FRANCE TELECOM : FRANCE TELECOM ORANGE : positive results from operational efficiency and commercial agility plans; full-year

  FRANCE TELECOM : FRANCE TELECOM ORANGE : positive results from operational
   efficiency and commercial agility plans; full-year objectives confirmed




                                                                 press release
                                                          Paris, 24 April 2013

first quarter 2013 financial statement

positive results from operational efficiency and commercial agility plans;
full-year objectives confirmed

  *France Telecom-Orange had 229.8 million customers at 31 March 2013, a
    year-on-year increase of 2.6% (+5.9 million additional customers):

  *in France, the very strong growth of the Sosh and Open offers maintained
    the mobile market share at 37.0% at 31 March 2013. Overall, the mobile
    customer base in France rose 1.3% year on year

  *in Spain, mobile contracts rose strongly (+9.7%) while the ADSL customer
    base increased 11.1%

  *in Africa and the Middle East, mobile services reached 82.0 million
    customers at 31 March 2013, up 8.2% year on year (+6.2 million additional
    customers)

  *Consolidated revenues of 10.280 billion euros represented a 1.8% decrease
    on a comparable basis, excluding the impact of regulatory measures,
    supported in particular by continued growth in the Group's international
    subsidiaries:

  *in France, the decline in mobile services revenues was 2.9% in the first
    quarter of 2013, affected by price reductions and the development of
    SIM-only offers 

  *in Spain, revenues rose by 3.3%, led by growth in the fixed broadband and
    mobile services customer bases

  *in Poland, the decline in mobile services revenues was limited to 2.2% in
    the first quarter of 2013, while fixed broadband climbed 9.3% 

  *in the rest of Europe, revenues increased 2.6%, lifted by mobile Internet
    browsing and smartphone sales 

  *in Africa and the Middle East, revenues grew 3.3%, led by Côte d'Ivoire,
    Senegal, Guinea and Niger

  *in the Enterprise segment, revenues declined 5.3% in the first quarter of
    2013 due to intensified competition and difficult economic conditions in
    Europe 

  *Restated EBITDA reached 3.124 billion euros while erosion of the margin
    (30.4%) was limited to 0.8 percentage point, after falling 1.6 percentage
    points in the first and second halves of 2012, due to lower direct costs
    (-7.1%) and the start of declining indirect costs (-0.6%)

  *Capital expenditure (1.150 billion euros) grew 6.5% compared to the first
    quarter of 2012 on a comparable basis, with the acceleration of investment
    in fixed and mobile high-speed broadband services (fibre and 4G),
    particularly in France. The ratio of CAPEX to revenues was 11.2%, an
    increase of 1.1 percentage points

  *Operating cash flow (restated EBITDA - CAPEX) was 1.975 billion euros in
    the first quarter of 2013, in line with the Group's confirmed objective
    for 2013 of more than 7.0 billion euros in operating cash flow

Commenting on the results for the first quarter of 2013, Stéphane Richard,
Chairman and CEO of France Telecom-Orange, said: "In a French mobile market
that has remained under pressure, we have again demonstrated our ability to
react quickly with forceful commercial offers. In the mobile segment, this is
due to the success of the Open and Sosh offers while in fixed-line services,
over 300,000 customers subscribed to Livebox Play offers in just two months
and subscriber numbers for fibre exceeded 200,000. Operations in Spain, Africa
and the Middle East have once again made a positive contribution to the
Group's revenues. The acceleration in the reduction of operational expenses,
including indirect costs, made it possible to limit margin erosion to less
than one point. Investments, up more than 6% over the year, were concentrated
on the faster roll-out of fibre and 4G in France. In addition, I have renewed
and strengthened the management team, to enable greater efficiency,
particularly in the field of innovation. Altogether, I am very confident in
the ability of the men and women of the Group to achieve our goals for 2013
and beyond." 

key figures

                     
                                                                                   impact
                                                                                       of
                 1^rst      1^rst      1^rst      change     change       change   change     impact of
               quarter    quarter    quarter  comparable  excluding   historical       in     change in
                2013      2012      2012       basis regulatory        basis exchange consolidation
In millions of        comparable historical               measures                 rates         Scope
euros                       basis      basis
                                                                                                
Revenue        10,280    10,721    10,922      (4.1)%     (1.8)%       (5.9)%   (0.3)%        (1.5)%
Of which :
 France         5,068     5,399     5,401      (6.1)%     (3.4)%       (6.2)%       -        (0.0)%
 Spain            989       981       981        0.8%       3.3%         0.8%       -            -
 Poland           786       847       832      (7.2)%     (3.2)%       (5.5)%     1.8%            -
 Rest of World  1,934     1,920     2,134        0.7%       2.9%       (9.3)%   (2.2)%        (7.8)%
 Enterprise     1,635     1,726     1,734      (5.3)%     (5.3)%       (5.7)%   (0.3)%        (0.2)%
 International
 Carriers and     407       409       410      (0.4)%     (0.4)%       (0.8)%   (0.0)%        (0.3)%
 Shared
 Services
 Eliminations    (539)      (561)      (569)           -          -            -        -             -
Restated        3,124     3,346     3,432      (6.6)%     (4.1)%       (9.0)%   (0.2)%        (2.3)%
EBITDA*
 In % of         30.4%      31.2%      31.4%     (0.8)pt    (0.7)pt      (1.0)pt
 revenues
CAPEX
(excluding GSM  1,150     1,079     1,097        6.5%                    4.8%   (0.4)%        (1.2)%
and UMTS
licences)
 In % of         11.2%      10.1%      10.0%       1.1pt                   1.1pt
 revenues
Operating cash
flow (restated  1,975     2,267     2,335     (12.9)%                 (15.4)%
EBITDA* -
CAPEX)

* EBITDA restatements are described in appendix 2.

                                      *

                                  *    *

The Board of Directors of France Telecom SA met on 23 April 2013 and examined
the Group's financial results for the period ended 31 March 2013.

The financial data and comparable basis data provided in this press release
are unaudited.

More detailed information is available on the France Telecom-Orange website:

                                www.orange.com

comments on key Group figures

revenues

The France Telecom-Orange group revenues were 10.280 billion euros for the
first quarter of 2013, a decrease of 4.1% on a comparable basis. Excluding the
impact of regulatory measures (-250 million euros), the Group's revenues
declined 1.8% compared to the previous year.

Changes in revenues by location, excluding the impact of regulatory measures,
were as follows:

  *in France, mobile services revenues declined 2.9%. The change in ARPU
    (-10.7%; -5.5% excluding the impact of regulatory measures) was in line
    with expectations, while the contract customer base grew 3.8% year on
    year. In fixed broadband, which increased 0.4%, the impact of the 2.7%
    growth in the customer base driven by optical fibre was partially offset
    by the increasing share of Open offers;

  *in Spain, revenues grew 3.3%, led by strong growth in the number of mobile
    contracts (+9.7%) and fixed broadband subscribers (+11.1%);  

  *in Poland, mobile services revenues fell 2.2% while fixed broadband rose
    9.3%, after rising 6.0% in the fourth quarter of 2012, due to growth in
    ARPU;  

  *Rest of World segment: 3.3% growth in Africa and the Middle East, led by
    Côte d'Ivoire, Senegal, Guinea and Niger. In Europe, revenues rose 2.6%,
    driven by the growth of Internet browsing and smartphone sales, most
    notably in Belgium and Romania;  

  *The Enterprise segment declined 5.3% in the first quarter, due to
    intensified competition and difficult economic conditions in Europe.
    Strong growth continued in the Cloud (+28% in the first quarter). 

On an historical basis, first quarter 2013 revenues declined 5.9% in relation
to the first quarter of 2012, including:

  *changes in the scope of consolidation (-1.5 percentage points), chiefly
    with the disposal of Orange Switzerland on 29 February 2012, 

  *foreign exchange fluctuations (-0.3 percentage points): the decline in the
    Egyptian pound, the Dominican peso and the US dollar was partially offset
    by the increase in the Polish zloty.

customer base growth

The Group had 229.8 million customers (excluding MVNOs) at 31 March 2013, a
year-on-year increase of 2.6% with 5.9 million net additions. This change
included the effects of the Orange Austria disposal (781,000 mobile customers
at 31 December 2012) and the acquisition of Simyo in Spain (398,000 mobile
customers at 31 March 2013).

There were 171.8 million mobile services customers (excluding MVNOs) at 31
March 2013, a year-on-year increase of 4.0%:

  *Africa and the Middle East had 82.0 million customers at 31 March 2013, an
    increase of 8.2% (+6.2 million net additions). Orange Money, now marketed
    in thirteen African and Middle Eastern countries, had 6.6 million
    customers at 31 March 2013;

  *in France, the mobile customer base grew 1.3% (+353,000 net additions) to
    26.8 million customers at 31 March 2013, year on year. Contracts rose 3.8%
    to 19.8 million customers, nearly three-quarters of the total customer
    base, while prepaid offers fell 5.0% to 7.0 million customers;  

  *other regions (63.0 million customers at 31 March 2013) recorded growth of
    0.7% year on year (+460,000 net additions), excluding the impact of the
    Orange Austria disposal and the acquisition of Simyo in Spain, including
    Poland (+274,000), Moldavia (+215,000), the Dominican Republic (+171,000),
    Spain (+149,000 excluding Simyo) and Romania (+127,000), while the United
    Kingdom lost 374,000 customers. 

There were 15.0 million fixed broadband customers at 31 March 2013, a
year-on-year increase of 3.0% or 437,000 net additions, including 263,000 in
France, 143,000 in Spain, 29,000 in Egypt and 28,000 in Slovakia. Fixed
broadband subscribers included 265,000 optical fibre customers at 31 March
2013, mainly in France (206,000 subscribers), where growth accelerated with
30,000 additional subscribers in the first quarter of 2013 and 99,000 year on
year. 

restated EBITDA

Restated EBITDA was 3.124 billion euros in the first quarter of 2013, compared
to 3.346 billion euros in the first quarter of 2012, a 6.6% decline on a
comparable basis. Excluding the impact of regulatory measures (-88 million
euros), the decrease was 4.1%.
The ratio of restated EBITDA to revenues was 30.4%, a decline limited to 0.8
percentage points compared to the first quarter of 2012 on a comparable basis,
versus the 1.6-percentage-point decrease in the first and second halves of
2012. This was due to lower direct costs (-7.1%) and initial reductions in
indirect costs (-0.6%).
The reduction in commercial costs and content purchases (-3.3%) reflected the
impact of an increasing number of SIM-only offers (particularly in France) and
management of retention and acquisition costs, as well as the reduction in
content purchases compared to the first quarter of 2012. The ratio of
commercial expenses and content purchases to revenues remained stable at 15.1%
in the first quarter of 2013.
Service fees and inter-operator costs fell 10.0%. Excluding the favourable
impact of the reduction in call termination fees (+162 million euros), growth
was more modest at 1.9%, confirming the slowdown in the second half of 2012.
The ratio of service fees and inter-operator costs to revenues (12.2%)
improved by 0.8 percentage points compared to the first quarter of 2012.
Labour expenses stabilised in the first quarter (+0.6%). The average number of
employees declined 1.4% on a comparable basis to 162,241 full time equivalents
in the first quarter of 2013, as opposed to 164,492 in the first quarter of
2012; the ratio of (restated) labour expenses was 22.5%, an increase of 1.1
percentage points compared to the first quarter of 2012.
The other (restated) expenses declined 2.0% in the first quarter of 2013,
compared with a 1.3% increase for the full year of 2012. In particular, the
increase in energy and lease expenses was offset by the decrease in overheads
and savings achieved in connection with network sharing. The ratio of other
expenses to revenues was 19.8%, an increase of 0.4 percentage points compared
to the first quarter of 2012.

CAPEX

CAPEX was 1.150 billion euros in the first quarter of 2013, a 6.5% increase on
a comparable basis, led by investment in networks which rose 9.2% with the
development of strategic projects, including:

  *in France, the ramping-up of optical fibre deployment and the acceleration
    of capital expenditure in high-speed mobile broadband, with 15 urban areas
    including 50 towns already covered by 4G technology and speeds of up to
    150 Mbps;  

  *in Spain, the continuation of mobile network transformation programmes
    with the renewal of the access network and increased investment in
    capacity;

  *in Poland, the delivery of the 1.2 million fixed broadband lines as per
    the agreement with the Polish regulator and the ramping-up of the mobile
    network-sharing programme.

The ratio of CAPEX to revenues was 11.2%, an increase of 1.1 percentage points
compared to the first quarter of 2012.

outlook for 2013

Following the first quarter 2013 results, the Group confirms the operating
cash flow target of more than 7 billion euros (restated EBITDA - CAPEX) for
the full year 2013.
The Group also confirms its target of a return to a net debt / EBITDA ratio of
close to 2 at the end of 2014 to preserve its financial strength and
investment capability.

The Group confirms the payment of the balance of the dividend for 2012, i.e.
0.20 euros per share, which will be paid in cash on 11 June 2013^1. For 2013,
a dividend of at least 0.80 euros per share will be paid^[1]; an interim
dividend payment of 0.30 euros per share will be paid in cash in December.

In addition, the Group will pursue a policy of selective acquisition, while
respecting its net debt / EBITDA target, concentrating on possible
consolidation opportunities in the markets in which it operates.

review by operating segment

France

Revenues in France were 5.068 billion euros in the first quarter of 2013, a
6.1% decrease on a comparable basis. Excluding the impact of regulatory
measures (-151 million euros), revenues declined 3.4%.

Mobile services revenues fell 8.1% on a comparable basis to 2.157 billion
euros. Excluding the impact of regulatory measures (-126 million euros),
mobile services declined 2.9%. The growth of Internet browsing and of national
roaming partially offset the price reductions linked to the overhaul of the
Sosh, Open and Origami segmented offers. ARPU decreased 10.7% in the first
quarter of 2013 after falling 9.0% in the fourth quarter of 2012.
The mobile customer base (contracts and prepaid offers, excluding MVNOs) was
26.829 million customers at 31 March 2013, an increase of 1.3% year on year.
The contract customer base rose 3.8% year on year to 19.789 million customers.
New offers continued their rapid growth: by 31 March 2013, the Sosh online
offers had 1.088 million customers and the Open quadruple-play offers reached
3.438 million customers. Prepaid offers (7.040 million customers at 31 March
2013) declined 5.0% year on year.

Fixed services revenues fell 4.3% on a comparable basis to 2.662 billion euros
(-3.4% excluding the impact of regulatory measures). Traditional telephony
services continued their downward trend (-13.8%). Fixed broadband services had
modest 0.4% growth, affected by the increasing proportion of Open offers in
the fixed broadband customer base.
The fixed broadband customer base rose 2.7% year on year to 9.934 million
subscribers at 31 March 2013. Within this figure, optical fibre showed
accelerated growth with 206,000 subscribers. The fixed broadband net additions
market share was estimated at 15.7% for the first quarter of 2013 as a whole,
with significant improvement in March related to the marketing of the Livebox
Play. Digital TV grew 14.3% year on year to 5.208 million customers at 31
March 2013.
Revenues from carrier services rose 2.5%, excluding the impact of regulatory
measures, due to the increasing number of telephone lines sold to other
carriers (+9.1% year on year, 12.880 million lines at 31 March 2013).

Spain

Revenues in Spain increased 0.8% to 989 million euros. Excluding the impact of
regulatory measures (-23 million euros), revenues rose 3.3% compared to the
first quarter of 2012.

Mobile services (741 million euros) grew 0.8%, excluding the impact of
regulatory measures (-23 million euros). Internet browsing continued to
develop at a fast pace, offsetting the decline in revenues from voice and SMS.
The mobile customer base was 12.179 million customers at 31 March 2013
(including the 398,000 customers from Simyo). Strong growth continued in
customer contract numbers, which rose 9.7% year on year (+748,000 customers)
to 8.493 million customers at 31 March 2013, representing 69.7% of the total
customer base, a year-on-year gain of 3.2 percentage points. Orange Spain
maintained its net positive position on the mobile portability market in the
first quarter of 2013 and launched new and particularly attractive Canguro
convergent offers in early April.
Fixed services grew 16.0% on a comparable basis to 209 million euros, led by
growth in broadband services (+13.3%). The number of broadband subscribers
increased 11.1%year on year to 1.436 million customers at 31 March 2013. The
share of fully unbundled ADSL subscribers grew strongly to 69.7% of the total
customer base at 31 March 2013, a year-on-year increase of 6.7 percentage
points.

Poland

Revenues in Poland declined 7.2% on a comparable basis to 786 million euros.
Excluding the impact of regulatory measures (-35 million euros), the decline
was limited to 3.2% following a decline of 4.2% in the fourth quarter 2012.
This improvement was mainly related to the growth of fixed broadband services
and ICT^[2].

Mobile services (369 million euros) fell 9.7% on a comparable basis. Excluding
regulatory measures (-31 million euros), revenues declined -2.2%. The mobile
customer base was 14.886 million customers at 31 March 2013 (excluding MVNOs),
a 1.9% increase led by 3.8% growth in prepaid offers (7.981 million customers
at 31 March 2013). The recently marketed Orange Open multi-play offers are
already successful, with 72,000 customers at 31 March 2013.

Fixed services (374 million euros) declined 7.3% on a comparable basis and
6.5% excluding the impact of regulatory measures reflecting the downward trend
in traditional telephony (-16.6%).
Fixed broadband revenues rose 9.3%, led by the increase in ARPU with the
growth of multi-play offers. The number of VoIP customers grew sharply in one
year, rising 89.5% to 440,000 customers at 31 March 2013, while the number of
digital TV customers rose 5.4% to 699,000 customers at 31 March 2013. At the
same time, the number of fixed broadband customers remained stable over the
year, with 2.333 million customers at 31 March 2013.

Rest of World

The Rest of World segment reported revenues of 1.934 billion euros in the
first quarter of 2013, up 0.7% on a comparable basis. Excluding the impact of
regulatory measures (-41 million euros), quarterly revenues rose 2.9%.

In Africa and the Middle East, revenue growth (+3.3% excluding the impact of
regulatory measures) was led by Côte d'Ivoire, Senegal, Guinea and Niger;
Egypt increased 1.5%.
The mobile customer base in Africa and Middle East grew 8.2% year on year to
81.980 million customers at 31 March 2013, representing 6.2 million additional
customers. The principal contributors were Mali, Senegal, Cameroon and Guinea;
Egypt had 32.9 million customers at 31 March 2013 (+1.0% year on year). Orange
Money, marketed in thirteen African and Middle Eastern countries, had 6.6
million customers at 31 March 2013, an increase of 2.9 million customers year
on year.

In Europe, revenues rose 2.6%, excluding the impact of regulatory measures,
helped by the continued growth of mobile Internet browsing and the rise in
smartphone sales, partially offsetting the decline in prices due to the
overhaul of mobile services offers. Excluding the impact of regulatory
measures, mobile services in Belgium declined 2.8% after rising 0.9% in 2012;
they improved 1.3% in Romania, after falling 0.3% in 2012; and in Slovakia,
the decline continued, down 5.8% after decreasing 5.0% in 2012. Excluding the
impact of the Orange Austria disposal, the mobile customer base in Europe
(19.7 million customers at 31 March 2013) rose 1.3% year on year, led by 4.7%
growth in contract customer numbers (+452,000 additional customers,
principally in Romania, Belgium and Armenia).

In the Dominican Republic, revenues continued their steady rise (+4.2%
excluding the impact of regulatory measures), helped by the strong growth of
Internet browsing. There were 3.330 million mobile customers at 31 March 2013,
a 5.4% increase year on year.

Enterprise

Revenues in the Enterprise segment fell 5.3% on a comparable basis to 1.635
billion euros in the first quarter of 2013, versus a 2.7% decrease in 2012,
due to greater competitive pressure and difficult economic conditions in
Europe.

The service operations (412 million euros) fell 4.1% after rising 1.0% over
the full year of 2012. Specifically, the integration of services and unified
communication and collaboration services, which had been growing steadily,
registered a downturn in the first quarter of 2013 in Europe. Conversely,
cloud computing services reported strong growth (+28%), as did security
solutions^[3], which also rose 28%.

Growing networks (100 million euros) reported an increase of 2.5%, led by
Voice over IP (+5.8%) and satellite access (+2.9%). Imaging services fell
3.8%, with difficult market conditions continuing.

Mature networks (681 million euros) declined 0.5% compared to the first
quarter of 2012, marked by the slowdown of IPVPN growth due to price
reductions, partially offset by the rise in volume. Broadcast services fell
2.5%.

Legacy networks (443 million euros) declined 14.2% after falling 13.4% over
the full year of 2012. The effect of price reductions accentuated the downward
trend of fixed telephony and legacy data services with the migration towards
IP solutions.

schedule of upcoming events

  *25 July 2013: first half 2013 results

contacts

press: 01 44 44 93 93         financial communications: 01 44 44 04 32
                              (analysts and investors)
Béatrice Mandine
beatrice.mandine@orange.com   Patrice Lambert-de Diesbach
                              p.lambert@orange.com
Jean-Bernard Orsoni
jeanbernard.orsoni@orange.com Corentin Maigné
                              corentin.maigne@orange.com
Sébastien Audra
sebastien.audra@orange.com    Jérôme Blin
                              jerome.blin@orange.com
Tom Wright
tom.wright@orange.com         Constance Gest
                              constance.gest@orange.com
Olivier Emberger
olivier.emberger@orange.com   Didier Kohn
                              didier.kohn@orange.com
Mylène Blin
mylène.blin@orange.com        Florent Razafi
                              florent.razafi@orange.com

All press releases are available on the Group's websites:

           *www.orange.com

           *www.orange.es

           *www.everythingeverywhere.com

           *www.tp-ir.pl

           *www.orange-business.com

disclaimer

This press release  contains forward-looking statements.  Although we  believe 
these forward-looking statements  are based on  reasonable assumptions,  they 
are subject to  numerous risks  and uncertainties, including  matters not  yet 
known to us or  not currently considered  material by us and  there can be  no 
guarantee that anticipated events  will occur or that  the objectives set  out 
will actually be achieved. Important  factors that could cause actual  results 
to differ  materially  from the  results  anticipated in  the  forward-looking 
statements include, among others: our ability to withstand intense competition
within  our  sector  and  to  adapt  to  the  ongoing  transformation  of  the 
telecommunications industry, in particular in  France with the arrival on  the 
market of a fourth mobile operator; fluctuations in general economic  activity 
levels and  in the  level of  activity  in each  of the  markets in  which  we 
operate; the  political  situation  in  the countries  where  we  invest;  the 
emergence of new powerful  players, such as content  and service suppliers  or 
search engines;  our ability  to obtain  a return  on our  investments in  the 
networks; fiscal  and  regulatory  constraints  and  changes;  conditions  for 
accessing the capital markets, in particular risks related to financial market
liquidity; exchange rate or  interest rates fluctuations; asset  impairements; 
and results of current litigation. More detailed information on the  potential 
risks that could affect our financial results can be found in the Registration
Document filed with the French Autorité des marchés financiers (AMF) on  March 
27, 2013 and in the annual report on Form 20-F filed with the U.S.  Securities 
and Exchange Commission on  April 12, 2013. Except  to the extent required  by 
law (in  particular  pursuant  to  sections  223-1  et  seq.  of  the  General 
Regulations  of  the  AMF)  France  Telecom-Orange  does  not  undertake   any 
obligation to update forward-looking statements.

appendix 1: revenues by operating segment

                                                                          
                                                                         
                            1^rst      1^rst      1^rst     change     change
                           quarter    quarter    quarter
                            2013      2012      2012 comparable historical
                                  comparable historical      basis      basis
In millions of euros                    basis      basis
                                                              
France                      5,068     5,399     5,401     (6.1)%     (6.2)%
Mobile services             2,157     2,347     2,347     (8.1)%     (8.1)%
Mobile equipment sales        119       123       123     (3.5)%     (3.5)%
Fixed services              2,662     2,781     2,781     (4.3)%     (4.3)%
    Fixed services retail   1,759     1,876     1,876     (6.2)%     (6.2)%
    Fixed wholesale           903       905       905     (0.3)%     (0.3)%
Other revenues                131       148       150          -          -
Spain                         989       981       981       0.8%       0.8%
Mobile services               741       759       759     (2.3)%     (2.3)%
Mobile equipment sales         36        38        38     (6.1)%     (6.1)%
Fixed services                209       180       180      16.0%      16.0%
Other revenues                  4         5         5          -          -
Poland                        786       847       832     (7.2)%     (5.5)%
Mobile services               369       408       394     (9.7)%     (6.4)%
Mobile equipment sales          8         8         8     (5.2)%     (3.5)%
Fixed services                374       403       396     (7.3)%     (5.6)%
Other revenues                 35        27        34          -          -
Rest of World               1,934     1,920     2,134       0.7%     (9.3)%
    of which Egypt            290       286       319       1.5%     (9.1)%
Enterprise                  1,635     1,726     1,734     (5.3)%     (5.7)%
Legacy networks               443       516       497    (14.2)%    (10.9)%
Mature networks               681       684       709     (0.5)%     (4.0)%
Growing networks              100        97        97       2.5%       2.3%
Services                      412       429       431     (4.1)%     (4.5)%
International Carriers        407       409       410     (0.4)%     (0.8)%
and Shared Services
International Carriers        336       352       352     (4.6)%     (4.6)%
Shared Services                71        56        58      25.8%      22.9%
Inter-segments               (539)      (561)      (569)         -         -
eliminations
Group total                10,280    10,721    10,922     (4.1)%     (5.9)%

change in the presentation of operating segments

In light of the merger between Orange France (the mobile operations in France)
and France Telecom SA, approved by the Board of Directors on 23 April 2013,
the Group is simplifying the reporting format of operations in France in its
quarterly, half-year and annual publications. Revenues reported in the
operating segments of Spain and Poland follow this same format.

Revenues

As from the publication of the first quarter 2013 results, the presentation by
operating sub-segment used until now, i.e.:
personal communication services
home communication services
inter-segment eliminations 

has been replaced by a presentation by product line, which eliminates
inter-sub-segment flows, and allows for a better reading of trends in mobile
services and fixed services:
mobile services
sales of mobile equipment
fixed services
other

In addition, in France, the discounts linked to convergent Open quadruple-play
offers, previously reported only for mobile services, are now broken down
between mobile services and fixed broadband services.

EBITDA and CAPEX

As part of the growing integration of fixed and mobile operations,
corresponding with the customs of most of the other European operators, it was
decided to show overall EBITDA and CAPEX for each of the operating segments in
the half-year and annual publications, and not to report information related
to the former sub-segments.

appendix 2: analysis of consolidated EBITDA

                                                 
                                     1^rst quarter    1^rst quarter     change
                                            2013            2012 comparable
In millions of euros                              comparable basis      basis
                                                                          
Revenue                                    10,280          10,721     (4.1)%
External purchases                         (4,451)          (4,666)     (4.6)%
in % of revenues                             43.3%            43.5%    (0.2)pt
of which:
   Purchases from and fees paid to         (1,252)          (1,390)    (10.0)%
   carriers
   in % of revenues                          12.2%            13.0%    (0.8)pt
   Other network expenses and IT             (707)            (699)       1.0%
   costs
   in % of revenues                           6.9%             6.5%      0.4pt
   Overheads, property, other
   external expenses and capitalized         (936)            (968)     (3.2)%
   production
   in % of revenues                           9.1%             9.0%      0.1pt
   Commercial expenses and content         (1,556)          (1,609)     (3.3)%
   purchases
   in % of revenues                          15.1%            15.0%      0.1pt
Labour expenses                          (2,316)          (2,303)       0.6%
in % of revenues                             22.5%            21.5%      1.1pt
Operating taxes and levies                 (433)            (438)     (1.3)%
Other operating income and expenses            59              26         -
Gains (losses) on disposals of                 (4)               9         -
assets
Restructuring expenses                        (11)              (3)         -
Restated EBITDA*                            3,124           3,346     (6.6)%
in % of revenues                             30.4%            31.2%    (0.8)pt

* EBITDA restatements relate to the following exceptional events:

A total negative amount of 26 million euros in the first quarter of 2013
including:

  *an expense of 39 million euros related to the Part Time for Seniors plan
    (TPS) in France;

  *income of 65 million euros related to the disposal of Orange Austria.

A total positive amount of 115 million euros in the first quarter of 2012 for:

  *an expense of 90 million euros for a dispute related to the business tax
    in France for the 1999 to 2002 period;

  *an expense of 25 million euros related to the Part Time for Seniors plan
    (TPS) in France and other items related to labour expenses.

appendix 3: key performance indicators of France Telecom-Orange

                                                   31 March 2013 31 March 2012
France Telecom-Orange Group
Total number of customers* (millions)                   229.847      223.932
Mobile services customers* (millions)                   171.800      165.151
 - of which contract customers (millions)               57.758       53.624
Fixed services customers (millions)                      14.994       14.557
 - of which IPTV and satellite TV customers
(millions)                                                6.043        5.349
France
Mobile services
Number of customers* (millions)                          26.829       26.475
 - of which contract customers (millions)               19.789       19.066
Total ARPU (euros)                                          323          361
Fixed services
Consumer Market
Number of fixed line subscribers (millions)              17.387       18.281
 - of which naked ADSL** customers (millions)            5.762        4.993
Number of broadband customers at end of period
(millions)                                                9.934        9.671
Broadband market share at end of period (%)             41.0***         41.9
Broadband ARPU (euros)                                      34.5         34.6
Number of IPTV and satellite TV customers
(millions)                                                5.208        4.555
Carrier market
Total number of fixed lines in the Carriers market
(millions)                                               12.880       11.810
 - of which total unbundling (millions)                 10.287        9.277
Spain
Mobile services
Number of customers* (millions)                          12.179       11.632
 - of which contract customers (millions)               8.493        7.745
Total ARPU (euros)                                          255          269
Fixed services
Number of ADSL broadband customers (millions)             1.436        1.293
Number of Voice over IP customers (thousands)             1,000          814
Broadband ARPU (euros)                                     33.1         32.6
* Excluding customers of MVNOs.    ** See
glossary.   *** Company estimate.

                                                   31 March 2013 31 March 2012
Poland
Mobile services
Number of customers* (millions)                          14.886       14.613
 - of which contract customers (millions)                6.906        6.927
Total ARPU (PLN)                                            458          488
Fixed services
Total number of fixed telephone lines (millions)          6.205        7.030
Number of ADSL broadband customers (millions)             2.333        2.348
Number of IPTV and satellite TV customers
(thousands)                                                 699          663
Broadband ARPU (PLN)                                        57.5          55.1
Rest of World
Mobile services
Total number of customers* (millions)                   105.034       99.186
 - of which contract customers (millions)               15.690       13.389
Number PCS customers by region (millions)
Europe                                                   19.699       20.215
Africa and Middle East                                   81.980       75.766
Other operations                                          3.356        3.205
Fixed services
Total number of telephone lines (thousands)               2,040        2,137
- of which Europe (thousands)                              682          682
- of which Africa and Middle East (thousands)            1,354        1,449
- of which Other operations (thousands)                      4            6
Number of broadband customers at end of period
(thousands)                                                 943          888
- of which Europe (thousands)                              181          165
- of which Africa and Middle East (thousands)              761          721
- of which Other operations (thousands)                      1            2
Enterprise
France
Number of legacy telephone lines (thousands)              3,586        3,920
Number of permanent accesses to IP networks
(thousands)                                                 349          343
 - of which IP-VPN (thousands)                             282          275
Number of XoIP connections (thousands)                       69           61
World
Number of IP-VPN accesses \ world (thousands)               327          320
Everything Everywhere (United Kingdom) **
Mobile services
Number of customers* (millions)                          25.742       26.491
 - of which contract customers (millions)               13.759       12.993
Total ARPU (GBP/month, based on quarterly
revenues)                                                  18.2         18.7
Fixed services
Number of broadband customers (thousands)                   694          713
* Excluding customers of MVNOs
** The Everything Everywhere customer bases are
50% consolidated in the France Telecom-Orange
customer bases.

appendix 4: glossary

Key figures

comparable basis: data based on comparable accounting principles,
consolidation scope and exchange rates are presented for previous periods. The
transition from data on an historical basis to data on a comparable basis
consists of keeping the results for the period ended and then restating the
results for the corresponding period of the preceding year for the purpose of
presenting, over comparable periods, financial data with comparable accounting
principles, consolidation scope and exchange rates. The method used is to
apply to the data of the corresponding period of the preceding year, the
accounting principles and scope of consolidation for the period just ended as
well as the average exchange rate used for the income statement for the period
ended.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization. This
indicator corresponds to operating income before depreciation and
amortization, before revaluation related to acquisitions of controlling
interests, before reversal of currency translation reserves of liquidated
entities, before impairment of goodwill and assets, and before income from
associates. EBITDA is not a financial performance indicator as defined by the
IFRS standards and is not directly comparable to indicators referenced by the
same name in other companies.

CAPEX: capital expenditure on tangible and intangible assets excluding
telecommunication licenses and investments through finance leases.

operating cash flow: corresponds to restated EBITDA minus CAPEX. France
Telecom-Orange uses this indicator to measure the Group's performance in
generating cash flow from its operating activities.

average number of employees (full time equivalents): average number of active
employees on the last day of the period, prorated for their work time,
including both open-permanent contracts and fixed-term contracts.

Mobile services

revenues from mobile services: include revenues generated by incoming and
outgoing calls (voice, SMS and data services), network access fees,
added-value services, machine to machine, roaming revenues from customers of
other networks (national and international roaming), revenues with mobile
virtual network operators (MVNO) and revenues from network sharing.

mobile ARPU: the annual average revenues per user (ARPU) are calculated by
dividing the revenues from incoming and outgoing calls (voice, SMS and data
services), network access fees, added-value services and international roaming
over the past twelve months, by the weighted average number of customers over
the same period, excluding "machine to machine" customers. The weighted
average number of customers is the average of the monthly averages during the
period in question. The monthly average is the arithmetic mean of the number
of customers at the start and end of the month. PCS ARPU is expressed as
annual revenues per customer.

roaming: use of a mobile service on the network of an operator other than that
of the subscriber.

MVNO: Mobile Virtual Network Operator. These are operators that do not have
their own radio network and thus use the infrastructure of third-party
networks.

mobile number portability: allows mobile customers to keep their mobile
numbers when they change operators. The donor operator deactivates the mobile
number in its information system; the recipient operator actives the same
mobile number in its own information system and the donor operator
acknowledges the transfer and updates its own information system. 

Fixed services

revenues from fixed services: include traditional fixed telephony, fixed
broadband services, enterprise solutions and networks^[4] and carrier services
(national and international interconnections, unbundling and wholesale
telephone line rentals).

fixed broadband ARPU (ADSL, FTTH, satellite and WiMAX): the average revenues
per user of broadband services per year are calculated by dividing the
revenues generated by consumer broadband services over the past twelve months
by the weighted average number of accesses over the same period. The weighted
average number of accesses is the average of the monthly averages during the
period in question. The monthly average is the arithmetic mean of the number
of accesses at the start and end of the month. Broadband ARPU is expressed as
monthly revenues per access.

naked ADSL: the naked ADSL access offer is aimed at subscribers who do not
wish to keep a standard, separate telephone contract. In France and Poland,
France Telecom-Orange also offers wholesale naked ADSL to other carriers,
allowing their customers, especially those residing in areas where total
unbundling is unavailable, to dispense with the traditional telephony
subscription.

[1]Subject to approval by the Annual General Meeting of Shareholders. For the
balance of the interim dividend for 2012: the ex-dividend date is 6 June 2013;
the record date is 10 June 2013.
[2]Information and Communication Technologies (the sale and installation of
equipment).
[3]Protection and security of enterprise data and networks.
[4]With the exception of France, where entreprise solutions and networks are
listed under the Enterprise business segment.

FT Orange: positive results from operational efficiency

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: FRANCE TELECOM via Thomson Reuters ONE
HUG#1695642