Iliad (Free) 1H 2008 Revenues

Strong Organic Growth
“¢ Consolidated Revenues of €692.2 million, Broadband Revenues up in excess of 22%
“¢ 93,000 new subscribers in Q2 2008, 25% market share
“¢ Improved unbundling rate at 83.4%

Iliad Group (Paris: ILD) subsidiary Free confirmed its dynamic organic growth in 1st half 2008 by recruiting 230,000 new ADSL subscribers (net of terminations). The ADSL subscriber base thus increased from 2,904,000 at 31 December 2007 to 3,134,000 at 30 June 2008.

With 93,000 new ADSL subscribers (net of terminations) and a 25%1 market share of net adds over 2nd quarter 2008, Free clearly asserted its positioning as the leading alternative fixed operator in terms of net recruitments.

During 2nd quarter 2008, the Group continued to innovate and enhance the attractiveness of its offering:

• Freebox HD featured the latest WiFi generation: 802.11n (April 2008)
• Pre-release of Canal+’s catch-up TV service on Freebox (May 2008)
• Free expanded its High Definition (HD) content offering with the launch of M6 HD and France 2 HD (June 2008)
• Free offered to new subscribers 1 year subscription to Canal+ Le Bouquet for € 1 extra (June 2008)

ADSL subscriber base:

                                  30 June 2007  31 Dec. 2007  30 June 2008
                                  ------------  ------------  ------------
ADSL subscribers                     2,626,000     2,904,000     3,134,000
Unbundled subscribers                2,060,000     2,366,000     2,614,000
  - as % of total                        78.4%         81.5%         83.4%
Residential ADSL market share            19.5%         19.7%         19.8%

Free continued its efforts to extend local loop unbundling. At 30 June 2008, 83.4% of its subscribers were unbundled (partly or fully) and 1,850 connection nodes were connected to the Free network.

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