ANNUAL REPORT

HPS IN 2008

Messagefromthechairman 06

HIghlights2008 08

HPSWorldwide 10

COMPANY PRESENTATION

History 14

Overviewandactivities 16

Gouvernance 17

Productsandsolutions 19

Humanresources 21

BUSINESS ACTIVITY REPORT

Internationalenvironment 24

HPS’activitiesin2008 27

Businessactivityofsubsidiariesandinvestmentholdings 30

Research&developmentactivities 31

Futureprospects 32

Significantpost-balancesheetevents 33

FINANCIAL REPORT

Resolutions 36

2008Annualfinancialstatements 38

Statutoryauditors’reports 52

CONTENTS

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HPS IN 2008

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ORGAnISAtIOnAl StRuctuReWell-AdAPtedtOtHecHAllenGeSFAcInGtHecOMPAny

We also decided to adopt a neworganisational structure to respondmoreeffectivelytothechallengesfacingthecompanyaswegrowourbusiness,particularly overseas. effective sinceMay2008,ithasfourclearobjectives:

•Adopt amore hands-on approach tooperationalandregionalfunctions;

•Increaseautomationofourdomesticandoverseasproductionfacilities;

•enhanceR&dfacilitiesandraiseourinnovativecapabilities;

•Offer training to our customers,partnersandemployees.

HPSWell-POSItIOnedtOcAPItAlISeOnMARkettRendS

We anticipate that the outlook is likelyto remain difficult in 2009, given theeconomic and financial crisis. In theshort term, to successfully negotiatethiscrisisperiod,wemustensure thatweprovideourcustomerswithanevenmoreprofessionalandefficientservice.

dearShareholders,

2008wasmarkedbyprofoundchangesatthemacroeconomiclevel,particularlyin the financial services sector.We areconvincedthatsuchchangeswillstronglyimpact our industry over the comingyears. In today’s world, technologyis such an integral part of financialinstitutions’ day-to-day business thattheir competitiveness and very survivalwill depend on their ability to reduceoperatingcostsbyplacinginnovationattheheartoftheircorporatestrategy.

SOlIdPeRFORMAnceduetOStROnGRecuRRInGBuSIneSS

In 2008, despite the crisis whichdeepened as the year went on, HPSput in a solid performance with salesgrowingby5.1%,boostedbyahighlevelofrecurringbusiness.

the46%riseinourrecurringrevenuesis testimony to the confidence that ourcustomers have in our products. Withmorethan100PowercARdsitesinmorethan60countriesaroundtheworld,ourrecurringbusinessaccountedforalmost58%oftotalsalesin2008.thisprovidesus with the foundations on which todevelopourbusinessdespitethehighlyuncertainglobaleconomiccontext.

HPS, A MAjOR PlAyeR On AnInteRnAtIOnAlScAle

In2008,HPSalsoconfirmeditsstatusasoneofthefewtrulyglobalplayersintheelectronic payments industry. Researchconducted by Gartner, a prestigious Itconsultingfirm,rankedourPowercARdsolutionsecondamongstagroupofelevensolutionsproviders.theresearchcarriedoutbyGartnerexplicitly recognisesourproduct’s intrinsic qualities. this is thefirst time thatwehavebeenacclaimedasamajorglobalplayer.

Wewereable to takeadvantageofournew-foundstatusinoperatingtermsbysigningastrategicallyimportantcontractwith American express to provide anelectronic payments platform covering20 countries in the MenA region. theAMeXglobalnetworknotonlyprovidesus with excellent sales opportunitiesbut raises our profile significantlywitha largenumberofmajorfinancialinstitutions.

We decided to raise our internationalprofilebyestablishingParis-basedHPSeurope. this new subsidiary shouldenableustoveryrapidlytakeadvantageofthemarketopportunitiesthatwehaveidentifiedintheregion.

Wemustlookbeyondthecrisis,howeverand begin to position ourselves totake advantage of the major trendsconfronting the electronic paymentsolutionsindustry.

cost reduction, regulatory andtechnological changes in our industryandincreaseduseofelectronicpaymentsystems in every aspect of economicactivitywill create opportunities acrosstheglobe.

In conclusion, I wish to thank ourshareholders,customersandemployeeswho make an investment every day inHPS’long-termdevelopment.

“In 2008, HPS underlined its status as a major player on an

international scale as supplier of electronic payment solutions”.

Chairman and Chief Executive Officer

Mohamed HORANI

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AMERICAN EXPRESS MIDDLE EAST

GARTNER RESEARCH

Founded innewyork in1850,Americanexpresscompany is a globally-recognised financialservice and travel company. It is a leadingplayer in personal payment cards, credit cards,foreignexchange, travel, travellers’chequesandinsuranceproducts.

American express is today the leading globalissuer of non-bank cardswith 78million cards

and expenditure volumes totalling uSd484.4billionin2006.

In 2008, American express announced a globaltendertochangeitselectronicpaymentsplatformin theMenA region. HPS’PowercARdsolutionwas chosen tomanage the platform supportingAMeX’s network of cards and retailers in theregion’s20countries.

Gartner is the world’s leading informationtechnology research and advisory company.Gartnerconductsresearchandprovidesconsultingservices, data services and specialised mediaservicestoabout10,000clients.

In 2008, Gartner’s leading analytical report“MarketScopeforMultiregionalcardManagementSoftware” assessed 11 international solutionsvendors.HPSwasrankedsecondinthisreportduetoPowercard’sintrinsicqualities,itsgeographicalcoverage and its high-quality references. thisranking should enable the company to raise itsprofileamonginternationalcustomers.

HPS EUROPE

HPScontinuedtopursueitsexpansionstrategy,whichbeganin2003whenitopenedafirstoverseasofficeindubaiInternetcity.

In2008,HPSeuropewasestablishedtoexpandourpresenceintheregionandtodevelopcloserrelationswithourexistingcustomers.

this initiative will enable the company to penetrate newmarketsintheregionandcapitaliseonmarketopportunitiesinacontextofindustry-widechange(SePA,PcIetc.).

the Arab Golden chip awards recognise excellence in Ictapplicationsandservicestocutting-edgecompaniesaroundtheMenA region. the Awards have been developed by theProfessional computer Association of lebanon (PcA) inassociationwiththeArabIctOrganisation(IjMA3).

the 2008 Golden chip Award for best on-line bankingapplicationsintheMenAregionwasawardedtoHPSforitsPowercARdsolution.theMiddleeastregion,whichaccountsforalmost50%ofoursales,representsoneofourstrategicmarketsandthisrecognitionclearlyunderlinesourstatusintheregion.

2008 ARAB GOLDENCHIP AWARDS

HIGHLIGHTS

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HPS is a global leader in electronic paymentsolutions withmore than 100 sites, including7national,regionalandprivateinter-bankingcentres serving more than 300 financialinstitutions. With operations in more than60 countries, HPS has an internationalnetwork of partners and has 2 offices indubaiandParis.

60Countries

100PowerCARD sites

300Financial institutions

05regional centres ASP

03Regional offices

07National, regional and private switch systems

Sales by region

58%Asia

5%northAmerica

12%Morocco

14%Africa

14%europe

Customers by region

39%Asia

1%northAmerica

17%Morocco

29%Africa

14%europe

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COMPANY PRESENTATION

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-HPSfoundedbyagroupofelectronicpaymentexperts.

- the company signs its first contract withGroupement Professionnel des BanquesMarocainestoconductresearchintotheinter-operability of Morocco’s electronic paymentsystems.

- HPS establishes GPS, in partnership withcredimax,todeveloptheASPbusinessintheMiddleeast.

- Wins contract from Banque des etats del’Afrique centrale to equip the first regionalinter-banking centre, then, in 2005, anothercontract fromBanquecentrale desetats del’Afriquedel’Ouest.

-FirstPowercARdcontract inMoroccowithSociétéGénéraleMarocainedeBanques.

-kuwait’sBkMebecomesHPS’firstoverseascustomer.

- AcOM, first contract in japan to manage3000AtMsand6millioncreditcards.

- HPS is elected best investor in the MenAregion.

- HPS receives the award for excellencefrom Geneva-based WIPO for cutting-edgetechnologycompanies.

-HPSlistedonthecasablancaStockexchangetoaccelerateitsgrowth.

-Morocco’sfirstnationalinter-bankingcentreestablished (cMI) using HPS’ PowercARdsolution.

- HPS launches the second version ofPowercARd and totally overhauls itsorganisation.

-HPSexpandsinternationallywiththeopeningofthedubaiInternetcitybranch,witharemitfordevelopingbusinessinAsiaandtheMiddleeastregion.

-contractsignedwithcyprus’jcctoacquireinitialexperienceinthehighlyattractivemar-ketofnationalinter-bankingcentres.

-Winsthegoldawardinthetopcategoryforexports. - Second japanese contract from Shinesei

Bank.

- First north American contract from cartaSolutions.

- HPS establishes IcPS, in partnership withMauritius commercial Bank, to develop theASPactivityintheIndianOcean.1995

2004-2005

1996

20062002-2003

20002007

COMPANY HISTORY

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Hightech Payment Systems, specialising inelectronicpaymentsystems,offersasolutionformanaging multi-channel electronic paymentsthroughitsPowercARdsoftware.Itisacompletesolution, covering the entire processing chainfromtheFrontOffice(managementofterminalsand cash dispensers, on-line interface withinternationalsystems,onlinepayments,mobilepaymentsetc.)totheBackOffice(managementandprocessingforcardholdersandretailers).

HPS also provides a range of related servicesincluding systems implementation andmaintenance, training, consulting, audit andpermanentassistanceforsoftwareusers.

HPSisISO9001version2000certifiedforallitsactivities.thecompanynowemploysalmost200personswhosepurposeistodesignandprovidesolutions meeting the needs of its differentcustomersintheelectronicpaymentsindustry.

PowercARd,originallyintendedforfinancialandbankingorganisations,isnowsatisfyingdemandfrom a broader customer base requiring cardand/orpaymentmanagementincludingtelecomoperators,oilcompanies,insurancecompaniesandretailers.

PowercARd, now used by more than 100customers in 60 countries around the world,is one of the most complete products on theinternational market. It offers competitiveadvantages which enable customers reducetransactioncosts,controlalltypesofoperationalriskandmaximiseprofitabilityandefficiency.

PowercARd, which is certified by the maininternational organisations such as Visa,Mastercard, American express (Amex), dinersclubandjapancreditBureau (jcB),hasbeenadoptedbysevendomesticand regional inter-banking centres for transaction clearing andauthorisationsrouting.

HPSisfullyawareoftheimportanceofinnovationinthisindustryandthereforeinvestsheavily inR&d each year to maintain its technologicallead. that is why our experts work closelywith our customers to be able to satisfy theirneeds entirely and provide them with turnkeysolutions.

HPS is a public limited company with a Board of Directors, elected by its shareholders at its Annual General Meeting of 20 June 008.

HPS GROUP

Foundedin1995inMorocco,HPShasprogressivelyexpandeditsgeographicalcoveragebyestablishingHPSdubaiin2003andHPSeuropein2008.thepurposeofthesetwoofficesistodevelopsalesintherespectiveregionsthroughadedicatedsales-forceresponsibleforbothdirectsalesandmanaginganetworkofregionalpartners.

HPS has also developed its ApplicationService Provider (ASP) business byacquiringstakesinspecialisedcompaniesintheregion.

GPS was founded in 2004 to cover theMiddleeastandIcPSin2007forcoverageoftheIndianOcean.

STRATEGY COMMITTEE

theStrategycommitteewasestablishedtooverseeHPS’operationalperformance.ItsmaintasksincludeassistingGeneralManagementindefiningthecompany’spriorities,monitoringoperatingperformanceand implementingactionplans. It isabody which is dedicated to managingtheGroup’soperations.

theStrategycommitteecomprisestheGeneral Management team, heads ofoperatingdivisions,regionaldivisionalheads, the director of Research &development and the director ofcoordinationandInternalAudit.

COMPANY OVERVIEW AND ACTIVITIES

GOUVERNANCE

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Statutory auditors

Ernst & Young

A. Saaidi et Associés

Partner Appointed Term of o�ce ends

29 June 2007

12 December 2006 AGM ruling on the 2008 �nancial statements

AGM ruling on the 2009 �nancial statements

Quality DepartmentGhita MAZOUZ

Chairman and Chief Executive OfficerMohamed HORANI

Strategy & Marketing DivisionHanae BEN DRISS

R&D DivisionMajid HAITAMI

Coordination and Internal Audit DivisionSamir KHALLOUQUI

2 STRATEGIC DIVISIONS 2 REGIONAL DIVISIONS

Africa, Europe, North AmericaSamir LAMRISSI

Middle East, AsiaNabil IBENBRAHIM

4 Divisions

Services Division

Driss SABBAHE

PROJECTS

SUPPORT

Production Division

Mohammed GOUDRAR

PRODUCTS

DEVELOPMENT

HPS ACADEMY

Sales & Customer Relations Division

Abdeslam ALAOUI

CUSTOMER RELATIONS

PRE-SALES

COMMUNICATIONS

Finance & Resources Division

Brahim BERRADA

FINANCE

HR

LOGISTICS

STATUTORY AUDITORS

ORGANISATION

InMay2008,HPSadoptedaneworganisationalstructurewiththefollowingobjectives:

•Adoptamorehands-onapproachtooperationalandregionalfunctions;

•Increaseautomationofourdomesticandoverseasproductionfacilities;

•enhanceR&dfacilitiesandraiseourinnovativecapabilities;

•Offertrainingtoourcustomers,partnersandemployees.

THE POWERCARD SOLUTION

thePowercARdproduct isasophisticated,highly integrated electronic paymentssolution. this solution covers the entireprocessing chain for payment-relatedfinancialtransactions.theproductisofferedin three suites of solutions relating totraditionalbankingactivities.

Front-Office : provides managementfor terminals and cash dispensers. Ithandles security and verification functions,communication with acquisition terminals(eFtPoses,AtMsandtheinternet),collectingand authorising transactions, managingretailersandacquisitionterminals.

Middle-Office : provides the link betweenthe acquirer and the issuer for grantingauthorisationsandroutingfordomesticand/orinternationalinter-operability.

Back-Office : manages the issuance ofall types of card (credit, debit, prepaid,dual-brand), manages card manufactureand acquisition by retailers, clearing(international and domestic), resolution ofdisputes and accounting-related functionsforbanks.

PRODUCTS AND SOLUTIONS

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PowercARd was originally designed to satisfy traditional banking requirements but was entirelyoverhauledin2001toofferaproductthatis:

Complete : today’s PowercARd solution has been developed over several decades for financialinstitutions.thecurrentproduct is comprehensiveandsatisfiesall possible requirements relating toelectronicpayment.

Modular:theproduct’smodularnaturenotonlyprovidessolutionsadaptedtotheimmediateneedsofcustomersbutassiststhemastheirneedschangebyprovidingnewmodules.thismodularapproachalsoenablesHPStowinnewcustomerswithincompletesolutionsonwhichthePowercARdproductcanbegrafted.

Open to different acquisition platforms :theFrontOfficesolutioncanserveAtMsandeFtPoseswithinternetaccessandisalsoopentonewplatformssuchastheinternetandmobile.

Based on a new architecture:acontemporary,web-basedarchitecture(3tiers),whichmeetsthevariousneedsofthepaymentsindustrythroughanindependentortotallyintegratedapproach.PowercARdisalsoavailableusingASParchitectureandmaybecontrolledonaremotebasisinamulti-currency,multi-countryandmulti-bankenvironment.

Designed to offer operational flexibility :inordertosatisfytheneedsofnewactivities,transactionsareregister-basedandcomprisemarketing-relatedfinancial informationwhichreducestheriskof fraud.Otherindustriesareabletoadoptthetechnologybycompletingtheseregisterstotakeintoconsiderationthespecificcharacteristicsofeachindustry.

Certified to international standards :PowercARd iscertifiedby internationalorganisationssuchasVisa,Mastercard,Amex,etcandiseMVandPcIcompliant.

the purpose of HPS’ HR policy is to develop astrong corporate culturewhich guarantees staffcohesionaroundacoresetoffundamentalvalues.thecompanyhasadoptedamanagementapproachwhich encourages communication between staffandstronginter-personalrelations.thecompanyendeavourstopromotevaluessuchasconfidence,personal responsibility, communication andflexibility.

each employee is immersed in the company’scorporate culture from the moment he or shejoins the firm. A mentoring system has beenintroduced which helps new employees settleinto their newenvironment.newemployees areassignedamentorforasix-monthperiod,whichoffers assistance when needed and imparts thefirm’scorporateculture.

HPS organises staff activities on a regularbasis.Seminarsand team-buildingactivitiesare

organised around strategic or topical themes toinformorinvolveHPS’employeesinthecompany.In 2006, the company set up staff committeesresponsible for various aspects of employeerelationsandstaffbenefits.

Stafftrainingplaysanimportantroleinintegratingnew employees. In 2008, theHPSAcademywasestablished to provide ongoing professionaltrainingofahighquality,adaptedtotheneedsofeachemployee.

Asaninternationalfirm,HPSofferseachemployeethe possibility of working overseas either on atemporarybasisbyworkingoncustomerprojectsorforalongerperiodonanexpatriatecontractinoneofouroverseasofficesorsubsidiaries.

HUMAN RESOURCES

Banks and credit companies

Inter-banking centres

Domestic switch systems

Telecom operators

Pension funds

Oil companies Retailers Government

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RECENT ECONOMIC AND FINANCIAL DEVELOPMENTS

economiesaroundtheworldhavebeenseriouslyaffected by the financial crisis and slump inactivity. the advanced countries registered anunprecedented7.5%decline in realGdPduringthe fourth quarter 2008 and output is expectedto have continued to fall almost as fast duringthefirstquarter2009.AlthoughtheuSeconomymayhavesufferedmostfromintensifiedfinancialstrains and the continued fall in the housingsector,WesterneuropeandadvancedAsiahavebeen hit hard by the collapse in global trade,as well as by rising financial problems of theirown and housing corrections in some nationalmarkets. emerging countries too are sufferingbadly and contracted 4% in the fourth quarter2008onaggregate.thedamageisbeinginflictedthrough both financial and trade channels,particularlytoeastAsiancountriesthatrelyheavilyon manufacturing exports and the emergingeuropean and commonwealth of IndependentStates(cIS)economies,whichhavedependedonstrongcapitalinflowstofuelgrowth.

Inparallelwiththerapidcoolingofglobalactivity,inflation pressures have subsided quickly.commodity prices fell sharply from mid-yearhighs,causinganespeciallylargelossofincomefor the Middle eastern and cIS economies butalso for other commodity exporters in latinAmerica and Africa. At the same time, risingeconomic slack has contained wage increasesanderodedprofitmargins.Asaresult,12-monthheadlineinflationintheadvancedeconomiesfellbelow1%inFebruary2009.Ithasalsomoderatedsignificantly across the emerging economies,although in some cases falling exchange rateshavedampenedthedownwardmomentum.

Wide-ranging and often unorthodox policyresponses have made limited progress instabilising financialmarkets and containing thedownturn in output, failing to arrest corrosivefeedback between weakening activity andintense financial strains. Initiatives to staunchthebleedingincludepubliccapitalinjectionsandan array of liquidity facilities, monetary easingandfiscalstimuluspackages.Whilst therehavebeen some encouraging signs of improvingsentiment,confidenceinfinancialmarketsisstilllow,weighingagainsttheprospectsforanearlyeconomicrecovery.

thebroadretrenchmentofforeigninvestorsandbanksfromemergingeconomiesandtheresultingbuild-up in funding pressures are particularlyworrisome. new securities issues have cometo a virtual stop, bank-related flows have beencurtailed,bondspreadshavesoared,equitypriceshavedroppedandexchangemarketshavecomeunderheavypressure.Beyondageneralriseinriskaversion,thisreflectsarangeofadversefactors,includingthedamagedonetoadvancedeconomybanksandhedgefunds,thedesiretomovefundsunderthe“umbrella”providedbytheincreasingprovision of guarantees inmaturemarkets andrising concerns about the economic prospectsandvulnerabilitiesofemergingeconomies.

Animportantsideeffectofthefinancialcrisishasbeenaflight tosafetyand returnofhomebias,whichhavehadan impacton theworld’smajorcurrencies.SinceSeptember2008,theu.S.dollar,euroandyenhaveallstrengthenedinrealterms.thechineserenminbiandcurrenciespeggedtothedollar(includingthoseintheMiddleeast)havealsoappreciated.Mostotheremergingeconomycurrencies have weakened sharply, despite theuseofinternationalreservesforsupport.

INTERNATIONAL ENVIRONMENT

OUTLOOK AND RISKS

theWorld economic Outlook (WeO) projectionsassume that financial market stabilisation willtakelongerthanpreviouslyenvisaged,evenwithstrongereffortsbypolicymakers.thus,financialstrains in thematuremarkets are projected toremain heavy until well into 2010, improvingonlyslowlyasgreaterclarityoverlossesonbadassets and injections of public capital reduceinsolvencyconcerns,lowercounterpartyrisksandmarketvolatilityandrestoremoreliquidmarketconditions.Overallcredittotheprivatesectorinthe advanced economies is expected to declineinboth2009and2010.Meanwhile,emerginganddevelopingeconomiesareexpectedtofacegreatlycurtailedaccesstoexternalfinancinginbothyears.

the projections also incorporatestrong macroeconomic policysupport. Monetary policy interestrates are expected to be loweredto or remain near the zero boundin the major advanced economies,while central banks continue toexplorewaystouseboththesizeandcompositionoftheirbalancesheetstoeasecreditconditions.Fiscaldeficitsareexpectedtowidensharplyinbothadvanced and emerging economies,as governments are assumed toimplement fiscal stimulus plans inG20 countries amounting to 2% ofGdPin2009and1.5%ofGdPin2010.the projections also assume thatcommodity prices remain close tocurrent levels in 2009 and rise onlymodestly in 2010, consistent withforwardmarketpricing.

evenwithdeterminedpolicy actionsand,anticipatingamoderationintherate of contraction from the secondquarteronward,globalactivityisnowprojected to decline 1.3% in 2009, asubstantial downward revision fromthejanuaryWeOupdate.thiswouldrepresent by far the deepest post-World War II recession. Moreover,the downturn is truly global: outputper capita is projected to decline

in countries representing three-quarters ofthe global economy, and growth in virtually allcountries has decelerated sharply from ratesobserved in 2003-07.Growth is projected to re-emergein2010,butatjust1.9%wouldbesluggishrelativetopastrecoveries.

the current outlook is exceptionally uncertainwith risks weighed to the downside. thedominant concern is that policies will continuetobe insufficienttoarrestthenegativespiralofdeterioratingfinancialconditionsandweakeningeconomies, particularly in the face of limitedpublicsupportforpolicyaction.Furthermore,ina highly uncertain context, fiscal andmonetarypoliciesmayfailtogaintraction,sincehighratesof precautionary saving could lower thepaceof

de-leveraging.

On the upside however, boldpolicy implementation thatis able to convince marketsthat financial strains arebeing dealt with decisivelycould revive confidence andspendingcommitments.

(Source:InternationalMonetaryFund)

SOFTWARE AND SERVICES SECTOR

the It services sector hasclearly been impacted by thebrutality of the economiccrisisresultinginaslowdownin activity. Although Itcompanies are not directlyaffectedbythefinancialcrisis,theyaresoindirectlyduetoalackofinvestorconfidenceanda slowdownor suspensionofinvestmentinprojectsbyusercompanies.Severalcompanieshave already announced adrastic a reduction in costs

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includingahiringfreeze,acutbackonmarketingexpenses and scrutiny of all general expenses,particularlytravel-relatedexpenses.

Industryprospectsarelessthanstellaraccordingtoresearchconductedbymajorconsultingfirms.Idc predicts growth of only 2.6% in high-techspending in 2009 compared to initial forecastsof5.9%.theinstitute,byrecentlyrevisingdownits estimates, has confirmed that the crisis,hithertorestrictedtothefinancialsector,isnowimpactingallsectorsoftheeconomy.GrowthinItspendingwillbebroadlystrongerinemergingcountriesandlessdevelopedeconomies(centraleurope,easterneurope,theMiddleeast,Africaand latin America) but is unlikely to reach thedouble-digitgrowth initially forecast.themajoreconomies–theunitedStates,Westerneuropeand japan – will be among the laggards withgrowthofbarely1%.

consultingfirmGartnerismoreupbeathowever.Although it has revised down its forecasts, theeffects of the economic crisis are likely to belesspronouncedthanin2001.AccordingtoPeterSondergaard,Gartner’sVice-President,companiesarebetterpreparedtoride-outadelicateeconomicsituation and the increased emphasis on It incompanieswillalsohelplimitthedamage.

For It engineering and services companies andsoftwarepublishers,thecurrentcrisisisdifferentto that of 2001. 2001 was characterised byovercapacityintheItindustryfollowingtheheavyinvestment seen between 1998 and 2001 (year“2000”effect, theadoptionof theeuro, internet,eRP systems and the development of mobiletelephony).

Growth was 15% then versus 5-7% today.Furthermore,Ithassincebecomeindispensablewiththedevelopmentofthenetande-commerce.

companieshaveundergoneatotaltransformationbetween 2003 and 2008 – they have automatedtheirItsystems,whichhavebecomeamajorwayofgainingincompetitiveness.

lastyear,weidentifiedseveralmajortrendswhichare turning today’s electronic payment systemsindustryonitshead:

•constanteffortstoreducecosts;

•developmentofnewpaymentchannels;

•technologicalandregulatorydevelopments;

•Increasinglywidespreadacceptanceofelectronicpayment.

thesefundamentaldevelopmentswillcontinuetohaveanimpactonthemarketinthewakeofthecurrenteconomiccrisis.

SOLUTIONS DEVELOPMENT AND INTEGRATION

HPS designs and develops electronic paymentsolutions for strategic industries, which can beintegrated in total transparency with existinginfrastructure. HPS works with its customersto develop and implement systems which arespecifically adapted to their strategic businessneeds.

Our solid fundamentals and the high degree ofvisibilityregardingourinternationalbusinessgiveuseveryreasontobeconfidentaboutourabilitytosucceedin2009,eveninaneconomicenvironmentwhichhasdeteriorated.

Market indicators also give us every reason tobe optimistic. As in the past, a large number ofour customers will need to invest due to newregulations, mergers, restructuring, or, moregenerally,rationalisetheirinformationsystems.

2008 was marked by a certain number ofachievements,including:

AMEX contract signed

Afteranextremelyrigorousselectionprocess,HPSshoweditsabilitytoprovidelong-termsupporttomajorplayerssuchasAmericanexpress,whosecorebusinessiselectronicpayments.theproject’sinitial budget isuSd3.6million rising touSd8.6millionover7years.

Penetrating the English-speaking African market

HPS, which is market leader in the French-speaking African market, has, until now, beenabsent from the english-speaking market. In2008,HPSsuccessfullyreachedamajorstrategicgoalbysigningitsfirstcontractinnigeria.Withapopulationof150million,nigeria’seconomyisthesecondlargestinAfricaandoffersstronggrowthpotentialin2009andbeyond.

ACOM project fully operational

HPS’sfirstcontractinjapanwasawardedbyAcOM,thecountry’ssecondlargestcreditcompany.theAcOMsite,whichbegantobedevelopedin2007,becamefullyoperationalin2008.theprojectwascompleted ahead of schedule. the PowercARdplatformmanagesallofAcOM’sAtMs.theAcOMproject is a strategically important referenceproject for HPS given the sizeable volumesgenerated.

HPS’ ACTIVITIES IN 2008

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Technical

Business

Regulatory

Amortisation

Cost ofgoods sold

Staff costs

External expenses

Technical support

Sales

Support functions

Customer support

Projects team

Production team/R&D

MAINTENANCE BUSINESS

themaintenancebusinessregistered50%growthtoMAd31.3million in2008witha largenumberofnewcustomerssigningmaintenancecontracts.theseinclude:

-BBkinkuwait;-BankMuscatinSaudiArabia;-BGFIintheGabon;-cBAOinSenegal;-cBkinkuwait;-ccBincyprus;-dijla&FouratinIraq;-dubaiIslamicBankindubai;-unicreinPortugal;-noorIslamicBankindubai.

At 31 december 2008, only 70% of existingcustomers were in the maintenance phase.the remaining 30% are still in project theimplementationphase,meaningpotentialsalesofMAd30millioni.e.growthof100%over3years.

OTHER RECURRING ACTIVITIES

Since 2003, HPS’s organisational structure hasbeendedicated tomanagingexistingcustomers.Itsmainobjectivesaretodeliveroverallcustomersatisfaction and increase business volumes byidentifyingnewcustomerrequirements.

new business, which was mainly driven bytechnological, business or regulatory changes,generated MAd41.6million in sales in 2008, anincreaseof48%comparedto2007.

In2009,activityislikelytobedrivenbythemainregulatorychanges(eMV,PcI,disasterRecoveryetc.) and by our customers’ intention to placeinnovationattheheartoftheirrespectivecorporatestrategies.

OPERATING EXPENSES

Operating expenses primarily comprisestaffcostsandexternalexpensesrelatedtomarketing, travel and financing investmentbyleasing.

2008wascharacterisedby:

•Strongcontrolofstaffcostswhichrosebyonly5%;

• Rigorous control of external expenseswhichdeclinedby5%;

•Amodestincreaseinamortisationchargesduetothehighlevelofinvestmentin2008.

HPScontinuedtorecruitstaff,particularly for itsProjectsandR&dteamstosupportactivity inanticipationoffuturegrowth.

At31december2008,HPS’staffprofilewasasfollows:

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GLOBAL PAYMENT SERVICES (GPS)

HPShasa33.33%stakeinGlobalPaymentServices(GPS).

GPS is a Bahrain-based limited company. Founded in 2005, GPS started commercial operations inOctober2006,providingelectronicpaymentsolutionsusinganASPmodelintheMiddleeastandcardpersonalisationservices.

Itsfinancialstatementsfortheperiodended31december2008,auditedbyernst&young,revealalossofBHd211,000.

In BHD thousands 2008 2007

Sales 659 593

Operating expenses )870( )890(

Net income )211( )297(

GPSwonitsfirstcontractin2006fromcredimaxandthenasecondin2007fromchamBank.

In2008,GPSacquired4newcustomers for itsplatform–ShamilBank,tradeBankof Iraq,BahraincommercialFacilitiescompanyandBahrainIslamicBank.

INTERNATIONAL CARD PROCESSING SERVICES (ICPS)

In2007,HPSfoundedIcPS,inpartnershipwiththeMauritiuscommercialBanktodevelopitASPrange.HPShasa20%stakeinIcPS.

IcPSaimstobeamajorplayerinprocessingintheIndianOcean.thecompanywillprovideoutsourcingsolutionsfortheentireelectronicpaymentserviceschain.IcPShasalsoestablishedacentreforcardpersonalisationservices.

IcPSislikelytostartoperationsinthesecondhalf2009.

Research&developmenthasbeenattheheartofHPS’businessstrategyformanyyears.Itenablesthecompanytomaximisethevalue-addedforitscustomers,differentiateitselffromitscompetitorsandcontributetoraisingprofitability.

By incorporating the latest technologicaldevelopments,thecompanyisabletobestmeetthedemandsofitscustomers.

tomaximise itschancesofsuccess in themostcost-effectivewaypossible,theGrouphasadoptedastructuredapproachcentredon:

•AnR&ddirector,whooverseesimplementationoftheR&dstrategyacrossthefirm;

•Activeandpermanentmonitoringofcustomers’needs;

•Aproactiveapproach,upstream, in identifyingemerging technologies and key futuretechnologicalpartners;

•developing internalchannelsandsystems forexchanging views and capitalising on expertisewithinthefirm;

• A qualification and dissemination process fortechnical advances integrated into the standardversionofPowercARd.

In 2008,HPS pursued itsR&dprogrammeby investingMAd12million in developing its PowercARdsolutions.

BUSINESS ACTIVITY OF SUBSIDIARIES AND INVESTMENT HOLDINGS

RESEARCH & DEVELOPMENT ACTIVITIES

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therewasnosignificantpost-balancesheeteventin2008.

FUTURE PROSPECTS

SIGNIFICANT POST-BALANCE SHEET EVENTS

AfterayearinwhichHPSconfirmeditsstatusasamajorplayerinitsindustry,thecompanycanembrace2009withahighdegreeofconfidence.

despitethedifficulteconomicenvironment,theelectronicpaymentsystemsmarketislikelytoremainhealthy,drivenbythefundamentalregulatorychangesseeninrecentyears.AlthoughtheeMVstandardandSePAinitiativewillcontinuetohaveanimpactonsystemsaroundtheworld,newregulationswillhaveasmuchanimpactontheelectronicpaymentsindustry.

PCI standard

thePaymentcardIndustrydataSecurityStandard(PcIdSS)wasestablishedbythemajorinternationalcreditcardorganisationssuchasVisaandMastercardtoprotectcustomerdata.themainobjectiveofPcIdSSistoprotectcreditcarddatatoreducefraudandtheft.PcIdSSrequiresthateachretailerorserviceprovidermanipulating,transferring,stockingorprocessingcreditcardinformationisobligedtocomplywithPcIstandardsorfacepenaltiesand/orrisklosingtheirabilitytoprocessbyVisaandMastercard.

PcIdSSisaproactivesecuritystandardwhichdefinesrequirementsintermsofsecuritymanagement,securityrules,procedures,networkarchitecture,softwaredesignandothersecuritymeasures.

compliancewiththePcIstandardwillnecessarilyresultinactivitypeakingoverthenext2yearsforbothourexistingcustomersandfornewinstitutionsmigratingtoPcI.

Disaster Recovery

corporateactivitytodayisstronglyreliantoninformationsystems.Shouldthesesystemsfail,theimpactcouldbeconsiderablenotonlyinfinancialtermsbutontheverysurvivalofthecompanyitself.

companiesandtheirmanagementusedtobeindifferenttothevariousrisksofdisruptiontobusinessactivity.September11andothersubsequenteventshavehadamajorimpactonattitudes.themajorityof today’sdecision-makersareawareof theneed toassess therisks facing theircompaniesand thepotentialimpactonbusiness.

Overandabovegreaterriskawareness,theregulatoryenvironmenthasbecomestricterinseveralsectors.Sincethebeginningofthedecade,legislatorsintheunitedStatesandeuropehaveintroducedlegislation,standardsor rules tobetterprotect investors, companiesand individualsagainstmisappropriationoffunds,naturalrisks,accidentalrisksorinformationsystemsfailure.

thefinancialsectorineurope,forexample,mustcomplywithBaselIIwhichrequiresthatestablishmentscomplywithstandardsforevaluating,managingandmonitoringdifferenttypesofrisk.thesectorhasalso been impacted by International Accounting Standards (IAS) which require a minimum distancebetweenthemainsitesandback–upsites.IntheunitedStates,theSarbanesOxleyActappliestouSlistedcompanies.

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FIRST RESOLUTIONtheAnnualGeneralMeetingofshareholders,havinglistenedtothereadingofthereportsoftheBoardofdirectorsandtheStatutoryAuditors,approvesthebalancesheetandthefinancialstatementsfortheperiodended31december2008,showingnetincomeofMAd31,385,430.61million.Italsoapprovesalltransactionsreflectedinthesefinancialstatementsorsummarisedinthesereports.

SECOND RESOLUTIONAsaresultofadoptingtheaboveresolution,theAnnualGeneralMeetingofshareholdersgivesthedirectors and Statutory Auditors full discharge of their responsibilities in respect of theperiodended31december2008.

THIRD RESOLUTIONtheAnnualGeneralMeetingof shareholders,having listened to the readingof theStatutoryAuditors’ special report concerning the agreements referred to in Article 56 of law 17-95,approvesthetransactionsenteredintoorexecutedduringtheperiod.

FOURTH RESOLUTIONtheAnnualGeneralMeetingofshareholdersapprovestheappropriationofincomeasfollows:

Appropriation of income Situation at 31 December 2008 Appropriation ofincome 2008

Situation after appropriation

Sharecapital 65000000,00 - 65000000,00

Sharepremiumaccount - - -

legalreserve 4479728,18 1569271,53 6048999,71

Otherreserves - - -

Retainedearnings 34362336,50 14216159,08 48578495,58

netincomefortheperiod 31385430,61 - -

dividenddistribution - 15600000,00 15600000,00

TOTAL 135 227 495,29 31 385 430,61 135 227 495,29

thedecisionisaccordinglytakentopayadividendof24dirhamspershare,payableonorafter18September2009.

RESOLUTIONS FIFTH RESOLUTIONtheAnnualGeneralMeetingofshareholdersrenewsthetermofofficeofthestatutoryauditorsA.Saaidi&Associés.ItstermofofficewillexpireonthedayoftheAnnualGeneralMeetingconvenedtoapprovethefinancialstatementsfortheperiodended31december2011.

SIXTH RESOLUTIONtheAnnualGeneralMeetingofshareholdersgrantsfullpowerstothebearerofacopyorextractoftheseresolutionstocarryoutthenecessarylegalformalities.

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RESOLUTIONS

BALANCE SHEET - ASSETS

ASSETS31/12/2008 31/12/2007

Gross Amortisation & Provisions Net Net -

ConsolidatedcAPItAlISedcOStS(A) 1812219,06 848445,85 963773,21 765415,94Start-upcosts 269719,00 166351,40 103367,60 157311,48deferredcosts 1542500,06 682094,45 860405,61 608104,46Premiumsontheredemptionofdebentures - - - -IntAnGIBleASSetS(B) 15627922,92 14371034,09 1256888,83 626641,29Researchanddevelopment 13560538,03 13560538,03 - -Patents, trademarks, intellectual rights andothers - - - -

Goodwill - - - -Otherintangibleassets 2067384,89 810496,06 1256888,83 626641,29PROPeRty,PlAnt&eQuIPMent(c) 21138192,67 10083496,25 11054696,42 4864921,76land - - - -Buildings 1344432,69 165813,34 1178619,35 1232396,66technicalinstallations,plantandmachinery 6945498,49 5668210,44 1277288,05 787920,11Vehicles 580985,49 288484,46 292501,03 267581,81Furniture,officeequipmentandfittings 12217596,00 3960988,01 8256607,99 2577023,18Otheritemsofproperty,plantandequipment - - - -capitalworkinprogress 49680,00 - 49680,00 -InVeStMentS(d) 19756258,23 1200000,00 18556258,23 9051120,69long-termloans - - - -Otherfinancialreceivables 714074,76 - 714074,76 136818,00equitysecurities 19042183,47 1200000,00 17842183,47 8914302,69Otherlong-termsecurities - - - -tRAnSlAtIOndIFFeRenceS-ASSetS(e) - - - -decreaseinlong-termreceivables - - - -Increaseinborrowings - - - -tOtAlI(A+B+c+d+e) 58334592,88 26502976,19 31831616,69 15308099,68InVentORIeS(F) 48382318,71 178094,92 48204223,79 53179590,87Goods 43205,30 - 43205,30 43205,30Rawmaterialsandsupplies - - - -Workinprogress 48339113,41 178094,92 48161018,49 53136385,57Semi-finishedgoods - - - -Finishedgoods - - - -cuRRentReceIVABleS(G) 135569117,81 9733742,97 125835374,84 99149423,84Accountsreceivableandprepayments 142400,00 140000,00 2400,00 293228,38tradereceivables 127428177,73 9593742,97 117834434,76 93386045,99Staff 468371,48 - 468371,48 253349,45taxreceivables 6651786,28 - 6651786,28 4726135,36Shareholders'currentaccounts - - - -Otherreceivables 598151,38 - 598151,38 100000,00Adjustmentaccount-Assets 280230,94 - 280230,94 390664,66SecuRItIeSHeldFORSAle(H) - - - -tRAnSlAtIOndIFFeRenceS-ASSetS(I) 1513968,33 - 1513968,33 1224313,47tOtAlII(F+G+H+I) 185465404,85 9911837,89 175553566,96 153553328,18cASH&cASHeQuIVAlent-ASSetS 22789705,54 - 22789705,54 18248515,80chequesandbillsawaitingdeposit - - - -Bankbalances 22767104,37 - 22767104,37 18205594,11cashinhand 22601,17 - 22601,17 42921,69tOtAlIII 22789705,54 - 22789705,54 18248515,80

TOTAL ASSETS 266 589 703,27 36 414 814,08 230 174 889,19 187 109 943,66

BALANCE SHEET - LIABILITIES

LIABILITIES 31/12/2008 31/12/2007

SHAReHOldeRS'eQuIty 135227495,29 117206064,68

Sharecapital 65000000,00 65000000,00

Sharepremiumaccount - -

Revaluationreserve - -

legalreserve 4479728,18 2601148,53

Retainedearnings 34362336,50 12033323,13

netincomependingappropriation - -

netincomefortheperiod 31385430,61 37571593,02

totalshareholders'equity(A) 135227495,29 117206064,68

SHAReHOldeRS'eQuItyeQuIVAlent(B) - -

Investmentsubsidies - -

Statutoryprovisions - -

lOnG-teRMBORROWInGS(c) 177659,27 598389,14

debentures - -

Otherlong-termborrowings 177659,27 598389,14

PROVISIOnSFORcOntInGencIeSAndcHARGeS(d) - -

Provisionsforcontingencies - -

Provisionsforcharges - -

tRAnSlAtIOndIFFeRenceS-lIABIlItIeS(e) - 44181,13

Increaseinfinancialreceivables - -

decreaseinlong-termborrowings - 44181,13

tOtAlI(A+B+c+d+e) 135405154,56 117848634,95

cuRRentPAyABleS(F) 35810299,69 37918434,14

Accountspayable 16091983,36 16699396,01

tradepayables 635036,06 264055,43

Staff 11428090,02 13425911,67

Socialsecuritycontributions 1963227,41 1735707,24

taxpayables 1653938,69 2836762,61

Shareholders'currentaccounts - -

Othercreditors 2113639,31 235952,60

Adjustmentaccount-liabilities 1924384,84 2720648,58

OtHeRPROVISIOnSFORcOntInGencIeSAndcHARGeS(G) 1716062,43 2162291,95

tRAnSlAtIOndIFFeRenceS-lIABIlItIeS(currentitems)(H) 3003365,41 835581,92

tOtAlII(F+G+H) 40529727,53 40916308,01

cASH&cASHeQuIVAlent-lIABIlItIeS 54240007,10 28345000,70

discountbills - -

treasurynotes - -

Banknotesandoverdrafts 54240007,10 28345000,70

tOtAlIII 54240007,10 28345000,70TOTAL LIABILITIES 230 174 889,19 187 109 943,66

2008 ANNUAL FINANCIAL STATEMENTS

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INCOME STATEMENT

INCOME STATEMENT 31/12/2008 31/12/2007

OPeRAtInGReVenueSI 152789346,60 155564669,14Saleofgoods 6079055,34 5311913,56Saleofgoodsandservices 149749276,39 142894610,93Sales 155828331,73 148206524,49changeininventories -7607366,73 7336943,05Itemsofplant,propertyandequipmentproducedbythecompanyforinternaluse - -Operatingsubsidies - -Otheroperatingrevenues - -Operatingwrite-backs,expensestransfer 4568381,60 21201,60tOtAlI 152789346,60 155564669,14OPeRAtInGeXPenSeSII 119568947,82 110943086,50costofgoodssold 4832118,72 3358267,26Purchasesofmaterialsandfurnishings 3436498,46 1713989,10Otherexternalexpenses 39958973,01 42231717,88taxesotherthanonincome 3098444,59 1300884,74Staffcosts 59463878,18 56595087,51Otheroperatingexpenses 735884,38 -Operatingprovisions 8043150,48 5743140,01tOtAlII 119568947,82 110943086,50OPeRAtInGIncOMe(I-II)III 33220398,78 44621582,64FInAncIAlReVenueSIV 6147702,93 2388055,29Incomefromequitysecuritiesandotherlong-termsecurities - -Foreignexchangegains 4922340,85 1354657,83Interestandotherfinancialrevenues 1048,61 -Financialwrite-backs,expensestransfer 1224313,47 1033397,46tOtAlIV 6147702,93 2388055,29FInAncIAleXPenSeSV 7147862,52 6527681,87Interestexpenses 2523384,68 1498047,20Foreignexchangelosses 2951560,05 3650530,75Otherfinancialexpenses 158949,46 154790,45Financialprovisions 1513968,33 1224313,47tOtAlV 7147862,52 6527681,87netFInAncIAlIncOMe(IV-V)VI -1000159,59 -4139626,58RecuRRInGIncOMe(III+VI)VII 32220239,19 40481956,06nOn-RecuRRInGReVenueSVIII 1168858,93 835930,18Incomefromthedisposaloffixedassets 730000,00 484100,00Balancingsubsidy - -Write-backsofinvestmentsubsidies - -Othernon-recurringrevenues 438858,93 351830,18non-recurringwrite-backs,expensestransfer - -tOtAlVIII 1168858,93 835930,18nOn-RecuRRInGeXPenSeSIX 614271,51 88920,22netbookvalueofdisposedassets 500889,10 21449,84Subsidiesgranted - -Othernon-recurringexpenses 113382,41 67470,38non-recurringdepreciation,amortisationandprovisions - -tOtAlIX 614271,51 88920,22nOn-RecuRRInGIncOMe(VIII-IX)X 554587,42 747009,96IncOMeBeFORetAX(VII+X)XI 32774826,61 41228966,02cORPORAtIOntAXXII 1389396,00 3657373,00

NET INCOME )XI-XII( 31 385 430,61 37 571 593,02

MANAGEMENT ACCOUNTING STATEMENT

31 décembre 2008 31 décembre 2007

Saleofgoods 1 6079055,34 5311913,56costofgoodssold 2 4832118,72 3358267,26

Grossmarginonsaleofgoodsincurrentstate 1-2 1246936,62 1953646,30

Saleoffinishedgoodsandservices 3 149749276,39 142894610,93

changeininventories 4 -7607366,73 7336943,05Itemsofplant,propertyandequipmentproducedbythecompanyforinternaluse 5 - -

Productionfortheperiod 3+4+5 142141909,66 150231553,98

Purchasesofmaterialsandfurnishings 6 3436498,46 1713989,10

Otherexternalexpenses 7 39958973,01 42231717,88

consumptionfortheperiod 6+7 43395471,47 43945706,98

VAlue-Added 99993374,81 108239493,30

Operatingsubsidies - -

taxesotherthanonincome 3098444,59 1300884,74

Staffcosts 59463878,18 56595087,51

GROSSOPeRAtInGIncOMe 37431052,04 50343521,05

Otheroperatingrevenues - -Otheroperatingexpenses 735884,38 -Operatingwrite-backs,expensestransfer 4568381,60 21201,60

Operatingprovisions 8043150,48 5743140,01

OPeRAtInGIncOMe 33220398,78 44621582,64

netfinancialincome -1000159,59 -4139626,58

ReuRRInGIncOMe 32220239,19 40481956,06

non-recurringincome 554587,42 747009,96

corporationtax 1389396,00 3657373,00

netIncOMe 31385430,61 37571593,02

netincomefortheperiod 31385430,61 37571593,02

Operatingprovisions 1880416,69 1375694,48

Financialprovisions - -

non-recurringprovisions - -

Operatingwrite-backs - -

Financialwrite-backs - -

non-recurringwrite-backs - -

Incomefromthedisposaloffixedassets 730000,00 484100,00

netbookvalueofdisposedassets(restated) 500889,10 21449,84

tOtAlcASHeARnInGS 33036736,40 38484637,34

dividends 13364000,00 13364000,00

NET CASH EARNINGS 19 672 736,40 25 120 637,34

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FINANCING STATEMENT

BALANCE SHEET ITEMS 2008 2007Changes

Uses Sourceslong-termfinancing 135405154,56 117848634,95 - 17556519,61Fixedassets 31831616,69 15308099,68 16523517,01 -WORkInGcAPItAl 103573537,87 102540535,27 - 1033002,60currentassets 175553566,96 153553328,18 22000238,78 -currentliablities 40529727,53 40916308,01 386580,48 -tOtAlWORkInGcAPItAlReQuIReMent 135023839,43 112637020,17 22386819,26 -

netcASH&cASHeQuIVAlent(ASSetS-lIABIlItIeS) -31450301,56 -10096484,90 - 21353816,66

USES AND SOURCESAt 31/12/2008 At 31/12/2007

Total cash earnings Sources Uses Sourcesdividends 33036736,40 38484637,34netcASHeARnInGS 13364000,00 13364000,00disposalofintangibleassets 19672736,40 25120637,34disposalofproperty,plantandequipment - -disposalofinvestments 730000,00 484100,00Recoveryoflong-termreceivables - -dISPOSAlSAndReductIOnSOFFIXedASSetS - -Increasesinsharecapital,contributions 730000,00 484100,00Investmentsubsidies - -IncReASeInSHAReHOldeRS'eQuItyAndeQuIVAlent - -Otherlong-termborrowings - -IncReASeInlOnG-teRMBORROWInGS - -tOtAllOnG-teRMSOuRceS - -Acquisitionsofintangibleassets 20402736,40 25604737,34Acquisitionsofproperty,plantandequipment 909630,20 495637,00Acquisitionsofinvestments 7929253,90 2235587,81Acquisitionsoflong-termreceivables 8927880,78 -AcQuISItIOnSAndIncReASeSOFFIXedASSetS 577256,76 79539,00RePAyMentOFSHAReHOldeRS'eQuIty 18344021,64 2810763,81RePAyMentOFlOnG-teRMBORROWInGS - -cAPItAlISedcOStS 464911,00 632553,29tOtAllOnG-teRMuSeS 560801,16 407230,89cHAnGeIntOtAlWORkInGcAPItAlReQuIReMent 19369733,80 3850547,99cHAnGeIncASHAndcASHeQuIVAlentS 22386819,26 26309097,54tOtAl 21353816,66 4554908,19

TOTAL GENERAL 41 756 553,06 41 756 553,06 30 159 645,53 30 159 645,53

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STATEMENT OF DEPARTURES FROM STANDARD ACCOUNTING TREATMENT

Type of departure Reasons for departures Impact of departures on the company's financial position or results

I.departuresfromfundamentalaccountingprinciples notapplicable notapplicable

II.departuresfromvaluationmethods notapplicable notapplicableIII.departuresfromrulesfordrawingupandpresentingthefinancialstatements notapplicable notapplicable

STATEMENT OF CHANGES IN ACCOUNTING METHODS

Nature of changes Reasons for changes Impact of changes on the company's financial position or results

I.changesinvaluationmethods notapplicable notapplicable

II.changesinrulesofpresentation notapplicable notapplicable

FIXED ASSETS

DESCRIPTION GROSS AMOUNT AT OPEN 2008

INCREASE DECREASE GROSS AMOUNT AT CLOSE 2008 Acquisition Production Transfer Disposal Cancellation Transfer

Start-upcosts 781606,10 - - - - 511887,10 - 269719,00

deferredcosts 981698,90 560801,16 - - - - - 1542500,06

Premiumsontheredemptionofdebentures - - - - - - - -

cAPItAlISedcOStS 1763305,00 560801,16 - - - 511887,10 - 1812219,06

Researchanddevelopment 13560538,03 - - - - - - 13560538,03

Patents,trademarks,intellectualrightsandothers - - - - - - - -

Goodwill - - - - - - - -

Otherintangibleassets 1157754,69 909630,20 - - - - - 2067384,89

IntAnGIBleASSetS 14718292,72 909630,20 - - - - - 15627922,92

land - - - - - - - -

Buildings 1344432,69 - - - - - - 1344432,69

technicalinstallations,plantandmachinery 6050285,02 906638,47 - - 11425,00 - - 6945498,49

Vehicles 453619,43 137803,48 - - 10437,42 - - 580985,49

Furniture,officeequipmentandfittings 6141964,29 6835131,95 - - 759500,24 - - 12217596,00

Otheritemsofproperty,plantandequipment - - - - - - - -

capitalworkinprogress - 49680,00 - - - - - 49680,00

PROPeRty,PlAnt&eQuIPMent 13990301,43 7929253,90 - - 781362,66 - - 21138192,67

INVESTMENTS

Name of issuing company Business activity Share capital Interest in share capital Acquisition price Net book value Date of most recent

financial statements Net assets Net incomeIncome recorded in income statement

for the period

InVOlIA Itservices 1970000,00 30% 1200000,00 - 31/12/2005 -406745,57 -94073,52 -

GlOBAlPAyMentSeRVIceS Itservices 27013038,45 33% 8914302,69 8914302,69 31/12/08 7019600,00 -4599800,00 -

IcPS Itservices 27571110,90 20% 5514222,18 5514222,18 31/12/08 23846379,60 -963620,40 -

HPSeuROPe Itservices 3413658,60 100,00% 3413658,60 3413658,60 31/12/08 3413658,60 - -

TOTAL 59 967 807,95 19 042 183,47 17 842 183,47 33 872 892,63 -5 657 493,92 -

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PROVISIONS

Description Opening balance 2008PROVISIONS WRITE-BACKS Closing balance

2008Operating Financial Non-recurring Operating Financial Non-recurring

Provisionsfordepreciationoffixedassets 1200000,00 - - - - - 1200000,00

Regulatoryprovisions

Provisionsforcontingenciesandcharges

SuB-tOtAl(A) 1200000,00 - - - - - - 1200000,00

Provisionsfordepreciationofcurrentassets 7581601,32 6162733,79 3832497,22 - 9911837,89

Otherprovisionsforcontingenciesandcharges 2162291,95 - 1513968,33 735884,38 1224313,47 1716062,43

Provisionsfordepreciationofcashaccounts - - -

SuB-tOtAl(B) 9743893,27 6162733,79 1513968,33 - 4568381,60 1224313,47 - 11627900,32

TOTAL )A + B( 10 943 893,27 6 162 733,79 1 513 968,33 - 4 568 381,60 1 224 313,47 - 12 827 900,32

TABLEAU DES CREANCES

CREANCES Total

BREAKDOWN BY MATURITY BREAKDOWN BY OTHER CATEGORIES

Due in more than one year

Due in less than one year

Matured but not recovered

Amounts in foreign currency

Amounts due from government and

public institutions

Amounts due from affiliates

Amounts in bills

long-termloans - - - - - - - -Otherfinancialreceivables 714074,76 714074,76 - - - - - -FIXedASSetS 714074,76 714074,76 - - - - - -Accountsreceivableandprepayments 142400,00 140000,00 2400,00 - - - - -tradereceivables 127428177,73 23906520,74 103521656,99 - 122545595,36 - - -Staff 468371,48 - 468371,48 - - - - -taxreceivables 6651786,28 1548750,00 5103036,28 - - 6651786,28 - -Shareholders'currentaccounts - - - - - - - -Otherreceivables 598151,38 - 598151,38 - - - - -Adjustmentaccount-Assets 280230,94 - 280230,94 - - - - -cuRRentASSetS 135569117,81 25595270,74 109973847,07 - 122545595,36 6651786,28 - -

TOTAL 136 283 192,57 26 309 345,50 109 973 847,07 - 122 545 595,36 6 651 786,28 - -

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BORROWINGS

DETTES Total

BREAKDOWN BY MATURITY BREAKDOWN BY OTHER CATEGORIES

Due in more than one year

Due in less than one year

Matured but not paid

Amounts in foreign currency

Amounts owing to government and

public institutions

Amounts owing to affiliates Amounts in bills

debentures - - - - - - - -

Otherlong-termborrowings 177959,27 177959,27 - - - - - -

lOnG-teRMBORROWInGS 177959,27 177959,27 - - - - - -

Accountspayable 16091983,36 8878515,37 7213467,99 - 11105136,86 - - 85489,00

tradepayables 635036,06 - 635036,06 - 635036,06 - - -

Staff 11428090,02 - 11428090,02 - - - - -

Socialsecuritycontributions 1653938,69 - 1653938,69 - - 1653938,69 - -

taxpayables 1963227,41 - 1963227,41 - - 413696,45 - -

Shareholders'currentaccounts - - - - - - - -

Othercreditors 2113639,31 - 2113639,31 - - - - -

Adjustmentaccount-liabilities 1924384,84 - 1924384,84 - 1924384,84 - - -

Miscellaneouscreditors - - - - - - - -

cuRRentPAyABleS 35810299,69 8878515,37 26931784,32 - 13664557,76 2067635,14 - 85489,00

TOTAL 35 988 258,96 9 056 474,64 26 931 784,32 - 13 664 557,76 2 067 635,14 - 85 489,00

STATEMENT OF GUARANTEES

THIRD PARTIES IN CREDIT OR IN DEBIT Amount covered by guarantee Description Date of registration Purpose Net book value of guarantee at 31/12/2008

GuARAnteeSGIVen

3000000,00 collateral 19/01/2006 Bank 3000000,00

10000000,00 Mortgage 05/01/2006 Bank 10000000,00

GuARAnteeSReceIVednotapplicable notapplicable notapplicable notapplicable notapplicable

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FINANCIAL COMMITMENTS

THIRD PARTIES IN CREDIT OR IN DEBIT 2008 2007

*-BeAc 2781322,05 2781322,05

*-BeAc 6953305,12 6953305,12

*-POOyA 1024064,85 1024064,85

*-BAnkSOHARSAOG 60000,00 60000,00

*-BAnkOFGHAnA 511200,00 511200,00

*-FInAnceAndtReASuRy 36000,00

*-BAnkdHOFAR 1408000,00 -

*-BAnkSOHARSAOG - 124000,00

*-cAcBAnk 1728289,42 1728289,42

*-cO-OPeRAtIVecentRAlBk-cHyPRe 569650,00 569650,00

*-GIMtelMAuRItAnIe 341790,00 341790,00

*-unIOntOGOlAISedeBAnQue 254599,37 254599,37

*-unIOntOGOlAISedeBAnQue 169732,91 169732,91

*-yeMenPOSt - 239825,30

*-SOFAc 50000,00 50000,00

*-BAnQuePOPulAIRe 14500,00 14500,00

*-AdMInIStRAtIOndedOuAneS - 22569,00

*-cRedItAGRIcOleduMAROc - 58500,00

*-cRedItAGRIcOleduMAROc 45000,00 45000,00

*-cRedItAGRIcOleduMAROc 210000,00 210000,00

*-cRedItAGRIcOleduMAROc 588000,00 588000,00

*-cRedItAGRIcOleduMAROc 162000,00 162000,00

*-BARIdAlMAGHRIB 40000,00 40000,00

*-BARIdAlMAGHRIB 111744,00 111744,00

*-BARIdAlMAGHRIB 34063,20 34063,20

*-MInIStRedetRAnSPORt 100000,00 100000,00

*-AnAM - 400000,00

*-BAnQuePOPulAIRe - 200000,00

*-FOndAtIOnBAnQuePOPulAIRe 150000,00 150000,00

*-POSteMAROc 35158,00 35158,00

*-MAROctelecOM 195000,00 195000,00

*-AdMInIStRAtIOndedOuAneS - 29046,00

cOMMItMentSGIVen 17573418,93 17203359,23

*-cFAOtecHnOlOGIeScAMeROn 2423239,70 2423239,70

*-cFAOtecHnOlOGIeScAMeROn 969295,88 969295,88

*-ASSOcIAtedBuSIneSSMAcHIneS(ABM) 2558476,05 2558476,05

cOMMItMentSReceIVed 5951011,62 5951011,62

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tothecompany’sshareholdersHightechPaymentSystems(HPS)24,RuelaFontaine,Racinecasablanca

ladiesandGentlemen,

Statutory Auditors’ General Report for the period ended 31 december 2008

InaccordancewiththetermsofourappointmentbyyourAnnualGeneralMeeting,wehaveauditedtheattachedfinancialstatementsofHIGHtecHPAyMentSySteMS(HPS) forthefinancialyearended31december2008,comprisingthebalancesheet,incomestatement,managementaccountingstatement,cashflowstatementandadditionalinformationstatementrelatingtothesaidfinancialyear.thesefinancialstatementsshowshareholders’equityandequivalentofMAd135,227,495.29andnetincomeofMAd31,385,430.61.

Management’s Responsibility

Managementisresponsiblefordrawingupandpresentingthesefinancialstatementstogiveatrueandfairviewofthecompany’sfinancialpositioninaccordancewithgenerally-acceptedaccountingprinciplesandproceduresinMorocco.Itisalsoresponsiblefordesigning,implementingandmonitoringinternalcontrolproceduresrelatingtothedrawingupandpresentationofthefinancialstatementstoensurethattheyarefreefrommaterialmisstatementandfordeterminingaccountingestimatesthatarereasonableunderthecircumstances.

Auditor’s Responsibility

Ourdutyistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithprofessionalstandardsinMorocco.thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassurancethatthefinancialstatementsarefreeofmaterialmisstatement.

Anauditconsistsofexamining,onasamplebasis,evidencesupportingtheamountsandinformationcontainedinthefinancialstatements.theauditorisresponsibleforjudgingwhethertheaccountingproceduresadoptedareappropriateand for assessing the risk of anymaterialmisstatement in thefinancial statements.Whenassessing this risk, theauditortakesintoconsiderationtheinternalcontrolproceduresadoptedrelatingtothedrawingupandpresentationofthefinancialstatements.theaimisnottoexpressanopinionontheeffectivenessoftheinternalcontrolprocedures,rather,todecideonthemostappropriateauditprocedurestobeadoptedunderthecircumstances.

eRnSt&yOunGSARl37,BdAbdellatifBenkaddourcasablancaMaroc

A.SAAIdI&ASSOcIeS4,placeMaréchalcasablancaMaroc

STATUTORY AUDITORS’ REPORTS

Anauditalsoinvolvesassessingtheaccountingprinciplesused,anysignificantestimatesmadebytheManagementandthegeneralpresentationofthefinancialstatements.

Webelievethatourauditprovidesareasonablebasisforouropinion.

Opinion on the Financial Statements

thecompanyunderwenta tax inspection in2006relatingtocorporationtax,valueaddedtaxandpersonal incometax inrespectoffiscalyears2002-2004.thecompanycontestedthetaxinspectorate’sbasisforreassessment,whichresultedintheauthoritiesreclaimingaboutMAd12.5millioninunderpaidtax,anddecidedtoappealtothelocaltaxationcommission.Atthisstage,weareneitherabletodeterminethefinaloutcomeofthistaxinspectionnorquantifyitslikelyimpactonthefinancialstatementsfortheperiodended31december2008.

Subjecttoanypotentialimpactresultingfromthesituationdescribedabove,wecertifythatthefinancialstatementsreferredtointhefirstparagraphofthisreportgive,inallmaterialaspects,atrueandfairviewofthefinancialpositionofHIGHtecHPAyMentSySteMS (HPS)at31december2008aswellas theresultsof itsoperationsand itscashflows for thesamefinancialyear,inaccordancewithgenerallyacceptedaccountingprinciplesinMorocco.

Specific Verifications and Information

WehavealsoperformedspecificverificationsasrequiredbylawandwearesatisfiedthattheinformationprovidedintheBoardofdirectors’managementreporttoshareholdersisconsistentwiththebank’sfinancialstatements.

In accordancewithArticle 172 of law 17-95,we inform you that the bank acquired the entire capital ofHPSeurope forMAd3,413,658.60.

casablanca,27March2009

StatutoryAuditors

A.SAAIdI&ASSOcIeS

nawfalAMARAssocié

eRnSt&yOunG

BachirtAZIAssocié

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tothecompany’sshareholdersHIGHtecHPAyMentSySteMSS.A.«HPS»24,RuelaFontaine–Racinecasablanca

ladiesandGentlemen,

STATUTORY AUDITORS’ SPECIAL REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2008

Pursuanttotheprovisionsoflaw17-95,amendedandupdatedbylaw20-05,wedrawyourattentiontothefollowingagreementsprovidedforbythislawforwhichweseekyourapproval:

1. Agreements entered into during the period

Service provider agreement :

thispurposeof this agreementwithRcGtFinancement is to provideassistanceandadvice in thenorthAmericanmarket.Inthisregard,theamountinvoicedbyRcGtFinancementcorporatifIncandbookedbyHPSasexpensesin2008totalledMAd116,000excludingVAt.

2. Agreements entered into during previous periods and still in effect during the period

Management agreement :

thisagreementconcernsservicesprovidedtoHPSbyAccèscapitalAtlantiquerelatingtothecompany’sstrategicandfinancialmanagement.Inconsiderationfortheseservices,HPSpaysthecompanyamonthlyfeeofMAd8,000excludingVAt.

Inthisregard,thetotalexpensebookedbyHPSin2008wasMAd100,000excludingVAt.

casablanca,27March2009

StatutoryAuditors

eRnSt&yOunGSARl37,BdAbdellatifBenkaddourcasablancaMaroc

A.SAAIdI&ASSOcIeS4,placeMaréchalcasablancaMaroc

A.SAAIdI&ASSOcIeS

nawfalAMARAssocié

eRnSt&yOunG

BachirtAZIAssocié

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HPS’ offices

HPS Morocco

Casanearshore - Shore 1 - 1100 Bd Al Qods 20270 CasablancaMorocco

HPS Dubai

209/210 Building 12, 2nd Floor,P.O. Box 500308, Dubai Internet CityDubai, United Arab Emirates

HPS Europe

65-67 rue du Faubourg St Honoré - 3rd Floor75008 - ParisFrance