Return to a positive business environment in the fourth quarter
2007 EBITDA significantly above target¹

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Non-audited IFRS data

Paris, 23 January 2008 - Gaz de France Group earned €9,297 million in sales revenue in the fourth quarter 2007, up by 13% compared to fourth quarter 2006.

The return to growth of the business, already noted in the third quarter, picked up at the end of the year, in a buoyant environment, both in terms of market conditions and climate, which was colder than normal.

In this context, the Group stabilised its 2007 sales revenue at €27,427 million, as compared to €27,642 million in 2006. On an average climate basis, it improved by 1.6%.

In international business, sales revenue reached €11,361 million, representing 41% of the Group's sales revenue.

The fourth quarter 2007 was marked by the preparation of the merger project with Suez and the announcement of the GDF SUEZ Group's operational and financial objectives.

Gaz de France's financial objective for 2007 will be exceeded: thanks to better cost control, the good overall performance of the business in the second half of 2007 and a normalised rate context the 2007 EBITDA will be significantly higher than that of 2006¹.

Annual sales revenue by segment

Analysis of sales revenue as at end-December 2007

Energy Supply & Services

• Exploration-Production: 2007 revenue on the rise, taking into account a more favourable price environment and a good level of production in the last quarter

Sales revenue in Exploration-Production amounted to €1,717 million, as compared to €1,659 million in 2006, up by 3.5%.

This increase, is the result of the return to a more positive pricing environment in the fourth quarter, limiting the impact of the less favourable conditions of the first nine months:

• the average price of Brent oil €/bbl over the year was up by 2%, compared to a 7% decrease in the first nine months;
• the average price of natural gas in €/MWh on the NBP (United Kingdom) plummeted by 42%,in full year of 2007, compared to a 52% drop in the first nine months;

It is also explained by the return to an increase in production at year's end, after the commissioning of several fields in Norway, the United Kingdom and the Netherlands. Total production (including Efog³) reached 42.4 Mboe in 2007 as compared to 45.2 Mboe⁴ in 2006. On a comparable basis, total production shrank slightly, down 3%.

2007 was dedicated to continuing efforts to strengthen the business:

• acquisition of stakes in 10 licenses in the United Kingdom, from CGG Veritas;
• launch of production of gas fields in Minke (United Kingdom), Njord, Fram and Snøhvit (Norway);
• acquisition of a 45% stake in the Alam El Shawish West license in Egypt;
• drilling of 13 new wells, eight of which were successful.

• Energy Purchase & Sale: stabilised business levels on an average climate basis

In 2007, business in the Energy Purchase & Sale segment was conducted in an environment featuring:

• contrasting climate conditions: an exceptionally mild first half (25 TWh⁵), half offset by a cold second half (+11 TWh⁵);
• regulated prices for the sale of natural gas, in line with costs;
• the full liberalisation of the gas and electricity markets in France, as of 1 July.

Sales revenue from the Energy Purchase & Sale came to €20,041 million, as compared to €20,455 million in 2006.  It was stable on an average climate basis.

• Natural gas sales
  In 2007, sales of natural gas in the segment amounted to 609 TWh.  They dropped by 27 TWh compared to 2006, due in particular to the climate conditions.
  
  Sales to retail clients in France amounted to 125 TWh, as compared to 133 TWh in 2006.  On an average climate basis, they were stable.
  
  Since 1 July 2007, over 77,000 customers subscribed to the Group's new commercial offers.
  
  Sales to corporate clients and key accounts in France were 251 TWh as at end December 2007.
  
  Excluding the climate effect, sales were down by 20 TWh as compared to 2006.
  
  In Europe, sales to the same customer segments were up slightly, at 116 TWh⁶.
  
  Lastly, short-term sales improved by 7 TWh, coming out at 117 TWh.

• Electricity sales
  
  In 2007 Electricity sales in the segment came to 17.6 TWh, up 16% compared to the previous year.
  
  Since 1 July 2007, the Group has added nearly 46,500 new retail customers in electricity, over 80% of customers having chosen to change suppliers.
  
  During 2007, the Group boosted its energy supply capacity by:
• concluding an agreement with Sonatrach (Algeria) to extend LNG contracts until 2019;
• signing a supply contract with Norsk Hydro on the delivery of 3.2 billion m3 in natural gas over a four-year period;
• concluding an agreement with Cheniere for long-term LNG access to the American market;
• commissioning a new methane tanker, Gaselys, with capacity of 154,500 m3;
• developing in renewable energies, with the acquisition of two wind-energy companies: Erelia and Eoliennes in Haute-Lys (France), which have given the Group access to installed capacity of nearly 145 MW in early 2008.
  
  Fiscal year 2007 was also marked by the French State Council's decision, which clarified the legal framework applicable to natural gas sale prices.

• Services: sales revenue improved slightly, excluding perimeter effect

Sales revenue in the Services segment amounts to €1,807 million in 2007, unchanged in comparison to 2006 (€1,810 million).

The good performance in the Services business, in particular in France, and growth in the business in Italy made it possible to offset the full year negative climate impact, as well as the sale of Atelier de Fos (AdF) in the last quarter.

On a comparable basis, sales revenue is slightly up, +1%.

During fourth quarter 2007:

• the Group acquired seven cogeneration units in Italy, making for total installed power of 540 MW; in so doing, it consolidated its position as a leader in energy services in Italy and reached the top tier in the field of electricity production.

Infrastructures

• Transmission-Storage: revenues increased by 6% in 2007

Sales revenue in the Transmission – Storage came out to €2,494 million in 2007, versus €2,355 million in 2006, up by 6%.  This increase was thanks to a change in storage prices, the successful auctioning of storage capacity, and the rise in subscriptions on the transmission networks.

The business continued its development in 2007:

• in France, an increase in the number of Transmission customers (37 at end-2007, compared to 25 at end-2006) and Storage (22 end-2007, compared to 16 end-2006);
• in Europe, the accelerated development in storage capacity, in particular in the United Kingdom (Stublach).

• Distribution: activity still impacted by the mild weather

Sales revenue in the Distribution France segment came to €3,076 million, compared to €3,289 million at end-2006.  This change resulted primarily from the decrease in development investments and climate effects.  Between 2006 and 2007, delivered gas volumes were down by 16 TWh, due to the climate.

Year 2007 was marked by:

• the completion of the “one million new heating customers” programme, with over 980 000 customers connected to the grid since 2004;
• preparations for the spin-off of distribution activities in France, which became effective on 1 January 2008; 
• the launch, by the Energy Regulation Commission, of a public consultation prior to the setting of a new distribution rate.  The new rate could be determined in the first half of 2008.
   

• Transmission Distribution International: sales increased sharply during the last quarter, annual consolidated sales revenue on par with that of 2006

With a 17% increase in the last quarter, 2007 sales revenue in the Transmission Distribution International segment, at €5,202 million, consolidated the strong surge achieved in 2006 (€5,178 million).

Excluding the climate effect and the drop in sales in the United Kingdom due to depressed market prices, sales in the segment improved by 7.2%, thanks to:

• price increases in other European countries during 2007, in response to rising supply costs;
• the consolidation of the marketing activities in Italy since 1 October 2007, on a fully-integrated basis.

In 2007, the Group's development on the International market was marked by:

• the acquisition of a 60% stake in Romania's #2 natural gas storage operators (600 million m³ in ultimate capacity);
• Gaz de France's designation as “preferred bidder” for the partial privatisation of the Leipzig Stadtwerke.

Financial timetable
The audited accounts for 2007 will be published on 27 February 2008

Group Profile:
Gaz de France Group is a major energy player in Europe.  As the leading natural gas distributor in Europe, Gaz de France employs nearly 50 000 employees and earned 28  billion euros in sales revenue in 2006.  The Group holds a portfolio of 14 million clients, approximately 11 million of which are in France.  Listed on the Paris Stock Exchange, Gaz de France is also part of the CAC 40 and Dow Jones Stoxx 600 indices.

Press contact: 
Jérôme Chambin 
Phone: +331 47 54 24 35 
E-mail: jerome.chambin@gazdefrance.com

Investor relations contact:
Brigitte Roeser Herlin
Phone: +331 47 54 77 25
 E-mail: GDF-IR-TEAM@gazdefrance.com

The objectives summarised above are based on data, assumptions and estimates deemed reasonable by Gaz de France.  The said data, assumptions and estimates may evolve or be changed as a result of uncertainties due primarily to the economic, financial, competitive, regulatory or climatic environment.  In addition, the materialisation of certain risks set out in Chapter 4 of the Reference Document recorded by the French Financial Markets Authority under Number R.07-046, dated 27 April 2007 (hereinafter referred to as the “Reference Document”) could have an impact on the Group's operations and its ability to achieve its objectives.  In addition, the attainment of those objectives is dependent on the success of the sales
strategy set out in Paragraph 6.1.2 of the Reference Document.  Gaz de France thereby does not wish to make any commitments or guarantees on the attainment of the objectives and does not undertake to publish or issue possible corrections or updates of such factors, except what is required by the relevant laws and regulations.”

Appendix 1

Reminder of main reclassifications carried out between segments and impact on EBITDA levels:

• Energy sale activities in United Kingdom transferred from “Energy Purchase & Sale” to “Transmission Distribution International”;
• Savelys and DK6 transferred from “Services” to “Energy Purchase & Sale”;
• Transmission activities in Europe transferred from “Transmission Distribution International” to the “Transmission Storage France” segment, which is henceforth referred to as “Transmission Storage”;
• Lastly, transfer of Sales to Key Accounts activity in Germany from “Transmission Distribution International” to “Energy Purchase and Sale”.

¹ Reminder: the Group's 2007 objective was to achieve EBITDA in line with that of 2006
² Reclassifications between segments due to the implementation of the new organisation, see Appendix 1
³ Efog has been integrated on a proportional basis since 1 February 2007
⁴ Provisional data, used while awaiting the final data from the reserves book
⁵ Compared to average climate conditions
⁶ After reclassification of GDF ESS in the Transmission Distribution International segment, sales for Europe in Year 2006 amounted to 114 TWh
⁷ Effects of reclassifications between segments due to the implementation of new organisation
⁸ Following implementation of IFRIC 12 accounting interpretations and reclassifications between segments due to the institution of the new organisation