Regulatory News:

The BIC Group (Paris: BB) and the Cello Group today announce that they have signed a definitive agreement whereby BIC Group acquires 40% of the Cello writing instrument business for 7.9 bn INR (124 million euros/ 161 million USD).1 The acquisition is expected to be completed by early 2nd quarter 2009.

As part of the agreement, BIC has a call option in 2013 to increase its stake to 55% at a price based on a formula tied to earnings.

Founded in 1995 by the Rathod family, Cello Pens is India's largest manufacturer and distributor of writing instruments, with a 37% domestic market share and a presence in Africa, Middle-East and Asia. With approximately 5,000 employees, Cello Pens generated 4,100 million INR revenues in 2007-20082 (64.5 million euros) and approximately 30% EBIT margin.

Cello Pens is a vertically integrated manufacturer with modern facilities, strong in-house research, product development and marketing capabilities. With its broad portfolio of products and countrywide distribution network, the Cello brand is one of the most recognized in India.

This partnership between two strong brands provides BIC with an immediate large footprint in India. This agreement is fully consistent with BIC's strategy to develop its stationery business in new geographies and to strengthen its position in fast-growing emerging markets. With mid to high-single digit annual growth, India is one of the world's largest stationery markets.

The transaction is valued in Indian Rupee (INR) and will be financed mostly through USD denominated bank loans and is expected to be EPS accretive from 2009.

Bruno Bich, BIC Chairman of the Board, said: ?One of the reasons for the success of BIC's strategy since the beginning has been to build an international presence. India is one of the largest and fastest growing markets in the world. This partnership with the number 1 Indian writing instruments company, Cello Pens, is a tremendous opportunity. It will reinforce the long-term prospects for both BIC and Cello Pens and generate value for all our stakeholders.?

Mario Guevara, BIC Chief Executive Officer, added: ?Cello Pens' management team shares our business values and is focused on delivering the highest quality products to consumers. We are pleased to partner with a company that will contribute to the Group's long-term profitable growth.?

Pradeep Rathod, Cello Pens Chairman, said: ?The partnership between Cello Pens and BIC will further strengthen an already strong foundation in India and will allow us to accelerate our plans for expanding the reach of both our brands. We look forward to the benefits this partnership will bring to both our companies as we grow together.?

1 : 63.6 INR = 1 EURO (20/01/2009) / 49 INR = 1USD (20/01/2009)

2 : fiscal year ending March 31

2009 Agenda

Full Year 2008 Results   February 11th, 2009   Meeting (BIC headquarters)
1st Quarter 2009 Results   April 22nd, 2009   Conference Call
2008 Shareholders' Meeting   May 14th, 2009   Meeting (BIC headquarters)
2nd Quarter 2009 Results   August 5th, 2009   Conference Call
3rd Quarter 2009 Results   October 21st, 2009   Conference Call

About BIC

BIC is a world leader in stationery, lighters and shavers. For more than 50 years, BIC has honored the tradition of providing high-quality, affordable products to consumers everywhere. Through this unwavering dedication, BIC has become one of the most recognized brands in the world. BIC products are sold in more than 160 countries around the world. In 2007, BIC recorded net sales of 1,456.1 million euros. The Company is listed on ?Euronext Paris?, the SBF120 and CAC Mid 100 indexes. BIC is also part of the FTSE4Good Europe Index.

For more information, please consult the corporate web site: www.bicworld.com

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