PRESS RELEASE

CADES has mandated IXIS CIB and NATEXIS BANQUES POPULAIRES as lead-managers of its new French-inflation-indexed benchmark issue of €1.25 billion. The transaction will enable CADES to maintain its presence in the French-inflation-indexed bond market and to complete its programme of raising €27 billion in 2006, while strengthening the diversification of its investor base. Upon transaction completion, CADES will have raised €11.5 billion in the capital markets since 1 January 2006 .

CADES’ latest bond issue, which was particularly well received by European investors, was oversubscribed in less than 24 hours. The transaction’s success was notably ensured by strong interest from French investors (owing to the fact that the issue is indexed to French inflation) rounded out by the presence of UK and German investors. The issue was taken up by a total of 24 investors, comprising insurers, banks and asset managers, the majority of these being "buy-and-hold" long-term asset investors.

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Your Primary Bond Market Contacts

IXIS CIB Natexis Banques Populaires

Laurent Lagorsse : +33 1 58 55 08 14 Karim Mezani : +33 1 53 40 36 37