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15.01.2008, SAFRAN
SAFRAN reports 2007 consolidated sales

PRESS RELEASE

Paris, January 15, 2008

SAFRAN, a leading international high-technology group specialized in aerospace propulsion, aircraft equipment, defense and security, and communications, has announced its consolidated sales for the year ended December 31, 2007.

Key Figures

• 2007 consolidated sales: 12 billion euros.
  - Up 5.9% over 2006
  - Up 7% to 10.8 billion euros, excluding the broadband business now in the process of being sold
  - Up 13.2% to 11.5 billion euros at constant size and exchange rates, excluding the broadband business now in the process of being sold
  - Exceeds group’s original target of 5% growth.
• At December 31, 2007, net debt stood at 160 million euros, a sharp reduction over the year-end 2006 figure of 419 million euros.
• Dollar exposure is now fully hedged for 2008.

Commenting on these results, Chief Executive Officer Jean-Paul Herteman said:
“SAFRAN recorded healthy consolidated sales for 2007 of 12 billion euros, representing growth of 5.9% compared with 2006. At constant size and exchange rates, our sales grew 13.2% (excluding the broadband communications business, currently being sold to the Gores Group). We posted strong growth in our aerospace businesses and set a new record for orders: 2,704 CFM56 engines, more than twice as many as we delivered during the year. All business lines in the Defense Security branch also posted growth, as we increased our share of these markets. Because of this excellent performance, we exceeded our sales targets. At the same time, SAFRAN pursued its strategic refocus to create added value, while also reducing our debt load.”

Sales (millions of euros, IFRS standards)

	Year ended Dec. 31, 2006	Year ended Dec. 31, 2007	Sales increase / decrease
Aerospace Propulsion	5,073	5,920	+ 16.7%
Aircraft Equipment	2,644	2,703	+ 2.2%
Defense Security	1,445	1,548	+ 7.1%
Communications (Mobiles)	958	656	- 31.5%
Subtotal – ongoing businesses	10,120	10,827	+ 7.0%
Broadband communications, now being divested	1,209	1,176	- 2.7%
Consolidated sales	11,329	12,003	+ 5.9%

Strong growth in the aviation market

The aviation market continued to generate record orders. In 2007, for instance, a total of 2,704 CFM56 engines were ordered, compared with 2,121 in 2006, bringing the order book to 5,636 CFM56 engines at December 31, 2007.

Orders for helicopter engines remained buoyant, at 1,065 for the year. Other aircraft equipment segments also posted strong order growth, including landing gear, wheels and brakes.

Aerospace Propulsion: dynamic growth for original equipment and spares

Sales by the Aerospace Propulsion branch grew 16.7% (or 25.2% at constant size and exchange rates), reflecting the continued favorable trends in this market. Deliveries of new engines for both commercial airplanes and for helicopters grew more than 20% compared with 2006. Sales of CFM56 spare parts recorded 36% growth for the year, as the most recent models begin to need maintenance. The service business, which generates 44% of branch sales, continued to develop. This clearly reflects both the excellent potential of our installed base of engines in service (now more than 17,600 CFM56 engines), and the growing maturity of this fleet, which generates strong spare parts sales.

Aircraft Equipment: a transitional year in the wake of the A380

Aircraft equipment sales grew by 2.2% in 2007 (9.5% at constant size and exchange rates). The service business posted strong growth of 18%, and now accounts for 26% of the branch’s sales. In terms of original equipment, the branch geared up for A380 deliveries in 2007, and production will ramp up considerably in 2008.

Defense Security: significant development in key positions

The Defense Security branch posted overall sales growth of 7.1% for 2007. Its leadership positions, particularly in inertial navigation systems, supported this business growth.

The Security sector recorded dynamic growth of 17%. All of our business sectors increased their market share against a general background of sustained growth: governmental solutions and biometrics, secure terminals and smart cards.

Communications: divestment and strategic refocus

Sales by the Broadband Communications business were largely stable from 2006 to 2007. The sale of this business to the investment fund the Gores Group will be finalized at the end of January 2008. As expected, second half sales by the mobile phone business exceeded first-half sales. However, for the full year 2007, sales decreased 31.5% compared with 2006. The business continues to streamline its range and shift its focus more to ODM (Original Design Manufacturing) services, as reflected in the agreement signed with Sony Ericsson.

Financial announcements

2007 annual results	Feb. 14, 2008
Q1 sales 2008	April 11, 2008
Annual General Meeting of Shareholders	May 28, 2008
Q2 sales 2008	July 10, 2008
H1 results 2008	July 31, 2008

***

SAFRAN is an international high-technology group with four core businesses: Aerospace Propulsion, Aircraft Equipment, Defense Security, and Communications. It has more than 63,000 employees in over 30 countries, and annual revenues of 12 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

14.02.2008, SAFRAN
SAFRAN announces 2007 results

Paris, February 14, 2008

SAFRAN, the international high-technology group with leadership positions in its core businesses of aerospace propulsion, aircraft equipment, defense & security and communications, today announced its results for the fiscal year ended December 31, 2007. The SAFRAN Group’s results were approved by the SAFRAN Executive Board on February 11, 2008, and submitted to the Supervisory Board on February 13, 2008.

The Group’s operating income jumped over 50% to €706 million, and net income more than doubled, despite an unfavorable U.S. dollar exchange rate.

2007 key figures

2007 sales €12,003 million:

• 5.9% increase over 2006
• 7% increase to €10.8 billion, excluding the broadband business

2007 operating income €706 million:

• 51.8% increase over 2006
• 5.9% operating margin, exceeding original forecasts

The Group share of net income is €406 million, versus €177 million in 2006:

• Net income for 2007 is more than twice that for 2006

At December 31, 2007, net debt stood at €169 million, versus €419 million a year earlier.

A dividend of 0.40 euro per share will be proposed at the Annual General Meeting of Shareholders.

Chief Executive Officer Jean-Paul Herteman said:
“I am delighted to announce that our Group surpassed its financial objectives for 2007. In addition to a 5.9% increase in sales, already announced, we have posted an operating margin of €706 million, equal to 5.9% of sales, outpacing our initial objective of 5%. This figure also represented an increase of nearly 52% over the previous year. The Group’s share of net income stood at €406 million. These results once again demonstrate SAFRAN’s ability to resist the impact of fluctuations in the U.S. dollar. We were able to offset this impact through a two-pronged approach, by improving our productivity and through a structural increase in the sale of spare parts, which generate high margins. This performance is also reflected in significant cash generation, resulting in free cash flow of €428 million for 2007. We will propose to the Annual General Meeting of Shareholders a dividend of 0.40 euro per share, in line with our results, our outlook and our policy of a 40% payout.”

SAFRAN consolidated results

All figures in this press release are expressed as adjusted data. To reflect the SAFRAN Group’s actual financial performance, SAFRAN draws up, alongside the reported consolidated financial accounts, adjusted financial data, for several reasons:

• To offset in the results the effects of the revaluation of intangible assets occurring due to the Sagem-Snecma merger, and their amortization booked under reported accounts.
• And to integrate in operating results the unwinding of hedges for the period.

Furthermore, in application of IFRS5, the Communications branch’s broadband business is classified under divested activities because of its sale planned for early 2008. To enable a comparison of the 2006 and 2007 fiscal years, a column for 2007 was created including Sagem’s broadband communications business.

An appendix includes a table comparing the reported accounts and the adjusted data.

Millions of euros	2006*	2007*	Change	2007**
Sales	11,329	12,003	+ 5.9%	10,830
Operating income % of sales	465 4.1%	706 5.9%	+ 51.8%	663 6.1%
Net income from divested operations				30
Net income – Group share	177	406	x 2.3	406
Net income per share (€)	0.43	0.99		0.99
Net financial debt	419	169

* includes Sagem communications broadband business
** without Sagem communications broadband business

A solid and geographically diversified backlog of orders

With 5,636 CFM56 engines and 1,944 helicopter engines on order and an increasing share of fleets fitted with SAFRAN landing gear, brakes and nacelles, the Group has consolidated its outlook for the coming years, and increased its share of aviation markets. In addition, the geographical diversity of the order book gives SAFRAN a very robust business foundation.

Operating income (EBIT)

SAFRAN posted operating income for 2007 of €706 million, compared with €465 million in 2006, an increase of 52%.

This jump in earnings is due to two main factors. First the profitability of our aviation businesses, where a continued improvement in productivity and sales of spare parts more than offset the impact of the weak U.S. dollar, and secondly the return to profit of our Defense Security business and a decrease in losses by our Communications business.

Deliveries of original equipment engines for commercial airplanes and helicopters increased by more than 20% over 2006.

Sales of spare parts posted record growth for the year. The service business now accounts for 44% of Aerospace Propulsion branch sales, and 26% of Aircraft Equipment branch sales.

The Defense Security branch logged dynamic growth in sales, spanning avionics, inertial navigation units, cards and payment terminals.

The communications branch, which experienced another drop in volumes, launched an initiative during the year to recenter its activities.

Earnings by branch

Millions of euros	2006	2007	Change
Aerospace Propulsion % of sales	561 11.1%	636 10.7%	+13%
Aircraft Equipment % of sales	197 7.5%	112 4.1%	-43%
Defense Security % of sales	(101) -7.0%	72 4.7%	ns
Communications
Mobile phones % of sales	(181) -18.9%	(121) -18.5%	+33%
Broadband % of sales	5 0.4%	43 3.7%	x 8

Aerospace Propulsion

For the Aerospace Propulsion branch, the year was characterized by two major factors: strong growth in sales of spare parts, which offer a high margin, and productivity and efficiency improvements at all branch companies that outpaced initial forecasts. Together, these two factors more than offset the impact of a dollar hedging rate that was less favorable (from a rate of €1 = $1.11 to $1.21). The branch’s operating income increased more than 13% (or over 60% with a constant dollar).

Aircraft Equipment

During 2007, the Aircraft Equipment branch prepared for the ramp-up of production for several major new aircraft, in particular the nacelles for the A380 super-jumbo jet. Investments in development and production engineering to support sustained production in the coming years weigh temporarily against the branch’s operating income.

Defense Security

The Defense Security branch has swung back to profit, of €72 million, after posting a loss of €101 million in 2006. This result is largely due to the deployment of effective initiatives to improve organization and profitability.

These actions had a positive impact on the avionics business in particular. In the security sector, the card business returned to break-even, and the electronic payment business showed strong growth in sales and financial indicators.

Communications branch

The mobile phone business posted a loss of €121 million in 2007 versus €181 million in 2006. Sales volumes dropped during the year, but 2007 also saw the first positive results of strategic recentering initiatives now under way.

The Broadband business recorded operating income for 2007 of €43 million. This business has been sold to an investment fund, The Gores Group, for €383 million.

Net income

SAFRAN posted consolidated net income of €406 million in 2007, compared with €177 million in 2006.

Financial position

Net debt at year-end stood at €169 million, marking a further decrease over net debt at the end of 2006 (€419 million). The Group confirmed its robust financial position.

Dividend

A dividend of 0.40 euro per share will be proposed to the Annual General Meeting of Shareholders. This represents a payout of 40%, a level that SAFRAN plans to maintain in the future.

Objectives for 2008

The Group’s aerospace, defense and security businesses will continue their growth. Actions to bolster efficiency and productivity will be continued and accelerated, in particular on the international stage. A solution will be provided for the mobile phone business, along the lines of the solution applied to the broadband business. Furthermore, the overall 2008 forecasts in dollars are hedged at a rate of €1 less than or equal to $1.46

Under these conditions, the objectives for 2008 are as follows:

• Sales of approximately 11 billion euros, representing growth of 10% at constant size and exchange rates.
• Operating income of approximately €700 million, based on continued improvements in productivity and increases in spare parts sales.

In general, SAFRAN plans to further develop the very strong synergies between its aerospace, defense and security businesses, and seize all growth opportunities in these sectors.

* Does not include the share of Ingénico earnings, which will be recorded via the equity method in 2008, but does include the estimated capital gain of €100 million from the transfer to Ingénico. Note that in 2007 the business transferred to Ingénico contributed €29 million in operating income.

***

Appendix

Comparison of reported consolidated accounts and adjusted data

(1) Revaluation of sales in currencies less purchases (by currency) at the hedged rate, by restatement of changes in the value of hedges allocated to flows during the period.

(2) Changes in the value of hedges concerning flows for future periods (€295 million excluding taxes), deferred in shareholders’ equity and canceling the recovery of unrealized gains at closure of hedging accounts (€117 million excluding taxes), included in consolidated shareholders’ equity.

(3) Cancellation of intangible assets amortization/depreciation due to the revaluation of aircraft programs based on the application of the standard IFRS 3 as of April 1, 2005.

Only the reported consolidated accounts are audited by the Group’s independent auditors, and the adjusted financial data is subject to checks during the reading of all information provided in the reference document for 2007.

PRESS RELEASE

18.02.2008, SAFRAN
Précisions sur les résultats consolidés 2007 du Groupe SAFRAN (French only)

Le Groupe SAFRAN a publié le 14 février 2008 ses résultats pour l’année 2007:

• un chiffre d’affaires de 12 003 millions d’euros en croissance de 5,9% par rapport à 2006,

• un résultat opérationnel de 706 millions d’euros en croissance de 51,8% par rapport à 2006,

• un résultat net de 406 millions d’euros représentant plus de deux fois celui de 2006.

Le Groupe SAFRAN précise que les perspectives indiquées pour l’année 2008 sont fondées sur les données ajustées. Le chiffre d’affaires affiché de 11 milliards d’euros, en données ajustées, prend en compte un impact du dollar de l’ordre de 900 millions d’euros. A dollar constant et à périmètre constant, hors activités communication haut débit cédées le 25 janvier 2008, la croissance ressort à 10 % par rapport à 2007.

L’objectif de résultat opérationnel est d’environ 700 millions d’euros dans les conditions mentionnées par le communiqué du 14 février 2008.

****

SAFRAN est un groupe international de haute technologie spécialisé dans quatre domaines d’activité : propulsion aéronautique et spatiale, équipements aéronautiques, défense sécurité, communications. Le Groupe emploie 57 000 personnes dans plus de 30 pays, pour un chiffre d’affaires de 12 milliards d’euros. Composé de nombreuses sociétés aux marques prestigieuses, le groupe SAFRAN occupe, seul ou en partenariat, des positions de premier plan mondial ou européen sur ses marchés.

PRESS RELEASE

11.04.2008, SAFRAN
SAFRAN reports 2008 first-quarter consolidated sales

Paris, April 11, 2008

11% organic growth at constant exchange rate Strong rise in commercial engine orders

Key figures

• Consolidated sales amounted to 2,514 million euros for the 2008 first quarter, up 11% at constant scope and exchange rates over the year-earlier period.
• Aerospace, defense and security businesses grew by 13.2% at constant scope and exchange rates.
• Orders for commercial aircraft engines continued to be buoyant, with 1,052 CFM56 engines ordered during the first quarter of 2008 (up 44% over the year-earlier period)

Commenting on these results, Chief Executive Officer Jean-Paul Herteman said:
“Safran’s sales for the 2008 first quarter of rose 11% at constant scope and exchange rates, in line with our objective of 10%. We continued to post strong growth in the aerospace sector, thanks to the expertise of our people and the Group’s strong competitive positions in its core businesses. In addition to this good performance, we are continuing to make the structural changes needed, in particular by developing our international operations, most notably in the USD zone and emerging countries. Furthermore, the SAFRAN Group has fully hedged its net dollar exposure for 2008, 2009 and 2010, and our action plan to resolve issues facing the mobile phone business is proceeding as planned.”

First quarter sales

millions of euros	2007	2008	Change	Organic growth*
Aerospace Propulsion	1,319	1,392	+5.5%	+18.6%
Aircraft Equipment	679	674	-0.8%	+13.1%
Defense Security**	379	352	-7.1%	-5.3%
Aerospace, Defense and Security subtotal	2,377	2,418	+1.7%	+13.2%
Communication	133	96	-27.8%	-29.1%
Group Total	2,510	2,514	+0.2%	+11.0%

* at constant scope and exchange rates
** including Monetel activities, transferred on March 15, 2008 to Ingenico (€32 million in 2007 and €42 million in 2008).

The 2008 first quarter saw continued buoyant orders in the civil aviation sector, especially for CFM56 engines: 1,052 orders were booked for this engine, up 44% versus the year-earlier period.

The four TP400 engines for A400M flight tests have been delivered. Airbus has chosen SAFRAN to provide the landing and braking systems on the A350. Two major defense programs, Félin (integrated equipment suite for infantry soldiers) and the AASM modular weapon system, have successfully passed major technical and contractual milestones.

SAFRAN is also continuing its expansion in the USD zone and emerging countries. Three new plants have been inaugurated in China, in the cities of Suzhou and Guiyang, and a new facility will be opened in Mexico in May. The SAFRAN Group is deploying a strategy to attenuate the impact of a weaker dollar, and has fully hedged its net dollar exposure for 2008, 2009 and 2010.

Aerospace Propulsion
Sales by the Aerospace Propulsion branch increased 5.5%. At constant scope and exchange rates, growth would have been 18.6%. The strong growth in commercial engine business (original equipment and services) is in line with the Group’s forecasts. The service business accounted for 45% of sales during the quarter, compared with 44% in 2007. Thus the Group has been able to offset the impact of the weakening U.S. dollar. There are now more than 18,000 CFM56 engines in service.

Aircraft Equipment
The Aircraft Equipment branch recorded 674 million euros in sales, up 13.1% at constant scope and exchange rates. Deliveries of nacelles for the Airbus A380 have accelerated (from 2 units in the first quarter of 2007, to 12 units in the first quarter 2008) and this trend will continue in the coming months. The newly announced delay in Boeing 787 deliveries will not have any additional significant impact on 2008. The service business continued to grow, especially for landing gear.

Defense Security
The Defense Security branch recorded sales of 352 million euros. Sales declined 5.3% at constant scope and exchange rates, due to technical and production delays in optronics and inertial equipment, but the branch should be able to catch up by the end of the year.

Communication
The decrease in sales by the Communication branch is due to the current refocus of this business and to a market slowdown, particularly in France. The Group’s actions to resolve issues regarding the mobile phone business are proceeding as planned, and a finalized solution is expected to be announced in mid-year.

Financial agenda
Annual General Meeting of Shareholders: May 28, 2008
Dividend payment: June 6, 2008
First-half results announcement: July 31, 2008

***

SAFRAN is an international high-technology group with four core businesses: Aerospace Propulsion, Aircraft Equipment, Defense Security, and Communications. It has more than 57,000 employees in over 30 countries, and annual revenues of 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.

The Safran share is continuously listed in the section “A” of the Eurolist market of Euronext Paris, and has been eligible for SRD since May 11th, 2005). The Safran share is part of SBF 120 and Euronext 100 indices.

PRESS RELEASE

28.05.2008, SAFRAN
Ordinary and extraordinary shareholders’ meeting: SAFRAN confirms its objectives for 2008 and announces a number of share-related transactions

Paris, May 28, 2008

Dividend payment of €0.40 per share

SAFRAN confirms its objectives for 2008 and announces a number of share-related transactions

SAFRAN’s Ordinary and Extraordinary Shareholders’ Meeting, chaired by Mr Francis Mer, took place today at Palais des Congrès de Paris in France.

All of the resolutions submitted to shareholders for approval at the meeting were adopted by a large majority.

A dividend of €0.40 per share will be paid on June 6, 2008 in respect of 2007.

In his presentation to the meeting Jean-Paul Herteman confirmed SAFRAN’s objectives for 2008, namely 10% organic revenue growth*, €700 million** in EBITA and a finalized solution for mobile phone business.

Confident in the Group’s outlook, the Chairman of the Executive Board announced the following share-related transactions:

• Payment in December 2008 of an interim dividend for the year
• Share buybacks for the purpose of acquisitions
• Share grants for employees with a view to strengthening employee share ownership.

In addition, a liquidity contract has been set up in order to limit share price volatility.

***

SAFRAN is an international high-technology group with four core businesses: Aerospace Propulsion, Aircraft Equipment, Defense Security, and Communications. It has more than 57,000 employees in over 30 countries, and annual revenues of 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.

The SAFRAN share is continuously listed in the section “A” of the Eurolist market of Euronext Paris, and has been eligible for SRD since May 11th, 2005. The SAFRAN share is part of SBF 120 and Euronext 100 indices.

PRESS RELEASE

31.07.2008, SAFRAN
SAFRAN releases its first-half 2008 results, which are in line with targets

Paris, July 31, 2008

SAFRAN, the international high-technology group with leadership positions in its core businesses of aerospace propulsion, aircraft equipment, and defense security, today released its results for the six months ended June 30, 2008.

First-half 2008 key figures (*)

Revenue: €5,057 million

• Up 2.8% on first-half 2007, or 14.8% like-for-like (based on a constant group structure and exchange rates)

Profit from operations: €474 million

• Profit from recurring operations totaled €328 million (versus €381 million in first-half 2007 excluding communications and €311 million including communications), representing 6.5% of revenue including a €355 million negative currency impact
• The gain arising on the transfer of Monetel business to Ingénico amounted to €146 million

Net debt stood at €101 million

(*) Data presented in accordance with IFRS 5, with the Sagem Mobiles business included in operations held for sale.

Commenting on these results Jean-Paul Herteman, SAFRAN’s Chief Executive Officer, stated:

"SAFRAN met its targets in the first six months of 2008, both from a financial and strategic perspective. The increase in profit from recurring operations (excluding capital gains) clearly shows how the productivity gains we have achieved combined with growth in the services business (over 20% for CFM56 engines) offset for the most part the €355 million adverse effect of euro/dollar exchange rates during the period.

As announced on February 15, 2008, a constructive solution has been reached with the venture capital fund Sofinnova enabling us to exit from the mobile phone business under optimal financial and social conditions.

Our performance in the aircraft business remained buoyant and our 50-50 partnership agreements with General Electric have been extended until 2040 and broadened to encompass engine services and nacelles. Obviously, given the current financial crisis and soaring oil prices we are carefully tracking the situation of our customers but are nevertheless standing by our full-year 2008 targets and remain confident for the medium-term outlook."

Consolidated results of the SAFRAN Group

All figures in this press release represent adjusted data. These data are drawn up alongside reported consolidated data to reflect the Group’s actual financial performance, and notably for the purpose of:

• offsetting in the income statement the impact of revaluations of intangible assets carried out as a result of the Sagem-Snecma merger and the related amortization recorded in the reported figures.
• including in profit from operations the unwinding of currency hedges during the period. In addition, in accordance with IFRS 5, the Sagem Mobiles business has been classified under operations held for sale as this business is currently in the process of being sold.

A table reconciling reported and adjusted data is provided in the appendix to this press release.

In € millions	First-half 2007 (1)	First-half 2008	Like-for-like change (based on a constant Group structure and a constant USD exchange rate)
Revenue	4,918	5,057	14.8 %
Profit from operations	381	474 of which 328 from recurring operations*
as a % of revenue	7.7%	6.5%
Net profit/(loss) from operations held for sale	(47)	(119)
Net profit (Group share)	215	156
Earnings per share (in €)	0.52	0.38

(1) H1 2007 results released last year included Communication activities : revenue and profit from operations amounted respectively to €5,733 million and €311 million. First half 2007 results as presented above has been restated to be comparable with first half 2008 results

* i.e. excluding the €146 million gain arising on the transfer of Monetel business to Ingénico.

Revenue

Despite the negative €550 million USD currency impact, revenue climbed 2.8% in first-half 2008, or 14.8% on a like-for-like basis. This rise reflects a sustained increase in sales volume of original equipment and spare parts in the aerospace propulsion, aircraft equipment and security businesses.

Profit from operations

Profit from operations totaled €474 million including the €146 million gain arising on the transfer of Monetel business to Ingénico. Profit from recurring operations amounted to €328 million, representing 6.5% of revenue, and was in line with targets. The negative €355 million USD currency impact was offset by productivity gains and growth in the spare parts business.

Sale of the mobile phone business

As announced when the Group released its 2007 financial statements, SAFRAN has entered into an agreement with the high-tech venture capital fund Sofinnova which will enable the Group to exit from its mobile phone business. Consequently, at June 30, 2008 this business was classified under operations held for sale.

During the first half of 2008 Sagem Mobiles reported a net loss of €45 million. Provision charges related to the divestment came to €74 million (net of tax).

Additional expenses and provision charges to be recorded in the second half of the year as the sale progresses have been valued at approximately €100 million.

***

Results by branch

In € millions	H1 2007	H1 2008
Aerospace Propulsion Revenue Profit from operations % revenue	2,779 297 10.7 %	2,852 278 9.7 %
Equipements Revenue Profit from operations % revenue	1,373 75 5.5 %	1,426 47 3.3 %
Défense Sécurité Revenue Profit from operations % revenue	766 26 3.4 %	779 34* 4.4 %

(*) excluding the gain arising on the transfer of Monetel business to Ingénico

Aerospace Propulsion

At June 30, 2008 the Group’s order backlog included over 6,400 CFM56 engines. Some 500 additional orders were taken during the Farnborough International Airshow, bringing the backlog to more than five years’ worth of production. At the same time, the backlog for helicopter engines is still high, at 1,900 orders.

Profit from operations for the branch totaled €278 million after a negative USD currency impact of €221 million. This satisfactory performance was achieved on the back of (i) higher sales volumes, notably for spare parts which were up 22% for CFM56 engines and (ii) ongoing productivity gains. On the strategic front, the 50-50 joint venture agreement entered into with General Electric for short-to-medium haul aircraft engines has been extended until 2040 and broadened to encompass related services. Against this backdrop, a project for a new "LEAP X" engine providing for 16% fuel efficiency gains compared with the current best engines was presented at the Farnborough International Airshow.

Aircraft Equipment

Despite a negative €130 million USD currency impact, profit from operations amounted to €47 million, representing 3.3% of revenue. The ramp-up of deliveries of nacelles for the A380 during the period took place in line with objectives. Following a first quarter that continued to feel the effects of new production processes, improvements began to take shape towards the end of the period. Business volumes grew significantly for all of the Aircraft Equipment operations and the certification of SAFRAN’s electric brakes for the B737 has engendered strong prospects for both original equipment and spare parts.

Lastly, a 50-50 joint venture agreement was entered into with General Electric for new nacelles.

Defense Security

Profit from recurring operations (i.e. excluding the gain arising on the transfer of Monetel business) totaled €34 million, representing 4.4% of revenue. This performance was driven by growth in optronic operations (which include land combat activities). The avionics business felt the impact of expenses and technological risks related to research and development as well as the ramp-up of navigation equipment.

Orders in the security sector increased strongly year-on-year and represented €160 million for the ID business – more than double the revenue figure for full-year 2007. Strong volumes recorded over the period and return to profitability reported by Sagem-Orga (smart cards) boosted security’s profitability for first-half 2008.

In addition, following SAFRAN’s end-June announcement of the acquisition of the passport manufacturer Sdu Identification BV which is based in the Netherlands, the Group has bolstered its positioning as a worldwide leader in ID solutions.

Net profit

Net profit for the period came in at €156 million, taking into account the €146 million gain arising on the transfer of Monetel business to Ingénico and the €119 million net loss reported by mobile phone operations held for sale.

Net debt

Net debt was scaled back to €101 million from €169 million at December 31, 2007 following the share buybacks carried out under the program approved by the Company’s shareholders at the May 28, 2008 Annual Shareholders’ Meeting.

Outlook

Based on the continued implementation of our action plans and hedging strategies to protect the Group against fluctuations in the USD, the following targets for full-year 2008 are maintained :

• Revenue of over €10 billion excluding the Mobile phone business
• €750 million* in profit from operations excluding the Mobile phone business

(*) including the €146 million gain arising on the transfer of Monetel business

Trends for the aircraft market have changed significantly as a result of the twin effects of soaring oil prices and the deepening financial crisis, particularly in the United States. Growth of aircraft deliveries may slow in 2009 and 2010 although this will only have a limited impact on SAFRAN as the Group’s main backlog contributors are Asia and the Middle East, whose growth rates are expected to decline only moderately. Furthermore, SAFRAN’s service activity is set to remain at high levels thanks to the size and newness of its installed fleet. And lastly, business will be further lifted by the fact that recent models of engines that are not likely to be withdrawn are about to enter the maintenance phase. To date 60% – or 6,700 – of these engines have not yet generated any service activity.

***

SAFRAN is an international high-technology group with three core businesses: aerospace propulsion, aircraft equipment, and defense security. At December 31, 2007 the Group employed 63,000 people in over 30 countries and generated revenue of €12 billion for the year then ended. The SAFRAN Group comprises many companies bearing prestigious brand names and holds, alone or in partnership, global or European leadership positions in its markets. SAFRAN is listed on NYSE Euronext Paris and forms part of the SBF 120 and Euronext 100 indices.

***

Appendix

Reconciliation between reported and adjusted data

(1) Remeasurement of foreign-currency revenue net of purchases (by currency) at the hedged rate, through the reclassification of gains and losses on hedges allocated to cash flows for the period

(2) Gains and losses on hedges allocated to future cash flows (€352 million excluding taxes), recognized in equity

(3) Cancellation of amortization/impairment of intangible assets relating to the remeasurement of aeronautical programs pursuant to the first-time application of IFRS 3 at April 1, 2005.

Only the reported consolidated data have been audited by the Group’s Statutory Auditors. The adjusted data were verified by the Auditors as part of their review of all of the information contained in the interim report for the six months ended June 30, 2008.

PRESS RELEASE

17.10.2008, SAFRAN
SAFRAN reports consolidated revenue for the nine months ended September 30, 2008

Paris, October 17, 2008

• 14% organic growth
• Targets maintained for full-year 2008

Key figures and significant events

• €7,446 million(*) in consolidated revenue for the first nine months of the year, representing year-on-year organic growth of 14%
• A large order backlog (6,740 engines, representing over 6 years’ worth of production) and a high level of deliveries (1,013 CFM engines and 843 helicopter engines)
• Revenue generated by the spare parts business in line with full-year forecasts
• Acquisition of Motorola’s biometrics business (Printrak)

(*) excluding the mobile phones business accounted as discontinued operations

Jean-Paul Herteman, SAFRAN’s Chief Executive Officer, stated:

"SAFRAN’s revenue for the nine months ended September 30, 2008 climbed 14% based on a constant group structure and exchange rates, in line with our targets. The strong positioning of our product and services portfolio has enabled us to continue to grow strongly in our core businesses. Moreover we are still developing internationally (particularly in the dollar zone and emerging markets), and are also carrying out targeted acquisitions in high-potential markets."

Revenue for the nine months ended September 30

In € millions	Sept. 30, 2007	Sept. 30, 2008	Year-on-year change	Organic growth*
Aerospace Propulsion	4,227	4,217	-0.2%	+12.4%
Aircraft Equipment	2,002	2,084	+4.1%	+19.6%
Defense Security	1,104	1,145	+3.7%	+10.2%
Group total	7,333	7,446	+1.5%	+14.0%
Mobile phones	415	231	-44.3%

* based on a constant group structure and exchange rates

Aerospace Propulsion : +12.4%

Revenue growth in the original equipment and services businesses for commercial aircraft remained buoyant, despite unfavorable basis of comparison with 2007 when the Group recorded an exceptional level of deliveries of engines as part of a major Mirage 2000 export contract signed with Greece. Moreover SAFRAN’s production levels for helicopters leveled off during the first nine months of 2008 due to customers reducing their engine inventories level.

In the nine months ended September 30, 2008 the services business accounted for 45% of the branch’s revenue versus 44% for full-year 2007.

Aircraft Equipment : +19.6%

Volumes grew significantly across all operations, both for original equipment and services. Deliveries of nacelles for the A380 continued to rise. At the same time, the first deliveries of carbon brakes for the B737NG demonstrated the swift commercial success of this program whose potential market represents over 60% of SAFRAN’s current brake fleet.

Defense Security : +10.2%

The Security business still reported a 20% rise, led by identity solutions and biometric terminals operations.

Recent developments

Over the period SAFRAN continued to expand in the dollar zone and emerging markets, opening three new facilities in the United States – Grand-Prairie (Sagem Avionics), Monroe (Turbomeca) and Walton (Messier Bugatti). Having launched eleven new manufacturing sites outside France since the beginning of the year, the Group is taking measures to strengthen its competitive edge and manage its exposure to the US dollar.

The Group is implementing a targeted acquisition strategy in the high-growth security business. It has recently acquired Motorola’s biometrics business, including its Printrak trademark, which is specialized in AFIS (Automated Fingerprint Identification Systems). These activities generate around US$ 70 million in revenue with 300 customers in 40 countries.

Outlook

Based on the Group’s current revenue levels, management data available at September 30, 2008 and aircraft manufacturers’ forecasts, we are maintaining our targets for full-year 2008 in adjusted data terms – i.e. over €10 billion in revenue excluding the mobile phones business and €750 million(*) in profit from operations excluding mobile phones.

(*) Including the €146 million gain arising on the transfer of the Monetel business to Ingenico

Financial agenda

• Interim dividend payment: December 15, 2008
• 2008 annual results announcement: February 18, 2009
• Annual General Meeting of Shareholders: May 28, 2009

***

SAFRAN is an international high-technology group with leadership positions in its core businesses of aerospace propulsion, aircraft equipment, and defense security. The SAFRAN Group employs 57,000 people in over 30 countries and generates revenue of more than €10 billion. It comprises many companies bearing prestigious brand names and holds, alone or in partnership, global or European leadership positions in its markets. SAFRAN is listed on Euronext Paris and forms part of the SBF 120 and Euronext 100 indices.

PRESS RELEASE

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