SoLocal Group — Interim / Quarterly Report 2008

Oct 31, 2008

Sèvres, 31 October 2008

PagesJaunes Groupe achieves revenue growth of 4.1%, including +24.0% on the Internet, in first nine months of 2008.

Speaking on the release of PagesJaunes Groupe's financial information for the third quarter of 2008, Chief Executive Officer Michel Datchary said: "PagesJaunes continued to increase the number of its advertising customers in the third quarter of 2008, across all platforms (printed directories, Internet and 118 008). The consolidated Internet revenues of PagesJaunes Groupe rose 24.0% and represented 39.2% of total consolidated revenues, in line with the Group's full-year targets. The growth of GOM(3) outpaced revenue growth due to the improvement in the rate of operating margin of PagesJaunes in France and the narrowing of losses at PagesJaunes Petites Annonces. PagesJaunes Groupe confirms its 2008 targets of consolidated revenue growth between 3% and 4% and 8% growth in its gross operating margin and aims to pay a dividend at least equal to the €0.96 per share distributed in respect of 2007."

I. Revenues: growth in line with full-year targets

PagesJaunes Groupe's consolidated revenues amounted to €875.0 million in the first nine months of 2008, a rise of 4.1% compared to the same period in 2007.

This overall rise of 4.1% was driven by growth of 24.0% in Internet revenues, which represented 39.2% of consolidated revenues compared to 32.9% in the same period in 2007. In August 2008, the Internet sites of PagesJaunes Groupe as a whole (pagesjaunes.fr, mappy.com and annoncesjaunes.fr) ranked fourth among the most visited Internet sites in France, with 16.6 million unique visitors(1), i.e. more than one in two Internet users in France. The combination of pagesjaunes.fr and mappy.com ranked second among the most widely used mobile Internet services excluding portals(2).

(in € millions)	As at 30 September 2007	As at 30 September 2008	Change
PagesJaunes in France	784.0	814.3	+3.9%
International & Subsidiaries	61.9	66.5	+7.4%
Inter-segment	(5.0)	(5.8)	+16.0%
Group total	840.9	875.0	+4.1%
Of which Internet revenues	276.7	343.0	+24.0%
As % of revenues	32.9%	39.2%

The revenues of the PagesJaunes in France segment advanced 3.9% to €814.3 million in the first nine months of 2008 due to growth in Internet revenues and, to a lesser extent, telephone directory enquiry services (118 008).

(in € millions)	As at 30	As at 30	Change
	September 2007	September 2008
Printed directories	477.8	457.3	-4.3%
Pagesjaunes.fr and websites	252.4	311.8	+23.5%
Minitel	20.8	5.2	-75.0%
Directory enquiry services (118 008)	18.4	26.7	+45.1%
Others (including pagespro.com)	14.6	13.2	-9.6%
PagesJaunes in France	784.0	814.3	+3.9%
Of which Internet revenues	261.3	320.9	+22.8%
As % of revenues	33.3%	39.4%

Revenues from printed directories amounted to €457.3 million, a decrease of 4.3% compared to 2007. This expected decrease is explained by the introduction of the new charging structure.

Revenues from pagesjaunes.fr and websites rose 23.5% to €311.8 million. The pagesjaunes.fr site recorded an accumulated total of 204.1 million visits in the third quarter of 2008 (4), a rise of 2.9% compared to 2007. Pagesjaunes.fr set a new audience record in September 2008 with the number of visits rising 8.1% compared to the previous year to 76.4 million. The number of mobile Internet visits reached 4.0 million in the third quarter of 2008, a rise of 33.3% compared to 2007.

Revenues from telephone directory enquiry services (118 008) totalled €26.7 million, a rise of 45.1% compared to 2007, as a result of advertising revenues which now represent over 50% of the total revenues from this activity.

The revenues of the International & Subsidiaries segment amounted to €66.5 million in the first nine months of 2008, a rise of 7.4%.

(in € millions)	As at 30 September 2007	As at 30 September 2008	Change
BtoC directories	41.6	39.9	-4.1%
Of which QDQ Media	31.1	29.2	-6.1%
Online small ads	1.0	2.6	na
Internet advertising representation	-	3.1	na
Direct marketing and geographic services	19.3	20.9	+8.3%
International & Subsidiaries	61.9	66.5	+7.4%
Of which Internet revenues	18.4	26.0	+41.3%
As % of revenues	29.7%	39.1%

The revenues of QDQ Media amounted to €29.2 million, down 6.1%, in the first nine months of 2008 due to the economic slowdown in Spain, and despite continued growth of over 15% in Internet revenues.

Revenues from direct marketing and geographic services rose 8.3% to €20.9 million in the first nine months of 2008, driven by sales growth at Mappy.

The small ads business generated revenues of €2.6 million in the first nine months of 2008. The annoncesjaunes.fr site recorded 2.3 million visits in September 2008, the highest number since it was launched at the beginning of 2007 (5).

The Horyzon Média Internet advertising representation segment billed revenues of €12.1 million. That corresponds to a net revenue contribution of €3.1 million in the first nine months of 2008, comprising representation commissions.

II. General description of the financial situation and results: growth of GOM in line with the full-year targets and control of financial debt

The consolidated GOM of PagesJaunes Groupe grew faster than revenues in the first nine months of 2008 thanks to:

• the PagesJaunes in France segment, where GOM rose faster than revenues due to the now positive contribution to GOM from directory enquiry services, good control of publishing costs and optimisation of marketing and communication costs;
• the International & Subsidiaries segment, which achieved a significant reduction in its operating deficit, mainly due to the reduction in losses at PagesJaunes Petites Annonces, after the 2007 financial year had borne the launch expenses for this new business.

The net financial debt(6) of PagesJaunes Groupe amounted to €1,829 million as at 30 September 2008 (€1,858 million as at 30 September 2007). Despite the sharp rise in interest rates from one period to the next, PagesJaunes Groupe successfully controlled the average cost of its debt in the first nine months of 2008: it amounted to 5.73%, compared to 5.88% in 2007. The net debt of PagesJaunes Groupe is around 80% hedged against interest rate rises by means of a portfolio of interest rate swaps and collars maturing at the end of 2011. PagesJaunes Groupe's bank debt, amounting to €1,950 million, is repayable in full at the end of 2013. PagesJaunes Groupe also has, amongst a diversified pool of banks, a credit line of €400 million expiring at the end of 2013. This credit line was unutilised as at 30 September 2008.

The Group has continued to improve its financial leverage ratio (net debt to GOM over a rolling 12-month period), from 3.68x as at 30 September 2007 to 3.37x as at 30 September 2008. PagesJaunes Groupe therefore has substantial headroom relative to its bank liabilities, in terms of both its financial leverage ratio (3.37x compared to a maximum of 4.85x) and its interest coverage ratio (GOM over a rolling 12-month period relative to net interest, 4.85x compared to a minimum of 3.25x).

III. Confirmation of the financial targets for 2008: distribution of a dividend at least equal to that paid in respect of 2007

For 2008, PagesJaunes Groupe has the following targets: 3-4% growth in consolidated revenues, 25% growth in Internet revenues, which are expected to represent almost 40% of consolidated revenues, and 8% growth in GOM. PagesJaunes Groupe aims to distribute all of the Group's net income in respect of 2008 financial year, i.e. a dividend at least equal to that paid in respect of 20071 .

About PagesJaunes Groupe

PagesJaunes Groupe is the leading European publisher of directories on the Internet (pagesjaunes.fr, qdq.com) and the leading publisher of printed directories in France (the PagesJaunes directory and l'Annuaire).

PagesJaunes Groupe also publishes consumer directories in Spain, Morocco and Luxembourg, operates directory enquiry services in France by SMS (32008) and by telephone (118 008) and provides complementary services such as the geographic services of Mappy and the direct marketing services of PagesJaunes Marketing Services, as well as online small ads with PagesJaunes Petites Annonces (annoncesjaunes.fr). It is also present in Internet advertising representation with Horyzon Média.

PagesJaunes Groupe had almost 763,000 advertisers in France, Spain, Luxembourg and Morocco in 2007. PagesJaunes Groupe is the second largest French company in terms of advertising revenues.

PagesJaunes Groupe is listed on NYSE Euronext Paris – compartment A (PAJ).

Information on PagesJaunes Groupe is available at http://www.pagesjaunesgroupe.com.

¹ This distribution target in no way constitutes a commitment on the part of PagesJaunes Groupe. Future dividends will depend on the Group's results, its financial situation and any other factor which the Board of Directors and the shareholders of PagesJaunes Groupe deem relevant. The 2007 dividend included the proceeds of the sale of Kompass France and Kompass Belgium in March 2007.

Contacts:

Press

Thomas Barbelet / Orith Tabeur +33 (0)1 46 23 34 64 tbarbelet@pagesjaunes.fr otabeur@pagesjaunes.fr

Investors Vincent Gouley +33 (0)1 46 23 40 92 vgouley@pagesjaunes.fr

Notes

(1) Source: Nielsen//Netratings "All access points" – Parent ranking – September 2008.

(2) Source: Médiamétrie, panel of mobile internet users, April 2008 round.

(3) Gross Operating Margin (GOM): revenues less external purchases, operating expenses (net of operating income) and salaries and social charges. The salaries and social charges included in the GOM do not include employee profit-sharing, the cost of share-based payment or restructuring costs.

(4) Source: Cybermétrie - Médiamétrie / eStat.

(5) Source: Xiti.

(6) Net financial debt corresponds to the total gross financial debt less or plus derivative asset and liability cash flow hedging instruments less cash and cash equivalents.

***

This document contains forward-looking statements. Although PagesJaunes Groupe believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: the effect of competition; PagesJaunes usage level; the success of the investments of the PagesJaunes Groupe in France and abroad.

A description of the risks borne by the PagesJaunes Groupe appears in section 4 "Facteurs de risques" of the "Document de Référence" of PagesJaunes Groupe filed with the French financial markets authority (AMF) on 1 April 2008.

The forward-looking statements contained in this document apply only from the date of this document, and PagesJaunes Groupe does not undertake to update any of these statements to take account of events or circumstances arising after the date of the said document or to take account of the occurrence of unexpected events.

All the accounting data are presented in unaudited consolidated form.

Appendix: Consolidated revenues by segment

SA à Conseil d'administration au capital de 56 128 890 Euros – 552 028 425 RCS Nanterre

( ) in € illi m on s	Th ird rte q ua r		As 0 S be t 3 te a ep m r
	20 07	20 08	Ch an g e	20 07	20 08	Ch an g e
Pr int ed d ire cto rie s	18 4. 3	17 4. 5	-5 .3%	47 7. 8	45 7. 3	-4 .3%
On lin vic e s er es	93 .0	11 1.4	19 .8%	27 3. 2	31 7.0	16 .0%
of wh ich esj s.f nd eb sit p ag au ne r a es w	87 .0	11 0.6	.1% 27	25 2.4	31 1.8	.5% 23
of wh ich M ini tel	0 6.	0. 7	-8 8.3 %	20 .8	2 5.	5.0 % -7
Di ui ice cto re ry e nq ry se rv s ( ) 11 8 0 08	6. 8	9. 5	39 .7%	18 .4	26 .7	45 .1%
Ot he r r ev en ue s	6. 8	5. 7	-1 6. 2%	14 .6	13 .2	-9 .6%
l P in To ta Ja F ag es un es ra nc e	29 0. 9	30 1.0	5% 3.	78 4.0	81 4. 3	9% 3.
B C d ire rie to cto s	18 .1	.0 17	.1% -6	41 .6	39 .9	.1% -4
of wh ich Q DQ M ed ia	10 .4	9. 7	-6 .7%	31 .1	29 .2	-6 .1%
On lin ll a ds e s ma	0. 7	0. 9	28 .6%	1. 0	2. 6	na
In te et ad rti sin nt at ion rn ve g re p re se	-	0. 6	na	-	3. 1	na
Di rk ing nd hic ice ct et re ma a g eo g ra p se rv s	6. 3	6. 4	6% 1.	19 .3	20 .9	3% 8.
To l I tio l & S ub sid iar ies ta nt er na na	25 .2	24 .8	-1 .6%	61 .9	66 .5	7. 4%
Int nt er -se g me	( ) 2.0	( ) 1.8	-1 0.0 %	( ) 5.0	( ) 5.8	16 .0%
Gr to ta l ou p	31 4. 1	32 4. 1	3. 2%	84 0. 9	87 5.0	4. 1%