PARIS, July 24 /EMWNews/ -- Saft, leader in the design,

development and manufacture of high-end batteries for industry and defence,

announces its sales for the second quarter and first half of 2008.






                                 Sales highlights



     - Q2 2008 sales up by 6.4% YoY at EUR156.5m, at constant exchange rates;



     - Q2 2008 reported sales up 0.3% YoY, impacted by the weakness of the

                                       USD;



     - Continued strong demand for Saft industrial products in Q2 2008, with

     sustained growth for IBG particularly from emerging markets, and with a

                     recovery in the military market for SBG;



     - H1 2008 sales of EUR306.4m, up by 7.2% YoY at constant exchange rates

                            and 1.4% at actual rates;



     - 2008 sales expected to be towards the top of the sales guidance of 4

                     to 6% growth at constant exchange rates.



    John Searle, Chairman of the Management Board, commented:



    "Saft has experienced continued growth during Q2, and the overall

performance in H1 has been slightly ahead of our full year sales growth

guidance. The IBG Division has seen continued strong growth, due to a

positive pricing effect, and the continued strength of demand from emerging

markets for stationary back-up power batteries. I am pleased to report

stronger growth in our SBG Division after a number of quarters being

negatively impacted by low sales in the military market. Finally, for our

RBS Division, the reduction in sales was largely due to price adjustments

related to lower nickel costs.



    Based on our H1 performance, I now anticipate that our 2008 sales will

be towards the top of the guidance range, noting of course that sales in

our RBS Division are linked to the nickel price through a surcharge.



    The LME price of nickel has fallen significantly since the beginning of

May. Whilst this has not impacted the effective nickel cost during the

first half, it will reduce overall material costs during H2. Similar cost

reductions in other metals and materials have not materialized. Saft

continues with its nickel hedging strategy and now has over 60% of the

needs of IBG hedged for the rest of 2008.



    Finally, the recent announcement of the contract with Ford to develop

and supply batteries for a fleet of PHEV Ford Escape highlights the

continuing progress of the Johnson Controls-Saft J/V".




    TURNOVER (EUR millions, under IFRS)

    Second quarter



    Period          Q2 2008     Q2 2007         Growth / decline

    Exchange rate Actual 2008 Actual 2007   at actual     at constant

                                          exchange rates exchange rates



    SBG              60.6        61.9         (2.2)%           5.3%

    IBG              76.6        71.7           6.8%          12.8%

    RBS              19.3        22.5        (13.8)%        (11.0)%

    Total           156.5       156.1           0.3%           6.4%



    The average exchange rate in Q2 2008 was EUR1 to $1.56 (compared with

EUR1 to $1.35 in Q2 2007).




    There was no change in perimeter between Q2 2007 and Q2 2008.

    First half



    Period          H1 2008     H1 2007         Growth / decline

    Exchange rate Actual 2008 Actual 2007   at actual     at constant

                                          exchange rates exchange rates



    SBG              117.6       121.7        (3.4)%           3.5%

    IBG              149.2       137.3          8.6%          14.4%

    RBS               39.6        43.1        (7.9)%         (5.1)%

    Total            306.4       302.1          1.4%           7.2%



    The average exchange rate in H1 2008 was EUR1 to $1.53 (compared with

EUR1 to $1.33 in H1 2007).



    There was no change in perimeter between H1 2007 and H1 2008.



    Q2 sales of EUR156.5m were up by 0.3% as reported, and by 6.4% at

constant exchange rate.



    Industrial Battery Group (IBG)



    Sales growth in Q2 remained strong at 12.8% at constant exchange rates,

bringing the growth rate for H1 to 14.4%.



    The main growth driver during the quarter was the industrial standby

power market, which saw continuing strength, especially from emerging

markets. Demand remained strong from the oil and gas, electrical power

generation and distribution markets.



    Sales growth in H1 2008 was assisted by the price increases implemented

in H1 2007, which only impacted sales during the second half of 2007, and

it is estimated that these accounted for more than half of the growth seen

in H1 2008.



    Whilst most markets remain supportive, the rate of sales growth will be

lower during H2 2008 as H1 2008 benefited from the impact of pricing and

the strong growth in the telecom market.



    Specialty Battery Group (SBG)



    Sales growth at constant exchange rates was 5.3% during Q2 bringing the

growth rate for H1 to 3.5%.



    Continued strength was seen from the civil market, most notably

batteries for metering systems in the US and satellite batteries. This

continued the trend growth seen throughout 2007.



    Q2 saw greater levels of activity in the military market with increased

orders and a recovery in sales, important contracts being announced in the

U.S, U.K and Australia.



    Saft was pleased to announce the successful renewal of the multi-year

contract for lithium batteries for the U.S. Defense Logistics Agency,

especially as the contract award for Saft was for 100% of the U.S. armed

forces' needs. This contract is not expected to materially affect 2008

sales but provides an important base load for the Saft Valdese plant in

North America for future years.



    Rechargeable Battery Systems (RBS)



    Sales in Q2 decreased by 11.0% at constant exchange rates compared with

Q2 2007, and overall in H1 the Division had a fall in sales of 5.1%.



    It should be noted however that approximately 70% of the decrease in Q2

is due to pricing, resulting from the adjustment of the nickel surcharge

and its effect on selling prices.



    The remaining reduction in sales was again in the emergency lighting

segment, where market demand has decreased since mid-2007 and the

competition remains challenging.




    Financial calendar 2008



    2008 Half year earnings                 28 August 2008

    2008 Q3 turnover                       6 November 2008





              IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS

    Certain statements contained herein are forward-looking statements

including, but not limited to, statements that are predictions of or

indicate future events, trends, plans, objectives or results of operation.

Undue reliance should not be placed on such statements because, by their

nature, they are subject to known and unknown risks and uncertainties and

can be affected by other factors that could cause actual results and Saft's

plans and objectives to differ materially from those expressed or implied

in the forward looking statements.

    About Saft



    Saft (Euronext: SAFT) is a world specialist in the design and

manufacture of high-tech batteries for industry. Saft batteries are used in

high performance applications such as industrial infrastructure and

processes, transportation, space and defence. Saft is the world's leading

manufacturer of nickel-cadmium batteries for industrial applications and of

primary lithium batteries for a wide range of end markets. The group is

also the European leader for specialised advanced technologies for the

defence and space industries. With approximately 3,900 employees worldwide,

Saft is present in 17 countries. Its 18 manufacturing sites and extensive

sales network enable the group to serve its customers worldwide. For more

information, visit Saft at http://www.saftbatteries.com






    Press and Investor Contacts:



    Saft



    Jill LEDGER, Corporate Communications and Investor Relations Director

    Tel.: +33-1-49-93-17-77, jill.ledger@saftbatteries.com



    FINANCIAL DYNAMICS



    Press Contacts

    Elodie MARCHAND, Tel.: +33-1-47-03-68-17: elodie.marchand@fd.com

    Henrietta GREEN, Tel.: +33-1-47-03-68-60: henrietta.green@fd.com



    Investor Relations

    Valéry LEPINETTE, Tél.: +33-1-47-03-68-62: valery.lepinette@fd.com

    Clément BENETREAU, Tél.: +33-1-47-03-68-12: clement.benetreau@fd.com