CADES taps up its inflation-linked bonds due in 2013 and 2019

PRESS RELEASE

CADES has decided to tap up two of its bonds indexed to French inflation and due in 2013 and 2019, respectively. Joint bookrunners for these tap-ups are BARCLAYS CAPITAL, IXIS CIB and NATEXIS BANQUES POPULAIRES

CADES issued its first bond indexed to French inflation (ex-tobacco) on March 17, 1999. The 1.5 billion euro bond due July 25, 2013, which offers a coupon rate of 3.15%, has already been tapped up six times since it was issued. The latest tap-up, for 200 million euros, brings the total outstanding to 3.1 billion euros.
The offer price was set at 113,116 %.

On November 24, 2004, CADES issued a new euro bond indexed to French inflation (ex-tobacco) for an initial face value of approximately 1 billion euros, due in 2019. This issue is being tapped up for the second time by 200 million euros, bringing the total outstanding to 1.5 billion euros.
The offer price was set at 104,42 %.

To date, CADES has issued inflation-indexed debt totaling 10.85 billion euros.

The first French inflation-indexed bond issued by CADES, which has a face value of 3.7 billion euros, falls due in July 2006.

CADES: A BENCHMARK ISSUER IN THE EUROPEAN MARKET

Created in 1996, CADES is an administrative public agency under the authority of the French government. CADES enjoys 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 .