PARIS -- The Iliad Group and the European Investment Bank (EIB) announce a EUR 200 million operation to financethe rollout of next generation fixed networks. The loan agreement was signed on Monday 27 August 2012 byXavier Niel, Founder of the Iliad/Free Group, and EIB Vice-President Philippe de Fontaine Vive Curtaz, atthe Iliad Group’s headquarters in Paris. This agreement follows on from a first EUR 150 million loanagreement signed by the EIB and the Iliad Group in 2010.

This loan will support Iliad’s drive to roll out its next generation networks throughout France: 65% of thefunds will be earmarked for the deployment of fibre optic networks based on FTTH (Fibre to the Home)access technology. It will also enable the Iliad Group to extend the reach and capacity of its ADSL2+ networkand promote unbundling. There will be a particular focus on less densely populated areas of the countryunder a cofinancing agreement signed with the incumbent operator in July 2011 designed to reach around60 towns and villages.

EIB Vice-President Philippe de Fontaine Vive underlined the operation’s importance: “Innovation and supportfor advanced information technologies are one of the EIB’s top priorities. Our goal is to foster thedevelopment of a competitive European economy based on the knowledge triangle of education, researchand innovation. We are therefore delighted by this partnership with Iliad, a key player in the digital revolutionin France. The inhabitants of small towns and villages will benefit in particular from this operation.”Xavier Niel, Founder of the Iliad/Free Group, added: “We welcome this partnership with the EIB, which willenable the Iliad Group to press ahead with the rollout of the digital fixed networks of tomorrow andstrengthen its key position in France’s telecom’s sector”.

Iliad (Euronext: ILD)