ACTIVITIES IN 2010

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2010 OVERVIEW

For Lagardère Active, 2010 was both a year for strengthening its positions in its key markets but also a year for making changes in its diversification policy.
Lagardère Active is seeking to turn its media into global brands, which means that they could be rolled out in every media, as is already the case with ELLE and Gulli.

The other highlight of 2010 was the further development of Lagardère Active in the digital world, which is also key for the division's growth in the years to come. Lagardère Active already has strong positions on the Internet and mobile phones (number one media group in France on mobiles and in the top 3 on the Web in France) and it is a pioneer on tablets.

2010 KEY EVENTS

Well-positioned press titles

Lagardère Active has continued to develop its core portfolio: upmarket women's publications. In March, the Group's division launched a new magazine, Be, an additional step in the roll-out of a global media brand that is to be developed on all media, with a community to be created around it: the "Bees". In October, ELLE, in turn, launched its 43^rd international edition in Vietnam. Similarly, ELLE Décoration launched its 25^th edition in Indonesia. Télé 7 Jours, a long-established magazine, celebrated 50 years with a successful anniversary issue, with over 698,000 single-issue sales.

On 28 March 2011, Lagardère SCA signed a contract for the sale of its international magazine business (102 titles) to Hearst Corporation for €651 million. The transaction includes a Master License Agreement (MLA) relating to the ELLE trademark in the 15 countries affected by the transfer, in return for which the Group will receive an annual recurring royalty payment. Lagardère will retain complete ownership of its magazine business operations in France and of its ELLE trademark throughout the world. The closing of the transaction remains subject to approval by local partners in certain countries as well as to certain customary governmental approvals and antitrust clearances in certain jurisdictions.

A major player in television production and broadcasting

Lagardère Active is strengthening its position with its children's channels TiJi , Canal J and Gulli. The latter has seen its audience grow by 22% (children 4 years and older), demonstrating its appeal to all kinds of audiences. The range of television on offer is filled out by music, with MCM and Mezzo, and by entertainment, with June.

In Audiovisual production, Lagardère Entertainment, whose programmes had a total of more than 300 million viewers, has strengthened its position as the leading French producer of drama and comedy. With its prestigious production companies, Lagardère Entertainment has offered French viewers Julie Lescaut, Joséphine Ange Gardien, C dans l'air, etc. In the 2011 fall season, Canal+ will broadcast Borgia, a special series produced by Atlantique Productions, a subsidiary of Lagardère Entertainment.

Dynamic roll-out into the digital world

Lagardère Active is developing a strategy to steadily roll out its brands and its content onto digital media.

For instance, it was the leading media group on mobile phones at end 2010 (Source: Médiamétrie). Lagardère Active also has a strong Web presence with more than 100 sites worldwide. In November, Lagardère Active beat its own record audience with 17.1 million unique visitors to its sites in France (Source: Nielsen), placing it in the top three media groups. Among these sites, Doctissimo is the leading women's site. In 2010 it launched three new versions: English, Italian and Spanish.

Lagardère Active is also pioneering the launch of digital editions of its media, including for Paris Match (the first magazine available in an iPad edition in France), ELLE à Table, Gulli and Le Journal du Dimanche.

Strong radio brands in a competitive arena

In 2010, Europe 1 won the "Grand Prix des Médias" for best radio from CB News. A strong, well recognised brand, Europe 1 is also one of the most podcasted radio stations (No.1 in November with 4.4 million podcasts).

In the category of music stations, RFM has confirmed its place with the growth of its morning show. In early 2011, Virgin Radio made a change in its lineup and opened up to other genres, while maintaining its base in pop rock.

Internationally, the Group's division strengthened its leadership positions, in particular in Poland, Romania and the Czech Republic.

An integrated, multi-platform advertising agency

Lagardère Publicité is the No.3 advertising agency in France, with a unique positioning thanks to the commercialisation of nearly 150 brands on six media.

It is the leading agency for magazines, with coverage of all targets. With six marketed radio stations, it has a very diversified range.

On television, Gulli in particular makes it the leading agency on the 4-10 year segment. It is also the key French agency for digital, Internet, smartphones and tablets, where it is a pioneer. In 2010, Lagardère Publicité had good results for all the different media.