Equant Receives Offer from France Telecom to Acquire Minority Interest

    Business Editors

    AMSTERDAM, The Netherlands & PARIS--(BUSINESS WIRE)--Jan. 24, 2005--

    Announces Preliminary 2004 Results in Line with
    Expectations, a Substantial Write off of Assets and a $250 Million
    Credit Facility from France Telecom to Meet Financing Requirements

    At a special meeting of Equant N.V.'s (NYSE: ENT) (Euronext Paris: EQU) Supervisory Board held on January 22, 2005, France Telecom, Equant's controlling shareholder, proposed to acquire the full ownership of Equant's business through an acquisition of substantially all of the assets and liabilities of Equant N.V., followed by a distribution of the purchase price to Equant's shareholders and the liquidation of Equant N.V. According to the proposal, Equant shareholders would ultimately receive a distribution of EUR 4.20 per ordinary or preferred share, subject to applicable withholding and similar taxes.
    The Supervisory Board appointed a Special Committee comprised of the three independent directors to evaluate the offer. The Special Committee has retained Rothschild North America as its financial adviser and Cleary Gottlieb Steen & Hamilton LLP as its counsel.

    In addition, Equant also announces that:

    (i) its 2004 results, while still preliminary and not yet
    finalized, are expected to be in line with the guidance
    previously communicated to the financial markets in term of
    sales and EBITDA;

    (ii) the Company expects to face a very difficult year in 2005
    that, together with the five year plan expectations aiming to
    restore its midterm profitability, will lead to a very
    substantial write down of assets; and

    (iii) despite a better than expected year-end cash position, the
    anticipated further deterioration in the Company's results in
    2005 and later years has led the Company to request from
    France Telecom a $250 million credit facility to assist the
    Company in meeting its financing requirements into 2006.
    France Telecom has agreed to provide that facility.

    About Equant

    Equant (NYSE: ENT) (Euronext Paris: EQU) is a recognized industry leader in global communications services for multinational businesses. Equant combines its network expertise - including unmatched seamless network reach in 220 countries and territories and local support in approximately 165 countries - with its expanded services capabilities to provide global, integrated and customized communication services to enable its customers key business processes. Equant serves thousands of the world's top companies, with the industry's most extensive portfolio of communications services and network solutions, including the market-leading IP VPN used by nearly 1,300 global businesses. Equant, a subsidiary of France Telecom, consistently leads industry surveys in corporate user satisfaction.

    This release may contain projections or other forward-looking statements related to Equant that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Equant with the SEC, specifically the most recent filing on SEC Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to our history of operating losses, the unpredictability of growth in our industry, the fact that the interests of France Telecom, our largest shareholder, may differ from the interests of our other shareholders, changing technology, uncertain and changing regulatory restrictions, currency fluctuations, dependence on suppliers, network security issues, intense competition, in our industry, and volatility of our stock price. All forward-looking statements are based on information available to Equant on the date hereof, and Equant assumes no obligation to update such statements.

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CONTACT: Equant Media Relations Global & Europe Frederic Gielec, +33 1 46 46 21 89 Email: frederic.gielec@equant.com or North and Latin America Elizabeth Mayeri, 212-251-2086 Email: elizabeth.mayeri@equant.com or Equant Investor Relations Ashley Rayfield, +44 208 321 4581 Email: ashley.rayfield@equant.com or Isabelle Guibert, +33 1 46 46 99 53 Email: isabelle.guibert@equant.com

KEYWORD: GEORGIA FRANCE NETHERLANDS INTERNATIONAL EUROPE INDUSTRY KEYWORD: ADVERTISING/MARKETING TELECOMMUNICATIONS NETWORKING SOURCE: Equant N.V.

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