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2015-09-15

TECHNICOLOR : TECHNICOLOR ACQUIRES VISUAL EFFECTS LEADER IN ADVERTISING THE MILL FOR €259 MILLION

TECHNICOLOR ACQUIRES VISUAL EFFECTS LEADER IN ADVERTISING THE MILL FOR €259
MILLION

Technicolor to achieve its Drive 2020 Adjusted EBITDA objective by 2017

Paris (France), September 15, 2015
-
Technicolor(Euronext Paris: TCH; OTCQX: TCLRY) announces today the acquisition
of London-based The Mill, the world's largest visual effects and content
creation studio for the advertising industry, for €259 million on a debt-free
basis.

Founded in 1990, The Mill is consistently recognized by peers and clients as a
premier visual effects provider for both advertising agencies and brands, and
has earned in excess of 1,000 industry awards. It has operations in the key
markets of London, New York, Los Angeles and Chicago.

This acquisition accomplishes many objectives set out in Technicolor's Drive
2020 strategic roadmap:

* Establishes leadership positions for visual effects and digital creation
across all segments of high-end content, including cinema, TV and
advertising;
* Reinforces Technicolor's strong portfolio of brands including MPC, Mr. X
and Mikros Image servicing a broad range of customers across 10 global
locations;
* Brings significant talent and expertise around emerging technologies such
as virtual reality content that will enable Technicolor's to enhance its
technology platform across the entire industry;
* Adds significant financial contribution with a business that has grown
revenues at a 16% CAGR since 2009 to reach €135 million in 2014 while
delivering EBITDA margins of approximately 20%;
* Allows Production Services to better balance its portfolio through
increased exposure to advertising and strengthens the financial profile of
the Entertainment Services segment. With this acquisition Production
Services accounting for approximately 40% of Entertainment Services
revenues.

"In acquiring The Mill, we are executing on our Drive 2020 strategic objective
of enhancing our market position in visual effects while improving
profitability and revenue growth concurrently with accelerating deployment of
emerging technologies," said Technicolor CEO, Frederic Rose. "In The Mill, we
have found a company that aligns with our focus on excellence in talent,
technology and operational performance. It is a perfect fit."

With these two transactions, the Adjusted EBITDA floor that Technicolor has
set for 2020 (at least €500 million) as part of its Drive 2020 strategic
roadmap will be achieved by 2017 while maintaining a strong cash flow
generation. The transaction combined with the acquisition of Cisco Connected
Devices will translate into high double digit EPS accretion for the full year
2016. The Company will update its Drive 2020 financial objectives concurrent
with its full year 2015 results.

Frederic Rose, CEO, and Esther Gaide, CFO, will hold a conference call and an
audio webcast today, Tuesday September 15th, 2015 at 6:30pm (CEST).

About Technicolor

Technicolor, a worldwide technology leader in the media and entertainment
sector, is at the forefront of digital innovation. Our world class research
and innovation laboratories enable us to lead the market in delivering
advanced video services to content creators and distributors. We also benefit
from an extensive intellectual property portfolio focused on imaging and
sound technologies, based on a thriving licensing business. Our commitment:
supporting the delivery of exciting new experiences for consumers in
theaters, homes and on-the-go.www.technicolor.com

Follow us:@Technicolor-linkedin.com/company/technicolor

Technicolor shares are on the NYSE Euronext Paris exchange (TCH) and traded in
the USA on the OTCQX marketplace (OTCQX: TCLRY).

Media Contacts

Sandra Carvalho: +1 323 208 2624

sandra.carvalho@technicolor.com

Investor Relations

Emilie Megel: +33 1 41 86 61 48

emilie.megel@technicolor.com

Laurent Sfaxi: +33 1 41 86 58 83

laurent.sfaxi@technicolor.com

PDF version
http://hugin.info/143597/R/1952236/710048.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: TECHNICOLOR via Globenewswire

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