PR Newswire/Les Echos/

Press release

Planned agreement between Safran and SNPE for the acquisition of SNPE Matériaux
Energétiques

Paris, October 1, 2010

Safran (NYSE Euronext Paris: SAF) has announced its intention of setting up a
commercial and industrial collaboration framework agreement with SNPE to
strengthen the solid propulsion industry, a key to the long-term viability of
European launch vehicles and missiles. The project calls for the acquisition by
Safran of SNPE Matériaux Energétiques (SME) and its subsidiaries, including a
50% stake in Roxel, and a 40% stake in Regulus, but not including Eurenco. In
2009, these businesses generated sales (non-audited) of 270 million euros.

The businesses to be acquired by Safran represent a total enterprise value of
296 million euros, for an estimated revenue multiple in 2011 of approximately
1x, and an EBITDA (earnings before interest, taxes, depreciation and
amortization) multiple of about 6x, excluding subsequent operational
synergies.

After completion of discussions between the two groups, and following
consultation procedures with employee representative bodies, the transaction
could be finalized during the first half of 2011, pending regulatory
authorizations based on a favorable recommendation by the French Commission des
Participations et des Transferts (CPT).

Creating a world leader in solid propulsion

Safran, via its subsidiary Snecma Propulsion Solide (SPS), is the European
leader in the design and construction of solid rocket motors (SRM). SNPE,
through its subsidiary SME, is the European leader in energetic materials for
propulsion. This project is designed to create a world leader in solid
propulsion, based on a simplified industrial model.

The combined solid propulsion business consolidated within Safran would
represent nearly 3,000 employees, a Research & Development unit with over 600
scientists and engineers, and annual revenues estimated at more than 650 million
euros in 2011.

Safran will finance this transaction using available cash. It will have an
accretive effect on the Group's results right from the first year, before the
accounting entries concerning the purchase price allocation (PPA). SNPE will
give Safran a specific guarantee concerning environmental liabilities due to
past operations.

Jean-Paul Herteman, CEO of Safran, said: "I am particularly pleased to announce
this project between Safran and SNPE. It should enable us to create a new center
of excellence in our Group, one that will have a very positive technological
impact on our other businesses, especially concerning solid propulsion and
composite materials. We will do everything in our power to ensure that the
people in the companies joining the Safran group will be integrated as
harmoniously as possible."

                                 * * * * *

About Safran

Safran is a leading international high-technology group with three core
businesses: Aerospace (propulsion and equipment), Defence and Security.
Operating worldwide, the Safran group has 55,000 employees and generated sales
exceeding 10.4 billion euros in 2009. Working alone or in partnership, Safran
holds world or European leadership positions in its core markets. The Group
invests heavily in Research & Development to meet the requirements of changing
markets, including expenditures of 1.1 billion euros in 2009. With a market
capitalization of approximately USD 10 billion, Safran is listed on NYSE
Euronext Paris and its share is part of the SBF 120 and Euronext 100 indexes.

For more information: www.safran-group.com 

Press
Catherine Malek            +33 (0)1 40 60 80 28 catherine.malek@safran.fr

Investor Relations
Pascal Bantegnie           +33 (0)1 40 60 80 45 pascal.bantegnie@safran.fr
Antoine-Pierre de Grammont +33 (0)1 40 60 80 47
antoine-pierre.degrammont@safran.fr
                      
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