Not for distribution, directly or indirectly in the United States or to US persons

Press release

January 12, 2012

A 2012 TOTAL FUNDING PROGRAMME OF 40 BILLION

Chairman of CADES (Caisse dAmortissement de la Dette Sociale), Patrice Ract Madoux, has presented to the media, in Paris and London, a statement of funding issues carried out in 2011, the new measures passed at the end of last year by French Parliament and the funding programme planned for 2012.

2011: 31.4 billion medium and long-term programme

In 2011, CADES issued a total of 73 billion of debt, of which 31.4 billion were medium and long-term on the basis of the following categories: 7.5 billion of benchmark bonds denominated in euros; 6.5 billion of bonds denominated in US dollars; 7.4 billion taps of existing bonds denominated in euros; 3.8 billion of private placements in various currencies; 3.2 billion of inflation-linked bonds; 3.0 billion of bonds denominated in other currencies.

In 2011, CADES fulfilled its goal of amortising French social security debt which had been set by the French Parliament within the framework of the Law pursuant to the Social Security Financing Act (SSFA) for 2011 that is 11.4 billion. Since its establishment in 1996, CADES has amortised a total of 59.3 billion of French social debt, a contribution to the relief of French debt of 3 percentage points of GDP.

New measures adopted for 2012

SSFA for 2012 adopted by the French Parliament in late 2011 sets CADES a new remit which consists of refinancing deficits accumulated in 2009 and 2010 by the agricultural workers regime to the extent of 2.5 billion. To finance this deficit and to comply with the terms of the 2005 Organic Law, CADES will receive additional resources totaling 220 million per year from fiscal amendments on high value real estate capital gains (excluding primary residences) and from a 1.25 point increase in the tax base of CSG (Contribution Sociale Gnralise) and CRDS (Contribution au Remboursement de la Dette Sociale), i.e. from 97% to 98.25%. Additionally, as part of the new remit to balance the reform of pensions finance entrusted by French Parliament to CADES at the end of 2010 aimed at transferring a maximum of 62 billion between 2012 and 2018, the first tranche will be paid from 2012 up to a maximum of 10 billion. The target fixed by the Law pursuant to the SSFA for 2012 is for CADES to amortise 11.1 billion. Thus CADES is scheduled to have amortized 70.4 billion while retaining a debt to be amortized of 142 billion at the end of 2012.

Not for distribution, directly or indirectly in the United States or to US persons 2012: A total funding programme of 40 billion
The financing requirement of about 40 billion for 2012 comprises: the balance of debt to re-finance the 65.3 billion assumed in 2011, the transfer of debt in the framework of its new remit to balance the financing of the pension reform the transfer of the accumulated debts in 2009 and 2010 by the agricultural workers regime.

In order to meet this requirement, CADES has put together a total programme of 40 billion finance which will be re-adjusted and re-apportioned between medium and long-term issues and short-term issues according to market conditions. Given current market conditions, CADES envisages a medium and long-term programme for 2012 comprising between 12 and 20 billion. This financing strategy thus places CADES amongst the top sovereign and quasi-sovereign European issuers.

CADES LIGHTEN THE DEBT BRIGHTEN THE FUTURE

Patrice Ract Madoux Chairman of the Board Tel: +33 1 55 78 58 03 patrice.ract-madoux@cades.fr

Press relations Charlne Masson Tel: +33 1 56 88 11 28 cmasson@actifin.fr

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