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Lettre-avril-2004-GB.qxd 27/05/04 17:47 Page 1

Letter to our Shareholders April 2004

SUMMARY

● Highlights 2003 Annual Results (p.2) ● Filipacchi Médias A Royal Audience; The Analyst’s Couch…; Elle à Table (p.3) ● Hachette Livre The Annual Fair; Bleue Series Celebrates 10 Years of ; Launches (p.4) ● Hachette Distribution Services Launch of Virgin L’hebdo; 33rd Virgin Megastore (p.5) ● Lagardere Active MCM to the Third Power; An Audience for Mezzo; In Brief (p.5) ● Group Going for Gold; the Jean-Luc Lagardère Foundation (p.6) ● EADS 2003 Annual Results; Earth and Sky (p.7) ● Shareholder’s Notebook (p.8) “Where there's a will, we pave the way”

EDITORIAL

Continued refocusing in the field of the media Since the beginning of 2004, business has been rather and improvements in the profitability of Lagardère Media uneventful, with the exception of significant growth in advertising revenue from radio and theme channels. As promised, we are taking the opportunity of this new Letter Generally speaking, visibility remains mediocre, preventing to provide you with an update on the progress of the the anticipation of different trends over the coming months, (formerly Universal Publishing) acquisition. due to the prevailing uncertainties about when and how an economic recovery will take place. An important milestone was passed in January when the For this reason, the forecast growth in operating profits for European Commission gave Lagardère the authorization to Lagardère Media in 2004, excluding the effect of the assets retain some of Editis’ prize assets, in terms of both retained from Editis, are based on two different scenarios: profitability and development potential: Larousse, , Dunod and in , and Anaya in . These > +2% to +6% if the economic environment remains stable, acquisitions have enabled Lagardère to become the leading with a euro/dollar parity of approximately 1.20; publisher in both of these countries. > should a return to growth in the business be confirmed in The process of disposing of the remainder of Editis’ assets the second half of 2004, the growth rate could exceed 6%. commences in spring 2004, and should be completed by the end of the year. Lagardère’s main criterion will obviously be To make sure these objectives are met, the cost cutting plan the interests of its shareholders. will be continued. In the medium term, objectives have been fixed in terms of Lagardère Group has published its results for 2003. Once operating margins for each of the media businesses: again, the objectives set a year previously have been surpassed: Lagardere Media’s operating income increased by > Press 12% (compared to 9.7% in 2003) 11%. Even better, the cash flows generated by operations in > Book 12% (compared to 11.1% in 2003) the media business increased by almost 43%. Net income > Lagardere Active 10% (compared to 4.7% in 2003) amounted to €333.9 million, and the ratio of debt to equity > Distribution & Services 3% (compared to 2.1% in 2003) was reduced to 21.3%, compared to 45.3% at June 30, 2003. Throughout the duration of the term of office of the In conclusion, the Group is now in possession of managing partners (6 years), which comes to an end in May, growth potential that it is more determined than ever to turn Lagardère Media’s profitability (operating income) showed an to profit. annual rate of improvement of over 11%.

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HIGHLIGHTS 2003 Annual Results

Sales by business segment Operating income by business segment

Lagardère Media‘s Operating Income up 11% to € 427 M Consolidated Net Income € 334 M

STABLE CONSOLIDATED REVENUES AT € 12,454 M ● Consolidated operating income totaled € 671 M, up from (1) ● Lagardère Media’s revenues grew 2.1% on a like-for-like € 433 M in 2002. basis at € 7,944 M, buoyed by each of the businesses, especially the «Book division». INTEREST INCOME AND NON-OPERATING INCOME ● EADS’s net revenues up 3.9% to € 4,510 M. ● Interest income reached € 42 M (up from an interest expense of € 368 M on the 2002 pro forma). Excluding the EADS STRONG GROWTH OF 11% IN LAGARDERE MEDIAS’ OPERATING contribution and other non recurring items, net interest INCOME expense improved slightly (€ 59 M versus € 61 M in 2002). ● Lagardère Media division posted operating income of ● The group recorded a non-operating loss of € 79 M, € 427 M, up 11% over 2002, representing an operating principally due to the restructuring of EADS’s “Space” business margin of 5.4%, up from 4.8%. and to a depreciation of intangible assets related to Virgin. The “Book” division again turned in an excellent performance in virtually all publishing segments with an operating margin NET INCOME of 11.1% compared with 9.6% in 2002. Group Net Income increased sharply to € 334 M(2), compared “Lagardere Active” division continued to improve due to the to a loss of € 291 M in 2002. good performance of the “Television” businesses, particularly TV production, and a firm “Radio” advertising market during DEBT UNDER CONTROL the second half of 2003. Based on € 4,136 M of shareholders’ equity as of December 31, “Distribution Services” division grew its operating income 4.2% 2003, and net debt at € 882 M, the Group’s gearing decreased despite a difficult economic environment in terms of air traffic to a rate of 21.3% from 45.3% as of June 30, 2003. and tourism, and in spite of the development cost of the «Virgin Megastore» network in France. DIVIDEND “Press” division improved its operating income and again its The Company’s managing partners decided to propose at the margin (9.7% versus 9.1% in 2002). General Shareholders Meeting a net dividend of 0.90 € per ● EADS’ contribution to LAGARDERE’s consolidated operating share (plus a tax credit of 0.45 €), i.e. a 10% increase income increased sharply to € 232 M, due to the improvement compared to prior year. This resolution proposal reflects the in its profitability and to the appreciation in the average dollar strong balance sheet and the confidence in the future of hedge rate. LAGARDERE Group.

(1) Pro forma operating income excluding the Automotive division, which was deconsolidated effective January 1, 2003. (2) Excluding EADS, net income for LAGARDERE in 2003 was € 263 M, up from a loss of € 262 M for the previous fiscal year. On a like-for-like basis, i.e. after neutralizing the non-recurring impacts of Automobile and T-Online (depreciation and capital gains tax accrual adjustments), as well as intangible asset depreciations, adjusted net income amounted to € 215 M vs. € 188 M in 2002.

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HACHETTE FILIPACCHI MEDIAS A Royal Audience © Hachette Filipacchi © Hachette

Hachette Filipacchi Espagne has Celebrated its 20th Birthday

King Juan Carlos I hosted Hachette Filipacchi’s executive production, management and publishing, in conjunction with committee in the Zarzuela Palace on March 4, to celebrate the the Universidad Pontificia de Salamanca. Hachette Filipacchi 20th anniversary of Hachette Filipacchi Espagne (HFE). The is now the top publisher of magazines in Spain, with 23 titles. delegation, led by Gérald de Roquemaurel, HFM’s Chairman One third of all magazine readers in Spain read a Hachette and CEO, and Juan Caño, Hachette Filipacchi SA’s editorial Filipacchi title. Vice-President, told the King about plans for several initiatives HFE plans to add two new magazines to its stable in the next to highlight the anniversary. One of the biggest is the creation few months. of the first university master’s program in magazine IN BRIEF

Best Magazine Covers The Analyst’s Couch… Several HFM titles took prizes at the 8th annual Best Magazine Cover Awards, HFM and Psychologies magazine Reach sponsored by France Rail an Agreement Publicité. Out of a field of more than 400 nominees, Elle (05/05/2003) won second Gérald de Roquemaurel and Jean-Louis Servan-Schreiber, prize for Best Cover of 2003 director of Psychologies magazine, signed a framework for its issue featuring agreement in late 2003 to collaborate on the development of Emmanuelle Béart; TV Hebdo, a second-time winner, took foreign editions of the publication. the Best Cover of 2003 in the Psychologies magazine is quite a success story: in five years, The agreement gives HFM’s TV-Radio category; and Elle à the magazine’s paid circulation total jumped from 75,000 to international subsidiaries preference in Table (April 2003) took first 285,000 copies – the fastest rate of circulation growth in any launching titles inspired by Psy- place in the Cooking and Wine category. segment of the French press! According to AEPM, an chologies magazine in countries where independent press circulation/distribution auditing company, HFM has a publishing subsidiary. HFM HFM the magazine’s 22% increase in readers in one year is the will be responsible for publishing and relaunches Ohla! strongest of any such publication, while its advertising managing new titles, while Psy- Since last January, as part of a revenues soared 42% in 2002. The success of Psychologies chologies magazine will train editorial joint-venture set up for the purpose, HFM and Spanish magazine in France suggests that its formula could also be a staff, oversee the quality of content, publisher HOLA SA have been winner in many other countries where HFM has a solid and provide access to its databank of working together to enhance foothold. articles and subjects. the editorial contents of the magazine Hola! The editorial focus has been geared more towards investigative documentary, by developing Appetizing principally the Celebrity, Cultural and Women’s th aspects. The new version, Elle à Table Celebrates its 5 Birthday which will sell for € 2, appeared on the newsstands Elle à Table was Elle weekly’s second spin-off, following the on April 7, at a special launch of Elle Décoration in 1987. Just entering its sixth year of introductory rate of €1.50. publication, Elle à Table now publishes five international editions in Sweden, , Holland, , and . The fax success of the bimonthly, which was created in 1999, is growing. 1,140,000 readers, a total readership increase of 4%, plus paid The Elle.fr website has circulation of 144,386 in France, up 8% – the biggest jump in its a new look. category. Elle à Table both sets the standard and breaks new ground, taking a consistently modern, unique approach to the New layout, new size, new 1001 aspects of cooking, the table arts, and entertaining. The regular features: Bon Voyage christened a new format magazine’s recipe for success? A simple, user-friendly style, beginning with its modern cooking that stresses the use of quality ingredients. February issue.

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HACHETTE LIVRE A Event FAX In Livre de Poche news: Patrick Poivre d'Arvor won the 2003 th 24 Annual Book Fair readers's prize for Un enfant and Vincent Egel was awarded the Choix des In honor of France’s “Year of China”, the libraires's prize for Retour à th 24 Annual Book Fair, organized under Montechiarro. the aegis of the Syndicat National de l’ (Professional Organization of The Routard.com website has French Book Publishers), showcased a new look.

Chinese literature this spring. Visitors Didier Jeunesse has a new were free to seek out any of 1,200 , Mirliton, which publishers – over 250 of them from 20 invites readers to explore the different countries – in a 55,000 sq. m poetry of colors in four illustrated . exhibition area. Hachette Livre, France’s leading publisher, was obviously among The first Trophées du Routard them, represented at the stands of its awards will honor different publishing houses. Arnaud Left to right: Arnaud Lagardère, Jean-Jacques Aillagon, Jacques Chirac, Serge Eyrolles and Pierre Leroy. humanitarian and community service work carried out by Nourry, Chairman and CEO of Hachette Committee for the occasion. Virgin also exhibited at the show, teams of two people, in Livre and various other publishers in the Espace Futurs Imaginaires (Imaginary Futures Section). France or abroad, during the hosted Arnaud Lagardère and members will be guest of honor at the exhibition’s 25th event to summer of 2004. of the Lagardère Media’s Management be held from 18 to 25 March 2005. Publishing house Gaia Books has been acquired by Octopus, a Hachette Livre Editis subsidiary in Great Britain.

On 7 January, 2004, Lagardere received in their different specialties, thanks to their EU antitrust approval for pur- complementarities, international presence and strong IN BRIEF chasing approximately 40% of Editis development potential. This acquisition makes Lagardere consolidated revenue, in line with its the No. 1 book publisher both in France and Spain, and at December 2, 2003 proposal. As a result, the same time will allow Lagardere to recover its invest- Hachette Livre becomes No. 6 ment capacity. worldwide (No. 11 before the Editis Lagardere has begun a period where it will review the bids transaction) which illustrates the for the Editis properties that will not be retained. In its offensive strategy of Lagardere Media in shareholders' interest, Lagardere will favor a one block Book Publishing. Larousse, Anaya, sale solution. Dalloz, Dunod, Armand Colin, Lagardere is keen to stress the excellent working relationship and Harrap will strengthen Hachette that prevailed all along the investigation with Commissioner Livre and more broadly Lagardere Media Monti and his teams. Cracking the Code The works of Leonardo de Bleue Series Celebrates 10 Years of Publishing Vinci, the Priory of Sion, Opus Dei, and the Holy Grail: On the occasion of the birthday of the Bouraoui, including Christine Angot or Philippe welcome to Dan Brown’s Da Bleue Series, created in 1995 by Jean- Claudel, each of the writer has unburden himself Vinci Code, published by Lattès. The novel, which has Marc Roberts with , et since 5 intimately about their passion for writing. The "Dix topped US lists for years with , 16 writers talk about Ans Sous la Bleue" book is offered in bookshops until almost a year (4 million copies how they first came to work with Bleue. December, 2004(*) to anyone who buys any title in sold!), has been published in Ranging from Eric Orsenna to Nina the series. 35 countries and will soon be (*) within the limits of the available stocks made into a movie. Dan Brown’s fourth book takes Launches readers on a non-stop (in)quest, from the Louvre to Several news with Hachette In other news, Oui-Oui has new graphics in 3D, and Westminster Abbey, in an attempt to crack a millennia- Jeunesse at the beginning of the six Caroline comic books are being republished old secret behind the origins th year: a collection, Les Contraires, with new covers, for the occasion of its 50 of Christianity… and a character named Stanley. The anniversary. Furthermore, the éditions two debut titles of the Contraires publishing house has launched Citoyens en Herbe collection, Jour/Nuit and Dessus/ [Budding Citizens], a new collection designed to Dessous, encourage children to look at introduce kids aged five and up to “serious issues animals in a new light. Upcoming titles through ”. The first two titles are Silence la include Passé/Présent and Chaud/Froid. violence and Vive le civisme!

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HACHETTE DISTRIBUTION SERVICES A Brand-Name Magazine

Virgin L’hebdo Debuted in February

Virgin Megastore has created an event with its publication of “the first general-interest cultural weekly”: Virgin L’hebdo (“hebdo” is short for “hebdomadaire”, French for weekly). The 24-page tabloid-size magazine has a print run of 150,000 and is seen by about 400,000 readers per week. It has been distributed free of charge each Wednesday in all since confronted with a range of almost February, replacing the Virgin Megapresse monthly. Virgin has 100,000 new choices every year. The opted for a practical, easy-to-read, comprehensive publication editorial staff’s national picks are not in IN BRIEF that surveys and reports on the release of all types of cultural any way influenced by advertising or by products – including musical recordings, books, DVDs, and Virgin Megastore’s decisions regarding TimesNewsLink multimedia – to serve the Megastore customer, who is which products to feature. In late 2003, a Satellite Newspaper Kiosk opened at a TimesNewsLink retail rd The 33 Virgin Megastore Opened in France outlet in Singapore Airport. The system allows Virgin’s brand-new 1,500-sq.m Megastore, located in the Galerie Commerciale Alliance in Archamps, customers to choose their Haute-Savoie, located 20 minutes from Geneva. The two-storey Megastore offers more than favorites from among more than 120 national and 65,000 products. international titles published that day, and then to print LAGARDERE ACTIVE MCM to the Third Power copies on demand. HDS RNA The second Virgin store in a A Unique and Exclusive New Offer on CanalSatellite Canadian airport and the third in At the end of 2003, the MCM family welcomed which is 34% owned by opened its doors in a pair of new channels to its multiplex Lagardere Active. MCM December at Winnipeg International Airport, combination christened MCM Music+. Top broadcasts videos of . Premium channel MCM’s new baby sisters today’s hits on channel are called MCM Top and MCM Pop. Through 101, while MCM Pop, an offer unlike any other in Europe, formerly MCM 2, plays FAX

available to all subscribers (2.2 million the best tracks from the In , HDS Polska, an households per channel), the spin-offs round 80s through to today on HDS subsidiary, now has a out the “musical landscape” of CanalSatellite, channel 102. network of over 200 stores.

An Audience for Mezzo According to the 6th wave of the MédiaCabSat survey 2003 (audience survey started on (September 2003/February 2004), Mezzo, the Music Channel September 1st), as the leading Music that broadcasts classical, jazz and world music, has found an Channel in its field. Mezzo is also the audience: the “weekly coverage 4 year olds and over” category number one music channel in Europe, increased significantly for the first time, by 52%. These results with over 10 million households illustrate the new dynamics at Mezzo, initiated in October subscribing in 25 countries.

IN BRIEF

TV’s Big Winners in 2003 Made-for-TV movies produced by Lagardere Active The Météo Weather Channel Renews its Maritime Weather Topic production studios pulled in 12 of the top 32 audience ratings in 2003, according to Médiamat Since December, the Météo weather channel has been offering a renewed version of its and Médiamétrie surveys! France 5’s two highest ratings for 2003 were earned by the Maritime Weather topic in order to meet the expectations of the profession and of sea December 15 episode of the newsmagazine C dans l’air and the October 19 edition of the lovers: details of pressure centers on isobar maps and weather forecasts for the next 36 newsmagazine Ripostes: Menaces sur la laïcité with more than 1.8 million viewers. hours, the state of the sea, the force and direction of the wind and a map of the dominant MédiaCabSat Results March 2004 winds. The Maritime Weather forecast is broadcast every half hour from 7:30 to 10:00 and > : leading kids’ channel for the 4-10 and 4-14 age groups; number three theme from 13:00 to 21:00. channel for all audiences taken together. The Henri Tézenas du Montcel prize, which honors the best radio business > TiJi: number two kids’ channel for the 4-10 and 4-14 age groups. Global leaders: Canal J and reporter, went to ’s Axel de Tarlé in 2003. Tiji confirm their leadership, far ahead of their rivals, across the whole spectrum of cable Lagardère Images International and the Qatar Foundation for television, CanalSatellite and TPS. Education and Sciences will launch a pan-Arab entertainment and An impressive performance for Lagardere Active’s youth channels. educational channel for kids in late 2004. P 05 Lettre-avril-2004-GB.qxd 27/05/04 17:47 Page 6

OLYMPIC GAMES Going for Gold

Michel Derbesse (Bouygues), René Carron IN BRIEF (Crédit Agricole), François Roussely (EDF), Thierry Breton (France Télécom), Arnaud As part of the events Lagardère (Lagardère) and Louis organized to celebrate Schweitzer (Renault), met on March 1, the 50th anniversary of joined by Bertrand Delanoë, President of his famous appeal made the Public Interest Group 2012, and in February 1954, Abbé Pierre gave Payot the © Hubert Fanthomme / © Hubert Fanthomme Philippe Baudillon, Chief Executive honor of a special book- Officer of Paris 2012. At the meeting, the signing session in their eight companies agreed to provide the bookshop on the Left equivalent of 12 million euros in backing Bank in Geneva on March 2nd. for Paris’ Olympic bid. Arnaud Lagardère, the association’s Calmann-Lévy published Left to right: Michel Derbesse, Jean-Marc Espalioux, Thierry Breton, Arnaud Lagardère, Bertrand Delanoë, Philippe Baudillon, Anne-Marie Idrac, René Carron, Louis Schweitzer and François Roussely. President, emphasized that such support in March Lettres à Dieu represents “a vital factor in the bid’s [Letters to God]. This anthology, French Companies Join Forces for Paris 2012 success. We want to prove to the with a preface by International Olympic Committee that René Guitton, features Eight major French companies: Accor, Bouygues, Crédit France’s economic community is 100 letters to God Agricole, EDF, France Télécom, Lagardère, RATP and Renault, motivated by this project and committed written by international celebrities. recently met at Paris 2012’s Club des Entreprises association to Paris’ victory. We can offer our sales Royalties will be to raise funds for Paris’ 2012 Olympic bid. networks and our “savoir-faire” in areas donated to Adicare, The association’s first board of trustees, which comprises such as marketing, as well as fin- a charitable association. Anne-Marie Idrac (RATP), Jean-Marc Espalioux (Accor), ancial backing.” FAX

Relais H recently opened FOUNDATION New Goals stores at the Lorient hospital center and the university hospital centers of Caen-Cote de Nacre and Bordeaux (at the Tripode site).

The Jean-Luc Lagardère © Jacques Grison /Rapho © Jacques Media was The Hachette Foundation Becomes the Jean-Luc Lagardère Foundation inaugurated in December in Rio de Janeiro, , in a ceremony attended Carrying on from Jean-Luc Lagardère’s support of the subsidiaries and their employees, in by Richard Barbeyron, Hachette Foundation over the last 14 years, Arnaud Lagardère both the media and high-technology France’s Consul General. kicked off the evening of the annual ceremony of the Hachette fields, while retaining certain traditions, Located in the Colégio Pedro II, the 260-sq.m Foundation grants by presenting a film tribute, made by chief among them the Hachette grants. French-language media Image et Compagnie under the direction of Serge Moati, The Foundation will be a permanent library houses four recounting the life of his father. Arnaud Lagardère has taken organization and will pursue new goals sections: a library with up the torch, promising that the Foundation “will survive Jean- meant to embody, in spirit and in fact, over 6,500 books, Luc”. To underscore the strong, symbolic sense of continuity, Jean-Luc Lagardère’s values of indepen- an image collection, an information he has decided to rename the Hachette Foundation the Jean- dence, boldness, steadfastness, and technology section, Luc Lagardère Foundation. “Our new Foundation will unite our creativity.” and a reception area.

Capital Photos On May 1, the European Union will welcome 10 new Member will be exhibited along the Champs- States: Cyprus, Estonia, , Latvia, Lithuania, Malta, Elysées on billboards that are being used Poland, the , and Slovenia. With the as part of an art installation for the first support of the European Commission, JC Decaux and the time. The capital exhibition invites us to Association Française d’Action Artistique, the Paris mayor’s take a stroll through Europe, stopping to office teamed up with the Jean-Luc Lagardère Foundation to ask ponder the poetic mystery of Prague, the 10 young photographers, winners of the Foundation’s Hachette northern lights of Tallinn, the diverse scholarships, to train their lenses on the new members’ capital architecture of Bratislava, Riga’s acrobatic cities. From April 28 to May 13, a selection of 50 photographs circus and much more…

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EADS 2003 Results: Exceeding Targets

The European Aerospace Group Presented its Annual Earnings on March 8

EADS significantly exceeded its targets again in 2003. Its The figures for 2003 are a direct result of our relentless efforts, EBIT(*) of 1.54 billion euros, an 8% increase over 2002, far since EADS was founded, to streamline and unite the company, surpassed its goal of approximately 1.4 billion euros, thanks to together with the market’s keen interest in our products. strong growth in its defense business and a better-than- Despite a tough economy in 2003, we have, once again, projected performance by Airbus. EADS owes its higher EBIT to exceeded expectations.” The co-CEOs then added, “We are at a a 40% growth spurt in its Defense Systems and Security decisive turning point, which will lead to stronger growth in the division, which received strong assists from Military Airplanes medium term. The recovery in the commercial aviation market, (fighter planes) and MBDA; the recovery in its Military expected for 2005, is in sight; the Space division will begin Transport Airplanes division; and a 21% jump in the reaping the benefits of its restructuring and defense contracts Aeronautics division as Eurocopter’s profitability soared. The will continue to be a growing part of our business.” Space division posted an EBIT of - 400 million euros, as EADS doubled its new orders in 2003, to 61.2 billion euros vs. projected, after deduction of a restructuring charge of 288 31 billion in 2002, or twice its sales. Its order book has million euros. expanded to a total of 179.3 billion euros against 168.3 billion EADS’ sales slightly exceeded the 29-30 billion euro forecast, in late 2002. Had exchange rates been stable, the increase representing an increase over the 29.9 billion euros it posted would have been around 20%. in 2002. If the exchange rate for the US dollar had remained EADS is raising its EBIT target for 2004 to about 1.8 billion stable, sales would even have climbed by 6%; defense was the euros, instead of the 1.7 billion euros announced, because of main growth engine, at +18%. Pre-customer financing cash the early implementation of the IAS 38 accounting standards. jumped from 0.6 billion euros in 2002 to 2.1 billion euros in Sales in 2004 are expected to be stable overall, based on an 2003. Net earnings, which came to 152 million euros exchange rate of 1 euro = 1.20 dollar. compared to -299 million euros in 2002, put EADS back in the In addition, Airbus plans to make almost 300 deliveries in 2004, black. and EADS expects contracts for new orders to top sales for a As EADS‘s CEOs Philippe Camus and Rainer Hertrich see it, third year in a row.

“EADS is now the leader in the commercial aviation market (*) EADS uses EBIT, which stands for Earnings Before Interest and Taxes, as its primary indicator of financial and ranks among the top players in the global defense market. performance.

Sky and Earth Airbus: the sky route March 18, 2004 in Hamburg. Celebrations at the

© Photos Airbus © Photos Hamburg-Finkenwerder airbus plant: the first main section of the first A380 is ready to be transported to France to be assembled with other components at Toulouse. The various parts of the first A380 will arrive at the “Jean-Luc Lagardère” hangar, the final assembly line for the A380 at Toulouse, which will be officially inaugurated on May 7, 2004.

Eurofighter versus Ferrari An unusual race took place in Italy in December. Michael Schumacher, the six-time Formula 1 world champion, faced off against Maurizio Chelli, astronaut and test pilot for the Eurofighter. Three races, covering 600, 900, and 1,200 meters, pitted the Eurofighter Typhoon IPA2 against a Ferrari F2003- GA in honor of the 100th anniversary of the Wright brothers’ first flight and commemorating the 50th anniversary of the death of the famous Italian racecar driver, Tazio Nuvolari. The Eurofighter took two out of three of the races – the 900 and 1,200 meters – in this highly unusual contest. © EADS

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SHAREHOLDER’S NOTEBOOK

Lagardère Share

LAGARDERE relative to the CAC 40 and DJ STOXX MEDIA (from 1st January, 1999 to 16 April, 2004)

(*)

(*) 100 Base at 1st January, 1999

Stock Market Stock Market Paris / Premier Marché - SRD ISIN Code FR0000130213 (*) Since 1st January, 2004 High (*) € 50.45 Low (*) € 45.55 (**) Average from January to March, 2004 Number of shares at 1st January, 2004 139,617,199 € Market Capitalisation ( billion) 6.98 (***) voted by General Shareholders Average daily trading (**) 694,315 Meeting on May 11, 2004 Dividend for 2003 (***) (paid on May 19, 2004) Net : € 0.90 / Tax Credit: € 0.45 / Gross: € 1.35

Upcoming events Shareholders Consultative Committee ▲▲ General Shareholders Meeting ▲▲ With regards to the part renewal of the Shareholders Tuesday 11 May, 2004 – Carrousel du Louvre Consultative Committee, new three members were selected: Messrs Patrick Badoy, Serge Blanc and Jean For further information, Guérin. please go to: http://www.lagardere.com/us/ag2004 The last meeting of the Committee was held on 9 April, 2004. The next meeting will be held in September. Meetings with individual shareholders Monday 10 May, 2004: Nice Contacts: Centre d‘information des actionnaires de Lagardère SCA Thursday 13 May, 2004: Marseille 121 avenue de Malakoff Tuesday 29 June, 2004: Annecy 75216 Paris Cedex 16 Tuesday 14 December, 2004: Nancy Telephone: 33.1.40.69.20.73. Internet: http//www.lagardere.com/us Financial Information: http//www.lagardere.com/us/finance E.mail: [email protected] imprimé par OTT imprimeur imprimé par OTT

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