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AREVA GROUP ANNOUNCES FRIENDLY PUBLIC TENDER OFFER FOR REPOWER SYSTEMS AG - Conference Call - Final.

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Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good day ladies and gentlemen, and welcome to today's AREVA conference call. For your information this conference is being recorded. At this time I would like to hand the call over to your host today, Miss. Anne Lauvergeon, Chief Executive Officer of AREVA. Please go ahead madam.

ANNE LAUVERGEON, CEO, AREVA GROUP: Good morning ladies and gentlemen. My name is Anne Lauvergeon and I am the Chief Executive Officer of AREVA.

Thank you for joining us today following the announcement earlier this morning of our public tender Offer for REpower Systems AG, the wind turbine manufacturer based in Hamburg. Our Offer is voluntary in cash and friendly.

Please note that this presentation and today's press release are available on our dedicated website www.repowerareva.com. I shall be speaking in English, and with my colleagues, will be very happy to answer your questions following this presentation.

The presentation itself consists of a brief overview of AREVA, an outline of our vision and commitment relating to renewable energy, the reasons why we have chosen to bid for REpower and the details of our Offer.

Starting with a brief description of AREVA for those of you who may not know our Group well. AREVA is a worldwide provider of solution for CO2-free power generation and electricity transmission and distribution. Today we have 60,000 employees and operate in more than 40 countries. We have a strong and long-established industrial presence in Germany; a presence that was significantly strengthened following the merger of Siemens Nuclear activities with those of Framatome in 2001.

Roughly 10% of our EUR10b plus worldwide sales are in Germany. And in terms of people we currently employ around 6,500 in Germany, which make it the second most important country in the AREVA Group, just ahead of the U.S.

Slide five. Our focus is on energy solutions and technologies. Positioned in the two major investment areas of our customers, generating capacity and electric mix on the one hand, and transmission and distribution infrastructure on the other, we work very closely with them to address their strategic, long-term challenges. Inevitably, this close collaboration creates strong connections; relationships that will be of great benefit for REpower.

Next slide. We are the world leader in the nuclear energy business and the third largest player in electricity transmission and distribution. AREVA is an international Group and this is reflected in the strong sales that we have achieved in The Americas, in Asia and in Europe. This global reach will open new and exciting opportunities for REpower in those markets where they are not yet established.

Next slide. AREVA financials for 2006 will be published in March. But, as you can clearly see from this chart, we are a strong Group and financially very robust. At the end of last year's first half, our net cash position was nearly EUR0.5b, and we can easily monetize over EUR2b of financial assets. Funding this operation will not be an issue.

Similarly, our financial strength means that we are in a position to make those investments necessary to accelerate the development of REpower. And it is important to note that, in the contracting business, a strong balance sheet is extremely important. Having a financially robust partner that make -- can make all the difference in winning new clients.

Next slide. As you all know, energy demand is increasing on a global level. By 2030 the demand for energy will have doubled and, at the same time, we have to half the level of CO2 emissions.

Next slide. Renewable energy partly addresses the damaging effects of climate change. Last year our Group set out several long-term objectives to be achieved by 2010/2011. One of these was to acquire greater market share in CO2-free power generation. Our Offer for REpower is a clear illustration of our commitment to that objective. It demonstrates the consistency and the sustainability of our strategy.

Next slide. We made our initial strategic investment in REpower in 2005 after a very important global survey. The following year we created our Renewable Energy business unit. The division focuses on developing new sources of clean energy, such as biomass and fuel cells. Renewable energy represents significant opportunities in the medium term and in the long term, and the growth potential is significant.

Next slide. REpower is a technological leader in the wind turbine field. Their new MM92 turbine is considered "best in class", the most economic machine in the 2 megawatt class worldwide. And their 5 megawatt turbine is a clear leader in offshore applications. Together, the management and employees of REpower have built the Company into the third largest manufacturer in Germany, and they have also been successful in penetrating markets elsewhere in Europe and in Asia. And we think that REpower and AREVA is a winning combination.

Next slide. With AREVA's financial backing, REpower will gain access to new market opportunities. Being in a position, for example,...

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