AREVA and MHI Agree on Collaboration in Nuclear Energy - Memorandum of Understanding Signed in Tokyo

Press release

FINANCE / REACTORS ET SERVICES

October 19, 2006

AREVA, the world’s largest business group in the nuclear energy field, and Mitsubishi Heavy Industries, Ltd. (MHI) have agreed to collaborate in the area of nuclear energy, according to a memorandum of understanding signed today in Tokyo by Anne Lauvergeon, CEO of AREVA, and Kazuo Tsukuda, President of MHI.

The “nuclear renaissance” has brought about new challenges for the whole nuclear industry, as growth and new expectations of clients require significant mobilization of large financial and human resources. Facing the tremendous market changes, AREVA and MHI have decided to establish a powerful and ground-breaking alliance built on their historical successful relationship* and respective human and industrial capabilities.

As a first step, the two companies have already agreed to develop a 3rd-generation 1,000 MWe nuclear power plant expected to attract great market demand. The agreement covers other fields of possible cooperation such as procurement, services, fuel cycle and new types of reactors.

AREVA CEO Anne Lauvergeon noted, "This alliance has been worked out on the ground of mutual trust and common vision. Our technical innovation capabilities and our geographical complementarities will bring to our clients, in the field of nuclear power plants and services, unequalled solutions."

MHI President Kazuo Tsukuda stated, "We at MHI are all excited about this collaboration with AREVA. It will enable to provide the nuclear power plant technologies and experience accumulated by the two companies around the world in nuclear power generation. The alliance between AREVA and MHI, both highly acclaimed companies in the nuclear energy industry, is a very natural consequence for us."

* The two groups worked together in constructing the Rokkasho Reprocessing Plant in Japan, leveraging AREVA’s technologies developed for the La Hague Reprocessing Plant in France.