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THE REINFORCEMENTS DIVISION SETS UP IN RUSSIA

On May 5, 2004, Saint-Gobain Vetrotex International and Saint-Gobain Vertex acquired 85% of the shares of Steklovolokno, a glass yarn manufacturer located at Gus Krystalny in the area of Vladimir in the North-East of Moscow. This company is leader in the Russian market, with sales of approximately €20 million euros.

The acquisition fits with the development strategy of the Saint-Gobain Group for emerging countries. Through this operation, the Reinforcements Division aims to develop its upstream and downstream activities in a favorable economic context and leverage the growth of the Russian composites market.

May 19, 2004