Equant/Global One will be an industry leader with a unified global network, critical mass of customers and traffic, and increased financial strength for accelerated growth.

Equant to acquire the data business of Global One from France Telecom in exchange for newly issued Equant shares;

France Telecom to acquire the SITA Foundation’s interest in Equant in exchange for existing France Telecom shares;

Equant/Global One to gain full control of the SITA-Equant network. SITA will continue to serve the Air Transport Community through a new long-term strategic agreement with Equant/Global One;

France Telecom to accelerate Equant/Global One’s growth strategy by investing USD 1.0 billion through newly issued Equant voting preferred shares, convertible into Equant ordinary shares;

Equant public shareholders to receive Contingent Value Rights from France Telecom.

As a result of these transactions, France Telecom will become the majority shareholder of Equant with a 54.3 percent stake. Equant/Global One, with approximately 3,700 large business customers – including more than three-quarters of the world’s top 100 companies and pro forma annualized revenues of USD 2.5 to 3 billion for the year 2000, will continue to be listed in Paris and New York.

Equant and Global One Combine to Define Next-Generation Business Communications

The combination of the marketing strengths and entrepreneurial spirit of Equant and Global One in an organization with critical mass and true global reach, backed by France Telecom, will position the business to deliver considerable value to business customers around the world. It signals a new stage in the continued development of Equant, combining full control of its existing network with the significant expansion of its global infrastructure. The business will market to the combined customer bases of Global One and Equant, with the benefit of access to the worldwide resources of France Telecom.

For France Telecom, the transaction marks a significant step in the continued development of its global strategy for the corporate marketplace and signals the significant expansion of a core business area, earmarked for future growth.

Michel Bon, Chairman and CEO of France Telecom commented: This is a considerable step forward in France Telecom’s international strategy to create a powerful force in the global data and IP market, offering customers a more extensive network and expanded range of services. The combined business will have the geographical presence, financial strength, management resources and technical capabilities to guarantee long-term success in a rapidly growing market. This transaction will bring substantial benefits for France Telecom and its shareholders, and for the employees and customers of Equant and Global One.

Didier Delepine, President and CEO of Equant commented: These agreements provide Equant with additional scale, network control and significant financial resources. With these developments and the benefits of access to the strengths of France Telecom, we can accelerate our growth strategy and further position ourselves as a pre-eminent provider of data network solutions. We will continue to provide advanced, reliable and secure data networking products and services to multinational corporations around the world. Shareholders, as well as customers and employees of both companies, will benefit from the efficiencies gained by combining Equant and Global One, two leaders in global data communications.

John Watson, Director General of SITA commented: We are delighted to have concluded a new strategic agreement with Equant and France Telecom. It will allow us to provide enhanced and more cost effective services to our customers in the Air Transport Community and to provide them with the benefits derived from the combination of Equant and Global One, and the new relationship with France Telecom.

Leadership position

Equant/Global One will provide multinational business customers with:

Global reach. Equant/Global One will have the world’s most extensive and seamless network reaching key business centers in more than 220 countries and territories. Customers will receive global-local support in 145 countries. · Network strength. Equant/Global One will own and control a homogeneous network of switches and routers, supported by a 24-hour, seven-day single point of control. It will also have access to France Telecom’s worldwide network infrastructure, including the European and North American backbones. · Extensive product portfolio. Equant/Global One will offer one of the most extensive product portfolios with IP; frame relay; ATM; corporate voice; integrated voice and data; integration, hosting, application and professional services. The integrated company has the technical experience and resources needed for the accelerated development of value-added applications and next-generation products. Through its relationship with France Telecom, Equant/Global One will also have a unique ability to offer integrated mobile and fixed data services. · Unmatched distribution capabilities. Equant/Global One will combine the existing Equant and Global One distribution channels worldwide including France Telecom’s agreements with its foreign subsidiaries and affiliated domestic operators. The combination will generate significant revenue opportunities as the enlarged company delivers its services across a much broader platform and leverages the combined distribution channels. In addition, Equant/Global One will benefit from France Telecom’s outstanding distribution channels in France. · Market-facing, customer-focused service. The well-established market presence of the Equant and Global One brands will be enhanced by the combination. Equant/Global One expects to provide its new enlarged customer base with increasing levels of service through the application of best practices across the new group. · Strong and deep vertical industry partnerships. Equant/Global One will continue to aggressively pursue a partnership policy through vertical community agreements in multiple sectors, ensuring a stable customer base and stream of revenue over several years. In particular, the company’s network services will be made available to the air transport community through SITA. Similar community-of-interest agreements in other sectors are currently under consideration. · Financial strength. Equant/Global One will be well positioned, with the USD 1.3 billion of new cash providing the financial resources to fund the company’s development strategy and the means to meet customers’ rapidly developing service requirements.