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After starting their 2007 Peace Cup tournament with a 1-0 defeat to South American giants River Plate, the victory now sees The Royals third in Group B.
Lyon had decent possession but the French side really struggled to deal with Reading's direct play into the channels, with the Premier League side deserving their win after creating the better of the chances.
The first real chance of the match came after just four minutes, as a superb interchange which involved a slick back-heel, fell to Nadir Belhadj but the shot flashed wide of Graham Stack's left post.
Reading went straight on the attack and were awarded a penalty after Kevin Doyle was carelessly brought down by Anthony Reveillere. Doyle stepped up but his softly placed spot-kick was easily parried by Lyon goalkeeper Remy Vercoutre.
Despite a poor penalty Doyle might feel aggrieved after replays revealed that Vercoutre was a good two yards off his line when the ball was struck.
Steve Coppell's solitary summer signing Kalifa Cisse began to really impose himself on the match with some genuine glimpses of quality including a beautiful turn away from his man and a ball down the left channel with the outside of the boot.
The majority of Lyon's attacks came through the pacey Abdul Kader Keita. On the 14th minute Keita bent a wonderful cross into the box, Anthony Mounier arrived at the far post but Stack made himself big to save.
Two minutes later Graeme Murty dinked a ball over the top of the Lyon defence, yet bizarrely Vercoutre stayed on his line as Doyle closed in. The striker though dallied on the ball and Cris recovered to clear for a corner.
Despite several chances for both sides the teams somehow went in at half-time tied at nil-nil.
Reading began the second half with the same high tempo as Doyle's pulled cross landed to Shane Long whose shot flashed just wide of the far post. Ex-Aston Villa striker Milan Baros then fired a skidding shot from 20 yards but Stack saved well to his right.
Coppell's men finally broke the deadlock on the 63rd minute as Long hit the by-line and cut-back to Cox who buried coolly.
Reading began to sit deeper which gave Lyon more possession, however the French side failed to create many decent opportunities. A brilliant 30-yard hit from Belhadj almost levelled it but the shot was tipped over the bar by Stack.
In the 93rd minute Reading suffered a scare when Lyon found themselves clean through but Stack made a splendid double save to keep them in the tournament.
Sky Sports