2008 annual results good operational performance and organic cash flow of €8 billion, the Group achieved all its 2008 objectives

Paris

* 2.9% increase in consolidated revenues on a comparable basis to €53.5 billion. With an increase of 1.7% on a comparable basis, the 4th quarter confirms the resilience of the Group to the deterioration of the economic climate
* 7% increase year on year in the total number of customers with 182.3 million customers at 31 December 2008, including 121.8 million mobile customers, up 11%, and 12.7 million ADSL broadband customers, up 9%
* 2.8% increase in gross operating margin (GOM) on a comparable basis to €19.4 billion; stabilization of the GOM rate (GOM to revenues) at 36.3% on a comparable basis
* capital expenditure rate (CAPEX to revenues) of 12.8%, in line with the objective of approximately 13% of revenues
* growth in organic cash flow to €8.0 billion, up from €7.8 billion in 2007 and in line with the stated objective
* decrease in the net debt/GOM ratio to 1.85, with a net debt of €35.9 billion as of 31 December 2008, a reduction of €2.1 billion year on year
* net income Group share rose 13.6% on a comparable basis (1) to €5.2 billion, compared with €4.6 billion in 2007. On an actual basis, it was €4.1 billion in 2008 compared with €6.3 billion in 2007
* the NExT plan objectives having been reached, employees, in addition to existing remuneration schemes tied to the results, will benefit from:
o the free share distribution program, approved by the Board in April 2007 and which will be implemented on 25 April
o exceptional employee profit sharing for 2008, proposed by the Board and which will be the subject of negotiations with employee representatives
* a proposed dividend of €1.40 per share for 2008. Taking into account the interim dividend payment of €0.60 per share on 11 September 2008, the balance of €0.80 will be paid on 30 June 2009 of which shareholders can choose to receive €0.40 in new shares

(1) The principal non-recurring items taken into account to establish the net income Group share on a comparable basis are indicated on page 7 under “net income”

outlook for 2009

The Group has based its 2009 objectives on the economic outlook as of the end of February:

* stable organic cash flow at 2008 level of €8 billion (before the possible acquisition of new frequencies for mobile services)
* maintaining CAPEX rate of between 12% and 13%. If the deterioration in the economic environment intensifies, investments could be reduced
* the Group is strongly positioned to maintain or increase its market share in the countries where it is present
o growth in Group revenues should, as in 2008, be greater than the average GDP (gross domestic product) trend within the Group’s footprint
o the Group will reinforce ongoing transformation programs in order to contain the decline in the GOM rate
* a reduction in debt will be pursued with a net debt/EBITDA (2) ratio of less than 2 in order to preserve the independence and flexibility of the Group
* maintaining an organic cash flow distribution rate greater than or equal to 45% while maintaining a good liquidity position
* the amount of the interim dividend shall be decided in accordance with the first-half results for 2009

(2) See glossary and paragraph “presentation of the business segments for 2009”