France Telecom S.A. (FTE)

New Action Plans: simplicity, agility, sustainable performance

The Orange 2012 initiatives are focused around three priorities:

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Simplifying the customer experience;

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Enhancing the agility with which the Group carries out its business;

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Ensuring performance that is durable over time.

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Simplicity: To help customers address the profusion of technologies and provide accessible services to as many as possible, Group innovation will concentrate on simplicity, ergonomics and design, as well as quality of service both in terms of products and services and the "customer experience". In this way, France Telecom-Orange will open a new era of "pacified” or trouble-free technology for its customers.

The initiatives in this field include a particular focus on patents aimed at simplifying product usage, the creation of a dedicated, integrated design and ergonomics team, generalising usage tests, improving call centre procedures, launching customer care and backup products, etc.

Agility: against a backdrop of extremely rapid change, the Group will rationalise its offers so as to accelerate its time to market and seize new opportunities. This move to increase flexibility in the business will also entail initiatives to drive further the Group’s transformation and optimise its cost structures.

Similarly, in light of the technological infrastructure developments (fibre optics, HSDPA and eventually LTE) expected to occur in the coming years the Group will pursue a deployment strategy taking into account the regulatory environment and the speed of adoption in the market.

Sustainable performance: Orange 2012 also aims to capitalise further on synergies available across the Group’s geographic footprint and to complete the roll-out of the integrated operator model: this will include further sharing of networks, information systems and platforms, the extension of innovative initiatives to the greatest possible number of markets and the extension of the Orange brand.

The Group will continue to pursue new growth opportunities, in particular in the areas of content, online advertising and e-health. With regard to content, the Group's strategy will continue to be based on differentiating itself from other players in the ecosystem, capitalising for example on its expertise in technology and networks that allow interactivity and personalisation, or its ability to deploy multi-screen services across TV, PCs and mobiles.

With an acceleration in the number of employees retiring from the Group in France in the medium term, France Telecom-Orange intends to bring forward recruitment for key business areas by applying existing internal and external mobility programmes. In particular it plans to increase by 25% to 4,500 as from 2009 the number of young apprentices it employs in France and to prioritise recruitment in this segment.

France Telecom-Orange will reinforce its Corporate Social Responsibility activities in order to provide maximum access to the widest range of digital technologies, contribute to environmental protection (in particular by reducing the Group’s energy consumption) and provide solutions to social questions such as the security of personal data and child protection.