"Enable everyone to have access to ever cleaner, safer and more economical energy": that is the mission we have set for ourselves at AREVA.
The AREVA group offers solutions and technologies for CO2-free power generation and electricity transmission and distribution. As a leader on these two markets, AREVA is a strategic partner for its customer energy companies. Both businesses are expected to grow steadily as demand for energy – and particularly electricity – increases worldwide. The group is convinced that nuclear power – in combination with other sustainable sources – is indispensable to meeting the planet's energy and environmental challenges. AREVA's business development strategy is therefore to expand and/or strengthen our group's leading positions along several lines:

In the nuclear sector, we are aiming to increase our leadership position, capture one-third of the world market by 2011, and achieve double-digit operating margin... In the nuclear sector, we are aiming to increase our leadership position, capture one-third of the world market by 2011, and achieve double-digit operating margin:

• We will leverage our fuel cycle integration model and our leadership position on all market segments to offer global solutions to energy companies. These solutions aim to optimize energy infrastructure in terms of service life and cost while meeting stringent nuclear safety requirements. • We will consolidate our position as world leader in the front end of the fuel cycle by replacing our production facilities and accelerating our exploration programs to increase our mineral resources. • We will increase our share of the reactor construction market significantly by developing and promoting our EPR reactor, the only Generation III reactor currently under construction worldwide. To achieve this goal, we will develop partnerships and strengthen our local engineering resources, particularly in North America and in Asia. • We will actively anticipate changes in national used fuel management policies, especially in the United States and Japan, where the group is already a solutions supplier. • We will maintain our leadership position by hiring new talent and developing the technologies of the future, especially in next-generation reactors and fuel cycles. • We will capitalize on a solid record of nuclear safety, occupational safety and risk prevention.

For the Transmission & Distribution division, we will fulfill the objectives of our 2004-2007 optimization plan... For the Transmission & Distribution division, we will fulfill the objectives of our 2004-2007 optimization plan:

This industrial redeployment and profitability improvement plan revolves around four key drivers: greater control and centralization of procurement, improvement of business processes, industrial redeployment, and optimization of our portfolio of businesses. The goal is to restore the Transmission & Distribution division’s financial performance to levels commensurate with those of the sector’s leading players by 2007.

Exploring growth opportunities on renewable energy markets complementary to AREVA’s other businesses... Exploring growth opportunities on renewable energy markets complementary to AREVA’s other businesses:

Along with nuclear power, renewable energies are an answer to the challenges of greenhouse gas reduction and energy independence. They also require strong interaction with deployment of electricity transmission and distribution infrastructure. Three market segments have been identified: • Wind power: the group acquired 29.9% of German company REpower over the 2005-2006 period and hopes to acquire the majority of its share capital to support its growth further. • Biomass: AREVA intends to expand its existing Engineering, Procurement and Construction business by developing its own technologies. • Fuel cells: AREVA is focusing on medium power cells for selfcontained or decentralized environments, in particular in the transportation and manufacturing sectors.

Strengthening our international operations in a balanced manner, building from the three pillars of Europe, North America and Asia... Strengthening our international operations in a balanced manner, building from the three pillars of Europe, North America and Asia:

First, the group is focusing on internal growth, especially through continuing investment and innovation, which will benefit our customers. The group also plans to build strength through targeted acquisitions and partnerships with regional players, enabling us to accelerate penetration of key markets. The integration of the transmission and distribution and renewable energies businesses supplements our offering and strengthens our strategic local presence near all of the world’s utilities. It broadens our core competencies as a group and enables us to expand our portfolio of customers along with our international presence.

Promoting sustainable development as a key to operating excellence and a core AREVA value... Promoting sustainable development as a key to operating excellence and a core AREVA value:

The group will continue to implement the AREVA Way initiative, which incorporates sustainable development into management methods in all of our businesses. The underlying methodology of the program consists of self-assessments of each unit’s economic, social and environmental performance in relation to AREVA’s sustainable development commitments. Each unit establishes its own continuous improvement objectives to achieve the group’s overall strategic goals. These objectives are reviewed periodically by AREVA’s executive management.

Maintaining a strong balance sheet and solid cash flows... Maintaining a strong balance sheet and solid cash flows:

• It is the group’s policy to maintain a strong balance sheet. This is a guarantee of security for our customers and enables us to enter into major contracts, especially in connection with new reactor sales, but also for the developement of renewable energy projects. It is also essential to the success of our businesses and for financing future investments. • AREVA has set up provisions for its decommissioning liabilities and created a dedicated financial portfolio to cover all of its estimated decommissioning expenses when they come due. A special committee of the Supervisory Board monitors the dedicated asset portfolio and our coverage of future end-of-life-cycle expenses. • Maintaining strong and recurring operating cash flow allows us to fund our capital expenditures and create value for our shareholders. Towards that end, the group will continue to improve productivity while maintaining visibility in our operations.