Human Resources

2008 Employee Share Plan

UK SHARE OFFER25TH FEBRUARY 2008

2008 Employee Share Plan

2Human Resources

THALES EMPLOYEE SHAREHOLDING

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

12/1998 12/1999 12/2000 12/2001 12/2002 12/2003 12/2004 12/2005 12/2006 04/2007 12/2007 05/2008

potential

Human Resources

2008 Employee Share Plan

2008 OFFER

2008 Employee Share Plan

4Human Resources

CONTENTS

Thales strategy 2008 Offer

In depth… In time…

5Human Resources

WORLDWIDE OFFER (> 150 employees)

France – 34,749UK – 9,085

Netherlands – 1,967

Germany – 4,626

Australia – 3,470

South Africa334

Canada – 1,115

USA – 2,937

Spain – 2,071 Belgium – 1,008

Italy – 2,679

Norway - 207

Switzerland - 272

Austria - 174

Portugal - 156

Singapore - 217

Argentina - 234

17 countries – 65 000 persons95% of Thales staff

Headcounts April 2007

6Human Resources

THE BENEFICIARIES

Employees

who have an employment contract with one of the Thales group companies, or JVs held at 50% or higher

with at least 3 months service on the last day of the cancellation period (28 April 2008)

Expatriates : specific rules Employees who leave on or before 1st May,

even though they applied to join, can be excluded from the offer (provided HBOS is informed on or before 30 April).

7Human Resources

THE 2008 EMPLOYEE SHARE PLAN

3,500,000 shares available for the offer

through 2 formulas which can be combined

3,500,000 shares available for the offer

through 2 formulas which can be combined

« Classic Share » « Share Plus »

Maximum of 2 million shares availableAllocated in priority

8Human Resources

“CLASSIC SHARE” FORMULA

Example>>

PersonalContribution

1 share with 20% discount

>> Subscription >> At selling

InitialInvestment

Re-investedDividends

+

ClassiClassicc

>> During 5 years

PersonalContribution

1 share with 20% discount

Re-investedDividends+

+all capital

gain

all capital loss

-

10Human Resources

“SHARE PLUS” FORMULA

Example>>

PersonalContribution

1 share with 15% discount

>> Subscription

Share PlusShare Plus

>> During 5 years

+

Locked in FCPE

3 Shares financed by

the bank

>> At maturity in 2013

Initial investment on 1 share protected

100% of the gain on 1

share

Capital gain+

+ 69% of the average

protected gain on 3 shares

Additional gain

+