Sales down due to particularly mild climatic conditions

Paris, 27 July 2007 - For the six months to 30 June 2007, Gaz de France's consolidated sales amounted to euro 13,778 million, down 11 per cent compared to the same period in 2006. This performance continues the trend seen over the first quarter of 2007 and in particular reflects the continuation into the second quarter of the climatic factors that affected the start of the year: an exceptionally warm 2006/2007 winter, followed by a spring season with particularly high temperatures. The average temperature of the first half of 2007 corresponds to a heat risk of less than one per cent, meaning that the probability of such a temperature taking place is less than one per cent. Over the first half of the year, volumes distributed in France were down by 25 TWh compared to a comparable period with average weather conditions, whereas in 2006 they were 15 TWh above average. The impact of the weather had similar effects outside of France. Under average weather conditions, the downturn in Group sales was limited to only 0.8 per cent mainly due to market conditions made difficult by the climate, leading to a lower level of gas production and arbitrage activities. Over the first six months of 2007, the Group sought to: - Continue to strengthen its international presence, currently with euro 5,602 million in sales outside of France. The percentage of sales generated outside of France represented 41 per cent of the Group total at the end of June 2007 and increased by 4 percentage points between the first half of 2006 and the first half of 2007. - Prepare for the deregulation of the markets on 1 July 2007 and a new commercial policy for retail customers that has been built around multi-energy and multi-service market offerings. - Create a new subsidiary for the distribution, a process which will be effective at the end of the year as announced. In spite of this unfavourable context, the Group maintains the financial objective for 2007 presented with the 2006 accounts: '2007 will be a year of consolidation, with EBITDA expected to be in line with the level for 2006'. This target is conditioned by average climate for the second half of 2007