BIC Group - 3RD Quarter and 9 Months 2009 Results

Regulatory News:

9 MONTHS 2009 NET SALES UP 4.9% AT CONSTANT CURRENCIES AT 1,128.1 MILLION EUROS

NORMALIZED¹ 9 MONTHS 2009 IFO MARGIN: 16.0%

9 MONTHS 2009 GROUP NET INCOME UP 5.6% AT 119.3 MILLION EUROS

30 SEPTEMBER 2009 NET CASH POSITION: 192.8 MILLION EUROS

BIC (Paris:BB):

9 months 2009 Highlights

Total consumer net sales:

• 938.7 million euros (+1.8% at constant currencies)

Total Advertising and Promotional Products net sales:

• 189.4 million euros (+25% at constant currencies and -22.7% on a comparative basis)

• Stationery total net sales: 485 million euros (-7.6% at constant currencies)

Consumer business down 3.6% at constant currencies

• Late back-to-school consumer shopping in Europe and North America. BIC market shares were maintained
• Sustained growth in Latin America

Promotional Imprinted Writing Instrument Business down 22.4% at constant currencies

• Sales decline in all regions equal to market trends

• Lighters total net sales: 290 million euros (+4.6% at constant currencies)

• Market share gains in North America
• Ongoing strong performance in Latin America

• Shavers total net sales: 201 million euros (+2.5% at constant currencies)

• Resilience in Europe and North America
• Continued growth of our triple-blade one-piece business in Latin America

• Normalized Income From Operations: 181.0 million euros (+7.5% as reported)
• Normalized IFO margin: 16.0% compared to 15.8% in 9 months 2008

• Decrease of brand support, positive foreign exchange impact and control of Operating Expenses offset lower production volumes which negatively impacted the Gross Profit

• Reported Income From Operations (IFO): 171.0 million euros (+4.8% as reported)

• -20.9 million euros expenses related to the cost reduction plan launched in April 2009
• +10.3 million euros of negative goodwill related to the acquisition of Antalis Promotional Products
• +0.6 million euros related to real estate gain in Germany

• EPS: 2.48 euros (+6.4% as reported)
• Net cash position as of 30 September 2009: 192.8 million euros

• Continued improvement of working capital
• Lower CAPEX investments compared to 9 months 2008

2009 Outlook

For the balance of the year, we will continue to leverage our strengths in order to maintain or increase our market shares in all categories. We remain focused on cost control and working capital improvement in order to protect cash generation. We expect the full year 2009 normalized Income From Operations margin to be in line with the full year 2008 level.

Mario Guevara, Chief Executive Officer, said: “In decreasing markets, our consumer business shows good resilience and we have maintained or grown our market share in most categories and geographies while Advertising and Promotional Products sales continued to decline, in line with industry trends. During the 3^rd Quarter we maintained the momentum initiated in the 2^nd Quarter. This good performance confirms our capacity to reduce costs without compromising long-term value creation.”

Key figures

Group

BIC Group 9 months 2009 net sales were 1,128.1 million euros, compared to 1,064.4 million euros in 9 months 2008, up 6.0% as reported, up 4.9% at constant currencies and down 1.6% on a comparative basis. For the 3^rd Quarter, net sales were 415.0 million euros, up 14.0% as reported, +14.3% at constant currencies and down 0.2% on a comparative basis.

Total consumer business operations increased 1.8% at constant currencies during the 9 months 2009 while the Advertising and Promotional Business decreased 22.7% on a comparative basis and increased 25.0% at constant currencies (including Antalis Promotional Products and Norwood Promotional Products).

9 months 2009 foreign currency fluctuations had a positive impact of 1.1%, of which +4.0% was due to the increase of the U.S. dollar offset by the decrease of Latin America currencies, the British pound and some Eastern Europe currencies.

The 9 months 2009 gross profit margin decreased 1.4 points to 46.7% of sales versus 48.1% in 9 months 2008, negatively impacted by higher production costs due to lower sales volume, continued reduction of inventories and the impact of Antalis and Norwood Promotional Products consolidation. During Q3, our consumer business benefited from positive raw material impact.

9 months 2009 Income From Operations increased 4.8% as reported to 171.0 million euros. The 9 months 2009 reported IFO margin was 15.2% compared to 15.3% in 9 months 2008.

9 months 2009 IFO includes exceptional items:

• - 20.9 million euros expenses related to the cost reduction plan launched in April 2009;
• + 10.3 million euros of negative goodwill related to the acquisition of Antalis Promotional Products booked in Q2 09;
• + 0.6 million euros related to real estate gain in Germany booked in Q3 09.

Excluding these impacts, 9 months 2009 normalized IFO would have been 181.0 million euros compared to 168.4 million euros in 9 months 2008. 9 months 2009 normalized IFO margin is 16.0% compared to 15.8% for the same period last year. The reduction of brand support and the control of Operating Expenses offset the decline of the Gross Profit margin.

Income before tax increased 2.7% as reported to 174.8 million euros. Finance revenues decreased 3.3 million euros compared to 9 months 2008 due to the lower net interest income along with less favourable FX impact compared to the same period last year. Tax rate was 33.0% compared to 33.6% in 9 months 2008.

9 months 2009 Group net income was 119.3 million euros, a 5.6% increase as reported. 9 months 2009 Group net income includes 2.2 million euros from income from associates (Cello Pens). Earnings per share (EPS) were 2.48 euros in 9 months 2009, compared to 2.33 euros in 9 months 2008, up 6.4%. Normalized EPS grew 8.7% at 2.62 euros compared to 2.41 euros in 9 months 2008.

At the end of September 2009, net cash position was 192.8 million euros, compared to 121.3 million euros as of September 30, 2008 and 210.6 million euros as of December 31, 2008.

9 months 2009 cash generation continued to benefit from improvement in working capital and lower CAPEX investments (35 millions euros in 9 months 2009 vs. 57 million euros in 9 months 2008).

9 months 2009 net cash position was impacted by the investments related to the partnership with Cello Pens for 63.2 million euros³, Antalis Promotional Products for 32.4 million euros, Norwood Promotional Products for 86.0 million euros and dividend payment for 65 million euros.

Stationery

9 months 2009 Stationery net sales decreased 6.9% as reported and -7.6% at constant currencies. Q3 09 net sales were down 4.4% as reported and -3.7% at constant currencies

Consumer business:

9 months 2009 Consumer business net sales declined 3.6% at constant currencies (+0.1% in Q3 09). In Europe and North America, back-to-school shopping was late compared to last year. Overall consumer purchases decreased low to mid single digits. Nevertheless, in this environment, BIC maintained its market shares. The Office Products channel performance continued to be soft. Total Latin America performed well during 9 months 2009, driven by sustained growth in South America and a good back-to-school season in Mexico.

BIC Graphic – Advertising and Promotional Products Writing Instrument business:

Our promotional imprinted products business (BIC Graphic) continued to be negatively impacted by the reduction of companies’ advertising and promotional spending and the decline of the writing instrument promotional business in the U.S, despite a slight improvement in Q3 09 compared to Q2 09. 9 months 2009 net sales decreased 22.4% at constant currencies, in line with industry trends.

The Stationery normalized IFO margin was 12.6% in 9 months 2009, compared to 15.2% in 9 months 2008. The Consumer business Gross Profit was affected by lower sales volumes and continuous reduction of inventories. The decrease in BIC Graphic (Advertising and Promotional Products) profitability is due to lower net sales.

Lighters

9 months 2009 Lighter net sales increased 6.6% as reported and +4.6% at constant currencies. Q3 09 net sales were up 2.3% as reported and up 2.4% at constant currencies.

In Europe, 9 months 2009 net sales grew slightly driven by the volume gains in Q1. In North America, sales increased mid-single digit as we improved our market share positions. In Latin America, the strong net sales performance resulted in market share gains.

The Lighter normalized 9 months 2009 IFO margin increased by 4.9 points to 34.8% benefiting from positive raw material and volume absorption impacts during Q3, the decrease of brand support (Child-Resistant regulation advertising campaign in Q1 08) and higher absorption of OPEX.

Shavers

9 months 2009 Shaver net sales increased 2.8% as reported and +2.5% at constant currencies. Q3 2009 net sales were up 0.4% as reported and +2.1% at constant currencies.

The overall wet shave market continued to decrease during Q3. Since the beginning of 2009, sales of disposables have been flat, while systems segment experienced small decreases.

For the first 9 months, BIC^® shaver net sales were flat in Europe and decreased low single digit in North America. In a depressed environment, BIC^® was the only brand to gain share in the total U.S. wet shave market.

Latin America remained our strongest performing region with continued growth of our triple-blade one-piece business.

The Shaver normalized IFO margin was 11.5% in 9 months 2009 compared to 4.3% in 9 months 2008. This improvement is due to the sales increase, favourable foreign exchange impact and lower advertising expenses when compared to the same period last year.

Other Products

9 months 2009 other products net sales increased 100.3% as reported, +97.9% at constant currencies and +7.3% on a comparative basis. Q3 09 net sales were up 219.7% as reported, +213.9% at constant currencies and +7.5% on a comparative basis. Antalis Promotional Products and Norwood Promotional Products are consolidated in 2009 starting respectively in Q2 and Q3.

Consumer business:

“Other Products” consumer business net sales increased 14.6% at constant currencies at the end of September, driven by the distribution of phone cards in France.

Promotional Products:

“Other Products” Promotional Products business continued to be affected by the slowdown of the industry in Europe and in the U.S. and decreased 19.4% on a comparative basis.

BIC Group net sales change by geography

Impact of change in perimeter and currencies fluctuations

IFO and Normalized IFO by category

Condensed Profit and Loss Account

Condensed Balance Sheet

Glossary

• At constant currencies: Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates.
• Comparative basis: at constant currencies and constant perimeter.
• Normalized IFO: normalized means excluding restructuring, real estate gains, Antalis Promotional Products negative goodwill.

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This document contains forward-looking statements. Although BIC believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties.

A description of the risks borne by BIC appears in section “Risks and Opportunities” of BIC “Reference Document” filed with the French financial markets authority (AMF) on 31 March 2009.

A presentation related to this announcement is available on BIC web site: www.bicworld.com, headline Investor Relations.

2010 Agenda

About BIC

BIC is a world leader in stationery, lighters and shavers. For more than 50 years, BIC has honored the tradition of providing high-quality, affordable products to consumers everywhere. Through this unwavering dedication, BIC has become one of the most recognized brands in the world. BIC products are sold in more than 160 countries around the world. In 2008, BIC recorded net sales of 1,420.9 million euros. The Company is listed on “Euronext Paris”, the SBF120 and CAC Mid 100 indexes. BIC is also part of the following SRI indexes: FTSE4Good Europe, ASPI Eurozone and Ethibel Excellence Europe.

For more information, please consult the corporate web site: www.bicworld.com

¹ See glossary

Unaudited figures

² Normalized IFO excludes closing of Stypen fountain pen factory in France, closing of Fountain Inn factory in the U.S. and real estate gains in 9 months 2008 and expenses related to the cost reduction plan announced in April plus APP (Antalis Promotional Products) negative goodwill and real estate gains in 9 months 2009.

³ 63.2 million euros related to Cello Pens acquisition were cashed out during the first 9 months 2009, the balance to be paid in Q4 09.