Nexans and Telefónica sign a contract for the supply of two million kilometers of conductors over the next two years

Paris, 09 August 2004 - Nexans, the worldwide leader in the cable industry, announced today that it has signed a contract with Spain's Telefónica for the supply of telecommunications cables amounting to about two million kilometers of insulated conductors over the next two years.

With this contract, Nexans strengthens its position as the leading cable supplier to the Spanish operator. The contract encompasses virtually all telecommunications cable types used by Telefónica, including over 100 different products to be implemented in plain telephony networks as well as advanced broadband services. All cables supplied to Telefónica will be manufactured by the Nexans plant in Maliaño (Cantabria, Spain). With a production capacity in excess of ten million kilometers of conductors per year, the Maliaño plant is one of the largest in the world for this type of cables.

"The trust placed with us by Telefónica through this contract is a further recognition of the good work done for many years by the whole Nexans team", said Yvon Raak, Executive Vice President of Nexan' Europe Area. "The fact that a customer like Telefónica, with such high-level requirements in terms of quality and service, is entrusting nearly half of its anticipated supply needs to Nexans is a recognition of our clear competitive edge and technological leadership."

One of the determining factors in Telefónica's decision has been the service agreement, which includes tight delivery deadlines. As per Telefónica's request, deliveries will have to be made to 49 different possible locations in Spain. In addition, Nexans shall maintain an emergency inventory with guaranteed delivery within 24 hours. Telefónica is a leading global provider of fixed and mobile telephony services, operating more than 101 million lines in both segments. The relationship between Nexans Iberia and Telefónica is based on mutual knowledge and trust built over the years.

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About Nexans

Nexans is the worldwide leader in the cable industry. The Group brings an extensive range of advanced copper and optical fiber cable solutions to the infrastructure, industry and building markets. Nexans cables and cabling systems can be found in every area of people¿s lives, from telecommunications and energy networks, to aeronautics, aerospace, automobile, railways, building, petrochemical, medical applications, etc. With an industrial presence in 29 countries and commercial activities in 65 countries, Nexans employs 20. 000 people and had sales in 2004 of euros 4.9 billion. Nexans is listed on the Paris stock exchange.

http://www.nexans.com/