Genesys Conferencing Reports Second Quarter Results for 2006

Genesys Conferencing (Euronext Eurolist: FR0004270270)
(NASDAQ: GNSY), a global multimedia conferencing service leader, today
reported financial results for the second quarter ended June 30, 2006.
All results are reported under International Financial Reporting
Standards (IFRS).

   Revenue and Margin

   In the second quarter of 2006, total volume increased to 569.5
million minutes compared to 510.5 million minutes in the second
quarter of 2005. On a sequential basis compared to the first quarter
of 2006, total volume increased by an additional 17.3 million minutes.
Genesys Meeting Center volume increased to 534.6 million minutes, of
which over 68.0% was generated under the Multimedia Minute program.
   In the second quarter of 2006, revenue(1) was EUR 35.9 million
compared to revenue of EUR 36.2 million in the second quarter of 2005.
In U.S. dollars, revenue was USD 45.1 million compared to USD 45.6
million in the second quarter of 2005. Strong revenue growth from new
and existing customers significantly offset the effect of the
previously announced loss of a major customer at the end of 2005.
   "Our strong volume growth continues to demonstrate the appeal of
our value proposition to large enterprises," said Francois Legros,
Chairman and CEO of Genesys Conferencing. "This quarter, volume based
on the Multimedia Minute reached over five million minutes daily,
reflecting new business wins as well as our ability to effectively
drive enterprise-wide adoption of our collaboration solutions by this
demanding market segment."
   Gross profit for the second quarter of 2006 was EUR 24.1 million,
resulting in a gross margin of 67.2%. Excluding a one-time federal
excise tax credit of approximately EUR 1.4 million, gross profit was
EUR 22.7 million compared to gross profit of EUR 23.8 million in the
second quarter of 2005. Gross margin, excluding the one-time credit,
was 63.1% in the second quarter of 2006, and, while down compared to a
gross margin of 65.5% in the second quarter of 2005, it remained
stable compared to the first quarter of 2006.

   Profitability

   Operating expenses in the second quarter of 2006 were EUR 18.9
million compared to EUR 19.7 million in the second quarter of 2005.
These costs were comprised of: research and development expenses of
EUR 1.1 million in the second quarter of 2006 compared to EUR 0.6
million in the second quarter of 2005; selling and marketing expenses
of EUR 10.4 million in both the second quarter of 2006 and 2005; and
general and administrative expenses of EUR 7.4 million in the second
quarter of 2006 compared to EUR 8.7 million in the second quarter of
2005. Excluding a EUR 0.6 million benefit recorded this period in
connection with a reevaluation of a balance sheet reserve, operating
expenses were EUR 19.5 million in the second quarter of 2006 compared
to EUR 19.7 million in the second quarter of 2005 and reflect the
company's efforts to stabilize total operating costs while
consistently reinvesting in growth initiatives.
   "Our investment in research and development reflects our
commitment to technological innovation, such as Voice over IP. Our
expanded R&D capability enables us to respond quickly to customer
requirements and to be well positioned to leverage the market's
growth," Legros said.
   Earnings before interest, taxes, depreciation and amortization
(EBITDA(2)) and before stock-based compensation expenses were EUR 7.5
million for the second quarter of 2006. EBITDA, excluding both credits
noted above, was EUR 5.4 million for the second quarter of 2006
compared to EUR 6.6 million in the second quarter of 2005 and compared
with EUR 4.8 million in the first quarter of 2006. Stock-based
compensation expense was EUR 63,000 and EUR 327,000 for the second
quarter of 2006 and 2005, respectively.
   Net income for the second quarter of 2006 was EUR 1.0 million, or
EUR 0.01 per diluted share, compared to net income of EUR 1.0 million,
or EUR 0.06 per diluted share, in the second quarter of 2005.

   Liquidity

   As of June 30, 2006, the company's net cash(3) was EUR 4.4 million
and its net debt was EUR 25.3 million compared to net debt of EUR 72.0
million as of December 31, 2005.

   Conference Call and Webcast

   Chairman and CEO Francois Legros and EVP/Chief Financial Officer
Michael E. Savage will host a conference call on Monday, August 14,
2006, at 5:30 p.m. Central European Time or 11:30 a.m. Eastern Time to
discuss second- quarter 2006 financial results.
   The conference may be accessed at:
http://events.webeventservices.com/genesys/2006/08/14/.
   A replay of the call will be available at http://www.genesys.com.
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(1) Please refer to the paragraph "Impact of Exchange Rates" below for
    information regarding the calculation of U.S. dollar amounts.

(2) See attached note to consolidated statements of operations for
    reconciliation of Operating Income and EBITDA. The company
    believes that EBITDA is a meaningful measure of performance,
    because it presents the company's results of operations without
    the non-cash impact of depreciation and amortization. EBITDA is
    reported excluding stock-based compensation expense.

(3) Net cash includes cash and cash equivalents less bank overdrafts.
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   Impact of Exchange Rates

   The company serves large enterprises on a worldwide basis. As a
result, the company has extensive international operations and, thus,
significant exposure to exchange rate fluctuations, in particular
those of the U.S. dollar. In 2003, the U.S. dollar declined
significantly compared to the euro, and its value further fluctuated
during 2004 and 2005. As a result, the comparability of the company's
revenues and results of operations expressed in euros was
significantly impacted.

   Forward-Looking Statements

   This release contains statements that constitute forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
statements other than historical information or statements of current
condition. These statements appear in a number of places in this
release and include statements concerning the parties' intent, belief
or current expectations regarding future events and trends affecting
the parties' financial condition or results of operations.
   Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and actual results
may differ materially from those in the forward-looking statements as
a result of various factors. Some of these factors are described in
the Form 20-F that was filed by Genesys with the Securities and
Exchange Commission on May 18, 2006.
   Although Genesys' management believe that their expectations
reflected in the forward-looking statements are reasonable based on
information currently available to them, they cannot assure you that
the expectations will prove to have been correct. Accordingly, you
should not place undue reliance on these forward-looking statements.
In any event, these statements speak only as of the date of this
release. Except to the extent required by law, the parties undertake
no obligation to revise or update any of them to reflect events or
circumstances after the date of this release, or to reflect new
information or the occurrence of unanticipated events.

   About Genesys Conferencing

   Genesys Conferencing is a leading provider of integrated Web,
audio and video conferencing services to thousands of organizations
worldwide, including more than 200 of the Fortune Global 500. The
company's services are designed to meet the full range of
communication needs within the large enterprise, from collaborative
team meetings to high-profile online events. The company's flagship
product, Genesys Meeting Center, provides a single-platform multimedia
conferencing solution that is easy to use and available on demand.
With offices in more than 20 countries across North America, Europe
and Asia Pacific, the company offers an unmatched global presence and
strong local support. Genesys Conferencing is publicly traded on
Euronext Eurolist in France (FR0004270270) and on the NASDAQ in the
U.S. (GNSY). Additional information is available at www.genesys.com.
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                         GENESYS CONFERENCING
                      Consolidated Balance Sheets
           (IFRS, in thousands of euros, except share data)

                                  December 31, 2005    June 30, 2006
                                  -----------------  -----------------
                                                         Unaudited
ASSETS
Non current assets
  Goodwill, customer lists and
   technology                           EUR 33,330         EUR 35,246
  Other intangible assets, net               5,663              6,490
  Tangible assets, net                      16,011             16,034
  Financial assets, net                      1,074              1,389
  Deferred tax assets                        2,488              1,668
  Investments in affiliated
   companies                                   278                  -
                                  -----------------  -----------------
Total non current assets                    58,844             60,827
Current assets
  Accounts receivable, less
   allowances (EUR   1,547 and
   EUR 1,087 at December 31, 2005
   and June 30, 2006,
   respectively)                            27,692             26,995
  Prepaid expenses and other
   current assets                            9,072             10,679
  Marketable securities                         45                 15
  Cash at bank                               5,870              6,847
                                  -----------------  -----------------
Total current assets                        42,679             44,536
                                  -----------------  -----------------
TOTAL ASSETS                           EUR 101,523        EUR 105,363
                                  =================  =================

LIABILITIES AND SHAREHOLDERS'
 EQUITY (DEFICIT)
Shareholders' equity (deficit)
   Ordinary shares, nominal value
    of EUR  1 per share
    18,307,756 shares issued and
    outstanding at December 31,
    2005 and 69,798,286 shares
    issued  and outstanding at
    June 30, 2006                       EUR 18,308         EUR 69,798
   Common shares to be issued                  139                136
   Additional paid-in capital              185,080            179,706
   Additional paid-in capital to
    be issued                                3,831              3,780
   Reserve for Stock-based
    compensation                             2,605              2,944
   Accumulated deficit                    (223,429)          (218,432)
   Net income (loss) for the
    period                                   4,544                306
   Currency translation
    adjustments                                668              2,917
                                  -----------------  -----------------
Total shareholders' equity
 (deficit)                                  (8,254)            41,155
Provisions for risks and charges               779                515
Long-term debt
  Long-term portion of long-term
   debt                                     62,474             28,528
  Long-term portion of
   capitalized lease obligations                39                277
                                  -----------------  -----------------
Total long-term debt and other
 liabilities                                63,292             29,320
Current liabilities
  Bank overdrafts                            1,851              2,462
  Accounts payable and accrued
   liabilities                              13,254             14,848
  Other taxes payable and
   deferred compensation                     9,493             10,276
  Income taxes payable                       3,148              1,952
  Current portion of provision
   for risks and charges                       907                709
  Current portion of long-term
   debt                                     13,483                765
  Current portion of capitalized
   lease obligations                             4                 88
  Other current liabilities                  4,345              3,788
                                  -----------------  -----------------
Total current liabilities                   46,485             34,888
                                  -----------------  -----------------
LIABILITIES AND SHAREHOLDERS'
 EQUITY                                EUR 101,523        EUR 105,363
                                  =================  =================



                         GENESYS CONFERENCING
                 Consolidated Statements of Operations
                               Unaudited
    (IFRS, in thousands of euros, except share and per share data)

                 Three months ended June 30, Six months ended June 30,
                 --------------------------- -------------------------
                     2005          2006          2005         2006
                 ------------- ------------- ------------- -----------
Revenue
 Services          EUR 36,246    EUR 35,902    EUR 70,368  EUR 72,280

Cost of Revenue
 Services              12,486        11,786        24,776      25,143
                 ------------- ------------- ------------- -----------
Gross Profit           23,760        24,116        45,592      47,137
Operating
 expenses
 Research and
  development             679         1,142         1,330       2,344
 Selling and
  marketing            10,356        10,394        19,656      21,887
 General and
  administrative        8,708         7,392        16,478      15,239
 Restructuring
  charge                  (88)            -           238           -
 Amortization of
  intangibles             683           626         1,382       1,374
                 ------------- ------------- ------------- -----------
                       20,338        19,554        39,084      40,844
                 ------------- ------------- ------------- -----------
Operating income        3,422         4,562         6,508       6,293
Interest income            22             7            42          58
Interest expense       (1,479)         (428)       (3,446)     (1,642)
Foreign exchange
 gain (loss)             (627)       (2,213)         (552)     (1,650)
Other income
 (expense)                (88)         (386)           19        (881)
Equity in income
 of affiliated
 companies                 32             -            37           -
Income tax
 credit
 (expense)               (261)         (505)         (243)     (1,872)
                 ------------- ------------- ------------- -----------
Net income          
 (loss)             EUR 1,021     EUR 1,037     EUR 2,365     EUR 306
                 ------------- ------------- ------------- -----------
Basic and            
 diluted net
 income (loss)
 per share           EUR 0.06      EUR 0.01      EUR 0.13    EUR 0.01
                 ============= ============= ============= ===========
Number of
 outstanding
 shares used in
 computing basic
 and diluted net
 income (loss)
 per share         18,372,841    69,936,981    18,372,841  55,144,122



                         GENESYS CONFERENCING
             Note to the Consolidated Financial Statements
                               Unaudited
                        (In thousands of euros)

                 Three months ended June 30, Six months ended June 30,
                 --------------------------- -------------------------
NOTE A- EBITDA
 calculation         2005          2006         2005         2006
                 ------------- ------------- ------------ ------------
 Operating
  income            EUR 3,422     EUR 4,562    EUR 6,508    EUR 6,293
 Amortization of
  identifiable
  intangible
  assets                  683           626        1,382        1,374
 Depreciation           2,203         2,263        4,378        4,311
                 ------------- ------------- ------------ ------------
 EBITDA             EUR 6,308     EUR 7,451   EUR 12,268   EUR 11,978
                 ------------- ------------- ------------ ------------
 Stock-based
  compensation            327            63          650          364
EBITDA before
 stock-based
 compensation       EUR 6,635     EUR 7,514   EUR 12,918   EUR 12,342
                 ============= ============= ============ ============
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