PARIS -- France Telecom today announces its final financial results for 2006. These are in line with the unaudited preliminary figures published on February 1, 2007.

2006 results slightly ahead of objectives

Organic cash-flow of 7.15 billion euros, higher than the stated objective of 6.95 billion euros (adjusted to only include PagesJaunes Groupe until the date of its sale)

Gross Operating Margin of 18.54 billion euros, and a GOM rate of 35.9%, a reduction of 1.4 percentage points (on an historic and a comparable basis), in line with the Group's stated objective (a decrease in the margin of between 1 to 2 percentage points)

Capital expenditure (CAPEX) of 6.73 billion euros, representing 13% of revenues (12.5% in 2005), in line with the Group's stated objectives

Group share of net profit 4.139 billion euros compared to 5.709 billion euros in 2005. On a like-for-like basis, adjusted for exceptional items, the 2006 figure of 4.152 billion euros is slightly ahead of the 3.992 billion euros reported in 2005

2007 objectives confirmed against a backdrop of moderate growth in the Group's major Western European markets

Organic cash-flow to be maintained at 6.8 billion euros, this level adjusted to take account of the disposal of PagesJaunes Groupe at the end of 2006

This organic cash-flow objective is based on:

Dividend distribution policy maintained

A dividend of 1.2 euros per share (representing 44% of organic cash-flow) to be proposed to the Annual General Meeting on May 21, 2007 and paid on June 7, 2007

For the financial year 2007, an indication that the dividend per share will be maintained at the same level as for the dividend paid for fiscal 2006

Confirmation of the cash utilization policy

Ratio of net debt to GOM less than 2 by the end of 2008

Dividend distribution representing between 40 and 45% of organic cash-flow

Reconfirmation of a prudent and selective acquisition and disposal policy, with the former targeting primarily assets in high potential markets

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