France Telecom Group Preliminary first half 2005 results

Paris, July 28, 2005

Preliminary first half 2005 results:

 Faster growth rate in Q2 2005of 3.6%, up from 1.0% in Q1 2005 (pro forma figures)
 Major improvement of operating performance and profitability
 2005 objectives confirmed
 First tangible signs of implementation of the NExT program

First half 2005 Group revenues up 2.3% on a pro forma basis (4.5% on an actual basis) to EUR 23.7 billion

 Personal Communication Services: 
      8.6% revenue growth in the second quarter of 2005 on a pro forma basis (12.3% on an actual basis) 
      66.7 million mobile customers at June 30, 2005 (up 16.3% on a pro forma basis compared to June 30, 2004) 
      successful launch of mobile multimedia in Europe

 Home Communication Services: 
      clear upturn in revenues in the second quarter of 2005 (down 0.4% pro forma, up 0.7% in actual figures) 
      6.4 million broadband customers in Europe (including 3.7 million in France and 927,000 in Poland), an increase of 80% in one year

 Enterprise Communication Services: 
     364,000 Business Everywhere customers 
     13% increase in revenues from services

Major improvement of the Group's operating performance and profitability

 Gross operating margin of EUR 9.3 billion, up 5.1% on a pro forma basis (6.2% in actual figures)
 Gross operating margin ratio of 39.3%, compared with 38.6% for the first half of 2004 (on an actual basis)
 Operating income of EUR 6.5 billion, up from EUR 4.3 billion at June 30, 2004
 Group share of net income equal to EUR 3.4 billion at June 30, 2005, up from 1.0 billion at June 30, 2004
 CAPEX at EUR 2.7 billion, up 29.6% on a pro forma basis, with a CAPEX to revenues ratio of 11.5%
 Organic cash flow of EUR 2.9 billion at June 30, 2005, compared with EUR 3.3 billion at June 30, 2004
 Net financial debt of EUR 46.3 billion, with a ratio of net debt to gross operating margin of 2.50

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FOR MORE INFORMATION:
The slides of the presentation given during the release of the first half 2005 results are available on the France Telecom Group Web site

This press release refers to France Telecom Group's preliminary results in the first half of 2005, reviewed by the Board of Directors but still in the process of being reviewed by statutory auditors. The definitive accounts for the first half of 2005, which should be published on September 30, 2005, could be impacted if some significant events occur before this date.

This press release contains forward-looking statements, particularly related to France Telecom Group's outlook for 2005. Although France Telecom Group believes that its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties and there is no certainty that anticipated events will occur or that expected results will actually be achieved. Important factors that could cause anticipated results or performance to differ materially from those actually achieved include, among other things, the success of the France Telecom Group 2005 Ambition Plan, including the TOP and TOP Line programs, other strategic initiatives (based on the integrated operator model), as well as financial and operating initiatives, changes in the competitive environment and the telecom regulatory environment, and risks and uncertainties attendant upon exchange rate fluctuations, technological trends, business activity and international operations. All the forward-looking statements contained in this document speak only as of the date of this press release and France Telecom Group does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

All the statements referring to France Telecom Group's first half 2005 results, including historical information, are presented in accordance with International Financial Reporting Standards (IFRS) and are subject to specific additional risks and uncertainties relating to the possibility of changes in the IFRS standards prior to December 31, 2005. More detailed information on the potential risks that could affect France Telecom Group's financial results is found in the Document de Référence filed with the AMF and in the annual report filed on Form 20-F with the U.S. Securities and Exchange Commission.