Five Major Institutions Invest in Mobilix.

COPENHAGEN--(BUSINESS WIRE)--August 3, 1999--

France Telecom (NYSE: FTE) announced today that it has agreed to sell a 32% equity stake in Mobilix, its Danish telecommunications subsidiary, to a group of financial investors.

The new investors in Mobilix are PAI (Paribas Affaires Industrielles), Part'Com, GE Capital Structured Finance Group (SFG), Capital Communications CDPQ Inc., a subsidiary of the Caisse de depot et placement du Quebec, and Mediatel Capital FCP, a specialist Luxembourg investment fund.

Under the terms of the agreement, France Telecom will hold 54%, the group of financial institutions 32%, and the Danish National Railway Authority 14% of Mobilix. The new investors also will have the right to provide additional equity to fund the future development and growth of Mobilix.

     The new financial investors will have the following
shareholdings:

--  GE Capital Structured Finance Group of the US (SFG) 9% (USA)
--  Paribas Affaires Industrielles (PAI):               9% (France)
--  Part'Com of France:                                 6% (France)
--  Capital Communications CDPQ Inc of Canada:          5% (Canada)
--  Mediatel Capital FCP:                              3% (Luxembourg)

"I welcome the confidence in Mobilix results so far and its future potential, as demonstrated by the investments of such highly respected financial institutions in Mobilix, says Monique Moulle-Zetterstrom, CEO of Mobilix. "The time is right for a broadening of the ownership of Mobilix. Today, the company is at a stage where technology and services only need to be consolidated and enhanced, whereas its marketing efforts must be heavily intensified. This additional capital will help fund this endeavour."

"In April 1998, when Mobilix chose the Danish National Railway Authority as its first partner, this strategic move immediately provided us with access to the extensive, high-capacity backbone network," Ms. Moulle-Zetterstrom explained. "This has been of great technological significance to Mobilix process of change from a mobile telephone company into a full-service provider of telecommunications services. Since April, this change has taken on a more definite form. Mobilix now offers all forms of telecommunications services, mobile and fixed telephony, high-capacity data transmission and the Internet."

France Telecom retained Den Danske Bank - Corporate Finance for this transaction.

Mobilix is Denmark's most dynamic telecom company aiming at becoming the residential and business sectors' preferred global supplier of telecommunications services. Mobilix offers competitive products and services in mobile telephony, fixed telephony, data and Internet. It has its own Danish backbone network and this is why its prices for fixed telephony and data services are highly competitive. Mobilix A/S is owned 54% by France Telecom, 32% by GE Capital Structure Finance Group of the US (SFG), PAI (Paribas Affaires Industrielles), Part'Com (Groupe Caisse des depots), Capital Communications CDPQ Inc. of Canada, Mediatel Capital, and 14% owned by the Danish National Railway Authority.

Mobilix has more than 600 employees and in future years will invest more than four billion DKK in the development of one of the world's most modern telecommunications companies.

Editorial Notes:

GE Capital Structured Finance Group of the US (SFG) is an investor and provider of innovative financial solutions for clients in the global communications, commercial and industrial, energy, and transportation sectors. The Structured Finance Group draws on the strength of GE Capital, a global, diversified financial services company with assets of over US$300 billion, and General Electric Company, a diversified manufacturing, technology and services company with operations worldwide.

PAI (Paribas Affaires Industrielles) is the direct Equity investment of PARIBAS which invests in various industrial and services sectors including Technology, Telecoms, Media, Food, Healthcare, Energy, Retail and Manufacturing. As of 31/12/98 the PAI portfolio amounts to 40 FF billion invested in more than 200 companies worldwide including 4,5 FF billion in telecoms. PAI's investment philosophy in telecoms is to be a value-added investor in telecoms projects covering the full range of services for voice and data in Europe, Asia and North America.

PART'COM (Groupe Caisse des Depots) is an equity investment company specializing in media and telecommunications. Today, PART'COM and its specialized subsidiaries manage over FF 3.1 billion in consolidated funds with stakes in over 70 companies (30% in Telecoms area).

MEDIATEL CAPITAL is a Luxembourg investment fund, created in 1999, sponsored by PART'COM, Capital Communications CDPQ, and Banque et Caisse d'Epargne de l'Etat, Luxembourg, This fund will have an investment capacity of Euro 150 million and will invest on an international basis in the growth sectors such as telecommunications, internet services and media.

CAPITAL COMMUNICATIONS CDPQ is wholly owned by the Caisse de depot et placement du Quebec, Canada's largest portfolio manager with close to C$69 billion under management. Capital Communications CDPQ's strategy is to invest in companies operating in the communications field and responds to the needs of small and medium-sized businesses and industrial groups seeking to enter promising markets or consolidate their position. Its portfolio comprises some 50 investments valued at over C$1.7 billion.

FRANCE TELECOM

With operations in over 50 countries, and 24.6 billion euros in 1998 revenues, France Telecom is one of the world's leading telecom carriers. It provides businesses and consumers with a full range of innovative services, including data, wireless, Internet and cable TV as well as local, long-distance and international telephony. France Telecom is listed on the Paris Bourse and the New York Stock Exchange.