Wanadoo Sees Profitable Growth in H1

PARIS -- For the first time since its IPO Wanadoo recorded positive EBITDA, which reached 28 million euros for the first six months of 2002, compared with a loss of 54 million euros for the first half of 2001. The group’s operating income nears breakeven as the operating loss narrowed to 4 million euros for the first half of 2002, compared with a loss of 92 million euros for the first half of 2001. Wanadoo’s consolidated net loss after minority interests was 39 million euros for the first six months of 2002, 60 percent less than the loss for first-half 2001.Commenting on these results, Nicolas Dufourcq, Chairman and CEO of Wanadoo, said:"Wanadoo's results for the first half of 2002 reflect the company's strong performance. With revenues increasing 33 percent and positive EBITDA of 28 million euros one year ahead of initial forecasts, Wanadoo has demonstrated its ability to achieve profitable growth in Internet Access and Online Services. Thanks to its leadership in three key european markets (France, the United Kingdom and Spain), Wanadoo is committed to making everyday life easier for 8 million clients with ever richer and more accessible services".Wanadoo’s gross margins improved from 43.5 percent to 50.9 percent between first-half 2001 and first-half 2002. Marketing and administrative expenditures advanced at a slower rate than revenues during the first half of 2002 in comparison with first-half 2001, rising 24 percent while revenues were up 33 percent.Wanadoo confirms its financial targets:

Wanadoo expects to exceed one million broadband customers at the end of 2002 and reach 15 million total customers (low-speed and broadband) in Europe in 2005.Wanadoo SA