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14.02.2007, SAFRAN
SAFRAN reports 2006 results

PRESS RELEASE

Paris, February 14, 2007

The results reported below were approved by the SAFRAN Executive Board on February 13, 2007 and submitted to the Group’s Supervisory Board on February 14, 2007.

• Sales: 11,329 million euros, up 7.1%
• Operating income: 465 million euros, a decrease of 33.5%
• Net debt: 419 million euros, a reduction of 11.4%

All figures in this press release are expressed as adjusted pro-forma data, as if Sagem and Snecma had merged on January 1, 2004, and eliminating the main impact on results of the IFRS 3 standard concerning company mergers.

Millions of euros	2005 published	2005 adjusted*	2006	Change
Sales	10,577	10,576	11,329	7.1%
Operating income	762	699	465	- 33,5 %
As % of sales	7.2%	6.6%	4.1%
Net income – Group share	501	444	177	-60.1 %
Net income per share (in euros)	1.22	1.08	0.43
Net financial debt	473	473	419

* Corrections of errors in the 2005 financial statements for the Defense Security branch have an impact on the SAFRAN Group’s 2005 financial statements. These corrections are explained below in the paragraph on this branch. Furthermore, the research tax credit is now recorded under operating income, and figures for financial year 2005 were adjusted to take this into account.

Sustained orders

Orders booked in 2006 continued to grow, even compared to the record levels of 2005, especially in the aviation market.

As of December 31, 2006, Group companies had booked orders during the year for 2,121 CFM56 engines, 1,034 helicopter engines, a large number of components and subassemblies (wheels and brakes, wiring, etc.), Sperwer UAVs and associated maintenance equipment, and biometric systems and visas.

Sales on the rise

SAFRAN posted consolidated sales for 2006 of 11,329 million euros, 7.1% higher than in 2005. At constant size and exchange rates, the increase would have been 10.4%.

The breakdown of sales by business branch was as follows:

Millions of euros	2005 published	2005 adjusted	2006	Change
Aerospace Propulsion	4,493	4,493	5,073	12.9%
Aircraft Equipment	2,510	2,510	2,644	5.3%
Defense Security	1,232	1,231	1,445	17.4%
Communications	2,342	2,342	2,167	- 7.5%
Consolidated sales	10,577	10,576	11,329	7.1%

Sales by the Aerospace Propulsion branch rose 12.9%. At a constant dollar exchange rate, they would have increased 16.1%. Sales of original equipment posted strong growth, for both commercial aircraft engines and helicopter engines. The spare parts and services businesses continued to be buoyant, accounting for 43% of the total. Military business was stable.

Sales by the Aircraft Equipment branch grew 5.3%. At constant size and exchange rates, sales would have increased 9.1%. Delays in the A380 program had an impact of 114 million euros.

The Defense Security branch posted sales of 1,445 million euros, a rise of 17.4%. At constant exchange rates and size (mainly before consolidation of the Orga group), the increase would have been 5.4%.

Sales by the Communications branch decreased 7.5%. However, at constant size (i.e., including the divestment of the cables business at the end of 2005), the branch’s sales would have increased by 2.8%.

Downturn in operating income

SAFRAN posted consolidated operating income of 465 million euros in 2006, compared with 699 million euros in 2005, a decrease of 33.5%, largely due to non-recurring events.

These figures are broken down as follows:

Millions of euros	2005 published	2005 adjusted	2006
Aerospace Propulsion As % of sales	454 10.1%	456 10.1%	561 11.1%
Aircraft Equipment As % of sales	209 8.3%	212 8.4%	197 7.5%
Defense Security As % of sales	109 8.8%	35 2.8%	(101) -7%
Communications As % of sales	0	6 0.3%	(176) -8.1%

Aerospace Propulsion branch

The Aerospace Propulsion branch improved its profitability. Business was sustained at a high level, especially for aircraft engines, helicopter engines and associated services. Along with effective cost control, this largely offset the impact of a dollar hedging rate that was less favorable than in 2005.

Aircraft Equipment branch

The Aircraft Equipment branch posted operating income slightly lower than in 2005, primarily due to certain new programs entering the startup phase. However, income still amounted to 7.5% of sales, despite the negative impact of the dollar exchange rate.

Defense Security branch

a) Conclusions of the inquiry board

Auditors KPMG and Ernst & Young submitted their conclusions to the Group’s Audit Committee on the accounting impact of the unexplained entries that were covered in the press releases dated December 8 and 12, 2006. Based on their investigations, the adjustments amounted to 134.5 million euros, broken down as follows (in millions of euros):

• Impact on 2005 shareholders’ equity (before taxes): (106.6)*
• Impact on 2005 operating income: (25.8)
• Impact on 2006 operating income: (2.1)

These adjustments were fully integrated by the company, concerning the total amount as well as recording them in different financial years, in compliance with accounting standards as noted by the independent auditors.

In the next few days, the Audit Committee will launch a second inquiry phase designed to establish the actual circumstances behind these entries being recorded, and propose the appropriate corrective actions.

* At this point, the auditors have expressed their intention to issue a reservation concerning this impact which should be, according to them, only -16 million euros.

b) Results of the Defense Security branch

In addition to the sum of 25.8 million euros mentioned above, the operating income for 2005 was also adjusted in relation to the two following factors (in millions of euros):

• Accounting adjustments following additional due diligence, primarily concerning a long-term contract: (55.2)
• Impact of reclassifying the research tax credit: 7

As a result, operating income decreased from 109 million euros to 35 million euros.

The branch posted an operating loss for 2006 of 101 million euros, reflecting the consolidation of one-time charges on certain defense contracts, operating losses from certain businesses and the cost of restructuring Sagem Orga’s operations.

Communications branch

The Communications branch recorded a loss for the year of 176 million euros.

The mobile phone division continued to experience strong pressure on prices, leading to a decrease in the average sale price of its products. Because of these repeated difficulties, the division depreciated all intangible assets recorded in its financial statements, resulting in a total loss of 181 million euros.

The broadband division, after shutting down two loss-making businesses (televisions and mass produced printed circuit boards), and significantly reducing costs, posted a profit of 5 million euros for the year.

Sharp decrease in net income

SAFRAN posted consolidated net income for 2006 of 177 million euros. This figure declined more than operating income because of a higher tax charge resulting from the current tax audit.

Dividend

In response to a proposal by the Executive Board, the Supervisory Board will submit to the Annual General Meeting of Shareholders on May 25, 2007 a proposed dividend of 0.22 euro per share. Once approved, the dividend will be paid on May 28, 2007.

Financial position

At December 31, 2006 the Group’s net debt stood at 419 million euros, lower than the year-earlier figure of 473 million euros. This reflects the SAFRAN Group’s continued healthy financial position and sound balance sheet structure.

Objectives for 2007

The Group’s aerospace and defense businesses should continue to grow, and actions applied to the Communications branch should bear fruit. Under these conditions, the objectives for 2007 are as follows:

• Growth in sales of approximately 5%
• Operating margin exceeding 5% of sales

***

December 8, 2006 press release

December 12, 2006 press release

***

SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 61,400 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

11.04.2007, SAFRAN
SAFRAN reports Q1 2007 consolidated sales

Paris, April 11, 2007 - The SAFRAN Group reported consolidated sales for the first quarter of 2,796 million euros, an increase of 3.3% over the same period in 2006. At constant exchange rates, the increase would have been 8.3%.

Millions of euros	March 31, 2006	March 31, 2007	Change (%)
Aerospace Propulsion	1,185	1,319	+ 11,3 %

|Aircraft Equipment | 648 | 679 | + 4,8 % | | Defense Security |345| 360 | + 4,3 % | | Communications | 529 | 438 | - 17,2 % | | Consolidated sales | 2,707 | 2,796 | + 3,3 % |

Aerospace Propulsion
Sales were up 11.3%. At a constant dollar, sales would have increased 18.6%. This strong growth reflects buoyant business in all civil aviation propulsion markets: commercial aircraft engines, spare parts and helicopter engines.

Aircraft Equipment
Sales by the Aircraft Equipment branch increased 4.8% over the same period in 2006. At constant exchange rates the increase would have been 11%, reflecting the continued rise in production rates for most programs.

Defense Security
Sales rose 4.3% from the year-earlier period. The Security division posted good growth in business volumes, spanning both terminals and cards.

Communications
Sales by the Communications branch decreased 17.2% from the year-earlier period. The mobile phone business experienced a sharp drop in sales volumes mainly due to the revamped product policy, launched at the end of 2006. However, sales by the broadband business rose 5% over the first quarter of 2006, driven by a strong sales growth in certain sectors.

***

SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 61,400 employees in over 30 countries, and annual revenues exceeding 11 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

24.04.2007, SAFRAN
Conclusions of the audit of Sagem Défense Sécurité accounts

Paris, April 24, 2007

Following the discovery of unexplained accounting irregularities in the financial statements for Sagem Défense Sécurité for the periods ended December 31, 2005 and September 30, 2006, the SAFRAN Audit Committee asked two independent accounting firms to perform an audit in two successive phases, in December 2006 and January 2007.

The first phase was designed to determine the exact scope of the unexplained accounting irregularities and to analyze them. The conclusions of this first phase were reported to the market in the SAFRAN press release dated February 14, 2007 which also announced the financial results for 2006, including the necessary adjustments.

The second phase of the audit had two objectives: to determine any possible shortcomings in Sagem Défense Sécurité’s internal control procedures and recommend corrective measures; and to identify the specific facts behind the unexplained accounting irregularities. The two accounting firms submitted their conclusions in a report that was reviewed by the SAFRAN Supervisory Board on April 24. In general, they concluded that the main problems found at Sagem Défense Sécurité concerned the company’s insufficient control over financial reporting data and its analysis of the profitability of certain contracts. They also noted the company’s failure to comply with SAFRAN Group procedures concerning the economic and accounting tracking of these contracts.

The new Sagem Défense Sécurité management team is currently deploying the requisite corrective measures, along with the company’s new organizational structures, in order to tighten the company’s internal controls and ensure more efficient financial management.

Following in-depth investigations, the firm in charge of determining the facts behind the accounting irregularities concluded that these irregularities were due to calculation errors and an inaccurate assessment of the profitability of certain contracts, and of non-compliance, in some cases deliberate, with current accounting standards and rules.

None of the events under analysis are attributable to SAFRAN corporate management.

***

SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 61,400 employees in over 30 countries, and annual revenues exceeding 11 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

11.07.2007, SAFRAN
SAFRAN announces first-half 2007 consolidated sales

Paris, July 11, 2007

The SAFRAN Group posted consolidated sales for the six months ended June 30, 2007 of 5,733 million euros, an increase of 4.7% over the year-earlier period.

At constant size and exchange rates, the increase would have been 9.3%.

Millions of euros	June 30, 2006	June 30, 2007	Change %
Aerospace propulsion	2,403	2,775	+15,5%
Aircraft Equipment	1,301	1,373	+5,5%
Defense Security	695	747	+7,5%
Subtotal	4,399	4,895	+11,3%
Communications	1,077	838	- 22,2%
Consolidated sales	5,476	5,733	+4,7%

Excluding the Communications branch, the Group’s sales showed strong growth of 11.3%, or 17% at constant size and U.S. dollar exchange rate.

• Aerospace Propulsion

Sales by the Aerospace Propulsion branch increased 15.5%. With a constant dollar, sales would have grown 22.6%. This strong increase reflects sustained business in the civil aviation market, spanning both original equipment and services. At the same time, the branch continued strong order intake throughout the first six months of the year. For instance, at June 30, orders had been received for 1,439 CFM56 engines, compared to the year-earlier total of 1,270 for the first half of 2006, which was already a record year. The order volume for the first half of the year is already greater than largest number of deliveries ever recorded during a year.

• Aircraft Equipment

Sales by the Aircraft Equipment branch grew 5.5% over the first half of 2006. At constant exchange rates, growth would have been 11.3%.

Growth would have been comparable to that logged by the Aerospace Propulsion branch without the impact of delays in the A380 program. Major orders announced by both Airbus and Boeing, especially during the Paris Air Show, will result in corresponding orders for landing gear, wheels and brakes, nacelles, wiring and other products offered by the Aircraft Equipment branch, because of the SAFRAN Group’s strong positions in major commercial airplane programs.

• Defense Security

Sales by the Defense Security branch advanced 7.5%. At constant size (excluding the acquisition of EADS’ land and naval optronics business), the increase would have been 6.8%.

In the Avionics business, inertial navigation systems posted healthy growth. In the Optronics and Defense segment, the Felin integrated infantry soldier suite program continued to advance, with initial system deliveries for operational assessment.

The security sector recorded strong growth across the board, including payment terminals, governmental solutions and smartcards.

• Communications

The branch saw a 22% decline in sales over the year-earlier period.

Mobile phones recorded a drop of 47%, primarily due to a decrease in volumes, since the average price increased slightly.

Broadband business remained stable in general, with certain products recording healthy sales volumes.

****

About SAFRAN SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 61,400 employees in over 30 countries, and annual revenues exceeding 11 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

31.08.2007, SAFRAN
SAFRAN announces first-half 2007 results

Paris, August 31, 2007

The SAFRAN Group’s results were approved by the Management Board on August 27, 2007 and submitted to the Supervisory Board on August 30, 2007.

All data in this press release is expressed in adjusted figures. To reflect the Group’s real economic performance, SAFRAN establishes adjusted financial data along with the reported consolidated financial statements for the half-year reporting period. This is done for two reasons:

• to neutralize the impact of the revaluation of intangible assets that occurred because of the Sagem-Snecma merger, and the resulting amortization booked in the reported financial statements;
• to integrate in the operating results for the half-year period the outcomes of currency hedges for the period.

The table comparing reported financial statements to adjusted data for the period is shown in the appendix.

Key figures for the six-month period are as follows:

• Sales : €5,733 million, an increase of 4.7%
• Operating income: €311 million, an increase of 35%
• Net income – Group share: €215 million, an increase of 62%
• Net debt: €285 million, a decrease of €371 million.

Millions of euros	June 30, 2006	June 30, 2007	Change
Sales	5,476	5,733	+4,7 %
Operating income (as % of sales)	231 4,2%	311 5,4%	+35 %
Net income - Group share	133	215	+62 %
Net debt	656	285

Sustained orders
Order intake during the first half of 2007 continued to advance, following the records already set in 2006.

For example, a total of 1,439 CFM56 engines were ordered during the six months ended June 30, 2007, compared with the previous record of 1,270 engines ordered during the year-earlier period. This number of orders for this half-year period exceeds the previous record for annual deliveries.

A large number of orders were also recorded for helicopter engines (587 versus 514 in the first half of 2006), aircraft equipment (landing gear, wheels and brakes, wiring, etc.), defense (seekers and sights) and security (electronic payment terminals and cards).

Sales on the rise
At June 30, 2007, the Group posted adjusted sales of 5,733 million euros, an increase of 4.7% over the first half of 2006. At constant size and exchange rates, the increase would have been 9.3%.

Excluding the Communications branch, the Group posted a particularly strong increase in sales, up 11.3%, or 17% at constant size and U.S. dollar exchange rate.

Millions of euros	June 30, 2006	June 30, 2007	change
Aerospace Propulsion	2,403	2,775	+15,5 %
Aircraft Equipment	1,301	1,373	+5,5 %
Defense Security	695	747	+7,5 %
subtotal	4,399	4,895	+11,3 %
Communications	1,077	838	-22,2 %
Consolidated sales	5,476	5,733	+4,7 %

The Aerospace Propulsion branch posted a strong 15.5% rise in sales (+22.6 % at constant exchange rates), reflecting the sustained civil aviation business, encompassing both new engines and services.

The Aircraft Equipment branch posted a 5.5% increase in sales (11.3% at constant exchange rates). It would have recorded growth similar to that of the Aerospace Propulsion branch without the impact of delays in the A380 program.

Sales at the Defense Security branch grew 7.5%, as inertial navigation system business showed good growth during the period. The Security sector posted strong growth in all areas: payment terminals, governmental solutions and smart cards.

Sales at the Communications branch decreased 22% over the year-earlier period due to the mobile phone business, which experienced a drop in volumes of nearly 50%.

Operating income
The SAFRAN Group posted operating income for the first half of 2007 of €311 million, a 35% rise over the year-earlier figure of €231 million. It achieved this strong growth, despite the results of the Communications branch, due to good results in the Aerospace Propulsion branch and a return to profit by the Defense Security branch.

Millions of euros	June 30, 2006	June 30, 2007	Change
Aerospace Propulsion	227	297	+31 %
as % of sales	9,4%	10,7%
Aircraft Equipment	117	75	-36%
as % of sales	9,0%	5,5%
Defense Security	-44	25	+€69M
as % of sales	-6,3%	3,3%
Communications	-67	-73	-€6M
as % of sales	-6,2%	-8,7%

Aerospace Propulsion branch
The Aerospace Propulsion branch continues to improve its profitability. It took advantage of buoyant business in the airplane and helicopter engine and associated services markets. This sustained business, along with continued productivity improvements and keeping costs under control, more than offset the impact of a less favorable dollar hedging rate (which declined from $1.10/€1 to $1.20/€1). As a result, operating income increased by 31%.

Aircraft Equipment branch
The drop in operating income at the Aircraft Equipment branch is primarily due to the impact of production startup on new programs, mainly the A380.

Defense Security branch
The Defense Security branch has returned to profit, driven by the initial effects of measures implemented at the end of 2006.

In the security sector, the card business recovered, while the electronic money transfer business recorded an increase in earnings.

Communications branch
The Communications branch recorded a total loss of €73 million.

Mobile phones recorded a steep drop to a loss of €94 million, due to the sharp decrease in volumes during the first half of the year, with the positive impact of partnerships formed during this period yet to be felt.

On the contrary, the Broadband business confirmed the improvement in earnings already recorded at the end of 2006, following cost reduction measures and the termination of loss-making businesses.

Net income

SAFRAN recorded consolidated net income for the six months ended June 30, 2007 of €215 million, a strong increase of 62% over the year-earlier period.

Financial position

The Group’s net debt stood at €285 million, continuing the decrease already noted at year-end 2006 (€419 million). SAFRAN is therefore in a solid financial position.

Objectives for 2007

The Group’s aerospace, defense and security businesses will continue sustained growth. Therefore, at constant size, SAFRAN confirms its objectives for 2007:

• Sales growth: about 5%
• Operating margin: exceeding 5% of sales

On July 26, 2007, Ingenico and Sagem Sécurité started exclusive negotiations aimed at creating a world leader in electronic payment solutions by transferring SAFRAN’s assets in this area (Sagem Monetel) to Ingenico. If the operation under consideration is successfully completed, it could generate a substantial capital gain.

***

Appendix

Comparison of reported half-year financial statements and adjusted data for the period

(a)Revaluation of sales in currencies less purchases (by currency) at hedging rates, by restating changes in the value of hedged allotted to flows during the period.
(b)Changes in the value of hedges concerning flows in future periods (-€168 million, excluding taxes), deferred in adjusted shareholders’ equity, and cancellation of the recovery of the existing unrealized earnings at closure of hedging (+€58 million, excluding taxes), included in reported consolidated shareholders’ equity.
(c)Cancellation of amortization/depreciation of intangible assets related to the revaluation of aircraft programs resulting from the application of IFRS 3 at April 1, 2005.

The Group’s auditors conduct a limited examination of the reported consolidated financial statements at the end of the half-year period. Adjusted financial data is checked as part of the overall reading of information provided in the half-year business report.

***

About SAFRAN
SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 62,000 employees in over 30 countries, and annual revenues exceeding 11 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

10.10.2007, SAFRAN
SAFRAN reports consolidated sales for nine months ended September 30, 2007

Paris, October 10, 2007

The SAFRAN Group reported consolidated sales for the nine months ended September 30, 2007 of 8,592 million euros, an increase of 6.4% over the same period in 2006, or 12% for the aerospace and Defense Security branches. At constant size and exchange rates, the increase would have been 11%, and 17.7% for the aerospace and Defense Security branches.

Millions of euros	Sept. 30, 2006	Sept. 30, 2007	Change (%)
Aerospace Propulsion	3,602	4,225	+17.3%
Aircraft Equipment	1,912	2,002	+4.7%
Defense Security	1,001	1,071	+7.0%
Communication	1,559	1,294	-17.0%
Consolidated sales	8,074	8,592	+6.4%

Aerospace Propulsion

Branch sales rose 17.3%, and would have increased 24.4% with a constant dollar. In addition to the continued strong growth in deliveries, spanning both original equipment and spares, new all-time records were set for orders. As of September 30, orders had been recorded for 2,290 CFM56 engines and 800 helicopter turbines. The service business continued to grow and now generates 44.5% of sales.

Aircraft Equipment

Sales by the Aircraft Equipment branch rose 4.7%, and would have increased 10.3% at constant exchange rates. Growth was slower than the Aerospace Propulsion branch due to delays in the A380 program. As in the Aerospace Propulsion branch, the service business continued to advance, and now accounts for 26% of Aircraft Equipment sales.

Defense Security

Sales by the Defense Security branch increased 7.0%. The navigation segment (mainly inertial systems) and major defense programs maintained steady growth. The Security business also posted strong growth, in particular for payment terminals and cards.

Communications

Mobile phone sales decreased 39% over the year-earlier period due to a sharp drop in volumes, although the downturn slowed during the third quarter.

The broadband business remained steady, generally recording good sales volumes.

***

SAFRAN is an international high-technology group with four core businesses: Aerospace Propulsion, Aircraft Equipment, Defense Security, and Communications. It has 62,000 employees in over 30 countries, and annual revenues exceeding 11 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

16.01.2007, SAFRAN
SAFRAN consolidated sales for 2006 (provisional)

Paris, January 16, 2007

The SAFRAN Group posted provisional pro forma sales of 11,256 million euros for 2006, representing an increase of 6.4% over 2005. At constant exchange rates and size, the increase would have been 9.7%.

Millions of euros	December 31, 2005	December 31, 2006	Change %
Aerospace Propulsion	4,493	5,072	12.9%
Aircraft Equipment	2,510	2,617	4.3%
Defense Security	1,232	1,400	13.6%
Communications	2,342	2,167	- 7.5%
Consolidated sales	10,577	11,256	6.4 %

Aerospace Propulsion

Sales by this branch increased 12.9%. At a constant dollar exchange rate this rise would have been 16%. The branch continued to experience strong business levels, with a sharp increase in the volumes of engines delivered, encompassing both commercial aircraft engines (CFM56 engines recorded a 33% increase) and helicopter engines (with deliveries up 25%).

CFM56 orders represented 2,121 engines at December 31, 2006, exceeding the previous record of 1,640 engines set during 2005. Military and space business remained stable. The first firing of the M51 missile was a success and five Ariane 5 ECA launch vehicles were launched.

Aircraft Equipment

Sales by this branch advanced 4.3%. At a constant dollar exchange rate and size this rise would have been 8%. However, growth was slowed by the delay of 142 million euros in sales due to the A380 program. Quantities delivered continued to increase in most of this branch’s businesses.

Defense Security

The Defense Security branch has reported sales of 1,400 million euros, an increase of 13.6% over 2005. However, given accounting clarifications currently in progress, uncertainties remain for an amount that could potentially increase or decrease this figure by approximately 40 million euros.

Based on currently available information and at a constant dollar exchange rate and size (most of which before the integration of Orga), the increase in sales would have been 1.5%. Both “Navigation and aircraft systems”, as well as “Optronics and air-land systems” sustained good growth rates. The Security business, with the exception of the “cards” activity, which is exposed to significant price pressures, also posted growth.

Communications

Sales for the Communications branch declined 7.5%. However, at constant size—taking into account the sale of the cables activity in late 2005—sales for this branch would have advanced 2.8%. The mobile phones business continued to experience significant impact from the sharp drop in prices that characterizes this market and sales decreased 12%. However, broadband business enjoyed growth of 19% due to a sharp rise in volumes of broadband terminals, decoders and printing terminals.

Net debt

The Group’s net debt totaled 425 million euros at December 31, 2006, compared to 470 million euros at year-end 2005. This reflects the continued financial health and positive balance sheet structure of the SAFRAN Group.

***

SAFRAN is an international high-technology group with four core businesses: aerospace propulsion, aircraft equipment, defense security, communications. It has 61,400 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

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