Based on current estimates, these synergies will gradually contribute to both partners� earnings, with a combined net gain of 17 million euros forecast in 2005, 33 million euros in 2006.

Net gain from synergies should reach 46 million euros in 2007, of which 30 million euros for Club Méditerranée and 16 million euros for Accor.

Total gains from synergies, based on current estimates.:
 

With 30 working groups involved in studying synergies beneficial to both Accor and Club Méditerranée, roughly 100 actions were identified in four major areas:

• Increasing revenues.
• Optimizing purchasing.
• Sharing skills and expertise.
• Human resources.

The increase in revenues is currently expected to contribute a combined 19 million euros to 2007 earnings, of which 5 million euros for Accor and 14 million euros for Club Méditerranée. Synergies will result mainly from cross-selling of services to each partner�s respective customers, with in particular:

• A more visible, accessible offering on the two companies� websites and in their loyalty programs, thereby enhancing their attractiveness.
• For Club Méditerranée, the support of the Accor network in markets where it holds strong positions (e.g. Germany, Brazil, China and Australia) and a
• European distribution network of 6,000 affiliated leisure travel agencies.
• For Accor, the distribution of its hotels by Jet tours.
• An expanded offering for both companies� business and leisure customers.

Based on current estimates, purchasing optimization is expected to result in net savings of 15 million euros in 2007, of which 7 million euros for Accor and 8 million euros for Club Méditerranée. Four major purchasing families have been identified: air travel, consumables (food and beverages), onsite services (power, IT, laundry and cleaning) and advertising and marketing.

Sharing skills and expertise

Skills-sharing is expected to contribute an additional 12 million euros to combined 2007 earnings, of which 4 million euros for Accor and 8 million euros for Club Méditerranée.

The resulting synergies will improve service quality by, for example:

• Sharing best practices to improve call center service.
• Developing new offerings on the Jet tours website using Go Voyages technology.
• Creating a Hotel Service Manager position in the ten largest Club Med villages, with Accor�s support.
• Using Club Med Gym�s expertise to enhance Accor hotel fitness products.

In the area of human resources, synergies are qualitative in nature. They will create new opportunities for employees of both companies by encouraging mobility and making jobs in hotels and tourism more attractive. Specifically, best practices will be shared in the areas of hiring, mobility, training and expatriate management.

The study by Accor and Club Méditerranée teams was carried out in a highly constructive, enthusiastic atmosphere, with the active involvement of executives and key managers from both companies.

According to Jean-Marc Espalioux, Chairman and CEO of Accor Management Board, the acquisition of a 28.9% stake in Club Méditerranée �is in line with our ongoing, long-term strategic commitment to meeting the needs - from economy to luxury - of all customers, whether they�re traveling for business or for recreation and leisure.�

With such an industry partner, Club Méditerranée, said the Chairman of the Executive Board Henri Giscard d�Estaing, �will speed its move toward a friendly, multi-cultural upmarket positioning and enhance its recovery.�

With 158,000 people in 140 countries, Accor is the European leader and one of the world's largest groups in travel, tourism and corporate services.

Club Méditerranée, established under the brand name Club Med in forty countries on five continents, is the inventor and world leader of all-inclusive vacations since 1950, and has 90 villages by the sea and in the mountains, and one cruise ship, in some of the world�s most beautiful locations.

Accor 
Marie-Claire Camus 
Tel. : +33 (0)1 45 38 84 85

Club Méditerranée 
Thierry Orsoni
+33 (0)1 53 35 31 29