Investor relations

CHANGES IN ACCOUNTANCY STANDARDS

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Significant changes in consolidated companies during 2008 were as follows:

Sale of the Virgin Stores Group

On 28 February 2008, following the agreement signed on 21 December 2007, Lagardère and Butler Capital Partners signed the final contract for the acquisition of a majority interest in the Virgin Stores group by Butler Capital Partners.
In the consolidated balance sheet at 31 December 2007, the assets and liabilities of the Virgin Stores group were reported as assets held for sale and associated liabilities. Virgin Stores was deconsolidated with effect from 1 January 2008.
The Virgin Stores group contributed €397 million in sales and a recurring operating loss of -€2 million in 2007.

Transfer of 2.5% of the capital of EADS

On 25 June 2008, in accordance with the redemption schedule established in the contract for the Mandatory Exchangeable Bonds issue, Lagard•re remitted 20,370,000 EADS shares or 2.5% of the capital of EADS to the bondholders, in redemption of the second tranche of the issue. Redemption of the first tranche took place on 25 June 2007 through remittal of an identical number of shares.
As a result, including the effect of other changes in EADS share capital, Lagardère's holding in EADS was reduced from 14.98% at 31 December 2006 to 12.51% at 31 December 2007, then to 10.00% at 31 December 2008. EADS has been accounted for by the equity method since 1 January 2007. The share of profit included in the consolidated income statement was based on a percentage interest of 12.51.% for the first half of 2008, and 10.00% for the second half of 2008 (the percentages applied for 2007 were 14.98% and 12.51% respectively).
The gains on these transfers were calculated on the basis of EADS consolidated equity at 30 June and amounted to €466 million in 2008 and €472 million in 2007.

Other changes

The other changes, which did not have a material impact on the 2008 financial statements, were as follows:

Lagardere Publishing

Consolidation over 12 months in 2008 of:

• the French publisher Pika, only consolidated from 1 April in 2007;
• the publishers Grupo Patria Cultural and Piatkus Books, only consolidated from 1 July in 2007;
• the publisher Escala Educacional, only consolidated from 1 August in 2007.

Lagardère Active

Acquisition by Lagardère Active Digital of Doctissimo, France's leading publisher of web content for women. This acquisition took the form of a transfer of 53.38% of the capital from the companyÕs founders and managers, followed by a standing market offer for Doctissimo shares listed on Euronext's Eurolist market. On 27 June 2008, Lagardère Active Digital, which by then held more than 95% of Doctissimo, informed the French Stock Market Authority (AMF) that it intended to make a compulsory buyout offer for the remaining shares. This took place on 9 July 2008 and led to delisting of Doctissimo shares from Euronext Paris, with Lagardère Active Digital owning 100% of the capital.
Doctissimo is fully consolidated with effect from 1 January 2008.

• Acquisition of 100% of the Massin group, which publishes magazines such as Art & Décoration and Maison & Travaux, and has been fully consolidated since 1 May 2008.
• Acquisition of 51% of the Psychologies Magazine group. This group was already held 49% by Lagardère Active and was accounted for by the equity method in the 2007 financial statements. It has been fully consolidated since 1 June 2008.
• Purchase of the 35% holding in Lagard•re Active TV (formerly Lagardère Images) owned by Caisse des Dépôts et Consignations following exercise of its put option, raising Lagardère's overall investment from 65% to 100%. Lagardère Active TV was already fully consolidated in previous years.
• Sale of SCPE, a publisher of men's magazine in France. The company was deconsolidated with effect from 1 April 2008.
• Consolidation over twelve months in 2008 of Société de Presse Féminine (SPF), Jumpstart Automotive Media and the Nextedia group, which in 2007 were only consolidated from 1 April, 1 June and 1 July respectively.

Non-consolidation in 2 008 of entities sold in 2007:

• the Regional Daily Newspapers in southern France, consolidated for all twelve months of 2007;
• Hachette Filipacchi Publicações (Portugal), consolidated over 10 months in 2007, and Hachette Filipacchi Sweden
  and Hachette Filipacchi Burda Poland, consolidated over the whole year 2007.

Lagardère Services

• Acquisition and full consolidation from 1 March 2008 of Purely Group, a 51%-owned Australian airport retail operator.
• Acquisition of 100% of Delstar, an operator of airport retail outlets in the US, fully consolidated with effect from 1 September 2008.

Lagardère Sports

• Acquisition at the end of the Þ rst half of 2008 of approximately 70% of the capital of World Sport Group Holdings Ltd (WSG). WSG, based in Singapore, specialises in management of marketing rights, television broadcasting rights and event sponsorship consulting in South-East Asia, the Middle East, India and Japan. This investment is accounted for by the equity method with effect from 1 July 2008 in view of the participating rights conferred on minority shareholders by the shareholder agreement in force in 2008.
• Acquisition of the German group Upsolut Sports AG, a sporting event organiser in Germany, which has been fully consolidated since 1 January 2008.;
• Consolidation over twelve months in 2008 of IEC In Sports, which was only consolidated from 1 September in 2007.