AREVA S.A. (AREVA) has reported revenue of EUR6.5 billion for the first half of 2009, compared with the revenue of EUR6.1 billion in the year-ago period. It also reported net income attributable to equity holders of the parent of EUR161 million for the first half of 2009, compared with the net income attributable to equity holders of the parent of EUR760 million in the year-ago period.

Commenting on these results, Anne Lauvergeon, chief executive officer, made the following statement:

“At June 30, 2009, our backlog reached a record high, while sales revenue increased by 6% over the first half. A half-year is traditionally not very representative of the operational performance in the nuclear industry. It is especially true over the first 6 months of 2009 owing to very unfavourable seasonality effects: by comparison, we had already realised 80% of the operating income for the year just in the first half of 2008. For the full year 2009 and based on the consolidation scope as at June 30, we anticipate strong growth in backlog and in sales revenue and an operating income close to that of 2008. AREVA’s integrated business model has again demonstrated its effectiveness. During the half-year, we signed a memorandum of understanding with NPCIL for an integrated offering, 2 to 6 reactors, fuel cycle and T&D. We are actively pursuing negotiations with Duke for an EPR in the United States and with EDF for 4 EPR in the United Kingdom.

In Olkiluoto the reactor dome will be installed very shortly. Final steps will be focused on piping, testing and commissioning activities. However, the fact that the client TVO has not yet implemented the specific measures for speeding up the work, which were agreed upon in June 2008, is causing delays and additional costs. AREVA has sent proposals to TVO in order to get back to methods of execution that are in line with usual practices for major projects. We will only commence the final phases of the works when TVO has agreed upon the proposals that have been made or issued contract amendments that provide for the requested modifications. In this context we have recorded an additional provision with respect to this contract in the first half.

On June 30 this year we announced a strategic and financial development plan that is essential for the future of the group. The opening of capital to strategic partners will enable us to deepen and extend our industrial and commercial relationships. This will strengthen both our balance sheet and our ability to raise the necessary resources for our development. Besides we have been granted a long-term “A” rating by the Standard & Poor’s rating agency and our short-term “A1” rating has been confirmed.

Finally, we have signed a new long-term partnership agreement with SIEMENS that ensures the continuity of our co-operation in the field of instrumentation and control systems for nuclear reactors.”

Backlog up by 28.2% compared to June 30, 2008

The backlog at June 30, 2009 amounted to 48,876 million euro, up by 28.2% compared to EUR38,123 million posted at June 30, 2008. In the Nuclear operation, the principal contributors to this growth were the Front End division (+42%) and the Back End division (+31%). The Reactors and Services division advanced by 12% and the Transmission and Distribution division remained almost stable.

Financial income is stable compared to the first half of 2008, at EUR212 million. It benefited from the capital gains realised this year on the disposal of available-for-sale financial assets (in the first half of 2008, it benefited from the capital gain realised on the disposal of REpower shares). Net borrowing costs remained stable despite a substantial increase in financial debt.

Tax charge decreased by 16 million euro between 2008 and 2009 to EUR58 million , representing an effective tax rate of 25.3% for the first half of 2009.