3rd Quarter Results

Lagardere S.C.A.
09 November 2006




              LAGARDERE SCA CONSOLIDATED REVENUES FOR 9 MONTHS TO
                 SEPTEMBER 30, 2006 UP 7.3% ON A REPORTED BASIS


              LAGARDERE MEDIA REVENUES UP 2.3% ON A REPORTED BASIS
                     AND 1.0% ON A LIKE-FOR-LIKE BASIS (*)


Lagardere Media revenues for the nine months to September 30, 2006 were up 2.3%
on a reported basis at €5,931.8m, boosted by the €213 million sales impact of
the first-time consolidation of Time Warner Book Group. On a like-for-like basis
(*) and over the same period, growth was 1.0%.

Highlights for the third quarter of 2006 on a like-for-like basis are:

Books - A good quarter, thanks to fine performances from the United Kingdom,
Distribution, Education and Part-works, and despite strong comparatives in
Literature in France.

Press - Revenues fell again, but at a slower rate than in the second quarter.
Sales were hit by lower circulation in many segments (especially in magazines
for men), weakness in regional daily press, and the discontinuation of some
magazines.

Distribution Services - Revenue growth was slightly better than in the second
quarter, but was hampered by the poor performance in press distribution in Spain
and Belgium and the impact of restrictions on transporting liquids on board
aircraft. However, other activities held up well, especially retail in Asia and
Eastern Europe.

Lagardere Active - Revenues were down, mainly due to tough comparatives in TV
and a slowdown in Radio in France, with advertising by retailers starting to
tail off. International Radio is continuing to grow strongly.


Consolidated revenues of LAGARDERE SCA, including EADS (up 15.5%), were up 7.3%
in the nine months to September 30, 2006 at €10,016.9m.


                                                 Revenues (€m)                 Year-on-year    Year-on-year
                                                                                  growth     growth (restated,
                                      9 months to           9 months to         (reported)    like-for-like)
                                     Sept 30, 2006         Sept 30, 2005                            (*)

. LAGARDERE MEDIA                       5,931.8               5,798.1              2.3%             1.0%

Books                                     1,452.7               1,231.5             18.0%             2.6%
Press                                     1,361.1               1,368.6            (0.5)%           (1.2%)
Distribution Services                     2,699.4               2,767.2            (2.5%)             2.1%
Lagardere Active                            418.6                 430.8            (2.8%)           (3.5%)

. EADS                                  4,085.1               3,538.2             15.5%              N/A
LAGARDERE SCA                          10,016.9               9,336.3              7.3%              N/A

(*) excluding changes in group structure and the effect of exchange rates, and
including a pro-forma restatement of HDS 2005 sales.

N/A: not available


LAGARDERE MEDIA


Lagardere Media recorded growth of 1% on a constant structure basis (before
adjusting for the effects of exchange rates).


Hachette Livre

Since the second quarter, Hachette Livre has included revenues generated by the
American publisher Time Warner Book Group, which contributed €213m to the top
line.

On a like-for-like basis, revenues to end September 2006 were up 2.6% (18.0% on
a reported basis), better than the first-half figure of 2.0%.


Key trends for the third quarter of 2006 were:

  • As expected, General Literature in France slowed further in the quarter
    due to a tough comparative (a lot of bestsellers were published in 2005, in
    particular books by Michel Houellebecq and Patrick Poivre d'Arvor).

  • There was another marked increase in sales of part-works, especially in
    Japan and Italy.

  • General Literature in the United Kingdom (Hodder Headline) continues to
    put on robust growth, mainly driven by sales of James Patterson and Stephen
    King.

  • Growth in Education in France and in Spain is also looking good.

  • Distribution is enjoying double-digit growth thanks to the successful
    integration of the Larousse business and a dynamic school books season
    during the summer.



Hachette Filipacchi Medias

Hachette Filipacchi Medias saw revenues continue to ease in the third quarter,
though at a slower pace than in the second quarter. Revenues to end September
2006 were down 1.2% on a like-for-like basis, after a fall of 1.1% in the first
half.

The main factors behind the decline (on a like-for-like basis) in the third
quarter were:

  • Weak circulation generally, especially in France, in titles for men, Paris
    Match and tele 7 Jours. Woman's Day, published in the United States, is also
    experiencing a decline in circulation this year.

  • The impact of the discontinuation of some titles (particularly Elle Girl
    in the United States, Nova in Spain, Elle Girl and B in the United Kingdom,
    and various magazines in Japan and France).

  • Poor circulation in regional daily press.

  • A competitive environment that continues to be tough, especially for
    circulation in Italy.


These adverse effects were mitigated by some positive developments, though these
were patchy:

  • Advertising revenues continued to grow in most countries where HFM
    operates, including France (except for men's titles and tele 7 Jours) and
    the United States (except for men's titles), in particular for the main
    women's titles: Elle (especially in the emerging markets of China and
    Russia), Marie-Claire and Psychologies.

  • The new rollouts of Psychologies continued their strong advance.


Hachette Distribution Services

Hachette Distribution Services posted 2.1% like-for-like revenue growth to end
September, after 2.3% in the first half. Third-quarter growth was slightly ahead
of the second quarter.

On a reported basis, revenues dropped by 2.5% after the impact of the new AMP
contract in Belgium (€127m to end September) and the sale of Sarbach
(distribution in Germany, negative effect of €24m on sales to end September).

The main trends in the third quarter were:


  • Continuing decline in Press distribution in Spain and Belgium, though this
    business makes a meager contribution to operating margin.

  • Impact of the new Spanish law prohibiting the sale of tobacco (another
    product generating low operating margins) in public places where smoking is
    banned. Tobacco sales accounted for some 15% of retail sales in Spain.

  • Improved performances from Relay and Aelia, reflecting increased airport
    footfall, but slightly dented at Aelia by restrictions on taking liquids on
    aircraft.

  • Another very strong sales performance in Eastern Europe and Asia.


Lagardere Active


Lagardere Active, which has been suffering from tough comparatives in TV
Production and theme channels, has seen revenues decline since the start of the
year by 3.5% on a like-for-like basis (2.8% on a reported basis). In the first
half, the fall was 3.1% on a like-for-like basis.


Key trends (on a like-for-like basis) in trading for the first nine months were
(by division):

Radio - 5.2% growth, after a flat third quarter, compared with 7.5% in the first
half. Revenues were down in France, with the first impact on Europe 1's sales of
the drop in advertising spend by retailers in September. These falls are within
the range (-5% to -10%) of estimates for the drop in radio revenues in France
which we announced previously to the market. International revenues are still
growing strongly.

Television - TV Production was down by 17.0% to end September after dipping by
17.5% in the first half. The quarterly performance was affected by delayed
deliveries ('Pere et Maire' series). Theme channels were down again (by 11.7%,
after 13.8% in the first half), mainly due to the discontinuation of Match TV in
the summer of 2005.

Lagardere Active Broadband - The division saw sales increase by 2.5% (after 1.6%
in the first half). Cellfish revenues are still growing very fast, to some
extent offset by the impact of the gradual shutdown of Hachette Multimedia.


Outlook

In Books, the end of the year should see current positive trends continue.

In Press, the prospects for circulation are not improving. This trend is likely
to depress advertising revenues in the final months of the year. Internet
revenues continue to grow at an encouraging pace.

At Lagardere Active, visibility remains poor on Radio in France despite a
satisfactory October. The outlook for Radio markets in Eastern Europe remains
good. The effect of tough comparatives in Television and delayed deliveries
should diminish.

The introduction of a new combined management team for these two divisions is
continuing. The market can expect a progress report on the outlook for the two 
divisions early in 2007.

In Distribution, we expect little change from current trends in the remainder of
the year.

To end September, the better than expected performance from Books, Distribution
and Active offset the current weakness of the Press division.

In consequence, the Group can confirm its previous guidance on full-year
like-for-like growth in recurring EBIT before associates from Media activities,
which we expect to be in the '3%-7%' range, based on the same parameters:

  • euro/dollar exchange rate of 1.25

  • excluding changes in group structure

  • excluding the impact of investment in Digital Terrestrial Television
    licenses (-€7m in 2005 and -€21m in 2006).



EADS

The revenues reported on the 'EADS' line represent 14.87% of the revenues
generated by EADS (vs 15.09% to September 30, 2005).

The share of EADS revenues consolidated by Lagardere SCA to end September 2006
was up 15.5% on the comparable period of 2005 at €4.09bn.

All divisions reported growth. Airbus and Eurocopter achieved significant growth
in deliveries of commercial aircraft (320 vs 271 to September 30, 2005) and
helicopters (271 vs 210 in the same period of 2005). The Defense division
increased its Eurofighter revenues and benefited from its acquisition of Nokia's
secure digital radio business, with the extra revenues partly offset by the sale
of the LFK missile subsidiary to MBDA. Space division growth was propelled by
higher Ariane revenues and the expansion of military telecommunications
services. Military Transport was boosted by progress on the A400M military
transport program, which passed four milestones in the first nine months of
2006.



Paris, November 9, 2006


The Lagardere Group is a market leader in the media sector (books, distribution,
press and audiovisual). The Group also has interests in the high technology
sector via a 14.87% stake in EADS.

The reference market for Lagardere shares is Euronext Paris (Eurolist -
compartment A).



Press Contacts
Thierry Funck-Brentano       tel. [phone]    [e-mail]
Arnaud Molinie               tel. [phone]    [e-mail]


Investor Relations Contact
Laurent Carozzi              tel. [phone]    [e-mail]


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