COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN FIRST HALF 2008 RESULTS MICHELIN POSTS 8.6% OPERATING MARGIN +2.0% SATISFACTORY SALES VOLUME INCREASE

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1 COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN PRESS RELEASE Clermnt-Ferrand, July 30, 2008 FIRST HALF 2008 RESULTS MICHELIN POSTS 8.6% OPERATING MARGIN +2.0% SATISFACTORY SALES VOLUME INCREASE NET INCOME STABLE AT EUR 430 MILLION The Grup is recrding the initial psitive effects f the multiple price increases annunced in the first half; In a trubled and difficult glbal envirnment, and prvided secnd half tire markets d nt wrsen beynd current estimated levels, Michelin expects t deliver full-year perating margin befre nn-recurring items appraching the first half level; Free cash flw, erded in the first half by the increase in inventry value, shuld be nearly balanced at the end f 2008 thrugh the actin taken in the secnd half t reduce wrking capital requirements; The Grup expects t reach its "Hrizn 2010" strategic bjectives thanks t the imprvements achieved thrugh its cmpetitiveness plan. (IFRS, in EUR millin) June 30, / 2007 Change Net Sales 8, % At cnstant scpe and exchange rates +4.2% Sales vlumes +2.0% Operating incme befre nn-recurring incme and expenses Operating margin befre nn-recurring incme and expenses % 8.6% -1.6 pt Passenger car and Light truck Tires and Related Distributin 7.6% -2.3 pts Truck Tires and Related Distributin 5.2% -2.1 pts Specialty Businesses 20.0% +1.3 pt Operating incme % Operating margin 8.6% -0.9 pt Net incme % Net incme attributable t Sharehlders % Net financial debt 4, % 1 Gearing 80% up 10 pts 1 Free Cash Flw Versus 31 December Free cash flw cash flw frm perating activities Cash flw frm investing activities N

2 In additin t the negative impact f exchange rates, first half 2008 results were characterized by tw majr develpments: - the significant drp in passenger car & light truck and truck replacement markets in Eurpe and Nrth America, a drp that accelerated in Eurpe in May and June; - the raw material cst increases that were sharper than anyne culd have anticipated. This led t a time-lag between Grup cst f sales increases and the mitigating impact f price increases. Michelin sales grwth, the benefits f the Grup's cmpetitiveness plan and strng Specialty business perfrmance, helped maintain perating prfitability at satisfactry levels under the circumstances. The Grup's financial structure remains rbust, net incme is stable as there were n nn-recurring charges during the perid. Cmmenting n the first half results,managing Partner Michel Rllier stated: "Michelin cntinues t grw and gain market share despite a particularly unsupprtive trading envirnment. All f these achievements have t be attributed t the wrk and skills f Michelin s teams wh clearly rse t the challenge f a stiffening internatinal cmpetitin and an inflatinary envirnment. Michelin, nw better armed t adjust t market develpments, in particular thrugh a prduct ffering tailred t tday's envirnmental and fuel-efficiency requirements, is hlding the curse f its strategic plan: imprving cmpetitiveness, leveraging prduct differentiatin and increasing fthld in the high-grwth markets. All this makes me cnfident in ur future prspects". Outlk fr 2008 Tire markets will be mainly driven by emerging cuntry dynamism and high grwth in the Specialty prduct segment; Extra raw material csts estimated at 750 millin eurs fr the full year, at cnstant exchange rates; Michelin is deplying a wrldwide price increase strategy and expects t deliver full-year perating margin befre nn-recurring items appraching the first half 2008 level, prvided tire markets d nt wrsen in the secnd half beynd current estimated levels. In additin, free cash flw, erded in the first half by the increase in inventry value, shuld be nearly balanced at the end f 2008 thrugh the actin taken in the secnd half t reduce wrking capital requirements. Estimated full-year change in 2008 tire markets versus 2007 Passenger Car & Light Truck Eurpe Nrth America Suth America Asia Africa / Middle East Ttal +1% -11% +15% +5% +14% +1% Original Equipment Passenger Car & Light Truck Replacement -3% -2% +2% +5% +3% -1% Truck * Original Equipment +9% -9% +18% +30% +3% +11% Truck * Replacement -6% -5% +15% +10% +5% +3% * Radial nly O

3 Detailed Review f First Half Operatins and Results Tire market changes in the first half 2008 versus the first half 2007 Passenger Car & Light Truck Original Equipment Eurpe Nrth America Suth America Asia Africa / Middle East Ttal +2.2% -12.2% +18.8% +9.7% +13.9% +3.0% Passenger Car & Light Truck Replacement -3.0% -1.7% +1.6% +5.3% +3.2% -0.3% Truck * Original Equipment +14.0% -18.4% +21.0% +33.3% +3.0% +9.8% Truck * Replacement -6.0% -4.7% % +11.8% +5.1% +4.4% * Radial nly Eurpe: Passenger Car and Light Truck Nrth America: Autmbile prductin is grwing in Eurpe, driven mainly by Eastern Eurpe, where apprximately 20% grwth was recrded. Original equipment tire demand fully benefited frm this trend; Replacement: demand trends varied sharply between Western Eurpe, dwn a further 5.4%, and Eastern Eurpe, up almst 5%. Overall, tire markets were dwn 3% (with mre than 8% decline in the mnth f June 2008 alne), with entry-level segments accunting fr the bulk f the decline, while demand in the SUV and high-perfrmance tire segments kept trending up. Truck and Bus Original equipment markets, cntinuing n the dynamic grwth trends recrded in secnd half 2007, were up sharply, thugh slwing dwn smewhat in June. Demand was mainly driven by Eastern Eurpe and OEM exprt perfrmance; Replacement markets n the ther hand, declined acrss Eurpe, dwn 9% in the Western cuntries and as much as 12% in Central Eurpe. The nly exceptin was Russia, which psted an estimated 30% grwth. Nte that demand fell nearly 20% in June 2008 versus June Many rad transprt cmpanies are affected by twering fuel prices as they are nt always in a psitin t match these increases in their wn prices. Passenger Car and Light Truck Original equipment tire demand reflected the weakness f vehicle prductin in Nrth America, dwn 10% n a 12-mnth rlling average after adjustment fr seasnal variances: the pickup and light truck segments accunted fr the bulk f the decline while passenger car sales levels were relatively stable year-n-year; The trends in Nrth America's replacement demand were largely due t the 3% decline reprted in the U.S. whereas Canada experienced a very strng winter tire segment grwth. This was due t a cmbinatin f pr winter weather cnditins in the beginning f the year and the intrductin f new regulatins, t becme effective starting 2009, in Quebec. The segment mix was further significantly enriched, with high perfrmance segments psting duble-digit grwth and entry-level segments dwn apprximately 10%. P

4 Asia: Truck and Bus Demand in the riginal equipment market failed t rebund, due t uncertainty amng transprt peratrs wh are waiting t see hw the ecnmic envirnment will evlve; In the replacement market, further decline can be attributed t the high diesel fuel price inflatin, with prices almst dubling in just tw years and American husehld cnfidence hitting a ten-year lw; fleet peratrs tended t pstpne tire replacement as much as pssible: they preferred munting tires frm unused vehicles, retreading casings and extracting mre mileage ut f the treads. The rad freight business was, nevertheless, relatively brisk. Passenger Car and Light Truck Replacement markets in that part f the glbe were mainly driven by China (+19.2%), India (+8.2%) and Thailand (+5.2%). Grwth in the regin's mature cuntries tended t slw dwn: after grwing in the first quarter, demand slumped in Japan in the secnd quarter, reflecting an ecnmic slwdwn related t a decline in vlumes exprted t the United States. Truck and Bus The radial tire markets, driven by dynamic Chinese demand, again psted duble-digit grwth, in line with a buyant ecnmic envirnment. In Suth America, market grwth remained high and nly the Passenger car and light truck replacement market psted mere 1.6% grwth, mainly due t less supprtive markets in Brazil. Passenger car sales were extremely high in the first half. Truck tire markets further benefited frm dynamic agrifd business and investments. In Africa and the Middle East, demand trends were satisfactry, particularly in Passenger car and Light truck riginal equipment, reflecting imprving living standards in a number f cuntries. Q

5 Grup net sales were dwn 1.9% year-n-year (up 4.2% at cnstant exchange rates) % psitive vlume effect Except fr Eurpe, where sales vlumes were stable year-n-year, Passenger car and Light truck tire sales recrded satisfactry grwth wrldwide, particularly in Asia, which psted duble-digit grwth. Bsted by integratin f the Oliver Rubber retread peratins in Nrth America (acquired in Octber 2007), Truck tire sales vlumes were up substantially. Grwth was marked in all regins except fr Eurpe, where replacement demand was weak. In Asia, Michelin's cmmercial perfrmance was very strng. The Specialty tire sales vlume grwth was mre than satisfactry acrss Prduct Lines and regins % psitive price-mix effect at cnstant currency The price effect alne was a psitive 2.1%, up slightly versus the first quarter This reflected implementatin f the price increases Michelin annunced in the first quarter; the multiple upward price revisins annunced in the secnd quarter will begin t prduce an effect during the secnd half f the year. The mix effect alne had a neutral impact n Grup net sales as ppsite trends cancelled each ther ut: Brand and segment mixes were further enriched; On the ther hand, the OE vs. Replacement market mix (particularly in Eurpe) and the gegraphic mix (relative weakness f Eurpean markets and significant emerging market sales grwth) impacted Grup sales significantly. Sharp negative (- 5.9 %) impact f exchange rates. Depreciatin f the U.S. dllar (- 13.1%), f the pund sterling (- 13%), f the Mexican pes (- 10.4%) versus the eur, based n average rates. Michelin s perating margin befre nn-recurring items amunted t 8.6%, dwn 1.6 pint year-n-year. At 708 millin eurs, perating incme befre nn-recurring items was dwn 17.8%. The EUR 153 millin decline in perating incme befre nn-recurring items breaks dwn as fllws: + EUR 86 millin reflecting sales vlume increase; + EUR 180 millin accunted fr by the price increases implemented during the semester; - EUR 66 millin due t exchange rate fluctuatins, mainly resulting frm U.S. dllar depreciatin versus the eur; + EUR 16 millin resulting frm the psitive impact f the cst reductin measures already implemented. This helped fully ffset payrll inflatin and the additinal expenses incurred in cnnectin with the launch f different prjects designed t enhance Grup prductivity; - EUR 35 millin accunted fr by an increase in depreciatin; - EUR 334 millin resulting frm external cst inflatin, including EUR 239 millin fr raw materials alne and EUR 95 millin fr energy and transprtatin. Net Incme Stable at EUR 430 Millin The slight EUR 6 millin year-n-year decline in net incme resulted frm: - EUR 153 millin reductin in perating incme befre nn-recurring items; + EUR 63 millin decrease in nn-recurring expenses, reflecting the absence f restructuring charges fr the first half, whereas the first half 2007 had been impacted by the csts in cnnectin with industrial ptimizatin f the Japan-based Ota plant; + EUR 20 millin imprvement in financial result; R

6 - EUR 59 millin n crprate incme tax, mainly due t a lwer taxable incme. Free cash flw was a negative EUR 445 millin, dwn EUR 414 millin, reflecting in particular: - EUR 125 millin EBITDA 1 decrease, glbally in line with perating incme change befre nn-recurring items; wrking capital requirement increase related t inventry financing that has appreciated by EUR 453 millin during the first half 2008 (as ppsed t a EUR 205 millin increase in the first half 2007). This resulted partly frm the large impact n inventry value f raw material cst inflatin and als frm the negative impact n cmmercial perfrmance in June f weak Eurpean tire markets. It is wrth mentining further wrking capital requirement imprvement in cnnectin with trade receivables, as the latter were brught dwn t 18.1% f net sales versus 19.9% at the end f June At EUR 500 millin, capital expenditure was stable year-n-year. At 80%, gearing rati cnfirms the rbustness f the Grup's financial structure Nte that net gearing amunted t 86% n 30 June 2007 and t 70% n 31 December Net debt: + EUR 620 millin versus 31 December 2007, including, in particular: + EUR 445 millin: negative free cash flw; + EUR 240 millin: dividends paid ut in May 2008; - EUR 61 millin: psitive impact n debt f currency cnversin, in particular due t 6.6% U.S. dllar depreciatin versus the eur between 1 January and 30 June 2008; + EUR 16 millin: interest due n the OCEANE bnd issue f March 2007 cnvertible r swappable with new r existing shares. - EUR 42 millin: reductin in put ptin cmmitments t certain minrity sharehlders in Grup subsidiaries. 1 Earning Befre Interest, Tax, Depreciatin and Amrtizatin S

7 Segment infrmatin Net Sales Operating incme befre nnrecurring items Operating margin befre nn-recurring items 1 st half st half 2008 H H (EUR millin) % f ttal 2008 / 2007 (EUR millin) % f ttal Passenger car / Light truck Tires & Related Distributin Truck Tires & Related Distributin 4,357 53% -2.9% % 7.6% 9.9% 2,696 33% -1.8% % 5.2% 7.3% Specialty Businesses 1,186 14% +1.6% % 20.0% 18.7% Grup ttal 8, % -1.9% % 8.6% 10.2% Passenger car and Light truck and related distributin: perating margin befre nn-recurring items declined 2.3 pints versus the first half 2007 t 7.6%. It was affected by raw material price increases, the result f the integrated distributin netwrks and weak demand. Sales vlumes increased wrldwide except fr Eurpe, where demand was weak, particularly in May and June in the Replacement segment; The Grup further strengthened its psitins in Eurpe as well glbally; Price increases have started t have an impact in the secnd quarter and this shuld amplify in the secnd semester; The mix remained psitive, benefiting in particular frm the Grup's brand and segment enrichment. The segment's prfitability was hwever affected by: The sharp raw material cst inflatin, particularly marked in the secnd quarter 2008; weaker perfrmance frm the Eurpean integrated distributin netwrk, affected by sharply declining Western Eurpean markets, where it perates almst exclusively; and a strngly negative currency impact. T

8 Truck and related distributin: the change in exchange rates, raw material price increases and the unfavrable market mix accunted fr the bulk f the 2.1 pint drp in perating margin, which amunted t 5.2% in the first half. The Truck and Bus tire segment was bsted by buyant emerging markets and further market share gains in Nrth America's replacement segment fr the 4 th year running: sales vlumes psted satisfactry grwth; The impact f price increases accelerated sharply in the secnd quarter as cmpared t the first quarter, a trend that is expected t cntinue ver the cming mnths. Nevertheless: the currency effect adversely affected the segment's prfitability; the impact f the raw material cst hike was strng in the secnd quarter, whereas it had been neutral in the first quarter; in Eurpe, the Truck and Bus peratins suffered frm a particularly unfavurable Original Equipment / Replacement market mix. Specialty businesses: further prfitability imprvement, with a high 20.0% perating margin (up pint year-n-year) Mst f the segment's businesses benefited frm supprtive trading cnditins with demand generally utstripping supply. This was particularly true f the Earthmver businesses (surface mines, quarries) and Agricultural segments. Aircraft fuel price hikes, althugh slwing airline traffic dwn smewhat, actually bsted the cmmercial segment's switch t radial tire technlgy, thereby benefiting Michelin's Aircraft tire peratins. Against this backgrund, Michelin leveraged market enrichment t strengthen its psitins acrss the higher value-added segments: tire fitments fr very large earthmvers and agricultural lead tractrs and radial tires fr recreatinal tw-wheelers and cmmercial aircraft. * * * U

9 First-half 2008 results will be presented at a press cnference n Wednesday July 30, 2008 at 8:30 am at Pavilln Gabriel, avenue Gabriel, Paris 8 th. An analyst and investr presentatin will be made at Pavilln Gabriel, n the same day at 10:30am. Finally, a telephne cnference will be held in English n Wednesday July 30 at 4:00 pm Paris time (2:00pm GMT). If yu wish t attend, please dial ne f the fllwing numbers frm 3:50 pm: Frm France Frm the UK Frm the United States Frm anywhere else Please refer t the site "Finance" sectin fr practical infrmatin cncerning the telephne cnference. Fr mre detail n Michelin's first half results, g t the website call +33 (0) , send an enquiry t «investr-relatins@fr.michelin.cm» r write t Michelin's Investr Relatins Department. Fr mre infrmatin n Michelin s tire markets and n the Cmpany, please dwnlad Michelin s Factbk 2008 frm ur website: "Finance" sectin * * * The quarterly financial infrmatin at September 30, 2008 will be published n Mnday Octber 27, 2008 after clsing f Paris Eurnext. Cntacts Investr Relatins: Christphe Mazel: +33 (0) (0) christphe.mazel@fr.michelin.cm Jacques Philippe Hllaender: +33 (0) (0) Jacques-Philippe.hllaender@fr.michelin.cm Press Relatins Fabienne de Brébissn: + 33 (0) (0) fabienne.de-brebissn@fr.michelin.cm Individual Sharehlders Jacques Engasser: + 33 (0) jacques.engasser@fr.michelin.cm V

10 CONSOLIDATED INCOME STATEMENT Six mnths ended Six mnths ended (in EUR millin, except per share data) 30 June June 2007 Sales 8,239 8,402 Cst f sales (5,824) (5,787) Grss incme 2,415 2,615 Sales and marketing expenses (827) (853) Research and develpment expenses (257) (290) General and administrative expenses (581) (543) Other perating incme and expenses (42) (68) Operating incme befre nn-recurring incme and expenses Nn-recurring expenses - (63) Operating incme Cst f net debt (116) (144) Other financial incme and expenses Share f prfit/(lss) frm assciates 9 4 Incme befre taxes Incme tax (181) (240) Net incme Attributable t Sharehlders Attributable t nn-cntrlling interests - (1) Earnings per share (in eurs) Basic Diluted NM

11 CONSOLIDATED BALANCE SHEET (in EUR millin) 30 June December 2007 Gdwill Other intangible assets Prperty, plant and equipment (PP&E) 7,066 7,124 Nn-current financial assets and ther assets Investments in assciates and jint ventures Deferred tax assets Nn-current assets 9,065 9,165 Inventries 3,723 3,353 Trade receivables 2,975 2,993 Current financial assets Other current assets Cash and cash equivalents Current assets 7,622 7,284 TOTAL ASSETS 16,687 16,449 Share capital Share premiums 1,940 1,885 Reserves 3,207 3,109 Nn-cntrlling interests 7 8 Ttal equity 5,444 5,290 Nn-current financial liabilities 2,811 2,925 Emplyee benefits 2,444 2,567 Prvisins and ther nn-current liabilities Deferred tax liabilities Nn-current liabilities 6,108 6,448 Current financial liabilities 1,825 1,145 Trade payables 1,416 1,642 Other current liabilities 1,894 1,924 Current liabilities 5,135 4,711 TOTAL LIABILITIES AND EQUITY 16,687 16,449 NN

12 CONSOLIDATED CASH FLOW STATEMENT (in EUR millin) Six mnths ended 30 June 2008 Six mnths ended 30 June 2007 Net incme EBITDA adjustments Cst f net debt Other financial incme and expenses (10) (18) Incme tax Amrtizatin, depreciatin and impairment f intangible assets and PP&E Nn-recurring incme and expenses - 63 Share f lss/(prfit) frm assciates (9) (4) EBITDA befre nn-recurring incme and expenses ,297 Nn-cash ther incme and expenses 8 (13) Change in prvisins, including emplyee benefits (139) (113) Net finance csts paid (105) (145) Incme tax paid (154) (128) Change in value f wrking capital, net f impairments (608) (241) Cash flws frm perating activities Purchases f intangible assets and PP&E (584) (729) Prceeds frm sale f intangible assets and PP&E Acquisitins f cnslidated sharehldings, net f cash acquired - (28) Prceeds frm sale f cnslidated sharehldings, net f cash dispsed - (1) Purchases f available-fr-sale investments (57) (1) Prceeds frm sale f available-fr-sale net investments 2 18 Change in value f ther financial assets 5 5 Cash flws frm investing activities (619) (688) Prceeds frm issuance f shares Dividends paid t Sharehlders (230) (208) Prceeds f the issuance f the cnvertible bnds Change in value f financial liabilities 636 (172) Other finance cash flws (60) (8) Cash flws frm financing activities Effect f the change f currency rates (11) 2 Increase / (decrease) f cash and cash equivalents (73) 287 Cash and cash equivalents as at 1 January Cash and cash equivalents as at 30 June NO

13 Disclaimer «This press release is nt an ffer t purchase r a slicitatin t recmmend the purchase f Michelin shares. T btain mre detailed infrmatin n Michelin, please cnsult the dcumentatin published in France by Autrité des Marchés Financiers available frm the website. This press release culd cntain a number f prvisinal statements. Althugh the Cmpany believes that these statements are based n reasnable assumptins as at the time f publishing this dcument, they are by nature subject t risks and cntingencies liable t translate int a difference between actual data and the frecasts made r induced by these statements». NP