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2006

16.01.2006, SAFRAN
Notice to Snecma shareholders

PRESS RELEASE

Paris, January 16, 2006 – Following Sagem’s public exchange offer for Snecma shares on March 17, 2005, then the merger of Snecma and Sagem that created SAFRAN on May 11, 2005, SAFRAN hereby provides notice that, since the listed company Snecma no longer exists, Snecma shareholders can exchange their shares for SAFRAN shares, at 13 Snecma shares for 15 SAFRAN shares, by contacting their banker.

As from February 16, 2006, Snecma shares will be definitively withdrawn from delisted securities trading.

In application of the provisions of article L 228-6 of the Code of Commerce, and articles 205-1 and 205-2 of the Decree of March 23, 1967 concerning commercial companies, the Executive Board of SAFRAN, meeting on May 25, 2005, decided to carry out, at the end of a period of two years as from the publication of this notice, the sale of SAFRAN shares – at a par value of €0.20, including dividend rights – which have not been claimed by eligible persons. Following this sale, the former Snecma shares will be cancelled, and their holders will only be entitled to a share in cash of the net income from the sale.

Therefore, Snecma shareholder who were unable or did not want to tender their Snecma shares to the public exchange offer are hereby informed of the following:

 until February 15, 2006, prior to the withdrawal of Snecma share from delisted securities trading, Snecma shareholders with a number of shares equal to or greater than 13 are invited to contact their banker to exercise their right to exchange Snecma shares for SAFRAN shares. Shareholders with less than 13 Snecma shares are invited to either purchase balance of shares needed to have 13 shares to exchange for 15 SAFRAN shares, or to sell their Snecma shares. SAFRAN hereby reminds shareholders that it will assume the cost of trading these fractional shares (Euronext notice No. 2005-2050, May 20, 2005).

 as from February 16, 2006, Snecma shareholders with 13 or more shares are invited to exercise their right to exchange Snecma shares for SAFRAN shares with their banker. Shareholders with fewer than 13 shares will be paid in cash, but for the payment they must wait for the sale of non-claimed SAFRAN shares at the end of the two-year period mentioned below.

 at the end of the period of 2 years as from the publication of this notice, SAFRAN shares not claimed for exchange will be sold as explained above. The net income from this sale will be at the disposal of eligible persons, for a period of ten years, on a frozen account at BNP Paribas Securities Services – GCT Service aux Emetteurs.

At the end of this 10-year period, the sums owed to eligible persons will be deposited with the Caisse des Dépôts et Consignation, and will remain there at their disposal for a period of 20 years, following which they will become the property of the State.

Shareholders contact: 33 1 41 33 33 33

PRESS RELEASE

01.03.2006, SAFRAN
SAFRAN Group reports growth in 2005 results

 Sales: 10,577 million euros, up 4.7 percent
 EBIT: 762 million euros, up 9 percent
 Net income, Group share: 501 million euros, up 23.1 percent

Paris, March 1, 2006

Sagem and Snecma merged on May 11, 2005 after the successful public share exchange/purchase offer of March 17, 2005. Snecma’s accounts were consolidated by Sagem on March 31, 2005. The reported consolidated financial statements for the year ended December 31, 2005 (1) therefore comprise 12 months of business of the former Sagem group and only nine months of business of the former Snecma group. Furthermore, in compliance with IFRS 3 rules concerning mergers, the assets and liabilities of Snecma were consolidated at their fair value.

To facilitate comparison of the 2004 and 2005 results, and to accurately reflect the Group’s financial performance, the audited pro-forma financial statements were prepared as if the Sagem/Snecma merger operation had been carried out on January 1, 2004.

Furthermore, the pro-forma financial statements have been adjusted to exclude the impact of IFRS 3, and enable monitoring of the Group’s financial performance.

Under these conditions, the adjusted pro-forma figures for 2005 are as follows:
 Sales: 10,577 million euros, a rise of 4.7 percent over 2004
 EBIT: 762 million euros, a rise of 9 percent
 Net income, Group share: 501 million euros, a rise of 23.1 percent.

Strong increase in orders

Orders rose sharply in 2005, totaling 12,600 million euros, an increase of 12 percent over 2004.

The Group booked orders for 1,640 CFM56 engines in 2005, an all-time record, along with 1,250 helicopter engines and a large number of systems and equipment (wheels and brakes selected for 295 aircraft, cockpit wiring and inertial navigation system for the A400M).

Growth in sales

SAFRAN posted sales of 10,577 million euros in 2005, an increase of 4.7 percent over 2004. With a constant exchange rate, this increase would have been 6.2 percent.

The Aerospace Propulsion branch posted sales of 4,493 million euros, an increase of 4.1 percent. With a constant dollar, the increase would have been 6.5 percent. This branch accounted for 43 percent of the Group’s consolidated sales.

The Aircraft Equipment branch posted sales of 2,510 million euros in 2005, an increase of 13.1 percent over 2004. With a constant dollar, this increase would have been 15.2 percent. This branch accounted for 24 percent of the Group’s consolidated sales.

The Defense Security branch posted sales of 1,232 million euros, an increase of 6.3 percent, and accounted for 11 percent of the Group’s consolidated sales.

The Communications branch posted sales of 2,342 million euros, a decrease of 2.6 percent over 2004, and accounted for 22 percent of the Group’s consolidated sales.

Increase in EBIT

Adjusted pro-forma EBIT (earnings before interest and taxes) for 2005 stood at 762 million euros, an increase of 9 percent over the 2004 figure of 699 million euros.

The overall improvement in productivity and growth in volumes, especially for spare parts, more than offset difficulties experienced by the communications business.

Operating income for the Communications branch stood at break-even. The Group’s other branches showed marked growth.

The Group’s operating margin was 7.2 percent, compared with 6.9 percent in 2004.

Increase in net income

The adjusted pro-forma net income, Group share, was 501 million euros in 2005, a 23.1 percent increase over 2004 net income of 407 million euros.

General savings plan

The general savings plan, with a target of 700 million euros by 2008 (including synergies), is proceeding on schedule.

Dividend

As proposed by the Executive Board, the Supervisory Board will submit to the Annual General Meeting of Shareholders on May 18, 2006 a proposed dividend of 0.36 euro per share, an increase of 63.6 percent over the previous year’s dividend. Once approved, the dividend will be paid on May 22, 2006.

Financial position

SAFRAN considerably reduced its net debt, from 1,123 million euros at June 30, 2005 to 473 million euros at December 31, 2005. Shareholders’ equity was 4,736 million euros at the same date.

Outlook for 2006

The Group expects to grow its aviation business in terms of production, as well as spare parts and services. The actions undertaken to restore the performance of the Communications branch should achieve results.

Under these circumstances, sales should continue to increase in 2006.

EBIT is also expected to rise.

Given the projections of stable financial results and tax expenses in line with 2005 figures, the SAFRAN Group expects net income to increase again in 2006.

Key figures (adjusted pro-forma)

Millions of euros	2004	2005	Change (%)
Orders	11,300	12,600	+12%
Sales  Aerospace Propulsion  Aircraft Equipment  Defense Security  Communications	10,098 4,315 2,219 1,159 2,405	10,577 4,493 2,510 1,232 2,342	+4.7% 4.1% 13.1% 6.3% -2.6%
EBIT  As % of sales	699 6.9%	762 7.2%	+9 %
Net income – Group share	407	501	+23.1%
Net financial position	(*) 339	(473)
Net profit per share (euros)	0.99	1.22	+23.1%
Dividend (euros)	0.22	0.36	+63.6%

(*) Before 1,250 million euros allocated to the purchase of Snecma shares for the merger operation.

(1) Reported sales were 8,692 million euros, with a reported EBIT and a reported net income, Group share under IFRS 3 at -308 million euros and -248 million euros, respectively.

PRESS RELEASE

12.04.2006, SAFRAN
SAFRAN reports consolidated first quarter sales [adjusted pro-forma results (1)]

Paris, April 12, 2006

The SAFRAN Group reported adjusted pro-forma first quarter sales of 2,707 million euros, an increase of 13.7% over the first quarter in 2005, which was relatively weak, however. At constant size and exchange rates, the increase would have been 13.8%.

(Millions of euros)	March 31, 2005	March 31, 2006	Change (%)
Aerospace Propulsion	1,011	1,185	17.2%
Aircraft Equipment	556	648	16.5%
Defense Security	263	345	31.2%
Communications	551	529	-4.0%
Consolidated sales	2,381	2,707	13.7%

Aerospace Propulsion

The growth in sales is due to higher sales of original equipment engines for commercial aircraft and helicopters, and the high level of spare parts sales. Both military and space sales decreased in comparison to the first quarter of 2005.

Aircraft Equipment

The growth in sales reflects the higher delivery rates for most programs.

Defense Security

The sales growth includes the consolidation of ORGA in the branch, as from January 1, 2006. At constant size and exchange rates, the increase would have been 18.6%.

Communications

This branch’s sales no longer consolidate the cables business, which was divested in December 2005. At constant size and exchange rates, sales by the Communications branch would have increased 4%, reflecting two contrasting factors: strong increase in sales volumes in most sectors, and sustained downward pressure on prices.

(1) Sales are shown as if Sagem and Snecma had merged on January 1, 2005.

***

About SAFRAN SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 58,000 employees in over 30 countries, and annual revenues exceeding 10 billion euros. SAFRAN comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets.

PRESS RELEASE

11.07.2006, SAFRAN
SAFRAN reports consolidated sales for six months ended June 30

Paris, July 11, 2006

SAFRAN has reported consolidated pro-forma adjusted sales for the first six months of 2006 of 5,476 million euros, a 10.8% increase over the year-earlier period.

At constant exchange rates and size, the increase was 12.5%.

(millions of euros) (1)	June 30, 2005	June 30, 2006	Change (%)
Aerospace Propulsion	2,070	2,403	+ 16.1%
Aircraft Equipment	1,187	1,301	+ 9.6%
Defense Security	575	695	+ 20.9%
Communications	1,111	1,077	- 3.1%
Consolidated sales	4,943	5,476	+ 10.8%

(1) Sales are shown as if Snecma and Sagem had merged on January 1, 2005.

Aerospace propulsion

The growth in sales continued for both commercial aircraft engines and helicopter engines. As of June 30, 2006, more than 1,250 CFM56 engines had been ordered. Sales of spare parts and services were at a sustained high level, especially in the helicopter market. Military business was stable, while space engine business experienced a slowdown due to the decrease in billing of development contracts.

Aircraft Equipment

The Aircraft Equipment branch’s sales no longer includes the actuator business, which was sold during the first half of the year. At constant size, the increase in sales would have been 10.6%. The branch’s growth reflected an increase in volumes delivered across most programs.

Defense Security

The branch’s sales growth reflects the consolidation of the company ORGA. Excluding this company, the branch’s sales would have shown 9% growth. The navigation and aircraft systems business continued to grow at a sustained pace. The Security division’s traditional operations also maintained a strong growth rate, offsetting a disappointing six-month period for ORGA.

Communications

The branch’s sales no longer include the cables and local communities businesses, sold in 2005. At constant size and exchange rates, sales would have grown by 7.3%. This growth is the result of sustained volume increase for most products, along with continued strong pressure on prices.

Outlook for 2006

• Defense Security: the branch’s sales growth reflects customer recognition of product quality and performance. However, intermittent problems on certain defense contracts, and the acquisition of ORGA, will lead to heavier expenses in 2006, with an impact on the branch’s operating income.
• Communications: continued heavy competitive pressure, and the decision to shut down two heavy loss-making businesses (televisions and volume printed circuits), mean that this branch will not reach break-even in 2006.
• The Aerospace Propulsion and Aircraft Equipment branches will maintain their volumes and profitability at very satisfactory levels, in line with forecasts.

Given the preceding factors, SAFRAN’s consolidated operating margin for 2006 should show a slight decrease.

***

SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 58,000 employees in over 30 countries, and annual revenues exceeding 10 billion euros. SAFRAN comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets.

PRESS RELEASE

12.09.2006, SAFRAN
SAFRAN announces first-half results

Paris, September 12, 2006

• Sustained orders
• Sales growth
• Decrease in operating income

Millions of euros	H1 2005	H1 2006	Change
Sales * Operating income * as % of sales Net income – Group share *	4,943 353 7.1% 209	5,476 231 4.2% 133	+ 10.8% -34.6%   -36.4%
Net profit per share (euros) Net debt	0.51 1,123	0.32 656

Sustained orders

Orders booked by SAFRAN for the first six months of 2006 were similar to the year-earlier period, which had already set an all-time record. At June 30, 2006, orders had been booked for 1,270 CFM56 engines, along with more than 650 helicopter engines and a large number of aircraft systems. In the security market, orders were booked for more than 260,000 electronic payment terminals. Furthermore, the contract was announced for the second tranche of the Félin system (modular infantry combat suite).

Sales growth

SAFRAN posted adjusted pro forma sales of 5,476 million euros in the first six months of 2006, a 10.8% increase over the year-earlier period. At constant size and exchange rates, this increase would have been 12.5%. Sales by business branch are as follows:

Millions of euros	H1 2005	H1 2006	Change
Aerospace Propulsion	2,070	2,403	+ 16.1%
Aircraft Equipment	1,187	1,301	+ 9.6%
Defense Security	575	695	+ 20.9%
Communications	1,111	1,077	- 3.1%
Consolidated sales *	4,943	5,476	+ 10.8 %

Sales logged by the Aerospace Propulsion branch grew 16.1%, reflecting the growth in sales of commercial aircraft engines and helicopter engines. Sales of spare parts and services were sustained, and military business was stable.

The growth in sales of Aircraft Equipment (9.6%) reflects the increase in deliveries on most aircraft programs covered by this branch.

The strong growth in sales by the Defense Security branch (20.9%) was partly due to the consolidation of the company Orga. Excluding this company, growth would have been 9%.

The sales total for the Communications branch no longer includes the cable and local community networks businesses, divested in 2005. At constant size and exchange rates, growth would have been 7.3%.

Decrease in operating income

Adjusted pro forma operating income for the first half of 2006 stood at 231 million euros, compared with 353 million euros in the first half of 2005, a decline of 35%.

The following table compares operating income by branch for the two periods:

Millions of euros*	H1 2005	H1 2006
Aerospace Propulsion as % of sales	195 9.4%	227 9.4 %
Aircraft Equipment as % of sales	113 9.5%	117 9.0 %
Defense Security as % of sales	40 7.0%	(44) - 6.3 %
Communications as % of sales	(11) - 1.0 %	(67) - 6.2 %

The Aerospace Propulsion and Aircraft Equipment branches maintained their profitability, despite a dollar hedging rate which was less favorable than in 2005.

The strong drop in earnings by the Defense Security branch was primarily due to two factors: one-time charges on certain defense contracts, and the need to take provisions for the cost of restructuring Sagem Orga’s business operations.

The Communications branch continued to experience strong competitive pressure, especially in the mobile phone business, leading to a decrease in the average sale price for its products. Two heavy loss-making businesses, volume production televisions and printed circuits, were shut down at the end of the period.

Net income down

SAFRAN posted net income for the six-month period ended June 30 of 133 million euros, a decrease in line with the drop in operating income.

Financial position

Net debt stood at 656 million euros, representing a significant decrease over the year-earlier period. However, this figure is slightly higher than the net debt at December 31, 2005 (473 million euros), due to working capital requirements to support a ramp-up in production in virtually all areas.

Outlook for 2006

The Group’s consolidated sales should increase by more than 7% in 2006.

Despite the positive outlook for the aerospace business, the operating margin for the year will be impacted by one-time charges for the Defense Security branch, which should return to a healthier financial situation in the second half of the year, and the difficulties of the Communications branch. The Group therefore expects an operating margin equal to 5.5% to 6% of sales for 2006.

* Adjusted pro forma data. To make the data for the two periods comparable and reflect the Group’s financial performance, the audited pro forma statements were drawn up as if the merger took place on January 1, 2004. Furthermore, these statements were adjusted to exclude the impact of IFRS3.

***

SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 60,000 employees in over 30 countries, and annual revenues exceeding 10 billion euros. SAFRAN comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets.

PRESS RELEASE

10.10.2006, SAFRAN
SAFRAN Reports consolidated sales at September 30, 2006

Paris, October 10, 2006

The SAFRAN Group reported consolidated, adjusted pro forma (1) sales for the nine months ended September 30, 2006 of 8,074 million euros, an increase of 8% over the same period in 2005. At constant size and exchange rates, the increase would have been 10.4%.

Millions of euros	Sept.30, 2005	Sept.30, 2006	Change (%)
Aerospace Propulsion	3,162	3,602	+13,9%
Aircraft Equipment	1,818	1,912	+5,2%
Defense Security	845	1,001	+18,5%
Communications	1,648	1,559	-5,4%
Consolidated sales	7,473	8,074	+ 8%

Aerospace Propulsion The Aerospace Propulsion branch’s business remained buoyant, with strong growth in deliveries of both commercial aircraft engines and helicopter engines. At September 30, 2006, orders for the CFM56 had already set a new record of 1,772, exceeding the previous record of 1,640 engine orders recorded in 2005. Sales of spares parts and services continued at a sustained level. The military and space sectors saw a slowdown in development activities for engines powering the M51 missile and the Ariane 5 ECA launcher.

Aircraft Equipment Sales by the Aircraft Equipment branch, which no longer includes the actuator business, would have increased 7.1% at constant size and exchange rates. However, the growth rate nonetheless decreased because deliveries of nacelles already produced will only be booked when the A380 is certified.

Defense Security At constant size, prior to consolidation of Orga, sales by the Defense Security branch would have increased 5.6%. The Navigation and Aircraft Systems business maintained a good growth rate. Excluding the smart card business, subject to strong pressure on prices, the security business would have posted growth of 16%.

Communications At constant size and exchange rates, the Communication branch would have posted a 5.1% increase in sales. The rise in mobile phone volumes could not offset strong pressure on prices. Sales by the broadband business rose 19%, primarily due to growth in sales of set-top boxes and residential terminals.

(1) Sales are shown as if Sagem and Snecma had merged on January 1, 2004.

****

SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 60,000 employees in over 30 countries, and annual revenues exceeding 10 billion euros. SAFRAN comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets.

PRESS RELEASE

30.11.2006, SAFRAN
SAFRAN Investor Day

Paris, November 30, 2006

Today in Paris, the SAFRAN Group is organizing an “Investor Day” for financial analysts and investors. The chief executive officer, the executive vice presidents of the branches, the executive vice president, strategy and development, and the executive vice president, economic and financial affairs, will review developments in their respective areas.

These presentations can also be consulted on the SAFRAN corporate website, starting today: finance/Analysts & Investors.

***

About SAFRAN
SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 60,500 employees in over 30 countries, and annual revenues exceeding 10 billion euros. The SAFRAN group comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets.

PRESS RELEASE

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