FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED JUNE 30, 2011

First-half 2011 in line with the Michelin Group road map
Net sales up 21% to €10.1 billion
Operating income of €971 million for a 9.6% operating margin
Net income up 32%
2011 objectives: Sales volumes revised upwards and profitability confirmed

• Sales volumes up 12.6%, reflecting sustained market growth in the first half and the Group’s solid sales performance
• A pricing policy that totally offset the increase in raw material prices in the first half
• Operating income up 18% to €971 million
• Investment plan moving forward as scheduled
• Free cash flow reflecting the impact of higher raw material prices and seasonal trends

Outlook for full-year 2011

The second-half business environment should see ongoing market growth at a pace closer to long-term trends.

Against this backdrop, the Group is aiming for growth in sales volumes of approximately 8% for the full year.

Michelin is diligently pursuing its pricing policy, which is intended to pass on the increase in raw material prices. Together, the price increases announced or implemented to date are expected to offset estimated additional full-year costs of around €1,800 million.

Given the impact of raw materials costs on working capital requirement (amounting to approximately €400-500 million for the full year) and the faster deployment of capital expenditure programs, free cash flow is expected to be temporarily negative in 2011.

Michelin reaffirms its objective of reporting higher operating income in 2011.

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