Nexans results 2005

The salient points of the latest Nexans Group figures include the following: sales in 2005 were 5.449bn euros, but calculated at constant non-ferrous metals prices amounted to 4.263bn euros compared to 4.080bn euros in 2004, representing an increase of 4.5%. The operating margin was 186m euros, an increase of 40% compared with 2004, while the net income was 108m euros, including the capital gain on the disposal of the distribution business in Norway (33m euros). The figure for net income also include losses from discontinued operations. Net income / share (after dilution) was 4.46 euros compared with 2.55 euros in 2004.

The Group's net financial debt, after adjustments, increased by 79m euros to 374m euros as of December 31, 2005. This is the result of the growth in business, the continued rise in copper prices (+51% in one year), and also includes the proceeds of selling Group subsidiaries.

Based on these results, the Board of Directors will propose to the General Shareholders' Meeting a dividend of 1 euro / share, double that paid in 2005 (0.50 euro).

Refocusing on core businesses and key countries:

The Group continues to develop its value-added businesses and focus on those geographic areas that offer the most potential, so Nexans has announced a number of initiatives. The Group will sell its distribution business in Switzerland (Electro-Matériel SA) to Rexel for 206 million euros. Nexans has also announced the signing of an agreement for the setting up of a joint venture in Vietnam, to be controlled 60% by Nexans. The Vietnamese Nhat Linh Company Ltd and its subsidiary LIOA Wire & Cable will own 40% of this joint venture to which they will contribute their cable activities dedicated to energy networks, equipment cables and industrial cables.

In addition, Nexans has finalized the acquisition of the Swiss Confecta AG Group, one of the main international specialists in high added value cable harnesses for the railway industry. The Confecta Group also operates in France and Germany.

Commenting, Gérard Hauser, Nexans Chairman and CEO, said: "Despite the continued rise in raw material prices, Nexans' results are extremely encouraging. In addition to the benefits of restructuring and within the context of the booming energy markets in which the Group has a strong presence, these results are the consequence of a clear strategy of redefining our geographical and product portfolio".

The Group's forecast for 2006 includes an increase in sales of approximately 4%, a further improvement in operating profit and a net financial debt end 2006 of approximately 230 million euros based on end of 2005 copper prices - oil prices and global economic contexts staying the same.

About Nexans:

Nexans is thought to be the worldwide leader in the cable industry. The Group brings an extensive range of advanced copper and optical fiber cable solutions to the infrastructure, industry and building markets. Nexans cables and cabling systems can be found in every area of people's lives, from telecommunications and energy networks, to aerospace, automotive, railways, building, petrochemical, medical applications, etc. With an industrial presence in 29 countries and commercial activities worldwide, Nexans employs 20,000 people and had sales in 2005 of 5.4 billion euros. Nexans is listed on the Paris stock exchange.