RESULTS 1H08 MADRID, 24 JULY 2008 www.indra.es

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CONTENTS

1. Introduction - 3

2. Main Figures - 5

3. Commercial Activity and Revenues by Primary Segments - 6

4. Revenues by Geographical Market: Secondary Segments - 8

5. Commercial Activity and Revenues by Business Area -10

6. Analysis of Consolidated Financial Statements (IFRS) - 12

7. Other Events This Quarter - 14

8. Events Subsequent to the end of this Quarter - 15

ANNEX 1: Major Contracts this Quarter - 16

ANNEX 2: Consolidated Profit and Loss Account - 18

ANNEX 3: Profit and Loss Account by Segment - 19

ANNEX 4: Consolidated Balance Sheet - 20

ANNEX 5: Consolidated Cash Flow Statement - 21

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1. INTRODUCTION Indra’s key indicators continued their strong showing in the first half of 2008, and all of them were in line with full-year targets. Compared with the same period in 2007: Total order intake slightly exceeded forecasts with an increase of 13% to €1.48 bn (19% higher than revenues). Highlights included 14-percent growth in the solutions segment and good performance in both the Spanish (up 12%) and international (up 13%) markets. Total revenues rose 11% year-on-year to €1.25 bn, with the following highlights: Double-digit growth in the company's two main business lines: Solutions (10%) and Services (14%). The international market’s performance, with growth of 16%. Meanwhile, revenues in the Spanish market increased 9%. Good performance in all vertical markets, especially Telecom and Media (18%) and Public Administration and Healthcare (18%), which registered excellent performance in the Latin American market; and the Financial Services business (16%) due to high levels of spending by the major Spanish banks both in Spain and abroad, as well as the improved position of Indra in such customers. The order backlog, which rose 9% to €2.46 bn. This backlog lends high visibility to full–year targets. In light of business performance in 1H08 and the amount of the backlog executable during 2H08, revenue coverage relative to 2008 guidance stands at over 92%. Net operating profit (EBIT) in 1H08 climbed 28% from the same period a year earlier. The EBIT margin rose to 11.4%, well above the level recorded in 1H07 (9.9%), in part due to the integration costs incurred last year in connection with the Azertia and Soluziona acquisitions. This margin trend is fully in line with the company’s FY08 margin guidance. Net profit jumped 34% year-on-year, while earnings per share (EPS) posted a similar increase. Operating cash flow advanced 33%. As expected, net working capital was in line with YE07 levels (equivalent to 76 days’ revenues vs. 73 days at YE07). As the company said in its 1Q08 earnings report, net working capital is expected to total approximately 75 days' revenues at the end of 2008. In the wake of first-half results, and despite continued uncertainty on the macroeconomic front, Indra is reiterating an upbeat outlook for its business both in Spanish and international markets. Despite the economic slowdown underway in Spain, and with the exception of

certain market niches, the company has not perceived any drop in demand from

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the main industries and customers to which it targets its products and services. Indra expects to end the year with a revenue increase of between 7% and 8%.

The outlook for international markets is also positive, especially in Latin

America where the demand for our solutions and services is forecast to remain strong, and in new geographic markets where the company is gaining ground. Full-year revenue growth at the international business is expected to outpace that of the Spanish market (as happened in 2007), with an increase ranging between 13% and 15%.

This upbeat outlook, underpinned by both strength in the order backlog and expectations regarding bids that have already been submitted, allows a high confidence in the achievement of the company's guidance for 2008 key financial indicators as follows:

Revenue growth of between 9% and 10%.

Order intake is likewise expected to increase in a range of between 9% and 10%, outpacing top-line growth for another year and further boosting the backlog.

The company will continue to enhance its operating profitability, with an EBIT

margin of between 11.3% and 11.5%.

Indra intends to boost net profit by about 22%, at the high end of the 18%-22% target range set at the beginning of the year.

Finally, the company on 8 July paid an ordinary gross dividend of €0.50 per share against 2007 earnings. This dividend, totalling €80m, is 16% higher than the ordinary dividend for 2006 and represents a payout of 55% and a dividend yield of 3% considering the current share price.

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2. MAIN FIGURES The main figures for the period are as follows:

(*) Excluding one-off expenses incurred in FY2007 regarding the integration of Azertia y Soluziona, 1H07 net operating profit (EBIT) was €126.2 M, an 11.2% EBIT margin, which would have implied a year-on-year increase of 12.4% and 0.2 p.p. respectively.

Basic EPS amounts are calculated by dividing net profit for the period by the total number of outstanding shares less weighted treasury shares at the end of the period. Treasury shares and total shares are weighted in accordance with the number of days they have been on the company’s balance sheet during the year.

The decrease in the total number of shares reflects the effective cancellation on 27 September 2007 of the redeemable shares remaining from the 2002 Share Option plan, following approval at the General Shareholders’ Meeting held in June. A total of 123,558 shares were cancelled (42,648 Class C and 80,910 Class D). As of the end of June 2008, the weighted number of treasury shares held amounted to 1,067,917. In addition Indra indirectly owns 2,261,000 shares hedging the 2005 Share Option plan through an Equity-Swap signed with a financial institution. Diluted EPS is the same as basic EPS as Indra has not issued any convertible or other similar instruments.

INDRA 1H08 (€M) 1H07(€M) Variation (%)

Order Intake 1,481.7 1,316.3 13

Revenues 1,247.0 1,122.6 11 Backlog 2,460.5 2,263.7 9

Net operating profit (EBIT) 141.8 110.7 (*) 28

EBIT margin 11.4% 9.9% (*) 1.5 p.p.

Attributable profit 100.4 74.8 34

Net debt position 201.3 166.8 34.5 €M

Earnings per Share (according to IFRS) 1H08 (€M) 1H07 (€M) Variation (%)

Basic EPS 0.6242 0.4636 35

Diluted EPS 0.6242 0.4636 35

1H08 (€M) 1H07(€M)

Total number of shares 164,132,539 164,256,097

Weighted treasury stock 3,328,917 2,963,853Total shares considered 160,803,622 161,292,244

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Services26%

Solutions74%

3. COMMERCIAL ACTIVITY AND REVENUES BY SEGMENT The following is a breakdown of total 1H08 revenues:

SOLUTIONS At the Solutions division, the key figures for 1H08 and yoy comparisons are as follows:

Highlights include: Strong momentum in international air traffic management systems, where Indra continues to expand its business. The NATS contracts in the United Kingdom and Colombia, mentioned in 1Q08, were joined in the second quarter by several projects in Europe (Ukraine) and Asia (Mongolia). Road traffic system contract wins remained buoyant in Spain in intelligent traffic control systems. New orders for systems related to border control and surveillance systems, with projects in both the Spanish and international markets (integrated border surveillance system on Romania's Black Sea coastal border). Positive performance of proprietary solutions for the Financial Services business (IT systems for the banking industry, both in Spain and Latin America; and core systems for the insurance business; primarily in Spain) and for utilities, mainly in the Spanish market.

1H08 (€M) 1H07(€M) Variation (€M) Variation %

Order Intake 1,092.0 954.4 138 14

Revenues 926.9 842.3 84.6 10Backlog 2,046.8 1,872.8 174.0 9

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SERVICES Commercial activity in the Services segment in 1H08 compared to 1H07 was as follows:

The order intake maintained its excellent pace with an increase of 8%, even though 2Q07 featured several multi-year contract renewals in the Transport and Traffic, Telecom and Defence markets. A further highlight was this business’ 14% rise in revenues, fuelled as in previous quarters by the following: Demand for application management and maintenance, mainly in the Telecoms, Energy and Financial Services markets, while demand is on the rise in the Public Administration business, which is increasingly characterised by an intensifying appetite for outsourcing and services management.

This performance was helped by the availability of resources at the company’s international software development centres (Latin America, Eastern Europe and Philippines), which have allowed Indra to enhance its competitive position. Performance at the company’s BPO business, which was bolstered both by combining all of the company’s activities in this industry into a single business model. The markets which continue to require an increasing number of BPO services are the telecommunications and financial services businesses, despite a reduction in the mortgage BPO business.

1H08 (€M) 1H07(€M) Variation €M Variation %

Order Intake 389.7 362.0 27.7 8

Revenues 320.1 280.3 39.8 14Backlog 413.7 390.9 22.8 6

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4. REVENUES BY GEOGRAPHICAL MARKET: Secondary Segments

The breakdown of revenues by geographical market is as follows:

The performance of both the Spanish and international markets was noteworthy in 1H08, although as expected, the international market remains the company’s main growth driver, with revenue growth of 16%. In the domestic market, the best-performing areas are Energy, Regional Public Administrations, Media and Financial Services, all of which are registering double-digit growth. This growth is being driven by rising demand for services, and, in the Financial Services business, by investment in new projects and solutions on the part of leading financial and insurance companies. Highlights in the international market include: The performance of Latin America, a market which continues to show significant demand, and where Indra has a solid foothold with high growth rates, especially in markets such as Mexico, Argentina, Colombia and Chile. Strong growth in other countries, as mentioned in the 1Q08 earnings report, thanks to the momentum for expanding internationally in traffic systems (mainly Asia-Pacific, but also in other markets in North Africa), and Defence and Security in new regions (India and Kazakhstan, among others) and in management systems for utilities, with pioneering projects in the Middle East and Africa. The European market, which, as reported at the end of 1Q08, again posted near-double-digit growth rates, fuelled by the air traffic management (UK market) and Defence and Security businesses (projects in a number of Eastern European countries).

1H08 (€M) 1H07 (€M) VariationRevenues €M % €M % €M %Total revenues 1,247.0 100.0 1.122.6 100 124.4 11

Domestic 835.4 67.0 768.7 68 66.7 9International 411.6 33.0 353.9 32 57.7 16 Europe 213.5 17.1 194.0 17 19.5 10 North America 24.8 2.0 24.6 2 0.2 1 Latam 111.4 8.9 92.2 8 19.2 21 Other 61.9 5.0 43.2 4 18.8 44

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Finally, in the US and Canada, the simulation business for the US Navy and the Transport and Traffic business remained the main growth drivers, though the distribution of revenues over the quarters explains why the rate of growth dropped in the 2Q08 from a year earlier. This heading is forecast to recover in 2H08.

Other5%

Domestic Market67%

Europe17%

LATAM9%

USA2%

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5. COMMERCIAL ACTIVITY AND REVENUES BY BUSINESS AREA

The breakdown of 1H08 revenues is as follows:

Order Intake

Order intake in 1H08 continued to perform better than expected, at 19% above revenues, increasing 13% year-on-year. The following markets' performance stood out in the first half: Transport and Traffic, both in Spain (primarily the road traffic control business) and abroad, where order intake in air traffic management (ATM) continues its rapid growth (contracts in the UK, Colombia, Ukraine and Mongolia). Energy and Industry, fuelled by the energy business in Spain and by the international business, mainly Latin America (Mexico above all) in the Industry market. Telecom and Media, where the Latin American market continues to show its strength (accounting for 70% of order intake growth at this business) and positive performance in the Spanish market. Finally, the Public Administration and Healthcare market grew thanks primarily to the international business, with highlights including passport issuance management for Mexico’s Secretary of Foreign Affairs. Meanwhile, growth in the Spanish market was concentrated at the regional government level, in the areas of Healthcare and Public Administration. Appendix 1 includes a detailed list of the main contracts won by Indra in 2Q07.

1H08 (€M) 1H07(€M) Variation €M Variation %

Order Intake 1,481.7 1,316.3 165.3 13

29% 18% 15% 14% 14% 10%

Defense & Security

Transport & Traffic

Energy & Industry

Public Admin. & Healthcare

Financial Services

Telecom & Media

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Revenues Total revenues increased by 11% year-on-year in 1H08, maintaining the growth rate seen in 1Q08. The breakdown by market is as follows:

REVENUES 1H08 (€M) 1H07 (€M) Variation €M Variation %Transport and Traffic 230.6 212.1 18.5 9

Telecom and Media 131.0 111.5 19.5 18

Public Admin. and Healthcare 168.4 147.4 21.0 14 (*)

Financial Services 168.6 145.7 23.0 16

Energy and Industry 192.7 176.1 16.6 9

Defence and Security 355.7 329.9 25.8 8

Total 1,247.0 1,122.6 124.5 11 (*) P.A. and Healthcare, excluding balloting projects, advanced 16% The Defence and Security and Transport and Traffic markets grew in line with expectations for the full year, with noteworthy performance from the international market, in which both businesses posted growth rates of over 10%. The international market accounted for 42% of overall revenues for these two industries. Telecom and Media: while the international market accounted for the bulk of this market's growth in 1H08, the Spanish market also had a favourable showing. Financial Services continues to be one of the company’s fastest-growing divisions, as reported at the beginning of the year. This is a result of sizable investments by large Spanish financial institutions in both the Spanish and international markets; institutions in which Indra's penetration is high. Growth at the Public Administration and Healthcare division was due both to sound performance in Spain in relation to regional government spending with large contracts in Justice and Healthcare, along with very strong momentum in Latin America.

The Balloting business in 1H08 generated €20m (namely in Spain and the UK), vs. €19m in the same period a year earlier. Finally, in Energy and Industry, highlights were the performance of the Energy division in Spain and that of Industry in Latin America. Order backlog Order intake in 1H08 outweighed revenues by 19%, driving an increase in the order book and reaching a level of coverage equivalent to 1.07x LTM revenues, vs. 1.03x at the end of 2007.

1H08 (€M) 1H07 (€M) Variation €M Variation %BACKLOG 2,460.5 2,263.7 196.8 9

In light of the business performance during 1H08 and the amount of the backlog executable during the second half, revenue coverage relative to 2008 guidance stands at over 92%.

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6. ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS)

Attached to this report as Appendices 2, 3, 4 and 5, respectively, are the income statement, the Income Statement by segment, the balance sheet and the cash flow statement for 1H08 and their comparison with 1H07. Highlights from the 1H08 (Appendix 2) Income Statement vs. 1H07 include: EBIT of €141.8m, an increase of 28%. The operating margin (EBIT/revenues) reached 11.4%, vs. 9.9% a year earlier, which included one-off expenses incurred in connection with the integration of Azertia and Soluziona (€15.5m); excluding those expenses, the operating margin would have been 11.2%. This margin trend is fully in line with the company’s FY08 guidance for an EBIT margin in the range of 11.3% to 11.5%. Attributable profit rose 34% to €100.4m. Highlights in relation to net profit: Net financial expenses amounted to €6.6m, higher than a year earlier due to a

higher average net debt position in 1H08 and a higher average cost of debt service.

A 25.7% tax rate, similar to that of 1Q08, though lower than that of 1H07

(28.9%) due mainly to a reduction in the prevailing Spanish standard corporate tax rate in 2008 from 32.5% to 30%.

As for the 1H08 balance sheet, Appendix 4 offers a comparison between 1H08 and YE07. Noteworthy variations in the main headings are as follows: The reduction in Other financial liabilities, due to the transfer to Other current liabilities (short term) of the amount recognised in connection with the 2005 Share Option Plan (2,281,000 options at a strike price of €16.83). This plan has been hedged in its entirety with an Equity-Swap signed with a bank. This options granted under this plan began to vest in April of this year, with 20,000 options vesting in 2Q08, leaving outstanding options at 2,261,000. Also, at the close of the first half, Other current liabilities include the ordinary dividend of €0.50/share, which was paid in the third quarter (8 July) for a total outlay of €80m. Net working capital totalled €525m, equivalent to 76 days’ revenues, in line with expectations for 1H08 and FY08, when it is forecast to stand at 75 days' revenues, similar to 2007. As announced at the end of 1Q08, following the integration of Azertia and Soluziona, the trend quarter over quarter will be smoother than in recent years and is likely to end the year in line with current levels (approximately 75 days’ of revenues). Highlights of the 1H08 Cash Flow Statement include: Operating cash flow advanced 33% year-on-year to €158.8m. €93m of investment in working capital, as planned. Investment in treasury stock totalled €32.7m, ending the half with treasury stock

amounting to 1.3% of share capital.

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The company’s net debt stood at €201m in 1H08, a figure which is likely to shrink slightly in coming quarters, even considering the ordinary dividend (€80m) paid at the beginning of 3Q08. Human Resources The total workforce in 1H08 consisted of 24,436 people. The increase with respect to 1H07 and FY07 was as follows:

Employees Variation in consolidation Perimeter

OrdinaryVariation Total Variation Variation (%)

From 30/06/2007 154 2,447 2,601 12%

From 31/12/2007 15 939 954 4% The average workforce was 24,116 employees, 14% more than a year earlier. The breakdown is as follows:

Employees Variation in Consolidation Perimeter

OrdinaryVariation Total Variation Variation (%)

Sobre 30/06/2007 418 2,592 3,010 14% At 30 June 2008, 23% of the company’s total workforce was in the international market, mainly Latin America (16% of the total).

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7. OTHER EVENTS IN THE QUARTER

On 6 May the company announced that its Ordinary General Shareholders’ Meeting would be held at second call on 26 June 2008 in Alcobendas (Madrid), where the company is headquartered. In addition, an advisory to the CNMV dated 17 March was amended to extend until 8 May 2008 (vs. the previously-announced 18 April) the period during which shareholders can make suggestions for the General Meeting Agenda, in line with the company’s commitment to pursuing best practices in the area of Corporate Governance and shareholder participation. On 14 May, Indra called its General Shareholders’ Meeting and on 23 May published the agenda and all relevant information on its corporate website (www.indra.es/inversores). The General Shareholders’ Meeting was held, as planned, on 26 June 2008 at second call. All the items on the agenda were ratified. Below is a summary of the main items approved (for the complete list, please consult the Significant Event filed with the CNMV on 21 June or visit our website, www.indra.es/ accionistas):

- 2007 Annual Accounts, the Board of Director’s management of the company and

the distribution of the previous year’s results.

- The payment of a dividend totalling €82m, i.e., €0.50 gross per share, charged against 2007 profits.

- Appointment and re-election of board members, and Board of Directors members’ compensation for 2008-2010.

- Approval of a medium-term compensation system using company stock and granting options to the company’s management team, including top executives.

- Reappointment of KPMG Auditores S.L. as auditor of the company’s accounts for 2008.

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8. EVENTS AFTER THE END OF THE QUARTER

In accordance with the distribution of results corresponding to financial year 2007 as approved at the General Shareholders’ Meeting, on 8 July (ex-dividend date) payment was made of a single dividend of €0.50 gross per share corresponding to said financial year for a total of €80m. This dividend is equivalent to 55% of the earnings per share for 2007 and is in line with the company’s recurring shareholder remuneration policy (pay-out in the range of 50-60%).

This total dividend represents a dividend yield of 2.7% based on Indra’s share price at year-end 2007 (€18.58).

It also represents an increase of 16% from the ordinary dividend paid last year against 2006 earnings.

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ANNEX 1: MAJOR CONTRACTS WON THIS QUARTER Some of the major contracts won by Indra in 2Q08 by business area included: A) Transport and Traffic: Modernisation of Mongolia’s air traffic management and control systems. Maintenance of the operational platform, simulation environments and testing of

the air traffic control system for AENA. Operation of a System for Managing People with Reduced Mobility for AENA. Supply and installation of an access control system at San Sebastian’s

commuter train hub. Development of a system for a communications network and road safety for the

city of Torrejón de Ardoz. Air traffic control 3D simulator (tower, approach and flight path) for the Kenyan

Civil Aviation Authority’s training school. Expansion of a contract for an air traffic control system (ACC) in Rostov

(Russia). Operation Assistance System (SAE) for transport company La Montañesa

(Transporte Urbano de Pamplona). Traffic and toll management system for Santiago de Chile’s northeast access

motorway. B) Telecoms and Media: Full-service management of mid-range infrastructure for Telefónica de Chile and

Telefónica Móviles de Chile. Rollout of single model of ERP LATAM at Telefónica in Peru. Support application maintenance service for Colombia Telecom's network. Annual development and support service for Vodafone’s online channel for

capturing individual and corporate customers and increasing customer loyalty. Roll-out of a campaign management system (Epiphany) for ONO. Corporate catalogue road map project for France Telecom.

C) Public Administration and Healthcare: System for issuing passports, for Mexico's Secretary of Foreign Affairs. Management and systems model for modernising the Philippines Supreme

Court’s justice administration. Rollout of the Web environment for the National Institute of Workplace Safety

and Hygiene (INSHT). Rollout of a clinical history documentation system for Grupo Hospitalario Quirón. Development of systems for managing Healthcare Abroad for the Spanish

Ministry of Health and Consumer Affairs. Research and development on a Dependence Information System for the

Valencia Social Services Agency (AVAPSA). Electronic prescription system for Ceuta and Melilla.

D) Financial Services: Implementation of an advertising campaign management system at ING Direct. Analysis, design, development, rollout and maintenance of applied software for

BBVA BANCOMER. Outsourcing of loan processing for BBVA Colombia. BPO for IBM Mexico. Maintenance and development of systems for Mexico’s National Commission for

Retirement Savings. Implementation reporting and balanced scorecard for insurance company

Quinta de Salut l Aliança. E) Energy and Industry: SAP-based corporate systems application management (finance, logistics and

purchasing departments) for Gas Natural. Rollout of Oracle E-Business Suite finance, supply and payroll modules for

Electricity of Vietnam.

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Management of the Unión Fenosa Corporation’s Corporate University 2008. Rollout of the BRISA system (real-time information, monitoring and operation)

for managing Enel UF Energías Renovables’ wind generation facilities. New designs and developments for low-, mid- and high-tension power line

modules, analysis of distribution costs and other technical features of Unión Fenosa Distribución’s Mileto benchmark network model.

Maintenance of legacy systems at Companhia Energética de Minas Gerais (CEMIG) in Brazil.

Rollout of a single ERP solution for the UK group UCB (United Cast Bar Ltd). Annual renewal of the 2008 outsourcing contract for Arcelor. Development and maintenance of production and logistics applications for Ford. Preventive and corrective maintenance on blood banking equipment assigned to

FALCON instruments by the Mexican Social Security Institute. F) Defence and Security: Integrated surveillance system on Romania’s Black Sea border. Development of EC-225 helicopter flight simulator for Eurocopter. Adaptive software maintenance for the pilotless aircraft IT systems section of

the Spanish Ministry of Defence. Full-service maintenance, engineering support and other services for electronic

war game systems at Spanish Air Force headquarters. Maintenance of automatic testing systems for the C.15 for the Spanish Air

Force. Development of optical systems for periscopes on the Spanish Navy’s S70

submarine fleet. Friend-or-foe identification systems for the Spanish Armada’s Maritime Action

Ships. Development of broadband digital reception radar systems for CH53 helicopters

for the German Army. Expansion of information communications delivery system for Euromids. Controlled avionics motor systems for Airbus A319, A320 and A321 aircraft.

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ANNEX 2: CONSOLIDATED INCOME STATEMENT

1H08 1H07 Variation €M €M €M %

Revenue 1,247.0 1,122.6 124.4 11.1Other income 7.7 9.2 -1.5 -16.6Materials consumed and other operating expenses (589.1) (559.1) (30.0) 5.4Personnel expenses (505.5) (445.1) (60.4) 13.6Results on non-current assets and other results (0.8) 0.0 (0.8) --Gross operating profit (EBITDA) 159.2 127.6 31.6 24.8

Depreciations (17.4) (16.8) (0.6) 3.3Net operating profit (EBIT) 141.8 110.7 31.1 28.1EBIT margin 11.4% 9.9% 1.5 p.p --

Net financial result (6.6) (2.3) (4.3) 189.8Share of profits / (losses) of associates and other investees 3.1 0.8 2.3 281.6Profit before tax 138.3 109.3 29.0 26.5

Income tax expense (35.5) (31.5) (4.0) 12.6

Profit for the period 102.8 77.7 25.0 32.2

Attributable to minority interests (2.4) (2.9) 0.6 -18.8

Profit attributable to equity holders of the parent 100.4 74.8 25.6 34.2 Figures not audited.

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ANNEX 3: INCOME STATEMENTS BY SEGMENT

1. Solutions 1H08 1H07 Variation €M €M €M %

Revenue 926.9 842.3 84.6 10.0Contribution margin 192.0 172.3 19.7 11.4Contribution margin / Revenues 20.7% 20.5% -- --Share of profits / (losses) of associates (0.1) 0.7 (0.8) --Profit for the segment 192.0 173.0 18.9 11.0 2. Services 1H08 1H07 Variation €M €M €M %

Revenue 320.1 280.3 39.8 14.2Contribution margin 54.4 44.3 10.1 22.9Contribution margin / Revenues 17.0% 15.8% -- --Share of profits / (losses) of associates 0.0 0.1 (0.1) --Profit for the segment 54.4 44.4 10.0 22.9 3. Total consolidated 1H08 1H07 Variation €M €M €M %

Revenue 1,247.0 1,122.6 124.4 11.1Consolidated contribution margin 246.4 216.6 29.8 13.8Contribution margin / Revenues 19.8% 19.3% -- --

Other non-distributable corporate expenses

(104.6) (105.9) 1.3 (1.2)Consolidated net operating profit (EBIT) 141.8 110.7 31.1 28.1

Figures not audited

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ANNEX 4: CONSOLIDATED BALANCE SHEET

1H08 1H07 Variation

€M €M €M

Property, plant and equipment 134.1 131.2 2.9 Intangible assets 70.6 63.1 7.5 Investment in associates and other investments 38.6 37.0 1.6 Goodwill 423.5 424.3 (0.8)Deferred tax assets 34.6 34.1 0.5 Non-current assets 701.4 689.6 11.7

Assets held for sale 0.5 0.5 0.0 Operating current assets 1,543.6 1,582.4 (38.8)Other current assets 58.7 56.1 2.6 Cash and cash equivalents 25.7 32.2 (6.5) Current assets 1,628.5 1,671.1 (42.6)

TOTAL ASSETS 2,329.9 2,360.8 (30.9)

Share capital and reserves 764.4 739.5 24.9 Treasury shares (76.1) (42.9) (33.2) Equity attributable to equity holders of the parent 688.3 696.6 (8.3)

Minority interests 42.4 42.1 0.4

TOTAL EQUITY 730.8 738.7 (7.9)

Provisions for liabilities and charges 5.2 8.9 (3.7)Long term borrowings 46.0 46.1 (0.2)Other financial liabilities 0.0 38.5 (38.5)Deferred tax liabilities 30.4 29.9 0.5 Other non-current liabilities 20.7 20.8 (0.1) Non-current liabilities 102.3 144.2 (41.9)

Current borrowings 181.1 136.4 44.6 Operating current liabilities 1,017.4 1,149.3 (131.9)Other current liabilities 298.3 192.2 106.1 Current liabilities 1,496.8 1,477.9 18.9

TOTAL EQUITY AND LIABILITIES 2,329.9 2,360.8 (30.9)

Net cash /(debt) position (201.3) (150.3) (50.9)

Figures not audited

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ANNEX 5: CONSOLIDATED CASH FLOW STATEMENT

1H08 1H07 Variation €M €M €M

Profit before tax 138.3 109.3 29.0Adjusted for: - Depreciations 17.4 16.8 0.6 - Provisions and capital grants (2.8) (9.9) 7.1 - Results on non-current assets and other results 0.8 (0.0) 0.8 - Share of profits / (losses) of associates and other investees (3.1) (0.8) (2.3) - Net financial result 6.6 2.3 4.3 - Share options expense 1.5 1.5 0.0 + Dividends received 0.1 0.1 0.0Operating cash-flow prior to changes in working capital 158.8 119.2 39.6

Receivables, net (79.4) (49.5) (29.8) Inventories, net (20.0) (25.1) 5.1 Payables, net 6.3 11.4 (5.1)Change in working capital (93.1) (63.2) (29.9)

Other operating changes (38.5) (10.3) (28.3)Income taxes paid (10.8) (14.4) 3.6

Cash-flow from operating activities 16.3 31.4 (15.1) Property, plant and equipment, net (16.9) (16.4) (0.5)Intangible assets, net (15.5) (10.8) (4.7)Investments, net (1.4) (34.7) 33.2

Deposits share options plan 0.0 1.6 (1.6)Interest received 1.7 2.1 (0.4)

Cash-flow provided/ (used) in investing activities (32.2) (58.2) 26.1 Changes in treasury stock (32.7) (26.0) (6.7)Dividends of subsidiaries paid to minority interests (0.1) 0.0 (0.1)Dividends of the parent company 0.0 (56.5) 56.5Increase (repayment) in capital grants 2.7 4.6 (1.9)Increase (decrease) in borrowings 45.9 70.4 (24.5)Interest paid (6.5) (5.3) (1.2)

Cash-flow provided / (used) in financing activities 9.4 (12.7) 22.0

NET CHANGE IN CASH AND CASH EQUIVALENTS (6.5) (39.5) 33.1

Cash and cash equivalents at the beginning of the period 32.2 42.3 (10.1)Cash contributed by new companies 0.0 31.9 (31.9)Net change in cash and cash equivalents (6.5) (39.5) 33.1

Cash and cash equivalents at the end of the period 25.7 34.6 (8.9)Long term and current borrowings (227.0) (201.4) (25.6)

NET CASH / (DEBT) POSITION (201.3) (166.8) (34.5) Figures not audited.

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DISCLAIMER The information in this report contains certain “forward-looking" statements regarding estimates and anticipated results for the Company.

Analysts and investors should bear in mind that these statements are no guarantee of future performance or results and that they are subject to material risks and uncertainties, which could mean that actual results vary materially from the expectations contained herein.

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INVESTOR RELATIONS Alberto Valdés Pombo +34.91.480.98.74 avaldes@indra.es Diana Morilla Pastor +34.91.480.98.00 dmorilla@indra.es OFICINA DEL ACCIONISTA +34.91.480.98.00 accionistas@indra.es INDRA Avda. Bruselas 35 28108 Madrid Spain Fax:+34. 91.480.98.47 www.indra.es