Acquisition

Compagnie de Saint-Gobain
11 March 2004



press
release




  Saint-Gobain acquires Dahl International, a building distribution leader in
                       Scandinavia with sales of €1.4bn.


The Building Distribution Division of Saint-Gobain announces the acquisition of
Dahl International AB, the leader in sanitary, heating and plumbing distribution
in Scandinavia, for a total consideration of €686 million.



Founded in 1866 by the Dahl brothers, Dahl International AB serves three
markets: sanitary-heating-plumbing; hydraulic and drainage for public works;
industrial plumbing.



The company has a network of 260 outlets in Sweden (81 outlets), Norway (50
outlets), Denmark (60 outlets) and Finland (22 outlets), as well as 43 outlets
in Poland and 4 in Estonia. It has a leadership position in each of these
countries. In 2003, it posted sales of SEK 12.5 billion (€1.4 billion) and
employs over 3,400 people.



The cash consideration for the acquisition amounts to SEK 6,311 million (€686
million), including SEK 2,963 million (€322 million) in the form of transferred
debt. This represents respectively 0.5 and 8.6 times the amount of 2003 sales
and proforma* operating income (SEK 733 million or euros 80 million). The
acquisition will have a positive impact as of 2004 on the Group's net income
(after taxes and goodwill amortization).



The acquisition enables the Building Materials Distribution Division of
Saint-Gobain to extend its European leadership to Scandinavia, by setting up in
five new countries. It will also enable the Division to continue to develop its
specialized business lines by strengthening its position in the European
sanitary, heating and plumbing market. Finally, it provides the Division with a
solid base for the development of its various businesses in Scandinavia.



This significant acquisition underscores Saint-Gobain's growth strategy and
ambitions for its Building Distribution Division. It is  consistent with
Saint-Gobain's strategy combining organic growth, external growth in the new
businesses (Building Distribution, High Performance Materials) and development
in emerging countries, supported by a strong balance sheet.



The completion of the acquisition will be subject to approval by the appropriate
competition authorities.



The Building Distribution Division of Saint-Gobain employs over 50,000 people,
and reported 2003 sales of €11.3 billion. The Dahl acquisition will enable it to
consolidate its position as the European leader in building materials
distribution, through a network of over 3,100 sales outlets located in 14
countries. The Division's main brands are Point.P, Jewson, Raab Karcher, Lapeyre
and La Plateforme du Batiment. Its major specialized brands for the
distribution of sanitary, heating and plumbing products are Cedeo in France and
Graham in the United Kingdom.





* taking into account acquisitions made during 2003 on a full year basis, and
excluding non-recurring items.


March 5, 2004



Investor Relations Department



Mme. Florence TRIOU-TEIXEIRA  Tel. : [phone]
M. Alexandre ETUY             Tel. : [phone]
                              Fax : [phone]


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