Interim Results

Compagnie de Saint-Gobain
26 July 2001


ESTIMATED RESULTS FOR FIRST HALF 2001 OF SAINT-GOBAIN 

CONTINUED GROWTH

- Sales up 3.6% on a comparable structure basis
- Operating income up 5.2% on a comparable structure basis
- Net income excluding capital gains up 2.9%, to EUR 560 million

OBJECTIVE MAINTAINED FOR FULL YEAR 2001: 10% GROWTH IN NET INCOME EXCLUDING
CAPITAL GAINS

Excluding profit on sales of non-current assets, net income of the Saint-Gobain
Group for the first half of 2001 is estimated at EUR 560 million (FF 3,673
million), up 2.9% compared with the same period of 2000.

Consolidated net income is estimated at EUR 658 million (FF 4,316 million). This
is 24.6% below the first-half 2000 figure, due to lower capital gains.

The Group's consolidated financial statements for first-half 2000 included the
results of Essilor, which was fully consolidated over the entire period. In
first-half 2001, however, Essilor was no longer consolidated, as the Group had
sold its entire stake in this company in November 2000. For purposes of
comparability, the Group's consolidated financial statements for first-half 2000
are also presented with Essilor accounted for by the equity method, and the
comments that follow are based on this presentation.

The estimated interim consolidated financial statements were reviewed by the
Board of Directors at its meeting of July 26, 2001. Key figures for the period
are as follows:

                                H1 2000       H1 2000        H1 2001      Change
                              EUR millions   pro forma         est.          %
                                             Essilor by    EUR million  
                                                E.M.
                                            EUR millions  
                                                (1)            (2)       (2)/(1)

Net sales                        13,782        12,804         15,286      19.4% 
Operating income                  1,401         1,271          1,377       8.3% 
Dividend income                      22            22             22         0% 
Interest and other financial 
 charges, net                      (272)         (254)          (311)     22.4% 
Non-operating costs                 (63)          (62)           (43)    -30,6% 
Income before profit on sales 
 of non-current assets and 
 taxes                            1,088           977          1,045       7.0% 
Profit on sales of non-current 
 assets, net                        414           414            134     -67.6% 
Provisions for income tax          (483)         (450)          (412)     -8.4% 
Amortization of goodwill            (97)          (86)           (93)      8.1% 
Share in net results of equity 
 investees                           31            50              9     -82.0% 
Net income before minority 
 interests                          953           905            683     -24.5% 
Minority interests                  (80)          (32)           (25)    -21.9% 
Net income                          873           873*           658     -24.6% 
Earnings per share (in EUR)       10.41         10.41           7.64     -26.6% 
Net income excluding capital 
 gains                              544           544*           560       2.9% 
Earnings per share excluding 
 capital gains (in EUR)            6.49          6.49            6.5       0.2% 
Cash flow from operations         1,339         1,226**        1,384      12.9% 
Cash flow excluding capital 
 gains                            1,428         1,315**        1,435       9.2% 
Depreciation and amortization 
 (including goodwill)               813           756            836      10.6% 
Capital expenditure                 779           695            557     -19.9% 
Investments in securities         2,242         2,170            539     -75.2% 
Net indebtedness                  8,421         8,421          8,355      -0.8% 


*  of which Essilor: EUR 20 million
** of which Essilor: EUR 11 million


This performance in first-half 2001, compared to a particularly strong
first-half 2000, reflects the Saint-Gobain Group's ability to continue to grow
despite a markedly more difficult economic environment, particularly in the
United States. The Group's sturdier operations mix, added to the constant
profitability-boosting efforts pursued in each of the business sectors (see
Appendix) explains this resilience.

The Glass Sector posted the strongest performance within the Group in first-half
2001. Its sales and earnings were bolstered by sustained demand across all
business lines and higher Flat Glass and Reinforcements prices.

The High-Performance Materials Sector recorded a slight dip in relation to
first-half 2000, in terms of both sales and profitability, due to the impact on
the Abrasives Division of the manufacturing slowdown in the United States and to
the abrupt contraction in the worldwide electronics market, which has hurt
several Ceramics & Plastics businesses since the beginning of the second
quarter.

The Housing Products Sector recorded mixed results: Building Materials
Distribution continued to develop through both organic growth and bolt-on
acquisitions, but the Division's operating margin has been diluted by the
acquisition of Raab-Karcher in 2000. The Pipe Division's sales were on a par
with those of first-half 2000, but its margins grew thanks to the cost-reduction
drive undertaken in the final months of 2000. Although affected by the slowdown
in the U.S. building industry since the peak of the first-half 2000, the
performance of the Building Materials Division has improved compared to
second-half 2000 thanks to the industrial rationalization efforts it has carried
out and to a marked upturn in activity in the United States in the second
quarter.


Group sales were up 19.4%. Based on a comparable Group structure, sales rose
3.6% in euros and 2.6% in local currencies. This growth was mainly attributable
to higher sales prices in all Group Divisions, as volumes declined slightly: the
drop in North America was not fully offset by expansion in Europe and in
emerging countries.

Sales in France accounted for 29.4% of the total, with other European countries
contributing 40.3%, North America 23% and other countries 7.3%.

Operating income rose by 8.3%, and 5.2% on a comparable structure basis.
Operating margin was 9%, compared to 9.9% in first-half 2000. The change was
wholly attributable to the increased weight of the Distribution Division.
Excluding Distribution, operating margin rose to 11%, up from 10.9% in
first-half 2000.

Profitability gains were achieved in France and in other European countries
(excluding Building Materials Distribution) as well as in emerging countries,
but margins contracted in North America due to the overall slowdown in most of
the Group's markets (with the notable exception of glass containers).

The increase in net interest and other financial charges was the result of the
acquisitions carried out in the course of 2000. Non-operating costs contracted
sharply to EUR 43 million from EUR 62 million in first-half 2000.

Profit on sales of non-current assets, in an amount of EUR 134 million, mainly
concerned capital gains on the disposal of the Group's entire stake in BNP
Paribas, less asset write-downs recorded by the Lapeyre Group with a view to
disposing of its operations involving sales of third-party products and sales to
building sites. 

The Group's share in net results of equity investees amounted to _EUR 9 million,
against EUR 50 million in first-half 2000. This sharp decrease was mainly due to
the sale in November 2000 of the Group's interest in Essilor and also to the
full consolidation of certain subsidiaries.

Net income amounted to EUR 658 million, down 24.6% in relation to first-half
2000. Based on the number of shares outstanding at June 30, 2001 (86,133,298
shares, taking into account the 903,150 shares issued under the Group Savings
Plan), earnings per share came to EUR 7.64. In line with the commitments made by
the Group, the new shares issued in the course of the first half will be
neutralized in the second, by the cancellation of an equivalent number of
shares, to bring total capital stock back to its level at December 31, 2000,
i.e. 85,213,263 shares.

Excluding profit on sales of non-current assets, net income came to EUR 560
million, 2.9% higher than the EUR 544 million recorded in first-half 2000. Based
on the total number of shares outstanding at June 30, 2001 (86,133,298),
earnings per share excluding capital gains stood at EUR 6.5.

Cash flow from operations expanded by 12.9% to EUR 1,384 million. Excluding the
EUR 51 million in tax on profit on sales of non-current assets, cash flow from
operations stood at EUR 1,435 million, an increase of 9.2% over the EUR 1,314
million for first-half 2000.

Capital expenditure on plant and equipment totalled EUR 557 million (compared to
EUR 695 million for the same period last year), representing 3.6% of sales, down
from 5.4% in first-half 2000.

Expenditure on securities amounted to EUR 538 million, including EUR 322 million
for the buyback of minority interests in Saint-Gobain Cristaleria and in the
Group's Brazilian subsidiaries.

Net debt at June 30, 2001 stood at EUR 8.4 billion, on a par with the amount at
December 31, 2000 and representing approximately 67% of shareholders' equity.

Outlook: the Saint-Gobain confirms its target for 2001 a 10% increase in net
income before profit on sales of non-current assets, provided there is no new
and significant deterioration in the economic environment. The Group is
therefore aiming for a sharp year-on-year expansion in its second-half net
income excluding capital gains, taking into account, on the one hand, a lower
reference point (as the effects of the slowdown in North America had already
been felt in second-half 2000) and, secondly, potential for performance
improvements in the Housing Products Sector, particularly the Distribution
Division.


Next results announcements:

- Final results for first-half 2001: Thursday, September 20, after the Paris    
  Stock Exchange has closed.
- Sales for the nine months to September 30, 2001: Tuesday, October 30, after   
  the Paris Stock Exchange has closed.


The Saint-Gobain Group will be holding an analysts' meeting on Friday, July 27
at 8:30 a.m. (Paris time) to present its interim results. This meeting will be
broadcast on the Internet, live beginning at 8:30 a.m. (Paris time), and
recorded as from 2:00 p.m. (Paris time). If you wish to take part and ask
questions directly, we invite you to visit the Saint-Gobain website at 
www.saint-gobain.com. You will need a personal computer with a sound card and
with the RealPlayer program installed and correctly configured for the browser
you are using.

To test your equipment setup prior to the live event, you can tune in to the
webcast of the Annual Shareholders' Meeting of June 28, 2001, which is already
available on the Saint-Gobain website.

July 26, 2001

                         Investor Relations Department

Tel: Florence TRIOU-TEIXEIRA   [phone] 
mailto: [e-mail] 

Tel.: Lounis BEKKAT            [phone] 
mailto: [e-mail] 
Fax : [phone]



Appendix 
Results by Business Sector, Division and Geographic Area 
(in EUR millions) 

                                         change on                  change on
                           H1      H1    an actual   change on    a comparable
                          2001    2001   structure  a comparable  structure and
                                  est.     basis     structure    currency basis

I. SALES 

by sector and division
Glass (1)                5,519   5,967      +8.1%       +6.2%         +5.2% 
Flat Glass               2,055   2,262     +10,1%       +7,3%         +8,0% 
Insulation and 
 Reinforcements          1,548   1,652      +6,7%       +1,7%         +0,1% 
Containers               1,921   2,059      +7,2%       +8,8%         +6.2% 
High-Performance 
 Materials & Plastics 
 (1)                     2,996   2,129     -28.9%       -0.6%         -3.1% 
Ceramics and H.P. 
 Plastics & Abrasives    2,018   2,129      +5,5%       -0.6%         -3.1% 
Essilor                    978      0    -100.0%     
Housing Products (1)     5,343   7,310     +36.8%       +2.4%         +2.0% 
Building Materials       1,527   1,596      +4.5%       +1.8%         -1.2% 
Building Distribution    3,028   4,914     +62.3%       +4.4%         +4.8% 
Pipe                       882     916      +3.9%       -1.4%         -0.5% 

internal sales             -76    -120       

Group                    13,782 15,286     +10.9%       +3.6%         +2.6% 
  
by geographic area: 
Essilor                   4,313  4,662      +8.1%       +6.1%         +6.1%
France                    4,707  6,404     +36.1%       +2.5%         +3.1% 
Other European Countries  3,356  3,652      +8.8%       +2.6%         -4.3%
North America               957  1,159     +21.1%       +5.2%        +12.5%     
Rest of the world           978      0    -100.0%
Internal sales             -529   -591      n.s.     
Group                    13,782 15,286     +10.9%       +3.6%         +2.6% 


(1) including inter-division eliminations


II. OPERATING INCOME                              H1       H1     
                                                 2000     2001      change 
                                                          est.
by Sector and Division: 
Glass                                             589      684      +16.1% 
Flat Glass                                        192      274      +42.7% 
Insulation and Reinforcements                     199      208       +4.5% 
Containers                                        198      202       +2.0% 
High-Performance Materials & Plastics             399      253      -36.6% 
Ceramics and H.P. Plastics & Abrasives            269      253       -5.9% 
Essilor                                           130        0     -100.0% 
Housing Products                                  408      429       +5.1% 
Building Materials                                152      130      -14.5% 
Building Distribution                             192      220      +14.6% 
Pipe                                               64       79      +23.4% 
misc.                                               5       11   
Group                                           1,401    1,377       -1.7% 
  
by geographic area:       
France                                            425      480      +12.9% 
Other European Countries                          359      470      +30.9% 
North America                                     390      297      -23.8% 
Rest of the world                                  97      130      +34.0% 
Essilor                                           130        0     -100.0% 
Group                                           1,401    1,377       -1.7% 


III. CASH FLOW                                    H1       H1     
                                                 2000     2001      change 
                                                          est.

by Sector and Division: 
Glass                                             687      797      +16.0% 
Flat Glass                                        230      310      +34.8% 
Insulation and Reinforcements                     215      232       +7.9% 
Containers                                        242      255       +5.4% 
High-Performance Materials & Plastics             348      210      -39.7% 
Ceramics and H.P. Plastics & Abrasives            224      210       -6.3% 
Essilor                                           124        0     -100.0% 
Housing Products                                  360      347       -3.6% 
Building Materials                                149      129      -13.4% 
Building Distribution                             144      145       +0.7% 
Pipe                                               67       73       +9.0% 
misc.                                             -56       30   
Group                                           1,339    1,384       +3.4% 

  
by geographic area: 
France                                            316      425      +34.5% 
Other European Countries                          423      495      +17.0% 
North America                                     341      297      -12.9% 
Rest of the world                                 135      167      +23.7% 
Essilor                                           124        0     -100.0% 
Group                                           1,339    1,384       +3.4% 


IV. CAPITAL EXPENDITURE                           H1       H1
    ON PLANT AND EQUIPMENT H1                    2000     2001    variation
                                                          est.
by Sector and Division: 
Glass                                             430      292      -32.1% 
Flat Glass                                        189      115      -39.2% 
Insulation and Reinforcements                     136       91      -33.1% 
Containers                                        105       86      -18.1% 
High-Performance Materials & Plastics             170       75      -55.9% 
Ceramics and H.P. Plastics & Abrasives             86       75      -12.8% 
Essilor                                            84        0     -100.0% 
Housing Products                                  178      190       +6.7% 
Building Materials                                 66       55      -16.7% 
Building Distribution                              87      119      +36.8% 
Pipe                                               25       16      -36.0% 
misc.                                               1        0   
Group                                             779      557      -28.5% 
  

by geographic area: 
France                                            166      144      -13.3% 
Other European Countries                          231      191      -17.3% 
North America                                     158      141      -10.8% 
Rest of the world                                 140       81      -42.1% 
Essilor                                            84        0     -100.0% 
Group                                             779      557      -28.5%