[R]8:00AM New York - Areva reports fiscal 2007 revenue up 9.8% on stronger growth in the transmission and distribution segment.[/R]

Revenue Review

Areva, the giant French nuclear engineering firm, reported 2007 revenue climbed 9.8% to €11.92 billion from €10.86 billion in 2006 on faster growth in the transmission and distribution unit.

The company said like-for-like sales gained 10.4%, at constant exchange rates.

For the year, organic sales growth in the transmission and distribution business, with key interests in India, reached 16.7% after gaining a huge contract and was up 7.1% in the nuclear unit.

In November, Areva clinched an €8 billion deal to build two third-generation nuclear reactors in China.

As a percentage of sales, earnings from the transmission and distribution accounted for 9.2%, reactor and services 6.6% and front end at 15.8%.

The group’s backlog rose 55.4% to €39.83 billion at yearend from €25.62 billion a year earlier. Growth was led by the front-end segment, up 86% followed by the reactors and services at 73% and the transmission and distribution unit up 40%.

Earnings Review

Areva posted net profit increase of 14.5% to €743 million compared with €649 million reported in the year ago period. Earnings per share in 2007 to €20.95 per share from €18.31 compared to a year ago.

For 2007, operating income rose to €751 million, leaping 84.5% from €407 million from a year ago.

As a result, 2007 operating margins improved to 6.3% from 3.7%.

Areva said income from associate companies dropped to €148 million from €220 million while higher borrowing costs reduced financial income by 34% to €64 million.

A full-year dividend of €6.77 per share has been proposed for shareholder approval on April 17 shareholder annual meeting.

The company said net debt rose to €1.95 billion versus net cash of €251 million, mainly as a result of the acquisition of UraMin. The debt compares favourably with Areva’s total equity of €7.46 billion at year-end.

Due to higher capital expenditure, the group had negative cash flows of €1.99 billion in 2007 against €358 million in 2006.

Segment Review

For fiscal 2007, transmission and distribution operating income doubled to €397 million from €191 million in 2006, despite higher commodity prices and labor costs.

Operating income from the front-end division gained to €496 million helped by faster sales growth in the enrichment business unit. Exploration and operating expenses rose while the mining and fuel units reported slower growth.

Losses continued at the reactor and services unit, although this time on a slower pace, as volumes gained. The division reported an operating net loss of €178 million euros in the year compared with a loss of €420 million.