Unaudited IFRS figures 

Paris, 14 November 2006 – On 30 September 2006, Gaz de France posted consolidated sales of 19,113 million euros, an increase of 32.1% (+26% on a comparable basis) compared with the first 9 months of 2005.

All of the Group's segments contributed to this increase, in particular, the Exploration - Production, Purchase - Sale of Energy and Transmission - Distribution International activities, which recorded increases of 65%, 29% and 92% respectively.

Gaz de France is continuing to grow in Europe. During the first nine months of the year, the sales of the Group's international activities reached 8,280 million euros, an increase of nearly 61% over the same period last year. International activities accounted for nearly 43% of the Group's overall sales during the period.

Gaz de France confirms its financial objectives for the full year 2006 and for 2005-2008, which were revised at the time of the publication of its 2006 first half-year results:

For 2006:

• EBITDA up by more than 20%, reaching over 5 billion euros
• Net income, Group share, of more than 2.2 billion euros.

For 2005-2008:

• EBITDA up by more than 10% per year on average

3rd quarter highlights :

• Gaz de France's upstream activities in Mauritania have progressed. Following the acquisition of stakes from Wintershall and following the completion of agreements with Dana Petroleum, Gaz de France holds 24% of block 1, 27.85% of block 7, and 26% of block 8 in Mauritania (this last stake in block 8 remains to be approved by the relevant authorities)
• Gaz de France has strengthened its presence in wind energy through the signing of a memorandum of understanding with Maïa Sonnier. The resulting joint-venture, Maïa Eolis, plans by 2012 to have 1,000 MW wind energy capacity in Europe, of which approximately 50% will be in France
• Progress in Italy has been accelerated by the creation of Energie Investimenti, a joint venture with Camfin
• Gaz de France sold its 17.5% stake in the Kazakh KazGerMunai LLP (KGM) joint venture to the state-owned oil company KazMunaiGas JSC for 350 million dollars

Recent events:

Merger project progress:

• Submission by the two companies to the European Commission of proposals responding to its concerns
• Presentation of the new group's proposed organisational structure

Review of sales figure as at 30 September 2006

Energy Supply & Services  

The Energy Supply & Services division comprises of the Exploration - Production, Purchase - Sale of Energy, and Energy Services activities. 

• Exploration - Production

During the first nine months of 2006, the sales of the Exploration - Production activity increased by 65% to reach 1,252 million euros, compared with 758 million euros for the same period in 2005 (+68% on a comparable basis due to the sale of KGM in July 2006).

This increase is due to both the rise in the price of hydrocarbons (oil and natural gas products) and the 12.5% increase in consolidated Group production sales (28.7 Mbep compared with 25.5 Mbep over the first nine months of 2005).

The group's production reached 33.9 Mbep taking into account Gaz de France's share in the Elgin-Franklin field (adjusting for the contribution of the Efog subsidiary). 

• Purchase - Sale of Energy

The sales of the Purchase - Sale of Energy activity increased by 29% as at 30 September 2006 compared with the same period in 2005 to reach 14,289 million euros compared with 11,101 million euros last year. The rise in energy prices largely accounts for this increase.

Natural gas sales

The growth in sales, as at 30 September 2006, compared with the same period in 2005, has been largely due to an increase in gas prices.

Natural gas volumes sold to individual customers in France stood at 92 TWh, as at 30 September 2006, up 2.5% from the beginning of the year. 

Sales of natural gas to business customers and to major eligible clients stood at 198 TWh in France and 86 TWh in Europe (-4.8% and +17% respectively).

The total volumes of natural gas sold increased by nearly 1%, benefiting from strong performances in Germany, Belgium, Italy and Spain.

Electricity sales

Electricity sales in France increased by 19%, over the first nine months of 2006, reaching 3.9 TWh.

In the United Kingdom, where the market has been strengthened by a rise in prices, sales of electricity increased by more than 28% at 30 September 2006, compared to the same period in 2005. 

• Services

Sales from the Services activity stood at 1,525 million euros at 30 September 2006, a rise of 16% compared to 1,320 million euros in 2005. This increase was due to strong organic growth and the acquisition of new companies. Sales over the period rose 11% on a comparable basis.

Infrastructures 

This segment comprises the management of Transmission-Storage and Distribution infrastructures in France and abroad. 

• Transmission - Storage in France

The sales of the Transmission - Storage activity in France reached 1,647 million euros for the period, an increase of 4.3% compared with 1,579 million euros for the first nine months of 2005.

This increase is due to the rise in subscribed capacity on the transmission network, the increase in storage bookings and the quantities of natural gas unloaded in the LNG terminals, as well as the rise in storage rates that came in on 1 April 2006. 

• Distribution in France

The sales of the Distribution activity in France reached 2,096 million euros as at 30 September 2006, an increase of 2.3% compared with the same period in 2005. The increase in volumes conveyed on the distribution network at 30 September 2006 (+6.4 TWh versus September 2005) largely accounts for this rise. 

• Transmission - Distribution International

The sales of the Transmission – Distribution International activity rose by 92%, over the first nine months of 2006, compared with the same period in 2005. This was essentially due to the acquisition of Distrigaz Sud in Romania on 31 May 2005 and SPE in Belgium on 1 October 2005. The sales figure also includes rate rises obtained since mid 2005 in order to reflect the rise in supply costs.

On a comparable basis, sales for this activity have grown by 27%. 

Press Contact 
Pénélope Linage
Phone: +33 1 01 47 54 17 
Email: penelope.linage@gazdefrance.com          

Investor Relations Contact
Brigitte Roeser-Herlin
Phone: +33 1 01 47 54 77 25
Email: GDF-IR-TEAM@gazdefrance.com

Company profile

Gaz de France is a major player in Europe's energy. Ranked first in the distribution of natural gas in Europe, Gaz de France employs more than 53,000 people and realised, in 2005, sales of 22.4 billion euros and a Group net income of 1.7 billion euros. The group boasts a portfolio of 13.8 million customers, 11.1 million of which in France. Listed on the Paris Bourse as of July 2005, Gaz de France entered the CAC 40 and the Dow Jones Stoxx 600 indexes as of September 2005. 

Forward-Looking statements

The objectives summarised above are based on data, assumptions and estimates, which Gaz de France considers reasonable. These data, assumptions and estimations may change due to some uncertainty relating, notably, to the economic, financial, competition, regulatory and climatic situations. Furthermore, the materialisation of certain risks described in chapter 4 of the reference document filed with the French Financial Market Authorities (Autorités des Marchés Financiers) under the n° R.06-050 on 5th May 2006 (hereinafter, referred to as the “Reference Document”) may have an impact on the Group's business and its ability to achieve its objectives. Besides, achieving its objectives implies the success of the sales strategy described in paragraph 6.1.2 of the Reference Document. Gaz de France, therefore, 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 constitutes neither an offer to purchase or exchange, nor a solicitation of an offer to sell or exchange any securities of Suez. Equally, It constitutes neither an offer to sell or exchange, nor a solicitation of an offer to buy or exchange any securities of Gaz de France. All sale, purchase or trade of these securities is forbidden in any jurisdiction (including the United States, Germany, Italy and Japan) in which such an offer, solicitation, sale or exchange would be unlawful prior to the registration or qualification under the laws of such jurisdiction. Laws or regulations may in some countries, restrict the distribution of this document. Accordingly, persons who come into possession of this document should inform themselves of and observe these restrictions. Within the limits allowed by current regulation, Gaz de France and Suez disclaim any responsibility or liability in the event that anyone should breach these restrictions. The ordinary shares of Gaz de France 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 1993, as amended, or pursuant to a valid exemption from registration. 

In connection with the proposed business combination, the required information document will be filed with the Autorité des marches financiers (“AMF”). Insofar as Gaz de France would be obliged or would decide to register in the United States of America the ordinary shares of Gaz de France which will be issued in connection with the business combination, it may file with the SEC (United States Securities and Exchange Commission) a registration statement on Form F-4, which will include a prospectus. It is strongly recommended that investors read the information document, which will be filed with the AMF, the registration statement and the prospectus, if and when available, as well as any other documents which may be filed with the SEC and/or AMP, as well as all endorsements or additions to these documents because they will contain important information. If and when filed, in the United Sates, copies of the registration statement, prospectus as well as other relevant documents filed with the SEC, will be available free from the SEC on its website: www.sec.gov. Investors will receive, at an appropriate time, information on the way to obtain, at no cost, the documents relative to the operation by Gaz de France or by its duly designated agent. The investors and holders of SUEZ securities may obtain free copies of the documents filed with the AMF on the AMF's website (www.amf-france.org) or directly from Gaz de France on its website at www.gazdefrance.com or directly from Suez on its website at: www.suez.com, as the case may be.

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