1. Introduction - 3

    2. Main Figures - 5

    3. Commercial Activity and Revenues by Primary Segments - 6

    4. Revenues by Geographical Markets: Secondary Segments - 8

    5. Commercial Activity and Revenues by Business Area -10

    6. Analysis of Consolidated Financial Statements (IFRS) - 13

    7. Other Events This Quarter - 15

    8. Events Subsequent to the end of this Quarter - 16

    ANNEX 1: Major Contracts this Quarter - 17

    ANNEX 2: Consolidated Profit and Loss Account - 19

    ANNEX 3: Profit and Loss Account by Segments - 20

    ANNEX 4: Consolidated Balance Sheet - 21

    ANNEX 5: Consolidated Cash Flow Statement - 22

    While overall economic and industry trends have been worse than what we expected
    at the beginning of the year, Indra still ended the third quarter of 2008 with all of its
    main figures in line with forecasts. Therefore, the company is on track to once again
    meet its annual targets, which in addition have been raised twice during the year.

    The main indicators for 9M08, compared with the same period of 2007, were as

    Order intake increased by 11% to €1.92 bn (9% higher than revenues), with
    healthy growth in both the Solutions (12%) and Services (9%) business lines.

    Revenues rose 11% year-on-year to €1.77 bn, led by:

    Growth of 18% in the services and 9% in the solutions business.

    The performance in the international market, which grew by 19%. Revenues in the
    Spanish market increased by 8%.

    The good performance in all vertical markets, especially Telecommunications &
    Media, Public Administrations & Healthcare, and Financial Services. All of these
    grew by 15%, underpinned by positive trends in the Latin American and Spanish
    markets and to sharp improvement in Indra's penetration of large accounts.

    The order backlog rose 8% to €2.38 bn.

    These orders makes us completely confident that the FY08 revenue target will be
    met; revenue coverage relative to 2008 guidance has already surpassed 97%.

    The total includes €941m of contracts to be executed in 2009. This is 16% above the
    contracts pending execution in 2008 at 30 September 2007.

    EBIT in 9M08 rose 27%.

    The EBIT margin reached 11.4%, well above the level recorded in 9M07 (10%), in
    part due to the integration costs incurred last year in connection with the Azertia and
    Soluziona acquisitions. This level is fully in line with the FY08 target.

    Net profit and EPS surged 31% and 32% respectively.

    Operating cash flow increased by 27%.

    As expected, net working capital at 30 September 2008 (equivalent to 87 days’
    revenues) was similar to levels seen a year ago (86 days’).

    Regarding the company's financial position, Indra ended the year’s third quarter with
    net debt of €260.5m, having paid an ordinary dividend of €80m during the quarter.

    As announced in the 1Q08 earnings report, the company expects to reduce its net
    working capital to approximately 75 days' revenues by the end of 2008, which
    means it expects net debt to fall by then.


    Projections for the fourth quarter indicate that yet again in 2008, Indra will achieve
    higher growth and offer higher returns than both the sector average and its main
    peers, easily meeting all of the targets set for the year:

    ‰   Revenues look set to amount to around €2.38 bn, representing growth of
        9.8%, at the upper end of the target growth range of 9-10%.

    ‰   Order intake growth should be between 10 and 11% to around €2.58 bn,
        exceeding the target growth range of between 9 and 10%.

    ‰   Operating profitability will improve further, with an EBIT margin of 11.4%
        compared with 11.1% (excluding extraordinary expenses incurred in connection
        with the integration of Azertia and Soluziona) in 2007. This is in line with the
        target range of between 11.3% and 11.5%.

    ‰   Attributable profit this year should amount to around €180m, with growth of
        22%. This is fully in line with the target, which was revised upward at the end of
        the first half from a range of 18% to 22%.


    Despite the worse than expected performance of the economy and the IT industry,
    Indra has strengthened its market position in 2008. This is especially true in the
    Telecommunications and Financial Services markets, where we see scope for
    considerable organic growth for the next year. This, coupled with major opportunities
    abroad and the company’s position in the more institutional markets, makes us
    confident that in 2009 Indra will continue to outpace the sector average and sustain
    the profitability of its operations, with far higher margins than the sector average, as
    well as a healthy financial position and balance sheet.

    As in previous occasions, Indra plans to provide its sales growth and profitability
    targets early next year.

                                         The main figures for the period are as follows:

INDRA                                                   9M08 (€M)                    9M07(€M)                   Variation (%)
Order Intake                                                1,922.9                      1,731.0                             11
Revenues                                                    1,768.8                      1,590.6                             11
Backlog                                                     2,379.9                      2,199.2                              8
Net Operating Profit (EBIT)                                   200.8                    158.5 (*)                             27
EBIT Margin                                                   11.4%                   10.0% (*)                         1.4 p.p
Atributable Profit                                            140.7                        107.0                             31
Net Cash/ (debt) Position                                     260.5                        264.4                      (4.0) €M

(*)   Excluding one-off expenses incurred in FY2007 regarding the integration of Azertia y Soluziona, 9M07 net operating profit
      (EBIT) was €174.5 M, an 11.0% EBIT margin, which would have implied a year-on-year increase 0.4 p.p.

Earnings per Share
                                                        9M08 (€M)                    9M07 (€M)                  Variation (%)
(according to IFRS)
Basic EPS                                                    0.8775                      0.6634                              32
Diluted EPS                                                  0.8775                      0.6634                              32

                                         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.

                                                                         9M08 (€M)                                   9M07(€M)
Total number of shares                                                 164,132,539                                 164,132,539
Weighted treasury stock                                                   3,770,099                                  2,791,627
Total shares considered                                                 160,362,440                                161,340,912

                                         As of the end of September 2008, the weighted number of treasury shares held amounted to
                                         1,509,099. 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.

               BY SEGMENT
               The following is a breakdown of total 9M08 revenues


               Key figures for 9M08 the Solutions business and yoy comparisons are as follows:

               9M08 (€M)                 9M07(€M)              Variation €M               Variation %
Order Intake       1,424.6                  1.274.8                    149.8                       12
Revenues           1,292.1                  1.186.2                    105.8                         9
Backlog            2,011.9                  1.839.9                    172.0                         9

               Highlights include:

               Strong performance in international air traffic management systems, where Indra
               continues to expand its business. Projects in North Africa, Easter Europe and Asia
               were added this quarter to the NATS contracts in the UK and the contracts in
               Colombia, Ukraine and Mongolia mentioned in previous interim reports.

               Ground traffic system contract wins, with good performance in Intelligent Traffic
               Control systems both domestically and internationally (projects in Ireland and Israel);
               and railway traffic control and ticketing systems contracts, in areas with strong
               growth potential such as India, where Indra has won contracts for a number of
               systems for the Mumbai metro.

               Border control and surveillance systems contract wins, with projects in both the
               Spanish and international markets (e.g. integrated border surveillance system for
               Romania's Black Sea coastal border mentioned in the 1H report). Growth in both
               contracts and revenue remain high in this business area.

               The positive performance of proprietary solutions for the Financial Services market
               (IT systems for the banking industry, both in Spain and Latin America; and core
               systems for the insurance business, primarily in Spain) and for the international
               Telecommunications market, mainly in Latin America and Eastern Europe.

               Improvement in balloting projects beyond expectations, mainly in the international

               Commercial activity in the Services segment in 9M08 compared to 9M07 was as

               9M08 (€M)                 9M07(€M)             Variation €M               Variation %
Order Intake        498.2                    456.2                     42.0                        9
Revenues            476.7                    404.3                     72.4                       18
Backlog             368.1                    359.2                       8.8                       2

               Order intake remained positive, with an increase of 9% year-on-year, even though
               2Q07 featured the renewal of several multi-year contract in the Transport and Traffic,
               Telecommunications, and Defence markets.

               Revenue growth at 18% is also notable. This has been driven, as in previous
               quarters, by demand for application management and maintenance, mainly in the
               Telecommunications, Energy and Financial Services markets, and, increasingly, in
               the Public Administrations market, where demand for outsourcing and services
               management is growing.
               This performance was boosted by the availability of resources at the company’s
               international development centres, mainly in Latin America, which have enhanced
               Indra’s competitive position.

                    MARKET: Secondary Segments

                     The breakdown of revenues by geographical market is as follows:

                                9M08 (€M)                      9M07 (€M)                          Variation
                        €M             %               €M                               €M                %
Total revenues      1,768.8             100       1,590.6              100            178.2               11
Domestic            1,173.6              66       1,089.8               69             83.8                8
International        595.2               34         500.8               31             94.4               19
    Europe           295.1               17         263.9               17             31.2               12
    North America     34.1                2          38.2                2             (4.0)            (11)
    Latam            164.2                9         138.2                9             26.0               19
    Other            101.7                6          60.5                4             41.2               68

                     Business in the Spanish market through September 2008 performed in line with
                     expectations, while growth in the international market accelerated in the third
                     quarter. Growth for the full year in both markets should be in line with the guidance
                     provided at the end of the first half: i.e. 7-8% in the domestic market and 13-15% in
                     the international market.

                     In the domestic market, the best-performing areas are Energy, Public
                     Administrations, and Financial Services, with all 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 by leading financial
                     institutions and insurance companies.

                     Highlights in the international market include:

                     The performance in Latin America, one of the markets showing the fastest growth
                     in demand for IT services worldwide and where Indra continues to shore up its
                     position, especially in Mexico, Argentina, Colombia and Chile.

                     Strong growth in other countries, as mentioned in previous interim reports, thanks
                     to its international expansion in traffic systems (mainly Asia-Pacific, but also in other
                     markets in North Africa), in Defence and Security in new regions (e.g. India and
                     Kazakhstan) and in management systems for utilities, with landmark projects in the
                     Middle East and Africa.

                     The European market where, as forecast since the start of the year, growth rates
                     have been rising, driven by the air traffic management (UK market) and Defence and
                     Security businesses (projects in a number of Eastern European countries).

Finally, in the US and Canada market, the simulation business for the US Navy and
    the Transport and Traffic business are still the main areas of activity. While
    prospects for this market remain upbeat, growth is likely to come up short of
    expectations for the full year due to delays in the awarding of some defence



       USA                                             Domestic
       2%                                               Mark et


               BY BUSINESS AREA
               The breakdown of 9M08 revenues is as follows:

  28%           18%                   16%                14%                14%              10%

Defense &      Transport &           Energy &           Public Admin.     Financial         Telecom &
Security       Traffic               Industry           & Healthcare      Services          Media

               Order Intake

                9M08 (€M)                9M07(€M)              Variation €M                Variation %
Order Intake       1,922.9                  1,731.0                     191.8                       11

               Order intake in 9M08 is in line with expectations, outstripping revenues by 9% and
               rising 11% year-on-year. Both the domestic and international markets fared well
               during the period, with the latter showing the strongest growth.

               It is worth noting the performance of the following markets during the first nine
               months of the year:

               Transport and Traffic, especially in road traffic control (mainly in Spain) and air
               traffic management (ATM) systems. In ATM, the company fared well both abroad
               (contract wins in the UK, Colombia, Ukraine, Mongolia, and in 3Q08 in Morocco,
               Pakistan and Lithuania) and, most notably in recent months, in the domestic market,
               with the upgrade of a range of various systems for the Spanish airports authority,

               Energy and Industry, driven by the Energy business in both Spain and abroad (with
               growth in order intake of over 20% in both) and by Industry abroad, mainly in Latin
               America and especially Mexico.

               The Telecom and Media market, with excellent performance in the Latin American
               market, which represents more than 70% of order intake growth at this business.

               Finally, the Public Administrations and Healthcare market, with growth primarily
               coming in the domestic business thanks to major projects with the central
               government to upgrade the Ministry of Justice's systems (e.g. digitalisation of civil
               registries). In balloting projects, order intake amounted to €31.3m, in line with last
               year’s figure of €34.6m but higher than the expected at the beginning of this year,
               mainly due to order intake in the international market in 3Q08.

               Appendix 1 includes a detailed list of the main contracts won by Indra in 3Q08.

                               Total revenues in 9M08 increased by 11% year-on-year, in line with the pace
                               achieved in the previous two quarters. The breakdown by market is as follows:

REVENUES                                  9M08 (€M)            9M07 (€M)            Variación €M           Variation %
Transport and Traffic                           327.0                299.6                    27.4                    9
Telecom and Media                               187.0                162.8                    24.3                   15
Public admin. And Healthcare                    242.0                209.9                    32.1                   15 (*)
Financial Services                              240.4                209.0                    31.4                   15
Energy and Industry                             284.9                259.7                    25.2                   10
Defence and Security                            487.5                449.6                    37.9                    8
Total                                         1,768.8              1,590.6                   178.2                   11

                               (*) PA & Health, excluding balloting projects, grew by 11%

                               Revenues from the Defence and Security and Transport and Traffic markets
                               remained steady, as in the rest of the year, with growth overall close to double digits,
                               but over 10% from the international market, which currently represents 43% of joint
                               revenues. The pace of growth is expected to be maintained for the full year.

                               Revenues from the Telecom and Media market remained solid, but once again the
                               international market (Latin America and the EU) was the main growth driver in the

                               The Financial Services market is still one of the company’s fastest-growing markets
                               and should be for the full year as well, with revenue growth for the full year expected
                               to be similar to the current one. Through September, growth was strong in the
                               domestic market (in both financial and insurance markets), as well as Latin America.
                               This is a result of the sizable investments being made by large Spanish financial
                               institutions, in which Indra’s penetration is high.

                               Growth in the Public Administrations and Healthcare market was driven by the
                               sound performance in Spain in the area of the central government, mainly in the
                               Ministry for Justice. The Healthcare business also performed well.
                               The Balloting business generated €31.7m of revenue, with a nearly 50/50 split
                               between the domestic and international markets, compared with €21.2m in the same
                               period last year. No major sales are anticipated in this business in the fourth quarter,
                               so the FY08 figure could be similar to the 9M08 one, which would mean a slight
                               increase from last year (€30.3m).

                               Finally, in the Energy and Industry market, noteworthy was the performance of the
                               Energy business in Spain and of the Industry business in Latin America.

Order backlog
          Order intake in 9M08 outstripped revenues by 9%, driving an 8% year-on-year
          increase in the order book.

                     9M08 (€M)               9M07 (€M)      Variación €M          Variation %
BACKLOG                 2,379.9                 2,199.2             180.8                     8

          In the light of business performance in the first nine months of the year and the
          volume of orders in the backlog to be executed in 4Q08, revenue coverage relative
          to 2008 guidance stands at 97%. In addition, the order book at the end of
          September already included contracts worth €941m that will be executed in 2009.

     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 9M08 with comparative figures for 9M07.

     Highlights from the 9M08 income statement (appendix 2) vs. 9M07 include:

     EBIT of €200.8m, an increase of 27%. The EBIT margin reached 11.4% vs. 10% in
     9M07 (which would have been 11% if we exclude the €16mn of one-off expenses
     incurred last year in connection with the Azertia and Soluziona acquisitions).

     We expect a similar margin for the full year, which would be in line with the FY08
     guidance for an EBIT margin in the range of 11.3% to 11.5%.

     Attributable profit rose 31.5% to €140.7m. Highlights in relation to net profit:

     ƒ   net financial expenses of €12.1m, higher than last year’s figure mainly due to a
         higher average net debt position in the first nine months of this year and higher
         interest rates.

     ƒ   a 25.6% tax rate, lower than the rate for 9M07 (27.5%), due mainly to a
         reduction in the prevailing Spanish statutory corporate income tax rate from in
         2008 from 32.5% to 30%. Tax rate for 2008 is expected to be slightly above

     Appendix 4 provides a comparison of the balance sheet at 30 September 2008 and

     The most significant variations were commented on at length in the previous interim
     report, and mainly include a reduction in “Other financial liabilities” due to the
     transfer to “Other current liabilities” 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 through an equity swap arranged with a financial
     institution. This transfer was required as the options granted under this plan began to
     vest in April of this year, with 20,000 options being exercised in 2Q08, leaving
     2,261,000 options outstanding.

     Net working capital totalled €566.8m, equivalent to 87 days' revenues, similar to
     the level a year ago. The company expects to end 2008 with net working capital of
     around 75 days’ revenue, a similar level to that at the end of 2007.

     Highlights of the cash flow statement for the nine months ended 30 September

     ƒ   Operating cash flow of €228.8m, a 27.6% year-on-year increase.
     ƒ   Investment in working capital of €134m, in line with targets.
     ƒ   The payment of ordinary dividend for this financial year of €80m at the
         beginning of the third quarter.
     ƒ   Investment in treasury stock of €24.6m, following the sale of around €8m in the
         third quarter, ending the period with treasury stock representing 0.97% of share

Net debt at 30 September 2008 stood at €260.5m, but should decline by year’s end.

                        Human Resources

                        The total workforce in 9M08 consisted of 24,701 people. The increase with respect
                        to 9M07 and FY07 was as follows:

                  Variation in consolidation         Ordinary
Employees                                                             Total Variation           Variation (%)
                                  Perimeter          Variation
From 30/09/2007                         159              1,557                 1,716                   7,5%
From 31/12/2007                          15              1,204                 1,219                   5,2%

                        The average workforce was 24,292 employees, 12,5% more than a year earlier.
                        The breakdown is as follows:

                  Variation in Consolidation         Ordinary
Employees                                                             Total Variation           Variation (%)
                                  Perimeter          Variation
From 30/09/2007                         404              2,295                 2,699                  12.5%

                        At 30 September 2008, 23% of the company’s total workforce was in the
                        international market, mainly Latin America (16% of the total).


     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 gross dividend of €0.50 per share corresponding to 2007
     financial year for a total of €80m. This dividend is equivalent to 55% of the 2007
     earnings per share and is in line with the Company’s recurring shareholder
     remuneration policy (pay-out of 50-60%).

     Such dividend implies a yield of 2.7% on the closing share price at the end of 2007
     (€18.58), and a 3.0% yield on the closing share price at the end of September 2008
     (€16.78), and implies a 16% increase over the 2006 dividend paid last year.

     The company reports no significant events following the end of the quarter.

     Some of the major contracts won by Indra in the third quarter of 2008, by business
     area, include:

     A) Transport & Traffic:
     ƒ   Access control security system for the Toluca International Airport, Mexico.
     ƒ   Traffic management systems for the A-66 and A-7 motorways for the Spanish
         General Directorate of Traffic.
     ƒ Rollout of the PSR/MSSR air traffic control system in the Kaunas and Palanca
         airports in Lithuania.
     ƒ   Implementation of a complete access control system on the Mumbai
         underground (India).
     ƒ Development of three air traffic control simulators in Morocco.
     ƒ Improvements to air traffic management systems at the Warsaw, Katowice and
         Gdansk airports in Poland.
     ƒ   Monopulse secondary surveillance radar system for air traffic management and
         radio navigation aid system for the Libyan Civil Aviation Authority.
     ƒ   Toll systems for the Waterford N25 - Southlink N25 and N6 Galway-East
         Ballinasloe motorways (Ireland).
     ƒ   Toll system for Carmel motorway (Israel).
     ƒ Installation of an air traffic control simulator in Bosnia – Herzegovina.
     ƒ   Dynamic traffic management system and signalling on the N-340 motorway.

     B) Telecom & Media:
     ƒ Development and maintenance of network systems applications for Telefónica
         de España.
     ƒ   Convergence for Telefónica Perú fixed and wireless operators with the single
         ERP model.
     ƒ Convergence of Telefónica Empresas CTC Chile with the single Latin American
         ERP model .
     ƒ   Rollout of latest version of SAP for Vivo.
     ƒ Multi-channel strategy to optimise commercial results at Telesp
         (Telecomunicações de São Paulo)
     ƒ   Implementation of corporate scorecard and rollout of SAP-based international
         radio union management system for Radiopolis (Mexico).
     ƒ   Development, installation and maintenance of roaming server for Telecom
         Kenya (France Telecom).
     ƒ   Maintenance of front office and Interactive Voice Response (IVR) platforms for
         France Telecom’s customer care service.

     C) Public Administration & Healthcare:
     ƒ   Integrated clinical management system for the E.P.H. Alto Guadalquivir Hospital
     ƒ Electronic prescription system for the Armed Forces Social Institute (ISFAS).
     ƒ Picture Archiving and Communication System (PACS) for the La Inmaculada
         Hospital (Almeria).
     ƒ Medical records control system for the new Colombian Empresa Promotora de
         Salud (health promoting company).
     ƒ   Digital signature system for the University of la Punta (Argentina).

     D) Financial Services:
     ƒ   Implementation of new personal banking model for La Caixa.
     ƒ   Installation of a Project Management Office (PMO) for La Caixa to co-ordinate
         the opening of bank branches and agents' offices abroad.
     ƒ   Document life cycle management system (DLCM) for BBVA.
     ƒ   Rollout for BBVA of integrated corporate electronic banking platform in a
         number of countries in Latin America.
     ƒ   Implementation of management modules for third-party collection and billing for
         medical care following traffic accidents for Zurich, Spain.

ƒ   Study on the installation of an CRM system for Mutua Universal Mugenat.
     ƒ   Communication platform for exchanging information in Motor and General
         Insurance Company of Europe (Toyota Group).
     ƒ   Material damage claims and image management modules for car insurance
         claims made under the CIDE-ASCIDE agreement for FIATC Mutua.
     ƒ   New bancassurance and life insurance products for Mapfre.

     E) Energy & Industry:
     ƒ   Installation of our Geographical Information System for Dams & Cascades
         (hydraulic dam subsidiary of NEK, the Bulgarian national power company).
     ƒ Maintenance of integrated plant management systems for ENEL's power
         stations in Italy.
     ƒ Maintenance of Electricidade de Portugal's energy management applications.
     ƒ   Installation of fuel supply management system for Endesa Servicios.
     ƒ   Installation and maintenance of the "Equivalent Premium" settlement application
         and maintenance of the payment guarantee system of the Spanish National
         Energy Commission (CNE).
     ƒ   Strategic renewable energies plan for wind energy group Gecalsa.
     ƒ   Installation of a risk management and energy transactions solution for
         Colombian company Ecopetrol.
     ƒ   Installation of a package of SAP solutions in Panamanian dairy products group
         Estrella Azul.
     ƒ Installation of the sales management system (SMS) in Uruguayan national
         water company OSE (Obras Sanitarias del Estado).

     F) Defence & Security:
     ƒ   Dual band touch screens for satellite communications for the French armed
     ƒ   SATCOM maintenance for the Spanish Army.
     ƒ Automatic maintenance systems for the US Navy's F/A-18 aircraft.
     ƒ   Maintenance service for the gunsights and optical sensors of the Coastal
         Artillery Command (MACTA) for the Spanish Ministry of Defence.
     ƒ   Thermal visioning systems adapted for the TC3 tower on the BMR armoured
         personnel carrier of the Army's Logistics Support Command (MALE).
     ƒ Fully Integrated Tactical System (FITS) for the Chilean Navy's maritime patrol
     ƒ   Controlled avionics motor systems for Airbus A319, A320 and A321 aircraft.


                                             ANNEX 2: CONSOLIDATED INCOME
                                                                 9M08      9M07        Variation
                                                                    €M        €M          €M          %

Revenue                                                         1,768.8   1,590.6      178.2        11.2
Other income                                                        9.5      13.8       (4.3)      (31.2)
Materials consumed and other operating expenses                 (839.4)   (783.1)      (56.3)        7.2
Personnel expenses                                              (712.2)   (636.8)      (75.4)       11.8
Results on non-current assets                                       0.9       0.0         0.9          --
Gross operating profit (EBITDA)                                  227.6     184.5         43.1       23.3
                                                                 (26.8)    (26.0)       (0.7)        2.9
Net operating profit (EBIT)                                      200.8     158.5         42.3       26.7
EBIT margin                                                      11.4%     10.0%      1.4 p.p          --
                                                                 (12.1)     (8.0)       (4.1)       51.6
Net financial result
Share of profits / (losses) of associates and other investees       3.5       1.7         1.7      100.2
Profit before tax                                                192.1     152.2         39.9       26.2
                                                                 (49.2)    (41.9)       (7.3)       17.5
Income tax expense
Profit for the period                                            142.9     110.4         32.6       29.5
                                                                  (2.2)     (3.3)         1.1      (33.0)
Attributable to minority interests

Profit attributable to equity holders of the parent              140.7     107.0         33.7       31.5

                                     Figures not audited.

1. Solutions
                                                             9M08      9M07            Variation
                                                                €M        €M              €M         %

Revenue                                                     1,292.1   1,186.2          105.8        8.9
Contribution margin                                          267.9     249.6             18.3       7.3
Contribution margin / Revenues                               20.7%     21.0%               --         --
Share of profits / (losses) of associates                       0.3       1.2           (0.9)         --
Profit for the segment                                       268.2     250.8             17.4       7.0

2. Services
                                                             9M08      9M07            Variation
                                                               €M        €M              €M          %

Revenue                                                      476.7     404.3            72.4       17.9
Contribution margin                                           83.8      61.7            22.1       35.9
Contribution margin / Revenues                               17.6%     15.3%               --         --
Share of profits / (losses) of associates                       0.0       0.1           (0.1)         --
Profit for the segment                                        83.8      61.8            22.0       35.9

3. Total consolidated
                                                             9M08      9M07            Variation
                                                                €M        €M              €M         %

Revenue                                                     1,768.8   1,590.6          178.2       11.2
Consolidated contribution margin                             351.7     311.3            40.4       13.0
Contribution margin / Revenues                               19.9%     19.6%               --         --

Other non-distributable corporate expenses                  (150.9)   (152.8)             1.9      (1.2)
Consolidated net operating profit (EBIT)                     200.8     158.5            42.3       26.7

                                      Figures not audited


                                                              9M08       2007      Variation
                                                                 €M        €M             €M

     Property, plant and equipment                            133.1     131.2             1.9
     Intangible assets                                         73.3      63.1            10.2
     Investment in associates and other investments            43.2      37.0             6.2
     Goodwill                                                 431.5     424.3             7.2
     Deferred tax assets                                       31.4      34.1            (2.7)
       Non-current assets                                     712.5     689.6            22.9

     Assets held for sale                                        0.2       0.5           (0.3)
     Operating current assets                                1,579.6   1,582.4           (2.8)
     Other current assets                                      85.6      56.1            29.5
     Cash and cash equivalents                                 18.2      32.2           (14.0)
       Current assets                                        1,683.6   1,671.1           12.4

     TOTAL ASSETS                                            2,396.1   2,360.8           35.3

     Share capital and reserves                               806.9     739.5            67.4
     Treasury shares                                          (64.9)    (42.9)          (22.0)
       Equity attributable to equity holders of the parent    742.0     696.6            45.4

     Minority interests                                        41.4      42.1            (0.7)
     TOTAL EQUITY                                             783.4     738.7            44.8

     Provisions for liabilities and charges                      4.6       8.9           (4.3)
     Long term borrowings                                      50.6      46.1             4.5
     Other financial liabilities                                 0.0     38.5           (38.5)
     Deferred tax liabilities                                  30.9      29.9             1.0
     Other non-current liabilities                             24.5      20.8             3.7
       Non-current liabilities                                110.6     144.2           (33.6)

     Current borrowings                                       228.1     136.4            91.6
     Operating current liabilities                           1,012.8   1,149.3         (136.5)
     Other current liabilities                                261.2     192.2            69.0
       Current liabilities                                   1,502.1   1,477.9           24.2

     TOTAL EQUITY AND LIABILITIES                            2,396.1   2,360.8           35.3

     Net cash /(debt) position                               (260.5)   (150.3)         (110.1)

                                      Figures not audited

                                                                     9M08      9M07      Variation
                                                                       €M        €M            €M

Profit before tax                                                    192.1     152.2           39.9
Adjusted for:
 - Depreciations                                                     26.8      26.0              0.7
 - Provisions, capital grants and others                             (0.2)     (7.1)             6.9
 - Results on non-current assets                                     (0.9)     (0.0)           (0.9)
 - Share of profits / (losses) of associates and other investees     (3.5)     (1.7)           (1.7)
 - Net financial result                                              12.1        8.0             4.1
 - Share options expense                                               2.2       1.8             0.4
 + Dividends received                                                  0.1       0.1             0.0
Operating cash-flow prior to changes in working capital              228.8     179.3           49.5
  Receivables, net                                                  (58.1)   (102.3)            44.2
  Inventories, net                                                  (44.5)    (13.0)          (31.6)
  Payables, net                                                     (31.1)    (11.4)          (19.6)
Change in working capital                                          (133.7)   (126.7)           (7.0)
Other operating changes                                             (32.0)    (13.6)          (18.4)
Income taxes paid                                                   (13.7)    (29.4)            15.7
Cash-flow from operating activities                                  49.4        9.6           39.8

Property, plant and equipment, net                                  (12.2)    (21.2)            9.0
Intangible assets, net                                              (20.0)    (21.8)            1.7
Investments, net                                                    (16.1)    (36.5)           20.3
Deposits share options plan                                            0.0       1.6           (1.6)
Interest received                                                      2.0       0.7             1.3
Cash-flow provided/ (used) in investing activities                  (46.3)    (77.1)           30.7

Changes in treasury stock                                           (24.6)      (7.1)         (17.5)
Dividends of subsidiaries paid to minority interests                 (2.5)      (2.3)          (0.1)
Dividends of the parent company                                     (79.8)   (125.9)            46.1
Increase (repayment) in capital grants                                 6.7        6.4            0.3
Increase (decrease) in borrowings                                     95.9     166.7          (70.8)
Interest paid                                                       (15.2)    (10.7)           (4.4)
Cash-flow provided / (used) in financing activities                 (19.4)     27.1           (46.5)

NET CHANGE IN CASH AND CASH EQUIVALENTS                             (16.3)    (40.4)           24.1

Cash and cash equivalents at the beginning of the period              32.2      42.3          (10.1)
Cash contributed by new companies                                      2.3      31.9          (29.6)
Net change in cash and cash equivalents                             (16.3)    (40.4)            24.1
Cash and cash equivalents at the end of the period                    18.2      33.7          (15.5)
Long term and current borrowings                                   (278.7)   (298.2)           19.5

NET CASH / (DEBT) POSITION                                         (260.5)   (264.4)            4.0

                                     Figures not audited.

             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.

     Javier Marín, CFA
     Tfno: +34.91.480.98.04

     Alberto Valdés Pombo
     Tfno: +34.91.480.98.74

     Diana Morilla Pastor
     Tfno: +34.91.480.98.00


     Avda. Bruselas 35
     28108 Madrid
     Fax: +34.91.480.98.47

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