Iliad adds 146k subscribers in 1H09

PARIS — Over the 1st half-year 2009, Iliad Group (Paris: ILD) consolidated its position as the leading ADSL alternative operator, due to the dynamism of the Free brand and the integration of Alice. At 30 June 2009, Iliad’s ADSL had a total of 4,371,000 subscribers, compared with 3,134,000 at 30 June 2008.

• Over the 1st half-year 2009, Free confirmed its dynamic organic growth by recruiting 200,000 new subscribers (net of terminations), resulting in a market share of 24.8% of net adds. The Free subscriber base totalled 3,589,000 at 30 June 2009. Free’s customer acquisition cost is still the lowest of the market.
• Since the start of 2009, the Group has continued the rapid integration of Alice, by simplifying and repositioning its marketing offering, launching the new Alicebox and switching follow-up of Alice subscribers over to the Free IT system. The implementation of the first synergies came at the same time as the subscriber base suffered controlled decline. Alice thus had a subscriber base of 782,000 at 30 June 2009.

Iliad enhanced the attractiveness of its offering throughout the second quarter especially through:

• The launch of the largest African TV channel package in Europe (April 2009)
• The launch of a mediacenter service for the Freebox (May 2009)
• The launch of Free-Wifi (May 2009)

ADSL broadband subscribers:

          30 June 08  31 Dec. 08  30 June 09
          ----------  ----------  ----------
Total      3,134,000   4,225,000   4,371,000
- Free     3,134,000   3,389,000   3,589,000
- Alice            -     836,000     782,000

Detailed information of the half-year financial statements will be released at the presentation of half-year results on 27 August 2009.

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