1. 1 Human Resources At subscription A 15% discount on reference price An additional bank contribution of 3 times the amount you have invested (you buy 1 you have 4) During the 5 years No dividend Your personal contribution is protected At maturity (May 2013) or early redemption Your asset will consist of: your initial contribution + the potential capital gain on your personal contribution + an additional gain of 2,07 (69%) x the average protected rise (on the 5-year period on your contribution) All shares will be sold, so you can: keep your assets into the FCPE. They will be transferred into the World Classic compartment. They won’t be protected anymore but still invested in Thales shares Sell your assets & get cash (taxes and bank expenses may apply according to the country regulations) “SHARE PLUS” FORMULA

2. 2 Human Resources THE 2008 EMPLOYEE SHARE PLAN « Classic Share » 20% discount on reference price 100% of potential capital gains or losses Dividends re-invested Allocated in priority « Share Plus » 15% discount on reference price Personal contribution protected against loss + 100% of potential capital gain on personal contribution (1 share) + 69% additional average gain on 3 shares No dividend Scaled back in priority 3,500,000 shares available for the offer through 2 formulas which can be combined 3,500,000 shares available for the offer through 2 formulas which can be combined Interest free payment over 12 months (when local regulation allows)

3. 3 Human Resources PLANNING Reservation period Prices set Cancellation period Shares delivery Payment 7 - 26 March 2008 ~ 5 June 2008 *7 May 200824 April 200824-28 April 2008 * Payment of total amount or 1st instalment

4. 4 Human Resources THE « CORPORATE » PROJECT TEAM CorporateCountry Ambassadors Company Messengers Site Relays

5. 5 Human Resources THALES SHARE SUBSCRIPTION PRICE Reference price = Average of opening share price for the 20 trading days: 27 March  23 April Acquisition price = Reference price – Discount (20 % or 15 %) For countries in non Euro zone : exchange rates will be fixed for the whole subscription period until payment is made.

6. 6 Human Resources An average share price is calculated : recording the closing Thales share price every 15 days over 5 years, making a total of 120 recorded prices It is protected : any fall in the Thales share price below the reference price will not affect the calculation, the selected price will be equal to the reference price. Protected average rise = Protected average share price – reference price >> How is the average protected rise calculated ? “SHARE PLUS” FORMULA

7. 7 Human Resources CLASSIC SHARE Personal contribution = €500 Reference price: €40 Discount price (-20%) = €32 SHARE PLUS Personal contribution = €500 Reference price : €40 Discount price (-15%) = €34 SIMULATION A simulator is available to help you make your choice and allocate your investment over the 2 formulas. Share price variation Share price at maturity Value of your assets Variation of your assets 30%52 €812,5062,5% 20%48 €750,0050,0% 0%40 €625,0025,0% -20%32 €500,000,0% -30%28 €437,50-12,5% Share price variation Protected average rise Share price at maturity Value of your assets Variation of your assets 30%6 €52 €947,4089,5% 20%4 €48 €827,7065,5% 0%2 €40 €649,129,8% -20%1 €32 €530,46,1% -30%0 €28 €500,000,0% In this table the multiple used for the calculation is 2.07

8. 8 Human Resources SIMULATOR To simulate your investment (French or English) Combine your personal contribution in both formulas Simulate your assets in 5 years The simulator helps you to make sure that you do not exceed the contribution limit of 25% on your gross annual remuneration Your personal contribution in 1 or 2 formulas Your gains/losses in 5 years

9. 9 Human Resources THE FRAME: THE GROUP SAVINGS PLAN FCPE or Fonds Commun de Placement d’Entreprise is a a co-ownership of securities (including shares) It can be made up of compartments that correspond to different investment formulas Each participant owns FCPE units that represent his/her assets The FCPE is governed by a Supervisory Board The voting rights attached to the shares are exercised by the Supervisory Board A Group Savings Plan is a collective savings system, at the group level, that allows each subscriber to build, under preferred conditions, a Thales shares portfolio

10. 10 Human Resources FCPE & COMPARTMENTS FOR 2008 Actions Thales FR World Classic INTL Thales Actionnariat Salarié Netherlands Classic Thales Netherlands (special supervisory board) Funds Compartments Netherlands Action Plus 2008 Action Plus 2008 Italy Classic Thales Italy (individual voting rights & dividend directly paid) Italy Action Plus 2008 CLASSIC SHARE R R R R Via bridge funds R SHARE PLUS

11. 11 Human Resources TAX & LEGAL Taxation may happen at 3 steps Discount Free interest loan Gain Dividends UP FRONT DURING 5 YEARS AT MATURITY * * Or selling

12. 12 Human Resources SUBSCRIPTION LIMIT Payments in the Group Savings Plan cannot exceed 25% of your gross annual remuneration These include: your personal contribution under the Classic Share formula + your personal contribution multiplied by 4 under the Share Plus formula + (for France only) other contribution in other savings plans

13. 13 Human Resources CASES OF EARLY REDEMPTION In case of important events in the employee’s life, his/her assets can be totally or partly released during the lock-in period. 9 cases Marriage Birth or adoption of a 3 rd (and subsequent) child Divorce with at least part time custody of one child Disability of employee, spouse or child Death of the employee or spouse Establishment or acquisition by employee or spouse of a business Acquisition, building or extension of main home Termination of employment contract Over indebtedness of employee

14. 14 Human Resources IF DEMAND EXCEEDS SUPPLY ? CLASSIC SHARE : Allocated in priority SHARE PLUS: max 2 M Scaled-back in priority 1 / Classic Share oversubscription Classic Share is reduced to 3.5 M & served in priority So no Share Plus available 2a / Share Plus oversubscription & Classic Share subscription < 1.5 M Classic Share served in priority Share Plus reduced & served down to 2M 2M 1.3M 1M 2.5M 2b / Share Plus oversubscribed (2.1m) & Classic Share subscription > 1.5 M Classic Share served in priority (2.5M subscribed in this ex.) Share Plus “over-reduced” & served on the remaining shares available (1M) NB : Scale-back begins with the highest applications progressively until the maximum number of shares allotted to each formula is reached NB : 3.5M shares available for the total offer

15. 15 Human Resources INFORMATION KIT The Subscription pack sent to each employee includes: 1 brochure on Thales Group 1 brochure on the 2008 offer 1 reservation form 1 cancellation form 1 country addendum The following are available on request: Information notices for the FCPEs

16. 16 Human Resources How to cancel ? How to subscribe ? How to pay ? How to be informed ? Help, I need somebody’s help… CHRONOLOGY

17. 17 Human Resources The amounts you want to subscribe HOW TO SUBSCRIBE ? Complete the reservation form with the help of the brochure 1 1 2 2 2 3 3 The payment method chosen for each formula Do not forget to date and sign the form Attach the documents required for subscription Submit all of the above, in the return envelope included in the subscription pack.

18. 18 Human Resources HOW TO CANCEL MY SUBSCRIPTION ? After the acquisition price is announced on the 24 April, you can cancel your reservation from 24 to 28 April 2008 Cancellation for the whole of one or other formula, or for both Fill in & FAX your cancellation form included in your subscription pack Possible online cancellation in France and Germany If no cancellation, the subscription becomes final and irrevocable

19. 19 Human Resources HOW TO PAY AND GET THE SHARES ? In each of the 2 formulas, you can finance your personal investment: Either by a single payment in June 2008 Or in 12 monthly instalments, without fees, starting in June 2008 The exchange rate In the countries outside the Euro zone, the Euro/local currency exchange rate will be fixed on payments and guaranteed from the date the subscription price is set up until the subscriber has paid his/her contribution in full Shares delivery & first payment 7 th of May 2008 (share delivery) June 2008 payroll

20. 20 Human Resources During the offer… Information staff meetings Information kit sent directly or through HR Subscription statement sent early May informing you on the number of FCPE units allocated to you, their ability date, the amounts and the payment dates HOW TO BE INFORMED ? After the offer… Yearly reporting from Creelia + Creelia internet website and call centre overview of your assets (number and value of units) Contact Creelia for any movement on your assets A support of Thales Employee Share Team is also available

21. 21 Human Resources MY QUESTIONS BEFORE SUBSCRIPTION… ? Can I afford to invest ? What sort of performance can I expect ? What level of risk am I willing to accept ?

22. 22 Human Resources YOUR CONTACTS DURING SUBSCRIPTION To help you: See your Company Messenger or Site Relay The dedicated tab on the Group intranet Dedicated telephone number, HBOS (020 8409 2629 or 020 8676 2571). E-mail: Thales-ess@hbosees.com To help you: See your Company Messenger or Site Relay The dedicated tab on the Group intranet Dedicated telephone number, HBOS (020 8409 2629 or 020 8676 2571). E-mail: Thales-ess@hbosees.com

23. 23 Human Resources YOUR CONTACTS AFTER SUBSCRIPTION To help you: HBOS for UK CREELIA for most countries Thales Employee Share Team

24. Human Resources 2008 Employee Share Plan Thank you for your attention…