Paris, 15 May 2006 – In the first quarter of 2006, Gaz de France reported consolidated sales of 10,136 million euros, up 39 per cent from the same period in 2005 (+32 per cent on a comparable basis).

This improvement mainly results from the Purchase – Sale of Energy segment's growth. It reflects both the increase in energy prices resulting from the rise in the price of oil products, which impacted the Group's supply costs, but also the increased sales of natural gas and electricity.

Q1 Highlights

• New rates for access to distribution networks and the use of Liquefied Natural Gas terminals as of 1 January 2006
• Bringing on stream five natural gas fields in the Netherlands enabling Gaz de France to double its production capacity there in the medium term
• Signature in January 2006 of an industrial partnership between Gaz de France and Suez for the co-ordinated development of two proposed natural gas combined cycle gas turbine (CCGT) projects of about 420 MW each in Fos-sur-Mer
• Announcement on 27 February 2006 of the proposed merger between Gaz de France and Suez which should be finalised in the second half of 2006
• Adaptation of agreements between Dana Petroleum and Gaz de France relating to Gaz de France's access to Mauritanian offshore exploration and production.

Recent events and outlook

• 5.8 per cent rise in public distribution rates as of 1 May 2006
• Confirmation on 4 May 2006 of the timetable for the proposed merger between Gaz de France and Suez, and the announcement of revised synergies resulting from the merger, estimated at 1.1 billion euros per year.

Review of Sales in the first quarter of 2006

Energy Supply and Services

Sales in the Exploration - Production segment increased by 89 per cent versus the first quarter of 2005, at 477 million euros (compared to 253 million euros in 2005). This increase is primarily due to the rise in the price of oil products. It also benefits from the 14 per cent rise in the Group's consolidated production (excluding companies consolidated by the equity method) which reached 10.5 Mbep in the first quarter of 2006 compared with 9.2 Mbep in the first quarter of 2005.

The Purchase – Sale of Energy segment reported a 33 per cent rise during the quarter compared with the first quarter of 2005, to 7,916 million euros.
This increase mainly results from the rise in energy prices as well as an increase in sales volumes.

The sales figure also reflected the impact of commercial measures introduced to limit the impact of the rate rise on 1 November 2005, on its most vulnerable customers as well as the absence of a rate rise on 1 January 2006.

Natural gas sales

Natural gas sales to residential customers improved 6.1 per cent to 68 TWh, mainly due to colder weather conditions than in the first quarter of 2005. Natural gas sales to business customers and major industrial and commercial customers (eligible customers) were up 1 per cent, compared with the first quarter of 2005, to 119 TWh.
Essentially driven by increased volumes of natural gas sold in Italy, Belgium and Germany, outside France European sales continued to develop with a significant rise of 22 per cent to 36 TWh.

Electricity sales

In France, electricity sales tripled, compared with the first quarter of 2005, to 1.6 TWh.
In the United Kingdom (GDF ESS), electricity sales were down 5.9 per cent compared with the first quarter of 2005, at 3.2 TWh.

The Services segment totalled 642 million euros, up 19 per cent compared with the same period in 2005. The acquisition of several assets (mainly in France and Italy) accounts for 25 million euros of this increase.
On a comparable basis, the segment's sales grew by 14 per cent thanks to the Dunkirk's power station (DK6) commissioning on 22 March 2005, as well as increased business and higher energy prices.

Infrastructures

In the first quarter of 2006, the business of the Transmission-Storage - France and Distribution France segments improved due to harsher weather conditions than during the same period in 2005.

The Transmission-Storage - France segment totalled 537 million euros, up 3 per cent compared with the first quarter of 2005, mainly resulting from the rise in subscribed capacities.
The Distribution-France segment earned 1,111 million euros, up 7 per cent compared with the first quarter of 2005, mainly resulting from the growth in routed volumes.

Sales in the Transmission-Distribution International segment more than doubled in comparison to the first quarter of 2005. In particular, it benefited from the consolidation of Distrigaz Sud (Romania), 51 per cent of which was acquired on 31 May 2005, and of SPE (Belgium), 25,5 per cent of which was acquired on 28 September 2005.
On a comparable basis, the segment's sales improved by 37 per cent, reflecting rate rises in Hungary, Slovakia and Germany, as well as harsher weather conditions.

Press contact: Investor Relations contact :

Jérôme Chambin Communication financière
Phone : 01 47 54 24 35 Phone : 01 47 54 79 04
Email : jerome.chambin@gazdefrance.com Email : GDF-IR-TEAM@gazdefrance.com

Company profile :

Gaz de France is a major energy player in Europe. It is the leading European natural gas supplier and has approximately 53,000 employees. Gaz de France recorded net sales of €22.4 billion in 2005, and serves 13.7 million customers, including 11 million in France. Listed on the Paris Stock Exchange since July 2005, the Group joined the CAC 40 share index and the Dow Jones Stoxx 600 in September 2005..

Forward-Looking Statements :

\"This communication contains forward-looking statements based on data, assumptions and estimates which Gaz de France considers reasonable. These data, assumptions and estimates may change due to some uncertainty relating, in particular, to the economic, financial, competition, regulatory and weather conditions. Moreover, the materialization of certain risk factors as described in Chapter 4 of the document de référence filed with the French Financial Markets Authority (Autorité des Marchés Financiers) under n°R.06-050 on 5th May 2006 (hereinafter referred to as the \"Document de Référence \") may impact the Group's business and its ability to achieve its objectives. Besides, achieving its objectives implies the success of the commercial strategy described in paragraph 6.1.2. of the Document de Référence. Consequently, Gaz de France disclaims any undertaking and gives no representation as to the fact that it will achieve its objectives and disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this communication.\"

Important Information :

This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Suez or an offer to sell or exchange or the solicitation of an offer to buy or exchange any securities of Gaz de France, nor shall there be any sale or exchange of securities in any jurisdiction (including the United States, Germany, Italy and Japan) in which such offer, solicitation or sale or exchange would be unlawful prior to the registration or qualification under the laws of such jurisdiction. The distribution of this communication may, in some countries, be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of and observe these restrictions. To the fullest extent permitted by applicable law, Gaz de France and Suez disclaim any responsibility or liability for the violation of such restrictions by any person.The Gaz de France ordinary shares to be issued in connection with the proposed business combination to holders of Suez ordinary shares (including Suez ordinary shares represented by Suez American Depositary Shares) may not be offered or sold in the United States except pursuant to an effective registration statement under the United States Securities Act of 1933, as amended, or pursuant to a valid exemption from registration.

Les actions Gaz de France qui seront émises dans le cadre de l'opération de rapprochement au bénéfice des actionnaires de Suez (y compris celles représentées par des ADS (American Depositary Shares) Suez) ne pourront être offertes ou vendues aux États-Unis d'Amérique sans avoir fait l'objet d'un enregistrement ou bénéficié d'une exemption à l'obligation d'enregistrement conformément au US Securities Act de 1933, tel que modifié.

In connection with the proposed business combination, the required information document will be filed with the Autorité des marchés financiers (“AMF”) and, to the extent Gaz de France is required or otherwise decides to register the Gaz de France ordinary shares to be issued in connection with the business combination in the United States, Gaz de France may file with the United States Securities and Exchange Commission (“SEC”), a registration statement on Form F-4, which will include a prospectus. Investors are strongly advised to read the information document filed with the AMF, the registration statement and the prospectus, if and when available, and any other relevant documents filed with the SEC and/or the AMF, as well as any amendments and supplements to those documents, because they will contain important information. If and when filed, investors may obtain free copies of the registration statement, the prospectus as well as other relevant documents filed with the SEC, at the SEC's web site at www.sec.gov and will receive information at an appropriate time on how to obtain these transaction related documents for free from Gaz de France or its duly designated agent. Investors and holders of Suez securities may obtain free copies of documents filed with the AMF at the AMF's website at www.amf-france.org or directly from Gaz de France on its web site at: www.gazdefrance.com or directly from Suez on its website at: www.suez.com, as the case may be.

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