New GSM Cellular Telephone Service to Open in Cameroon as France Telecom Creates Societe Camerounaise De Mobiles.

YAOUNDE--(BUSINESS WIRE)--July 8, 1999--

France Telecom, through FCR subsidiary, today signed a concession agreement for a GSM wireless telephone service in Cameroon. The service will be operated by Societe Camerounaise de Mobiles (SCM).

SCM, a joint stock corporation registered in Cameroon and headquartered in Yaounde, is currently fully owned by FCR. A 30-percent equity interest in the company will be sold to Cameroonian partners within the two years.

SCM will build a reliable, high-performance GSM network to serve both consumers and businesses throughout the entire country. Build-out of the network, which will implement the latest technological innovations, will enable service to be ready for customer service in Yaounde and Douala by the end of this year. During the first two years investments will total 15 billion CFA francs (FRF 150 million) and will reach 35 billion CFA francs (FRF 350 million) over the next ten years.

The new mobile service offered by Societe Camerounaise de Mobiles will enable both business customers and individuals to stay in touch wherever they are.

SCM will progressively expand the service and propose an attractive range of services to bring its customers comfort and freedom to communicate. This superior quality GSM service will support overall economic development in the country. In the next five years, the company will have over 200 local employees in an organization that will provide the expertise and technical resources needed to ensure the success of the venture. Moreover, through its FCR subsidiary, France Telecom will bring the Societe Camerounaise de Mobiles proven expertise in the development, operation and marketing of GSM networks.

France Telecom is one of the world's leading telecommunications carriers, with 1998 consolidated operating revenues of 24.6 billion euros and operations in more than 50 countries. France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, data, wireless, multimedia, Internet, cable TV, broadcast and value-added services. France Telecom held an initial public offering in October 1997 and is listed on the Paris and New York stock exchanges. (NYSE: FTE)

With nearly 7 million GSM customers in France and 3.7 million worldwide through its subsidiaries and affiliates, France Telecom is one of the world's leading wireless operators. The company's CNET, R&D center played a key role in developing the GSM digital cellular standard, which is currently used by more than 150 million customers and 323 operators in 89 countries around the world.

FCR is an international business subsidiary of France Telecom specialized in assisting foreign operators for the modernization, construction and operation of their networks. With operations around the world, FCR manages and develops subsidiaries in fixed and wireless telephony and the Internet. The company works with operators and public or private sector partners through a variety of structures. In Africa, FCR is the strategic partner of the national operators, in Cote d'Ivoire, with Cote d'Ivoire Telecom, and in Senegal, with Sonatel. FCR operates GSM cellular networks in the Cote d'Ivoire, Senegal, Botswana and Madagascar.

FCR had 1998 consolidated revenues of more than FRF6 billion. Through its partnerships, FCR currently services some 200 million customers worldwide and has an installed base of approximately 16 million telephone lines.