Paris, 11 August 2006 – Gaz de France unveiled its consolidated sales for the second quarter of 2006 of 5,097 million euros, up 34% (+27% on a comparable basis) compared with the same period in 2005.

The Group's sales for the first half of the year reached 15,233 million euros, up 37% (+30% on a comparable basis) for the first half of 2005.

The significant increase in sales during the second quarter of 2006 compared with the same period in 2005 resulted from a particular contribution by the Purchase – Sale of Energy and Transmission - Distribution International segments, as well as by the Exploration - Production segment which fully benefited from the rise in energy prices and from an increase in the volumes sold.

The same positive factors contributed to the increase in the Group's sales over the first half of the year.

Gaz de France is continuing its development in Europe. During the first half of the year, the sales of the Group's international activities reached 5,714 million euros, an increase of nearly 57% over the corresponding figure for the first half of 2005, and on 30 June 2006, international activities accounted for nearly 38% of the Group's overall sales.

Sales division / segment

Q2-06 Highlights

• On 1 May 2006, the public distribution rates in France rose by 5.8% (Purchase – Sale of Energy segment).
• On 4 May 2006, the timetable for the proposed merger between Gaz de France and Suez was unveiled with the extent of the anticipated synergies increased to 1.1 billion euros of operational synergies per year plus potential financial and tax savings.
• Gaz de France accelerated the development of its business in Italy by unveiling on 19 June 2006 the formation of a natural gas joint venture with Camfin. The company will have over 800,000 clients.

Recent events and outlook

Exploration - Production:

• On 19 July 2006, Gaz de France sold its 17.5% stake in the KazGerMunai LLP (KGM) joint venture in Kazakhstan to Kazakh national oil company KazMunaiGas JSC for 350 million dollars.
• Gaz de France purchased from Wintershall a 13.5% stake in offshore block no. 8 in Mauritania, a country with which the Group signed a memorandum of understanding on 12 July 2006 ushering in a major, wide-ranging collaboration in the field of energy.

Review of Sales in the second quarter by segment

Energy Supply &Services

The Energy Supply & Services division comprises the Group's exploration and production, purchase and sale of energy segments, as well as the energy supply related services activity.

Exploration - Production

The sales of the Exploration & Production activity rose by 57% during the second quarter of 2006 to 428 million euros, versus 273 million euros for the same period in 2005.

This increase results both from the global increase in hydrocarbon prices (petroleum & gas products) and an increase in the Group's consolidated production which rose by nearly 9% during the second quarter of 2006 compared with the same period in 2005 (to 10.1 Mbep versus 9.3 Mbep, excluding adjustments). If one factors in Gaz de France's share in the Elgin-Franklin field (adjusting the contribution of the Efog subsidiary), the Group's production reached 12 Mbep.

Purchase – Sale of Energy

The sales of the Purchase – Sale of Energy activity rose by 30% during the second quarter of 2006 to 3,675 million euros versus 2,824 million euros during the same period in 2005. This rise was due mainly to the global increase in energy prices.

Sales of natural gas

In France, in spite of the mild weather conditions, the volumes of natural gas sold to residential customers rose by 0.9 TWh during the second quarter of 2006 compared with the same period in 2005, to reach 17.9 TWh.

The public distribution rates in France rose by 5.8% on 1 May 2006, which enabled the Group to partially pass on the increase in the costs that Gaz de France had to bear, such as the costs of natural gas supply from international suppliers. It is worth reiterating, the regulated rates cover only residential as well as business customers who have not exercised their right to a deregulated supply, and who are linked to the distribution network. These rates hence apply to a third of the overall volume of gas sold by the Group yearly.

Sales of natural gas to businesses and major industrial and commercial clients reached 47.8 TWh, a decline of 5.1 TWh compared to the figure for the second quarter of 2005.

In Europe, the Group pursued its sales growth over the second quarter, with a 3.8 TWh increase in the volumes of gas sold, primarily in Germany and Italy.

All in all, volumes sold remain steady due to the good results both outside France and with residential customers in France.

Sales of electricity

The Group's sales of electricity in France were up by nearly 13% compared with the second quarter of 2005 at 1.4 TWh.

The Group's sales of electricity in the UK, buoyed by a significant rise in electricity prices in that country, rose by nearly 19% during the second quarter of 2006.

The sales of the Services activity, up 9.1%, amounted to 454 million euros during the second quarter of 2006, versus 416 million euros during the second quarter of 2005. The increase of 6% (on a comparable basis) primarily reflects the organic growth of this activity.

Infrastructure

This segment comprises the management of transmission, storage and distribution infrastructure in France and abroad.

Transmission - Storage France 

The sales of the Transmission - Storage France activity reached 560 million euros during the second quarter of 2006 versus 526 million euros during the second quarter of 2005, which is tantamount to an increase of 6.5%. The growth is due to an increase in the subscribed capacity of the transmission and storage network and an increase in the quantities of natural gas unloaded at gas terminals.

Distribution France

The sales of the Distribution France activity amounted to 561 million euros, down by 6.5% compared with the corresponding figure for the second quarter of 2005. Apart from the effect of a reorganisation of internal accounting procedures, this change is due to a slight fall in the volumes carried (- 1.5%) due to the milder weather conditions during the second quarter of 2006.

Transmission – Distribution International

The sales of the Transmission – Distribution International activity more than doubled compared to the second quarter of 2005 (+149%), to reach 638 million euros during the second quarter of 2006, versus 256 million euros during the same period the year before. The activity benefited from the consolidation of the activities of Distrigaz Sud in Romania and SPE (Société de Production Electrique) in Belgium.

On a comparable basis, however, the increase was 46%.

The sales for the second quarter of 2006 reflects the usual seasonal variation in the Group's activities, which owing to the effect of weather conditions on the demand and supply of energy, resulted in significantly lower sales in the second quarter compared with the first quarter. This seasonal effect is also reflected on a half-yearly basis, with the first half of the year traditionally yielding bigger sales than the second half.

Gaz de France reiterates its targets for 2006 that the Group set itself while publishing its 2005 annual results: above 12% growth in EBITDA and for net income Group share to exceed 2 billion euros.

Press contact:

Pénélope LINAGE
Phone : 01 47 54 30 17
Email : penelope.linage@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 13.8 million customers, including 11.1 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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