COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN. Financial Information for the Nine Months Ended September 30, 2010

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1 PRESS RELEASE Clermnt-Ferrand Octber 26, 2010 COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN Financial Infrmatin fr the Nine Mnths Ended September 30, Nine-Mnth Net Sales Up 19.4% t 13 Billin Cntinued grwth acrss all tire markets, at a faster pace than expected at the start f the year. Unit sales up 13.8% fr the perid, in line with the full-year target, sustained by rbust perfrmances acrss all perating segments. 0.5% imprvement in the price mix, reflecting the psitive impact f price rises implemented since the start f the year, which mre than ffset the effect f the negative OE/RT mix. NET SALES ( MILLIONS) PASSENGER CAR AND LIGHT TRUCK TIRES AND RELATED DISTRIBUTION TRUCK TIRES AND RELATED DISTRIBUTION 3rd Quarter Nine Mnths % % Change Change 2,515 2, % 7,136 6, % 1,530 1, % 4,096 3, % SPECIALTY BUSINESSES % 1,765 1, % GROUP TOTAL 4,648 3, % 12,997 10, % 1 Earthmver, Agricultural, Tw-Wheel and Aircraft tires; Maps and Guides; ViaMichelin and Michelin Lifestyle. Based n this perfrmance, Michelin cnfidently reaffirms its bjectives fr 2010: Arund 12% grwth in unit sales. Onging respnsive pricing t ffset the expected rise in raw materials csts (which is likely t drive up expenses fr the year by 600 millin t 650 millin). Clse t 9% perating margin befre nn-recurring items. Psitive free cash flw fr the year. 1/7

2 Market Review PASSENGER CAR AND LIGHT TRUCK TIRES Nine Mnths 2010 % Change YY EUROPE* NORTH ASIA SOUTH AFRICA/ MIDDLE EAST TOTAL Original Equipment + 18% + 54% + 36% + 24% + 17% + 32% Replacement + 9% + 5% + 12% + 20% + 4% + 9% *Including Russia and Turkey ORIGINAL EQUIPMENT Eurpean OE markets cntinued t recver during the first nine mnths, bsted by higher sales by the regin s carmakers and increasingly buyant demand in Russia. Demand in Nrth America rebunded sharply ff f very lw prir-year cmparatives. The Chinese market cntinued t expand rapidly, supprted by gvernmentspnsred carbuying incentives. REPLACEMENT In Eurpe, market grwth was led by strng demand fr winter tires (up 25%) that was sustained by dealer actin t rebuild inventries after last year s harsh winter. In all, this seasnal effect lifted the Replacement market t a level slightly abve that bserved in the first nine mnths f Grwth in the Nrth American market was mre restrained, in line with the seasnal trend. The US and Mexican markets cntinued t grw, expanding by 7% and 11% respectively, but the market in Canada was dwn 14% due t the high basis f cmparisn created by last year s new regulatins prmting winter tire use. In Suth America, vibrant demand fuelled grwth f 28% in Brazil and 15% in Argentina. In Asia, demand in China cntinued t trend upwards, rising by 19% in the first nine mnths. TRUCK TIRES Nine Mnths 2010 % Change YY EUROPE** NORTH ASIA SOUTH AFRICA/ MIDDLE EAST TOTAL Original Equipment* + 45% + 26% + 38% + 57% + 8% + 38% Replacement* + 29% + 19% + 13 % + 37% + 2% + 18% *Radial market nly **Including Russia and Turkey 2/7

3 ORIGINAL EQUIPMENT All markets rebunded strngly ff f lw prir-year cmparatives, led by mature markets. In Eurpe, rders fr new trucks cntinued t rise, althugh they were still at less than half the 2007 level. Bradline trailer manufacturers experienced strnger demand than specialist manufacturers. After rebunding in the spring, the tire market went frm strength t strength, expanding by mre than 80% in the third quarter albeit frm a very lw basis f cmparisn. In Nrth America, demand remained significantly belw 2007 levels. In Suth America, the market cntinued t grw rapidly, particularly in Brazil where gvernment grants t help finance truck purchases have been maintained. In China, demand in the OE market slwed by 4% in the third quarter, after expanding 63% in the first half. REPLACEMENT In Eurpe, the freight market picked up in Germany and Central Eurpe. Overall it stabilized at a level that was still belw that f the pre-crisis years. Grwth in tire demand was led by the ending f dealer destcking in Eurpe and the recvery in Russia, where the market expanded by 71% in the first nine mnths. The Nrth American market was dwn by just 4% cmpared with the first nine mnths f 2007 thanks t the upturn in rad freight vlumes in the United States. In Suth America, the market cntinued t recver, led by Brazil where increased truck use and higher freight vlumes helped t sustain the market, alng with dealer actin t rebuild inventries. In Asia, the radial market expanded by 13%, lifted by advances f 46% in India and 10% in China. SPECIALTY TIRES EARTHMOVER TIRES: Glbal riginal equipment demand rse strngly, cming clse t pre-crisis levels in the third quarter. In the Infrastructure market, demand was up by arund 20% verall cmpared with the year-earlier perid which represented a lw basis f cmparisn, particularly in Eurpe and Nrth America. The Mining segment was alne in enjying sustained demand during the crisis and the favrable trend cntinued in the first nine mnths f 2010, with rbust demand fr re in new markets acting as the main grwth driver. AGRICULTURAL TIRES: Demand in the OE market expanded cnsiderably in the third quarter, driven by significant investment capacity amng grain prducers. In the first nine mnths, the market was up sharply in Nrth America but remained dwn year-n-year in Eurpe. The Replacement market declined in Nrth American but held firm in Eurpe. TWO-WHEEL TIRES: The OE market declined in the first nine mnths but the Replacement market expanded in all gegraphies except Japan. AIRCRAFT TIRES: All markets recvered acrss all gegraphies, helped by imprved aircraft lad factrs. The shift twards radial tires cntinued during the perid. 3/7

4 Michelin Net Sales OVERVIEW ( MILLIONS) 3rd Quarter 2010 Nine Mnths 2010 NET SALES 4,648 12,997 YEAR-ON-YEAR CHANGE YEAR-ON-YEAR CHANGE TOTAL CHANGE % + 2, % OF WHICH VOLUMES % + 1, % PRICE-MIX % % CURRENCY EFFECT % % Net sales ttaled 12,997 millin in the first nine mnths f 2010, up 19.4% ver the year-earlier perid due t the cmbined impact f the fllwing factrs: The 13.8% psitive impact f higher vlumes: unit sales were bsted by cnsiderably strnger markets, while prir-year cmparatives remained lw in the third quarter. The MICHELIN brand prfited fully frm its technlgical advance in this imprving envirnment. The 0.5% psitive price-mix effect: net sales were lifted by price increases implemented since the start f the year, including the third-quarter applicatin in the earthmver segment f price indexatin clauses based n raw materials csts. This impact was partly ffset by the negative OE/RT mix caused by the faster grwth in OE sales, even as the size mix cntinued t mve up the value chain. The 4.3% psitive currency effect resulted mainly frm favrable changes in exchange rates fr the US dllar, Brazilian real, Australian dllar, Canadian dllar and Mexican pes against the eur. NET SALES BY REPORTING SEGMENT PASSENGER CAR AND LIGHT TRUCK TIRES AND RELATED DISTRIBUTION Net sales climbed 18.1% t 7,136 millin in the first nine mnths f Unit sales were sharply higher in bth OE and RT markets acrss all gegraphies. The favrable effect f price increases was partly absrbed by the negative OE/RT mix. 4/7

5 TRUCK TIRES AND RELATED DISTRIBUTION Net sales fr the first nine mnths amunted t 4,096 millin, up 25.0% frm the year-earlier perid. Unit sales rebunded ff f the lw 2009 cmparatives, particularly in the OE segment. All truck tire plants delivered healthy manufacturing perfrmances. The price effect was increasingly psitive, reflecting the impact f price rises in the main gegraphies. SPECIALTY BUSINESSES Net sales by the Specialty Businesses rse by 12.4% t 1,765 millin in the first nine mnths f Earthmver tires: Net sales increased ver the perid, with the third-quarter figure lifted by cntractual adjustments t OE and Mining prices that are indexed t raw materials csts. Michelin maintained its psitins in the Mining segment, while in the Infrastructure segment, it retained its histrical psitins in Eurpe and wn additinal market share in Nrth America. Agricultural tires: The slight increase in sales was due t cntractual adjustments t OE prices that are indexed t raw materials csts. It als reflected the Grup s market psitins. Tw-wheel tires: Sales rse ver the perid thanks t market share gains in Eurpe and Nrth America and the Grup s very cmpetitive ffer in the premium segment. Aircraft tires: The Grup cntinued t benefit frm the gradual shift t radials in the Cmmercial Aviatin segment and Michelin s deeper presence amng Eurpean airlines with the signature f a cntract with Air France/KLM. 5/7

6 Third-Quarter 2010 Highlights 1.2 billin rights issue successfully cmpleted MICHELIN Alpin 4 awarded the highest rating f 3 stars by Allgemeiner Deutscher Autmbil Club (ADAC), utperfrming all the ther tires tested Michelin and Rdi in talks t frm a distributin alliance in Spain Michelin celebrates ne millin X One wide single truck tires in Nrth America MICHELIN aircraft tires make further inrads with aircraft manufacturers and airlines A full descriptin f third-quarter 2010 highlights may be fund n the Michelin website: 6/7

7 CONFERENCE CALL The quarterly infrmatin fr the perid ended September 30, 2010 will be reviewed during a cnference call in English later tday (Thursday, Octber 26, 2010) at 6:30 pm CEST (4:30 pm UT). If yu wish t participate, please dial ne f the fllwing numbers frm 6:20 pm CEST: In France In the UK In the United States Frm anywhere else Please refer t the website fr practical infrmatin cncerning the cnference call. INVESTOR CALENDAR 2010 net sales and earnings: Friday, February 11, 2011 befre start f trading Quarterly infrmatin fr the three mnths ending March 31, 2011: Thursday, April 21, 2011 after clse f trading Investr Relatins Valérie Maglire +33 (0) (0) (cell) valerie.maglire@fr.michelin.cm Media Relatins Fabienne de Brébissn +33 (0) (0) (cell) fabienne.de-brebissn@fr.michelin.cm Alban de Saint-Martin +33 (0) (0) (cell) alban.de-saint-martin@fr.michelin.cm Individual Sharehlders Jacques Engasser +33 (0) jacques.engasser@fr.michelin.cm 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 dcuments filed in France with Autrité des Marchés Financiers, which are als available frm the website. This press release may cntain a number f frward-lking 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 inferred by these statements. 7/7