PARIS---Alcatel is initiating today the sale of 10,300,000 Thales shares, i.e. 6.1% of the share capital of Thales, based on the modification of an agreement signed in 1998 between Alcatel and Groupe Industriel Marcel Dassault (GIMD).
Neither the agreement between the Public Sector ("Secteur Public") and the Industrial Partner ("Partenaire Industriel") (Alcatel and GIMD), nor the other terms of the agreement between Alcatel and GIMD will be affected by this transaction.
Alcatel confirms its position as the number one private shareholder of Thales, with three seats on Thales' board of directors. Alcatel intends to continue the joint activities between the two groups. Upon the closing of the transaction, Alcatel's shareholding in Thales will amount to 9.7% and the Industrial Partner will hold 15.56%.
Independent from this transaction, Alcatel reiterates that the group can finance its operations in 2003 and beyond. As for today's transaction, it contributes to further strengthen its balance sheet ratios and its financial situation, as well as financing restructuring costs as mentioned earlier this month.
The sale of Thales shares by Alcatel will be carried out through a private placement led by SG Investment Banking to institutional investors. The sale price will be set upon the completion of an accelerated book-building.
This announcement is not an offer of securities for sale or subscription in the United States or any other jurisdiction. Securities may not be sold or subscribed in the United States absent registration or an exemption from registration. Copies of this announcement are not being, and should not be, distributed in or sent into the United States.
Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimising their service offerings and revenue streams. With sales of Euro 25 billion in 2001, Alcatel operates in more than 130 countries.
-ends- Partial Sale by Alcatel of its Shareholding in Thales
