Subsid's Market Conditions

Compagnie de Saint-Gobain
14 December 2000




Faced with persistently difficult market conditions in Germany and Spain, the
Lapeyre Group has decided to take the following measures:

  - In Germany, operations of the Gluck and Fenstratec companies will be 
    discontinued and production capacity will be scaled back at the building
    trade supply companies.

  - In Spain, the building trade supply business will be discontinued and the
    Lapeyre Spain chain will be reduced from nine outlets to three.

These measures, which have been announced in the local markets, will have a
greater impact on second half 2000 Group earnings than the non-operating costs
already recorded in the first half results.

This impact will not be offset by the healthy business trend in France. 
Operating income for the year is therefore expected to be slightly lower than in
1999, while net income is expected to decline by approximately 25% as a result
of non-operating costs booked at year-end.

Lapeyre - Investor Relations
Patrick Mallet
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