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Orange enters into exclusive negotiations with Dailymotion with a view to acquiring a 49% stake in its capital

Paris, January 25, 2011

Once the operation has been approved:

Orange will take a 49% share in Dailymotion for 58.8 million euros

Dailymotion, the 2nd largest online video site worldwide will provide Orange with the opportunity to develop a complete multi-screen video offer

Orange has entered into exclusive negotiations with Dailymotion with a view to acquiring a 49% stake in the online video site. Beginning in 2013, the project allows Orange a progressive capital increase to 100% and also allows for the integration of new business partners. The signature of the final agreement should be reached in the coming months that will enable both parties to optimize their video services and enrich their respective offers.

This operation fully illustrates Orange’s content strategy, which aims to benefit its customers by building on the Group’s role as an aggregator and broadcaster of content through the development of strong partnerships. This strategy was exhibited in other recent announcements in areas such as the press, publishing and music businesses, e.g., through the launch of Read and Go and through Orange's partnership with Deezer.

This project is strategic for Orange insofar as the Dailymotion video platform will immediately provide the Group with a solution that can meet the increase in its customers’ video use across all connected screens (via internet, WiFi or 3G). The operation will also enable Orange to accelerate its multi-screen strategy by anticipating the growth in high definition, 3D and continuity across all screens.

Video content, like social networks, has become a core product in the digital world. In the United States, the average time spent on Internet videos is now more than 12 hours a month per web user. In France, one out of three smartphone owners watches videos each week. With a billion videos watched each month and 93 million unique visitors, in six years Dailymotion has developed the know-how, ability and technological expertise that make it a leading player worldwide and a flagship brand in online video.

For Dailymotion, this project represents an opportunity to enrich its content offer and to benefit from Orange's innovation and marketing skills in order to extend its services across all digital screens for all users. With an already strong international presence and 80% of its users located outside France, Dailymotion will be able to accelerate its growth internationally using the presence of the Orange group in 32 countries. Orange will also reach a critical size in the field of audience and online services.

This operation will be subject to consultation with staff representative organizations, as required by French law.

Stéphane Richard, the CEO of France Telecom-Orange, stated: “This operation once again illustrates the role that Orange intends to play in the content value chain. Although we are no longer publishers ourselves, we are strengthening our position in the fields of aggregation and distribution. We will provide our customers with an enriched and innovative video offer combining Dailymotion’s know-how and diversity of content with the quality of our networks across all connected screens. Our role is to support our customers in this digital revolution - we would like to bring them into the 'Cloud Video’ world where Dailymotion is a major player.”

Cédric Tournay CEO of Dailymotion, stated: “We are delighted with this agreement as it will bring Dailymotion into a new era of development, six years after it was founded. This relationship offers many synergies and opportunities, particularly in the technology area. It will empower Dailymotion to build new services, enrich its content selection and continue its aggressive audience growth across the world.”

About Orange

France Telecom-Orange is one of the world’s leading telecommunications operators with 170,000 employees worldwide, including 102,000 employees in France, and sales of 22.6 billion euros in the first semester 2011. Present in 35 countries, the Group had a customer base of 217.3 million customers at 30 June 2011, including 143 million customers under the Orange brand, the Group's single brand for internet, television and mobile services in the majority of countries where the company operates. At 30 June 2011, the Group had 158.3 million mobile customers and 14 million broadband internet (ADSL, fibre) customers worldwide. Orange is one of the main European operators for mobile and broadband internet services and, under the brand Orange Business Services, is one of the world leaders in providing telecommunication services to multinational companies.

With its industrial project, "conquests 2015", Orange is simultaneously addressing its employees, customers and shareholders, as well as the society in which the company operates, through a concrete set of action plans. These commitments are expressed through a new vision of human resources for employees; through the deployment of a network infrastructure upon which the Group will build its future growth; through the Group's ambition to offer a superior customer experience thanks in particular to improved quality of service; and through the acceleration of international development
France Telecom (NYSE:FTE) is listed on Euronext Paris (compartment A) and on the New York Stock Exchange.
For more information (on the internet and on your mobile): www.orange.com, www.orange-business.com, www.orange-innovation.tv
Orange and any other Orange product or service names included in this material are trade marks of Orange Brand Services Limited, Orange France or France Telecom.