2002 first quarter revenue growth for LAGARDERE MEDIA remains solid: + 6.2%

In an economic environment with continued weakness in advertising, Lagardère Media revenue grew strongly as a result of the quality of its media activities e.g., strong leading positions, solid global presence and a well balanced portfolio of cyclical and non cyclical businesses. Total LAGARDERE SCA consolidated revenue grew by 3.2%.

_{(*) excluding changes in group structure and the effect of exchange rates.
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Excluding changes in group structure, “Lagardère Media” sales grew by 7.9%. Excluding, as well, the effects of exchange rates (essentially a stronger dollar), the revenue climbed by 6.2%. On an unadjusted basis, Lagardère Media revenues grew by 7.2%.

Despite a retail distribution activity that remains effected by the drop-off in airport passenger traffic (even though this situation is improving), Hachette Distribution Services recorded a double-digit growth rate in sales. This performance reflects the strong internal growth resulting from significant gains in new concessions as well as new distribution contracts. In addition, Hachette Distribution Services, on an unadjusted basis, is benefiting from the contribution of Virgin since its consolidation on August 1st, 2001.

The Book division (Hachette Livre), which experienced an exceptional internal growth rate of close to 8% during the 1st quarter of 2001, was able to consolidate this performance. In fact, sales of the Book division, on a comparable basis, grew slightly versus the same period in 2001. Hachette Livre is also benefiting from the contribution of the English editor “Octopus” acquired last autumn and consolidated since January 1st, 2002.

Hachette Filipacchi Médias continues to suffer from a difficult advertising market in the United States, where as the European and Japanese markets remain relatively stable. In total, the sales decline during the first quarter of 2002 is at the same level as the decline experienced over the entire year 2001. Finally, the Hachette Filipacchi Médias revenue no longer include the contribution of the French and Belgium printing activities which were deconsolidated as of December 31, 2001.

In terms of advertising activity, the Radio business continues to be effected by high volatility as well as low visibility. Despite a difficult period to compare with (first quarter 2001 radio sales reached a historical high – up 18%), the decline in total Lagardere Active branch sales during the first quarter 2002 was limited. On an unadjusted basis, the published sales for the prior exercise include the period from October to December 2000 for Lagardere Active Broadcast while a on comparable basis, the period from January to March 2001 was used.

“Matra Automobile” sales declined by close to 20%. The Espace minivan, despite a continuing commercial success, is experiencing a progressive erosion of its market share that is typical for a model that has reached the end of its cycle. Still in a commercial launch phase, the new Avantime vehicle sales were also limited during the first quarter of 2002 to the single V6 manual transmission model. This product range will be broadened during the second quarter with the introduction of the 2.0T 16 V turbo model as well as the 2.2dCi diesel model. These last two models represent a significant portion of the potential Avantime market and should kick-start the acceleration of sales.

Revenue for the “EADS” line represent 15.10% of EADS sales.
In accordance with the French accounting standards used by Lagardère SCA, when hedging against exchange rate fluctuations, sales generated in foreign currencies are converted at a rate determined by the hedging instrument (rather than at the current exchange rate). EADS sales were restated to conform to these standards. With the exception of the Defense and Civil Systems division, the EADS revenue increase comes from all the activities including Airbus. The revenue decline of the DCS division is the outcome of the change in the group structure resulting from the creation of MBDA (Missile division).

The Lagardère Shareholder General Assembly Meeting is scheduled for Thursday, May 23rd at 10:00 a.m. at the Carrousel du Louvre, Paris.Paris.