Paris, 1 June 2007

This morning, LCL submitted a draft 2007-2010 competitiveness plan to its central works council (Comité Central d'Entreprise) designed to revitalise the bank's development. In keeping with LCL's business plan, the proposal aims to improve the effectiveness of commercial networks, reduce administrative costs, streamline IT investment and optimise LCL's property portfolio in the Ile-de-France region.

An increasingly competitive environment as well as banking sector consolidation in Europe have made it indispensable to pursue efforts to boost competitiveness. Although the Crescendo plan has helped enhance results and sales momentum, LCL will nonetheless need to continue progressing to keep pace with new customer expectations, in terms of both quality and prices, and to meet market operating standards in terms of productivity.