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Thales (0HSR)

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Wednesday 07 November, 2001

Thales

Disposal

Thales
6 November 2001



                   Thales Instruments sold to J.F. Lehman & Co. 
                       and Thomas Weisel Capital Partners

Further to Thales' statement of 22 February, 2001 regarding its intention to 
sell its Instruments subsidiaries, Thales announces that it has completed the 
sale of Thales Instruments (TI) to a consortium comprising J.F. Lehman & Co, and
Thomas Weisel Capital Partners. Total proceeds from the transaction will be £85m
(EUR136 million) : £62m (EUR99 million) in cash for the shares of the entities 
sold, £11m (EUR18 million) in promissory notes and a special net dividend of 
£12m (EUR19 million) paid to Thales. The price is subject to certain post-
closing adjustments. In addition to the purchase price, Thales will be paid a 
license fee for the use of Racal Instruments' trade name for a period of 20 
years.

Given its strengths, yet limited synergies with other activities in the Group, 
Thales considers that the best opportunities for Thales Instruments to pursue 
its growth and development will be found outside the Group. This transaction is 
perfectly in line with Thales' strategy of refocusing its Information and 
Technology & Services (IT&S) portfolio towards leading market positions in a 
reduced number of activities.

Thales Instruments is an established supplier and integrator of test systems for
niche markets within the radio communications, broadband, and commercial and 
military electronics markets. Thales Instruments' operations are primarily based
in the United Kingdom and United States which currently account, respectively, 
for 370 and 220 of the total of over 600 employees worldwide. Since its 
formation under Racal in the 1950s, TI has built leading positions in its target
markets and strong relationships with many of the world's largest 
telecommunications and electronics companies.

Thales is one of the world's largest professional electronics groups and a world
leader in three areas: Aerospace, Defence, and Information Technology & 
Services. In 2000, Thales generated revenues of 8.6 billion euros, 74 per cent 
outside France. Following its acquisition of the Racal group, Thales now has 
close to 65,000 employees worldwide, including 13,000 in the UK.

J.F. Lehman & Company

J.F. Lehman & Co. is a leading private equity firm focused on investments in 
highly engineered end markets including the aerospace, defense, marine and 
industrial technology sectors. The firm was founded by John Lehman, former 
Secretary of the United States Navy (1981- 1987), and has completed 11 
acquisitions valued at over $900.0 million. JFLCO has offices in New York, 
London, and Washington.

Thomas Weisel Capital Partners
Thomas Weisel Capital Partners is a private investment fund sponsored by Thomas 
Weisel Partners, a research-driven merchant bank providing investment banking, 
institutional brokerage, private client services, private equity investing and 
asset management exclusively focused on the growth sectors of the economy. TWP 
has significant expertise in the test and measurement and communication 
industries. TWP has total capital commitments in excess of $1.3 billion and has 
invested over $700 million to date. TWP is headquartered in San Francisco with 
additional offices in New York, Boston and London.

Press contacts:

Thales
Matt Pothecary
Tel:+33 (1)53 77 87 27

J.F. Lehman & Company 
Steve Brooks 
Tel:+1 212-634-1157

Thomas Weisel Capital Partners
Keith Oster
Tel:+1 415-364-6013



                                                                                
                                                                                
                                                                              

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