Vivendi Full Year 2007 Revenues Increase Significantly

Business Wire, Jan 30, 2008

PARIS -- Regulatory News:

Note to readers: Vivendi provided preliminary, unaudited revenue information for the fourth quarter and the full year of 2007 on an IFRS basis in accordance with European regulatory requirements.

For the full year 2007, Vivendi's revenues total EU21,657 million compared to EU20,044 million for the full year of 2006, an increase of 8% ( 9.7% at constant currency).

For the fourth quarter of 2007, Vivendi's revenues total EU6,014 million compared to EU5,545 million for the fourth quarter of 2006, an increase of 8.5% ( 10.5% at constant currency).

Vivendi confirms 2007 outlook: an adjusted net income above EU2.7 billion, at approximately EU2.8 billion.

Vivendi Confirms Position as a Digital Entertainment Leader

* UMG: increased market share in all of its major markets

* Canal : TPS integration and subscription growth

* SFR: 3G/3G leader, successful launch of Illimythics, 657 000 net new SFR customers in the fourth quarter

* Maroc Telecom: 20% growth

* Vivendi Games: revenues exceeded EU1 billion and World of Warcraft reaches over 10 million subscribers

Universal Music Group

Market share increased in all of its major markets

For the full year 2007, Universal Music Group increased market share in all of its major markets. Universal Music Group's revenues amounted to EU4,870 million versus EU4,955 million in 2006 (-1.7%).

Revenues increased 3.0% at constant currency reflecting revenues from the acquisitions2 in 2007 of BMG Music Publishing (BMGP) and of Sanctuary, as well as strong digital sales growth and a better than market performance. Excluding these acquisitions and at constant currency, revenues were 3% less than the previous year reflecting a difficult music market and lower license and legal settlement income.

Digital sales of EU676 million grew 51% versus last year at constant currency, representing 14% of total revenues.

Best sellers included titles from Amy Winehouse, Mika, Rihanna and the High School Musical 2 Soundtrack.

For the fourth quarter of 2007, Universal Music Group's revenues of EU1,605 million declined 3.1% compared to the same period last year.

Revenues increased 2.4% at constant currency reflecting revenues from the acquisitions BMGP and Sanctuary and a strong performance in Japan. Excluding these acquisitions and at constant currency, revenues declined 5%.

Digital sales of EU188 million grew 54% versus last year at constant currency with strong growth in both the on-line and mobile sectors.

Best sellers in the period included new titles from Andrea Bocelli, Eagles and Mary J. Blige.

Canal Group

TPS integration and subscription growth

For the full year 2007, Canal Group's revenues amounted to EU4,363 million, a 20.2% increase compared to 2006. Revenues from pay-TV operations in France were up EU746 million ( 25%) compared to 2006. Pay-TV operations benefited from the TPS acquisition3, as well as increased revenues from portfolio and higher advertising revenues. CanalOverseas also had a positive impact.

As of December 31, 2007, Canal Group's total portfolio amounts to more than 10.5 million pay-TV subscriptions (individual and collective, in France and overseas, including Africa). Net additions over the year totalled 280,000 subscriptions. This figure included net additions of 330,000 subscriptions and a negative adjustment of approximately 50,000 subscriptions resulting from a portfolio change of scope to include viable contracts only.

Canal 's total subscriptions at the end of the year reached 5.3 million, which represented a net increase of more than 80,000 over the year. The proportion of Canal Le Bouquet subscriptions reached 71% of the total Canal portfolio, up from 61% a year ago. The churn rate was 12.8%.

CanalSat and TPS' total subscriptions were more than 5.2 million, which represented a net increase of 200,000 compared to the end of 2006. CanalSat's churn rate was 10%.

Revenues from Canal Group's other operations (excluding PSG, sold in June 2006) grew EU24 million or 4%, thanks to the good performance of Canal in Poland and higher advertising revenues from i>Tele. StudioCanal posted lower revenues (EU352 million in 2007 versus EU362 million in 2006) despite good international performances driven by the growth of Optimum.

For the fourth quarter of 2007, Canal Group's revenues amounted to EU1,132 million, which represented a 23.3% increase compared to the same period last year.

Revenues from pay-TV operations in France grew EU196 million (26%) compared to the fourth quarter of 2006. This strong increase was mainly due to the favorable impact of the TPS merger, as well as the increased portfolio of Canal and CanalSat. CanalOverseas contributed favorably as well.

Revenues from Canal Group's other operations (Poland, i>Tele and StudioCanal) were also up (EU18 million in total).

SFR

3G/3G leader, successful launch of Illimythics, 657 000 net new SFR customers in the fourth quarter

For the full year 2007, SFR's revenues4 increased by 3.9% to EU9,018 million compared to 2006.

Mobile revenues increased by 1.6% to EU 8,785 million compared to 2006. Mobile service revenues5 were up by 0.9% to EU8,382 million.

The favorable effects of an increase in the customer base along with growth in "voice" and "data" usage and the Enterprise segment dynamism were largely offset by strong cuts on mobile voice termination rates (21%) as of January 1, 2007, and on SMS termination rates (30%) as of mid-September 2006. SFR's ARPU6 decreased by 3.3% to EU440 at the end of December 2007 (versus EU455 at the end of December 2006).