France Telecom acquires a majority stake in Neocles Corporate for 5.5 million euros

Paris, October 19, 2006 - France Telecom announces today that on October 18th, it signed an agreement with the majority shareholders of Neocles Corporate, an unlisted IT service company. By acquiring a 51% stake in Neocles Corporate, with an option to subsequently raise this to 100%, France Telecom is strengthening its position as the market leader for secure information system access solutions.

This acquisition is in line with France Telecom’s NExT strategy for the corporate sector, positioning Orange Business Services as a pivotal provider for the integration of information and communications technologies on the business market.

With this acquisition, Orange Business Services’ clients will be able to enjoy a complete range of services combining advice, integration and outsourced management, enabling them to optimize secure access to their information systems, using any means and from any location. In this way, businesses will be able to benefit from the expertise and know-how of Orange Business Services and Neocles, which dovetail effectively with one another on secure infrastructure access.

Operating in France, Neocles Corporate has from the outset specialized in the implementation of complete secure infrastructure solutions, notably on the thin client sector as well as the associated technologies, whether they are deployed at client sites or managed at Neocles Corporate. The company generated 12.3 million euros in sales in 2005, and 7.6 million euros (+25%) over the first half of 2006.


About France Telecom
France Telecom, one of the world’s leading telecommunications operators, serves 149 million customers on five continents (220 countries or territories) as of June 30, 2006 and had consolidated sales of 49 billion euros under IFRS in 2005 (25.9 billion euros over the first half of 2006). Launched in June 2005, the NExT program (New Experience in Telecommunications) will allow the Group to pursue its transformation as an integrated operator and make France Telecom the benchmark for new telecommunications services in Europe. In June 2006, Orange became the Group’s single brand for the Internet, television and mobile in France, the United Kingdom, the Netherlands and Spain, and Orange Business Services the brand for services offered to businesses worldwide. France Telecom is Europe’s number two mobile operator and Internet service provider and one of the world’s leading providers of telecommunication services for multinational companies. France Telecom (NYSE: FTE) is listed on the Euronext Paris Eurolist market and the New York Stock Exchange.

About Orange Business Services
Orange Business Services represents the business communications solutions and services provided by the France Telecom Group as of June 1st, 2006. They were previously sold under the France Telecom, Orange, Equant, Etrali, Almerys, EGT, Expertel Consulting, France Télécom Intelmatique, SETIB and Solicia brands.
The offers include converged voice, data and mobile services as well as IT expertise and managed services, all designed to transform business processes and improve productivity. Orange Business Services is present in 166 countries and territories and serves customers in 220.

About Neocles Corporate
Since 1998, Neocles Corporate has been the French market leader for the integration and outsourced management of secure and virtual access infrastructures based on Citrix, Microsoft and VMware solutions. It also uses the network and telecoms services offered by France Telecom/Orange, with which Neocles Corporate has been a Platinum Expert Partner since 2000. Thanks to the multi-field expertise of its 130 members of staff, Neocles Corporate is able to cover all the phases of infrastructure projects, from initial technical and economic studies through to on-site or outsourced production management, as well as integration and change management.
www.neocles.com

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Nilou du Castel

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