Thales Group statement in reference to Arnaud Montebourg's letter to Michel Sapin, Minister of the Economy and Finance

Contrary to statements by Mr Arnaud Montebourg, Thales has never had any intention of selling or merging its rail signalling business. Quite the reverse is true: Thales intends to develop this rail signalling activity and to make it the world market leader as one of core businesses of the Group.

The agreement with CRRC is purely commercial. It is not an exclusive agreement and absolutely no transfer of ownership is involved. It is a response to demand from transport operators for solutions that are compatible with rolling stock from any provider (Alstom, Siemens, Hitachi, Bombardier, etc.).

Technological excellence has enabled Thales to deliver strong growth in the last four years and to create a large number of jobs. In 2016, the Group will have hired 6,000 new staff around the world, including 2,000 in France.

Underpinning this world leadership is a common core of best-in-class technologies that meet the requirements of all of Thales's five major markets: Aerospace, Space, Ground Transportation, Defence and Security.

In the Ground Transportation sector, Thales designs, develops and manufactures some of the world's most capable signalling systems. The Group's expertise in cybersecurity, artificial intelligence, big data, connectivity and other advanced technologies is expected to further consolidate its leadership in this industry.

Thales's strategy is to serve all transport operators and provide solutions that are compatible with all types of rolling stock. As a result, the Group has operations in 52 countries, and has been serving the Chinese market for the last five years. Thales's CBTC urban signalling solution is in service in 40 of the world's largest cities on more than 80 metro lines, transporting 3 billion passengers a year.

This activity is one of the Thales Group's core businesses and core technologies.
Thales has no plans, and has never had the intention, to sell or merge this activity in any way.