Paris, 12 October 2006 – At a meeting today, the Board of directors of Gaz de France discussed the progress of the planned merger with the Suez group, focusing particularly on EC-related aspects.

The Board recorded the discussions which have taken place with the Commission and confirmed the mandate given to its Chairman to finalise these negotiations.

It was noted that the remedial measures needed in Belgium's gas provision will probably be more wide-ranging than those which were proposed at the outset.

The Board confirmed the strategic benefits which the Suez group will be able to bring, especially in the area of liquefied natural gas and in developing dual energy provision (gas and electricity) in France.

Attention was drawn to the advantages of the planned merger, emphasising the strength of Gaz de France's strategic model and industrial practices, the importance of a fair valuation of the group and the need for balanced governance in the new group formation, both at board level and at management level.

The Board of Directors gave its Chairman a mandate to continue with the merger process, with due consideration for those aspects involved in the merger which concern the group's future growth and development and the interests of its shareholders and employees.

GAZ DE FRANCE: The Gaz de France Group is one of the major players in the European energy market. Number one natural gas distributor in Europe, Gaz de France employs around 53,000 workers, its turnover in 2005 was 22.4 billion euros and its net profits 1.743 billion euros.  The Group has a portfolio of 13.8 million customers, 11.1 million of whom are in France. Floated on the Paris Stock Exchange in July 2005, Gaz de France has been on the CAC 40 index and the DOW JONES STOXX 600 since September 2005.

Press Contact:

Jérôme Chambin

Tel. +33 1 47 54 24 35

E-mail. jerome.chambin@gazdefrance.com

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