At the May 26, 2009 Annual Shareholders’ Meeting, France Telecom shareholders approved the 2008 consolidated financial statements and decided on the payment of a dividend of €1.40 per share. After taking into account the interim dividend of €0.60 per share paid on September 11, 2008, a balance of €0.80 per share remains to be paid. This balance will be paid on June 30, 2009.

Shareholders may opt for payment of the dividend in France Telecom shares for up to 50% of the balance of the dividend to be paid, i.e. €0.40 per share.

The issue price of the France Telecom shares to be paid-out was set by the Board of Directors on May 26, 2009 at €16.01. This price corresponds to the average opening price on the Euronext Paris stock exchange over the twenty trading sessions prior to the date of the Annual Shareholders’ Meeting, after rounding and excluding the balance of the dividend of €0.80.

Shareholders wishing to benefit from this option must make a request to the financial institutions managing their accounts between June 2, 2009 and June 23, 2009 inclusive. Shareholders will then receive from the financial institution acting as their account holder an instruction form to be filled-in and returned once duly signed.

If the option is not exercised within the period mentioned above, the balance of the dividend will be paid entirely in cash.

If the amount of dividends for which the option is exercised does not correspond to a whole number of shares, shareholders shall receive a number of shares rounded-down to the nearest whole number completed by a balance payment in cash.

The new shares will be delivered on June 30, 2009, in registered or bearer form depending on the current status of the shareholder's account. They will bear right to dividends from January 1, 2009.

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

This announcement is for information only and does not constitute an offer of securities..

The option to receive the 2008 dividend in shares is not open to shareholders residing in any country where such option would require registration with or authorization by local market authorities. Shareholders residing outside France should inform themselves about any restrictions and ensure compliance. Orders coming from such countries will not be accepted. Shareholders should inform themselves of the conditions and consequences relating to such option and that may apply under local law and are encouraged to consult with their respective tax advisors. When deciding whether or not to elect to receive a dividend in shares, holders should consider the risks relating to an investment in shares.