Rallye questions

All,

We have word from counsel on two questions:

Q1: What can Sauvegarde do to the convertible option of a bond?

Answer: Nothing directly. French legislation does not directly address how exchange right of a convertible bond are to be treated in a term-out.

Interpretation: Between having the right and not having it we prefer to have it. There is a good chance that the converts are too small to defend themselves within the wider bondholder class, but we think its worth some option value.

Q2: If Naouri loses control, does that trigger a CoC under the EMTM program of Casino?

Answer: The understanding is that as long as Rallye hold control of Casino, a change of control at Fonciere Euris level and above would not count towards triggering the Casino EMTN.

Interpretation: Opinion on this matter seems to oscillate and was stated with a caveat in this case. So we will still take it with a grain of salt.

Wolfgang