France Telecom 2006 preliminary unaudited annual results

2006 revenues of 51.7 billion euros, an increase of +7.5% on an historical basis and 1.2% on a comparable basis

5.2% increase in mobile service revenues (on a comparable basis) driven by very strong growth in the number of customers

• 15% increase in the mobile customer base on a comparable basis with 97.6 million customers at December 31, 2006, and a sharp acceleration in the number of mobile broadband users, with 5.8 million customers at December 31, 2006, compared with 1.6 million a year earlier

Rapid development of ADSL broadband and associated Multi-service offers limiting the decrease in revenues from home services to 1.9% (on a comparable basis)

• 30% increase in ADSL Broadband accesses over the year with 9.7 million customers in Europe at December 31, 2006
• Rapid development of ADSL Multi-service offers with 4.1 million Liveboxes deployed in Europe at the end of 2006, 2.5 million Voice over IP customers, and 590,000 ADSL digital TV customers

Gross Operating Margin Rate of 35.9% for 2006, in line with the objective announced