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The suspected Charlie Hebdo gunmen have exchanged fire with police as they holed an industrial estate with a hostage.
There had been reports that at least two people were killed and several wounded before Cherif and Said Kouachi entered business premises in the village of Dammartin-en-Goele, north-east of Paris, but prosecutors have denied reports of casualties.
A source close to the investigation said the suspects were in a small printing business named Creating Trend Discovery. AFP, quoting a police source, said the gunmen had taken one hostage.