FT Takes Over Diwan

PARIS -- France Telecom announces having signed on July 27 with the controlling shareholders of the Diwan Group an agreement for the sale of shares representing around 72% of the equity in the company, which has been listed on Alternext since September 2005, for 28.2 million euros, or EUR 41.97 per share.

Completion of this transaction is subject to approval by the competent competition authorities. In accordance with Alternext regulations and with AMF general regulations, France Telecom will offer the shareholders in the Diwan Group an irrevocable standing market offer at the same per share price as the one of the controlling block acquisition.

This acquisition will enable France Telecom to accelerate its strategy in the Enterprise market The acquisition of the Diwan Group is part of France Telecom's strategy to provide convergent communications services dedicated to businesses. The expertise of the Diwan Group in the network integration market as well as its skills in the areas of security, collaborative tools and call centers in France will be an additional asset for France Telecom and Orange Business Services, the commercial brand which, since June 1, markets the global enterprise offer, and will boost its position as a major player in that market.

This complementarity in terms of offers and skills will enable France Telecom and the Diwan Group to meet their enterprise customers' changing needs by rolling out convergent communications solutions based on the Internet Protocol (IP).

"This acquisition is a decisive step in the strategy of the DIWAN Group in the convergence product market. Joining a leading global group such as France Telecom will enable us to consolidate our presence with our French customers and provide them with complete solutions by capitalizing on the worldwide presence of Orange Business Services," says Daniel Derderian, Chairman of the Diwan Group.

"This acquisition fits perfectly with our strategy to develop services, especially in the integration services business. Therefore, joining forces with the DIWAN Group, a leading player in integration, will mean heightened complementarity. Today, thanks to our global presence and to our 3,000 services specialists, we are assisting businesses in their IP transformation and managing their critical applications," says Barbara Dalibard, Executive Vice-President, Orange Business Services.

Orange (NYSE: FTE)