1. I n v e s t o r D a y Innovation and Growth N o v e m b e r 1 2 t h, 2 0 0 3

2. Business review Michel Combes Michel Combes Jean-Paul Cottet Jean-Paul Cottet Barbara Dalibard Barbara Dalibard Jean-Yves Gouiffès Jean-Yves Gouiffès Olivier Sichel Olivier Sichel Wilfried Verstraete Wilfried Verstraete

3. CAUTIONARY STATEMENT This presentation contains forward-looking statements about France Telecom. Such statements are not historical facts and include expressions of managements expectations about new and existing programs, opportunities, technology and market conditions. Although France Telecom believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. Important factors that could cause actual results or performance to differ materially from the results anticipated in the forward-looking statements include, among other things, the success of the announced FT 2005 plan, including the 15 + 15 + 15 plan and the TOP program, France Telecoms other strategic, financial and operating initiatives, changes in economic, business and competitive markets, risks and uncertainties attendant upon international operations, technological trends, exchange rate fluctuations and market regulatory factors. More detailed information on the potential factors that could affect the financial results of France Telecom is contained in the Document de référence submitted to the COB on March 21, 2003 and in its Form 20-F filed with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this document speak only as of the date of this presentation and France Telecom does not undertake to update any forward- looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This presentation contains certain measures calculated based on French GAAP information. For a definition of these measures, please refer to slide 55. In accordance with market authorities recommendations, France Telecom is no longer using the acronym EBITDA for Operating income before depreciation, but the French acronym REAA. This presentation contains forward-looking statements about France Telecom. Such statements are not historical facts and include expressions of managements expectations about new and existing programs, opportunities, technology and market conditions. Although France Telecom believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. Important factors that could cause actual results or performance to differ materially from the results anticipated in the forward-looking statements include, among other things, the success of the announced FT 2005 plan, including the 15 + 15 + 15 plan and the TOP program, France Telecoms other strategic, financial and operating initiatives, changes in economic, business and competitive markets, risks and uncertainties attendant upon international operations, technological trends, exchange rate fluctuations and market regulatory factors. More detailed information on the potential factors that could affect the financial results of France Telecom is contained in the Document de référence submitted to the COB on March 21, 2003 and in its Form 20-F filed with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this document speak only as of the date of this presentation and France Telecom does not undertake to update any forward- looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This presentation contains certain measures calculated based on French GAAP information. For a definition of these measures, please refer to slide 55. In accordance with market authorities recommendations, France Telecom is no longer using the acronym EBITDA for Operating income before depreciation, but the French acronym REAA.

4. Business review: Key operating themes Cash generation Margins trends Revenue growth CapexCapex TOPTOP Finding the right balance between growth and profitability

5. 5 5 R e v e n u e g r o w t h What is underpinning FTs revenue targets?

6. Revenue growth: FT objective Higher end of the +3%* to +5%* rangeHigher end of the +3%* to +5%* range Objective 2004-5 Growth in mobileGrowth in mobile Fixed line business initiativesFixed line business initiatives Wanadoo & other internationalWanadoo & other international Key drivers * Pro forma basis 54 revenues growth initiatives (TOP-LINE) of which 14 cross division projects Pro forma Revenue growth

7. Number of initiatives by division, transversal Number of initiatives by division, transversal A group-wide initiative Revenue growth: Growth initiatives Orange International Transversal Others Wanadoo Fixed (Retail) Fixed (Corporate) Develop new services Increase synergies Leverage growth levers Reinforce positions Control risks Number of initiatives by objective

8. R e v e n u e g r o w t h Orange

9. Revenue growth: Orange objectives Improve growth above 2003 trendImprove growth above 2003 trend Objective 2004-5 Momentum of 2003Momentum of 2003 New ease of use initiatives and 3GNew ease of use initiatives and 3G Growth management : market based and segmentationGrowth management : market based and segmentation Key drivers After a rebuilt momentum in 2003, Orange expected to improve revenue growth in 2004 Growth inflexion achieved: New managementNew management Focus on existing footprintFocus on existing footprint Improve client mixImprove client mix Launch Orange WorldLaunch Orange World 20032003

10. Revenue growth: Orange momentum in 2003 Quarterly total revenues (m) & growth (%) Q1 03Q2 03Q3 03 4,255 4,360 4,714 -6.3% 2.5% 8.1% Quarterly net adds (000s) and growth (%) 1,325 557 696 Q1 03Q2 03Q3 03 -50.4% 25.0% 90.4% Note: reported numbers. Orange has built a strong customer base in 2003 with improved mix A favourable launchpad for growth going forward Rest of the world contributing to 82% of customer net add in 9m 03 Favourable trends already visible at Orange in 2003, RoW is a growth engine for Orange

11. Revenue growth: Orange ARPU in 2003 Note: ARPU is annual rolling average revenue per user. Continuous improvement in ARPU Orange UK ARPU (£) Orange France ARPU () 8.7% 10.9% 13.7% 15.6% non voice voice

12. Revenue growth: Orange World in 2003 Orange experience One icon for access to a wide range of non-voice services One icon for access to a wide range of non-voice services One simple tariff throughout Europe (Orange World access / forfait Orange World) One simple tariff throughout Europe (Orange World access / forfait Orange World) An opportunity to try new services and a unified orange world portal An opportunity to try new services and a unified orange world portal A choice of phones (including the Orange Signature range) A choice of phones (including the Orange Signature range) A key initiative already launched to drive non voice service usage Benefits for both customers and Orange More attractive handsets and services combined with a simple price and a personalised feature stimulate wider usage More attractive handsets and services combined with a simple price and a personalised feature stimulate wider usage Gain extra added value customers, and improve customer loyalty Gain extra added value customers, and improve customer loyalty

13. Revenue growth: Orange World roadmap UK UK France France Switzerland Switzerland Q1 04 Q2 04 Nov 2003 Denmark Denmark Netherlands Netherlands Belgium Belgium Romania Romania Slovakia Slovakia Advantages of a pan-European offer Benefits for both customers and Orange Extension of richer and standard offers outside Orange core markets, to conform brand value and expectations Deploy a seamless offer across the European footprint with limited costs

14. Revenue growth: Orange 2004 initiatives Targeted offers, loyalty programs,Targeted offers, loyalty programs, tariff refresh and retention program Improve Customer mix & segmentation Improve International offers to MNC, holidayInternational offers to MNC, holiday offers, and last minute offers Improve Yield Promote MMS use, launch SMS email alert, roll-out IM service, launch w-HA micro paymentPromote MMS use, launch SMS email alert, roll-out IM service, launch w-HA micro payment platform platform Non voice

15. Revenue growth: Orange 2004 initiatives Increase Signature device penetrationIncrease Signature device penetration New handsets Enable prepaid roaming across footprint, introduce new services (short-code dialing), GPRS roaming, leverage Open Seamless AllianceEnable prepaid roaming across footprint, introduce new services (short-code dialing), GPRS roaming, leverage Open Seamless Alliance RoamingRoaming Multiple initiatives stimulating growth in addition to tranversal projects

16. Revenue growth: Orange 2004 3G commercial launch objectives Orange confirms its 3G targets 200320042005 UK Commercial trials in major cities UK Commercial trials in major cities UK Commercial Launch in ten major cities, major rail lines and airports, with 50% population coverage UK Commercial Launch in ten major cities, major rail lines and airports, with 50% population coverage France Commercial launch in ten major cities France Commercial launch in ten major cities France Developing Villes Orange trials in Toulouse and Lille France Developing Villes Orange trials in Toulouse and Lille Commercial Launch in: Switzerland Belgium Commercial Launch in: Switzerland Belgium

17. data as % revenue 10%15%20%25%30% data revenue 2003 2004 2005 Revenue growth: Orange view of 2004-05 data revenue growth Note: bubble size denotes targeted data ARPU.

18. Revenue growth: Orange into 2004 Orange revenue growth expected to improve in 2004 from 2003 trends Increased competition in the UK with 3 and TescoIncreased competition in the UK with 3 and Tesco But no threat on value customersBut no threat on value customers No major impact of VOD-SFR joint marketingNo major impact of VOD-SFR joint marketing MarketassumptionsMarketassumptions F/M price regulation already built in expectationsF/M price regulation already built in expectations Bill&Keep exit in France assumed from july 1st 04Bill&Keep exit in France assumed from july 1st 04 RegulationRegulation Orange has regained control of its growth leversOrange has regained control of its growth levers Visibility On revenue Visibility

19. R e v e n u e g r o w t h Fixed line in France

20. Revenue growth: Fixed line France objective Reach the inflexion pointReach the inflexion point Objective 2004 Broadband (retail & corporate)Broadband (retail & corporate) New services (retail & corporate)New services (retail & corporate) New handsets (retail)New handsets (retail) Key drivers Full FT group objective consistent with cautious stance on fixed in France

21. Revenue growth: Fixed line France 2003 Slight decrease over 9 monthsSlight decrease over 9 months Number of lines Slower decline in localSlower decline in local Long distance market share around 63%Long distance market share around 63% Traffic market share share Contributive revenue down 2.4%* for the segment over 9 months Retail markets more resilient than corporate & wholesale 1.1m new ADSL lines over 9 months1.1m new ADSL lines over 9 monthsBroadbandBroadband 18% growth over 9 months, lower growth from Q318% growth over 9 months, lower growth from Q3 despite roughly stable market share despite roughly stable market share DatatransmissionservicesDatatransmissionservices * Pro forma growth

22. Revenue growth: Fixed line France challenges in 2004 Pro-actively seeking the inflexion point in a challenging context Subscription resale, broadband wholesale pricesSubscription resale, broadband wholesale prices RegulationRegulation A more cyclical market, price decline and adverse product mix effectA more cyclical market, price decline and adverse product mix effect Corporate Market trends Corporate Fixed line retail market still has untapped potentialFixed line retail market still has untapped potential for new services and marketing offers for new services and marketing offers Retail Market trends Retail Uncertainty for economic growthUncertainty for economic growth Declining market for voiceDeclining market for voice Strong momentum For ADSLStrong momentum For ADSL MarketsMarkets

23. Revenue growth: Fixed line France market assumptions Fixed voice volume still declining Fixed voice volume still declining Access lines slightly down Access lines slightly down Economic climate to improve in 2004 Economic climate to improve in 2004 IT spending take up to have a favourable delayed impact IT spending take up to have a favourable delayed impact Mixed signals for 2004, comparable to 2003

24. Revenue growth: Fixed line France regulatory assumptions Liste Rouge* free since August 6,2003 ( 130 M full year impact) Liste Rouge* free since August 6,2003 ( 130 M full year impact) Line resale: no decision yet and very small impact if any in 2004 Line resale: no decision yet and very small impact if any in 2004 Subscription fee increase requested as soon as possible and assumed early 2004 Subscription fee increase requested as soon as possible and assumed early 2004 FT expects more freedom in highly competitive urban areas FT expects more freedom in highly competitive urban areas Fixed/Mobile price cut Fixed/Mobile price cut * Unlisted numbers Neutral for revenue with FT current assumptions

25. Revenue growth: Fixed line France 2004 broadband initiatives Increase penetration in France Increase penetration in France Boost broadband adoption with new services Boost broadband adoption with new services Video-telephonyVideo-telephony TVoDSL and video-on-demandTVoDSL and video-on-demand Home networksHome networks WifiWifi Broadband for corporateBroadband for corporate Objective of 4.5m ADSL line end of 2004 up circa 50% yoy Broadband remains the growth engine

26. Revenue growth: Fixed line France 2004 initiatives Extend tariff plans, extend range of flat fee offersExtend tariff plans, extend range of flat fee offers Increase loyalty Subscription fee increase, tariff packages, increase penetration of service options, increase broadband penetration to protect lines installedSubscription fee increase, tariff packages, increase penetration of service options, increase broadband penetration to protect lines installed Defend telephony revenue Develop new distribution channels, increase market coverage (shop & online)Develop new distribution channels, increase market coverage (shop & online) New channel management management

27. Revenue growth: Fixed line France 2004 initiatives on handsets Improve telephony experience with new handsets That parallel mobile handsets look-and-feel, functionality That parallel mobile handsets look-and-feel, functionality That facilitate penetration of new network services (SMS, address book, reachability, etc.) That facilitate penetration of new network services (SMS, address book, reachability, etc.) Milestones YE 2003: 50% of devices sold to be DECT / SMS compatible YE 2003: 50% of devices sold to be DECT / SMS compatible 2004: over 90% of devices sold to be SMS compatible 2004: over 90% of devices sold to be SMS compatible mid 2004: launch MMS terminals mid 2004: launch MMS terminals Sales to double in 2004 Sales to double in 2004 Develop new services, spur voice usage

28. Revenue growth: Fixed line France 2004 initiatives FUN120 COULEUR ARIA Large Array of SMS compliant Handsets SwissVoice 125 CORDLESS DECT Phones Even for small budget Premium & Discovery SIEMENS A110 Alcatel Versatis 790 SAGEM D 70V Siemens Gigaset S100 Philips Zenia 300 Alcatel Versatis 1190 DOROMATRA SILLAGE 3000 Premium & Discovery Security for Seniors Siemens Gigaset E150 INVENTEL MACARON

29. Revenue growth: Fixed line France 2004 initiatives From a current market share of 20% (EUR1bn market size), a refocused organization should improve FT positions PABX and CPE Adapt large account type intranet offers to SME Intranet for SME SME Reposition offer as part of FT communication Service business. Strengthen proactive sales approach. FT expects significant outsourcing deals Managed Services & outsourcingManaged outsourcing

30. R e v e n u e g r o w t h Wanadoo & Other international

31. Revenue growth: Rest of the group objective Positive growth in line with total group trend Objective 2004 Strong momentum at Wanadoo Mobile growth at TP Key drivers Growth initiatives in France planned to be developed abroad

32. Revenue growth: Wanadoo 2003 Internet penetration by country (percentage) ADSL markets in Europe grow 50 %+ per year Number of Wanadoo broadband customers in Europe (in thousands) Source: Jupiter Research – February 2003 2002 2003E Sept. 2002 Dec. 2002 March 2003 June 2003 Sept. 2003 982 1,374 1,613 1,819 2,071 Netherlands Spain France United Kingdom

33. Revenue growth: Wanadoo 2003 Source: wanadoo estimate, June 30, 2003 Internet access ranking and estimated ADSL market share Wanadoo / France Telecom T-OnlineT-OnlineAOLAOLTiscaliTiscaliFreeFree Telefonica / Terra BTBT N°1 (64%) N°4 (7%) N°2 (8%) N°4 (6%) N°3 (13%) -- N°1 (7%) -- N°2 (11%) N°7 (4%) -- N°3 (51%) N°2 (10%) N°4 (n/a) -- N°5 (n/a) -- N°1 (81%) -- N°2 (10%) -- N°2 (6%) -- N°1 (73%) N°3 (9%) N°4 (2%) -- FranceFrance UKUK SpainSpain Netherland s GermanyGermany ItalyItaly -- N°3 (5%) --

34. FranceFrance 1,564,000 + 87, 000 Brand name Marketing and technical innovation (Wi-Fi) Wanadoo eXtense Wi-Fi PS2 Wanadoo eXtense Wi-Fi PC Card Orange Multimedia eXtense Pack 1,564,000 + 87, 000 Brand name Marketing and technical innovation (Wi-Fi) Wanadoo eXtense Wi-Fi PS2 Wanadoo eXtense Wi-Fi PC Card Orange Multimedia eXtense Pack BB subscribers end Q3 New offers 123,000 +17, 000 2.5m narrowband customers to be migrated onto broadband Moneyback guarantee ADSL offer with 1 month subscription on a trial basis 2 months free subscription for signup in Dixons stores 123,000 +17, 000 2.5m narrowband customers to be migrated onto broadband Moneyback guarantee ADSL offer with 1 month subscription on a trial basis 2 months free subscription for signup in Dixons stores UKUK 148,000 +12,000 Clear alternative to Telefonica /Terra 34% market share with 1.5m customers Modem & router ADSL offer with fixed IP address for SMEs Time-based ADSL offer Flat-rate plans for unlimited Internet access and phone calls with Uni2 148,000 +12,000 Clear alternative to Telefonica /Terra 34% market share with 1.5m customers Modem & router ADSL offer with fixed IP address for SMEs Time-based ADSL offer Flat-rate plans for unlimited Internet access and phone calls with Uni2 SpainSpain StrenghtsStrenghts Revenue growth: Wanadoo 2003 235,000 + 13, 000 47% of the customer base is broadband New Wi-Fi offer Broadened cable offer (Wanadoo Cable Easy) 235,000 + 13, 000 47% of the customer base is broadband New Wi-Fi offer Broadened cable offer (Wanadoo Cable Easy) NetherlandsNetherlands Increase in September

35. Revenue growth: Wanadoo 2004 initiatives and objectives Wanadoo France Boost sales in France Increase value for broadband + 60% ADSL revenues / At least 50% acquisition share Internet services Develop paid-for services Develop B2B mobile interactive services Double paid-for service revenues Directories Maximize the value of the customer base Enhance White pages with the inclusion of mobile numbers Develop mobile services Increase by 5% the total number of advertisers and increase the ARPA Broadband to support growth in France, Yellow pages not yet mature

36. Revenue growth: Wanadoo 2004 initiatives and objectives Wanadoo UK Drive on broadband and diversify / optimize distribution Double ADSL revenues / Exceed 10% of the overall customer base (6% en 2003) Wanadoo Spain and Wanadoo Nederlands Enhance ADSL positions Leverage on our French innovations to boost market share Boost ADSL revenues Leverage broadband growth out of France and maintain a broadband leadership in Europe

37. Revenue growth: Wanadoo Wanadoo going forward ADSL revenue up 60% in France Double paid for revenue Increase by 5% total number of advertisers for YP Double ADSL revenue in the UK Key targets 2004 Remaining potential to unfold Leader on a high growth market in Europe that the Group intend to fully exploit Wanadoo going forward forward Wanadoo is one of the FTs group growth engine

38. Revenue growth: Equant 2004 initiatives In a recovering market, Equant expect to maintain its leading position –In spite of indirect sales (outside FT) decreasing –By developping installed customer base and offering a complete network services portfolio –By developping existing and new outsourcing contracts –By refocusing sales and delivery toward value added services (consulting, project, service management) Equant is a core international asset of FT group

39. New Pricing PlansNew Pricing Plans ADSLADSL Customer Care: CRM & « 3000 »Customer Care: CRM & « 3000 » New offersNew offers Focus on Business Market ShareFocus on Business Market Share Convergent Fixed + Mobile approachConvergent Fixed + Mobile approach Data ServicesData Services Orange intimacyOrange intimacy New Offers: IP VPN / IN Numbers / …New Offers: IP VPN / IN Numbers / … New sales organisationNew sales organisation Large projectsLarge projects Revenue growth: TP 2004 initiatives Fixed Line Penetration Mobile Penetration & Market Share Business Penetration

40. T O P a n d o t h e r o p e r a t i n g t h e m e What is the profitability trend?

41. TOP: whats next? TOP in 2004 Sourcing: approx EUR1.5bn full year impact in 2004 for Opex+Capex Capex sharing (eg: IT & network application convergence)Continuous improvement in Opex control (eg:saving trackers, process reengineering and best practices) Working capital :Billing process improvement Groups reengineering leads to further efficiency gains and better quality of service FactsFacts Key drivers FT fully focused on TOP execution which remains the key priority

42. TOP : 2004 key initiatives Key initiatives in 2004: – –Sourcing: launch of Wave 3, full implementation of Wave2 – –Capex:Focus on growth (UMTS, ADSL), sharing for IT – –Opex: New process for local network units URR in France, rationalize international network supervision, Continuous optimization of IT operation and communication spend – –Working capital: mutualize ressources to improve corporates Clients billing – –New projects to be launched in 2004: revenue insurance, supply chain,network procurement TOP is an evolving program

43. Other operating themes: operating margins Operating margins trends 2004-05 Improvement from 2003 and consistent with approx 40% REAA margin objective in 2005 Objective 2004-5 Impact of sourcing in 04 (approx 1% of REAA margin), continuous improvement of TOP program, continuous improvement of TOP program, Headcount reduction over 2003-2005 (approx 0.5% REAA margin in 04 for total group labor cost decrease) Other Opex gains compensated by R&D and SAC increase Key drivers Toward approx 40% REAA margin in 2005

44. Other operating themes: Capex Capex policy for 2004-2005 Increase from 2003 level in spite of sourcing gains (approx 25% of capex reduction in Q3 03) Objective 04-05 UMTS capex, broadband and new services development development Key drivers Back to approx 11% capex / sales ratio FT can be fully prepared for growth in spite of contained capex levels through new efficiencies

45. Other operating themes: Cash generation Cash generation from operations REAA-Capex / revenue ratio approx 29% in 2005 REAA-Capex rising through revenue growth Objective 2005 confirmed confirmed Revenue at the high end of +3 and +5% range 2005 REAA margin approx 40% 2005 Capex/Sales approx 11% Key drivers The right balance between operating margin and revenue growth. Objective of Net debt/REAA below 2.5 for 2004 and between 1.5 and 2 for 2005

46. 46 France Telecom Investor Day Conclusion Frank E. Dangeard

47. CAUTIONARY STATEMENT This presentation contains forward-looking statements about France Telecom. Such statements are not historical facts and include expressions of managements expectations about new and existing programs, opportunities, technology and market conditions. Although France Telecom believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. Important factors that could cause actual results or performance to differ materially from the results anticipated in the forward-looking statements include, among other things, the success of the announced FT 2005 plan, including the 15 + 15 + 15 plan and the TOP program, France Telecoms other strategic, financial and operating initiatives, changes in economic, business and competitive markets, risks and uncertainties attendant upon international operations, technological trends, exchange rate fluctuations and market regulatory factors. More detailed information on the potential factors that could affect the financial results of France Telecom is contained in the Document de référence submitted to the COB on March 21, 2003 and in its Form 20-F filed with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this document speak only as of the date of this presentation and France Telecom does not undertake to update any forward- looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This presentation contains certain measures calculated based on French GAAP information. For a definition of these measures, please refer to slide 55. In accordance with market authorities recommendations, France Telecom is no longer using the acronym EBITDA for Operating income before depreciation, but the French acronym REAA. This presentation contains forward-looking statements about France Telecom. Such statements are not historical facts and include expressions of managements expectations about new and existing programs, opportunities, technology and market conditions. Although France Telecom believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. Important factors that could cause actual results or performance to differ materially from the results anticipated in the forward-looking statements include, among other things, the success of the announced FT 2005 plan, including the 15 + 15 + 15 plan and the TOP program, France Telecoms other strategic, financial and operating initiatives, changes in economic, business and competitive markets, risks and uncertainties attendant upon international operations, technological trends, exchange rate fluctuations and market regulatory factors. More detailed information on the potential factors that could affect the financial results of France Telecom is contained in the Document de référence submitted to the COB on March 21, 2003 and in its Form 20-F filed with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this document speak only as of the date of this presentation and France Telecom does not undertake to update any forward- looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This presentation contains certain measures calculated based on French GAAP information. For a definition of these measures, please refer to slide 55. In accordance with market authorities recommendations, France Telecom is no longer using the acronym EBITDA for Operating income before depreciation, but the French acronym REAA.

48. Management drivers Use of cash Summary of Investor Day External growth and equity structures Group priorities

49. Investor Day Conclusions (1) You have met the ExCom members responsible for delivering on these commitments 1. All previous guidance confirmed – –Revenue growth: top end of 3 to 5% range – –REAA: towards app. 40 % margin in 2005 – –Capex ratio: 10 to 12 % of sales – –Leverage: 1.5 to 2 Net Debt / REAA ratio in 2005 2. Revenue growth can be achieved without jeopardizing deleveraging and capital intensity targets

50. Investor Day Conclusions (2) 3. Guidance underpinned by TOP and TOP-LINE programs –Numerous product, service and "back-office" roadmap commitments announced today 4. As in the case of TOP, TOP-LINE requires reengineering of the FT Group's "business models" in: – –Corporate solutions – –Broadband access and services – –Business integration 5. Partnerships and innovation will play an important role Top end of 3 to 5% growth range 1.5 to 2 Net Debt / REAA ratio in 2005

51. Group priorities 1. Cost rationalization and reengineering (TOP, best-in- class performance) 2. Debt reduction managed to hit 2005 target of 1.5 to 2 ratio of Net debt / REAA 3. "Excess cash" used to improve organic growth shareholder return, within existing footprint 4. Seize the opportunities of the technology transition within the TOP-LINE program Balancing profitability and growth: France Telecom is NOT a "utility"

52. Use of cash priorities Distribution As early as 2004 Debt reduction to hit 2005 target (1.5 to 2 x) Cash from operations "Excess Cash": Cash from operations beyond TOP target, disposals Cash Call on Market Organic growth investment Footprint optimization (in / out) Subsidiaries' equity structure optimization (up / down) Major acquisition Not envisaged Share buy-back Not envisaged 1.1. 2.2. 3.3. 4.4. 5.5. 6.6. 7.7.

53. Use of cash Comments 1. Distributions rather than share buy-backs 2. Organic growth investments in support of the TOP- LINE program 3. Subsidiaries' equity structure optimization only for fundamental strategic and financial purposes, e.g. ORANGE 4. Footprint optimization see Dec. 5, 2002 criteria 5. No major acquisition contemplated France Telecom is focused on "cash returns"

54. Management criteria for decision A very strong equity story 1. Deleveraging the heart of value creation for the Group 2. The "twin engines" of deleveraging: – –Cost cutting and reenginnering TOP – –Organic growth TOP-LINE 3. Criteria for decision regarding use of "excess cash": – –Improved strategic positions – –Cash return on investments

55. 55 France Telecom Investor Day ExCom Members Q & A

56. Glossary Contributive Consolidated Revenues: consolidated revenues excluding intra-group transactions Pro forma figures: figures of the preceding period adjusted to reflect the same scope of consolidation and exchange rates as in the current period REAA: Operating income before depreciation and amortization of tangible and intangible assets and before amortization of actuarial adjustments in the early retirement plan Capex: acquisitions of intangible and tangible assets, excluding GSM and UMTS licenses Opex: operating charges before depreciation and amortization of tangible and intangible assets and before amortization of actuarial adjustments in the early retirement plan FCF (Free Cash Flow): net cash provided by operating activities, less net cash used in investing activities. FCF does not take into account investment of cash in short term marketable securities Operating working capital: net stocks, operational receivables, prior to securitisation, operational payables (excl. fixed production) DSO: Days of Sales Outstanding ARPU: Mobiles network revenues for the previous twelve months Mobiles weighted average customer base for the 12 month period Network revenues include outgoing traffic, incoming traffic, access fees, visitor roaming and value added services. The mobiles weighted average customer base for the 12 months period is the average of the monthly average customer bases (calculated as the sum of the opening and closing customer bases for the month divided by two). ARPU is quoted on a revenue per customer per year basis. Orange France (mainland) does not currently receive revenues from other French mobile network operators for voice calls from their networks that terminate on Orange France s mainland network as in some other markets, in particular the United Kingdom. As a consequence, French and UK ARPUs are not directly comparable.