At their Annual General Meeting of May 26, 2009, France Telecom shareholders voted in favor of a 2008 dividend of €1.40 per ordinary share, with the option of a share-based dividend.

Due to the €0.60 interim dividend paid on September 11, 2008, the balance to be paid on June 30, 2009 amounts to €0.80. Shareholders have the option to receive 50% of the balance in shares, ie. €0.40, with a share reference price of €16.01. France Telecom issued a press release describing the characteristics of this option on May 27, 2009.

The option period closed on June 23, 2009. Shareholders representing more than half of the share capital have chosen the option of a share-based dividend, thus showing their faith in France Telecom's Group strategy. Accordingly, 33,600,122 new ordinary shares will be issued and delivered with effect from June 30, 2009.

These new shares will be listed on the Eurolist market of NYSE Euronext Paris stock exchange under the same ISIN code as the existing shares.

France Telecom’s share capital will be increased from €10,459,964,944 to €10,594,365,432, divided into 2,648,591,358 shares of €4.00 each, fully paid-up.

This press release is not an offer to sell securities or the solicitation of an offer to buy securities in any jurisdiction, including the United States, Japan, Australia, Canada, Spain, United Kingdom, Germany or Italy.