Press release

FRANCE TELECOM AND TPS LAUNCH DIGITAL TELEVISION OVER TELEPHONE LINES

France Télécom and TPS (TF1: 66% - M6: 34%) have signed a strategic agreement which will enable TPS to offer digital television services using ADSL technology over France Télécom’s network from December 2003.

ADSL technology makes it possible simultaneously to phone, connect to broadband internet services and receive the TPS platform of channels, provisionally named TPSL, as well as programmes-on- demand and interactive services.

All customers will need to do to receive TPSL will be to take out a video access subscription from France Télécom (ADSL video access and terminal set connected to the television) and select one of the packages offered by TPS. Programmes-on-demand will be offered by France Télécom using the ‘kiosk’ model already familiar to Minitel users.

These new services from France Télécom and TPS will be launched in Lyon in December 2003, and then in Paris in the spring of 2004, before gradually being rolled out to other French cities. They will be available through approved outlets, such as specialist stores, department stores, installers and France Télécom shops.

Thierry Breton, CEO of France Télécom, stated, "This agreement with TPS is a concrete example of France Télécom’s strategy of forging industrial partnerships that will benefit its customers. It represents a major innovation in extending the use of broadband connections beyond the internet and in developing new ways of distributing audiovisual content. It has been made possible by the quality of our networks and by the technical expertise that France Télécom has gained in the area of image transmission, an area which offers substantial growth potential, particularly for fixed-line telephone services".

Emmanuel Florent, CEO of TPS, added, "This industrial partnership will allow TPS to move a step forward in its expansion. At present, some 90% of TPS’s satellite subscribers live in detached houses. Using ADSL will give TPS better access to people living in city centres or apartment blocks, representing some 10 million households. Eventually, all French television viewers, whether they live in towns or the country, in a block of flats or a detached house, will be able to enjoy TPS’s television services, which offer the major general-interest national channels, the TPS Star premium channel, cinema channels, major sporting events and a range of thematic channels".

France Télécom will be responsible for the technical aspects of distributing TPS channels over its network, and for security and rights management through its Viaccess access control system. TPS will be responsible for subscriber management.

France Télécom and TPS will reveal further details on the new service over the next few weeks.

About France Télécom:

France Télécom, one of the world’s largest telecoms operators, serves 113 million customers in five continents (220 countries and territories) and had consolidated sales of 46.6 billion euros in 2002 (22.9 billion euros in the six months to 30 June 2003). Through its portfolio of internationally recognised brands, such as Orange, Wanadoo, GlobeCast and Equant, France Télécom offers a full range of telecommunications services: local and international calls, mobile services, internet and multimedia and data transmission.

About TPS:

Launched on 17 December 1996, TPS (Télévision Par Satellite) had 1,192 million subscribers at 30 June 2003 and now broadcasts more than 200 channels and services with digital quality. It is the exclusive digital provider of the national channels, has seven exclusive cinema channels including the TPS Star premium channel, offers 308 Premier League soccer matches per season, a range of other sports coverage, thematic channels for all the family (TF6, Télétoon, Odyssée, , etc.), as well as à la carte TV, practical and fun interactive services and CD-quality radio stations. Acting as a commercial distributor, producer of channels and services and fully-digital broadcaster, TPS is a complete service provider, with the full range of expertise required in the digital TV field.

Press contact France Télécom: Nilou du Castel: +33 1 44 44 93 93 Press contact presse TPS: Virginie Halleux-Leprince: +33 1 41 33 88 18

* ADSL : Asymmetric Digital Subscriber System