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AREVA signs agreement with Bain Capital on FCI disposal

Press release

FACTS AND FIGURES / FINANCE

September 20, 2005

On September 19, 2005 , AREVA signed an agreement with the private equity firm, Bain Capital, setting forth the legal and financial terms and conditions for the disposal of FCI, AREVA's connector subsidiary.

This agreement has received the approval from AREVA's Supervisory Board held on September 19.

Since its inception in 2001, AREVA has been closely involved in FCI's financial recovery. Based on a healthy industrial and financial situation, FCI can now pursue its development.

On the other hand, AREVA is planning to focus its resources on its core business, energy.

Following a competitive process, AREVA retained Bain Capital's offer, which is the best bid from a financial as well as industrial and social point of view:

  • The transaction values FCI at an enterprise value of €1.067 billion;
  • Bain Capital with the support of FCI's management, is willing to implement an ambitious development strategy;
  • Bain Capital offers significant social guarantees: continuity of social policies, location of FCI headquarters in Versailles, preservation of Communication

Data Consumer division industrial sites in Europe as well as industrial sites in France for at least 3 years.

The closing should occur before the end of October subject to approval by the antitrust authorities, and to a decree following the recommendation of the French "Commission des Participations et des Transferts".

The disposal of FCI should have a positive impact of about €500 million on AREVA group's 2005 consolidated net income and generate a positive cash flow of about €850 million.

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FCI designs and manufactures interconnect systems for the automotive, the communication, the data and the consumer markets. FCI's revenues amounted to €1.3 billion in 2004.

Bain Capital
has more than Euro 20 billions in capital under management and is one of the most active financial sponsors in leveraged transactions with more than 250 investments achieved since its inception in 1984. Bain Capital is investing in Europe since 1989. It is specialized in the acquisition of major companies' subsidiaries in order to implement growth and development strategies.

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