Postpublished at 12:21 Greenwich Mean Time 7 January 2015
France TV Info says that gunman is heard shouting "God is great" in Arabic in a video of shooting.
Gunmen have attacked the offices of French magazine Charlie Hebdo in Paris, killing 12 people including the editor and celebrated cartoonists
The hunt is on for three suspects, named by police as Hamyd Mourad and brothers Said Kouachi and Cherif Kouachi.
It is the deadliest terror attack in France since 1961 during the Algerian war
President Hollande said it was an act of "extreme barbarity", with many foreign leaders also condemning the attack
In 2011, the satirical publication was firebombed after naming the Prophet Muhammad as its "editor-in-chief"
Mohamed Madi, Sherie Ryder, Julia Macfarlane, Alastair Beach and Victoria Park
France TV Info says that gunman is heard shouting "God is great" in Arabic in a video of shooting.
People stand outside the French satirical newspaper Charlie Hebdo's office after the shooting.
More from President Hollande: "We must react with firmness, but with consideration for national unity. We are in a difficult moment - several attacks have been avoided. We knew we were threatened because we are a country of freedom. We will punish the attackers."
Witnesses quoted by French Europe 1 radio say that one of the attackers shouted "The prophet was avenged" while carrying out the assault.
France has reinforced security at places of worship, shops, media offices and transportation, AP reports.
"Nobody in France should think that they can behave against the principle of the Republic and harm the spirit of the Republic, embodied by a newspaper," President Hollande said. "Today I am thinking about the victims - 11 are dead, 4 are fighting for their lives. We should do whatever we can to find those responsible and to call for national unity."
"France today faced a shock," President Hollande said, "which is this is a terrorist operation, by terrorists, against a newspaper that has been threatened several times - and that's why we have to give it the protection it needs."
French President Francois Hollande (R) arrives at the Paris offices of Charlie Hebdo after the shootings.
Gilles Boulanger works in the same building as the Charlie Hebdo offices: "A neighbour called to warn me that there were armed men in the building and that we had to shut all the doors. And several minutes later there were several shots heard in the building from automatic weapons firing in all directions. So then we looked out of the window and saw the shooting was on Boulevard Richard-Lenoir, with the police. It was really upsetting. You'd think it was a war zone."
A French journalist in the Hebdo building who spoke to the BBC has described the situation as "a massacre".
This photograph has emerged of the purported gunmen facing off against police.
@SnehaSSneha tweets, external: The fresh attack on #CharlieHebdo Office clearly shows that the media needs to watch what it shows/speaks! But Why? can't we enjoy a satire?
President Hollande says that French security is now on highest alert and that 11 people are dead, four are critical and 40 others have been taken to safety. He says that one police officer is among the dead.
@lauchlan_s tweets, external: So sad about the #CharlieHebdo shooting. It's a scary time to be a journalist.
Fire fighters and police are now surrounding the Hebdo offices.
French President Francois Hollande has described the attack as a barbarous terrorist incident.
@ninafawr tweets, external: Freedom of expression and free press are core democratic values in France. They cannot and will never be defeated. #LT #CharlieHebdo
The French president also says that "several terrorist attacks were thwarted in recent weeks".
President Hollande says it is a "terrorist attack" of "exceptional barbarity".
President Hollande speaks at the Charlie Hebdo offices, confirming the 11 deaths and four seriously wounded.