CADES, 10 years US$ 1.25 BLN.

PRESS RELEASE

Caisse d’Amortissement de la Dette Sociale ( CADES ), (Aaa/AAA/AAA) yesterday successfully launched and priced a US$1 billion 5.375% Eurobond benchmark due 17 July 2012, at a re-offer price of 99.770%, to give a spread of Treasury 4.875% June 2012 +38bps. The issue was joint-lead managed by Deutsche Bank, Lehman Brothers and Royal Bank of Scotland . This transaction is the first USD benchmark transaction of 2007 for CADES following a successful 10 year Euro transaction in March.

The summary terms and conditions are as follows:

Rating:	Aaa/AAA
Issue amount:	USD 1billion
Payment Date:	17 July 2007
Coupon:	5.375% (annual)
Maturity:	17 July 2012
Reoffer Price:	99.770%
Reoffer Yield:	5.428% (annual)

Books opened on Monday July 09, capitalizing on attractive market conditions for sov-supra-agency products and positive feedback from key target investors.

Given the sell-off in UST market post payrolls international investors were actively seeking new attractive investment alternatives, like CADES , in order to maximize returns.

The transaction saw robust European/Middle East and Asian order flow with active interest from high quality and real money accounts.

Launched at UST +37area, the pricing was revised on Tuesday at UST +38bp to reflect the move wider in swap spreads, thus ensuring the relative value of the transaction remained intact (equating to Mid Swaps – 18 bps). 69% of the deal was placed with from official institutions followed by active interest from banks (20%) and insurance/corporate/funds (11%). In terms of geographic placement Europe/Middle East led the way accounting for 66% of the deal, 10% being placed in North America while Asia represented 24%

Distribution Stats:

By Region	By Investor Type
66% Europe / Middle East	69% Official Institutions / Central Banks
10% North America	20% Banks
24% Asia	11% Insurance/Corporate/Funds

Caisse d’Amortissement de la Dette Sociale ( CADES ), a wholly state-owned entity created in 1996, was established to refinance the accumulated deficit of the French general social security system. CADES is funded through a specially created tax levied on almost all the revenues received by private individuals in France . The protective legal status of CADES , its well-defined role, solid tax revenues and the clear involvement of the French State, support the Aaa/AAA/AAA ratings assigned to its long-term debt obligations by Moody’s, Standard & Poor’s and Fitch respectively. All three ratings have been confirmed following the increase in the social security debt burden assumed by CADES and the extension of its lifespan resulting from the health care reforms of August 2004. CADES ’ obligations are 0% risk-weighted for BIS capital adequacy purposes.

CADES: A BENCHMARK ISSUER IN THE FINANCIAL MARKETS

Created in 1996, CADES is an administrative public agency placed directly under the joint authority of the French Economic and Finance and Social Security Ministries

Its mission is to pay down the debt accumulated by the general Social Security system between 1994 and 2006, a total of 107.7 billion euros, via a balanced financial structure and drawing primarily on a dedicated and exclusive resource (the CRDS tax). A quasi-sovereign issuer, CADES enjoys benchmark status in the international capital markets. It has been awarded the highest ratings by the principal international rating agencies (AAA/A1+, Aaa/P1, AAA/F1+), and a 0% Basel ratio weighting, which makes CADES one of the five largest non-government issuers in Europe .

CADES
LIGHTEN THE DEBT – BRIGHTEN THE FUTURE