Nexans' half year results: Operating Profit maintained despite a difficult economic environment

Paris, September 12, 2001 -Nexans' Board of Directors met on September 11, 2001, under the chairmanship of Gérard Hauser, to review the group's accounts for the first half of the year.

Commenting on these results, the Chairman declared:

"Sales for the first half came to 2,536 million euros. This represents a rise, at constant non ferrous-metals price, of 5.5% over the same period in 2000, to sales of 2,320 million euros.

Despite the depressed economic climate in North America, and thanks to good performance in infrastructure markets, operating profit came to 79 million euros as of June 30, 2001, which was stable compared to the first half of 2000.

Net income came to 19 million euros. As announced at the time of the IPO, this figure is less than that of the first half of 2000 owing to an increase in financial costs and a high effective tax rate during this period. The figure recorded on June 30^th is not representative of the expected annual result. Second half net income will be significantly higher than the first half of the year.

In a difficult economic environment, due to the partial spread of the North American recession to Europe, we are confident in Nexans' capacity to pursue its growth policy and maintain its objective of reaching, for the entire 2001 fiscal period, operating profit close to that of the year 2000 resulting from the adjustments made as well as the energetic cost reduction programmes undertaken."

Consolidated results (non audited):

*pro forma

As of 30 June 2001, EBITDA reached 151 million euros, representing a 4.1% increase compared to the first half of 2000. Operating profit came to 79 million euros, equivalent to that recorded on June 30^th 2000. These figures demonstrate Nexans' ability to resist in an economic environment marked by a slowdown in the US and Italy.

As forecasted, the seasonal character of the business increased the debt to 247 million euros. The combined effect of this increase and the localisation of part of the debt in countries with high interest rates (Brazil and Turkey) meant that financial costs came to 20 million euros.

Furthermore, the Group's average effective tax rate rose from 35 to 51%, owing to the fiscally unbalanced geographic distribution of the operating profit.

In this context, net income as of June 30^th 2001 was 19 million euros compared to 31 million euros for the same period in the previous year.

(1) Sales at constant metal price

(2) Pro forma combined data

Energy: Sales grew by 2.5% due to the good performance in medium and low voltage energy networks and the infrastructure market recovery. Operating profit increased by 13.4% in the first half of 2001 reaching 32 million euros compared to 29 million euros as of 30^th June 2000. This result essentially reflects the positive impact of the restructuring programmes carried out in recent years, notably in France and Germany, and the recovery in the infrastructure markets.

Telecom: Sales grew significantly(+7.5%),in comparison to the first half of 2000. Operating profit remained stable at 23 million euros under the contrasting effect of very good performance in the field of cables for public operators and OEM?s and the weakness in LAN activities which have been particularly affected by the slowing down of the American economy. Cost reduction programmes already commenced will be pursued during the second half.

Electrical Wires: Growth in sales reflects the acquisition of Saficonel. Operating profit as of 30 June 2001 came to 18 million euros, a sharp decline (-31%) over that of the first half of 2000.

This is the result of the deterioration in performance in the enamelled wire segment, due to the continuous decline in the US market, especially in the automobile sector, and to the pressure on the selling prices of commodity products. Significant restructuring has taken place in the US and Italy with the aim of tackling this.

Publication of third quarter sales: 18^th October 2001

The full set of accounts is available on Nexans' Internet site at www.nexans.com

Safe Harbor: "This press release contains forward-looking statements relating to the Company's expectations for future financial performance, including sales and profitability. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our acutal results, performance and achievements to be materially different from those implied in the forward looking statements. Such expectations assume amongst others that (1) the European economy will not deteriorate further ; (2) demand in North American markets, in particular for LAN and winding wire does not further deteriorate ; and (3) telecom operators do not cut infrastructure spending more than expected."

Annex:

1. Consolidated income statements
2. Consolidated Balance Sheet
3. Consolidated Statements of Cash Flow

Consolidated income statements

In millions of euros

* Combined pro forma financial statements

Consolidated Balance Sheet

In millions of euros

* Combined pro forma financial statements

Consolidated Statements of Cash Flow

In millions of euros

* Combined pro forma financial statements