You ask others to not spread wrong facts, so I guess you will accept that I correct some of those that you made.
The primary reason for Edge-it people to leave was not that they were not offered a contract to work again, but because most ( if not all ) didn't trusted the management anymore ( this and the fact that the company was closed of course ). Of the previous Edge-it people ( around 20 people IIRC, likely less ), only 1 person signed again to work to Mandriva.
And I will remind that Mandriva being under chapter 11 protection ( or rather french equivalent ), they couldn't hire anyone except for replacing people leaving. Edge-it contract was also more advantageous for the company ( less paid holidays ) than Mandriva one as it was negotiated, so basically almost all R&D people working in France on the community distribution were working for Edge-IT
The support was half edge-it, half Linbox, and the team for research was Mandriva ( european contracts as Mancoosi, EDOS projects, etc ).
I was at the party to celebrate the end of Edge-it, I had time to discuss a lot of this, and lack of trust in Mandriva management is even cited as one of the reason of creating Mageia ( http://www.mageia.org/en/#announce ).
Moreover, the fact that only some people have been offered a contract is likely a violation of the french laws, as companies are forced in case of economic bankruptcy to do their best to offer a contract, see L1233-4 of the "code du travail".
Even after that part of the story, there was several people leaving since the 6 previous months. The CFO of Mandriva ( Stanislas Bois ) left last month, as well as Vanessa Wall who left 10 days ago ( she was in charge of communication ).
Among others people that I personally knew that left the company is Cedric Delfosse, a old time Linbox employee ( who I worked with some years ago ), and Benjamin Jorand, sysadmin who left in november, letting for a few week no one in charge of svn server except a member of the community.
There was around 15/20 people in the french part of the company and so 4 people leaving in 6 months is a rather high turn-over rate ( around 40% per year at this rate ).
So if they are hiring in France, that's mainly because people are leaving now and leaved before ( fcrozat, pterjan, etc ).
Yet, the situation is not so bad as Mandriva 2011 is going to ship as a rc in a few days and final in a 1 month ( unless there is huge planning change, and such last minute modification without discussing with community would be yet another communication error, eroding the remaining trust ).
I would also agree with you and not call this exploitation ( after all, people are paid corresponding to the cost of life of the country in every part of the world and so that's not different from any others company ), but engineers in Brasil are cheaper than in Europa and do the same good job, so yes, it will be seen as unfair.
Mandriva as a company survived to this kind of crisis quite often ( and had to face it too often in the previous years ), yet I do not think that unwarranted optimism due to forgetting some important public facts is a good way to earn back the trust of community.
And that's only for the public facts, if you ask to your future french colleagues, they will explain that their situation today is a bit different than the one you describe.