Paris, France, Herndon, VA – October 30, 2007 – InfoVista (Euronext: IFV, ISIN: FR0004031649), the leading service-centric performance management software company, today announced financial results for the first quarter of its fiscal year 07/08, ended September 30, 2007.

Following the correction of InfoVista's Q1 numbers for fiscal year 06/07 (see below), comparisons are provided based on both reported and corrected numbers for that period.

Total revenues for the quarter were €10.2 million, up 11% from the reported revenues of €9.2 million or 24% from the corrected revenues in the comparable quarter last year. Revenues benefited from a 15% increase in the sales of services mainly driven by a 37% increase in professional services. For the first time ever in the first quarter of its fiscal year, InfoVista reported positive operating profit, totaling €0.2 million. However, net loss for the quarter was €0.2 million, due primarily to negative financial income.

Commenting on the quarter, Chief Executive Officer Alain Tingaud said: "Our performance this quarter starts to show the impact of the reorganization we undertook two quarters ago. Though we are far from where we wish to be, we are confident that this improving trend will continue as we launch new solutions and have reshaped our US operations. The acquisition of Accellent, which we announced separately today, fits right into our strategy and should enable us to consolidate our growth prospects. Unfortunately, the progress we are making on the operational and strategic fronts was marred in the quarter by the need for a correction of our prior fiscal year numbers. We are extremely saddened by this incident, due to the deliberate actions of one of our employees, and are taking far-reaching measures to ensure that it cannot be repeated."

Q1 FINANCIAL HIGHLIGHT

Revenues

• Total revenues for the first quarter increased to €10.2 million, as compared to reported revenues of €9.2 million or corrected revenues of €8.2 million in the comparable quarter last year. On a constant exchange rate basis, total revenues would have been €10.6 million for the first quarter.
• Service revenues contributed to 57% of total revenues, increasing 15% to €5.8 million.
• License revenues for the first quarter rose to €4.4 million, representing 43% of total revenues.

Expenses

• The gross margin in the first quarter stood at 78% of revenues, as compared to reported gross margin of 80% or corrected gross margin of 78% for the same quarter the previous year. The gross margin reflects the higher proportion of service revenues in the first quarter of the current year and re-allocation of presales technical resources to billable activities, which resulted in a shift in costs from sales and marketing to cost of services.
• Operating expenses for the first quarter totaled €7.8 million, roughly unchanged from the comparable quarter last year.
  • Sales & marketing expenses, representing 49% of total operating expenses, declined 9% year-on-year. This drop is largely due to a shift in personnel in the quarter, as certain pre-sales personnel were reallocated to billable activities, triggering a different cost allocation.
  • General & administrative expenses, which account for 21% of total operating expenses, declined 3% year-on-year.
  • Research & development expenditure increased 29% year-on-year in line with the previously announced investment in a development center in India and the strengthening of the Company's product management group.
• Financial loss for the quarter stood at €0.4 million. InfoVista incurred negative financial income due to the devaluation of its financial asset position as a result of investments made in a money market fund affected by the US subprime market.
• Total headcount at September 30, 2007 was 230, as compared to 216 at the end of September 2006.

Earnings
For the first time ever, InfoVista achieved a positive operating profit, of €0.2 million, in the first quarter of its fiscal year. However, as a result of the financial costs noted above, InfoVista posted a net loss of €0.2 million for the quarter. On a constant exchange rate basis, the net loss would have been approximately €46,000.

Balance Sheet

• Days Sales Outstanding (DSO) stood at 65 days at the end of the first quarter, an improvement compared to 96 days one year earlier or 92 days after correction.
• As at September 30, 2007, the Company's balance sheet remains strong, with no debt and with cash, short-term deposits and financial assets at €36.5 million, including €7.0 million of financial assets still exposed to a risk of valuation.
• As at September 30, 2007, there were a total of 19,754,476 and 18,614,266 InfoVista shares issued and outstanding, respectively.

Q1 OPERATIONAL HIGHLIGHTS

Strong Contribution from Service Activities:
The first quarter showed a significant contribution from professional service activities in all regions. In the first quarter of this fiscal year, the Company's professional service revenues represented €1.6 million, an increase of 37% against the same quarter of last year. Maintenance activities were strong in all regions. For the quarter, contract renewals remained high, generating total revenue of €4.3 million, which represents a year-on-year growth of 8%.

Revenue Drivers in the First Quarter:

• Total first quarter revenues in the American region amounted to €5.0 million, up 78% from a year ago, and accounted for 49% of total revenues. New customers included Terrestar, a satellite wireless service provider, which was secured with the help of Accenture. In addition, the Company received repeat orders from Bell Canada, Bell Alliant and Wells Fargo. First quarter revenues in the Americas included a €2.2 million contribution from Microsoft Corporation, pursuant to the multi-year deal announced in January 2007.
• In EMEA, total revenues declined to €4.0 million, a 26% year-on-year decline compared to previously reported revenue and 11% year-on-year compared to corrected revenues. EMEA represented 39% of total revenues in the first quarter. In EMEA, the Company won several repeat orders from major service providers such as Maroc Telecom; Telecom Italia, a newly won customer where InfoVista displaced one of its competitors; and SFR the French mobile operator.
• Asia Pacific total revenues rose by 31% year-on-year to €1.2 million, accounting for 12% of the first quarter's total revenues. InfoVista received orders from two existing customers: Reliance in India and Optus in Australia.
• Revenues from the direct sales channel increased to €6.5 million in the quarter, accounting for 63% of total revenues. Indirect revenues stood at €3.7 million, representing 37% of total revenues for the quarter.
• InfoVista's service provider revenues amounted to €6.2 million, or 61% of total revenues.

TECHNOLOGICAL DEVELOPMENTS

• During the quarter, InfoVista announced the release of VistaFoundation® Kit 4.0, a next-generation version of the Company's underlying technology platform that powers the latest versions of the VistaInsight® suite of solutions.  VistaFoundation is a set of software components that transparently provide many of the core underlying capabilities in InfoVista's suite of performance management solutions for next generation services and infrastructure.
• Also in the quarter, InfoVista announced the release of VistaInsight® for Networks 3.0, an updated version of the Company's flagship performance-monitoring software for fixed, mobile and cable service providers. 

OTHER DEVELOPMENTS
For the third year in a row, InfoVista advanced in Software Magazine's Software 500 list of the world's largest software products and services companies, moving up a cumulative 50 points in the last 3 years to 254.

RECENT EVENTS

Correction of Fiscal Year 06/07 Numbers
As a consequence of the below, the financial statements of InfoVista for fiscal year 06/07 have been corrected and include significant subsequent events that took place since the end of its fiscal year (please see attached tables).

Discovery of Side Letter
On or around October 17, 2007, InfoVista's President and Chief Financial Officer discovered that its fiscal year 06/07 results include revenues of €1.1 million that should not have been recognized. This revenue was recognized on the basis of a firm order and a certification letter that were properly signed by a reputable international partner. In this particular instance, however, these documents had been obtained improperly by the Senior Vice President of InfoVista in charge of EMEA sales operations, who concealed that he had additionally and simultaneously signed a side-letter with the partner giving it a right to exchange or return the software solution sold.

Philippe Ozanian, President and CFO, noted: "We have taken this matter extremely seriously from the second our suspicions were raised and based on our investigations, have immediately dismissed the perpetrator for cause. We have subsequently received written representation from each of our sales managers, stating that they are aware of no wrongdoings. Based on these letters and the review on our current receivables balance, we believe that this matter was an isolated incident. We have also been working non-stop with the Board's Audit Committee and our Statutory Auditors, among others, to reinforce our internal control procedures in order to preclude any reoccurrence."

Impairment Charge

• As a result of the correction that is required by the discovery of the side letter in October 2007, the Board of Directors will be required (on 7th November 2007) to re-approve the fiscal year 06/07 financial statements and related footnotes, prior to their submission to the shareholders for approval. These corrected financial statements are currently being audited by our Statutory Auditors. Therefore, the Company is required to adjust for any subsequent events or information that it receives.
• In October 2007, additional information became available in regards to the valuation of the Company's investment in Network Physics, which required a full write-off of the investment of €1.5 million compared to the previously reported charge of €1.1 million.

Acquisition of Accellent
InfoVista announced today that it has entered into an agreement to acquire France-based privately held Accellent, whose application network monitoring solutions are used by large French and international organizations to ensure the delivery of mission-critical and revenue-generating services. The acquisition adds advanced application response and traffic monitoring to InfoVista's solutions that already include best-in-class infrastructure performance management and end-to-end application and service quality monitoring capabilities. The acquisition price, without taking into account an earn-out component payable in 2011 based on high growth objectives, was €13.5 million. This works out to an enterprise value revenue multiple of 2.6x as Accellent's expected revenue for the current fiscal year, ending in June 2008, is approximately €4 million and the Company is expected to have cash and cash equivalent of approximately €3 million as at the date of acquisition. InfoVista plans to exploit additional revenue opportunities and leverage potential synergies through the acquisition of Accellent with top-line synergies expected to enhance the operating performance of InfoVista as early as fiscal year 07/08. The acquisition, subject to customary closing conditions and regulatory approvals, is expected to be completed by November 21.

Outlook
As InfoVista's transformation and reorganization progresses, InfoVista is positive about its outlook for the coming quarters. In the second quarter, InfoVista's revenues objectives, which exclude contributions from Accellent, are between €9.8 million and €10.3 million. With continued investment in research and development this quarter, the Company's bottom line is expected to be negative.

Commenting on the outlook, Mr. Tingaud said: "We will provide additional light on our objectives, including Accellent contribution to InfoVista's top and bottom line, at our forthcoming Shareholders Meeting, where we will present our Transformation and Execution Plan (TEP)."

Conference call
InfoVista will host an investor conference call today at 10:00 a.m. (EST) / 2:00 p.m. (UK) / 3:00 p.m. (Continental Europe). The call will be available by dialing +33 (0)1 70 99 42 98 in France, +44 (0)20 7806 1967 in the UK, or +1 718 354 1391 in North America and in each case followed by access code 4238450. A replay will be available shortly after the end of the call at the following numbers: France: +33 (0)1 71 23 02 48; UK: +44 (0)20 7806 1970; North America: +1 718 354 1112 - all with Pin code 4238450# .

Download the CONSOLIDATED STATEMENTS OF OPERATIONS and CONSOLIDATED BALANCE SHEETS (pdf)

Press Contact
Karena D'Arcy
Investor Relations Manager, InfoVista
+33 1 64 86 79 00
kdarcy@infovista.com

Kirsten Molyneux
Investor Relations, Gavin Anderson
+44 207 554 1428
kmolyneux@gavinanderson.co.uk

About InfoVista
InfoVista is the Service-Centric Performance Management Software Company that assures the optimal delivery of business-critical IT services. Driven by a uniquely adaptive and real-time technology foundation, InfoVista solutions improve business effectiveness, reduce operating risk, lower cost of operations, increase agility and create competitive advantage. Eighty percent of the world's largest service providers as ranked by Fortune®, as well as leading Global 2000 enterprises, rely on InfoVista to enhance the business value of their technology assets. Representative customers include ABN AMRO, Allstream, Banques Populaires, AXA, Banque de France, Bell Canada, British Telecom, Broadwing Communications, Cable & Wireless, Com Hem, Defense Information Systems Agency (DISA), Deloitte, Deutsche Telekom, France Telecom, Savvis Corporation, SingTel, Telefonica, and US Cellular. A Software Magazine 500 company, InfoVista stock is traded on Eurolist by Euronext (FR0004031649). For more information about the company, please visit www.infovista.com.

Cautionary Statement: Except for historical information contained herein, the matters discussed in this news release are "forward looking statements." These statements involve risks and uncertainties which could cause actual results to differ materially from those in such forward-looking statements; including, without limitation, risks and uncertainties arising from the rapid evolution of our markets, competition, market acceptance of our products, our dependence upon spending by the telecommunications industry and our ability to develop and protect new technologies. For a description of other factors which might affect our actual results, please see the "Risk Factors" section and other disclosures in InfoVista's public filings with French Autorité des Marchés Financiers or on its website www.infovista.com. Readers of this news release are cautioned not to put undue reliance on any forward-looking statement. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

InfoVista is a registered trademark of InfoVista, S.A.