2003) Spanish Institute of Foreign Trade-Country Cards 2003 POLICY FRAMEWORK (In April, 2003) UNITED KINGDOM LILLE BELGIUM BRUSSELS, BONN RIN FORM OF GOVERNMENT: Parliamentary Republic. HEAD OF STATE: President of the Repu blic, elected since 2002 by direct suffrage every five years. Since May 2002, Ja cques Chirac, leader of the UMP. PARLIAMENT: Formed by a bicameral National Asse mbly (577 deputies elected by direct suffrage every five years) and Senate (321 members with a term of nine years). The Assembly is completely renewed every fiv e years, while the Senate does by thirds every three years. In June 2002, after being rescheduled election and term of office of President of the Republic, whic h has been reduced to five years to prevent the system of cohabitation (Presiden t and head of government of different political persuasion), were held last legi slative elections. PRIME MINISTER: Since June 2002, Jean-Pierre Raffarin (UMP). Governing Party: the Union for a Popular Movement (UMP, 355 deputies), a new par ty created in November 2002 under the same acronym for the Union for Presidentia l Majority, encompasses almost all of the right wing parties, and its Chairman A lain Juppe. Among right-wing political formation, the Union for French Democracy (UDF, 29 MPs) and other diverse right parties (15 deputies) are represented in parliament without being integrated in the UMP. The main opposition parties are the Socialist Party (PS 140 members) and the Communist Party (PC, 21 deputies). 61,387,038 Population density: (Projection 1.1.2003) 108 hab./km2 CANAL DE LA MANCHA LUXEMBOURG THE HAVRE ROUEN GERMANY LUXEMBOURG GROWTH RATE: (Projection 1.1.2003) 0.49% URBAN POPULATION: (1999 census) 76% SE

NA METZ PARIS BREST LE MANS A SEN STRASBOURG DISTRIBUTION BY GENDER: (Projection 1.1.2003) MALE: FEMALE: Age distribution: (Projection 1.1.2003) 48.6% 51.4% PEOPLE MAIN CITIES: (Thousands of inhabitants., Agglomerations, 1999 census) PARIS: (Capital) 10,560 1,597 1,397 1,108 917 882 ATLANTIC OCEAN NANTES A LOIR RIN BERNE Lake Geneva DA NO RO LO GO LYON: SWITZERLAND 0-14: 15-64: 65 +: 25.4% 58.5% 16.1% MARSEILLE: LILLE: TOULOUSE: BORDEAUX: MEDITERRANEAN SEA CORSICA LA ROCHELLE LYON ITALY AJACCIO RHONE BORDEAUX

INCOME BAYONNE NA RO GA PAU TOULOUSE MARSEILLE MONTPELLIER PERPIGNAN Gross Domestic Product GDP by expenditure components: Current prices (EUR billions, 2002) VALUE% 0 50 RED RIVER RAIL ROAD MAIN BUSINESS AREAS 100 150 200 km HENDAYA SPAIN ANDORRA MEDITERRANEAN SEA Private consumption Public consumption Gross fixed capital formation Changes in inventories Exports of goods and services Imports of goods and services GDP at m arket prices 368.6 822.8 297.7 1507.3 -11.8 411.4 -381.4 54.6 24.5 19.8 -0.8 27.3 -25.3 100.0 GEOGRAPHIC FEATURES The French Republic is situated on the edge of Western Europe (549 200 km2, 55% of which are agricultural area and 27% forest). The island of Corsica is part of mainland France. Also integrate the French Republic five overseas departments ( Guadeloupe, Martinique, French Guiana, Réunion and-Miquelon Saint Pierreet) and four overseas territories (New Caledonia, French Polynesia, Wallis and Futuna, a nd Mayotte). In France are most types of relief the European continent. Its aver age altitude is 342 m, exceeding 1000 m only 7% of its surface. Overall dominate the regions of plains, hills and plateaus of low height. The only truly mountai nous regions are the Central Massif, the Alps, the Jura and the Vosges mountains to the east and the Pyrenees to the south, as well as Corsica. The highest peak in France and across Europe, Mont Blanc (4,807 m), is in the Alps. The main Fre nch rivers are the Seine, the Loire, the Garonne and the Rhone. The Seine is the only one who does not present difficulties for navigation. There are 6324 km of waterways in use, the total length of the channels in use reaches 4613 km. Over all, the weather in France can be described as temperate. However, taking into a ccount its size and diversity of altitude, can be divided into four different cl imate types: the Atlantic or maritime temperate, from Cherbourg to the Pyrenees, near the Atlantic coast, the continental climate between Cherbourg and the Rhon e valley, the Mediterranean in the south coast and Corsica, and the skiing in th e mountains of the Alps and the Pyrenees. SOCIAL INTEREST DATA Religion: According to Interior Ministry estimates 2000, 90,5% of the population is Catholic, Muslim 6.5%, 2.0% Protestant 1.0% Jewish. OFFICIAL LANGUAGE: Frenc h is the official language. Also Breton and Basque is spoken in small areas of i nfluence. REAL GROWTH OF GDP:

(2002) 1.2% GDP PER CAPITA: (Euros, 2002) 24 554 AVERAGE TEMPERATURES MEDIA REPORT: 10 º to 15 º C IN PARIS was around 3.4 º C in January and 19.1 º C in July. NATURE OF THE ECONOMY ECONOMIC ACTIVITY VALUE ADDED BY BRANCH OF ACTIVITY EMPLOYED POPULATION BY SECTOR *: (2002) (Percent structure, 2002)% TRANSPORT INFRASTRUCTURE ROADS: The French road network is modern, highly developed, and continues to exp and. Currently comprised of over 1,000,000 km, of which 27,233 km are national h ighways and 9,300 km highways, linking with the major roads of Europe. RAIL: The railway network has a total area of 33 001 km, of which 1546 km are high speed and 16 113 km of double track. More than 50% are electrified. There are several lines of high speed (TGV) connect major cities in France and come to Geneva, Bru ssels and from Paris via the tunnel under the Channel, to London. PORTS: The maj or ports of the country are in order of importance in the Mediterranean, Marseil le, Le Havre and Dunkirk in the Atlantic. Other highlights include the ports of Brest, Nantes, La Rochelle, Bordeaux and Dieppe. French ports have proved uncomp etitive until recently, and lost business for the benefit of Antwerp in the Atla ntic and from Genoa and Barcelona in the Mediterranean. AIRPORTS: Paris has two international airports: Roissy (Charles de Gaulle) and Orly, and also the airpor ts serving international flights from Lyon, Marseille, Strasbourg, Bordeaux, Tou louse, Lille and Mulhouse. AGRICULTURE: INDUSTRY: CONSTRUCTION: SERVICES: 1.2% 6.1% 18.3% 74.4% Energy Industry Agriculture Construction Services Total value added 3.1 17.3 2.6 4.9 72.1 100.0 * Excludes self-employed. UNEMPLOYMENT RATE: (February 2003) Í 9.2% CHAR LES PA STICASDELOSPRINCI PRODUCTIVE SECTORS PRICES: (Change in December. 2002/dic. 2001) CONSUMER PRICES: GDP 2.3% 3.1% GOVERNMENT DEFICIT:

(2002) BALANCE OF PAYMENTS (Millions of euros, 2002) Goods and services Transfers Revenue Checking Account Direct investment capital Derivatives Portfolio investment Other investment Reserve assets Financial accou nt errors and omissions 32,883 12,038 -15,038 29,883 -152 -17,956 -20,463 3,039 -13,429 4,201 -44,608 14 ,878 INTERNATIONAL RESERVES (Million euros as at 31 January 2003) Total international reserves of IMF Gold Currency Amount 61,718 23,808 6,127 31,783 The French agriculture produces mainly cereals (mainly wheat), vegetables, wine, dairy products and meat is still noteworthy that the first European producer an d second largest exporter after the United States, agricultural products (and si nce it regards wine, the first exporter in the world). However, the value added by agriculture in the French economy is relatively modest (3% of GDP in 2002), m asking its considerable influence in French life, both in economic as in politic al and social aspects. The industrial sector is at the forefront of technology. Among the main manufacturing industries include steel, chemical, semimanufacture ra, pharmaceutical, food, electronics and mechanics (space aeronautics, armament s, automotive). Industrial production, which in 2001 recorded a minimal growth i n 2002 failed to recover and ended the year still below its starting level. Rega rding the service sector, noted for their important and dynamic financial servic es, transport and communications and tourism subsector. In all these sectors and sub-sector in construction and public works, France has a large network of comp anies of all sizes. The degree of internationalization of French firms is also remarkable, since they have about 14,000 foreign affiliates. However, there are still many small family businesses, so that support for SMEs is often a priority of economic policy. As regards the public sector, continues the process of priv atization of state industries. In 2003 are planned privatization of Air France a nd the opening of the capital of Électricité de France (EDF) and Gaz de France ( GDF). The traditional core of the public company is formed by a few gigantic siz e companies: France Télécom, EDF, GDF, La Poste, Société Nationale des Chemins d e Fer (SNCF)€Réseau Ferré de France (RFF), Charbonnages de France, Régie Autonom e des Transports Parisiens (RATP) and other local public transport companies, Ai r France, Aéroports de Paris, seaports and river self-employed and most of the m otorway concession companies toll. With the exception of France Telecom and Air France, these companies have no corporate personality but as a public, with much of his personal staff, so any opening of capital requires an amendment prior to its legal status. In September 2002 it was estimated that there were 1500 publi c companies employing more than 5% of employees and that together represented a capitalization of 100 billion euros. BUSINESS AND BANKING SERVICES BANK MARKETING France, for its proximity and acceptance of Spanish products (in 2002 accounted for 19.2% of Spanish exports), can and should be considered as a priority, becau se through it you can access not only to the French market but also the European countries of your environment, thanks to an unbeatable location and excellent t ransport infrastructure. Distribution channels are highly developed in France. T

here are more than 130 000 wholesalers and more than 250,000 retail outlets. The key feature is the importance of large retailers representing more than two thi rds of the food and beverage sales, over half of the perfumery, cosmetics and pe rsonal hygiene products, over a third of household appliances and lower rates bu t significant in household equipment, toys and clothing. Therefore, for exporter s of consumer goods is essential to achieve purchasing power of large retail cha ins. The Economic and Commercial Office Embassy of Spain in Paris has extensive infor mation on shopping center retail chains, importers, dealers, fairs French, etc. In addition, proceeds to the annual campaigns promoting different products. The Bank of France (Banque de France) is the central bank. In the banking sector is making a significant market consolidation in 2003 has resulted in the acquis ition of Crédit Lyonnais Crédit Agricole. Other French credit institutions are t he Crédit Mutuel, La Poste, the BNP-Paribas, Société Générale, the group of Banq ues Populaires and Caisses d'group Epargne (savings). The Spanish financial inst itutions with operational offices in France are the Banco Bilbao Vizcaya Argenta ria, Banco Santander Central Hispano, Banco Pastor, Banco Popular Spanish, Banco Sabadell, Caixabank and Caixa de Catalunya. Representative offices have Spanish Credit Bank, Caixa Galicia, Ourense Caixa, Caja Madrid, the Spanish Confederati on of Savings Banks and Ibercaja. MARKET OPENNESS AND ACCESSIBILITY MARKET OPENING DEGREE (Goods, 2002) (goods, 2001) MARKET ACCESS 42.8% 21.4% TOTAL IMPORT / EXPORT GLOBAL TOTAL IMPORT / EXPORT GLOBAL 5.1% 5.2% FOREIGN TRADE (IMPORT +.) / GDP Imports / GDP TRADE REGIME STRUCTURE OF FOREIGN TRADE GEOGRAPHICAL DISTRIBUTION OF THE FRENCH FOREIGN TRADE (Percent structure, 2002) IMPORTS EU 17.2% GERMANY 59.6% 23.5% OTHER WORLD EXPORTS EU 14.5% GERMANY 62.0% 25.0% OTHER WORLD The introduction of goods originating from member countries of the EU or from th ird countries which are in free circulation in that Member State is not subject to quantitative restrictions or licenses. Nor is the issue of French goods to th e EU Member States. The import of agricultural products from third countries tak es place in free trade arrangements, without national restrictions or of the Dir ective. Only requires the submission of an import license for free circulation o r certain products, according to Community legislation in the agricultural secto r TARIFFS concerned. As an exception to the general rule remains the administrative author ization for the importation of ivory and some cigars. The import of industrial p roducts from third countries are also made in free trade arrangements with some exceptions: the import of certain goods (textiles and clothing, footwear, porcel ain and ceramics, and certain steel products) in certain countries is subject to restrictions quantitative or surveillance measures, and other specific goods (d

rugs, explosives,€firearms and ammunition) is subject to special licenses. 9.0% ITALY 2.2% SWITZERLAND 3.2% JAPAN 7.2% SPAIN 3.5% CHINA UNITED KINGDOM 10.3% JAPAN 1.7% SPAIN 9.7% SWITZERLAND 3.2% EE. UU. BELGIUM 8.1% NETHERLANDS 6.6% OTHER 4.7% EU 14.9% EE. UU. BELGIUM ITALY 8.0% NETHERLANDS PORTUGAL REST EU 9.1% 7.2% 4.0% 1.5% 5.7% FRENCH FOREIGN TRADE BY PRODUCTS Tariff chapters of the Combined Nomenclature of the EU (million, 2002) VALUE% CHANGE 02/01 HISPANO-FRENCH BILATERAL TRADE Tariff chapters of the Combined Nomenclature of the EU (million, 2002) VALUE% CHANGE 02/01 IMPORTS (CIF) 84. Nuclear reactors, boilers, machinery 87. Motor vehicles, tract ors 85. 27 Electrical machinery and apparatus. Mineral fuels and oils 29. 39 Org anic chemicals. Plastics and articles thereof 90. Optical instruments and appara tus 30. Pharmaceuticals 72. Iron and steel 48. Paper and paperboard imports Rema ining EXPORTS (FOB) 87. Motor vehicles, tractors 84. Nuclear reactors, boilers, machinery 85. 88 Electrical machinery and apparatus. Aircraft, spacecraft 30. Ph armaceuticals 39. Plastics and articles thereof 29. 22 Organic chemicals. Bevera ges, spirits 90. Optical instruments and apparatus 72. Iron and steel exports Re maining 321,960 46,298 35,496 30,666 29,520 11,762 11,686 10,331 8,895 7,467 7,342 122,4 97 322,941 45,586 40,283 34,385 18,202 15,068 10,992 9,553 9,275 9,077 8,659 121 ,861 -3.5 -9.3 2.6 -11.5 -5.9 1.0 -4.3 -1.4 8.4 -3.7 -2.6 -1.4 -1.7 4 , 0 -7.2 -9.9 5.4 11.1 -1.6 -4.6 5.4 1.4 1.5 -0.8 SPANISH EXPORTS (FOB) 87. Motor vehicles, tractors 84. Nuclear reactors, boilers , machinery 85. 08 Electrical machinery and apparatus. 39 edible fruit. Plastics and articles thereof 07. Vegetables 48. Paper and cardboard 73. Articles of Iro n or steel 72. Iron and steel 94. Remaining furniture exports SPANISH IMPORTS (C IF) 87. Motor vehicles, tractors 84. Nuclear reactors, boilers, machinery 85. 72 Electrical machinery and apparatus. Iron and steel 39. Plastics and articles th ereof 30. Pharmaceuticals 48. Paper and cardboard 29. 88 Organic chemicals. Airc raft, spacecraft 33. Remaining exports essential oils 25,089 8,420 1,953 1,403 974 886 585 570 558 509 490 8,741 28,431 9,564 2,630 2, 164 1,136 905 867 696 608 551 536 8,774 -0.9 -2.9 -11.2 -5.1 9.7 -1.3 4.3 3.1 5.9 6.4 -1.8 2.0 -2.0 -0.2 -9.7 -2.1 -1.8 7.1 14.8 2.7 -3.5 -34.1 -2.2 -0.9 The introduction of goods from other EU countries or communitaurised is exempt f rom payment of fees. The goods from third countries are subject to Community tar iff duties. MEMBERSHIP ORGANIZATIONS COMMERCIAL AND ECONOMIC EUROPEAN UNION (EU) ECONOMIC AND MONETARY UNION (EMU) FRENCH FRANC AREA ORGANIZA TION OF ECONOMIC COOPERATION AND DEVELOPMENT (OECD) World Bank (WB) Internationa l Monetary Fund (IMF), WORLD TRADE ORGANIZATION (WTO) CONFERENCE OF THE UNITED N ATIONS TRADE AND DEVELOPMENT (UNCTAD) EUROPEAN BANK FOR RECONSTRUCTION AND DEVEL OPMENT (EBRD) African Development Bank (ADB) ADB Desarrrollo (ADB) INTER-AMERICA

N DEVELOPMENT BANK (IDB) LEGAL FRAMEWORK FISCAL SYSTEM There are three categories of value added tax (TVA): 19.6% General and two low o f 5.5% and 2.1% respectively on basic goods (drugs, certain food and agricultura l products , water, books, etc..). The general rate of corporation tax is 34.33% ; rests evenly on profits distributed or not distributed. There is a reduced rat e of 15.45% over the first 38 000 euros of the tax base to companies that billed less than 7.63 million per year, provided that at least 75% of the capital belo ngs to individuals. PRACTICAL INFORMATION CURRENCY The currency is the euro as in Spain. LINKS FROM SPAIN AIRWAY: Iberia, Air France, Air Europa and other European airlines connect directly to s everal cities in both countries. Between Madrid and Barcelona and Paris are made daily flights. LOCAL TIME GMT plus one hour in winter and two hours in summer, as in Spain. By Sea: Several shipping lines that link the Mediterranean and Atlantic ports regularly in both countries. The trade between France and Spain is very important. Most of the traffic between two countries is by road. WORK SCHEDULE SHOPS VARIABLE. IN GENERAL, Monday to Saturday from 9:30 to 19:00. LAND: STANDARDIZATION AND CERTIFICATION OF PRODUCTS Some imported products, whatever their origin or provenance, must adhere to cert ain technical rules that lead to approval. Not surprisingly, are binding directi ves and EU regulations. Moreover, as in all countries, there are volunteer techn ical requirements imposed by the market and competition, for which there are dif ferent certification systems. The quality standards ISO 9000 series are increasi ngly considered as a factor of competitiveness for businesses. The French Associ ation for Standardization (AFNOR) is the body recognized by the French governmen t to develop standards and certification activities. This partnership gives the mark NF in accordance with French standards. AFNOR addition, there are many cert ification bodies such as the Scientific and Technical Centre for Building (CSTB) , National Testing Laboratory (LNE) and Technical Union of Electricity (UTE). Re ferences AFNOR standards can be consulted ( and acquired (www.bouti on the Internet. PUBLIC ADMINISTRATION Monday through Friday, 08:30 to 12:00 and 13:00 to 17:30. BANKS VERY variables, each with increasing frequency: Monday to Friday, 09:00 to 16:30 . The nearly 600 km common border with several road crossings and two focal points provide excellent rail communications with France, a country of transit by land

required for most of the rest of the continent. Two French motorways connect wi th two other Spanish by Irun and Junquera. The daily carried Talgo Madrid-Paris direct route. There is also a Talgo Barcelona-Paris. USEFUL ADDRESSES IN FRANCE VACATION AND HOLIDAYS Yearly holidays: In principle, employees are 2.5 days of paid leave per full month worked. Usuall y taken three or four weeks of paid vacation during the months of July and Augus t and a week at the end of the year. USEFUL ADDRESSES IN SPAIN EMBASSY OF FRANCE IN MADRID CHANCELLOR Salustiano Olózaga, 9 28001 Madrid tel.: 91 423 8900 fax: 91 423 8901 EMBASSY OF SPAIN IN PARIS CHANCELLOR 22, Avenue Marceau 75381 Paris tel.: 00 (33) 144 43 18 00 fax: 00 (33 ) 147 20 56 69 ce: HOLIDAYS: There are eleven public holidays per year in 2003, are as follows: January 1 (Ne w Year), April 21 (Easter Monday), 1 May (Labour Day), May 8 (Victory Anniversar y 1945), 29 May (Ascension), 9 June (Whit Monday), 4 July (National Holiday), Au gust 15 (Assumption Day), November 1 (All Saints), 11 November (Anniversary of t he Armistice of 1918) and December 25 (Christmas). ECONOMIC AND TRADE OFFICE OF THE EMBASSY OF SPAIN IN PARIS The Trade Office has a specialized Promotion Center food / wine and consumer goo ds COMMERCIAL OFFICE OF EMBASSY OF FRANCE IN MADRID Marqués de la Ensenada, 10 28004 Madrid tel.: 91 837 7850 fax: 91 837 7851 PROTECTION OF PATENTS AND TRADEMARKS France is part of the Paris Convention for the Protection of Industrial Property and the Convention Establishing the World Intellectual Property Organization (W IPO). Specific issues regarding patents, is a signatory of the Treaty on Patent Cooperation Treaty (PCT) and the Munich Convention on European patents (European Patent Office). As far as brands are concerned, is a signatory to the Madrid Ag reement Concerning the International Registration of them. HEALTH PRECAUTIONS None in particular. 49-51, Avenue George V 75008 Paris Tel.: 00 (33) 153 57 95 50 fax: 00 (33) 147 2 0 97 22 ce: @ buzon.oficial FRANCO-SPANISH CHAMBER OF COMMERCE AND INDUSTRY IN MADRID Ruiz de Alarcón, 7 28014 Madrid tel.: 91 522 6742 fax: 91 523 3642 CONSULATE GENERAL OF SPAIN IN PARIS * 165, Bd Malesherbes 75840 Paris Tel.: 00 (33) 144 29 40 00 fax: 00 (33) 140 54 0 4 74 * There are also Consulates General of Spain at Bayonne, Bordeaux, Strasbourg, L yon, Marseille, Montpellier, Pau, Perpignan and Toulouse. ENTRY FORMALITIES For citizens of the European Union, national identity card or passport. SECRETARY OF STATE FOR TRADE AND TOURISM. MINISTRY OF ECONOMY Paseo de la Castellana, 162 28046 Madrid tel.: 91 349 3500 fax: 91 349 5242 cc:

@ buzon.oficial ROAD TRANSPORT All international conventions on road transport, CMR, TIR, ADR and ATP, are inco rporated into their laws. Spanish carriers that want access to France at the bor der must present a Community license in force. Can freely enter the carriage of private and public services in light vehicles.€France also requires domestic and cabotage transport is carried out on its territory, filling in a Document de Su ivi provided they are transported more than three tons to more than 150 km (www. POWER Voltage: 220 V, single phase, 380 V, three phase. Frequency: 50 Hz CHAMBER OF COMMERCE OF SPAIN IN PARIS 17, Avenue de l'Opéra 75001 Paris Tel.: 00 (33) 142 61 33 10 fax: 00 (33) 142 61 16 22 SPANISH INSTITUTE OF FOREIGN TRADE (ICEX) Paseo de la Castellana, 14-16 28046 Madrid tel.: 91 349 6100 fax: 91 431 6128 ww SOURCES: Economic and Commercial Office Embassy of Spain in Paris, Databases ICE X, Bank of Spain, Banque de France, National Institute of Statistics and Economi c Studies in France (INSEE), WTO, WIPO. APRIL, 2003 Legal Deposit: M-NIPO 00000-2003: 381-03-007-9 ISBN: 84-7811-482-3