Financial results for the six months ended April 30, 2004 demonstrate the improvement in Club Mediterranee`s margins in a persistently travel-unfriendly environment, with a slight increase in business.

Revenues amounted to €784 million for the period, compared with €785 million in first-half 2003. Like-for-like growth (at comparable scope of consolidation and exchange rates) was 2.4%.

Winter operating income was up sharply at €32 million, versus €12 million in winter 2003 and an operating loss of €4 million in winter 2002. Growth was driven by a clear improvement in the price mix, reflecting the shift upmarket in the village portfolio and the enhancement in Club Med services. Club Mediterranee`s new business model is therefore proving effective.

In millions of euros	Winter 02	Winter 03	Winter 04
Revenues	816	785	784
Operating income	(4)	12	32
Financial expense	(17)	(25)	(22)
Exceptional expense	-	(21)	(7)
Tax	3	10	(2)
Amortization of goodwill	(7)	(4)	(4)
Minority interests	-	(1)	(1)
Net loss	(25)	(29)	(4)
Free cash flow	6	(6)	(33)
	At april 30, 2004	At april 30, 2004	At april 30, 2004
Net debt	(392)	(436)	(424)

While all of the regions reported operating income for the period and all showed an improvement from first-half 2003, their

performance varied, with:

- Very good results from the Americas, which confirm the region`s successful revamping of the village offering, with in particular the Total All Inclusive package and a repositioning with US travel agents. Growth was held back, however, by a decline in Caribbean vacations by Europeans.

- An upturn in Asia, which in April started to benefit from the prior year`s low comparatives. These were caused by the SARS epidemic, which had a severe impact on bookings during the same period in 2003.

- Resilience in France in a lackluster market, led by the broader distribution system and the success of the booking bonus. In the rest of Europe, Club Med`s strategic country markets (Belgium, Italy and Switzerland) demonstrated stronger resistance than the other countries.

- Sustained growth at Jet tours, with a further improvement in operating income.

In millions of euros	Winter 02	Winter 03	Winter 04
Europe	13	14	19
Asia	2	0	3
Americas	(13)	2	10
Total Villages	2	16	32
Tour operating	(3)	0	1
Other businesses	(3)	(4)	(1)
Total Group	(4)	12	32

A unique positioning for Club Med: friendly upmarket

Based on customer expectations (validated by surveys conducted since fall 2003) and its new business model, Club Mediterranee is committed to market leadership in friendly upmarket vacations.

As part of this process, the portfolio of villages and transportation services is being moved faster upmarket with:

- The opening of new premium villages: Marrakech La Palmeraie (4 Tridents) in Morocco, El Gouna (3 Tridents) in Egypt and Coral Beach (3 Tridents) in Israel.

- The extension and upgrading of Cherating Beach (4 Tridents) in Malaysia, Chamonix-Mont Blanc (4 Tridents) in France and Sant Ambroggio (3 Tridents) in Italy; and the redesign of Val d`Isere (4 Tridents) in France and Turquoise (3 Tridents) in the Bahamas.

- The start-up of new projects: Peisey-Nancroix (4 Tridents) in the center of the new Paradiski resort in France; and the extension and top-to-bottom renovation of Les Boucaniers on Martinique (upgrade from 2 to 3 Tridents).

- The agreement signed with French charter airline Star Airlines, which will guarantee air transportation services with enhanced quality standards.

At the same time, the purchasing process is being actively revamped. Part of the gains will be used to finance the continued move upmarket in coming years.

Outlook

As of May 29, year-to-date summer bookings were up 2.4% on the prior-year period. In Europe, bookings were down 2.1%,

confirming the lack of a market recovery and the persistence of late booking. The Americas and Asia regions are experiencing

a sharp upturn, however, with bookings gaining respectively 29.1% and 34.7% on the prior-year period

Change in like-for-like revenues	Year-to-date May 29, 2004
Europe	- 2.1%
Americas	+ 29.1%
Asia	+ 34.7%
Total Club Med	+ 2.4%
Jet tours	+ 5.2%

In discussing the interim results, Henri Giscard d`Estaing, Chairman of the Club Mediterranee Executive Board, noted that:

A Club Med that is as friendly as ever but more innovative and refined-that`s what our customers expect from us and that`s what we`re committed to helping them experience every day. This is symbolized by the Marrakech village that we are inaugurating today. By steadfastly setting our course for the Incomparable, we expect Club Med to report around €100 million in operating income in 2006.