Vivendi Reports First Half 2006 Revenues Up 5.8 % on a Comparable Basis

-- Note to readers: Vivendi provided preliminary, unaudited revenue information for the first half of 2006 on an IFRS basis in accordance with European regulatory requirements.

First Half of 2006 Revenues

Vivendi's as published revenues for the first half of 2006amounted to EUR 9,610 million compared to EUR 9,131 million for thefirst half of 2005, an increase of 5.2 %.

On a comparable basis(1), first half of 2006 revenues amounted toEUR 9,572 million compared to EUR 9,046 million for the first half of2005, an increase of 5.8% (+4.6% at constant currency).

Second Quarter of 2006 Revenues

Vivendi's as published revenues for the second quarter of 2006amounted to EUR 4,844 million compared to EUR 4,622 million for thesecond quarter of 2005, an increase of 4.8%.

On a comparable basis, second quarter of 2006 revenues amounted toEUR 4,824 million compared to EUR 4,585 million for the second quarterof 2005, an increase of 5.2% (+4.6% at constant currency).

Universal Music Group

First Half:

Universal Music Group's (UMG's) revenues of EUR 2,202 million were5.3% higher than last year with strong digital sales growth, increasedlicense income in the U.S. and U.K. and favorable currency movementsoffsetting lower manufacturing and distribution revenues following thesale of UMG's facilities in Europe and in the U.S.. Digital sales ofEUR 222 million more than doubled last year's sales and represented10.1% of total revenues.

At constant currency, revenues grew by 1.7% versus a very strongfirst half of 2005 due to an exceptional release schedule thatincluded major releases from 50 Cent, Mariah Carey, The Game and BlackEyed Peas. Best sellers in the first half of 2006 included AndreaBocelli, Jack Johnson, Ne-Yo and the NOW 21 compilation in the U.S.

In the U.S., UMG's market share of 31.7% was down slightly versuslast year's market share of 32%; however, UMG ended the quarterstrongly with back to back number 1 albums from A.F.I., Busta Rhymes,Nelly Furtado and India Arie.

Second Quarter:

UMG's revenues of EUR 1,077 million rose 2.2% (up 0.7% at constantcurrency) compared to last year reflecting strong growth in thedigital sector and higher license income in the U.S. and the U.K. aswell as favorable currency movements.

Digital sales of EUR 111 million were up 91% versus last year,representing 10.3% of total revenues, with strong growth across allregions and in both the online and mobile sectors.

Best sellers this quarter included new releases from Rihanna,Keane and Nelly Furtado.

Vivendi Games

First Half:

Vivendi Games' revenues of EUR 296 million were 24.4% higher thanthe prior year (up 18.7% on a constant currency basis). This increasewas primarily driven by the continued worldwide success of Blizzard'sWorld of Warcraft, the critically acclaimed subscription-based,massively multiplayer online role-playing game (MMORPG).

Other solid performers in the first half of 2006 included therelease of Ice Age 2, the game based on Fox movie, and continuingstrong sales from backlist products including 50 Cent: Bulletproof andCrash Tag Team Racing.

Second Quarter:

Vivendi Games' revenues of EUR 162 million were 29.6% higher thanthe prior year (up 27% on a constant currency basis). This increasewas driven by the success of Blizzard's World of Warcraft, and also byIce Age 2, 50 Cent: Bulletproof and Crash Tag Team Racing.

Canal+ Group

First Half:

Canal+ Group reported revenues of EUR 1,833 million, up from 1,697million for the first half of 2005. On a comparable basis(2), Canal+Group's revenues increased 10.7% compared to the first half of 2005.

Revenues from pay-TV operations in France were up 11%, with allactivities achieving revenue growth over the period. This increase waslargely driven by Canal+ and CanalSat portfolio growth. The Group'sportfolio was over 8.2 million subscriptions, up more than 280,000compared to June 2005. Compared to the first half of 2005, Canal+revenues were up 8% thanks to portfolio growth and continuous growthof advertising revenues due to the channel's positive image as well asgood audience ratings. At the end of June 2006, Canal+ Le Bouquetrepresented 56% of the channel's total portfolio versus 49% at the endof June 2005. CanalSat revenues increased mainly due to portfoliogrowth.

Revenues from pay-TV operations in Poland were up mainly due tothe subscriber portfolio growth.

Revenues for Canal+ group's movie business were up 6% benefitingmainly from successful theatrical releases in France, such asFauteuils d'orchestre directed by Danielle Thompson and Jean-Philippedirected by Laurent Tuel.

Second Quarter:

Canal+ Group reported revenues of EUR 934 million, up from EUR 816million in the second quarter of 2005. On a comparable basis(2),Canal+ Group's revenues were up 14.3% compared to same period previousyear.

Revenues of French pay-television grew 10% compared to the secondquarter of 2005 with all of its activities increasing in revenues.

Other business revenues also increased strongly compared to secondquarter 2005. Higher revenues from the movie business were due to afavorable timing compared to the second quarter of 2005.

SFR

First Half:

SFR revenues grew by 1.5% versus the same period in 2005 (1.7% ona comparable basis(3)) to EUR 4,301 million.

Favorable effects of the increase in customer base along with thegrowth in "voice" and "data" usage were partly offset by the strongcut in regulated tariffs as of January 1, 2006 (a 24% cut of mobilevoice termination rates and a 19.4% cut for SMS termination) as wellas by the cut in the price charged to customers for the new offerslaunched in April 2005. SFR ARPU(4) decreased by 3.7% to EUR 471 atthe end of June 2006 (versus EUR 489 at the end of June 2005).Excluding the impacts of the regulated tariffs' cut, SFR revenueswould have been up by 6.1%.

SFR proved ongoing commercial dynamism during the first half, with216,000 new customers, taking its registered customer base to 17.415million(5), a 7.4% increase versus last year. The contract customerbase grew by 10.7% year-on-year to 11.160 million, leading to animproved customer mix of 1.9 percentage point in one year.

Average voice usage of SFR customers (AUPU)(6) continued itsstrong growth by 14.5% to 319 minutes per month.

3G customers reached 1.574 million as of June 2006 compared to1.003 million at the end of December 2005. SFR was the first operatorto launch HSDPA in France in May 2006 to provide higher debit rates toits customers.

Net data revenues improved significantly to represent 13.1% ofnetwork revenues for the first half of 2006, compared to 11.4% in2005, partly due to a 18.7% increase in text messaging (SMS) sent bySFR customers (3.1 billion), to the 2 time multiplication of MMS sent(83 million) and to the strong increase of other services. The latternow represent 32% of total data revenues compared to 28% in 2005.During the soccer World Cup in June 2006, SFR had more than 120,000SFR customers registered to the service "Alertes Buts" (Goal Alert)and more than 1 million soccer videos downloaded. At the end of June2006, the data ARPU reached EUR 62, an 11% growth compared to 2005.

This performance highlights the success of SFR offers, which aimto substitute fixed voice usage for mobile voice usage and to developnew usages for the mobile phone, especially around music, video, TVand games services.

Second Quarter:

SFR revenues declined by 0.4% (up 0.6% on a comparable basis(3))compared to the second quarter of 2005 to EUR 2,166 million.

On a comparable basis, favorable effects of the increase incustomer base and the growth in "voice" and "data" usage werepartially offset by the strong cut of regulated tariffs as fromJanuary 1, 2006, by the cut in the price charged to customers for thenew offers launched in April 2005 as well as by unfavorable calendareffects of approximately 1 percentage point on second quarter revenuesgrowth versus the second quarter of 2005. SFR ARPU(4)decreased by3.7% to EUR 471 in June 2006 (versus EUR 489 in June 2005).

Excluding the impacts of the regulated tariffs' cut, SFR revenueswould have been up by 4.9% compared to the second quarter of 2005.

Maroc Telecom

First Half:

For the first half of 2006, Maroc Telecom revenues of EUR 993million increased by 13.2% compared to the same period last year(+11.5% at constant currency).

Mobile revenues grew by 18% to EUR 634 million compared to thesame period last year (+16.2% at constant currency). This progressionwas mainly explained by the growth of the customer base(7)(8) with8.924 million of customers, +24.2% compared to the same period lastyear, with a net increase of 687,000 customers over the period.

Maroc Telecom launched several innovating offers during the periodand reinforced its market leader position: 30 Dh Jawal access (SIMCard + phone number + 10 Dh communication credit), "Twin Jawal" reloadplan (10+20 Dh), unlimited calls introduced in postpaid controlledplans.

The monthly ARPU(7)(9) was EUR 10.5 (-7.1% compared to the sameperiod last year) due to the strong increase of the customer base.

The churn rate reaches 16.6% (+6.5 points compared to the sameperiod last year) with the sharp increase of the customer base and thedecrease of the access fees.

Fixed and internet revenues grew by 7.7% to EUR 560 millioncompared to the same period last year (+6.1% at constant currency).

This good performance was achieved thanks to the pricingmodifications operated during the last quarter of 2005, the growth ofthe incoming international traffic (+12.7%) and to the continuingsuccess of the broadband activity. The fixed customer base(7)decreased to nearly 1.310 million of lines (-2.9% compared to the sameperiod last year).

Maroc Telecom stimulated the broadband market over this periodwith promotions, sharp decrease in price on May 1st from 17% to 33%according to the rates, and migration to the upper rate with nopricing increase for the existing customers.

On May 31, Maroc Telecom launched TV on ADSL, a very first inMorocco, Africa and in the Arabic countries.

The ADSL customer base(7) experienced a strong growth and reached325,000 lines (+83,000 lines over the period, +140.7% compared to thesame period last year).

Second Quarter:

Maroc Telecom consolidated revenues of EUR 510 million increasedby 12.3% compared to the same period last year (+11.3% at constantcurrency).

Mobile revenues grew 18.1% to EUR 334 million compared to the sameperiod last year (+17.1% at constant currency) due to the strongincrease of the customer base.

Fixed and internet revenues grew 5.4% to EUR 278 million comparedto the same period last year (+4.6% at constant currency) thanks inparticular to the success of the ADSL offers.

Important disclaimer:

This press release contains "forward-looking statements" as thatterm is defined in the Private Securities Litigation Reform Act of1995. Such forward-looking statements are not guarantees of futureperformance. Actual results may differ materially from theforward-looking statements as a result of a number of risks anduncertainties, many of which are outside our control, including butnot limited to the risks described in the documents Vivendi has filedwith the U.S. Securities and Exchange Commission and with the FrenchAutorite des Marches Financiers. Investors and security holders mayobtain a free copy of documents filed by Vivendi with the U.S.Securities and Exchange Commission at www.sec.gov, the French Autoritedes Marches Financiers at www.amf-france.org, or directly fromVivendi. Vivendi does not undertake, nor has any obligation, toprovide, update or revise any forward-looking statements.
(1) Comparable basis essentially illustrates the effect of the
divestitures or abandonment of operations that occurred in 2005
and 2006 (mainly NC Numericable in 2005 and PSG in 2006 at Canal+
Group and Annuaire Express, SFR phone directory activities in
2005) and includes the full consolidation of minority stakes in
distribution subsidiaries at SFR as if these transactions had
occurred as of January 1, 2005. Comparable basis revenues are not
necessarily indicative of the combined revenues that would have
occurred had the events actually occurred at the beginning of
2005.

(2) Comparable basis essentially illustrates the effect of the
divestitures at Canal+ Group (mainly NC Numericable in 2005 and
PSG in 2006), as if these transactions had occurred as of January
1, 2005.

(3) Comparable basis mainly illustrates the full consolidation of
minority stakes in distribution subsidiaries and excludes revenues
from phone directory activities (Annuaire Express) as of January
1, 2005.

(4) ARPU (Average Revenue Per User) is calculated on a twelve-month
rolling period by dividing revenues net of promotions and net of
third-party content provider revenues, excluding roaming in and
equipment sales, by average Arcep total customer base for the last
twelve months. ARPU is calculated on a comparable basis, excluding
revenues from phone directory activities (Annuaire Express).

(5) SFR excluding wholesale customers total base (wholesale customer
base reached 268,000 at the end of June 2006).

(6) AUPU (Average Usage Per User) is defined as the incoming and
outgoing "voice" volumes divided by average Arcep total customer
base for the last twelve months.

(7) Without Mauritel.

(8) The customer base, compliant with the ANRT definition and used by
Maroc Telecom in 2006, is calculated as the sum of prepaid
customers giving or receiving a voice call during the last 3
months and the number of not resiliated postpaid customers.

(9) ARPU (Average Revenue Per User) is defined as revenues (from
incoming and outgoing calls and data services), net of promotions,
excluding roaming in and equipment sales, divided by average
customer base over the period.



APPENDIX

VIVENDI
REVENUES BY BUSINESS SEGMENT

(IFRS, unaudited)

COMPARABLE BASIS

Comparable basis essentially illustrates the effect of the
divestitures or abandonment of operations that occurred in 2005 and
2006 (mainly NC Numericable in 2005 and PSG in 2006 at Canal+ Group
and Annuaire Express, SFR phone directory activities in 2005) and
includes the full consolidation of minority stakes in distribution
subsidiaries at SFR as if these transactions had occurred as of
January 1, 2005. Comparable basis revenues are not necessarily
indicative of the combined revenues that would have occurred had the
events actually occurred at the beginning of 2005.


2nd Quarter Ended June 30,
-----------------------------------------
% Change at
2006 2005 % Change Constant Rate
(In millions of euros) -------- -------- -------- --------------

Revenues
--------

Universal Music Group 1,077 1,054 2.2% 0.7%
Vivendi Games 162 125 29.6% 27.0%
Canal+ Group 914 800 14.3% 13.8%
SFR 2,166 2,154 0.6% 0.6%
Maroc Telecom 510 454 12.3% 11.3%
Non core operations
and elimination of
intercompany transactions (5) (2) -150.0% -150.0%
-------- -------- -------- --------------
Total Vivendi 4,824 4,585 5.2% 4.6%
======== ======== ======== ==============


1st Half Ended June 30,
-----------------------------------------
% Change at
2006 2005 % Change Constant Rate
(In millions of euros) -------- -------- -------- --------------

Revenues
--------

Universal Music Group 2,202 2,092 5.3% 1.7%
Vivendi Games 296 238 24.4% 18.7%
Canal+ Group 1,795 1,622 10.7% 10.3%
SFR 4,301 4,229 1.7% 1.7%
Maroc Telecom 993 877 13.2% 11.5%
Non core operations
and eliminations of
intercompany transactions (15) (12) -25.0% -25.0%
-------- -------- -------- --------------
Total Vivendi 9,572 9,046 5.8% 4.6%
======== ======== ======== ==============


AS PUBLISHED (a)

2nd Quarter Ended June 30,
--------------------------

2006 2005 % Change
(In millions of euros) -------- -------- --------

Revenues
--------

Universal Music Group 1,077 1,054 2.2%
Vivendi Games 162 125 29.6%
Canal+ Group 934 816 14.5%
SFR 2,166 2,175 -0.4%
Maroc Telecom 510 454 12.3%
Non core operations
and elimination of
intercompany transactions (5) (2) -150.0%
-------- -------- --------
Total Vivendi 4,844 4,622 4.8%
======== ======== ========


1st Half Ended June 30,
--------------------------

2006 2005 % Change
(In millions of euros) -------- -------- --------

Revenues
--------

Universal Music Group 2,202 2,092 5.3%
Vivendi Games 296 238 24.4%
Canal+ Group 1,833 1,697 8.0%
SFR 4,301 4,239 1.5%
Maroc Telecom 993 877 13.2%
Non core operations
and elimination of
intercompany transactions (15) (12) -25.0%
-------- -------- --------
Total Vivendi 9,610 9,131 5.2%
======== ======== ========

na* : not applicable.

(a) As they will be published in BALO.

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