    52,423 thousand
    (previously reported as
    5,513 thousand)
    and 58,527
    thousand (previously reported as
    0),
    respectively. This restatement also resulted in changes in the
    Groups consolidated statements of cash flows. Since cash
    and cash equivalents no longer include such investments, the net
    purchase and sale of SICAV and FCP has been presented as
    operating activities for all periods presented, as these
    investments have been designated as trading securities. There
    was no impact on net income (loss) or stockholders equity
    as a result of this restatement.
| 
|2 | inclusive of common stock and capital in excess of par value of
    stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 






|    |                          
|--- | -------------------------
|3.2 | EXCHANGE RATE INFORMATION







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|                                            |  |                 |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|------------------------------------------- |  | --------------- | ---- |  | ------------- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                                            |  | Period end Rate |      |  | Average rate1 |  |      | High |  |  | Low  | 
|                                            |  |                 |      |  |               |  |      |      |  |  |      | 
|euro/ U.S. dollar                           |  |                 |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|September 2005 (through September 20, 2005) |  |                 | 1.22 |  |               |  | 1.23 |      |  |  | 1.25 |  |  |  | 1.21 | 
|August 2005                                 |  |                 | 1.22 |  |               |  | 1.23 |      |  |  | 1.25 |  |  |  | 1.22 | 
|July 2005                                   |  |                 | 1.21 |  |               |  | 1.20 |      |  |  | 1.22 |  |  |  | 1.19 | 
|Year ended June 30,                         |  |                 |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|                                            |  |                 |      |  |               |  |      |      |  |  |      | 
|euro/ U.S. dollar                           |  |                 |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|2005                                        |  |                 | 1.21 |  |               |  | 1.27 |      |  |  | 1.36 |  |  |  | 1.20 | 
|2004                                        |  |                 | 1.22 |  |               |  | 1.19 |      |  |  | 1.29 |  |  |  | 1.08 | 
|2003                                        |  |                 | 1.14 |  |               |  | 1.05 |      |  |  | 1.19 |  |  |  | 0.96 | 
|2002                                        |  |                 | 1.00 |  |               |  | 1.12 |      |  |  | 1.19 |  |  |  | 1.00 | 
|2001                                        |  |                 | 1.18 |  |               |  | 1.12 |      |  |  | 1.21 |  |  |  | 1.05 | 






|  |                                                                                                           
|- | ----------------------------------------------------------------------------------------------------------
|1 | The average of the noon buying rate on the last business day of
    each month during the relevant period.




3.3     RISK FACTORS









| |                                                      
| | -----------------------------------------------------
| | 3.3.1               Risks
    Related to our Business



| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | Our limited operating history makes it difficult for
    investors to predict how our business and our future operating
    results will develop







| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | We have incurred significant losses in the past, we cannot
    guarantee that we will maintain profitability

   


Our inability to acquire
and integrate other businesses, products or technologies could
seriously harm our competitive position.


10



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The requirement to expense stock options in our income
statement could have a significant adverse effect on our
reported results, and we do not know how the market will
react.






| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we overestimate revenues, we may be unable to reduce our
    expenses to avoid or minimize a negative impact on our quarterly
    results of operations.









| |                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------
| | We expect that our quarterly operating results will fluctuate
    and this could cause our stock price to fluctuate or decline







| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| |  | demand for our products and services;                                                                    
|
| |  | the timing of the sales of our products and services;                                                    
|
| |  | the announcement and introduction of competing software;                                                 
|
| |  | changes in our pricing policies or those of our competitors;                                             
|
| |  | delays in the introduction or enhancement of products or
    services by us or by our competitors;       
|
| |  | whether our software and services are sold directly or through
    indirect sales channels;              
|
| |  | the mix of sales of our licenses and services in Europe, the
    Americas, in Asia-Pacific and elsewhere;
|
| |  | costs related to acquisitions of technology or businesses;                                               
|
| |  | customer budget cycles and changes in these cycles;                                                      
|
| |  | deferrals of customer orders in anticipation of software
    enhancements or new software;               
|
| |  | ability to attract and retain strategic partners;                                                        
|
| |  | ability to attract, retain and motivate qualified
    personnel; and                                     
|
| |  | changes in general economic and political conditions.                                                    



11



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| |                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because we rely on the InfoVista product line and related
    services for the majority of our revenues today, our failure to
    market them successfully or to offer other products could weaken
    our competitive position and adversely affect our results of
    operations







| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Our markets are highly competitive and we may not be able to
    compete effectively







| |                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to attract new clients and gain new opportunities
    within different divisions of existing clients could cause our
    revenues to decline



12



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| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to obtain additional large clients or significant
    opportunities within existing large clients could cause our
    revenues to decline







| |                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because our revenues depend on service providers, including
    telecommunications companies, adverse trends in these
    clients markets could have a material adverse effect on
    our results of operations







| |                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our software requires the use of third-party software and our
    business could be seriously harmed if we fail to obtain or embed
    it effectively in our software





13



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| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | The inability of our products to operate with the products
    used by our present and potential clients could harm our
    revenues







| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Defects in our products could harm our reputation and expose
    us to potential liability







| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to adapt to rapid changes in technology or to
    develop and introduce new products or enhancements to existing
    products could seriously reduce the demand for our products







14



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| |                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------
| | Our products have a long and variable sales cycle making it
    difficult to determine if and when a sale will occur





| |   |                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | client purchase decisions often require lengthy budgeting,
    approval and competitive evaluation processes that accompany
    significant capital expenditures for technical products such as
    ours;          
|
| |  | clients frequently begin by evaluating our products on a limited
    basis, typically for 30 days, devoting time and resources
    to testing them before they decide whether or not to purchase a
    license; and
|
| |  | clients may defer orders in anticipation of releases of new
    software or enhancements by us or our competitors.                                                                                                 





| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Our failure to adequately protect our intellectual property
    could harm our competitive market position







| |                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------
| | Claims that our products infringe the proprietary rights of
    others could harm our sales and increase our costs



15



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| |   |                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | cease making, licensing or using products or services that
    incorporate the challenged intellectual property;                                                          
|
| |  | obtain and pay for licenses from the holder of the infringed
    intellectual property right, which licenses might not be
    available on acceptable terms, if at all;   
|
| |  | redesign our products, which could be costly and force us to
    interrupt product licensing and releases, or might not be
    feasible at a reasonable cost or at all; or
|
| |  | refund license fees paid to us by end-users as a result of
    indemnification guarantees.                                                                                



| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our inability to maintain and establish new relationships
    with strategic partners and other indirect sales relationships
    could cause our revenues to decline







| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our inability to hire and retain research and development
    engineers, sales persons and qualified service personnel would
    limit our revenue growth





16



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| |                                                                         
| | ------------------------------------------------------------------------
| | Our inability to hire and retain key personnel would slow our
    growth





| |                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------
| | We will be increasingly susceptible to risks associated with
    our international operations, which could harm our operating
    results





| |   |                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------
| |  | currency exchange rate fluctuations;                                                                               
|
| |  | increases in rates of inflation;                                                                                   
|
| |  | tariffs, duties, export controls and other trade barriers;                                                         
|
| |  | government ownership or regulation of certain economies;                                                           
|
| |  | longer accounts receivable payment cycles and difficulties in
    collecting accounts receivables;                 
|
| |  | even lengthier sales cycles and increased selling expenses,
    including travel;                                  
|
| |  | difficulties and costs of staffing and managing foreign
    operations;                                            
|
| |  | reduced protection for, or our inability to secure and enforce,
    intellectual property rights in some countries;
|
| |  | increased costs to defend our intellectual property rights;                                                        
|
| |  | potentially adverse tax consequences;                                                                              
|
| |  | the burdens of complying with a wide variety of ever changing
    foreign laws and regulations; and                
|
| |  | political and economic instability.                                                                                





| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Our business may be harmed by incidents and consequences of
    acts of domestic and international terrorism, war and
    revolutions



17



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##### Table of Contents







| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | Our inability to acquire and integrate other businesses,
    products or technologies could seriously harm our competitive
    position







| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | In the future, we may not be able to secure financing
    necessary to operate our business as planned







| |                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The requirement to expense stock options in our income
    statement could have a significant adverse effect on our
    reported results, and we do not know how the market will
    react.



 


18



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##### Table of Contents







| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | We may incur tax expenses as a result of stock options or
    warrants issued to French based employees





| |                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes to current accounting policies could have a
    significant effect on our reported financial results or the way
    in which we conduct our business





| |   |                                             
| | - | --------------------------------------------
| |  | software revenue recognition;               
|
| |  | accounting for stock-based compensation; and
|
| |  | accounting for intangible assets.           





| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | We are exposed to risks from recent legislation requiring
    companies to evaluate internal control over financial
    reporting.





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| |                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------
| | We cannot be certain that our internal control over financial
    reporting will be effective or sufficient in the future










| |                                            
| | -------------------------------------------
| | 3.3.2     Risks Related to our
    Industry



| |                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If the Service Level Management (SLM) market
    or the Performance Management segment in particular, declines or
    fails to grow, demand for our products will be reduced







| |                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because we are subject to general economic and market
    conditions, any economic downturn could have a material adverse
    effect on our business, results of operations and financial
    condition










| |                      
| | ---------------------
| | 3.3.3     Other Risks



| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | The price of our shares and ADSs is highly volatile and could
    decline significantly

Nouveau Marché Compartment C of Eurolist by
Euronext tm Nouveau Marché   Compartment C of Eurolist by
Euronext tm 


20



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| |   |                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------
| |  | the difference between results announced by us and forecasts
    (published or unpublished) by analysts;                 
|
| |  | the announcement of the results of competitors and other
    technology companies;                                       
|
| |  | important contracts, mergers, acquisitions, strategic
    partnerships or participations involving our competitors or us;
|
| |  | a modification in analyst forecasts or their investment
    recommendations regarding us;                                
|
| |  | the announcement of SLM or other technological
    innovations; and                                                      
|
| |  | fluctuations in our operating results.                                                                                   







| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | The price of our ADSs and the U.S. dollar value of any
    dividends will be affected by fluctuations in the
    U.S. dollar/ euro exchange rate





| |                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The effects of fluctuations in international currency
    exchange rates could have a material adverse impact on the
    results of our operations and the financial condition of our
    customers, our subsidiaries and us





| |                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The effects of fluctuations in interest rates could have a
    material adverse impact on the results of our operations and the
    financial condition of our customers, our subsidiaries and us





| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | Certain shareholders may not be able to exercise preemptive
    rights for shares underlying their ADSs

(droits préférentiels de
souscription


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Compartment C of
Eurolist by
Euronext tm




| |                                                                                                  
| | -------------------------------------------------------------------------------------------------
| | Holders of ADSs may be subject to additional risks related to
    holding ADSs rather than shares





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the event of a dividend or other distribution, if exchange
    rates fluctuate during any period of time when the depositary
    cannot convert a foreign currency into U.S. dollars, the
    ADS holder may lose some or all of the value of the
    distribution. There can be no assurances that the depositary
    will be able to convert any currency at a specified exchange
    rate or sell any property, rights, shares or other securities at
    a specified price, or that any of such transactions can be
    completed within a specified time period;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | In order to vote at general shareholders meetings, ADS
    holders who are not registered on the books of the depositary
    are required to transfer their ADSs for a certain number of days
    before a general shareholders meeting into a blocked
    account established for that purpose by the depositary. Any ADS
    transferred to this blocked account will not be available for
    transfer during that time. ADS holders who are registered on the
    books of the depositary must give instructions to the depositary
    not to transfer their ADSs during this period before the general
    shareholders meeting. ADS holders must therefore receive
    voting materials from the depositary sufficiently in advance in
    order to make these transfers or give these instructions. There
    can be no guarantee that ADS holders will receive voting
    materials in time to instruct the depositary to vote. It is
    possible that ADS holders, or persons who hold their ADSs
    through brokers, dealers or other third parties, will not have
    the opportunity to exercise a right to vote at all;
|
| |  | ADS holders may not receive copies of all reports from the
    depositary or us. They may be required to go to the
    depositarys offices to inspect any reports issued; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | The depositary and we may amend or terminate the deposit
    agreement without ADS holders consent in a manner that
    could prejudice ADS holders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    



| |                                                   
| | --------------------------------------------------
| | The value of the shares that we hold may fluctuate

 


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| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Passive Foreign Investment Company Status under the
    U.S. Internal Revenue Code





| |   |                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------
| |  | gains realized on the disposition of shares or ADSs being
    treated as ordinary income rather than capital gain;                    
|
| |  | the applicability of interest charges on certain dividends and
    on the disposition of the shares or ADSs; and                      
|
| |  | the failure of any dividends paid to qualify for the reduced
    rate of taxation generally available for individual
    U.S. holders.






ITEM 4.     INFORMATION ON THE
COMPANY







|    |                    
|--- | -------------------
|4.1 | GENERAL INFORMATION






| |                                         
| | ----------------------------------------
| | 4.1.1     Name and registered
    office



| |               
| | --------------
| | InfoVista S.A.














| |                                            
| | -------------------------------------------
| | 4.1.2     Legal form and
    applicable law

société anonyme Conseil
dadministration. Code de commerce







| |                                               
| | ----------------------------------------------
| | 4.1.3     Date of incorporation
    and expiry

société à responsabilité
limitée Méthodes Futures pour
lInformatique M.F.I., société anonyme







| |                                
| | -------------------------------
| | 4.1.4     Corporate
    Purpose





| |   |                                                                                                                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the research, study, design, development and production of
    software;                                                                                                                                                                                                                                                                       
|
| |  | sale, distribution, maintenance, training, and consulting,
    regarding all equipment, software or services as concerns
    computing, automatic or automation processes, industrial and
    office automation, or telecommunication structures for companies
    or institutions, public or private, whatever their area of
    business; and
|
| |  | generally, all industrial, commercial, stock, property, and
    financial operations that may have a direct or indirect effect
    on the defined purposes or contribute to their development.                                                                                                                                                 

statuts


23



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| |                                                 
| | ------------------------------------------------
| | 4.1.5     Registry of Commerce
    and Companies








| |                                              
| | ---------------------------------------------
| | 4.1.6     Consultation of legal
    documents

statuts,







| |                      
| | ---------------------
| | 4.1.7     Fiscal year








| |                                       
| | --------------------------------------
| | 4.1.8     Mergers &
    consolidations



   









|    |                                                                    
|--- | -------------------------------------------------------------------
|4.2 | GENERAL INFORMATION CONCERNING THE SHARE CAPITAL OF THE
    COMPANY






| |                                                                                   
| | ----------------------------------------------------------------------------------
| | 4.2.1     Subsidiaries and
    unconsolidated investments as of September 20, 2005






24



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 







| |                                        
| | ---------------------------------------
| | 4.2.2     Share capital
    information














|    |                  
|--- | -----------------
|4.3 | BUSINESS OVERVIEW











25



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| |                                
| | -------------------------------
| | The InfoVista Value Proposition











26



---



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| |   |                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Reduce Operating Riskby pre-empting business technology
    performance problems and mitigating business risks;                                                                                                          
|
| |  | Improve Business Effectivenessby maximizing the
    availability of technology that supports key business functions;                                                                                                     
|
| |  | Lower Total Cost of Operationsby identifying
    opportunities for rightsizing, consolidation and operational
    efficiencies;                                                                                          
|
| |  | Enhance Business Valueby aligning Information Technology
    investments with business priorities and accelerate time to
    value;                                                                                      
|
| |  | Create Competitive Advantageby delivering new IT
    infrastructure-based services and enabling meaningful IT service
    management programs that generate additional revenue streams and
    ensure quality of service.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Capacity Planningto determine future network capacity
    requirements. For example, Com Hem, Swedens largest cable
    TV provider, uses our solution to monitor trends in utilization
    and manage and optimize its network as it expands to become a
    multi-service provider. Our solutions collect, aggregate and
    transform key historical data as well as real-time network
    information so that Com Hem can anticipate infrastructure
    requirements and avoid service degradations while adding
    customers and expanding services that include IP Telephony.                                                                                                                                                             
|
| |  | Problem Resolutionto accelerate the workflow for
    analyzing, prioritizing, and resolving infrastructure problems
    proactively, before service impact. For example, our early
    warning system is used by Bell Canada for preemptive problem
    identification, rapid troubleshooting of performance degradation
    and intuitive service level reporting through personalized
    portals. Our solutions identify problematic trends by comparing
    current IT infrastructure health with historical baselines and
    automatically generate real-time alarms that predict impending
    network performance issues. In this way, problems can be rapidly
    identified and resolved so that network down time can be
    prevented.
|
| |  | Performance Troubleshootingto determine the cause of
    network performance and service level problems. For example,
    Cable & Wireless uses our solution to gain visibility
    into the network, obtain real-time information on performance
    and quality of service, locate network problems with precision
    and resolve them in the shortest possible time, or preempt
    service degradation entirely. Accurate measurements of network
    service quality are delivered to customers through customized
    reports.                                                                                                                                                                                                             
|
| |  | Service Level Managementto ensure that internal or
    outsourced IT services support business critical operations. For
    example, the IT outsourcing organization of a major Systems
    Integrator, uses our solution both internally to track voice and
    data communication service levels delivered to their internal
    customers, and externally to support and provide visibility into
    guaranteed service levels for communications services they
    manage for their enterprise customers. Information is delivered
    via highly differentiated and rich, customer-facing web portals.                                                                                                                                       





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Cable & Wireless uses our solutions to continuously
    optimize the state of their MPLS-based IP VPN service. Our
    solutions provide real-time monitoring and dynamic threshold
    analysis to manage Cable & Wireless MPLS
    backbone, and also monitor Quality of Service (QoS),
    and other key VPN traffic measures, to optimize performance by
    customer. Based on its success with our solutions,
    Cable &

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | Wireless recently selected us as its single IT Performance
    Management vendor for the support of their managed Internet
    Protocol (IP) services, which include IP Telephony, IP VPN
    and server management.                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Bell Canada uses our solutions for proactive management of its
    IP VPN and IPT network, enhanced SLA visibility and to provide
    service level reporting to their customers. Capabilities
    include: an early warning system for preemptive problem
    identification, trend analysis for proactive capacity planning,
    rapid troubleshooting of performance problems, intuitive service
    level reporting and a personalized Portal interface for internal
    and external customers featuring dynamic dashboards and
    real-time performance information.
|
| |  | The IT outsourcing organization of a major Systems Integrator is
    using our end-to-end service centric IP Telephony management
    solution to ensure optimal delivery of Voice over IP services to
    both their internal organization as well as other large
    enterprise customers. The solution provides actionable insight
    into service levels and performance over an MPLS infrastructure.                                                                                                                                                                 
|
| |  | Com Hem is using our solutions to transition to a triple-play
    service provider model. Our solutions allow Com Hem to maintain
    quality of service and manage operating costs as they expand
    their broadband network to include new IP Telephony services and
    new customers.                                                                                                                                                                                                                                                                                 
|
| |  | Telkomsel, the Indonesian provider of cellular
    telecommunications, uses our solution to optimize their IP
    backbone, facilitating customer reporting, network capacity
    planning and reporting on their core network operations. The
    company has improved visibility into delivery of its IP services
    through our tightly integrated suite of products, preconfigured
    analytics, Key Performance Indicators (KPIs), prepackaged
    reports and embedded best-practice workflows.                                                                    









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Influencers  These business partners recommend
    our software solutions in an independent capacity to Tier-1 and
    Tier-2 service providers and/or large enterprises. This category
    ranges from global system integrator to regional consulting firm
    that propose and promote services that leverage the benefits of
    our software and enable them to differentiate and maximize the
    time-to-value of their own services. We have been selected as a
    preferred partner to address IT Performance Management and SLM
    market requirements for many of our influencers. Some of our
    influencer partners include network equipment vendors and
    independent software vendors that strive to provide more
    pre-integrated functionality out of the box and recognize that
    performance reporting is a critical component of a comprehensive
    Operational Support System (OSS) or Business Service
    Management (BSM) solution;

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Resellers  These business partners not only
    deliver high value-added consulting, integration and
    customization services around our solutions but sell our
    software solutions as well. Resellers may also provide first
    level support if they meet specific criteria; and                                                                                                                                                          
|
| |  | OEM partners  These partners embed our
    technology and software into their own products. OEM partners
    privately license our software as part of their overall product
    suites, ensuring that their customers can manage even the most
    complex network operations and contracts between service
    providers and consumers of those services. We work closely with
    our OEM partners to best integrate our solutions with theirs.







| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | Marketing and Sales Support  evaluation
    software, product information, partner events, lead generation;
|
| |  | Education  Sales and technical education, with
    technical certification at multiple levels;             
|
| |  | Professional Services  Service packs for
    solution implementation, core team, mentoring; and            
|
| |  | Technical Support                                                                                           










|    |                    
|--- | -------------------
|4.4 | INDUSTRY BACKGROUND





| |                        
| | -----------------------
| | Service Provider Market





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Consolidation  A direct fallout of competitive
    pressure is the rapid consolidation of the service provider
    market. In the U.S. for example, pending mega-mergers
    between SBC and AT&T, Sprint and Nextel and Verizon and MCI
    are expected to slow down the market for service assurance and
    monitoring technologies as the number of buying entities is
    reduced. Pressure of cost reduction and

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | efficiency gains also compels service providers to consolidate
    the multiple tools that exist within different business groups
    in the organization to a standardized platform that supports
    performance monitoring and management requirements in the OSS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Customer Experience Management  In their
    effort to retain customers and reduce the high costs of new
    customer acquisition, service providers are deploying service
    quality monitoring tools that measure the end user experience of
    delivered services. This enables service providers to prioritize
    operational response based on a view of the overall service and
    also direct new investments and capacity to critical services.
    In short, service providers are compelled to adopt
    service-centric approaches which extends customer management
    responsibility from marketing and support organizations to
    operations and service delivery teams.                                                                                                                                                      
|
| |  | Differentiated SLA Requirements 
    Business-to-Business service providers use Service
    Level Agreements (SLA) as an effective strategy
    to increase customer loyalty, differentiate their services and
    create new revenue opportunities. As converged IP services
    become more real-time in their impact (e.g. triple
    play  voice, data, video) service level measurement
    systems deployed by providers are shifting to the network edge
    focusing on the end user impact of these services. In fact,
    providers must now meet expectations of higher standards that
    customers traditionally expect from legacy services when they
    were based on dedicated packet switched technology. Stringent
    SLA measurement and reporting requirements are fueling more IT
    Performance Management investments.
|
| |  | Optimizing Network Efficiency  Increased
    competition and demands for new investments also mean that
    greater scrutiny is being placed on maintaining capital
    efficiency and utilization rates. Converged MPLS traffic with
    different Class of Service (CoS) prioritizations and
    the deployment of new equipment introduce new degrees of
    complexity in network management. Quality of Service
    (QoS) oriented network performance monitoring and
    reporting is critical to provide operational staff proactive
    visibility of service degradations to initiate problem
    resolution mechanisms. Similarly, underutilized network capacity
    needs to be identified via trend analysis and monitoring and
    rebalanced to achieve targeted returns on investment.                                         
|
| |  | Managed Services  The search for new revenue
    streams among service providers and the growing enterprise
    comfort with remotely delivered services (e.g. remote network
    management) is fueling the growth of outsourcing and managed
    services. Managed service entities have evolved in all types of
    providers including carriers, system integrators and traditional
    outsourcers. That brings with it increased challenges of
    delivering the right quality of service and the need for
    ensuring improved visibility of the health and availability of
    those IT services. Portal based customer reporting that provides
    enterprise customers the visibility into how their business
    systems are being supported and managed is a key component of
    managed services offering.                         





| |                  
| | -----------------
| | Enterprise Market



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Service-Centric Management  IT has evolved
    from the bottom-up resource-centric management of
    infrastructure, where IT was a cost center to business
    operations with no strategic visibility or responsibility, to
    top-down service-centric management, where IT is a
    critical component of business delivery. CIOs and their
    business line organizations demand that IT be aligned with
    business objectives. Concurrently, performance measures like
    individual resource availability are being replaced by end-user
    centric service quality measurements (SQM) that
    reflect the actual health of business services.                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | IP Convergence  New IP-enabled networked
    applications are delivering more tools and capabilities to
    businesses to connect, collaborate and leverage their
    intellectual and human capital worldwide. IP telephony, instant
    messaging and collaboration, presence services, conferencing
    etc. all provide ways to cut down organizational response time
    and improve effectiveness of enterprise teams while also holding
    down costs. However, moving from legacy packet switched networks
    to new generation IP/ MPLS networks also has concomitant costs.
    Job roles and responsibilities, for example, when traditional
    trunk telephony moves to IP Telephony, are morphing, requiring
    organizations to staff different skill sets, undertake
    retraining, re-organizing and adopting new ways of management.
    Again, effective IT Performance Management of these converged
    and typically real-time services (e.g. voice and video
    conferencing over IP networks) is proving critical to
    transition, measure and manage new IT organizations.
|
| |  | Selective Sourcing  Enterprise businesses
    continually look for higher productivity gains and returns at
    lower costs. With the evolution of new generation communication
    and collaboration technologies, the costs of managing technology
    in-house have also multiplied. Hence businesses are actively
    considering outsourcing non-core IT operations to external
    service providers (ESPs) while core areas that make
    strategic sense or represent areas of key intellectual property
    or efficiency continue to be sourced from in-house corporate IT
    organizations. This duality of selectively farming out different
    IT services to ESPs based on their competencies and
    in-sourcing other core tasks as a shared service is
    termed selective sourcing. In this scenario, the management of
    multiple vendor relationships delivering multiple services that
    come together to support an ultimate business service is a key
    driver for continued performance and service level management
    growth in the Enterprise.                   
|
| |  | Automation and Processes  The ascendancy of
    service-centric management as an IT way of life, also demands
    higher levels of automation and shared process adoption from IT
    management products and technologies. Enterprise customers
    expect higher embedded intelligence and analytics within their
    management tools that can aid them in proactively identifying,
    troubleshooting and resolving problems to support service level
    delivery. Auto discovery driven service or application to
    infrastructure correlation, change and configuration management
    through a centralized Configuration Management Data Base
    (CMDB), standardized process frameworks like the
    Information Technology Infrastructure Library (ITIL)
    are all gaining market acceptance as the means to make
    Service-centric IT management a reality.                                                                                                                                                                                                                       








|    |                         
|--- | ------------------------
|4.5 | THE INFOVISTA DIFFERENCE



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Combined Real-Time and Historical Analysis: Our software
    can run continuously as an early warning system to identify and
    report on IT infrastructure performance on a real-time basis and
    also perform historical reporting to identify long-term trends.
    Our software computes complex algorithms and distributes the
    resulting reports and notifications in real-time. Our real-time
    reporting feature can trigger alarms based on exceeding static
    levels, or dynamically, when departing substantially from past
    performance. This allows customers to proactively detect
    degradations in network performance and accelerate problem
    resolution workflow. They can drill down from aggregated
    information into real-time, atomic level data and correct
    network and server problems before end-user productivity is
    affected. Our historical reporting capabilities also facilitate
    infrastructure capacity planning and trend analysis and provide
    input to permit managers to set and enforce IT policy;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Powerful Visualization: Companies in our target market
    segments, especially service providers, require the ability to
    customize the presentation and reporting of network performance
    and management data based on their customer requirements. Our
    software provides an interactive web portal that enables
    delivery of highly personalized network performance reports and
    console views. Customers can incorporate multiple display
    components including reports, service level notifications,
    real-time graphs and links to web sites all in a single pane of
    glass. Our web portal can be customized and configured to meet
    corporate standards, support customer-branding requirements and
    address the needs of individual users and groups of users.
    Viewing data in a business context is also important to our
    customers. Our software can import data from business systems
    and applications and chart that data alongside IT performance
    data, on a single report, allowing correlation of business
    metrics to IT performance. In addition, our software can apply
    multiple business properties to any IT resource so that sorting
    and categorizing of IT resources can be automatically performed.
    When IT-related problems occur, help desk or operations
    personnel can navigate through notifications within
    business-contextual groupings, revealing which locations, groups
    of users, business units or services are affected by IT
    performance problems, determining which problems to address
    first;
|
| |  | Object-Based Model: The object-based capability of our
    software provides the ability to model changes and additions in
    the monitored environment dynamically without requiring changes
    in the underlying code. New equipment and metrics requirements
    can therefore be rapidly supported within hours or days. This
    allows users to easily extend performance monitoring coverage to
    new services and infrastructure and manage growth. Our software
    processes the data it receives from various sources, performs
    real time data calculations and stores the analyzed data in an
    object-oriented database. By using object-oriented techniques,
    the formulas and calculated data values are treated as reusable
    objects. Where multiple reports rely on the same data, redundant
    processing is avoided resulting in the fast delivery of real
    time information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Flexible and Adaptive: Our software collects data from
    any source in a multi-vendor, multi-technology environment. Our
    software can be quickly tailored on-site for each clients
    IT infrastructure including most standard or proprietary IT
    elements. Since our clients IT infrastructures continue to
    evolve rapidly, our products ability to be customized on
    an on-going basis is a key competitive advantage. Our software
    can modify the appearance and the underlying analysis of any
    report via a graphical user interface. Changes to reports can be
    made and deployed to running production servers, without
    restarting the server or interruption of data collection. The
    changes are retained when new versions of the software are
    installed. In addition, our products easily integrate into most
    software environments as nearly all features of our software can
    be controlled via APIs or command-line language.                                                                                                                                                                                                                
|
| |  | Scalable and Distributed:It is vital that the
    architecture be able to expand rapidly to handle growth in
    current and future service offerings. Our solutions are highly
    scalable in large environments. InfoVista servers monitor a
    large number of IT resources at high-frequency acquisition rates
    while providing real time reporting and real time service level
    violation notifications. InfoVista servers can collect millions
    of data points per server per hour. Using multiple servers, our
    solutions can poll data from a virtually unlimited number of
    devices at very granular intervals. Our distributed architecture
    allows our products to collect and analyze data using multiple
    InfoVista servers at a local level and to transmit processed
    data at a user-defined rate to a global data repository. Our
    distributed architecture enables our products to be deployed
    incrementally over time as our clients IT systems expand
    and to operate on the largest and most complex networks
    worldwide, making our solution ideal for large customers such as
    telecommunications carriers; and                            
|
| |  | Open and Interoperable: Our software utilizes a logically
    distributed architecture at multiple levels (polling,
    computation, storage and reporting) and feature open APIs.
    Our software flexibility allows our customers to integrate our
    products with other solutions such as inventory, provisioning,
    accounting, customer care and supply chain management systems.
    For example, our customers have integrated our products with
    other SLM solutions, such as Smarts InCharge, Micromuse NetCool
    and HP OpenView as well as with network and systems management
    platforms, such as IBM Tivoli and Cisco IP Solution Center. Our
    software can also address standard and company-specific
    protocols, such as Simple Network Management Protocol
    (SNMP), Internet Control Message Protocol
    (ICMP), Cisco NetFlow, Juniper cflowd as well as the
    BMC PEMAPI to natively collect data from Patrol agents. In
    addition, our software can collect provisioning and performance
    data from log files, enterprise management platforms, network
    management systems, databases, third-party systems and
    application management agents.






|    |         
|--- | --------
|4.6 | STRATEGY





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Deliver high-value solutions in line with market needs:
    We have restructured marketing and development organizations to
    better identify market opportunities, delineate and develop new
    product offerings and deliver high-value solutions in faster
    timeframes. In the past year, we have focused on the delivery of
    several well- packaged solutions as described in the product
    section that address network IT Performance Management issues,
    systems and server capacity planning and management, and IP
    telephony service and resource monitoring. These solutions
    enable us to satisfy a large segment of the markets we are
    pursuing with out-of-the-box capabilities covering the majority
    of customer requirements. Our solutions have been well accepted
    by our sales organization and our distribution and alliance
    partners as our solutions provide a faster return on investment
    to our customers. Furthermore they allow us to engage with
    prospects faster, substantiate our value proposition and
    demonstrate the benefits of our solutions effortlessly.
|
| |  | Increase market share among target service providers:
    Telecommunication service providers use our solutions to address
    their need for performance and service level management of IP
    services on top of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | their MPLS networks. Our wide-range business services are
    offered in the form of tiered network services to enterprise
    customers. They require service providers to put in place
    solutions that address layer-2 and layer-3 resource monitoring
    and optimization for their network operation centers, aggregate
    the data necessary for SLA management, and offer visibility and
    reporting into the services they deliver to their enterprise
    customers via customized web portals. Service providers also
    offer self-service troubleshooting capabilities so that
    customers can isolate and identify problems on their own. This
    gives our customers more control to manage an environment that
    they might be otherwise reluctant to leave entirely to the
    purview of their providers and helps increase customer
    satisfaction while lowering the overall support cost for the
    provider. In 2005, we have seen the first movements toward OSS
    tool consolidation in large Tier-1 accounts. We are well
    positioned to benefit from this wave of consolidation that aims
    to reduce operating expenses, and rationalize and optimize the
    tools, processes and resources required to deliver multiple
    service offerings across different technology domains. We intend
    to expand our market share among the major service providers by
    positioning ourselves as the de facto standard in the wireline
    IT Performance Management and service level management markets
    for current and emerging initiatives including IP Telephony and
    triple play services. We believe that our positioning leverages
    our inherent strengths in customer-facing performance and
    service level reporting and offers compelling benefits to
    service providers in terms of differentiation and quality of
    service.
|
| |  | Accelerate the adoption of our solutions by enterprise
    customers: We are working with a select group of leading
    enterprise customers, partners and global system integrators to
    deliver solutions that address the needs of large enterprises
    for managing and monitoring the delivery of IP services and
    support their ongoing consolidation of IT assets and
    optimization across networks, systems and servers. Our solutions
    are specifically tailored to the enterprise market where
    out-of-the-box capabilities, automation, ease-of-use and low
    cost of ownership are essential. New functionalities are
    available to provide the appropriate insights to determine areas
    of service improvement, resource and service usage, and asset
    optimization while assessing acceptable service continuity risk.
    Throughout the past twelve months we have been engaged with key
    partners and customers to discuss their priorities and issues in
    enterprise IT infrastructure management and to identify areas of
    collaboration and new product offerings. A key driver for our
    business remains centered on the criticality of network
    operations where IP communication convergence occurs through the
    adoption of an IP backbone that provides data, voice and video
    services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Pursue opportunities with outsourcers and Managed Service
    Providers: In 2005, we have strengthened our presence with
    global MSPs and outsourcers as the preferred performance and
    service level management software vendor for their existing and
    next-generation communication service portfolio. In Dallas,
    Texas alone, four of the largest worldwide outsourcers have
    chosen us as their preferred partner to deliver network and IP
    services. We plan to pursue further the managed service segment
    of the market on a worldwide basis and leverage the experience
    and expertise that we have developed over the past year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Establish a sound go-to market strategy: We have put in
    place a direct-indirect go-to market strategy that aims to
    deliver the most outstanding experience for our customers. The
    first aspect of our strategy relies on direct contact through a
    very selective key account program, supported primarily by
    dedicated account managers in collaboration with a select group
    of partners for the implementation of our solutions. Our key
    accounts comprise a majority of Tier-1 service providers and
    very large enterprises, primarily in the financial sector.
    Second, we are expanding our reach into other customer tiers,
    segments and geographies through reseller partners. We have
    invested in new channel programs, tools and new resources to
    expand our indirect business and make our partners more
    successful and self-sufficient in building regional franchises
    capable of generating incremental revenues. Finally, we have
    intensified our strategic alliance initiatives with global
    system integrators, network equipment manufacturers and other
    independent software vendors, resulting in the selection of us
    as the preferred IT Performance Management partner by a number
    of them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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|    |                       
|--- | ----------------------
|4.7 | SOLUTIONS AND PRODUCTS







| |          
| | ---------
| | Solutions

VistaInsight for Networks (for Enterprises)


VistaInsight for Networks (for Service Providers)


VistaInsight for IP Telephony


VistaInsight for Servers


VistaTroubleshooter




| |                               
| | ------------------------------
| | Architecture and Core Products



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VistaFoundation


InfoVista Server


VistaPortal




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Service Level Navigatordelivers service-centric
    event views by displaying real-time, performance-based service
    level notifications from across the infrastructure, within
    logical views that are intuitively organized and grouped by
    business-oriented function. This enables users to navigate
    through notifications of performance problems to understand the
    impact of specific problem elements, their location, which users
    they affect and whether critical business operations are
    involved. Users can also view service level notifications by
    severity, type, service and other properties. Service
    Level Navigator is now fully integrated into the main
    VistaPortal application.
|
| |  | VistaPortal Standard Editionthe full Java Servlet-based
    portal application that allows viewing of all our real-time and
    historical reports from an individual InfoVista Server using a
    web-browser, is now fully integrated into VistaPortal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

VistaMart


VistaDiscovery


VistaBridge


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VistaCockpit


VistaProvisioner




| |                              
| | -----------------------------
| | Supporting or Add-on Products



VistaWatch


VistaLinks


VistaLink for Alcatel 5620 Service Aware Manager (SAM)


VistaLink for Cisco IP Solution Center


VistaLink for NetFlow
Tracker tm tm tm


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tm tm


VistaLink for Smarts InCharge


Vista Plug-ins


Vista Plug-in for Network Flow Analysis


Vista Plug-in for IPT Cisco


Vista Plug-in for Cisco Call Manager


Vista Plug-in for Unified Messaging


Vista Plug-in for Exchange


Vista Plug-in for Active Directory


Vista Plug-in for Windows Server Performance Monitoring


VistaAPI







|    |                        
|--- | -----------------------
|4.8 | PRODUCTS IN DEVELOPMENT



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|    |         
|--- | --------
|4.9 | SERVICES







| |   |                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Consulting: We have dedicated teams of expert engineers
    who offer consulting services for specified project management,
    helping our clients from the design phase through to
    customization, installation and deployment of our solutions.
    These teams consist of project managers, architects and
    consultants.

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | Project implementations are generally performed on a time and
    materials basis. Project implementation range from a few weeks
    to several months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Solution Support: Our range of solution support contracts
    includes the standard offering of eight hours per day five days
    per week, the support of twenty-four hours per day seven days
    per week through our Mission Critical Program (MCP),
    and configuration and implementation analysis through our
    Auditing on Site Program (AOP). AOP consists of
    regular on-site visits to analyze the performance of the client
    production site. We also offer Developer Support to our partners
    and clients who wish to develop their own report libraries for
    internal or external purposes. The revenue generated by our
    Solution Support contracts is recurring as most of our Support
    contracts are renewed on an annual basis. Lastly, solution
    support services also include the availability of upgrades to
    customers during the term of their agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Education & Certification: We offer regular
    training classes in Europe (Paris, London, and Munich), the
    U.S. (Washington and Tampa) and the Asia-Pacific region
    (Singapore), as well as private on-site customer training.
    Candidates who complete the training classes and pass the
    necessary examinations may obtain credentials as an InfoVista
    Certified Administrator (IVCA), InfoVista Certified
    Developer (IVCD) or InfoVista Certified Expert
    (IVCE). Education is a key component in optimizing
    the investment in our solutions. Our training is designed to
    transfer comprehensive technical knowledge of our products to
    the clients engineers, integrators, architects and
    administrators. Each course provides a thorough explanation and
    practical hands-on approach so that the participant has the
    ability to optimize the flexible and open features of the
    product. Instructor-led courses are delivered within a
    lecture/laboratory environment. This allows participants to
    apply concepts presented during the lecture to a simulated
    production environment to reinforce the subject matter and
    promote a familiarity with our service level and IT Performance
    Management solutions. During the past year on-site training at
    the customer site has become increasingly popular, and any
    course or combination of courses can be delivered in this
    manner. We are highly committed to training excellence and
    customer success with our products.
|
| |  | Customer Support Partner Program: As an extension to our
    service offering we provide to our clients, the customer support
    partner program is designed to assist our partners in achieving
    service and support goals. It offers our clients the security
    and competitive advantage of a fully supported InfoVista
    solution through InfoVista partners. Our channel partners are
    selected via strict technical expertise criteria. The customer
    support partner program enables our certified partners to
    deliver our entire range of services worldwide. To be first
    level support certified our partners must meet specific
    requirements related to their own support infrastructure and
    their staffs qualifications, expertise and skills. Yearly
    audits ensure that our partners have dedicated personnel who
    fully understand our products and employ a minimum number of
    engineers that have been trained and individually certified. We
    require that our partners document their internal procedures
    including clear communication channels to ensure they are
    providing continuous quality support through expertise, ease of
    access, and responsiveness to best meet our joint
    customers needs. In return, we offer them a full range of
    tools, programs and services including:                                                                                                                                                                                                      
|
| |  | critical problem escalation;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | access to an on line ticketing system;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | troubleshooting guides; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | access to a complete technical information library through a
    partner extranet                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

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|     |                                                         
|---- | --------------------------------------------------------
|4.10 | GEOGRAPHICAL BREAKDOWN OF REVENUES AND OPERATING RESULTS



|             |                   |                     |        |       |      |   |        |       |  |   |        |       | 
|------------ | ----------------- | ------------------- | ------ | ----- | ---- | - | ------ | ----- |  | - | ------ | ----- | 
|             |                   | Year Ended June 30, |       
|             |                   |                     |       
|             |                   | 2005                |        |       | 2004 |   |        | 2003  | 
|             |                   |                     |        |       |      |   |        |       | 
|             |                   | (In thousands )     |       
|Europe       |                   |                     |        |       |      |   |        |       |  |   |        |      
|Of which     |                   |                    | 16,550 |       |      |  | 13,818 |       |  |  | 12,584 |      
|             | License revenues  |                     |        | 8,554 |      |   |        | 6,886 |  |   |        | 5,229 | 
|             | Services revenues |                     |        | 7,996 |      |   |        | 6,932 |  |   |        | 7,355 | 
|Americas     |                   |                     |        |       |      |   |        |       |  |   |        |      
|Of which     |                   |                     | 15,214 |       |      |   | 12,063 |       |  |   | 9,603  |      
|             | License revenues  |                     |        | 8,874 |      |   |        | 7,288 |  |   |        | 5,655 | 
|             | Services revenues |                     |        | 6,340 |      |   |        | 4,775 |  |   |        | 3,948 | 
|Asia-Pacific |                   |                     |        |       |      |   |        |       |  |   |        |      
|Of which     |                   |                     | 2,577  |       |      |   | 2,806  |       |  |   | 3,335  |      
|             | License revenues  |                     |        | 1,621 |      |   |        | 1,902 |  |   |        | 2,362 | 
|             | Services revenues |                     |        | 956   |      |   |        | 904   |  |   |        | 973   | 
|             |                   |                     |        |       |      |   |        |       | 
|Total        |                   |                    | 34,341 |       |      |  | 28,687 |       |  |  | 25,522 |      
|             |                   |                     |        |       |      |   |        |       | 



|             |                |                     |        |       |      |   |        |       |  |   |        |       | 
|------------ | -------------- | ------------------- | ------ | ----- | ---- | - | ------ | ----- |  | - | ------ | ----- | 
|             |                | Year Ended June 30, |       
|             |                |                     |       
|             |                | 2005                |        |       | 2004 |   |        | 2003  | 
|             |                |                     |        |       |      |   |        |       | 
|             |                | (In thousands)      |       
|Europe       |                |                     |        |       |      |   |        |       |  |   |        |      
|Of which     |                |                    | 16,550 |       |      |  | 13,818 |       |  |  | 12,584 |      
|             | France         |                     |        | 4,966 |      |   |        | 3,666 |  |   |        | 3,645 | 
|             | Germany        |                     |        | 3,085 |      |   |        | 3,035 |  |   |        | 2,631 | 
|             | United Kingdom |                     |        | 5,518 |      |   |        | 4,021 |  |   |        | 3,827 | 
|             | Belgium        |                     |        | 308   |      |   |        | 740   |  |   |        | 822   | 
|             | Spain          |                     |        | 2,673 |      |   |        | 2,356 |  |   |        | 1,659 | 
|Americas     |                |                     | 15,214 |       |      |   | 12,063 |       |  |   | 9,603  |      
|Asia-Pacific |                |                     | 2,577  |       |      |   | 2,806  |       |  |   | 3,335  |      
|             |                |                     |        |       |      |   |        |       | 
|Total        |                |                    | 34,341 |       |      |  | 28,687 |       |  |  | 25,522 |      
|             |                |                     |        |       |      |   |        |       | 

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|             |                |                     |        |         |      |   |        |         |   |   |         |         |  
|------------ | -------------- | ------------------- | ------ | ------- | ---- | - | ------ | ------- | - | - | ------- | ------- | -
|             |                | Year Ended June 30, |       
|             |                |                     |       
|             |                | 2005                |        |         | 2004 |   |        | 2003    |  
|             |                |                     |        |         |      |   |        |         |  
|             |                | (In thousands)      |       
|Europe       |                |                     |        |         |      |   |        |         |   |   |         |        
|Of which     |                |                    | (3,097 | )       |      |  | (5,709 | )       |   |  | (12,150 | )      
|             | France         |                     |        | (10,268 | )    |   |        | (11,616 | ) |   |         | (15,428 | )
|             | Germany        |                     |        | 1,422   |      |   |        | 483     |   |   |         | 109     |  
|             | United Kingdom |                     |        | 3,743   |      |   |        | 2,768   |   |   |         | 1,709   |  
|             | Belgium        |                     |        | 23      |      |   |        | 772     |   |   |         | 475     |  
|             | Spain          |                     |        | 1,983   |      |   |        | 1,884   |   |   |         | 985     |  
|Americas     |                |                     | 2,665  |         |      |   | (1,962 | )       |   |   | (820    | )      
|Asia-Pacific |                |                     | 216    |         |      |   | 1,199  |         |   |   | 489     |        
|             |                |                     |        |         |      |   |        |         |  
|Total        |                |                    | (216   | )       |      |  | (6,472 | )       |   |  | (12,481 | )      
|             |                |                     |        |         |      |   |        |         |  






|     |          
|---- | ---------
|4.11 | END-USERS





|                    |  |  |       |  |  |                   |  |  |       |  |  |                   |  |  |       | 
|------------------- |  |  | ----- |  |  | ----------------- |  |  | ----- |  |  | ----------------- |  |  | ----- | 
|Year Ended June 30, | 
|                    | 
|2005                |  |  | 2004  |  |  | 2003              | 
|                    |  |  |       |  |  |                   | 
|Client
    B(2)   |  |  | 7.94% |  |  | DISA              |  |  | 8.04% |  |  | Cable & Wireless  |  |  | 6.81% | 
|Client
    C(3)   |  |  | 5.45% |  |  | Telefonica        |  |  | 6.50% |  |  | Telefonica        |  |  | 4.67% | 
|Cable & Wireless    |  |  | 4.77% |  |  | Client
    B(2) |  |  | 4.46% |  |  | Client
    A(1) |  |  | 4.37% | 






|    |                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For reasons of confidentiality, we cannot name our third largest
    end-user for the year ended June 30, 2003, which is
    therefore identified as Client A                                                          
|   
|(2) | For reasons of confidentiality, we cannot name our largest
    end-user for the year ended June 30, 2005 and third largest
    end-user for the year ended June 30, 2004, which is
    therefore identified as Client B
|   
|(3) | For reasons of confidentiality, we cannot name our second
    largest client for the year ended June 30, 2004, which is
    therefore identified as Client C                                                           



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                                                                                                                                                              |  |                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Telecommunications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Financial                                                                                                                                                                    |  | Outsourcers and                                                                                                                                                     |  | Other                                                                                                                                                                                                                                                                                        
|Companies and ISPs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Institutions                                                                                                                                                                 |  | Consulting Firms                                                                                                                                                    |  | Enterprises                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                                                                                                                                                              |  |                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                              
|AAPT
    Accenture Atis
    Aena
    AUNA
    Bell Canada
    BellSouth
    Bouygues Telecom
    British Telecom
    Cable & Wireless
    Cingular Wireless
    Chung Hwa Telecom
    Colt
    Com Hem
    Czech Telecom
    Deutsche Telekom
    EasyNet
    France Télécom
    Globe Telecom
    Golden Lines
    H3G
    Iberbanda
    infonet
    Intechnology plc
    Interoute
    KVH
    MCI
    Mediacom MCC
    Nextel Communications
    Nippon Telegraph & Telephone
    Portus
    Rostelecom
    SingTel
    T-COM (T-Data, Deutsche Telekom)
    Telecom Asia
    Telecom Malaysia
    Telefonica
    Telewest
    Telkomsel
    Tiscali
    True Corporation
    Time Warner
    Telmex
    VeriSign
    Verizon
    Videotron
    VIPNet
    Wild Blue Communication
    Your Communications |  | ADP
    AXA
    Banque de France
    Banque Populaire
    BNP Paribas
    Crédit Agricole-Indosuez
    Lehman Brothers
    Royal Bank of Scotland
    Wachovia
    Wellpoint |  | Callahan
    Cap Gemini Telecom
    Glidepath
    Hitachi Information Systems
    Info AG/Satisfactory
    Siemens Business Services
    Spherion
    T/Systems ITS |  | AGIS Allianz Dresdner IS
    Acasia
    BASF
    British Airways
    Czech Railway
    European Medical Agency
    Hoffmann-La Roche
    Nielsen Media Research
    Norfolk Southern
    Renault
    Royal Canadian Mounted Police
    Sanofi Aventis
    Shell
    Thales
    Zagreb Airport

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|     |                    
|---- | -------------------
|4.12 | SALES AND MARKETING





| |      
| | -----
| | Sales





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Direct sales: Our direct sales force is comprised of
    full-time sales professionals and applications engineers who
    primarily target the telecommunications industry and large
    enterprises, along with providing support to our indirect sales
    channels; and                                                                                                                                                                                                                                                                                                 
|
| |  | Indirect sales: We have contractual relationships with
    many types of market participants that range from authorized
    reselling agreements to product OEM contracts. We offer our
    resellers sales and technical training and support to help them
    market their complete technology solutions. Many of these
    agreements permit the reseller or integrator to purchase our
    software at discounts from our list prices. We also have
    co-selling arrangements in which we pay third parties for their
    assistance in a direct sale to an end user.





| |          
| | ---------
| | Marketing








|     |                        
|---- | -----------------------
|4.13 | STRATEGIC RELATIONSHIPS









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|     |            
|---- | -----------
|4.14 | COMPETITION







45



---



##### Table of Contents















| |   |                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | suppliers of network and system management products including
    Computer Associates, Compuware, Hewlett Packard, IBM Tivoli,
    Microsoft, and BMC;
|
| |  | SLM software providers active in adjacent segments, such as
    event management and policy management;                                               
|
| |  | application management software vendors who are expanding
    footprint into IT infrastructure performance reporting;                                 
|
| |  | large software and hardware suppliers;                                                                                                                
|
| |  | systems integrators who generally provide consulting services to
    develop client specific applications;                                            
|
| |  | service suppliers who act as outsourcers of SLM services;                                                                                             
|
| |  | home grown management software that is built specifically to
    meet unique needs and processes of a customers
    infrastructure and services; and 
|
| |  | our clients internal technical organizations that produce
    proprietary software addressing their specific needs.                                  



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|     |                      
|---- | ---------------------
|4.15 | INTELLECTUAL PROPERTY



Patents.


Trademarks.


Agence pour la
Protection des Programmes,








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|     |          
|---- | ---------
|4.16 | INSURANCE










 









|     |               
|---- | --------------
|4.17 | COMMUNICATIONS

www.infovista.com







|     |                                                                         
|---- | ------------------------------------------------------------------------
|4.18 | PERSONNEL  See Item 6. Directors,
    Senior Management and Employees






|     |                         
|---- | ------------------------
|4.19 | RESEARCH AND DEVELOPMENT

  







|     |           
|---- | ----------
|4.20 | FACILITIES



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|     |                  
|---- | -----------------
|4.21 | LEGAL PROCEEDINGS












|     |            
|---- | -----------
|4.22 | SEASONALITY



|                           |  |                     |        |  |      |   |        |      |  |   |        | 
|-------------------------- |  | ------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                           |  | Year Ended June 30, |       
|                           |  |                     |       
|                           |  | 2005                |        |  | 2004 |   |        | 2003 | 
|                           |  |                     |        |  |      |   |        |      | 
|                           |  | (In thousands)      |       
|Quarter ended September 30 |  |                    | 7,625  |  |      |  | 5,858  |      |  |  | 6,507  | 
|Quarter ended December 31  |  |                     | 8,622  |  |      |   | 6,898  |      |  |   | 6,595  | 
|Quarter ended March 31     |  |                     | 8,523  |  |      |   | 7,886  |      |  |   | 6,080  | 
|Quarter ended June 30      |  |                     | 9,571  |  |      |   | 8,045  |      |  |   | 6,340  | 
|                           |  |                     |        |  |      |   |        |      | 
|Total                      |  |                    | 34,341 |  |      |  | 28,687 |      |  |  | 25,522 | 
|                           |  |                     |        |  |      |   |        |      | 








|     |              
|---- | -------------
|4.23 | RAW MATERIALS








|     |                                          
|---- | -----------------------------------------
|4.24 | MATERIAL EFFECT OF GOVERNMENT REGULATIONS








|     |                                   
|---- | ----------------------------------
|4.25 | INDUSTRIAL AND ENVIRONMENTAL RISKS










|        |                                             
|------- | --------------------------------------------
|ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS



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|    |         
|--- | --------
|5.1 | OVERVIEW








|    |                    
|--- | -------------------
|5.2 | RECENT DEVELOPMENTS






|      |                    
|----- | -------------------
|5.2.1 | Stock option grants





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | stock options giving the right to subscribe for
    7,000 shares were granted under the 2001 Plan. Each option
    will give the right to subscribe for new shares at the price of
    5.11 per
    share; and                                                                                                                                                                                                                                                                                                        
|
| |  | stock options giving the right to
    purchase 205,000 shares of treasury stock were granted
    under the 2004 (40,000 options) and 2005 (165,000 options)
    Plans. The terms and conditions of the 2005 Plan are similar to
    those of the 2004 Plan, except for the vesting period applicable
    to French employees, for which the options granted shall vest
    four years after the granting date. Each option will give the
    right to purchase existing shares at the price of
    5.11 per
    share.






|      |                                                          
|----- | ---------------------------------------------------------
|5.2.2 | Third party software agreement with Progress
    Software








|    |         
|--- | --------
|5.3 | REVENUES







50



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##### Table of Contents










|    |                 
|--- | ----------------
|5.4 | COST OF REVENUES












|    |                   
|--- | ------------------
|5.5 | OPERATING EXPENSES











|    |                             
|--- | ----------------------------
|5.6 | PERIOD-TO-PERIOD VARIABILITY



51



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|    |                      
|--- | ---------------------
|5.7 | RESULTS OF OPERATIONS



|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |   |         |        |   |  |       |       |  
|--------------------------------- | --------------------------------------- | ------------------- | ------ | ------ | ---- |  | ----- | --------- | - | - | ------ | ------ | - | --------- | ----- | ----- | - | - | ------- | ------ | - |  | ----- | ----- | -
|                                  |                                         | Year ended June 30, |       
|                                  |                                         |                     |       
|                                  |                                         | 2005                |        |        | 2004 |  |       | 2003      |  
|                                  |                                         |                     |        |        |      |  |       |           |  
|                                  |                                         | In                  |        |        |      |  | In    |           |   |   |        | In     |   |           |      
|                                  |                                         | thousands           |        |        | %    |  |       | thousands |   |   | %      |        |   | thousands |       |       | % |  
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Revenues                          |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |   |         |        |   |  |       |      
|                                  | License revenues                        |                     |       | 19,049 |      |  |       | 55.5      |   |   |       | 16,076 |   |           |       | 56.0  |   |   |        | 13,246 |   |  |       | 51.9  |  
|                                  | Service revenues                        |                     |        | 15,292 |      |  |       | 45.5      |   |   |        | 12,611 |   |           |       | 44.0  |   |   |         | 12,276 |   |  |       | 48.1  |  
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Total revenues                    |                                         |                     | 34,341 |        |      |  | 100.0 |           |   |   | 28,687 |        |   |           | 100.0 |       |   |   | 25,522  |        |   |  | 100.0 |      
|Cost of revenues                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |   |         |        |   |  |       |      
|                                  | Cost of licenses                        |                     |        | (857   | )    |  |       | (2.5      | ) |   |        | (681   | ) |           |       | (2.4  | ) |   |         | (914   | ) |  |       | (3.6  | )
|                                  | Cost of services                        |                     |        | (5,917 | )    |  |       | (17.2     | ) |   |        | (5,722 | ) |           |       | (19.9 | ) |   |         | (6,215 | ) |  |       | (24.4 | )
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Total cost of revenues            |                                         |                     | (6,774 | )      |      |  | (19.7 | )         |   |   | (6,403 | )      |   |           | (22.3 | )     |   |   | (7,129  | )      |   |  | (27.9 | )    
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Gross profit                      |                                         |                     | 27,567 |        |      |  | 80.3  |           |   |   | 22,284 |        |   |           | 77.7  |       |   |   | 18,393  |        |   |  | 72.1  |      
|Operating expenses                |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |   |         |        |   |  |       |      
|                                  | Sales and marketing expenses            |                     |        | 15,396 |      |  |       | 44.8      |   |   |        | 14,802 |   |           |       | 51.6  |   |   |         | 16,513 |   |  |       | 64.7  |  
|                                  | Research and development expenses       |                     |        | 6,651  |      |  |       | 19.4      |   |   |        | 6,081  |   |           |       | 21.2  |   |   |         | 7,036  |   |  |       | 27.6  |  
|                                  | General and administrative expenses     |                     |        | 5,574  |      |  |       | 16.2      |   |   |        | 4,346  |   |           |       | 15.1  |   |   |         | 5,167  |   |  |       | 20.2  |  
|                                  | Stock compensation expense              |                     |        |       |      |  |       |           |   |   |        | 44     |   |           |       | 0.2   |   |   |         | 38     |   |  |       | 0.1   |  
|                                  | Restructuring costs                     |                     |        |       |      |  |       |           |   |   |        | 2,495  |   |           |       | 8.7   |   |   |         | 1,590  |   |  |       | 6.2   |  
|                                  | Impairment of fixed assets              |                     |        | 4      |      |  |       | 0.0       |   |   |        | 608    |   |           |       | 2.1   |   |   |         | 150    |   |  |       | 0.6   |  
|                                  | Amortization of acquired intangibles    |                     |        | 158    |      |  |       | 0.5       |   |   |        | 380    |   |           |       | 1.3   |   |   |         | 380    |   |  |       | 1.5   |  
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Total operating expenses          |                                         |                     | 27,783 |        |      |  | 80.9  |           |   |   | 28,756 |        |   |           | 100.2 |       |   |   | 30,874  |        |   |  | 121.0 |      
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Operating loss                    |                                         |                     | (216   | )      |      |  | (0.6  | )         |   |   | (6,472 | )      |   |           | (22.6 | )     |   |   | (12,481 | )      |   |  | (48.9 | )    
|Other income (expense):           |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |   |         |        |   |  |       |      
|                                  | Realized gains on marketable securities |                     |        | 440    |      |  |       | 1.3       |   |   |        | 622    |   |           |       | 2.2   |   |   |         | 1,218  |   |  |       | 4.8   |  
|                                  | Net foreign currency transaction losses |                     |        | (46    | )    |  |       | (0.1      | ) |   |        | (109   | ) |           |       | (0.4  | ) |   |         | (231   | ) |  |       | (0.9  | )
|                                  | Other (expense) income                  |                     |        | (18    | )    |  |       | (0.1      | ) |   |        | 9      |   |           |       | 0.0   |   |   |         | 5      |   |  |       | 0.0   |  
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Income (Loss) before income taxes |                                         |                     | 160    |        |      |  | 0.5   |           |   |   | (5,950 | )      |   |           | (20.7 | )     |   |   | (11,489 | )      |   |  | (45.0 | )    
|                                  | Income tax expense                      |                     |        | (36    | )    |  |       | (0.1      | ) |   |        | (254   | ) |           |       | (0.9  | ) |   |         | (36    | ) |  |       | (0.1  | )
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  
|Net income (loss)                 |                                         |                    | 124    |        |      |  | 0.4   |           |   |  | (6,204 | )      |   |           | (21.6 | )     |   |  | (11,525 | )      |   |  | (45.2 | )    
|                                  |                                         |                     |        |        |      |  |       |           |   |   |        |        |   |           |       |       |   |  

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|                     |                                                 |                     |  |      |      |  |  |      |  |  |  |      | 
|-------------------- | ----------------------------------------------- | ------------------- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                     |                                                 | Year Ended June 30, | 
|                     |                                                 |                     | 
|                     |                                                 | 2005                |  |      | 2004 |  |  | 2003 | 
|                     |                                                 |                     |  |      |      |  |  |      | 
|                     |                                                 | All amounts in      | 
|                     |                                                 | percentages         | 
|License gross margin |                                                 |                     |  |      |      |  |  |      |  |  |  |     
|                     | (License gross profit as % of license revenues) |                     |  | 95.5 |      |  |  | 95.8 |  |  |  | 93.1 | 
|Service gross margin |                                                 |                     |  |      |      |  |  |      |  |  |  |     
|                     | (Service gross profit as % of service revenues) |                     |  | 61.1 |      |  |  | 54.6 |  |  |  | 49.4 | 



| |                                         
| | ----------------------------------------
| | Years Ended June 30, 2005, 2004 and 2003

    




| |               
| | --------------
| | Total Revenues

   


  





53



---



##### Table of Contents







| |                 
| | ----------------
| | License Revenues

  









| |                 
| | ----------------
| | Service Revenues

  









| |                 
| | ----------------
| | Cost of Revenues

      


54



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| |                             
| | ----------------------------
| | Sales and Marketing Expenses

       




| |                                  
| | ---------------------------------
| | Research and Development Expenses

    




| |                                    
| | -----------------------------------
| | General and Administrative Expenses

   




| |                      
| | ---------------------
| | Restructuring Charges

 




| |                           
| | --------------------------
| | Impairment of Fixed Assets

  


55



---



##### Table of Contents







| |                                           
| | ------------------------------------------
| | Amortization of Acquired Intangible Assets

  




| |                           
| | --------------------------
| | Stock Compensation Expense

    




| |             
| | ------------
| | Other Income

  




| |                   
| | ------------------
| | Income Tax Expense

   




| |                                    
| | -----------------------------------
| | Impact of Changes in Exchange Rates

 


  


56



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##### Table of Contents







| |                    
| | -------------------
| | Impact of Inflation








|    |                                
|--- | -------------------------------
|5.8 | LIQUIDITY AND CAPITAL RESOURCES

           


                 


 


57



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           


         


     


  









|    |                             
|--- | ----------------------------
|5.9 | CRITICAL ACCOUNTING POLICIES





| |                    
| | -------------------
| | Revenue recognition



58



---



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| |                  
| | -----------------
| | Trade receivables



59



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| |                             
| | ----------------------------
| | Foreign currency translation









 




| |                                
| | -------------------------------
| | Impairment of Long Lived Assets





60



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| |             
| | ------------
| | Income taxes
















|     |                                                                       
|---- | ----------------------------------------------------------------------
|5.10 | TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS
    (IFRS)








|     |                           
|---- | --------------------------
|5.11 | FORWARD LOOKING STATEMENTS





| |   |                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the risks and uncertainties encountered by emerging companies in
    rapidly evolving markets, particularly companies in the
    competitive software industry;
|
| |  | the assumption that market acceptance of our products will
    increase or remain at current levels;                                                           
|
| |  | the assumption that we shall implement and continue to develop
    fruitful strategic partnerships;                                                            

61



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| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the risk that the telecommunications market will continue to be
    unstable;                                                                           
|
| |  | the assumption that we will continue to obtain third-party
    software licenses on commercially reasonable terms;                                      
|
| |  | the risk that we may fail to develop new technologies, or to
    develop and deploy new product releases or enhanced products on
    a timely basis; and
|
| |  | the risk that we may fail to adequately protect our intellectual
    property or trademarks                                                             





| |                                                              
| | -------------------------------------------------------------
| | Forward Looking Discussion of Available Trend
    Information



   









|     |                        
|---- | -----------------------
|5.12 | CONTRACTUAL OBLIGATIONS



|                                  |  |                        |       |           |        |   |        |       |  |   |              |           |  |         |   |  |  |   |   | 
|--------------------------------- |  | ---------------------- | ----- | --------- | ------ | - | ------ | ----- |  | - | ------------ | --------- |  | ------- | - |  |  | - | - | 
|                                  |  | Payments Due by Period |      
|                                  |  |                        |      
|                                  |  |                        |       | Less than |        |   | 1 to 3 |       |  |   |              | More than | 
|                                  |  | Total                  |       |           | 1 Year |   |        | Years |  |   | 3 to 5 Years |           |  | 5 Years |  
|                                  |  |                        |       |           |        |   |        |       |  |   |              |           |  |         |  
|                                  |  | (In thousands)         |      
|Long-term debt obligations        |  |                       |      |           |        |  |       |       |  |  |             |           |  |        |  |  |  |  |  | 
|Capital finance lease obligations |  |                        |      |           |        |   |       |       |  |   |             |           |  |         |  |  |  |   |  | 
|Operating lease obligations       |  |                        | 4,311 |           |        |   | 1,381  |       |  |   | 2,925        |           |  |         | 5 |  |  |   |  | 
|Purchase obligations              |  |                        | 916   |           |        |   | 916    |       |  |   |             |           |  |         |  |  |  |   |  | 
|                                  |  |                        |       |           |        |   |        |       |  |   |              |           |  |         |  
|                                  |  |                       | 5,227 |           |        |  | 2,297  |       |  |  | 2,925        |           |  |        | 5 |  |  |  |  | 
|                                  |  |                        |       |           |        |   |        |       |  |   |              |           |  |         |  








|        |                                           
|------- | ------------------------------------------
|ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

société
anonyme, (Président du Conseil
dadministration) (statuts)


62



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Directeur Général statuts







|    |                   
|--- | ------------------
|6.1 | BOARD OF DIRECTORS

Rapport Bouton statuts statuts








jetons de présence jetons
de présence


jetons de présence


63



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statuts (Directeurs
Généraux Délégués) Directeurs Généraux
Délégués statuts, Directeur Général Délégué Directeur Général
Délégué Directeur Général Délégué Directeur Général Délégué


statuts, statuts, statuts,




statuts,


Code de commerce (Directeur Général Directeurs Généraux
Délégués)


Code de commerce Directeur
Général, Directeurs
Généraux Délégués,


64



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Directeur Généraux Délégués,


sociétés anonymes, statuts


statuts th Directeur Général Directeur
Général Délégué th


65



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|                            |  |               |      |      |         |  |               |           |  |                       |                   |                |  |                                                                                                         |  |                                                                |                 |                                                                                                                                                       |  |                                                         |  |                                                                                                     |  | 
|--------------------------- |  | ------------- | ---- | ---- | ------- |  | ------------- | --------- |  | --------------------- | ----------------- | -------------- |  | ------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------- | --------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------- |  | 
|                            |  |               |      |      |         |  |               |           |  | Other Mandates        |                   |                | 
|                            |  |               |      | Term |         |  | Current Title |           |  |                       |                   | Expired During |  |                                                                                                         | 
|Name                        |  | Date of First |      |      | Expiry  |  |               | with      |  |                       | Main Occupation   |                |  | the Last                                                                                                |  |                                                                | Other Positions |                                                                                                                                                      
|(Year of birth)             |  | Appointment   |      |      | Date(1) |  |               | InfoVista |  |                       | Outside InfoVista |                |  | Five Years                                                                                              |  |                                                                | or Employment   |                                                                                                                                                      
|                            |  |               |      |      |         |  |               |           |  |                       |                   |                |  |                                                                                                         |  |                                                                |                 |                                                                                                                                                      
|Alain Tingaud (1954)        |  |               | 1995 |      |         |  | Dec. 2005     |           |  | Chairman and Director |                   |                |  |                                                                                                         |  | Director of MediappsS.A., Château- On-LineS.A., Clariteam S.A. |                 | Director of InfoVista Corporation, UK Ltd and InfoVista(Asia-Pacific) Pte LtdDirector of SUA-LG SA, RCME SA, MANEOS ltd, RealViz S.A., Ecensity Corp.
|Jean-Paul Bernardini (1962) |  |               | 1998 |      |         |  | Dec. 2005     |           |  |                       | Director          |                |  | Partner, Natexis Investissement                                                                         |  |                                                                |                 |                                                                                                                                                       |  | Chairman of Financière CBM                             
|Guy Dubois (1954)           |  |               | 2003 |      |         |  | Dec. 2005     |           |  |                       | Director          |                |  | President and CEO at Cramer                                                                             |  |                                                                |                 |                                                                                                                                                       |  |                                                         |  |                                                                                                    
|Herbert May (1949)          |  |               | 2000 |      |         |  | Dec. 2005     |           |  |                       | Director          |                |  | Management Consultant in Strategy, Marketing, Multimedia Telecommunications, and Information Technology |  |                                                                |                 |                                                                                                                                                       |  | Director of In-Fusio, Versant, Gate5, Netlinx and o3sis
|Philippe Ozanian (1963)     |  |               | 2004 |      |         |  | Dec. 2005     |           |  |                       | Director and CFO  |                |  |                                                                                                         |  |                                                                |                 |                                                                                                                                                       |  |                                                         |  | Director of InfoVista UK Ltd, InfoVista BNL, InfoVista GmbH, and InfoVista (Asia- Pacific) Pte Ltd.
|Hubert Tardieu (1945)       |  |               | 1998 |      |         |  | Dec. 2005     |           |  |                       | Director          |                |  | Executive Vice- President Consulting & Systems Integration at Atos Origin                               |  |                                                                |                 |                                                                                                                                                       |  |                                                         |  |                                                                                                    
|Gad Tobaly (1963)           |  |               | 2004 |      |         |  | Dec. 2005     |           |  |                       | Director and CEO  |                |  |                                                                                                         |  |                                                                |                 |                                                                                                                                                       |  |                                                         |  |                                                                                                     |  | 
|Philippe Vassor (1953)      |  |               | 2005 | (2)  |         |  | Dec. 2005     |           |  |                       | Director          |                |  | Chairman of Baignas SAS                                                                                 |  | Chairman of the Deloitte Group in France                       |                 | Director of Groupama S.A.                                                                                                                            






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Extension of the terms of office of the directors will be
    proposed during the next general shareholders meeting
    called to approve our financial statements for the year ended
    June 30, 2005.

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|    |                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Mr. Vassor has been appointed by the board of directors on
    July 21, 2005, to replace Peter Waal, who had resigned on
    June 30, 2005. The appointment of Mr. Vassor and the
    renewal of his mandate will be submitted to the approval of the
    shareholders at the annual shareholders meeting to be held
    on December 2005.



| |                              
| | -----------------------------
| | Directors Business Activities

Alain Tingaud




Jean-Paul Bernardini




Guy Dubois




Herbert May




Philippe Ozanian Directeur Général Délégué


Hubert Tardieu




Gad Tobaly (Directeur
Général)


Philippe Vassor




mandataires sociaux


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| |   |                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------
| |  | convicted of fraud in the past five years;                                                                                   
|
| |  | declared bankrupt, had their property impounded or liquidated in
    the past five years; or                                 
|
| |  | the subject of an official accusation and/or penalty delivered
    by legal or regulatory authorities in the past five years.










|    |                   
|--- | ------------------
|6.2 | EXECUTIVE OFFICERS



|                        |  |           |      |  |                                 |                                                                           |  | 
|----------------------- |  | --------- | ---- |  | ------------------------------- | ------------------------------------------------------------------------- |  | 
|                        |  | Initially |      |  |                                
|Name (Year of Birth)    |  | Appointed |      |  | Current Position with InfoVista |                                                                          
|                        |  |           |      |  |                                 |                                                                          
|Gad Tobaly (1963)       |  |           | 2004 |  |                                 | Directeur GénéralChief Executive Officer                                 
|Philippe Ozanian (1963) |  |           | 2000 |  |                                 | Directeur Général DéléguéChief Financial Officer Executive Vice-President
|Manuel Stopnicki (1963) |  |           | 1995 |  |                                 | Chief Technical Officer Executive Vice-President                         





| |                                
| | -------------------------------
| | Executive Officers Biographies

Gad Tobaly Directeur Général


Philippe Ozanian Directeur
Général Délégué


Manuel Stopnicki Ecole Supérieure dInformatique


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|    |                     
|--- | --------------------
|6.3 | CORPORATE GOVERNANCE










| |                          
| | -------------------------
| | 6.3.1     Audit Committee







| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | Annual, semi-annual, and quarterly reporting of our statutory
    and consolidated accounts;
|
| |  | Independent statutory auditors reports;                                                    
|
| |  | Financial audit results of our independent auditors;                                        
|
| |  | Evaluation of managements implementation of accounting
    methods and policies;           
|
| |  | Internal control procedures and analysis of financial
    risks; and                        
|
| |  | Any other associated accounting or finance subjects or topics;                              

mandataires sociaux











| |                                     
| | ------------------------------------
| | 6.3.2     Compensation
    Committee



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| |   |                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Ensure fair compensation for our executive officers;                                                                                                                                                                                                                         
|
| |  | Ensure proper establishment of the variable compensation in line
    with our objectives and market conditions;                                                                                                                                                              
|
| |  | Ensure proper balance between the fixed and variable
    compensation of our executive officers, making certain that
    their variable salaries are based on clearly defined objectives
    that are aligned with the strategies as set forth by our board
    of directors;
|
| |  | Review stock options to be granted to executive officers and
    employees along with the establishment of their terms and
    conditions;                                                                                                                                   
|
| |  | Review warrants to be issued to our board directors and their
    applicable terms and conditions;                                                                                                                                                                           
|
| |  | Review our fixed and variable salary policies and ensure that it
    is consistent with our objectives; and                                                                                                                                                                  
|
| |  | Implement innovating ideas to compensate and retain our key
    officers and employees.                                                                                                                                                                                      








| |                                   
| | ----------------------------------
| | 6.3.3     Investment
    Committee












|    |           
|--- | ----------
|6.4 | (RESERVED)






|    |                                                                             
|--- | ----------------------------------------------------------------------------
|6.5 | COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS
    (MANDATAIRES SOCIAUX)

jetons de
presence 


   


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mandataires sociaux


|                     |  |                     |                    |   |                |               |                   |           |               |                   |           |  |  |                |        |  |  |   |           | 
|-------------------- |  | ------------------- | ------------------ | - | -------------- | ------------- | ----------------- | --------- | ------------- | ----------------- | --------- |  |  | -------------- | ------ |  |  | - | --------- | 
|                     |  |                     |                    |   |                | Fees Paid for |                   |           | Fees Paid for |                   |           | 
|                     |  | Gross Compensation  |                    |   |                |               | Services Rendered |           |               | Services Rendered |           |  | 
|                     |  | (Including Variable |                    |   |                |               | During Fiscal     |           |               | During Fiscal     |           |  | 
|                     |  | Component)          |                    |   | Other Benefits |               |                   | Year 2005 |               |                   | Year 2004 |  |  | Total Payments |       
|                     |  |                     |                    |   |                |               |                   |           |               |                   |           |  |  |                |       
|Alain Tingaud        |  |                    | 333,570 (124,318   | ) |                |              | 23,170            |           |               |                  |          |  |  |               |       |  |  |  | 356,740   | 
|Gad Tobaly           |  |                     | 437,274 (221,558   | ) |                |               | 19,258            |           |               |                   |          |  |  |                |       |  |  |   | 456,532   | 
|Philippe Ozanian     |  |                     | 300,809 (81,945    | ) |                |               | 87,968            |           |               |                   |          |  |  |                |       |  |  |   | 388,777   | 
|Jean-Paul Bernardini |  |                     |                   |   |                |               |                  |           |               |                   | 13,409    |  |  |                |        |  |  |   | 13,409    | 
|Herbert May          |  |                     |                   |   |                |               |                  |           |               |                   | 13,267    |  |  |                | 4,267  |  |  |   | 17,534    | 
|Guy Dubois           |  |                     |                   |   |                |               |                  |           |               |                   | 10,588    |  |  |                | 3,516  |  |  |   | 14,104    | 
|Hubert Tardieu       |  |                     |                   |   |                |               |                  |           |               |                   | 10,588    |  |  |                | 3,767  |  |  |   | 14,355    | 
|Peter Waal           |  |                     |                   |   |                |               |                  |           |               |                   | 13,086    |  |  |                | 3,450  |  |  |   | 16,536    | 
|                     |  |                     |                    |   |                |               |                   |           |               |                   |           |  |  |                |       
|Total                |  |                    | 1,071,653 (427,821 | ) |                |              | 130,396           |           |               |                  | 60,938    |  |  |               | 15,000 |  |  |  | 1,277,987 | 
|                     |  |                     |                    |   |                |               |                   |           |               |                   |           |  |  |                |       












71



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|                     |  |            |           |     |             |                  |         |                |  |  |           | 
|-------------------- |  | ---------- | --------- | --- | ----------- | ---------------- | ------- | -------------- |  |  | --------- | 
|                     |  |            |           |     |             | Shares (Directly |        
|                     |  | Options(1) |           |     | Warrants(1) |                  |         | or Indirectly) | 
|                     |  |            |           |     |             |                  |         |                | 
|Alain Tingaud        |  |            | 130,755   |     |             |                  | 25,000  |                |  |  | 1,235,053 | 
|Jean-Paul Bernardini |  |            | 0         |     |             |                  | 50,000  |                |  |  | 1         | 
|Guy Dubois           |  |            | 0         |     |             |                  | 25,000  |                |  |  | 1         | 
|Herbert May          |  |            | 0         |     |             |                  | 50,000  |                |  |  | 1         | 
|Philippe Ozanian     |  |            | 312,477   |     |             |                  | 0       |                |  |  | 533       | 
|Hubert Tardieu       |  |            | 0         |     |             |                  | 50,000  |                |  |  | 1,250     | 
|Gad Tobaly           |  |            | 750,000   |     |             |                  | 0       |                |  |  | 1         | 
|Philippe Vassor      |  |            | 0         |     |             |                  | 0       |                |  |  | 200       | 
|Manuel Stopnicki     |  |            | 262,091   |     |             |                  | 0       |                |  |  | 0         | 
|                     |  |            |           |     |             |                  |         |                | 
|Total                |  |            | 1,455,323 | (2) |             |                  | 200,000 | (3)            |  |  | 1,237,040 | 
|                     |  |            |           |     |             |                  |         |                | 






|    |                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Number of issuable or existing shares.                                                                                                          
|   
|(2) | The exercise price of these stock options varies between
    1.52 and
    5.11. They will
    expire between April 9, 2007 and August 8, 2015.
|   
|(3) | The exercise price of these warrants varies between
    1.52 and
    4.31. They will
    expire between February 6, 2007 and February 9, 2008.

mandataires sociaux


|                  |  |                                       |         |  |                   |                              |  |                    |       |  |                   |  |               |  |  | 
|----------------- |  | ------------------------------------- | ------- |  | ----------------- | ---------------------------- |  | ------------------ | ----- |  | ----------------- |  | ------------- |  |  | 
|                  |  | Total Number of Stock Options Granted |         |  |                   |                              | 
|                  |  | During Fiscal Year 2005               |         |  |                   |                              | 
|Name of the       |  |                                       |         |  | Exercise Price    |                              |  | Expiration Date of |      
|Mandataire Social |  | Total                                 |         |  | Per Date of Grant |                              |  | per Share          |       |  | the Stock Options | 
|                  |  |                                       |         |  |                   |                              |  |                    |       |  |                   | 
|Gad Tobaly        |  |                                       | 200,000 |  |                   | 120,000(Board Aug. 17, 2004) |  |                    | 3.42 |  |                   |  | Aug. 17, 2012 | 
|                  |  |                                       |         |  |                   | 80,000(Board Aug. 17, 2004)  |  |                    |       |  |                   |  | Aug. 17, 2014 | 
|                 
|Philippe Ozanian  |  |                                       | 75,000  |  |                   | 75,000(Board Aug. 17, 2004)  |  |                    | 3.42 |  |                   |  | Aug. 17, 2014 | 

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|                         |  |                                       |         |  |                   |                           |  |                    |       |  |                   |  |            |  |  | 
|------------------------ |  | ------------------------------------- | ------- |  | ----------------- | ------------------------- |  | ------------------ | ----- |  | ----------------- |  | ---------- |  |  | 
|                         |  | Total Number of Stock Options Granted |         |  |                   |                           | 
|                         |  | During Fiscal Year 2005               |         |  |                   |                           | 
|                         |  |                                       |         |  | Exercise Price    |                           |  | Expiration Date of |      
|Name of the 10 Employees |  | Total                                 |         |  | per Date of Grant |                           |  | per Share          |       |  | the Stock Options | 
|                         |  |                                       |         |  |                   |                           |  |                    |       |  |                   | 
|Jean-Luc Valente         |  |                                       | 140,000 |  |                   | 140,000(Board 09/12/2004) |  |                    | 4.35 |  |                   |  | 09/12/2014 | 
|                        
|Manuel Stopnicki         |  |                                       | 50,000  |  |                   | 50,000(Board 17/08/2004)  |  |                    | 3.42 |  |                   |  | 17/08/2014 | 
|                        
|Joe Quigg                |  |                                       | 50,000  |  |                   | 50,000(Board 17/08/2004)  |  |                    | 3.92 |  |                   |  | 17/08/2014 | 
|                        
|Roland Rodriguez         |  |                                       | 40,000  |  |                   | 40,000(Board 17/08/2004)  |  |                    | 3.92 |  |                   |  | 17/08/2014 | 
|                        
|Steven Seah              |  |                                       | 25,000  |  |                   | 25,000(Board 30/05/2005)  |  |                    | 4.43 |  |                   |  | 30/05/2015 | 
|                        
|Marc Acosta              |  |                                       | 25,000  |  |                   | 25,000(Board 17/08/2004)  |  |                    | 3.92 |  |                   |  | 17/08/2014 | 
|                        
|Ralf Boeing              |  |                                       | 20,000  |  |                   | 20,000(Board 30/05/2005)  |  |                    | 4.43 |  |                   |  | 30/05/2015 | 
|                        
|Jack Allen               |  |                                       | 20,000  |  |                   | 20,000(Board 17/08/2004)  |  |                    | 3.42 |  |                   |  | 17/08/2012 | 
|                        
|Andrew Lupu              |  |                                       | 20,000  |  |                   | 20,000(Board 30/05/2005)  |  |                    | 4.35 |  |                   |  | 30/05/2015 | 
|                        
|Santiago Salvador        |  |                                       | 16,000  |  |                   | 4,000(Board 17/08/2004)   |  |                    | 3.42 |  |                   |  | 17/08/2012 | 
|                         |  |                                       |         |  |                   | 12,000(Board 09/12/2004)  |  |                    | 4.35 |  |                   |  | 09/12/2014 | 

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|                         |  |                                   |         |  |                   |                           |                       |            |      |  |      | 
|------------------------ |  | --------------------------------- | ------- |  | ----------------- | ------------------------- | --------------------- | ---------- | ---- |  | ---- | 
|                         |  | Total Number of Options Exercised |         |  |                  
|                         |  | During Fiscal Year 2005           |         |  |                  
|                         |  |                                   |         |  | Exercise Price    |                          
|Name of the 10 Employees |  | Total                             |         |  | per Date of Grant |                           |                       | (in Euros) |     
|                         |  |                                   |         |  |                   |                           |                       |            |     
|Joseph
    McStravick(1) |  |                                   | 100,000 |  |                   | 100,000(Board 09/04/1999) |                       |            | 1.77 | 
|                        
|Eric Braun               |  |                                   | 25,000  |  |                   | 25,000(Board 13/05/2002)  |                       |            | 2.80 | 
|                        
|Joe Bergera              |  |                                   | 30,000  |  |                   | 22,500(Board 13/05/2002)  |                       |            | 2.80 | 
|                         |  |                                   |         |  |                   | 7,500(Board 10/02/2003)   |                       |            | 1.52 | 
|                        
|Jason Ho Cheong Chee     |  |                                   | 23,500  |  |                   | 23,500(Board 13/05/2002)  |                       |            | 2.80 | 
|                        
|Xavier Lefaucheux        |  |                                   | 21,900  |  |                   | 15,000(Board 09/04/1999)  |                       |            | 1.77 | 
|                         |  |                                   |         |  |                   |                           | 900(Board 13/05/2002) |            |      |  | 2.80 | 
|                         |  |                                   |         |  |                   | 5,000(Board 08/08/2002)   |                       |            | 1.84 | 
|                         |  |                                   |         |  |                   | 1,000(Board 19/08/2003)   |                       |            | 2.15 | 
|                        
|Jack Allen               |  |                                   | 12,500  |  |                   | 12,500(Board 10/02/2003)  |                       |            | 1.52 | 
|                        
|Franck Lespayandel       |  |                                   | 7,800   |  |                   | 6,000(Board 13/05/2002)   |                       |            | 2.80 | 
|                         |  |                                   |         |  |                   | 1,800(Board 08/08/2002)   |                       |            | 1.84 | 
|                        
|Michael Johnson          |  |                                   | 7,500   |  |                   | 3,750(Board 09/04/1999)   |                       |            | 1.77 | 
|                         |  |                                   |         |  |                   | 3,750(Board 09/07/1999)   |                       |            | 1.77 | 
|                        
|Christopher Craig        |  |                                   | 7,500   |  |                   | 7,500(Board 13/05/2002)   |                       |            | 2.80 | 
|                        
|Matthew Zwerlein         |  |                                   | 5,000   |  |                   | 5,000(Board 26/09/2001)   |                       |            | 2.44 | 
|                        
|Patrick Villeneuve       |  |                                   | 5,000   |  |                   | 2,500(Board 09/04/1999)   |                       |            | 1.77 | 
|                         |  |                                   |         |  |                   | 2,500(Board 09/07/1999)   |                       |            | 1.77 | 
|                         |  |                                   |         |  |                   |                           |                       |            |     
|                        
|TOTAL                    |  |                                   | 245,700 |  |                   |                           |                       |            |      |  |      | 
|                         |  |                                   |         |  |                   |                           |                       |            |     






|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Joseph McStravick is a former employee whose employment was
    terminated in fiscal year 2002. The board of directors held on
    July 23, 2002 modified the expiration term of his options.

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|    |                                                           
|--- | ----------------------------------------------------------
|6.6 | OPTIONS AND WARRANTS TO SUBSCRIBE/ PURCHASE OUR SECURITIES






| |                                                               
| | --------------------------------------------------------------
| | 6.6.1 Options giving the right to subscribe for new
    shares





| |                          
| | -------------------------
| | Authorization information





|                 |  |                              |                   |                                  |                   |           |                   |                 |  |  |           | 
|---------------- |  | ---------------------------- | ----------------- | -------------------------------- | ----------------- | --------- | ----------------- | --------------- |  |  | --------- | 
|                 |  |                              |                   |                                  |                   | Number of |                  
|                 |  | Date of Shareholders         |                   |                                  | Date of Expiry of |           |                   | Issuable Shares | 
|Name of Plan     |  | Authorization                |                   |                                  | Authorization     |           |                   | Authorized(1)   | 
|                 |  |                              |                   |                                  |                   |           |                   |                 | 
|1999
    Plan(2) |  |                              | April 9, 1999     |                                  |                   |           | April 9, 2004     |                 |  |  | 1,126,000 | 
|2000
    Plan(2) |  | December 9, 1999May 11, 2000 |                   | December 9, 2004December 9, 2004 |                   |           | 250,000500,000    |                
|2001
    Plan(3) |  |                              | December 18, 2000 |                                  |                   |           | December 18, 2005 |                 |  |  | 2,000,000 | 






|    |                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | When a stock option holder ceases to be an employee, his/her
    un-exercised stock options revert to us and may be re-issued,
    subject to the authorization period.
|   
|(2) | The authorizations to grant options for Plans 1999 and 2000 have
    expired but options granted before the expiration of the
    authorization are still exercisable. 
|   
|(3) | The 2001 Plan as modified was ratified by the general
    shareholders meeting of December 13, 2001.                                                                  



| |                    
| | -------------------
| | Vesting information

1 2




| |                  
| | -----------------
| | Grant information



|                 |  |                             |  |                |      |  |                 |  |         | 
|---------------- |  | --------------------------- |  | -------------- | ---- |  | --------------- |  | ------- | 
|                 |  | Period During Which Stock   |  | Exercise Price |      |  |                
|                 |  | Option-Holder May           |  | per Stock      |      |  | No. of          | 
|Grant Dates      |  | Exercise Stock Options      |  | Option in (1) |      |  | Issuable Shares | 
|                 |  |                             |  |                |      |  |                 | 
|1999 Plan        |  |                             |  |                |      |  |                 |  |         | 
|April 9, 1999    |  | April 2000 - April 2007     |  |                | 1.77 |  |                 |  | 268,662 | 
|July 9, 1999     |  | July 2000 - July 2007       |  |                | 1.77 |  |                 |  | 50,250  | 
|October 28, 1999 |  | October 2000 - October 2007 |  |                | 3.05 |  |                 |  | 60,688  | 

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|                        |  |                                      |  |                |       |  |                 |  |           | 
|----------------------- |  | ------------------------------------ |  | -------------- | ----- |  | --------------- |  | --------- | 
|                        |  | Period During Which Stock            |  | Exercise Price |       |  |                
|                        |  | Option-Holder May                    |  | per Stock      |       |  | No. of          | 
|Grant Dates             |  | Exercise Stock Options               |  | Option in (1) |       |  | Issuable Shares | 
|                        |  |                                      |  |                |       |  |                 | 
|January 28, 2000        |  | January 2001 - January 2008          |  |                | 4.88  |  |                 |  | 41,750    | 
|March 31, 2000          |  | March 2001 - March 2008              |  |                | 12.20 |  |                 |  | 5,000     | 
|August 19, 2003         |  | August 19, 2004 - August 19, 2011    |  |                | 2.15  |  |                 |  | 106,250   | 
|February 16, 2004       |  | February 2005 - February 2012        |  |                | 3.94  |  |                 |  | 4,500     | 
|                        |  |                                      |  |                |       |  |                 | 
|Totals per plan         |  |                                      |  |                |       |  |                 |  | 537,100   | 
|                        |  |                                      |  |                |       |  |                 | 
|2000 Plan               |  |                                      |  |                |       |  |                 |  |           | 
|January 28, 2000        |  | January 2001 - January 2008          |  |                | 4.88  |  |                 |  | 27,875    | 
|March 10, 2000          |  | March 2001 - March 2008              |  |                | 12.20 |  |                 |  | 31,000    | 
|March 31, 2000          |  | March 2001 - March 2008              |  |                | 12.20 |  |                 |  | 5,500     | 
|October 19,
    2000(2) |  | October 2001 - October 2008          |  |                | 38.50 |  |                 |  | 1,000     | 
|February 10, 2003       |  | February 2004 - February 2011        |  |                | 1.52  |  |                 |  | 100,000   | 
|August 19, 2003         |  | August
    2004(7) -
    August 2011 |  |                | 2.15  |  |                 |  | 298,858   | 
|August 17, 2004         |  | August 2005 - August 2012            |  |                | 3.42  |  |                 |  | 205,500   | 
|                        |  |                                      |  |                |       |  |                 | 
|Totals per plan         |  |                                      |  |                |       |  |                 |  | 669,733   | 
|                        |  |                                      |  |                |       |  |                 | 
|2001 Plan               |  |                                      |  |                |       |  |                 |  |           | 
|January 24,
    2001(3) |  | January 2002 - January 2011          |  |                | 31.00 |  |                 |  | 14,000    | 
|April 23,
    2001(4)   |  | April 2002 - April 2011              |  |                | 10.83 |  |                 |  | 23,100    | 
|June 20,
    2001(5)    |  | June 2002 - June 2011                |  |                | 8.14  |  |                 |  | 31,150    | 
|September 26, 2001      |  | September 2002 - September 2011      |  |                | 2.44  |  |                 |  | 3,600     | 
|December 13, 2001       |  | December 2002 - December 2012        |  |                | 4.26  |  |                 |  | 11,200    | 
|May 13,
    2002(6)     |  | September 2001 - May 2012            |  |                | 2.80  |  |                 |  | 480,330   | 
|August 8, 2002          |  | August 2003 - August 2012            |  |                | 1.84  |  |                 |  | 270,200   | 
|February 10, 2003       |  | February 2004 - February 2013        |  |                | 1.52  |  |                 |  | 100,150   | 
|February 16, 2004       |  | February 2005 - February 2014        |  |                | 3.94  |  |                 |  | 430,000   | 
|June 2, 2004            |  | June 2005 - June 2014                |  |                | 3.76  |  |                 |  | 60,000    | 
|August 17, 2004         |  | August 2005 - August 2014            |  |                | 3.42  |  |                 |  | 243,100   | 
|May 30, 2005            |  | May 2006 - May 2015                  |  |                | 4.43  |  |                 |  | 12,500    | 
|August 8, 2005          |  | August 2006 - August 2015            |  |                | 5.11  |  |                 |  | 7,000     | 
|September 9, 2005       |  | September 2006 - September 2015      |  |                | 5.00  |  |                 |  | 15,500    | 
|                        |  |                                      |  |                |       |  |                 | 
|Totals per plan         |  |                                      |  |                |       |  |                 |  | 1,701,830 | 
|                        |  |                                      |  |                |       |  |                 | 






|    |                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | All amounts have been converted from French francs to euro at
    the official conversion rate of
    1.00 = FF
    6.55957, unless the exercise price was fixed in both euros and
    francs.
|   
|(2) | Options giving right to subscribe to 34,750 shares were
    cancelled on holders request, as part of the Surrender and
    Re-grant Scheme.                                                   
|   
|(3) | Options giving right to subscribe to 569,515 shares were
    cancelled on holders request, as part of the Surrender and
    Re-grant Scheme.                                                  
|   
|(4) | Options giving right to subscribe to 143,500 shares were
    cancelled on holders request, as part of the Surrender and
    Re-grant Scheme.                                                  
|   
|(5) | Options giving right to subscribe to 32,000 shares were
    cancelled on holders request, as part of the Surrender and
    Re-grant Scheme.                                                   

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|    |                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | Out of the 1,092,665 stock options granted on this date, 884,365
    are re-granted stock options and may already be exercised by
    their holders since the time limits for exercise which apply to
    the reissued stock options is identical to that for those which
    were surrendered.                                                                                                
|   
|(7) | 249,358 of these stock options were granted to seven employees
    with a modification to the Plan vesting period. The stock
    options shall vest by the earlier of 25% at the end of each
    quarter for which we will reach break even point (adjusted
    net profit), or under the terms of the 2000 Plan. As of
    September 20, 2005, all those stock options are fully
    vested.

Directeurs Généraux Délégués




code général des impôts


 




77



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##### Table of Contents








| |                                                               
| | --------------------------------------------------------------
| | 6.6.2 Options giving the right to purchase existing
    shares





| |                          
| | -------------------------
| | Authorization information





|             |  |                      |                   |  |                   |  |                   |                      |  |  |         | 
|------------ |  | -------------------- | ----------------- |  | ----------------- |  | ----------------- | -------------------- |  |  | ------- | 
|             |  | Date of Shareholders |                   |  | Date of Expiry of |  |                   | Number of Issuable   | 
|Name of Plan |  | Authorization        |                   |  | Authorization     |  |                   | Shares Authorized(1) | 
|             |  |                      |                   |  |                   |  |                   |                      | 
|2003 Plan    |  |                      | December 5, 2002  |  |                   |  | February 4, 2006  |                      |  |  | 300,000 | 
|2004 Plan    |  |                      | December 15, 2003 |  |                   |  | February 14, 2007 |                      |  |  | 480,000 | 
|2005 Plan    |  |                      | December 9, 2004  |  |                   |  | February 8, 2008  |                      |  |  | 360,000 | 






|    |                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | When a stock option holder ceases to be an employee, his/her
    un-exercised stock options revert to us and may be re-issued,
    subject to the authorization period.



| |                    
| | -------------------
| | Vesting information

1 2




78



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##### Table of Contents





| |                  
| | -----------------
| | Grant information



|                 |  |                         |                                   |  |                |  |       |                 |  |  |         | 
|---------------- |  | ----------------------- | --------------------------------- |  | -------------- |  | ----- | --------------- |  |  | ------- | 
|                 |  | Period During Which     |                                   |  | Exercise Price |  |       |                
|                 |  | Stock Option-Holder May |                                   |  | per Stock      |  |       | No. of          | 
|Grant Dates      |  | Exercise Stock Options  |                                   |  | Option         |  |       | Issuable Shares | 
|                 |  |                         |                                   |  |                |  |       |                 | 
|2003 Plan        |  |                         |                                   |  |                |  |       |                 |  |  |         | 
|August 19, 2003  |  |                         | August 19, 2004-August 19, 2013   |  |                |  | 2.15 |                 |  |  | 268,540 | 
|                 |  |                         |                                   |  |                |  |       |                 | 
|Total per plan   |  |                         |                                   |  |                |  |       |                 |  |  | 268,540 | 
|                 |  |                         |                                   |  |                |  |       |                 | 
|2004 Plan        |  |                         |                                   |  |                |  |       |                 |  |  |         | 
|August 17, 2004  |  |                         | August 17, 2005-August 17, 2014   |  |                |  | 3.92 |                 |  |  | 141,200 | 
|December 9, 2004 |  |                         | December 9, 2005-December 9, 2014 |  |                |  | 4.35 |                 |  |  | 234,500 | 
|August 8, 2005   |  |                         | August 8, 2006-August 8, 2015     |  |                |  | 5.11 |                 |  |  | 40,000  | 
|                 |  |                         |                                   |  |                |  |       |                 | 
|Total per plan   |  |                         |                                   |  |                |  |       |                 |  |  | 415,700 | 
|                 |  |                         |                                   |  |                |  |       |                 | 
|2005 Plan        |  |                         |                                   |  |                |  |       |                 |  |  |         | 
|August 8, 2005   |  |                         | August 8, 2006-August 8, 2015     |  |                |  | 5.00 |                 |  |  | 165,000 | 
|                 |  |                         |                                   |  |                |  |       |                 | 
|Total per plan   |  |                         |                                   |  |                |  |       |                 |  |  | 165,000 | 
|                 |  |                         |                                   |  |                |  |       |                 | 

Directeurs Généraux Délégués









| |                   
| | ------------------
| | 6.6.3     Warrants



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|                 |  |               |                   |               |              |                                     |           |              |         |  |             |  |         |              |         |           |            |     |            |           |      |           |           |  |        |  |        |  |   |  |  | 
|---------------- |  | ------------- | ----------------- | ------------- | ------------ | ----------------------------------- | --------- | ------------ | ------- |  | ----------- |  | ------- | ------------ | ------- | --------- | ---------- | --- | ---------- | --------- | ---- | --------- | --------- |  | ------ |  | ------ |  | - |  |  | 
|                 |  |               |                   |               |              | Maximum No.                         |           |              |         |  |             |  |         |              | No. of  |           |            |    
|                 |  |               |                   | Period During |              |                                     | of Shares |              |         |  |             |  |         | Exercise     |         |           | Warrants   |     |            | No. of    |     
|                 |  | Date of       |                   |               | Which Holder |                                     |           | Authorized   |         |  | Maximum No. |  |         |              |         | Price per |            |     | Granted to |           |      | Executive |          
|Name of          |  | Shareholders |                   |               | May Exercise |                                     |           | by the       |         |  | of Issuable |  |         | Subscription |         |           | Warrant in |     |            | Executive |      |           | Officers  | 
|Series           |  | Authorization |                   |               | Warrants     |                                     |           | Shareholders |         |  | Shares      |  |         | Price in     |         |           | (1)       |     |            | Officers  |      |           | Concerned | 
|                 |  |               |                   |               |              |                                     |           |              |         |  |             |  |         |              |         |           |            |     |            |           |      |           |           | 
|Series E         |  |               | December 13, 2001 |               |              | February 7, 2002toFebruary 6, 2007  |           |              | 195,624 |  |             |  | 115,624 |              |         |          | 0.04       |     |            |          | 4.31 |           |           |  | 0      |  |        |  | 0 | 
|Series F(2)      |  |               | December 5, 2002  |               |              | February 10, 2003toFebruary 9, 2008 |           |              | 190,624 |  |             |  | 140,624 |              |         |          | 0.02       | (3) |            |          | 1.52 | (3)       |           |  | 25,000 |  |        |  | 1 | 
|                 |  |               |                   |               |              |                                     |           |              |         |  |             |  |         |              |         |           |            |     |            |           |      |           |           | 
|Total per series |  |               |                   |               |              |                                     |           |              |         |  | 386,248     |  |         |              | 256,248 |           |            |     |            |           |      |           |           |  |        |  | 25,000 |  |   |  |  | 
|                 |  |               |                   |               |              |                                     |           |              |         |  |             |  |         |              |         |           |            |     |            |           |      |           |           | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | All amounts have been converted from French francs to euros at
    the official conversion rate of
    1.00 =
    FF 6.55957.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(2) | The subscription price for each warrant is equal to 1% of the
    average closing share price on the then Nouveau Marché(currently Compartment C of Eurolist by
    Euronexttm)
    for the twenty trading sessions prior to the grant date. The
    exercise price of each warrant is equal to the highest of (1)
    85% of the average closing share price on the Nouveau
    Marché (currently Compartment C of Eurolist by
    Euronexttm),
    (2) the closing share price on the Nouveau Marché(currently Compartment C of Eurolist by
    Euronexttm)
    at the end of the trading session immediately preceding the
    grant date, or (3) the closing share price of our ADSs on
    Nasdaq the day preceding the grant date.






|    |          
|--- | ---------
|6.7 | EMPLOYEES






| |                                    
| | -----------------------------------
| | 6.7.1     Employee
    distribution





| |                           
| | --------------------------
| | Distribution by department

|                           |  |                     |     |  |      |  |     |      |  |  |     | 
|-------------------------- |  | ------------------- | --- |  | ---- |  | --- | ---- |  |  | --- | 
|                           |  | Year ended June 30, |    
|                           |  |                     |    
|                           |  | 2005                |     |  | 2004 |  |     | 2003 | 
|                           |  |                     |     |  |      |  |     |      | 
|General and administrative |  |                     | 25  |  |      |  | 21  |      |  |  | 28  | 
|Sales and marketing        |  |                     | 68  |  |      |  | 69  |      |  |  | 76  | 
|Research and development   |  |                     | 58  |  |      |  | 55  |      |  |  | 52  | 
|Customer service           |  |                     | 43  |  |      |  | 43  |      |  |  | 45  | 
|                           |  |                     |     |  |      |  |     |      | 
|Total Employees            |  |                     | 194 |  |      |  | 188 |      |  |  | 201 | 
|                           |  |                     |     |  |      |  |     |      | 



| |                      
| | ---------------------
| | Distribution by level

|                    |  |                     |     |  |      |  |     |      |  |  |     | 
|------------------- |  | ------------------- | --- |  | ---- |  | --- | ---- |  |  | --- | 
|                    |  | Year ended June 30, |    
|                    |  |                     |    
|                    |  | 2005                |     |  | 2004 |  |     | 2003 | 
|                    |  |                     |     |  |      |  |     |      | 
|Employees           |  |                     | 5   |  |      |  | 4   |      |  |  | 4   | 
|Engineers/ Managers |  |                     | 186 |  |      |  | 180 |      |  |  | 194 | 
|Executive officers  |  |                     | 3   |  |      |  | 4   |      |  |  | 3   | 
|                    |  |                     |     |  |      |  |     |      | 
|Total Employees     |  |                     | 194 |  |      |  | 188 |      |  |  | 201 | 
|                    |  |                     |     |  |      |  |     |      | 

80



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| |                        
| | -----------------------
| | Geographic distribution

|                |  |                     |     |  |      |  |     |      |  |  |     | 
|--------------- |  | ------------------- | --- |  | ---- |  | --- | ---- |  |  | --- | 
|                |  | Year ended June 30, |    
|                |  |                     |    
|                |  | 2005                |     |  | 2004 |  |     | 2003 | 
|                |  |                     |     |  |      |  |     |      | 
|Europe          |  |                     | 130 |  |      |  | 125 |      |  |  | 133 | 
|Americas        |  |                     | 52  |  |      |  | 49  |      |  |  | 55  | 
|Asia-Pacific    |  |                     | 12  |  |      |  | 14  |      |  |  | 13  | 
|                |  |                     |     |  |      |  |     |      | 
|Total Employees |  |                     | 194 |  |      |  | 188 |      |  |  | 201 | 
|                |  |                     |     |  |      |  |     |      | 










| |                                     
| | ------------------------------------
| | 6.7.2     Reduction in
    workforce










| |                       
| | ----------------------
| | 6.7.3     Compensation






| |                    
| | -------------------
| | Compensation policy



   







| |                                          
| | -----------------------------------------
| | Profit sharing and Share purchase schemes

Plan
dintéressement Plan
dintéressement Plan dEpargne dEntreprise


Plan dintéressement


Plan dintéressement  


81



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| |                                                         
| | --------------------------------------------------------
| | 6.7.4     Social relations and
    collective agreements






| |                 
| | ----------------
| | Social relations

comité dentreprise  comité dentreprise







| |                      
| | ---------------------
| | Collective agreements

comité dentreprise


comité dentreprise


convention collective nationale des bureaux
détudes techniques, cabinets
dingénieurs-conseils et sociétés de
conseils







| |                                           
| | ------------------------------------------
| | 6.7.5     Health and safety
    conditions








| |                                     
| | ------------------------------------
| | 6.7.6     Training for
    personnel

 







|    |                
|--- | ---------------
|6.8 | SHARE OWNERSHIP








|        |                                                  
|------- | -------------------------------------------------
|ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS






|    |                                            
|--- | -------------------------------------------
|7.1 | MAJOR SHAREHOLDERS AS OF SEPTEMBER 20, 2005



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|                                                |       |                  |            |            |         |  |             |        |  |  |       |        | 
|----------------------------------------------- | ----- | ---------------- | ---------- | ---------- | ------- |  | ----------- | ------ |  |  | ----- | ------ | 
|                                                |       |                  |            | % of Share |         |  | % of Voting |       
|Shareholders                                    |       | Number of Shares |            |            | Capital |  |             | Rights | 
|                                                |       |                  |            |            |         |  |             |        | 
|FMR Corp./ Fidelity International
    Ltd(1)(3) |       |                  | 2,140,093  |            |         |  | 11.53       |        |  |  | 12.32 |       
|Odyssée Venture
    SAS(1)                      |       |                  | 1,843,894  |            |         |  | 9.93        |        |  |  | 10.62 |       
|CV Sofinnova Ventures                           |       |                  | 602,066    |            |         |  | 3.24        |        |  |  | 3.46  |       
|Directors & Executive Officers                  |       |                  |            |            |         |  |             |        |  |  |       |       
|Alain
    Tingaud(1)                            |       |                  | 1,015,243  |            |         |  | 5.47        |        |  |  | 5.84  |       
|Jean-Paul Bernardini                            |       |                  | 1          |            |         |  | 0.00        |        |  |  | 0.00  |       
|Herbert May                                     |       |                  | 1          |            |         |  | 0.00        |        |  |  | 0.00  |       
|Hubert
    Tardieu(1)                           |       |                  | 1,250      |            |         |  | 0.01        |        |  |  | 0.01  |       
|Philippe Vassor                                 |       |                  | 1          |            |         |  | 0.00        |        |  |  | 0.00  |       
|Guy Dubois                                      |       |                  | 1          |            |         |  | 0.00        |        |  |  | 0.00  |       
|Philippe Ozanian                                |       |                  | 533        |            |         |  | 0.00        |        |  |  | 0.00  |       
|Gad Tobaly                                      |       |                  | 1          |            |         |  | 0.00        |        |  |  | 0.00  |       
|Manuel Stopnicki                                |       |                  | 0          |            |         |  | 0.00        |        |  |  | 0.00  |       
|InfoVista S.A.                                  |       |                  | 1,198,724  |            |         |  | 6.46        |        |  |  | 0.00  |       
|Others(2)                                       |       |                  | 11,756,906 |            |         |  | 63.35       |        |  |  | 67.72 |       
|                                                |       |                  |            |            |         |  |             |        | 
|                                                | Total |                  |            | 18,558,913 |         |  |             | 100.00 |  |  |       | 100.00 | 
|                                                |       |                  |            |            |         |  |             |        | 






|    |                                                                                
|--- | -------------------------------------------------------------------------------
|(1) | Directly or indirectly.                                                        
|   
|(2) | Includes shares issued upon the exercise of stock options by our
    employees.
|   
|(3) | We obtained this information as of August 31, 2005.                            











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|    |                                                                          
|--- | -------------------------------------------------------------------------
|7.2 | SIGNIFICANT CHANGES TO SHAREHOLDINGS OVER THE LAST THREE
    FISCAL YEARS



|                                                      |       |               |            |            |               |  |          |               |  |  |           |          |  |         |            |            |        |  |       |           |  |  |          |        |  |        |            |            |  |  |       |        |  |  |       |        | 
|----------------------------------------------------- | ----- | ------------- | ---------- | ---------- | ------------- |  | -------- | ------------- |  |  | --------- | -------- |  | ------- | ---------- | ---------- | ------ |  | ----- | --------- |  |  | -------- | ------ |  | ------ | ---------- | ---------- |  |  | ----- | ------ |  |  | ----- | ------ | 
|                                                      |       | June 30, 2005 |            |            | June 30, 2004 |  |          | June 30, 2003 | 
|                                                      |       |               |            |            |               |  |          |               | 
|                                                      |       |               |            | % of the   |               |  | % of the |               |  |  |           | % of the |  |         | % of the   |            |        |  |       | % of the  |  |  | % of the |       
|                                                      |       | Number of     |            |            | Share         |  |          | Voting        |  |  | Number of |          |  | Share   |            |            | Voting |  |       | Number of |  |  | Share    |        |  | Voting |           
|Shareholders                                          |       | Shares        |            |            | Capital       |  |          | Rights        |  |  | Shares    |          |  | Capital |            |            | Rights |  |       | Shares    |  |  | Capital  |        |  | Rights |           
|                                                      |       |               |            |            |               |  |          |               |  |  |           |          |  |         |            |            |        |  |       |           |  |  |          |        |  |        |           
|Société Centrale
    dInvestissements(2)             |       |               | 0          |            |               |  | 0        |               |  |  | 0         |          |  |         | 0          |            |        |  | 0     |           |  |  | 0        |        |  |        | 1,918,012  |            |  |  | 10.20 |        |  |  | 10.63 |       
|FMR Corp et Fidelity International Limited
    (1)(3) |       |               | 2,075,593  |            |               |  | 11.20    |               |  |  | 11.95     |          |  |         | 1,852,471  |            |        |  | 9.77  |           |  |  | 10.82    |        |  |        | 1,842,713  |            |  |  | 9.80  |        |  |  | 10.22 |       
|Odyssée Venture
    SAS(1)(4)                         |       |               | 1,843,894  |            |               |  | 9.95     |               |  |  | 10.61     |          |  |         | 1,895,625  |            |        |  | 10.0  |           |  |  | 11.07    |        |  |        | 1,309,936  |            |  |  | 6.97  |        |  |  | 7.26  |       
|Alain
    Tingaud(1)(5)                               |       |               | 1,015,243  |            |               |  | 5.48     |               |  |  | 5.84      |          |  |         | 1,235,053  |            |        |  | 6.51  |           |  |  | 7.21     |        |  |        | 924,053    |            |  |  | 4.91  |        |  |  | 5.12  |       
|Vertex Technology
    Fund Ltd(6)                     |       |               | 0          |            |               |  | 0        |               |  |  | 0         |          |  |         | 0          |            |        |  | 0     |           |  |  | 0        |        |  |        | 805,670    |            |  |  | 4.29  |        |  |  | 4.47  |       
|CV Sofinnova Ventures Partners III                    |       |               | 602,066    |            |               |  | 3.25     |               |  |  | 3.47      |          |  |         | 602,066    |            |        |  | 3.17  |           |  |  | 3.51     |        |  |        | 602,066    |            |  |  | 3.20  |        |  |  | 3.34  |       
|InfoVista S.A.                                        |       |               | 1,151,854  |            |               |  | 6.22     |               |  |  | 0         |          |  |         | 1,835,454  |            |        |  | 9.69  |           |  |  | 0        |        |  |        | 764,634    |            |  |  | 4.07  |        |  |  | 0.00  |       
|Others(7)                                             |       |               | 11,836,071 |            |               |  | 63.90    |               |  |  | 68.15     |          |  |         | 11,530,251 |            |        |  | 60.84 |           |  |  | 67.37    |        |  |        | 10,635,553 |            |  |  | 56.56 |        |  |  | 58.96 |       
|                                                      |       |               |            |            |               |  |          |               |  |  |           |          |  |         |            |            |        |  |       |           |  |  |          |        |  |        |           
|                                                      | Total |               |            | 18,524,721 |               |  |          | 100.00        |  |  |           | 100.00   |  |         |            | 18,950,920 |        |  |       | 100.00    |  |  |          | 100.00 |  |        |            | 18,802,637 |  |  |       | 100.00 |  |  |       | 100.00 | 
|                                                      |       |               |            |            |               |  |          |               |  |  |           |          |  |         |            |            |        |  |       |           |  |  |          |        |  |        |           






|    |                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Directly and indirectly.                                                                                                                                                     
|   
|(2) | Through a letter dated March 18, 2004, BNP Paribas notified
    the Autorité des marchés financiersthat its
    holding had gone under 10% and 5%.                           
|   
|(3) | Through a letter dated February 4, 2005, FMR Corp et
    Fidelity International Limited notified the Autorité des
    marchés financiersthat their holding had gone over 10%.
|   
|(4) | Through a letter dated May 19, 2004, Odyssée Venture
    SAS notified the Autorité des marchés financiersthat its holding had gone over 10%.                                 
|   
|(5) | Through a letter dated March 22, 2004, Mr. Alain
    Tingaud notified the Autorité des marches financiersthat his holding had gone over 5%.                                  
|   
|(6) | Through a letter dated June 27, 2003, Vertex Technology
    Fund Ltd notified the Conseil des Marchés
    Financiersthat its holding had gone under 5%.                      
|   
|(7) | Includes shares issued upon the exercise of stock options by our
    employees.                                                                                              






|    |                           
|--- | --------------------------
|7.3 | RELATED PARTY TRANSACTIONS



84



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|        |                      
|------- | ---------------------
|ITEM 8. | FINANCIAL INFORMATION






|    |                                                        
|--- | -------------------------------------------------------
|8.1 | CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION








|    |                  
|--- | -----------------
|8.2 | LEGAL PROCEEDINGS








|    |                
|--- | ---------------
|8.3 | DIVIDEND POLICY








|    |                    
|--- | -------------------
|8.4 | SIGNIFICANT CHANGES








|        |                      
|------- | ---------------------
|ITEM 9. | THE OFFER AND LISTING

Autorités des Marchés Financiers Commission
des Opérations de Bourse Conseil de
Discipline de la Gestion Financière







|    |        
|--- | -------
|9.1 | MARKETS

tm Nouveau Marché







|    |                           
|--- | --------------------------
|9.2 | PRICE HISTORY OF THE STOCK

tm


85



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tm


|                               |  |                             |      |         |                                |  |        |         |  |  |         |         |  |      |        |  |     |  |      |         |  |  |         |  |  |  |      |  |  |  |    | 
|------------------------------ |  | --------------------------- | ---- | ------- | ------------------------------ |  | ------ | ------- |  |  | ------- | ------- |  | ---- | ------ |  | --- |  | ---- | ------- |  |  | ------- |  |  |  | ---- |  |  |  | -- | 
|                               |  | Price of Shares in Euros(1) |      |         | Price of ADSs in US Dollars(2) | 
|                               |  |                             |      |         |                                | 
|                               |  |                             |      | Closing |                                |  | Volume |         |  |  |         | Closing |  |      | Volume | 
|                               |  | High                        |      |         | Low                            |  |        | Average |  |  | in 000s |         |  | High |        |  | Low |  |      | Average |  |  | in 000s | 
|                               |  |                             |      |         |                                |  |        |         |  |  |         |         |  |      |        |  |     |  |      |         |  |  |         | 
|6 months to September 20, 2005 |  |                             |      |         |                                |  |        |         |  |  |         |         |  |      |        |  |     |  |      |         |  |  |         |  |  |  |      |  |  |  |    | 
|2005 September                 |  |                             | 5.03 |         |                                |  | 4.80   |         |  |  | 4.90    |         |  |      | 703    |  |     |  | 6.30 |         |  |  | 5.80    |  |  |  | 5.99 |  |  |  | 45 | 
|2005 August                    |  |                             | 5.29 |         |                                |  | 4.80   |         |  |  | 5.03    |         |  |      | 571    |  |     |  | 6.80 |         |  |  | 5.80    |  |  |  | 6.14 |  |  |  | 9  | 
|2005 July                      |  |                             | 5.70 |         |                                |  | 4.50   |         |  |  | 5.14    |         |  |      | 1,302  |  |     |  | 7.35 |         |  |  | 5.00    |  |  |  | 6.08 |  |  |  | 25 | 
|2005 June                      |  |                             | 4.74 |         |                                |  | 4.25   |         |  |  | 4.54    |         |  |      | 243    |  |     |  | 6.15 |         |  |  | 5.10    |  |  |  | 5.38 |  |  |  | 13 | 
|2005 May                       |  |                             | 4.72 |         |                                |  | 4.08   |         |  |  | 4.29    |         |  |      | 682    |  |     |  | 5.50 |         |  |  | 2.85    |  |  |  | 5.31 |  |  |  | 18 | 
|2005 April                     |  |                             | 5.40 |         |                                |  | 3.95   |         |  |  | 4.73    |         |  |      | 1,346  |  |     |  | 6.95 |         |  |  | 5.15    |  |  |  | 5.93 |  |  |  | 31 | 

|                                  |  |      |      |  |     |  |      |  |  |  |  |      |  |  |     |  |  |  |      |  |  |  |      |  |  |  |  |  |  |  |  | 
|--------------------------------- |  | ---- | ---- |  | --- |  | ---- |  |  |  |  | ---- |  |  | --- |  |  |  | ---- |  |  |  | ---- |  |  |  |  |  |  |  |  | 
|                                  |  | High |      |  | Low |  |      |  |  |  |  | High |  |  | Low |  |  |  |      | 
|                                  |  |      |      |  |     |  |      |  |  |  |  |      |  |  |     |  |  |  |      | 
|Fiscal year 2005 by quarter ended |  |      |      |  |     |  |      |  |  |  |  |      |  |  |     |  |  |  |      |  |  |  |      |  |  |  |  |  |  |  |  | 
|June 30, 2005                     |  |      | 5.40 |  |     |  | 3.95 |  |  |  |  |      |  |  |     |  |  |  | 6.95 |  |  |  | 2.85 |  |  |  |  |  |  |  |  | 
|March 31, 2005                    |  |      | 5.59 |  |     |  | 4.40 |  |  |  |  |      |  |  |     |  |  |  | 7.50 |  |  |  | 3.88 |  |  |  |  |  |  |  |  | 
|December 31, 2004                 |  |      | 4.75 |  |     |  | 3.66 |  |  |  |  |      |  |  |     |  |  |  | 7.00 |  |  |  | 4.19 |  |  |  |  |  |  |  |  | 
|September 30, 2004                |  |      | 4.27 |  |     |  | 3.15 |  |  |  |  |      |  |  |     |  |  |  | 5.00 |  |  |  | 3.44 |  |  |  |  |  |  |  |  | 

|                                  |  |      |      |  |     |  |      |  |  |  |  |  |  |  |  |  |  |  |      |  |  |  |      |  |  |  |  |  |  |  |  | 
|--------------------------------- |  | ---- | ---- |  | --- |  | ---- |  |  |  |  |  |  |  |  |  |  |  | ---- |  |  |  | ---- |  |  |  |  |  |  |  |  | 
|                                  |  | High |      |  | Low |  |      |  |  |  |  |  |  |  |  |  |  | 
|                                  |  |      |      |  |     |  |      |  |  |  |  |  |  |  |  |  |  | 
|Fiscal year 2004 by quarter ended |  |      |      |  |     |  |      |  |  |  |  |  |  |  |  |  |  |  |      |  |  |  |      |  |  |  |  |  |  |  |  | 
|June 30, 2004                     |  |      | 4.22 |  |     |  | 3.31 |  |  |  |  |  |  |  |  |  |  |  | 5.35 |  |  |  | 4.00 |  |  |  |  |  |  |  |  | 
|March 31, 2004                    |  |      | 4.69 |  |     |  | 2.35 |  |  |  |  |  |  |  |  |  |  |  | 6.24 |  |  |  | 2.84 |  |  |  |  |  |  |  |  | 
|December 31, 2003                 |  |      | 2.57 |  |     |  | 1.86 |  |  |  |  |  |  |  |  |  |  |  | 3.24 |  |  |  | 1.82 |  |  |  |  |  |  |  |  | 
|September 30, 2003                |  |      | 2.63 |  |     |  | 2.01 |  |  |  |  |  |  |  |  |  |  |  | 2.90 |  |  |  | 2.30 |  |  |  |  |  |  |  |  | 

|                              |  |      |      |  |     |  |      |  |  |  |  |      |  |  |     |  |  |  |      |  |  |  |      |  |  |  |  |  |  |  |  | 
|----------------------------- |  | ---- | ---- |  | --- |  | ---- |  |  |  |  | ---- |  |  | --- |  |  |  | ---- |  |  |  | ---- |  |  |  |  |  |  |  |  | 
|                              |  | High |      |  | Low |  |      |  |  |  |  | High |  |  | Low |  |  |  |      | 
|                              |  |      |      |  |     |  |      |  |  |  |  |      |  |  |     |  |  |  |      | 
|Fiscal years 2004 and 2003    |  |      |      |  |     |  |      |  |  |  |  |      |  |  |     |  |  |  |      |  |  |  |      |  |  |  |  |  |  |  |  | 
|July 1, 2003 to June 30, 2004 |  |      | 4.69 |  |     |  | 1.86 |  |  |  |  |      |  |  |     |  |  |  | 6.24 |  |  |  | 1.82 |  |  |  |  |  |  |  |  | 
|July 1, 2002 to June 30, 2003 |  |      | 2.31 |  |     |  | 1.15 |  |  |  |  |      |  |  |     |  |  |  | 2.55 |  |  |  | 1.00 |  |  |  |  |  |  |  |  | 






|    |                       
|--- | ----------------------
|(1) | Source: Euronext Paris
|   
|(2) | Source: Nasdaq        

86



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##### Table of Contents



tm Nouveau Marché


Price history of the stock on the Compartment C of
Eurolist by
Euronexttm


(Source EURONEXT PARIS)





Price history of the stock on the NASDAQ


(Source: NASDAQ)










|    |        
|--- | -------
|9.3 | GENERAL

SBF


87



---



##### Table of Contents





Premier Marché


Bolsa de Valores de Lisboa e
Porto







|    |                               
|--- | ------------------------------
|9.4 | EURONEXT PARIS SA AND EUROLIST

Premier, Second Nouveau Marchés




| |   |                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------
| |  | Compartment A comprises the companies with market
    capitalizations above
    1 billion;                                            
|
| |  | Compartment B comprises the companies with market
    capitalizations from
    150 million
    and up to and including
    1 billion;
|
| |  | Compartment C comprises the companies with market
    capitalizations below
    150 million.                                          



Continu Fixing


continu




Continu


Service à Règlement
Différé Service à Règlement Différé


88



---



##### Table of Contents



 











|         |                       
|-------- | ----------------------
|ITEM 10. | ADDITIONAL INFORMATION






|     |                                       
|---- | --------------------------------------
|10.1 | MEMORANDUM AND ARTICLES OF ASSOCIATION



statuts


statuts statuts statuts statuts Greffe







|     |                                         
|---- | ----------------------------------------
|10.2 | SHAREHOLDERS MEETINGS AND VOTING RIGHTS






| |                   
| | ------------------
| | 10.2.1     General

Livre II Code de commerce






| |   |                                                                           
| | - | --------------------------------------------------------------------------
| |  | electing, replacing and removing directors;                               
|
| |  | allocating fees to the board of directors;                                
|
| |  | appointing statutory auditors;                                            
|
| |  | approving the annual and consolidated accounts;                           
|
| |  | declaring dividends or authorizing dividends to be paid in
    shares, and
|
| |  | approving regulated agreements.                                           

statuts




| |   |                                                                   
| | - | ------------------------------------------------------------------
| |  | changing our statuts, our companys name or
    corporate purpose;
|
| |  | increasing or decreasing our share capital;                       
|
| |  | creating a new class of equity securities;                        

89



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##### Table of Contents





| |   |                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | authorizing or approving the issuance of any securities giving
    rights to equity securities or any other rights to equity
    securities (common or preferred shares);
|
| |  | a statutory merger; and                                                                                                                                                  
|
| |  | the voluntary liquidation of our company prior to the end of its
    statutory term.                                                                                     








| |                                              
| | ---------------------------------------------
| | 10.2.2     General
    Shareholders Meetings

Code de commerce Tribunal de Commerce Tribunal de
Commerce




| |   |                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | one or several shareholders holding at least 5% of our share
    capital;                                                                                                                                              
|
| |  | any interested party in cases of urgency,                                                                                                                                                                              
|
| |  | duly qualified associations of shareholders who have held their
    shares in registered form for at least two years and who
    together hold at least a specified percentage of the voting
    rights of our company,
|
| |  | the workers committee in emergency situations, and                                                                                                                                                                    
|
| |  | majority shareholders in share capital or voting rights after a
    public tender offer or the acquisition of a controlling block of
    shares.                                                                       






| |                                                
| | -----------------------------------------------
| | 10.2.3     Notice of
    Shareholders Meetings

avis de réunion Bulletin des Annonces
Légales Obligatoires


avis de convocation département




90



---



##### Table of Contents







| |   |                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | one or several shareholders holding a specified percentage of
    shares calculated on a basis of a formula relating to our share
    capital;                                                               
|
| |  | a duly qualified association of shareholders who have held their
    shares in registered form for at least two years and who
    together hold at least a specified percentage of our voting
    rights; and
|
| |  | the workers committee.                                                                                                                                                                                      










| |                                                               
| | --------------------------------------------------------------
| | 10.2.4     Attendance and Voting
    at Shareholders Meetings

statuts


Intermédiaire financier
habilité


statuts







| |                                         
| | ----------------------------------------
| | 10.2.5     Proxies and Votes by
    mail



Code civil




91



---



##### Table of Contents








| |                  
| | -----------------
| | 10.2.6     Quorum



Code de commerce statuts




| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an ordinary general meeting, and                                                                                                                        
|
| |  | an extraordinary general meeting where an increase in our share
    capital is proposed through incorporation of reserves, profits
    or share premium.



statuts







| |                    
| | -------------------
| | 10.2.7     Majority





statuts


Code de commerce







|     |                                                                    
|---- | -------------------------------------------------------------------
|10.3 | FINANCIAL STATEMENTS AND OTHER COMMUNICATIONS WITH
    SHAREHOLDERS

Code de commerce


loi de sécurité financière


92



---



##### Table of Contents








|     |          
|---- | ---------
|10.4 | DIVIDENDS

statuts statuts







| |                         
| | ------------------------
| | 10.4.1     Legal Reserve

Code de commerce sociétés anonymes 







| |                                     
| | ------------------------------------
| | 10.4.2     Approval of
    Dividends

Code de commerce







| |                                         
| | ----------------------------------------
| | 10.4.3     Distribution of
    Dividends



statuts







| |                                 
| | --------------------------------
| | 10.4.4     Timing of
    Payment

Président Tribunal de Commerce


93



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##### Table of Contents








|     |                         
|---- | ------------------------
|10.5 | CHANGES IN SHARE CAPITAL






| |                                          
| | -----------------------------------------
| | 10.5.1     Increases in Share
    Capital

Code de commerce




| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | issuing additional common or preferred shares or or a new class
    of equity securities; or
|
| |  | increasing the nominal value of existing shares.                                            





| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | for cash;                                                                                                                                           
|
| |  | for assets contributed in kind;                                                                                                                     
|
| |  | by conversion, exchange or redemption of debt securities
    convertible, redeemable or exchangeable into our shares;                               
|
| |  | by incorporation of profits, reserves or share premiums;                                                                                            
|
| |  | by exercise of any such rights attached to other securities
    giving right to common or preferred shares, including warrants
    or stock options;
|
| |  | subject to various conditions, in satisfaction of debt incurred
    by our company; or                                                              
|
| |  | any combination of the above.                                                                                                                       



Directeurs Généraux Délégués








| |   |                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increase our share capital by issuing, with preferential
    subscription rights, shares or other securities giving right,
    immediately or in the future, to our share capital, up to a
    maximum nominal amount of
    3,700,000;                                                                                                                  
|
| |  | increase our share capital by issuing to the public, without
    preferential subscription rights, shares or other securities
    giving right, immediately or in the future, to our share
    capital, up to a maximum nominal amount of
    3,700,000, to be
    deducted from the maximum amount referred to in the preceding
    bullet point; and/or
|
| |  | increase our share capital by incorporating reserves, profits or
    premiums up to a maximum nominal amount of
    3,700,000 to be
    deducted from the maximum amount referred to in the first
    bulletpoint.                                                                                                                                       

94



---



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









| |                                          
| | -----------------------------------------
| | 10.5.2     Decreases in Share
    Capital

code de commerce


95



---



##### Table of Contents










| |                                            
| | -------------------------------------------
| | 10.5.3     Share Capital Issued
    History

|                                          |            |                          |          |                                                                                |                  |                                                                  |              |                    |              |  |                |            |               |                    |                              |         |                 |  |                 |       |            |  |            |  |         |  |         | 
|----------------------------------------- | ---------- | ------------------------ | -------- | ------------------------------------------------------------------------------ | ---------------- | ---------------------------------------------------------------- | ------------ | ------------------ | ------------ |  | -------------- | ---------- | ------------- | ------------------ | ---------------------------- | ------- | --------------- |  | --------------- | ----- | ---------- |  | ---------- |  | ------- |  | ------- | 
|                                          |            |                          |          |                                                                                |                  |                                                                  |              |                    |              |  |                | Cumulative |               |                    |                             
|                                          |            |                          |          |                                                                                |                  |                                                                  |              | Additional Paid-in |              |  |                |            | Number of     |                    |                              | Nominal |                
|Date                                      |            |                          | Movement |                                                                                | Number of Shares |                                                                  |              | Capital Amount     |              |  | Capital Amount |            |               | Cumulative Capital |                              |         | Shares          |  |                 | Value |           
|                                          |            |                          |          |                                                                                |                  |                                                                  |              |                    |              |  |                |            |               |                    |                              |         |                 |  |                 |       |           
|                                          | 10/13/95   |                          |          | Issuance of common stock                                                       |                  |                                                                  | 19,000       |                    |              |  | FF 900,000     |            |               |                    | FF 8,100                     |         |                 |  | FF 1,900,000    |       |            |  | 19,000     |  |         |  | FF 100  | 
|                                          | 10/13/95   |                          |          | Issuance of common stock                                                       |                  |                                                                  | 81,000       |                    |              |  | FF 8,100,000   |            |               |                    |                             |         |                 |  | FF 10,000,000   |       |            |  | 100,000    |  |         |  | FF 100  | 
|                                          | 06/21/96   |                          |          | Reduction of the nominal value by issues of shares at no value                 |                  | 2,000,000 new shares in exchange for 100,000 existing shares     |              |                    |             |  |                |            |              |                    |                              |         | FF 10,000,000   |  |                 |       | 2,000,000  |  |            |  | FF 5    | 
|                                          | 05/16/97   |                          |          | Reduction of the nominal value                                                 |                  | 10,000,000 new shares in exchange for 2,000,000 existing shares  |              |                    |             |  |                |            |              |                    |                              |         | FF 10,000,000   |  |                 |       | 10,000,000 |  |            |  | FF 1    | 
|                                          | 05/16/97   |                          |          | Issuance of common stock                                                       |                  |                                                                  | 3,769,415    |                    |              |  | FF 3,769,415   |            |               |                    | FF 11,270,550.85             |         |                 |  | FF 13,769,415   |       |            |  | 13,769,415 |  |         |  | FF 1    | 
|                                          | 05/16/97   |                          |          | Issuance of common stock (incorporat additional paid in capital
    of 0,80 F) |                  |                                                                  |  ing        |                    |              |  | FF 11,015,532  |            |               |                    |                             |         |                 |  | FF 24,784,947   |       |            |  | 13,769,415 |  |         |  | FF 1.80 | 
|                                          | 06/30/98   |                          |          | Issuance of common stock                                                       |                  |                                                                  | 5,809,720    |                    |              |  | FF 10,457,496  |            |               |                    | FF 22,657,908                |         |                 |  | FF 35,242,443   |       |            |  | 19,579,135 |  |         |  | FF 1.80 | 
|                                          | 06/30/99   |                          |          | Exercise of stock warrants (6/30/1998 Shareholder Meeting)                     |                  |                                                                  | 2,091,495 s |                    |              |  | FF 3,764,691   |            |               |                    | FF 8,365,980                 |         |                 |  | FF 39,007,134   |       |            |  | 21,670,630 |  |         |  | FF 1.80 | 
|12/23/99 (09/12/99 Shareholders meeting) |            | Issuance of common stock |          |                                                                                | 2,800,000        |                                                                  |              |                    | FF 5,040,000 |  |                |            | FF 39,760,000 |                    |                              |         | FF 4,047,134    |  |                 |       | 24,470,630 |  |            |  | FF 1.80 | 
|                                          | 03/10/2000 |                          |          | Conversion of capital into euros and capital reduction                         |                  |                                                                  |             |                    |              |  | FF 707,595.19  |            |               |                    |                             |         |                 |  |  6,607,070.10  |       |            |  | 24,470,630 |  |         |  |  0.27  | 
|                                          | 03/31/2000 |                          |          | Exercise of 1999 D Stock warrants (12/9/1999 Shareholder
    meeting)          |                  |                                                                  | 1,200,000 s |                    |              |  |  324,000      |            |               |                    | FF 17,040,000( 2,603,021.10 | )       |                 |  |  6,931,070.10  |       |            |  | 25,670,630 |  |         |  |  0.27  | 
|                                          | 05/23/2000 |                          |          | Exercise of stock options
    (Plans 1996 and 1999)                            |                  |                                                                  | 188,326      |                    |              |  |  50,848.02    |            |               |                    | FF 156,329.08( 23,832.21    | )       |                 |  |  6,981,918.12  |       |            |  | 25,858,956 |  |         |  |  0.27  | 
|                                          | 05/25/2000 |                          |          | Reverse stock split (2 for 1)                                                  |                  | 12,929,478 new shares in exchange for 25,858,956 existing shares |              |                    |             |  |                |            |              |                    |                              |         |  6,981,918.12  |  |                 |       | 12,929,478 |  |            |  |  0.54  | 
|Initial Public Offering (07/07/2000)      |            | Issuance of common stock |          |                                                                                | 6,000,000        |                                                                  |              |                    |  3,240,000  |  |                |            |  73,560,000  |                    |                              |         |  10,221,918.12 |  |                 |       | 18,929,478 |  |            |  |  0.54  | 
|                                          | 10/12/2000 |                          |          | Exercise of 1999 B stock warrants (12/9/1999 Shareholder
    meeting)          |                  |                                                                  | 70,000 s    |                    |              |  |  37,800       |            |               |                    |  303,685.79                 |         |                 |  |  10,259,718.12 |       |            |  | 18,999,478 |  |         |  |  0.54  | 
|                                          | 12/18/2000 |                          |          | Exercise of stock options (Plan 1999)                                          |                  |                                                                  | 72,186       |                    |              |  |  38,980.44    |            |               |                    |  93,847.83                  |         |                 |  |  10,298,698.56 |       |            |  | 19,071,664 |  |         |  |  0.54  | 
|                                          | 01/24/2001 |                          |          | Exercise of 1999 C stock warrants (12/9/1999 Shareholder
    meeting)          |                  |                                                                  | 18,750 s    |                    |              |  |  10,125       |            |               |                    |  81,344.40                  |         |                 |  |  10,308,823.56 |       |            |  | 19,090,414 |  |         |  |  0.54  | 

96



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|     |            |  |          |                                                                                                  |                  |  |             |                    |  |  |                |            |           |                    |                |         |        |  |                 |       |  |  |            |  |  |  |        | 
|---- | ---------- |  | -------- | ------------------------------------------------------------------------------------------------ | ---------------- |  | ----------- | ------------------ |  |  | -------------- | ---------- | --------- | ------------------ | -------------- | ------- | ------ |  | --------------- | ----- |  |  | ---------- |  |  |  | ------ | 
|     |            |  |          |                                                                                                  |                  |  |             |                    |  |  |                | Cumulative |           |                    |               
|     |            |  |          |                                                                                                  |                  |  |             | Additional Paid-in |  |  |                |            | Number of |                    |                | Nominal |       
|Date |            |  | Movement |                                                                                                  | Number of Shares |  |             | Capital Amount     |  |  | Capital Amount |            |           | Cumulative Capital |                |         | Shares |  |                 | Value | 
|     |            |  |          |                                                                                                  |                  |  |             |                    |  |  |                |            |           |                    |                |         |        |  |                 |       | 
|     | 01/24/2001 |  |          | Exercise of stock options
    (Plans 1996 and 1999)                                              |                  |  | 18,437      |                    |  |  |   9,955.98    |            |           |                    |   18,582.45   |         |        |  |  10,318,779.54 |       |  |  | 19,108,851 |  |  |  |  0.54 | 
|     | 04/04/2001 |  |          | Exercise of 1999 A stock warrants (12/9/1999 Shareholder
    meeting)                            |                  |  | 30,000 s   |                    |  |  |  16,200       |            |           |                    |  130,151.05   |         |        |  |  10,334,979.54 |       |  |  | 19,138,851 |  |  |  |  0.54 | 
|     | 06/20/2001 |  |          | Exercise of 1998 O stock warrants (6/30/1998 Shareholder
    meeting)                            |                  |  | 287,289 s  |                    |  |  |  155,136.06   |            |           |                    |  195,239.35   |         |        |  |  10,490,115.60 |       |  |  | 19,426,140 |  |  |  |  0.54 | 
|     | 06/20/2001 |  |          | Exercise of 1999 A stock warrants (12/9/1999 Shareholder
    meeting)                            |                  |  | 120,000 s  |                    |  |  |  64,800       |            |           |                    |  520,604.23   |         |        |  |  10,554,915.60 |       |  |  | 19,546,140 |  |  |  |  0.54 | 
|     | 06/20/2001 |  |          | Exercise of stock options
    (Plans 1996 and 1999)                                              |                  |  | 95,274      |                    |  |  |  51,447.96    |            |           |                    |  169,508.03   |         |        |  |  10,606,363.56 |       |  |  | 19,641,414 |  |  |  |  0.54 | 
|     | 10/17/2001 |  |          | Exercise of stock options
    (Plans 1996 and 1999)                                              |                  |  | 16,562      |                    |  |  |  8,943.48     |            |           |                    |  11,252.91    |         |        |  |  10,615,307.04 |       |  |  | 19,657,976 |  |  |  |  0.54 | 
|     | 01/23/2002 |  |          | Exercise of 1998 O stock warrants (6/30/1998 Shareholder
    meeting)                            |                  |  | 197,710 s  |                    |  |  |  106,763.40   |            |           |                    |  134,362.16   |         |        |  |  10,722,070.44 |       |  |  | 19,855,686 |  |  |  |  0.54 | 
|     | 06/04/2002 |  |          | Exercise of stock options
    (Plans 1996 and 1999)                                              |                  |  | 10,874      |                    |  |  |  5,871.96     |            |           |                    |  13,797.52    |         |        |  |  10,727,942.40 |       |  |  | 19,866,560 |  |  |  |  0.54 | 
|     | 09/11/2002 |  |          | Exercise of stock options (Plan 1996)                                                            |                  |  | 16,250      |                    |  |  |  8,775        |            |           |                    |  19,825       |         |        |  |  10,736,717.40 |       |  |  | 19,882,810 |  |  |  |  0.54 | 
|     | 04/23/2003 |  |          | Cancellatio of common stock held in treasury                                                     |                  |  | n 1,080,173 |                    |  |  |  583,293.42   |            |           |                    |  1,154,914.76 |         |        |  |  10,153,423.98 |       |  |  | 18,802,637 |  |  |  |  0.54 | 
|     | 07/25/2003 |  |          | Exercise of stock options (Plan 1999)                                                            |                  |  | 2,625       |                    |  |  |  1,417.50     |            |           |                    |  3,228.75     |         |        |  |  10,154,841.48 |       |  |  | 18,805,262 |  |  |  |  0.54 | 
|     | 01/26/2004 |  |          | Exercise of stock options (Plan 1999)                                                            |                  |  | 23,125      |                    |  |  |  12,487.50    |            |           |                    |  28,443.75    |         |        |  |  10,167,328.98 |       |  |  | 18,828,387 |  |  |  |  0.54 | 
|     | 07/21/2004 |  |          | Exercise of stock options
    (Plans 1999 and 2001) and O 1998 and
    BSA F 2003 stock warrants |                  |  | 163,533     |                    |  |  |  88,307.82    |            |           |                    |  245,844.59   |         |        |  |  10,255,636.80 |       |  |  | 18,991,920 |  |  |  |  0.54 | 
|     | 10/21/2004 |  |          | Exercise of stock options
    (Plans 1999 and 2001)                                              |                  |  | 76,150      |                    |  |  |  41,121       |            |           |                    |  103,564      |         |        |  |  10,296,757.80 |       |  |  | 19,068,070 |  |  |  |  0.54 | 
|     | 10/21/2004 |  |          | Cancellatio of common stock held in treasury                                                     |                  |  | n 694,454   |                    |  |  |  375,005.16   |            |           |                    |                |         |        |  |  9,921,752.64  |       |  |  | 18,373,616 |  |  |  |  0.54 | 
|     | 07/21/2005 |  |          | Exercise of stock options
    (Plans 1999, 2000 and 2001)                                        |                  |  | 151,105     |                    |  |  |  81,596.70    |            |           |                    |  244,856.80   |         |        |  |  10,003,349.34 |       |  |  | 18,524,721 |  |  |  |  0.54 | 
|     | 09/20/2005 |  |          | Exercise of stock options
    (Plans 1999 and 2001)
    (1)                                      |                  |  | 34,192      |                    |  |  |  18,463.68    |            |           |                    |  57,281.57    |         |        |  |  10,021,813.02 |       |  |  | 18,558,913 |  |  |  |  0.54 | 






|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|(1) | This movement has not yet been officially approved by the board
    of directors

97



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|     |                               
|---- | ------------------------------
|10.6 | PREEMPTIVE SUBSCRIPTION RIGHTS

pro rata


délai de priorité







|     |                                     
|---- | ------------------------------------
|10.7 | FORM, HOLDING AND TRANSFER OF SHARES






| |                          
| | -------------------------
| | 10.7.1     Form of Shares

statuts







| |                                 
| | --------------------------------
| | 10.7.2     Holding of
    Shares



statuts




98



---



##### Table of Contents








| |                                  
| | ---------------------------------
| | 10.7.3     Transfer of
    Shares

statuts




Impôt
sur les opérations de Bourse   


Impôt sur les opérations de Bourse.







|     |                   
|---- | ------------------
|10.8 | LIQUIDATION RIGHTS

pro rata







|     |                                                        
|---- | -------------------------------------------------------
|10.9 | REQUIREMENTS FOR HOLDINGS EXCEEDING CERTAIN PERCENTAGES





1 3


statuts


99



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avis












|      |                           
|----- | --------------------------
|10.10 | PURCHASE OF OUR OWN SHARES

prestataire de services dinvestissement note dinformation


note
dinformation






100



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##### Table of Contents



pro rata


   note dinformation note
dinformation




  







|      |                          
|----- | -------------------------
|10.11 | TRADING IN OUR OWN SHARES





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the issuer may not, when executing trades under a share
    repurchase program, purchase shares at a price higher than the
    highest price of the last independent trade or the highest
    current independent bid on the trading venues where the purchase
    is carried out;                                                                                                                                                                                                                                                                                                                                        
|
| |  | when the issuer carries out the purchase of its own shares
    through derivative financial instruments, the exercise price of
    such derivative financial instruments shall not be above the
    higher of the price of the last independent trade or the highest
    current independent bid;                                                                                                                                                                                                                                                                                                                         
|
| |  | the issuer may not purchase more than 25% of the average daily
    volume of the shares in any one day on the regulated market on
    which the purchase is carried out. The average daily volume
    figure is to be based on the average daily volume traded in the
    month preceding the month of public disclosure of the program
    and fixed on that basis for the authorized period of the
    program. Where the program makes no reference to that volume,
    the average daily volume figure must be based on the average
    daily volume traded in the 20 trading days preceding the
    date of purchase.

101



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| |   |                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | selling of its own shares during the life of the program;                                                                                                
|
| |  | trading where the company becomes aware of information that, if
    disclosed, would have a significant impact on the market price
    of its securities;
|
| |  | trading during a 15-day period before the date on which the
    company makes its consolidated, annual and intermediary accounts
    public.             





| |   |                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the issuer has in place a time-schedule share repurchase
    program; or                                                                                                                                                                                                        
|
| |  | the share purchase program is lead-managed by an investment firm
    or a credit institution which makes its trading decisions in
    relation to the issuers shares independently of, and
    without influence by, the issuer with regard to the timing of
    the purchases.










|      |                                          
|----- | -----------------------------------------
|10.12 | OWNERSHIP OF SHARES BY NON-FRENCH PERSONS



autorisation préalable Code Monétaire et financier déclaration
administrative déclaration administrative







|      |                   
|----- | ------------------
|10.13 | MATERIAL CONTRACTS








|      |                  
|----- | -----------------
|10.14 | EXCHANGE CONTROLS








|      |      
|----- | -----
|10.15 | OTHER



102



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|      |                
|----- | ---------------
|10.16 | FRENCH TAXATION












| |                                                       
| | ------------------------------------------------------
| | 10.16.1     Taxation on Sale or
    Disposal of Shares





| |   |                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | you are not a French resident for French tax purposes; and                                                                                                                                                                                          
|
| |  | you have held not more than 25% of our companys droits
    aux bénéfices sociaux, (dividend rights), at any
    time during the preceding five years, either directly or
    indirectly and, as relate to individuals, alone or with
    relatives.













| |                                      
| | -------------------------------------
| | 10.16.2     Taxation of
    Dividends





| |                       
| | ----------------------
| | French Withholding Tax





| |                   
| | ------------------
| | French Tax Credits

avoir
fiscal avoir fiscal avoir fiscal


103



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 


avoir fiscal


avoir fiscal


avoir
fiscal avoir fiscal précompte précompte avoir fiscal avoir fiscal précompte


avoir fiscal




| |                    
| | -------------------
| | Tax Treaty Benefits

Territoires dOutre-Mer avoir fiscal


|                                                                                                                                                                            |  |                                                                                                                                                                                         |  |                                                                                                                                                                   |  |                                                                                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------
|Australia
    Austria
    Belgium
    Bolivia
    Brazil
    Burkina Faso
    Canada
    Estonia
    Finland
    Gabon
    Ghana
    Iceland
    India
    Israel
    Italy |  | Ivory Coast
    Japan
    Latvia
    Lithuania
    Luxembourg
    Malaysia
    Mali
    Malta
    Mauritius
    Mexico
    Namibia
    Netherlands
    New Zealand
    Niger
    Norway |  | Pakistan
    Senegal
    Singapore
    South Korea
    Spain
    Sweden
    Switzerland
    Togo
    Turkey
    Ukraine
    United Kingdom
    U.S.
    Venezuela |  | French Territoires dOutre-Mer and others:Mayotte
    New Caledonia
    Saint-Pierre & Miquelon



104



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| |                       
| | ----------------------
| | Dividends paid in 2004

avoir fiscal


avoir fiscal


précompte






| |                            
| | ---------------------------
| | Dividends paid from 2005 on



avoir fiscal







| |                            
| | ---------------------------
| | 10.16.3 Estate and Gift Tax








| |                   
| | ------------------
| | 10.16.4 Wealth Tax

impôt de solidarité
sur la fortune




| |   |                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | you are not a French resident for French tax purposes, and                                                                                                                   
|
| |  | you own less than 10% of our companys capital stock,
    either directly or indirectly provided such ownership does not
    enable you to exercise influence on our company.



105



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| |                                   
| | ----------------------------------
| | 10.16.5 Taxation of U.S. Investors





| |    |                                                                                                                          
| | -- | -------------------------------------------------------------------------------------------------------------------------
| | 1. | You own, directly or indirectly or through attribution, less
    than 10% of our companys share capital or voting stock,
|
| | 2. | You are any one of the following:                                                                                        



| |     |                                                                                                                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | an individual who is a citizen or resident of the U.S. for
    U.S. federal income tax purposes;                                                                                                                              
|
| | (b) | a corporation or other entity taxable as a corporation for
    U.S. federal income tax purposes created or organized in or
    under the laws of the U.S. or any state thereof (including
    the District of Columbia);      
|
| | (c) | an estate whose income is subject to U.S. federal income
    taxation regardless of its source; or                                                                                                                            
|
| | (d) | a trust if a court in the U.S. is able to exercise primary
    supervision over the administration of the trust, and if one or
    more U.S. persons have the authority to control all
    substantial decisions of the trust.



| |    |                                                                                                                                         
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------
| | 3. | You are entitled to the benefits of the U.S.-France income tax
    treaty under the Limitation on Benefits article of
    that treaty,
|
| | 4. | You are not also a resident of France,                                                                                                  
|
| | 5. | You hold your shares or ADSs of our company as capital assets,
    and                                                                  
|
| | 6. | Your functional currency is the U.S. dollar.                                                                                            











106



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|    |                      
|--- | ---------------------
|(i) | Taxation of Dividends



| |                       
| | ----------------------
| | Dividends paid in 2004



Specific Treaty benefits and procedures for Eligible US
Holders. avoir fiscal avoir fiscal


avoir fiscal, avoir fiscal.




avoir fiscal




| |                                                                  
| | -----------------------------------------------------------------
| | Treaty benefits and procedures for Non-Eligible
    U.S. Holders.





107



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avoir fiscal précompte




| |                            
| | ---------------------------
| | Dividends paid from 2005 on









avoir fiscal




108



---



##### Table of Contents







avoir fiscal








| |              
| | -------------
| | The Précompte

précompte  précompte précompte


109



---



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| |                                       
| | --------------------------------------
| | (ii)     Taxation of Capital
    Gains







| |                                                        
| | -------------------------------------------------------
| | (iii)     Passive Foreign
    Investment Company Status





If are you a U.S. Holder of our shares or ADSs, you
should consult your own tax advisor regarding the application of
the PFIC rules to your ownership of our shares or ADSs, and as
to the effects and advisability of making a mark-to-market or
deemed sale election (as discussed below) with respect to
your InfoVista shares or ADSs. Further information regarding
PFIC status and the elections is available on our official
website at www.inforvista.com. PLEASE BE ADVISED THAT EACH
SHAREHOLDER MUST MAKE AN INDIVIDUAL DETERMINATION AS TO WHETHER
TO MAKE A MARK-TO-MARKET OR DEEMED SALE ELECTION AND THE
CONSEQUENCES THEREOF. ACCORDINGLY, WE ARE UNABLE TO GIVE YOU
SPECIFIC ADVICE IN THIS REGARD, AND EACH SHAREHOLDER IS URGED TO
CONSULT HIS OR HER OWN TAX ADVISOR.




110



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Any access distribution (generally, your ratable share of
    distributions received in any taxable year that are greater than
    125% of the average annual distributions received by you in the
    three preceding taxable years (or your holding period, if
    shorter)) and any gain realized on the sale or other disposition
    (or deemed to be realized by reason of a pledge) of the shares
    or ADSs would be treated as ordinary income and would be subject
    to tax as if the excess distribution or gain had been realized
    ratably over the holding period of the shares or ADSs;
|
| |  | All gains or excess distributions allocated to prior years
    generally would be taxed at the highest applicable tax rate of
    each prior year;                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | An interest charge in respect of the deemed deferral benefit
    would be imposed on the resulting tax attributable to each of
    these prior taxable years; and                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Dividends paid by a company that was classified as a PFIC in the
    year of the dividend, or the companys previous taxable
    year, will not qualify for qualified dividend income
    status and are not eligible for the reduced rates for taxation
    available to some individual U.S. Holders.                                                                                                                                                                                                                                                                                                  





| |                        
| | -----------------------
| | Mark-to-Market Election

tm






111



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You are advised to consult your own tax advisors as to the
advisability of, and the procedure and timing of making the
mark-to-market election in connection with your holding of
shares or ADSs in any taxable year.




| |                                                                            
| | ---------------------------------------------------------------------------
| | Election to Recognize Gain on Deemed Sale upon Cessation of
    PFIC status







YOU SHOULD CONSULT WITH YOUR OWN TAX ADVISOR REGARDING ANY
DECISION TO MAKE (OR REFRAIN FROM MAKING) ANY ELECTION THAT MAY
BE AVAILABLE TO YOU. BECAUSE ANY SUCH DECISION WILL DEPEND UPON
YOUR OWN PARTICULAR TAX SITUATION AND MAY HAVE SIGNIFICANT AND
CONTINUING U.S. TAX CONSEQUENCES, WE ARE UNABLE TO GIVE
ADVICE IN THIS REGARD. FOR ADDITIONAL INFORMATION, PLEASE
CONSULT THE INSTRUCTIONS TO IRS FORM 8621 Return by a
Shareholder of a Passive Foreign Investment Company or Qualified
Election Fund.




|     |                             
|---- | ----------------------------
|(iv) | French Estate and Gift Taxes





| |   |                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | you are domiciled in France at the time of making the gift, or
    at the time of your death, or                                                                    
|
| |  | you used the shares or ADSs in conducting a business through a
    permanent establishment or fixed base in France, or you held the
    shares or ADSs for that use.



|    |                  
|--- | -----------------
|(v) | French Wealth Tax



112



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| |                                                                                
| | -------------------------------------------------------------------------------
| | (vi)                      U.S. Information
    Reporting and Backup Withholding










| |                                                    
| | ---------------------------------------------------
| | 10.16.6     Where You Can Find
    More Information










|         |                                                               
|-------- | --------------------------------------------------------------
|ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK






|     |        
|---- | -------
|11.1 | GENERAL



113



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|     |           
|---- | ----------
|11.2 | CURRENCIES





 







|     |               
|---- | --------------
|11.3 | INTEREST RATES









|     |       
|---- | ------
|11.4 | SHARES

 







|     |                    
|---- | -------------------
|11.5 | LIQUIDITY SITUATION








|     |                      
|---- | ---------------------
|11.6 | FINANCIAL INSTRUMENTS



|                          |  |                     |        |  |       |   |        | 
|------------------------- |  | ------------------- | ------ |  | ----- | - | ------ | 
|                          |  | As of June 30, 2005 |       
|                          |  |                     |       
|                          |  | Carrying            |        |  | Fair  |  
|                          |  | Amount              |        |  | Value |  
|                          |  |                     |        |  |       |  
|                          |  | (In thousands)      |       
|Cash and cash equivalents |  |                    | 8,781  |  |       |  | 8,781  | 
|Marketable securities     |  |                    | 24,965 |  |       |  | 24,965 | 
|Deposits and other assets |  |                    | 717    |  |       |  | 677    | 








|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY
    SECURITIES



114



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PART II







|         |                                                
|-------- | -----------------------------------------------
|ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES










|         |                                                             
|-------- | ------------------------------------------------------------
|ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY
    HOLDERS






|     |                                                         
|---- | --------------------------------------------------------
|14.1 | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS






PART III







|         |                        
|-------- | -----------------------
|ITEM 15. | CONTROLS AND PROCEDURES










|         |           
|-------- | ----------
|ITEM 16. | [RESERVED]






|          |                                 
|--------- | --------------------------------
|ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT






ITEM 16B.     CODE OF
ETHICS




115



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ITEM 16C.     PRINCIPAL
INDEPENDENT AUDITOR FEES AND SERVICES


Principal independent auditor fees recorded in our accounts
for the year ended June 30, 2005 were as follows:


|                      |           |                                        |     |     |                        |  |  |              |   |   |      |     |  |      |  |     |      |   |     |      |  |   |      |    |  |  |  |     |   |   |    |    | 
|--------------------- | --------- | -------------------------------------- | --- | --- | ---------------------- |  |  | ------------ | - | - | ---- | --- |  | ---- |  | --- | ---- | - | --- | ---- |  | - | ---- | -- |  |  |  | --- | - | - | -- | -- | 
|                      |           | Ernst & Young                          |     |     |                        |  |  |              |   |   |     
|                      |           | and other                              |     |     | PricewaterhouseCoopers |  |  |             
|                      |           | member firms(1)                        |     |     | and other member firms |  |  | S&W Associés |  
|                      |           |                                        |     |     |                        |  |  |              |  
|                      |           | 2005                                   |     |     | 2005                   |  |  | 2005         |   |   | 2005 |     |  | 2004 |  |     | 2005 |   |     | 2005 |  |   | 2004 |   
|                      |           |                                        |     |     |                        |  |  |              |   |   |      |     |  |      |  |     |      |   |     |      |  |   |      |   
|                      |           | (In thousands unless otherwise stated) |    
|Audit fees            |           |                                       | 225 |     |                        |  |  |              |   |  | 60   |     |  |      |  |     |      |  | 206 |      |  |  | 39   |    |  |  |  |     |   |  | 29 |   
|Audit-related fees    |           |                                        |    |     |                        |  |  |              |   |   | 2    |     |  |      |  |     |      |   | 18  |      |  |   |     |    |  |  |  |     |   |   |   |   
|                      |           |                                        |     |     |                        |  |  |              |   |   |      |     |  |      |  |     |      |   |     |      |  |   |      |   
|                      | Sub-total |                                        |     | 225 |                        |  |  | 100          | % |   |      | 62  |  |      |  | 4   | %    |   |     | 224  |  |   |      | 39 |  |  |  | 100 | % |   |    | 29 | 
|Legal, tax and social |           |                                        |    |     |                        |  |  |              |   |   | 53   |     |  |      |  |     |      |   | 39  |      |  |   |     |    |  |  |  |     |   |   |   |   
|Services fees        |           |                                        |    |     |                        |  |  |              |   |   |     |     |  |      |  |     |      |   |    |      |  |   |     |    |  |  |  |     |   |   |   |   
|All other fees        |           |                                        |    |     |                        |  |  |              |   |   |     |     |  |      |  |     |      |   | 11  |      |  |   |     |    |  |  |  |     |   |   |   |   
|                      |           |                                        |     |     |                        |  |  |              |   |   |      |     |  |      |  |     |      |   |     |      |  |   |      |   
|                      | Sub-total |                                        |     |    |                        |  |  |             |   |   |      | 53  |  |      |  | 96  | %    |   |     | 50   |  |   |      | 0  |  |  |  |    |   |   |    | 0  | 
|                      |           |                                        |     |     |                        |  |  |              |   |   |      |     |  |      |  |     |      |   |     |      |  |   |      |   
|                      | Total     |                                        |    | 225 |                        |  |  | 100          | % |   |     | 115 |  |      |  | 100 | %    |   |    | 274  |  |   |     | 39 |  |  |  | 100 | % |   |   | 29 | 
|                      |           |                                        |     |     |                        |  |  |              |   |   |      |     |  |      |  |     |      |   |     |      |  |   |      |   






|    |                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------
|(1) | Ernst & Young has been appointed statutory auditor of
    InfoVista S.A. for the year ended June 30, 2005.








ITEM 16D.     EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES




116



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ITEM 16E.     PURCHASES OF
EQUITY SECURITIES


Issuer Purchases of Equity Securities


|               |       |                  |        |         |                      |                        |      |                    |                     |  |                       |  |  |  |         |  | 
|-------------- | ----- | ---------------- | ------ | ------- | -------------------- | ---------------------- | ---- | ------------------ | ------------------- |  | --------------------- |  |  |  | ------- |  | 
|               |       |                  |        |         |                      | Total Number of Shares |      |                    | Maximum Number of   | 
|               |       |                  |        |         |                      | Purchased as Part of   |      |                    | Shares that May Yet | 
|               |       | Total Number of  |        |         | Average Price Paid   |                        |      | Publicly Announced |                     |  | Be Purchased Under    | 
|Period         |       | Shares purchased |        |         | per Share (in euros) |                        |      | Plans or Programs  |                     |  | the Plans or Programs | 
|               |       |                  |        |         |                      |                        |      |                    |                     |  |                       | 
|July 2004      |       |                  |       |         |                      |                        |     |                    |                     |  | 1,835,454             |  |  |  | 63,738  | 
|August 2004    |       |                  |       |         |                      |                        |     |                    |                     |  | 1,835,454             |  |  |  | 64,188  | 
|September 2004 |       |                  |       |         |                      |                        |     |                    |                     |  | 1,835,454             |  |  |  | 66,763  | 
|October 2004   |       |                  |       |         |                      |                        |     |                    |                     |  | 1,140,000             |  |  |  | 767,307 | 
|November 2004  |       |                  |       |         |                      |                        |     |                    |                     |  | 1,140,000             |  |  |  | 697,862 | 
|December 2004  |       |                  |       |         |                      |                        |     |                    |                     |  | 1,140,000             |  |  |  | 702,149 | 
|January 2005   |       |                  |       |         |                      |                        |     |                    |                     |  | 1,140,000             |  |  |  | 702,149 | 
|February 2005  |       |                  |       |         |                      |                        |     |                    |                     |  | 1,139,840             |  |  |  | 705,102 | 
|March 2005     |       |                  |       |         |                      |                        |     |                    |                     |  | 1,139,840             |  |  |  | 709,665 | 
|April 2005     |       |                  |       |         |                      |                        |     |                    |                     |  | 1,139,840             |  |  |  | 711,952 | 
|May 2005       |       |                  |       |         |                      |                        |     |                    |                     |  | 1,139,840             |  |  |  | 711,327 | 
|June 2005      |       |                  | 31,286 |         |                      |                        | 4.52 |                    |                     |  | 1,151,854             |  |  |  | 700,618 | 
|July 2005      |       |                  | 79,569 |         |                      |                        | 5.12 |                    |                     |  | 1,153,687             |  |  |  | 698,785 | 
|August 2005    |       |                  | 52,934 |         |                      |                        | 4.96 |                    |                     |  | 1,187,520             |  |  |  | 665,152 | 
|September 2005 |       |                  | 21,580 |         |                      |                        | 4.82 |                    |                     |  | 1,198,724             |  |  |  | 657,167 | 
|               |       |                  |        |         |                      |                        |      |                    |                     |  |                       | 
|               | Total |                  |        | 185,369 |                      |                        |      |                    |                     |  |                       |  |  |  |         |  | 
|               |       |                  |        |         |                      |                        |      |                    |                     |  |                       | 

117



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|         |                     
|-------- | --------------------
|ITEM 17. | FINANCIAL STATEMENTS






|         |                     
|-------- | --------------------
|ITEM 18. | FINANCIAL STATEMENTS

INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS


|                                                                                                         |  |         |            | 
|-------------------------------------------------------------------------------------------------------- |  | ------- | ---------- | 
|                                                                                                         |  | Page(s) |           
|                                                                                                         |  |         |           
|Consolidated Financial Statements                                                                        |  |         |            | 
|Report of independent accountant                                                                         |  |         | F-1        | 
|Consolidated Statements of Operations for
    the years ended June 30, 2005, 2004 and 2003               |  |         | F-3        | 
|Consolidated Balance Sheets as of
    June 30, 2005 and 2004                                             |  |         | F-4        | 
|Consolidated Statements of
    Stockholders Equity for the years ended June 30,
    2005, 2004 and 2003 |  |         | F-5        | 
|Consolidated Statements of Cash Flows for
    the years ended June 30, 2005, 2004 and 2003               |  |         | F-6        | 
|Notes to the Consolidated Financial
    Statements                                                       |  |         | F-7  F-28 | 

118



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ITEM 19.     EXHIBITS


| |      |  |  |                                                                                                                                                                                                                                                                                                               
| | ---- |  |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1    |  |  | Statuts,or by-laws, of InfoVista (unofficial English
    translation up to date as of July 21, 2005)                                                                                                                                                                                                          
| | 4.1  |  |  | License to Commercialize ObjectStore,
    ObjectStore Performance Expert and ObjectStore
    Runtime, between eXcelon Corporation and InfoVista dated
    August 23, 2000** (incorporated by reference to
    exhibit 4.1 to Form 20-F, filed on December 8,
    2000, Commission File Number 000-30838)
| | 4.2  |  |  | 1996 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 10.5 to Form F-1
    filed on June 22, 2000, Commission File
    Number 333-12160)                                                                                                                          
| | 4.3  |  |  | 1999 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 10.6 to Form F-1
    filed on June 22, 2000, Commission File
    Number 333-12160)                                                                                                                          
| | 4.4  |  |  | 2000 Stock Option Plan, as amended (unofficial English
    translation) (incorporated by reference to exhibit 10.7 to
    Form F-1 filed on June 22, 2000, Commission File
    Number 333-12160)                                                                                                              
| | 4.5  |  |  | 2001 Stock Option Plan, as amended (unofficial English
    translation) (incorporated by reference to exhibit 4.3 to
    Form S-8 filed on January 24, 2002, Commission File
    Number 333-81300)                                                                                                            
| | 4.6  |  |  | 2003 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 4.6 to Form 20-F
    filed on October 23, 2003, Commission File Number 000-30838)                                                                                                                           
| | 4.7  |  |  | 2004 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 4.6 to Form 20-F filed on
    October 1, 2004, Commission File Number 000-30838).                                                                                                                           
| | 4.8  |  |  | 2005 Stock Option Plan (unofficial English translation)                                                                                                                                                                                                                                                       
| | 4.9  |  |  | Employment Agreement dated January 26, 2004 between
    InfoVista SA. and Gad Tobaly (incorporated by reference to
    exhibit 4.6 to Form 20-F filed on October 1, 2004,
    Commission File Number 000-3083).                                                                                               
| | 8    |  |  | Subsidiaries of the Registrant (see Information on the
    Company  General Information Concerning the Share
    capital of the Company  Subsidiaries and
    Investments)                                                                                                                                
| | 10.1 |  |  | Consent of Ernst & Young Audit.                                                                                                                                                                                                                                                                               
| | 10.2 |  |  | Consent of PricewaterhouseCoopers Audit.                                                                                                                                                                                                                                                                      
| | 12.1 |  |  | Certification of the Chief Executive Officer pursuant to
    Section 302 of the Sarbanes Oxley Act of 2002                                                                                                                                                                                                    
| | 12.2 |  |  | Certification of the Chief Financial Officer pursuant to
    Section 302 of the Sarbanes Oxley Act of 2002                                                                                                                                                                                                    
| | 13.1 |  |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                                                                                                                                                               

119



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












| |                                  
| | ---------------------------------
| | ERNST & YOUNG Audit              
|
| | Represented by Jean-Yves Jégourel





F-1



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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM















F-2



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##### Table of Contents



INFOVISTA





CONSOLIDATED STATEMENTS OF OPERATIONS


(In thousands, except for share and per share data)


|                                                      |                                             |                     |            |        |      |   |            |        |   |   |            |        |  
|----------------------------------------------------- | ------------------------------------------- | ------------------- | ---------- | ------ | ---- | - | ---------- | ------ | - | - | ---------- | ------ | -
|                                                      |                                             | Year Ended June 30, |           
|                                                      |                                             |                     |           
|                                                      |                                             | 2005                |            |        | 2004 |   |            | 2003   |  
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Revenues                                              |                                             |                     |            |        |      |   |            |        |   |   |            |       
|                                                      | License revenues                            |                     |           | 19,049 |      |   |           | 16,076 |   |   |           | 13,246 |  
|                                                      | Service revenues                            |                     |            | 15,292 |      |   |            | 12,611 |   |   |            | 12,276 |  
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Total revenues (Note 14)                              |                                             |                     | 34,341     |        |      |   | 28,687     |        |   |   | 25,522     |       
|Cost of revenues                                      |                                             |                     |            |        |      |   |            |        |   |   |            |       
|                                                      | Cost of licenses                            |                     |            | 857    |      |   |            | 681    |   |   |            | 914    |  
|                                                      | Cost of services                            |                     |            | 5,917  |      |   |            | 5,722  |   |   |            | 6,215  |  
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Total cost of revenues                                |                                             |                     | 6,774      |        |      |   | 6,403      |        |   |   | 7,129      |       
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Gross profit                                          |                                             |                     | 27,567     |        |      |   | 22,284     |        |   |   | 18,393     |       
|Operating expenses                                    |                                             |                     |            |        |      |   |            |        |   |   |            |       
|                                                      | Sales and marketing expenses                |                     |            | 15,396 |      |   |            | 14,802 |   |   |            | 16,513 |  
|                                                      | Research and development expenses (Note 15) |                     |            | 6,651  |      |   |            | 6,081  |   |   |            | 7,036  |  
|                                                      | General and administrative expenses         |                     |            | 5,574  |      |   |            | 4,346  |   |   |            | 5,167  |  
|                                                      | Stock compensation expense                  |                     |            |       |      |   |            | 44     |   |   |            | 38     |  
|                                                      | Restructuring costs (Note 17)               |                     |            |       |      |   |            | 2,495  |   |   |            | 1,590  |  
|                                                      | Impairment of fixed assets                  |                     |            | 4      |      |   |            | 608    |   |   |            | 150    |  
|                                                      | Amortization of acquired intangibles        |                     |            | 158    |      |   |            | 380    |   |   |            | 380    |  
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Total operating expenses                              |                                             |                     | 27,783     |        |      |   | 28,756     |        |   |   | 30,874     |       
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Operating loss                                        |                                             |                     | (216       | )      |      |   | (6,472     | )      |   |   | (12,481    | )     
|Other income (expense):                               |                                             |                     |            |        |      |   |            |        |   |   |            |       
|                                                      | Realized gains on marketable securities     |                     |            | 440    |      |   |            | 622    |   |   |            | 1,218  |  
|                                                      | Net foreign currency transaction losses     |                     |            | (46    | )    |   |            | (109   | ) |   |            | (231   | )
|                                                      | Other (expense) income                      |                     |            | (18    | )    |   |            | 9      |   |   |            | 5      |  
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Income (Loss) before income taxes                     |                                             |                     | 160        |        |      |   | (5,950     | )      |   |   | (11,489    | )     
|                                                      | Income tax expense (Note 8)                 |                     |            | (36    | )    |   |            | (254   | ) |   |            | (36    | )
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Net income (loss)                                     |                                             |                    | 124        |        |      |  | (6,204     | )      |   |  | (11,525    | )     
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Basic net income (loss) per share                     |                                             |                    | 0.01       |        |      |  | (0.35      | )      |   |  | (0.61      | )     
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Diluted net income (loss) per share                   |                                             |                    | 0.01       |        |      |  | (0.35      | )      |   |  | (0.61      | )     
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Basic weighted average shares outstanding (Note 20)   |                                             |                     | 17,271,171 |        |      |   | 17,778,929 |        |   |   | 18,843,308 |       
|                                                      |                                             |                     |            |        |      |   |            |        |  
|Diluted weighted average shares outstanding (Note 20) |                                             |                     | 20,936,182 |        |      |   | 17,778,929 |        |   |   | 18,843,308 |       
|                                                      |                                             |                     |            |        |      |   |            |        |  



F-3



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##### Table of Contents



INFOVISTA





CONSOLIDATED BALANCE SHEETS


(In thousands, except for share and per share data)


|                                                                                                                                                                            |                           |                |         |                |      |   |         |        | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | -------------- | ------- | -------------- | ---- | - | ------- | ------ | 
|                                                                                                                                                                            |                           | As of June 30, |        
|                                                                                                                                                                            |                           |                |        
|                                                                                                                                                                            |                           | 2005           |         |                | 2004 |  
|                                                                                                                                                                            |                           |                |         |                |      |  
|                                                                                                                                                                            |                           |                |         | (1)As restated |     
|ASSETS                                                                                                                                                                     
|Cash and cash equivalents                                                                                                                                                   |                           |               | 8,781   |                |      |  | 5,070   |       
|Marketable securities (Note 2)                                                                                                                                              |                           |                | 24,965  |                |      |   | 27,606  |       
|Trade receivables, net of allowance of
    253 and
    387
    (Note 18)                                                                                                  |                           |                | 11,310  |                |      |   | 8,367   |       
|Prepaid expenses and other current assets (Note 3)                                                                                                                          |                           |                | 2,071   |                |      |   | 2,399   |       
|                                                                                                                                                                            |                           |                |         |                |      |  
|                                                                                                                                                                            | Total current assets      |                |         | 47,127         |      |   |         | 43,442 | 
|Fixed assets, net (Note 4)                                                                                                                                                  |                           |                | 2,200   |                |      |   | 2,449   |       
|Intangible assets, net (Note 5)                                                                                                                                             |                           |                | 1,158   |                |      |   | 1,234   |       
|Investment in equity securities (Note 6)                                                                                                                                    |                           |                | 1,027   |                |      |   | 1,027   |       
|Deposits and other assets (Note 7)                                                                                                                                          |                           |                | 717     |                |      |   | 701     |       
|                                                                                                                                                                            |                           |                |         |                |      |  
|                                                                                                                                                                            | Total long-term assets    |                |         | 5,102          |      |   |         | 5,411  | 
|                                                                                                                                                                            |                           |                |         |                |      |  
|Total assets                                                                                                                                                                |                           |               | 52,229  |                |      |  | 48,853  |       
|                                                                                                                                                                            |                           |                |         |                |      |  
|                                                                                                                                                                           
|LIABILITIES & STOCKHOLDERS EQUITY                                                                                                                                         
|Trade payables                                                                                                                                                              |                           |               | 2,465   |                |      |  | 2,614   |       
|Accrued salaries and commissions                                                                                                                                            |                           |                | 2,523   |                |      |   | 1,680   |       
|Accrued social security and other payroll taxes                                                                                                                             |                           |                | 1,026   |                |      |   | 818     |       
|Deferred revenue                                                                                                                                                            |                           |                | 7,202   |                |      |   | 5,453   |       
|Accrued VAT                                                                                                                                                                 |                           |                | 1,541   |                |      |   | 1,384   |       
|Other current liabilities                                                                                                                                                   |                           |                | 363     |                |      |   | 537     |       
|                                                                                                                                                                            |                           |                |         |                |      |  
|                                                                                                                                                                            | Total current liabilities |                |         | 15,120         |      |   |         | 12,486 | 
|Other long term liabilities                                                                                                                                                 |                           |                | 113     |                |      |   | 113     |       
|Commitments and contingencies (Note 10)                                                                                                                                     |                           |                |         |                |      |   |         |       
|Stockholders equity                                                                                                                                                        |                           |                |         |                |      |   |         |       
|Common stock, par value of
    0.54 per
    share (18,524,721 and 18,950,920 shares authorized and
    issued, 17,372,867 and 17,115,466 shares outstanding)
    (Note 13) |                           |                | 10,003  |                |      |   | 10,233  |       
|Capital in excess of par value of stock                                                                                                                                     |                           |                | 84,893  |                |      |   | 84,982  |       
|Accumulated deficit                                                                                                                                                         |                           |                | (52,189 | )              |      |   | (52,313 | )     
|Unrealized losses on available for sale securities                                                                                                                          |                           |                | (33     | )              |      |   | (96     | )     
|Cumulative translation adjustment                                                                                                                                           |                           |                | (1,200  | )              |      |   | (1,236  | )     
|Less common stock in treasury (1,151,854 and
    1,835,454 shares), at cost                                                                                                 |                           |                | (4,478  | )              |      |   | (5,316  | )     
|                                                                                                                                                                            |                           |                |         |                |      |  
|Total stockholders equity                                                                                                                                                  |                           |                | 36,996  |                |      |   | 36,254  |       
|                                                                                                                                                                            |                           |                |         |                |      |  
|Total liabilities and stockholders equity                                                                                                                                  |                           |               | 52,229  |                |      |  | 48,853  |       
|                                                                                                                                                                            |                           |                |         |                |      |  






|    |                                                                                            
|--- | -------------------------------------------------------------------------------------------
|(1) | Presentation of balance sheet for prior period has been restated
    as described in Note 2



F-4



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##### Table of Contents



INFOVISTA





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


(In thousands, except for share and per share data)


|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |   |  |   |     |   |  |   |         |  
|------------------------------------------------ |  | ---------- | ---------- | - | ---------- |  | ---------- | ------ |  | ---------- | -------- | --------- | ----------- | ------------ | ------ | - | ------------- | - | ------ | ------------ |  | - | ------- | - |  | - | --- | - |  | - | ------- | -
|                                                 |  |            |            |   |            |  |            |        |  | Capital in |          |           | Accumulated |              |        |   |               |  
|                                                 |  | Numbers of |            |   | Numbers of |  |            |        |  |            |          | Excess of |             |              | Other  |   |               |   |        |             
|                                                 |  | Ordinary   |            |   | Treasury   |  |            | Common |  |            | Treasury |           |             | Par Value of |        |   | Comprehensive |   |        | Deferred     |  |   |        
|                                                 |  | Shares     |            |   | Shares     |  |            | Stock  |  |            | Stock    |           |             | Stock        |        |   | Loss          |   |        | Compensation |  |   | Total   |  
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  
|Balance, June 30, 2002                           |  |            | 19,866,560 |   |            |  | 6,753      |        |  |           | 10,728   |           |             |             | (72    | ) |               |  | 85,839 |              |  |  | (35,839 | ) |  |  | (38 | ) |  |  | 60,618  |  
|Exercise of stock options                        |  |            | 16,250     |   |            |  |           |        |  |            | 9        |           |             |              |       |   |               |   | 10     |              |  |   |        |   |  |   |    |   |  |   | 19      |  
|Subscription and exercise of stock warrants      |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   | 3      |              |  |   |        |   |  |   |    |   |  |   | 3       |  
|Stock compensation expense                       |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   |        |   |  |   | 38  |   |  |   | 38      |  
|Purchase of treasury stock                       |  |            |           |   |            |  | 1,938,054  |        |  |            |         |           |             |              | (2,912 | ) |               |   |       |              |  |   |        |   |  |   |    |   |  |   | (2,912  | )
|Common stock issued from treasury                |  |            |           |   |            |  | (100,000   | )      |  |            |         |           |             |              | 193    |   |               |   | 17     |              |  |   |        |   |  |   |    |   |  |   | 210     |  
|Retirement of treasury stock                     |  |            | (1,080,173 | ) |            |  | (1,080,173 | )      |  |            | (584     | )         |             |              | 1,737  |   |               |   | (1,153 | )            |  |   |        |   |  |   |    |   |  |   | 0       |  
|Components of comprehensive loss:                |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |   |  |   |     |   |  |   |         |  
|Net loss                                         |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | (11,525 | ) |  |   |    |   |  |   | (11,525 | )
|Currency translation adjustment                  |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | (370    | ) |  |   |    |   |  |   | (370    | )
|Unrealized gain on available for sale securities |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | 337     |   |  |   |    |   |  |   | 337     |  
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  
|Comprehensive loss                               |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |   |  |   |     |   |  |   | (11,558 | )
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  
|Balance, June 30, 2003                           |  |            | 18,802,637 |   |            |  | 764,634    |        |  |            | 10,153   |           |             |              | (1,054 | ) |               |   | 84,716 |              |  |   | (47,397 | ) |  |   | 0   |   |  |   | 46,418  |  
|Exercise of stock options                        |  |            | 124,950    |   |            |  |           |        |  |            | 67       |           |             |              |       |   |               |   | 182    |              |  |   |        |   |  |   |    |   |  |   | 249     |  
|Subscription and exercise of stock warrants      |  |            | 23,333     |   |            |  |           |        |  |            | 13       |           |             |              |       |   |               |   | 17     |              |  |   |        |   |  |   |    |   |  |   | 30      |  
|Stock compensation expense                       |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   | 44     |              |  |   |        |   |  |   |    |   |  |   | 44      |  
|Purchase of treasury stock                       |  |            |           |   |            |  | 1,100,820  |        |  |            |         |           |             |              | (4,310 | ) |               |   |       |              |  |   |        |   |  |   |    |   |  |   | (4,310  | )
|Common stock issued from treasury                |  |            |           |   |            |  | (30,000    | )      |  |            |         |           |             |              | 48     |   |               |   | 23     |              |  |   |        |   |  |   |    |   |  |   | 71      |  
|Components of comprehensive loss:                |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |   |  |   |     |   |  |   |         |  
|Net loss                                         |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | (6,204  | ) |  |   |    |   |  |   | (6,204  | )
|Currency translation adjustment                  |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | (98     | ) |  |   |    |   |  |   | (98     | )
|Unrealized gain on available for sale securities |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | 54      |   |  |   |    |   |  |   | 54      |  
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  
|Comprehensive loss                               |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |   |  |   |     |   |  |   | (6,248  | )
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  
|Balance, June 30, 2004                           |  |            | 18,950,920 |   |            |  | 1,835,454  |        |  |            | 10,233   |           |             |              | (5,316 | ) |               |   | 84,982 |              |  |   | (53,645 | ) |  |   | 0   |   |  |   | 36,254  |  
|Exercise of stock options                        |  |            | 268,255    |   |            |  | (1,160     | )      |  |            | 145      |           |             |              | 2      |   |               |   | 426    |              |  |   |        |   |  |   |    |   |  |   | 573     |  
|Purchase of treasury stock                       |  |            |           |   |            |  | 31,286     |        |  |            |         |           |             |              | (141   | ) |               |   |       |              |  |   |        |   |  |   |    |   |  |   | (141    | )
|Retirement of treasury stock                     |  |            | (694,454   | ) |            |  | (694,454   | )      |  |            | (375     | )         |             |              | 951    |   |               |   | (576   | )            |  |   |        |   |  |   |    |   |  |   | 0       |  
|Common stock issued from treasury                |  |            |           |   |            |  | (19,272    | )      |  |            |          |           |             |              | 26     |   |               |   | 61     |              |  |   |        |   |  |   |    |   |  |   | 87      |  
|Components of comprehensive income:              |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |   |  |   |     |   |  |   |         |  
|Net income                                       |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | 124     |   |  |   |    |   |  |   | 124     |  
|Currency translation adjustment                  |  |            |           |   |            |  |           |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   | 36      |   |  |   |    |   |  |   | 36      |  
|Unrealized gain on available for sale securities |  |            |           |   |            |  |           |        |  |            |         |           |             |              |       |   |               |   |       |              |  |   | 63      |   |  |   |    |   |  |   | 63      |  
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  
|Comprehensive income                             |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |   |  |   |     |   |  |   | 223     |  
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  
|Balance, June 30, 2005                           |  |            | 18,524,721 |   |            |  | 1,151,854  |        |  |           | 10,003   |           |             |             | (4,478 | ) |               |  | 84,893 |              |  |  | (53,422 | ) |  |  | 0   |   |  |  | 36,996  |  
|                                                 |  |            |            |   |            |  |            |        |  |            |          |           |             |              |        |   |               |   |        |              |  |   |         |  



F-5



---



##### Table of Contents



INFOVISTA





CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands, except for share and per share data)


|                                                                                             |                                                           |                    |        |                |      |   |                |        |   |   |         |        |  
|-------------------------------------------------------------------------------------------- | --------------------------------------------------------- | ------------------ | ------ | -------------- | ---- | - | -------------- | ------ | - | - | ------- | ------ | -
|                                                                                             |                                                           | Year Ended June 30 |       
|                                                                                             |                                                           |                    |       
|                                                                                             |                                                           | 2005               |        |                | 2004 |   |                | 2003   |  
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  
|                                                                                             |                                                           |                    |        | (1)As restated |      |   | (1)As restated |       
|Cash flows from operating activities:                                                        |                                                           |                    |        |                |      |   |                |        |   |   |         |       
|Net income (loss)                                                                            |                                                           |                   | 124    |                |      |  | (6,204         | )      |   |  | (11,525 | )     
|Adjustments to reconcile net income (loss) to net cash
    provided by operating activities: |                                                           |                    |        |                |      |   |                |        |   |   |         |       
|                                                                                             | Depreciation of fixed assets                              |                    |        | 912            |      |   |                | 1,033  |   |   |         | 1,218  |  
|                                                                                             | Loss on disposal and impairment of fixed assets           |                    |        | 36             |      |   |                | 608    |   |   |         | 161    |  
|                                                                                             | Amortization of intangibles                               |                    |        | 469            |      |   |                | 647    |   |   |         | 633    |  
|                                                                                             | Stock compensation expense                                |                    |        |               |      |   |                | 44     |   |   |         | 38     |  
|                                                                                             | Provision for bad debt                                    |                    |        | (20            | )    |   |                | 113    |   |   |         | (3     | )
|                                                                                             | Sale (Purchase) of trading securities, net                |                    |        | 2,703          |      |   |                | 11,419 |   |   |         | 13,788 |  
|Changes in operating assets and liabilities:                                                 |                                                           |                    |        |                |      |   |                |        |   |   |         |       
|                                                                                             | Trade receivables                                         |                    |        | (2,757         | )    |   |                | (3,325 | ) |   |         | 2,419  |  
|                                                                                             | Prepaid expenses and other current assets                 |                    |        | 336            |      |   |                | 201    |   |   |         | (409   | )
|                                                                                             | Deposits and other assets                                 |                    |        | (13            | )    |   |                | (192   | ) |   |         | 136    |  
|                                                                                             | Trade payables                                            |                    |        | (193           | )    |   |                | (783   | ) |   |         | (1,079 | )
|                                                                                             | Accrued expenses                                          |                    |        | 1,017          |      |   |                | 79     |   |   |         | 460    |  
|                                                                                             | Deferred revenue                                          |                    |        | 1,640          |      |   |                | 1,227  |   |   |         | 958    |  
|                                                                                             | Other current liabilities                                 |                    |        | (16            | )    |   |                | 118    |   |   |         | (454   | )
|                                                                                             | Other long term liabilities                               |                    |        | 1              |      |   |                | 79     |   |   |         | 10     |  
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  
|Net cash provided by operating activities                                                    |                                                           |                    | 4,239  |                |      |   | 5,064          |        |   |   | 6,351   |       
|Cash flows from investing activities:                                                        |                                                           |                    |        |                |      |   |                |        |   |   |         |       
|                                                                                             | Purchase of fixed assets                                  |                    |        | (732           | )    |   |                | (487   | ) |   |         | (702   | )
|                                                                                             | Purchase of investments in an affiliate                   |                    |        |               |      |   |                | (90    | ) |   |         | (937   | )
|                                                                                             | Purchase of intangible assets                             |                    |        | (337           | )    |   |                | (113   | ) |   |         | (75    | )
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  
|Net cash used by investing activities                                                        |                                                           |                    | (1,069 | )              |      |   | (690           | )      |   |   | (1,714  | )     
|Cash flows from financing activities:                                                        |                                                           |                    |        |                |      |   |                |        |   |   |         |       
|                                                                                             | Payments of debt                                          |                    |        |               |      |   |                |       |   |   |         | (305   | )
|                                                                                             | Proceeds from exercise of stock options                   |                    |        | 573            |      |   |                | 249    |   |   |         | 19     |  
|                                                                                             | Proceeds from subscription and exercise of stock warrants |                    |        |               |      |   |                | 30     |   |   |         | 3      |  
|                                                                                             | Purchase of treasury stock                                |                    |        | (141           | )    |   |                | (4,310 | ) |   |         | (2,912 | )
|                                                                                             | Proceeds from issuance of treasury stock                  |                    |        | 87             |      |   |                | 71     |   |   |         | 210    |  
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  
|Net cash provided (used) by financing activities                                             |                                                           |                    | 519    |                |      |   | (3,960         | )      |   |   | (2,985  | )     
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  
|Net change in cash and cash equivalents                                                      |                                                           |                    | 3,689  |                |      |   | 414            |        |   |   | 1,652   |       
|                                                                                             | Effects of exchange rate changes                          |                    |        | 22             |      |   |                | (123   | ) |   |         | (189   | )
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  
|Increase in cash and each equivalents                                                        |                                                           |                    | 3,711  |                |      |   | 291            |        |   |   | 1,463   |       
|Cash and cash equivalents at beginning of period                                             |                                                           |                    | 5,070  |                |      |   | 4,779          |        |   |   | 3,316   |       
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  
|Cash and cash equivalents at end of period                                                   |                                                           |                   | 8,781  |                |      |  | 5,070          |        |   |  | 4,779   |       
|                                                                                             |                                                           |                    |        |                |      |   |                |        |  






|    |                                                                                           
|--- | ------------------------------------------------------------------------------------------
|(1) | Presentation of cash flows for prior periods have been restated
    as described in Note 2



F-6



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##### Table of Contents



INFOVISTA





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


(In thousands, except for share and per share data)


1  SIGNIFICANT ACCOUNTING POLICIES




| |                        
| | -----------------------
| | Description of business





| |                                                          
| | ---------------------------------------------------------
| | Principles of consolidation and basis of
    presentation







|                                 |  |               |               |  |                |                 |                           |                      |  |  |      | 
|-------------------------------- |  | ------------- | ------------- |  | -------------- | --------------- | ------------------------- | -------------------- |  |  | ---- | 
|                                 |  |               |               |  |                | Commencement of |                          
|                                 |  | Country of    |               |  |                |                 | Inclusion in Consolidated |                     
|Company                          |  | Incorporation |               |  | % of Ownership |                 |                           | Financial Statements | 
|                                 |  |               |               |  |                |                 |                           |                      | 
|InfoVista S.A. (parent)          |  |               | France        |  |                |                 |                          |                      |  |  |     | 
|InfoVista Corporation            |  |               | USA           |  |                |                 | 100.00                    |                      |  |  | 1997 | 
|InfoVista UK Ltd                 |  |               | Great Britain |  |                |                 | 100.00                    |                      |  |  | 1999 | 
|InfoVista GmbH                   |  |               | Germany       |  |                |                 | 100.00                    |                      |  |  | 1999 | 
|InfoVista (Asia-Pacific) Pte Ltd |  |               | Singapore     |  |                |                 | 100.00                    |                      |  |  | 2000 | 
|InfoVista BNL NV                 |  |               | Belgium       |  |                |                 | 100.00                    |                      |  |  | 2001 | 
|InfoVista IBE SA                 |  |               | Spain         |  |                |                 | 100.00                    |                      |  |  | 2001 | 





| |                          
| | -------------------------
| | Estimates and assumptions





| |                             
| | ----------------------------
| | Foreign currency translation



F-7



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




 




| |                    
| | -------------------
| | Revenue recognition











F-8



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)








| |                 
| | ----------------
| | Cost of revenues





| |                  
| | -----------------
| | Intangible assets



|                       |  |  |           | 
|---------------------- |  |  | --------- | 
|Patents and trademarks |  |  | 10  years | 
|Acquired intangibles   |  |  | 4 years   | 





| |             
| | ------------
| | Fixed assets



|                       |  |  |           | 
|---------------------- |  |  | --------- | 
|Furniture and fixtures |  |  | 10  years | 
|Computers and hardware |  |  | 5 years   | 
|Leasehold improvements |  |  | 10  years | 
|Purchased software     |  |  | 3 years   | 



F-9



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |                                
| | -------------------------------
| | Impairment of Long Lived Assets





| |                  
| | -----------------
| | Trade receivables





| |                                                  
| | -------------------------------------------------
| | Cash, cash equivalents, and marketable securities







| |             
| | ------------
| | Income taxes





| |                                              
| | ---------------------------------------------
| | Research and development of computer software





F-10



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)






| |                                    
| | -----------------------------------
| | Fair value of financial instruments





| |                              
| | -----------------------------
| | Concentrations of credit risk





| |                           
| | --------------------------
| | Stock options and warrants





| |               
| | --------------
| | Treasury stock





| |                            
| | ---------------------------
| | Net income (loss) per share





| |                  
| | -----------------
| | Advertising costs





| |                                          
| | -----------------------------------------
| | Stock purchase options and stock warrants



F-11



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)






|                                                                                                                                                   |                                 |                     |        |       |      |   |        |                |   |   |         |       |  
|-------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ------------------- | ------ | ----- | ---- | - | ------ | -------------- | - | - | ------- | ----- | -
|                                                                                                                                                   |                                 | Year Ended June 30, |       
|                                                                                                                                                   |                                 |                     |       
|                                                                                                                                                   |                                 |                     |        | 2003  |     
|                                                                                                                                                   |                                 | 2005                |        |       | 2004 |   |        | (1)As restated |  
|                                                                                                                                                   |                                 |                     |        |       |      |   |        |                |  
|Net income (loss), as reported                                                                                                                     |                                 |                    | 124    |       |      |  | (6,204 | )              |   |  | (11,525 | )    
|Total stock-based employee compensation expense included in the
    determination of net income (loss) as reported, net of related
    tax effects |                                 |                     |       |       |      |   | 44     |                |   |   | 38      |      
|Total stock-based employee compensation expense determined under
    fair value based method for all awards, net of related tax
    effects        |                                 |                     | (1,514 | )     |      |   | (1,077 | )              |   |   | (2,859  | )    
|                                                                                                                                                   |                                 |                     |        |       |      |   |        |                |  
|Pro forma net loss                                                                                                                                 |                                 |                    | (1,390 | )     |      |  | (7,237 | )              |   |  | (14,346 | )    
|                                                                                                                                                   |                                 |                     |        |       |      |   |        |                |  
|Net income (loss) per share:                                                                                                                       |                                 |                     |        |       |      |   |        |                |   |   |         |      
|                                                                                                                                                   | Basic and diluted  as reported |                     |       | 0.01  |      |   |       | (0.35          | ) |   |        | (0.61 | )
|                                                                                                                                                   |                                 |                     |        |       |      |   |        |                |  
|                                                                                                                                                   | Basic and diluted  pro forma   |                     |       | (0.08 | )    |   |       | (0.41          | ) |   |        | (0.76 | )
|                                                                                                                                                   |                                 |                     |        |       |      |   |        |                |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For the year ended June 30, 2003, the Group previously
    disclosed a total stock-based employee compensation expense
    determined under the fair value based method of
    (7,646),
    proforma net loss of
    (19,135) and
    proforma basic and diluted net income (loss) per share of
    (1.02). During
    fiscal year 2005, the Group re-performed historical
    SFAS 123 calculations, using an external consultant. The
    Group realized that certain forfeitures were improperly
    accounted for during the year ended June 30, 2003. As a
    result, the Group has restated the above amounts for the year
    ended June 30, 2003.

F-12



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




|                                                                                 |                                                                                    |                     |       |       |      |   |       |       |   |   |       |        |  
|-------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | ------------------- | ----- | ----- | ---- | - | ----- | ----- | - | - | ----- | ------ | -
|                                                                                 |                                                                                    | Year Ended June 30, |      
|                                                                                 |                                                                                    |                     |      
|                                                                                 |                                                                                    | 2005                |       |       | 2004 |   |       | 2003  |  
|                                                                                 |                                                                                    |                     |       |       |      |   |       |       |  
|Weighted average fair value per share for stock options and
    warrants granted |                                                                                    |                     |       |       |      |   |       |       |   |   |       |       
|                                                                                 |  whose exercise price exceeds the market price of the
    stock on the grant date |                     |      | 1.26  |      |   |      | 2.13  |   |   |      | 0.86   |  
|                                                                                 |  whose exercise price equals the market price of the
    stock on the grant date  |                     |      | 1.53  |      |   |      | 1.52  |   |   |      | 1.33   |  
|Weighted average exercise price                                                  |                                                                                    |                     |       |       |      |   |       |       |   |   |       |       
|                                                                                 |  whose exercise price exceeds the market price of the
    stock on the grant date |                     |      | 3.92  |      |   |      | 3.94  |   |   |      | 1.52   |  
|                                                                                 |  whose exercise price equals the market price of the
    stock on the grant date  |                     |      | 3.79  |      |   |      | 2.32  |   |   |      | 1.84   |  
|Total fair value of stock options and warrants granted                           |                                                                                    |                    | 1,348 |       |      |  | 2,211 |       |   |  | 1,231 |       
|Weighted average assumptions:                                                    |                                                                                    |                     |       |       |      |   |       |       |   |   |       |       
|                                                                                 | Expected holding period (years)                                                    |                     |       | 5.2   |      |   |       | 3.7   |   |   |       | 3.6    |  
|                                                                                 | Risk-free interest rate                                                            |                     |       | 3.02  | %    |   |       | 2.91  | % |   |       | 3.67   | %
|                                                                                 | Volatility                                                                         |                     |       | 40.00 | %    |   |       | 84.77 | % |   |       | 102.40 | %
|                                                                                 | Expected dividend yield                                                            |                     |       | N/A   |      |   |       | N/A   |   |   |       | N/A    |  



| |                                 
| | --------------------------------
| | Recent accounting pronouncements





| |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1) Modified prospective method: Compensation cost is
    recognized beginning with the effective date of adoption based
    on the requirements of SFAS 123(R) for all share-based
    payments granted after the effective date of adoption and based
    on the requirements of SFAS 123 for all awards granted to
    employees prior to the effective date of adoption that remain
    unvested on the date of adoption.
|
| | 2) Modified retrospective method: Includes the requirements
    of the modified prospective method described above, but also
    permits restatement using amounts previously disclosed under the
    pro forma provisions of SFAS 123 either for all prior
    periods presented or prior interim periods of the year of
    adoption.                                                                                     



F-13



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)








2  MARKETABLE SECURITIES




|              |       |                     |        |           |                     |   |       |       |         |               |             |           |          |            |        |          |             |   |       |       |  |   |        |        | 
|------------- | ----- | ------------------- | ------ | --------- | ------------------- | - | ----- | ----- | ------- | ------------- | ----------- | --------- | -------- | ---------- | ------ | -------- | ----------- | - | ----- | ----- |  | - | ------ | ------ | 
|              |       | As of June 30, 2005 |        |           | As of June 30, 2004 |  
|              |       |                     |        |           |                     |  
|              |       |                     |        | Available |                     |   |       |       | Trading |               |             | Available |          |            |       
|              |       | Trading             |        |           | for Sale            |   |       |       |         | Securities(1) |             |           | for Sale |            |        | Total(1) |            
|              |       | Securities          |        |           | Securities          |   |       | Total |         |               | As restated |           |          | Securities |        |          | As restated |  
|              |       |                     |        |           |                     |   |       |       |         |               |             |           |          |            |        |          |             |  
|SICAV and FCP |       |                    | 18,998 |           |                     |  |      |       |         |              | 18,998      |           |          |           | 21,702 |          |             |  |      |       |  |  | 21,702 |       
|KLEBER 2006   |       |                     |       |           |                     |   | 5,967 |       |         |               | 5,967       |           |          |            |       |          |             |   | 5,904 |       |  |   | 5,904  |       
|              |       |                     |        |           |                     |   |       |       |         |               |             |           |          |            |        |          |             |  
|              | Total |                     |       | 18,998    |                     |   |      | 5,967 |         |               |            | 24,965    |          |            |       | 21,702   |             |   |      | 5,904 |  |   |       | 27,606 | 
|              |       |                     |        |           |                     |   |       |       |         |               |             |           |          |            |        |          |             |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For the years ended June 30, 2004 and 2003, the Group
    recorded certain investments, known as SICAV and FCP, as cash
    and cash equivalents. These highly liquid investments represent
    units of ownership in a portfolio of underlying investments that
    are primarily low risk and that are mostly, but not exclusively
    short-term (less than 90 days) fixed maturity dates. During
    fiscal year 2005, the Group reviewed the nature of these
    investments and discovered that certain of the Groups
    SICAV and FCP underlying investments contained equity
    instruments and investments whose maturity date is greater than
    3 months. As a result, the Group has restated all SICAV and
    FCP, which were previously recorded in cash and cash

F-14



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | equivalents, to short-term marketable securities in the
    accompanying consolidated financial statements. The restated
    balance sheet as of June 30, 2004 now reflects cash and
    cash equivalents totaling
    5,070
    (previously reported as
    26,772) as well
    as marketable securities totaling
    27,606
    (previously reported as
    5,904). This
    restatement also resulted in changes in the Groups
    consolidated statements of cash flows. Since cash and cash
    equivalents no longer include such investments, the net purchase
    and sale of SICAV and FCP has been presented as operating
    activities for all periods presented, as these investments have
    been designated as trading securities. The Group has also
    reclassified certain amounts related to the purchase of
    intangible assets, amortization of intangibles and changes in
    deposits and other assets in the consolidated statements of cash
    flows for the years ended June 30, 2004 and 2003. The
    restated consolidated statements of cash flows for the years
    ended June 30, 2004 and 2003 now reflect net cash provided
    by operating activities of
    5,064
    (previously reported as cash used by operating activities of
    6,468) and
    6,351
    (previously reported as cash used by operating activities of
    7,513),
    respectively, and net cash used by investing activities of
    690 (previously
    577) and
    1,714
    (previously
    1,639),
    respectively. There was no impact on net income (loss) or
    stockholders equity as a result of this restatement.

  


   


3  PREPAID EXPENSES AND OTHER CURRENT ASSETS




|                                                |  |               |       |  |      |   |       | 
|----------------------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | 
|                                                |  | As of June 30 |      
|                                                |  |               |      
|                                                |  | 2005          |       |  | 2004 |  
|                                                |  |               |       |  |      |  
|Prepaid expenses                                |  |              | 641   |  |      |  | 618   | 
|Value Added Taxes receivable                    |  |               | 1,303 |  |      |   | 1,417 | 
|Other                                           |  |               | 127   |  |      |   | 364   | 
|                                                |  |               |       |  |      |  
|Total prepaid expenses and other current assets |  |              | 2,071 |  |      |  | 2,399 | 
|                                                |  |               |       |  |      |  

F-15



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)


4  FIXED ASSETS, NET




|                         |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |   |    |   |  |   |       | 
|------------------------ |  | -------- | ----- |  | --------- | --------- | ---- | ---------- |  | - | ------- | -------- |  | --------- | -------- | - | ---- | - | -- | - |  | - | ----- | 
|                         |  |          |       |  |           | Disposals |      |            |  |   |         |          | 
|                         |  | June 30, |       |  |           |           | and  |            |  |   |         | Currency |  |           | June 30, |  
|                         |  | 2004     |       |  | Additions |           |      | Write-Offs |  |   | Reclass |          |  | Variation |          |   | 2005 |  
|                         |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |  
|Gross Value              |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |   |    |   |  |   |       | 
|Purchased software       |  |         | 1,321 |  |           |          | 66   |            |  |  | 55      |          |  |          |         |   |      |  | (2 | ) |  |  | 1,330 | 
|Computers & hardware     |  |          | 2,923 |  |           |           | 567  |            |  |   | 377     |          |  |           | (13      | ) |      |   | 1  |   |  |   | 3,101 | 
|Leasehold improvements   |  |          | 1,076 |  |           |           | 65   |            |  |   | 8       |          |  |           |         |   |      |   | 2  |   |  |   | 1,135 | 
|Furniture & fixtures     |  |          | 775   |  |           |           | 5    |            |  |   | 6       |          |  |           | 13       |   |      |   | 2  |   |  |   | 789   | 
|                         |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |  
|Total                    |  |         | 6,095 |  |           |          | 703  |            |  |  | 446     |          |  |          |         |   |      |  | 3  |   |  |  | 6,355 | 
|                         |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |  
|Accumulated Depreciation |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |   |    |   |  |   |       | 
|Purchased software       |  |         | 1,037 |  |           |          | 144  |            |  |  | 55      |          |  |          | 99       |   |      |  | (2 | ) |  |  | 1,223 | 
|Computers & hardware     |  |          | 1,756 |  |           |           | 551  |            |  |   | 349     |          |  |           | (6       | ) |      |   | (4 | ) |  |   | 1,948 | 
|Leasehold improvements   |  |          | 539   |  |           |           | 136  |            |  |   | 4       |          |  |           | (67      | ) |      |   | 12 |   |  |   | 616   | 
|Furniture & fixtures     |  |          | 314   |  |           |           | 81   |            |  |   | 2       |          |  |           | (26      | ) |      |   | 1  |   |  |   | 368   | 
|                         |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |  
|Total                    |  |         | 3,646 |  |           |          | 912  |            |  |  | 410     |          |  |          |         |   |      |  | 7  |   |  |  | 4,155 | 
|                         |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |  
|Total fixed assets, net  |  |         | 2,449 |  |           |          | (209 | )          |  |  | 36      |          |  |          |         |   |      |  | (4 | ) |  |  | 2,200 | 
|                         |  |          |       |  |           |           |      |            |  |   |         |          |  |           |          |   |      |  

5  INTANGIBLE ASSETS, NET




|                                         |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |   |   |  |  |   |       | 
|---------------------------------------- |  | -------- | ----- |  | --------- | --------- | --- | ----------- |  | - | ------- | -------- |  | --------- | -------- | - | ---- | - | - |  |  | - | ----- | 
|                                         |  |          |       |  |           | Disposals |     |             |  |   |         |          | 
|                                         |  | June 30, |       |  |           |           | and |             |  |   |         | Currency |  |           | June 30, |  
|                                         |  | 2004     |       |  | Additions |           |     | Retirements |  |   | Reclass |          |  | Variation |          |   | 2005 |  
|                                         |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |  
|Gross Value                              |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |   |   |  |  |   |       | 
|Patents & trademarks                     |  |         | 268   |  |           |          | 68  |             |  |  |        |          |  |          | (5       | ) |      |  |  |  |  |  | 331   | 
|Licenses technologies & royalty advances |  |          | 1,576 |  |           |           | 325 |             |  |   | 8       |          |  |           | 201      |   |      |   |  |  |  |   | 2,094 | 
|Acquired intangibles                     |  |          | 1,520 |  |           |           |    |             |  |   | 1,520   |          |  |           |         |   |      |   |  |  |  |   | 0     | 
|                                         |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |  
|Total                                    |  |         | 3,364 |  |           |          | 393 |             |  |  | 1,528   |          |  |          | 196      |   |      |  | 0 |  |  |  | 2,425 | 
|                                         |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |  
|Accumulated Depreciation                 |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |   |   |  |  |   |       | 
|Patents & trademarks                     |  |         | 42    |  |           |          | 44  |             |  |  |        |          |  |          | (5       | ) |      |  |  |  |  |  | 81    | 
|Licenses technologies & royalty advances |  |          | 726   |  |           |           | 267 |             |  |   | 8       |          |  |           | 201      |   |      |   |  |  |  |   | 1,186 | 
|Acquired intangibles                     |  |          | 1,362 |  |           |           | 158 |             |  |   | 1,520   |          |  |           |         |   |      |   |  |  |  |   | 0     | 
|                                         |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |  
|Total                                    |  |         | 2,130 |  |           |          | 469 |             |  |  | 1,528   |          |  |          | 196      |   |      |  | 0 |  |  |  | 1,267 | 
|                                         |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |  
|Total intangibles assets, net            |  |         | 1,234 |  |           |          | (76 | )           |  |  | 0       |          |  |          | 0        |   |      |  | 0 |  |  |  | 1,158 | 
|                                         |  |          |       |  |           |           |     |             |  |   |         |          |  |           |          |   |      |  



F-16



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)


6  INVESTMENT IN EQUITY SECURITIES







7  FAIR VALUE OF LONG TERM DEPOSITS


   


8  INCOME TAXES




|       |  |                     |        |   |      |   |        |      |  |   |         |  
|------ |  | ------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------- | -
|       |  | Year Ended June 30, |       
|       |  |                     |       
|       |  | 2005                |        |   | 2004 |   |        | 2003 | 
|       |  |                     |        |   |      |   |        |      | 
|France |  |                    | 5,154  |   |      |  | 3,120  |      |  |  | (909    | )
|Others |  |                     | (4,994 | ) |      |   | (9,070 | )    |  |   | (10,580 | )
|       |  |                     |        |   |      |   |        |      | 
|Total  |  |                    | 160    |   |      |  | (5,950 | )    |  |  | (11,489 | )
|       |  |                     |        |   |      |   |        |      | 



|                            |  |                     |     |   |      |   |      |      |  |   |     |  
|--------------------------- |  | ------------------- | --- | - | ---- | - | ---- | ---- |  | - | --- | -
|                            |  | Year Ended June 30, |    
|                            |  |                     |    
|                            |  | 2005                |     |   | 2004 |   |      | 2003 | 
|                            |  |                     |     |   |      |   |      |      | 
|Current income tax expense  |  |                    | (36 | ) |      |  | (254 | )    |  |  | (36 | )
|Deferred income tax expense |  |                     |    |   |      |   |     |      |  |   |    |  
|                            |  |                     |     |   |      |   |      |      | 
|Total                       |  |                    | (36 | ) |      |  | (254 | )    |  |  | (36 | )
|                            |  |                     |     |   |      |   |      |      | 

F-17



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |                   
| | ------------------
| | Effective tax rate



|                                                           |                                           |                     |       |      |      |   |        |       |   |   |        |       | 
|---------------------------------------------------------- | ----------------------------------------- | ------------------- | ----- | ---- | ---- | - | ------ | ----- | - | - | ------ | ----- | 
|                                                           |                                           | Year Ended June 30, |      
|                                                           |                                           |                     |      
|                                                           |                                           | 2005                |       |      | 2004 |   |        | 2003  |  
|                                                           |                                           |                     |       |      |      |   |        |       |  
|French Statutory tax rate                                  |                                           |                     | 33.83 | %    |      |   | 34.32  | %     |   |   | 34.32  | %    
|Income tax provision computed at French Statutory tax rate |                                           |                    | 54    |      |      |  | (2,042 | )     |   |  | (3,943 | )    
|                                                           | Permanent differences                     |                     |       | (237 | )    |   |        | (8    | ) |   |        | 60    | 
|                                                           | Change in valuation allowance             |                     |       | 183  |      |   |        | 2,050 |   |   |        | 4,003 | 
|                                                           | Withholding & annual minimum income taxes |                     |       | 36   |      |   |        | 254   |   |   |        | 36    | 
|                                                           |                                           |                     |       |      |      |   |        |       |  
|Income tax provision                                       |                                           |                    | 36    |      |      |  | 254    |       |   |  | 36     |      
|                                                           |                                           |                     |       |      |      |   |        |       |  



| |                                       
| | --------------------------------------
| | Deferred taxes and valuation allowance



|                               |                                  |                |         |        |      |   |         |        |  
|------------------------------ | -------------------------------- | -------------- | ------- | ------ | ---- | - | ------- | ------ | -
|                               |                                  | As of June 30, |        
|                               |                                  |                |        
|                               |                                  | 2005           |         |        | 2004 |  
|                               |                                  |                |         |        |      |  
|Deferred tax liabilities:      |                                  |                |         |        |      |   |         |       
|                               | Depreciation                     |                |        | (61    | )    |   |        | (39    | )
|                               | Others                           |                |         | (81    | )    |   |         | (29    | )
|                               |                                  |                |         |        |      |  
|Total deferred tax liabilities |                                  |                | (142    | )      |      |   | (68     | )     
|Deferred tax assets:           |                                  |                |         |        |      |   |         |       
|                               | Net operating loss carryforwards |                |         | 15,718 |      |   |         | 16,470 |  
|                               | Depreciation                     |                |         | 53     |      |   |         |       |  
|                               | Others                           |                |         | 558    |      |   |         |       |  
|                               |                                  |                |         |        |      |  
|Total deferred tax assets      |                                  |                | 16,329  |        |      |   | 16,470  |       
|Valuation allowance            |                                  |                | (16,187 | )      |      |   | (16,402 | )     
|                               |                                  |                |         |        |      |  
|Net deferred tax assets        |                                  |               | 0       |        |      |  | 0       |       
|                               |                                  |                |         |        |      |  



F-18



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |                                 
| | --------------------------------
| | Net operating loss carryforwards



|                                       |                       |   |        |        | 
|-------------------------------------- | --------------------- | - | ------ | ------ | 
|Expiration date:                       |                       |   |        |       
|                                       | 2006                  |   |       |       | 
|                                       | 2007                  |   |        |       | 
|                                       | 2008                  |   |        |       | 
|                                       | 2009                  |   |        |       | 
|                                       | Between 2012 and 2025 |   |        | 24,558 | 
|                                       | No expiration date    |   |        | 20,745 | 
|                                       |                       |   |       
|Total net operating loss carryforwards |                       |  | 45,303 |       
|                                       |                       |   |       



9  DEBT




| |                          
| | -------------------------
| | Available lines of credit



10  COMMITMENTS AND CONTINGENCIES




| |                 
| | ----------------
| | Operating leases





|                     |            |   |       |       | 
|-------------------- | ---------- | - | ----- | ----- | 
|Year ending June 30, |            |  
|                     |            |  
|                     | 2006       |   |      | 1,381 | 
|                     | 2007       |   |       | 1,073 | 
|                     | 2008       |   |       | 967   | 
|                     | 2009       |   |       | 885   | 
|                     | 2010       |   |       | 5     | 
|                     | Thereafter |   |       |      | 
|                     |            |   |      
|Total                |            |  | 4,311 |      
|                     |            |   |      

  




F-19



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |                     
| | --------------------
| | Purchase obligations






| |              
| | -------------
| | Stock options



 tm




| |                              
| | -----------------------------
| | Potential legal contingencies





| |                                           
| | ------------------------------------------
| | Guarantees and indemnification obligations





F-20



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)


11  EXPOSURE TO MARKET RISKS AND FINANCIAL
INSTRUMENTS




| |                      
| | ---------------------
| | Foreign currency risk





| |                   
| | ------------------
| | Interest rate risk




12  EMPLOYEE RETIREMENT PLANS




| |                                
| | -------------------------------
| | French employee retirement plan



 




| |                               
| | ------------------------------
| | U.S. defined contribution plan

  


13  CAPITAL (COMMON STOCK AND CAPITAL IN EXCESS OF
PAR VALUE)




| |                               
| | ------------------------------
| | Preemptive subscription rights





| |                
| | ---------------
| | Dividend rights




F-21



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |               
| | --------------
| | Treasury Stock





| |              
| | -------------
| | Stock options











F-22



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




|                       |  |                          |           |          |                            |   |       |           |          |  |                |   |  |   |       |  
|---------------------- |  | ------------------------ | --------- | -------- | -------------------------- | - | ----- | --------- | -------- |  | -------------- | - |  | - | ----- | -
|                       |  | Options to subscribe for |           |          |                           
|                       |  | shares                   |           |          | Options to purchase shares |  
|                       |  |                          |           |          |                            |  
|                       |  |                          |           | Weighted |                            |   |       |           | Weighted | 
|                       |  | Number of                |           |          | Average                    |   |       | Number of |          |  | Average        |  
|                       |  | Shares                   |           |          | Exercise Price             |   |       | Shares    |          |  | Exercise Price |  
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  
|Balance, June 30, 2002 |  |                          | 2,507,701 |          |                            |  | 3.97  |           |          |  | 0              |   |  |  | 0     |  
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  
|Granted                |  |                          | 960,800   |          |                            |  | 1.71  |           |          |  |               |   |  |  |      |  
|Forfeited/ Cancelled   |  |                          | (668,858  | )        |                            |  | (4.11 | )         |          |  |               |   |  |  |      |  
|Exercised              |  |                          | (16,250   | )        |                            |  | (1.22 | )         |          |  |               |   |  |  |      |  
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  
|Balance, June 30, 2003 |  |                          | 2,783,393 |          |                            |  | 3.17  |           |          |  | 0              |   |  |  | 0     |  
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  
|Granted                |  |                          | 1,225,730 |          |                            |  | 2.97  |           |          |  | 295,180        |   |  |  | 2.15  |  
|Forfeited/ Cancelled   |  |                          | (888,447  | )        |                            |  | (2.50 | )         |          |  | (11,300        | ) |  |  | (2.15 | )
|Exercised              |  |                          | (124,950  | )        |                            |  | (2.00 | )         |          |  |               |   |  |  |      |  
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  
|Balance, June 30, 2004 |  |                          | 2,995,726 |          |                            |  | 2.82  |           |          |  | 283,880        |   |  |  | 2.15  |  
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  
|Granted                |  |                          | 517,600   |          |                            |  | 3.53  |           |          |  | 392,200        |   |  |  | 4.18  |  
|Forfeited/ Cancelled   |  |                          | (241,345  | )        |                            |  | (5.43 | )         |          |  | (28,780        | ) |  |  | (3.07 | )
|Exercised              |  |                          | (268,255  | )        |                            |  | (2.12 | )         |          |  | (1,160         | ) |  |  | (2.15 | )
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  
|Balance, June 30, 2005 |  |                          | 3,003,726 |          |                            |  | 3.22  |           |          |  | 646,140        |   |  |  | 3.34  |  
|                       |  |                          |           |          |                            |   |       |           |          |  |                |  





|                               |  |             |           |           |                |  |           |                |  |   |           |         |  |          |           |  |  |   |       | 
|------------------------------ |  | ----------- | --------- | --------- | -------------- |  | --------- | -------------- |  | - | --------- | ------- |  | -------- | --------- |  |  | - | ----- | 
|                               |  | Outstanding |           |           | Exercisable    | 
|                               |  |             |           |           |                | 
|                               |  |             |           | Weighted- |                |  |           |                |  |   | Weighted- |        
|                               |  |             |           | Average   |                |  | Weighted- |                |  |   |           | Average | 
|                               |  | Number of   |           |           | Remaining Life |  |           | Average        |  |   | Number of |         |  | Exercise |          
|Range of Exercise Prices/Share |  | Shares      |           |           | (in Years)     |  |           | Exercise Price |  |   | Shares    |         |  | Price    |          
|                               |  |             |           |           |                |  |           |                |  |   |           |         |  |          |          
|From 1.01 to 2.00             |  |             | 813,687   |           |                |  | 4.84      |                |  |  | 1.73      |         |  |          | 650,637   |  |  |  | 1.75  | 
|From 2.01 to 4.00             |  |             | 2,339,104 |           |                |  | 7.54      |                |  |  | 3.04      |         |  |          | 1,039,699 |  |  |  | 2.21  | 
|From 4.01 to 5.00             |  |             | 375,575   |           |                |  | 8.13      |                |  |  | 4.46      |         |  |          | 82,075    |  |  |  | 4.80  | 
|From 5.01 to 8.00             |  |             | 0         |           |                |  | 0.00      |                |  |  | 0.00      |         |  |          | 0         |  |  |  | 0.00  | 
|From 8.01 to
    10.00        |  |             | 36,150    |           |                |  | 5.97      |                |  |  | 8.14      |         |  |          | 36,150    |  |  |  | 8.14  | 
|Over 10.01                    |  |             | 85,350    |           |                |  | 4.11      |                |  |  | 15.42     |         |  |          | 85,350    |  |  |  | 15.42 | 
|                               |  |             |           |           |                |  |           |                |  |   |           |         |  |          |          
|Total                          |  |             | 3,649,866 |           |                |  | 6.90      |                |  |  | 3.24      |         |  |          | 1,893,911 |  |  |  | 2.87  | 
|                               |  |             |           |           |                |  |           |                |  |   |           |         |  |          |          

F-23



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |               
| | --------------
| | Stock warrants



|                       |  |          |         |   |          |  |         |          |  |       |          |   |  |          |         |   |  |  |         |  
|---------------------- |  | -------- | ------- | - | -------- |  | ------- | -------- |  | ----- | -------- | - |  | -------- | ------- | - |  |  | ------- | -
|                       |  |          |         |   |          |  |         |          |  | Total |         
|                       |  | Series C |         |   | Series E |  |         | Series F |  |       | Total    |   |  | Issuable |        
|                       |  | Warrants |         |   | Warrants |  |         | Warrants |  |       | Warrants |   |  | Shares   |        
|                       |  |          |         |   |          |  |         |          |  |       |          |   |  |          |        
|Balance, June 30, 2002 |  |          | 57,500  |   |          |  | 140,624 |          |  |       | 0        |   |  |          | 228,124 |   |  |  | 184,374 |  
|Granted                |  |          |        |   |          |  |        |          |  |       | 165,624  |   |  |          | 165,624 |   |  |  | 165,624 |  
|Forfeited              |  |          |        |   |          |  |        |          |  |       |         |   |  |          | 0       |   |  |  | 0       |  
|Exercised              |  |          |        |   |          |  |        |          |  |       |         |   |  |          | 0       |   |  |  | 0       |  
|                       |  |          |         |   |          |  |         |          |  |       |          |   |  |          |        
|Balance, June 30, 2003 |  |          | 57,500  |   |          |  | 140,624 |          |  |       | 165,624  |   |  |          | 393,748 |   |  |  | 349,998 |  
|Granted                |  |          |        |   |          |  |        |          |  |       |         |   |  |          | 0       |   |  |  | 0       |  
|Forfeited              |  |          |        |   |          |  | (25,000 | )        |  |       | (16,667  | ) |  |          | (41,667 | ) |  |  | (41,667 | )
|Exercised              |  |          |        |   |          |  |        |          |  |       | (8,333   | ) |  |          | (38,333 | ) |  |  | (23,333 | )
|                       |  |          |         |   |          |  |         |          |  |       |          |   |  |          |        
|Balance, June 30, 2004 |  |          | 57,500  |   |          |  | 115,624 |          |  |       | 140,624  |   |  |          | 313,748 |   |  |  | 284,998 |  
|Granted                |  |          |        |   |          |  |        |          |  |       |         |   |  |          | 0       |   |  |  | 0       |  
|Forfeited              |  |          | (57,500 | ) |          |  |        |          |  |       |         |   |  |          | (57,500 | ) |  |  | (28,750 | )
|Exercised              |  |          |        |   |          |  |        |          |  |       |         |   |  |          | 0       |   |  |  | 0       |  
|                       |  |          |         |   |          |  |         |          |  |       |          |   |  |          |        
|Balance, June 30, 2005 |  |          | 0       |   |          |  | 115,624 |          |  |       | 140,624  |   |  |          | 256,248 |   |  |  | 256,248 |  
|                       |  |          |         |   |          |  |         |          |  |       |          |   |  |          |        

 


 


 


14  SEGMENT INFORMATION




| |                    
| | -------------------
| | Reportable segments



F-24



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)






| |                 
| | ----------------
| | Geographic areas





| |                 
| | ----------------
| | Revenue analysis

|                                  |        |                     |        |        |      |   |        |        |  |   |        |        | 
|--------------------------------- | ------ | ------------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                                  |        | Year Ended June 30, |       
|                                  |        |                     |       
|                                  |        | 2005                |        |        | 2004 |   |        | 2003   | 
|                                  |        |                     |        |        |      |   |        |        | 
|Europe                            |        |                     |        |        |      |   |        |        |  |   |        |       
|                                  | France |                     |       | 4,966  |      |   |       | 3,666  |  |   |       | 3,645  | 
|                                  | Others |                     |        | 11,584 |      |   |        | 10,152 |  |   |        | 8,939  | 
|                                  |        |                     |        |        |      |   |        |        | 
|                                  | Total  |                     |        | 16,550 |      |   |        | 13,818 |  |   |        | 12,584 | 
|Americas                          |        |                     | 15,214 |        |      |   | 12,063 |        |  |   | 9,603  |       
|Asia-Pacific                      |        |                     | 2,577  |        |      |   | 2,806  |        |  |   | 3,335  |       
|                                  |        |                     |        |        |      |   |        |        | 
|Total sales to external customers |        |                    | 34,341 |        |      |  | 28,687 |        |  |  | 25,522 |       
|                                  |        |                     |        |        |      |   |        |        | 



| |                        
| | -----------------------
| | Operating loss analysis

|                     |        |                     |       |         |      |   |        |         |   |   |         |         |  
|-------------------- | ------ | ------------------- | ----- | ------- | ---- | - | ------ | ------- | - | - | ------- | ------- | -
|                     |        | Year Ended June 30, |      
|                     |        |                     |      
|                     |        | 2005                |       |         | 2004 |   |        | 2003    |  
|                     |        |                     |       |         |      |   |        |         |  
|Europe               |        |                     |       |         |      |   |        |         |   |   |         |        
|                     | France |                     |      | (10,268 | )    |   |       | (11,616 | ) |   |        | (15,428 | )
|                     | Others |                     |       | 7,171   |      |   |        | 5,907   |   |   |         | 3,278   |  
|                     |        |                     |       |         |      |   |        |         |  
|                     | Total  |                     |       | (3,097  | )    |   |        | (5,709  | ) |   |         | (12,150 | )
|Americas             |        |                     | 2,665 |         |      |   | (1,962 | )       |   |   | (820    | )      
|Asia-Pacific         |        |                     | 216   |         |      |   | 1,199  |         |   |   | 489     |        
|                     |        |                     |       |         |      |   |        |         |  
|Total operating loss |        |                    | (216  | )       |      |  | (6,472 | )       |   |  | (12,481 | )      
|                     |        |                     |       |         |      |   |        |         |  



| |                                     
| | ------------------------------------
| | Carrying amount of long-lived assets



|                                           |        |                |       |       |      |   |       |       | 
|------------------------------------------ | ------ | -------------- | ----- | ----- | ---- | - | ----- | ----- | 
|                                           |        | As of June 30, |      
|                                           |        |                |      
|                                           |        | 2005           |       |       | 2004 |  
|                                           |        |                |       |       |      |  
|Europe                                     |        |                |       |       |      |   |       |      
|                                           | France |                |      | 2,730 |      |   |      | 2,772 | 
|                                           | Others |                |       | 77    |      |   |       | 281   | 
|                                           |        |                |       |       |      |  
|                                           | Total  |                |       | 2,807 |      |   |       | 3,053 | 
|Americas                                   |        |                | 469   |       |      |   | 536   |      
|Asia-Pacific                               |        |                | 82    |       |      |   | 94    |      
|                                           |        |                |       |       |      |  
|Total carrying amount of long-lived assets |        |               | 3,358 |       |      |  | 3,683 |      
|                                           |        |                |       |       |      |  

F-25



---



##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




| |                                  
| | ---------------------------------
| | Information about major customers



15  RESEARCH AND DEVELOPMENT EXPENSES


  


16  RELATED PARTY TRANSACTIONS


   


    


17  RESTRUCTURING COSTS




|                                             |  |                     |    |  |      |  |        |      |  |  |        | 
|-------------------------------------------- |  | ------------------- | -- |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                             |  | Year Ended June 30, |   
|                                             |  |                     |   
|                                             |  | 2005                |    |  | 2004 |  |        | 2003 | 
|                                             |  |                     |    |  |      |  |        |      | 
|Reduction in its workforce                   |  |                     |  |  |      |  | 795   |      |  |  | 1,514 | 
|Office rationalization                       |  |                     |   |  |      |  | 1,700  |      |  |  | 76     | 
|                                             |  |                     |    |  |      |  |        |      | 
|Total restructuring costs and consulting fee |  |                     | 0 |  |      |  | 2,495 |      |  |  | 1,590 | 
|                                             |  |                     |    |  |      |  |        |      | 





| |                        
| | -----------------------
| | 2004 Restructuring plan



F-26



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)




|                       |  |           |        |             |             |  |         |         |  |  |                  |  |  |  |    | 
|---------------------- |  | --------- | ------ | ----------- | ----------- |  | ------- | ------- |  |  | ---------------- |  |  |  | -- | 
|                       |  |           |        | Utilization |             |  |         |         | 
|                       |  | Initial   |        |             | fiscal year |  |         | Ending  |  |  | Non-cash portion | 
|                       |  | provision |        |             | 2004        |  |         | balance |  |  | of provision     | 
|                       |  |           |        |             |             |  |         |         |  |  |                  | 
|Reduction in workforce |  |           | 795   |             |             |  |  (795  | )       |  |  |                |  |  |  |  | 
|Office rationalization |  |           | 1,700  |             |             |  | (1,700  | )       |  |  |                 |  |  |  |   | 
|                       |  |           |        |             |             |  |         |         |  |  |                  | 
|Total                  |  |           | 2,495 |             |             |  | (2,495 | )       |  |  |                |  |  |  |  | 
|                       |  |           |        |             |             |  |         |         |  |  |                  | 

 




| |                        
| | -----------------------
| | 2003 Restructuring plan





|                       |  |         |    |             |             |   |             |             |  |   |         |   |  |   |   | 
|---------------------- |  | ------- | -- | ----------- | ----------- | - | ----------- | ----------- |  | - | ------- | - |  | - | - | 
|                       |  |         |    | Utilization |             |   | Adjustments |             |  |  
|                       |  | Opening |    |             | fiscal year |   |             | fiscal year |  |   | Ending  |  
|                       |  | balance |    |             | 2004        |   |             | 2004        |  |   | balance |  
|                       |  |         |    |             |             |   |             |             |  |   |         |  
|Reduction in workforce |  |        | 62 |             |             |  |            |             |  |  | (62     | ) |  |  |  | 
|Office rationalization |  |         |   |             |             |   |            |             |  |   |         |   |  |   |  | 
|                       |  |         |    |             |             |   |             |             |  |   |         |  
|Total                  |  |        | 62 |             |             |  |            |             |  |  | (62     | ) |  |  |  | 
|                       |  |         |    |             |             |   |             |             |  |   |         |  

|                       |  |           |       |             |             |   |        |         |  |   |                  |  |  |   |   | 
|---------------------- |  | --------- | ----- | ----------- | ----------- | - | ------ | ------- |  | - | ---------------- |  |  | - | - | 
|                       |  |           |       | Utilization |             |   |        |         | 
|                       |  | Initial   |       |             | fiscal year |   |        | Ending  |  |   | Non-cash portion | 
|                       |  | provision |       |             | 2003        |   |        | balance |  |   | of provision     | 
|                       |  |           |       |             |             |   |        |         |  |   |                  | 
|Reduction in workforce |  |          | 1,514 |             |             |  | (1,452 | )       |  |  | 62               |  |  |  |  | 
|Office rationalization |  |           | 76    |             |             |   | (76    | )       |  |   |                 |  |  |   |  | 
|                       |  |           |       |             |             |   |        |         |  |   |                  | 
|Total                  |  |          | 1,590 |             |             |  | (1,528 | )       |  |  | 62               |  |  |  |  | 
|                       |  |           |       |             |             |   |        |         |  |   |                  | 



18  VALUATION AND QUALIFYING ACCOUNTS




|                 |  |              |     |  |            |   |     |           |  |   |            |   |  |            |      |   |             |   |     |   |  |   |     | 
|---------------- |  | ------------ | --- |  | ---------- | - | --- | --------- |  | - | ---------- | - |  | ---------- | ---- | - | ----------- | - | --- | - |  | - | --- | 
|                 |  | Balance at   |     |  |            |   |     |           |  |   |            |   | 
|                 |  | beginning of |     |  |            |   |     |           |  |   | Currency   |   |  | Balance at |     
|                 |  | year         |     |  | Provisions |   |     | Reversals |  |   | Write-offs |   |  | variation  |      |   | end of year |  
|                 |  |              |     |  |            |   |     |           |  |   |            |   |  |            |      |   |             |  
|Fiscal year 2003 |  |             | 586 |  |            |  | 248 |           |  |  | (202       | ) |  |           | (122 | ) |             |  | (50 | ) |  |  | 460 | 
|Fiscal year 2004 |  |             | 460 |  |            |  | 113 |           |  |  |           |   |  |           | (165 | ) |             |  | (21 | ) |  |  | 387 | 
|Fiscal year 2005 |  |             | 387 |  |            |  | 89  |           |  |  | (109       | ) |  |           | (110 | ) |             |  | (4  | ) |  |  | 253 | 

F-27



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##### Table of Contents



INFOVISTA


NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


(In thousands, except for share and per share data)


19  PERSONNEL COSTS


     


20  NET INCOME (LOSS) PER SHARE




|                                                    |  |                     |            |  |      |   |            |      |  |   |            |  
|--------------------------------------------------- |  | ------------------- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | -
|                                                    |  | Year Ended June 30, |           
|                                                    |  |                     |           
|                                                    |  | 2005                |            |  | 2004 |   |            | 2003 | 
|                                                    |  |                     |            |  |      |   |            |      | 
|Net income (loss)                                   |  |                    | 124        |  |      |  | (6,204     | )    |  |  | (11,525    | )
|                                                    |  |                     |            |  |      |   |            |      | 
|Weighted average common shares outstanding          |  |                     | 17,271,717 |  |      |   | 17,778,929 |      |  |   | 18,843,308 |  
|Dilutive effect of stock options and warrants       |  |                     | 3,664,465  |  |      |   |           |      |  |   |           |  
|                                                    |  |                     |            |  |      |   |            |      | 
|Dilutive weighted average common shares outstanding |  |                     | 20,936,182 |  |      |   | 17,778,929 |      |  |   | 18,843,308 |  
|                                                    |  |                     |            |  |      |   |            |      | 
|Basic net income (loss) per share                   |  |                    | 0.01       |  |      |  | (0.35      | )    |  |  | (0.61      | )
|                                                    |  |                     |            |  |      |   |            |      | 
|Diluted net income (loss) per share                 |  |                    | 0.01       |  |      |  | (0.35      | )    |  |  | (0.61      | )
|                                                    |  |                     |            |  |      |   |            |      | 

21  SUBSEQUENT EVENTS




| |                     
| | --------------------
| | Stock options grants





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | stock options giving the right to subscribe for
    7,000 shares were granted under the 2001 Plan. Each option
    will give the right to subscribe for new shares at the price of
    5.11 per
    share,                                                                                                                                                                                                                                                                                                                
|
| |  | stock options giving the right to
    purchase 205,000 shares of treasury stock were granted
    under the 2004 (40,000 options) and 2005 (165,000 options)
    Plans. The terms and conditions of the 2005 Plan are similar to
    those of the 2004 Plan, except for the vesting period applicable
    to the French employees, for which the options granted shall
    vest four years after the granting date. Each option will give
    the right to purchase existing shares at the price of
    5.11 per
    share.



| |                                                          
| | ---------------------------------------------------------
| | Third party software agreement with Progress
    Software



F-28



---



##### Table of Contents



SIGNATURE






| |               
| | --------------
| | INFOVISTA S.A.



| |     |               
| | --- | --------------
| | By: | /s/ Gad Tobaly

| |                               
| | ------------------------------
| |                               
| | Name: Gad Tobaly              
| | Title: Chief Executive Officer



F-29



---



##### Table of Contents



Exhibits Index


| |      |  |  |                                                                                                                                                                                                                                                                                                                
| | ---- |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1    |  |  | Statuts, or by-laws, of InfoVista (unofficial English
    translation up to date as of July 21, 2005)                                                                                                                                                                                                          
| | 4.1  |  |  | License to Commercialize ObjectStore,
    ObjectStore Performance Expert and ObjectStore
    Runtime, between eXcelon Corporation and InfoVista dated
    August 23, 2000** (incorporated by reference to
    exhibit 4.1 to Form 20-F, filed on December 8,
    2000, Commission File Number 000-30838).
| | 4.2  |  |  | 1996 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 10.5 to Form F-1
    filed on June 22, 2000, Commission File
    Number 333-12160)                                                                                                                           
| | 4.3  |  |  | 1999 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 10.6 to Form F-1
    filed on June 22, 2000, Commission File
    Number 333-12160)                                                                                                                           
| | 4.4  |  |  | 2000 Stock Option Plan, as amended (unofficial English
    translation) (incorporated by reference to exhibit 10.7 to
    Form F-1 filed on June 22, 2000, Commission File
    Number 333-12160)                                                                                                               
| | 4.5  |  |  | 2001 Stock Option Plan, as amended (unofficial English
    translation) (incorporated by reference to exhibit 4.3 to
    Form S-8 filed on January 24, 2002, Commission File
    Number 333-81300)                                                                                                             
| | 4.6  |  |  | 2003 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 4.6 to Form 20-F
    filed on October 23, 2003, Commission File
    Number 000-30838)                                                                                                                        
| | 4.7  |  |  | 2004 Stock Option Plan (unofficial English translation)
    (incorporated by reference to exhibit 4.6 to Form 20-F filed on
    October 1, 2004, Commission File Number 000-30838).                                                                                                                            
| | 4.8  |  |  | 2005 Stock Option Plan (unofficial English translation)                                                                                                                                                                                                                                                        
| | 4.9  |  |  | Employment Agreement dated January 26, 2004 between
    InfoVista SA. and Gad Tobaly (incorporated by reference to
    exhibit 4.6 to Form 20-F filed on October 1, 2004,
    Commission File Number 000-3083).                                                                                                
| | 8    |  |  | Subsidiaries of the Registrant (see Information on the
    Company  General Information Concerning the Share
    capital of the Company  Subsidiaries and
    Investments).                                                                                                                                
| | 10.1 |  |  | Consent of Ernst & Young Audit.                                                                                                                                                                                                                                                                                
| | 10.2 |  |  | Consent of PricewaterhouseCoopers Audit.                                                                                                                                                                                                                                                                       
| | 12.1 |  |  | Certification of the Chief Executive Officer pursuant to
    Section 302 of the Sarbanes Oxley Act of 2002.                                                                                                                                                                                                    
| | 12.2 |  |  | Certification of the Chief Financial Officer pursuant to
    Section 302 of the Sarbanes Oxley Act of 2002.                                                                                                                                                                                                    
| | 13.1 |  |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                                                                                                                                                                






|  |                                                                                                                                                                                             
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Confidential treatment has been requested with respect to
    certain portions of this exhibit. Omitted portions have been
    filed separately with the Securities and Exchange Commission.
| 
|* | Financial statement schedules are omitted because they are not
    applicable or because the information required