FIRST-HALF 2004 RESULTS • STRONG GROWTH IN OPERATING PERFORMANCE: - Sales 7.1% to €15,696 million - Operating income up 6% to €1,258 million (up 7.5% at constant exchange rates* and excluding Dahl) On a like-for-like basis: - Sales up 5.5% - Operating income up 7.8% • NET INCOME EXCLUDING CAPITAL GAINS AND LOSSES UP 8.3% to €510 million • 2004 TARGET REVISED UPWARDS: SAINT GOBAIN has increased its target for OPERATING INCOME GROWTH to 7%, at constant exchange rates and excluding Dahl.

This performance testifies to the quality of Saint-Gobain's business model and demonstrates the Group's ability to reap the benefits both of the current economic recovery -particularly in industrial production and capital spending - and of the growth in emerging countries.

The Glass Sector achieved satisfactory organic growth, with like-for-like sales up 4.0% and a slight increase in operating income. The Insulation and Containers divisions, spurred by sustained favorable market conditions, posted improved profitability. The Reinforcements Division was still affected by an overall contraction in sales prices throughout 2003, despite an upturn during the second quarter of 2004. Flat Glass continued on the growth track, reporting a 4.1% increase in like-for-like sales but margins were eroded due to downward pressure on sales prices in the European construction market during the first quarter of the year.

High-Performance Materials built on its first quarter performance and once again reported the Group's strongest like-for-like growth (9.0%), as well as a significant increase in operating margin to 11.1% from 9% in the first half of 2003. The recovery in the manufacturing industry and capital spending continued and picked-up pace during the second quarter of 2004. The Business Sector also continued to benefit from the cost cutting programs implemented over the past few years.

The Housing Products Sector also achieved very strong sales, reporting like-for-like growth of 6.1%. Operating income, however, rose by a more modest 3.0% on a like-for-like basis, due to the downturn reported by the Pipe Division which suffered from a significant increase in raw materials costs. The Building Materials Division - which is smaller in size since the sale of Terréal and Certain Teed Ventilation in 2003 - continued to benefit from the buoyant residential construction market in the United States. Meanwhile, the Building Materials Distribution Division pursued its expansion drive, both through organic growth (6.6% in first-half 2004) and acquisitions (including the consolidation of Dahl from May 1, 2004). Operating margin improved once again for the Division, rising to 4.9% from 4.6% in first-half 2003.



• Detailed review of interim results:

Key figures from the interim consolidated financial statements reviewed by the Board of Directors on July 24, 2003 are as follows:

	H1 2003 EUR millions (1)	H1 2004 EUR millions (2)	% CHANGE (2)/(1)
Net sales	14,650	15,696	+7.1 %
Operating income	1,187	1,258	+6.0 %
Dividend income	4	2	-50 %
Interest and other financial charges, net	(242)	(213)	-12 %
Non-operating costs	(124)	(135)	+8.9 %
Income before profit on sales of non-current assets and taxes	825	912	+10.5 %
Profit (loss) on sales of non-current assets, net	2	(33)	n.m
Provisions for income tax	(271)	(307)	+13.3 %
Amortization of goodwill	(74)	(68)	-8.1 %
Share in net results of equity investees	2	3	+50 %
Net income before minority interests	484	507	+4.8 %
Minority interests	(14)	(20)	+42.9 %
Net income	470	487	+3.6 %
Earnings per share (in EUR)	1,38	1,41	+2.2 %
Net income excluding profits and losses on sales of non-current assets	471	510	+8.3 %
Earnings per share excluding profits and losses on sales of non-current assets (in EUR)	1,38	1,48	+7.2 %
Cash flow from operations	1,243	1,253	+0.8 %
Cash flow excluding capital gains tax	1,247	1,242	-0.4 %
Capital expenditure	501	546	+9.0 %
Investments in securities	251	512	+104 %
Net indebtedness	7,099	6,674	-6.0 %

Group sales climbed 7.1% on an actual structure basis and 3.1% based on a comparable structure. At constant exchange rates*, sales were up 9.5% on an actual structure basis, and 5.5% based on a comparable structure. Sales volumes rose 4.8% and prices 0.7%. France accounted for 33.1% of total sales, with other Western European countries contributing 39.6%, North America 17.2% and emerging countries and the Asia-Pacific region 10.1%. Operating income rose 6.0%. At constant exchange rates, it increased 8.9% and 7.5% excluding Dahl. The like-for-like increase in operating income was 7.8%. Operating margin stood at 8.0% compared with 8.1% in first-half 2003. This slight contraction in margin is attributable to the increased relative weight of the Building Materials Distribution Division within the Group, despite a robust increase in this Division's operating margin to 4.9% from 4.6% in first-half 2003. Excluding Building Materials Distribution, the Group's operating margin remained stable at 10.0%. Margins improved in all of the geographic areas where the Group operates except for France where the Pipe Division reported lower earnings as a result of significant increases in the cost of raw materials. * based on average exchange rates for first-half 2003. Net interest and other financial charges decreased 12% to €213 million from €242 million in first-half 2003, primarily thanks to the reduction in the Group's indebtedness and the favorable impact of converting interest on dollar-denominated debt into euros. Non-operating costs edged up from €124 million for the year-earlier period to €135 million in first-half 2004, equivalent to half of total non-operating costs for full-year 2003. As in first-half 2003, this figure includes a €50 million charge for the cost of asbestos-related claims filed against CertainTeed. The Group reported a €33 million loss on sales of non-current assets, reflecting write-downs and capital losses recorded on the sale of certain assets. Goodwill amortization amounted to €68 million, compared with €74 million in first-half 2003. This reduction was due to the higher amount of badwill released in first-half 2004 than one year earlier. Minority interests rose slightly, due to the increase in the contribution from the Group's Brazilian subsidiaries, which climbed from €14 million in first-half 2003 to €20 million in first-half 2004. Consolidated net income came to €487 million, up 3.6% on the prior-year period. Based on the 345,124,327 shares outstanding at June 30, 2004, earnings per share totaled €1.41, compared with €1.38 in first-half 2003 (based on 341,010,680 shares). The increase in the number of shares outstanding compared with June 30, 2003 reflects the issuance of 4,099,192 new shares in June 2004 for the purpose of attribution under the Group Savings Plan. Saint-Gobain will buy back and subsequently cancel an equivalent number of its own shares in order to ensure that the Company's total capital stock remains stable at December 31, 2004. Excluding profit and losses on sales of non-current assets, net income was up 8.3% to €510 million, compared with €471 million in first-half 2003. Based on the 345,124,327 shares outstanding at June 30, 2004, earnings per share excluding profit and losses on sales of non-current assets amounted to €1.48, compared with €1.38 in first-half 2003, representing an increase of 7.2%. Cash flow from operations came to €1,253 million, an increase of 0.8% on the corresponding prior -year period. Excluding the €(11) million tax impact of capital gains and losses, cash flow from operations was almost on a par with first-half 2003, at €1,242 million, versus €1,247 million. Capital expenditure rose 9% to €546 million, from €501 million in first-half 2003, and represented 3.5% of sales, compared to 3.4%. This rise was mainly fueled by the ramp-up of the capital expenditure program in emerging countries, particularly in Asia, led by the Flat Glass Division. Investments in securities totaled €512 million, including €381 million for Dahl and €64 million for bolt-on acquisitions in the Building Materials Distribution Division and in the Ceramics & Composites Sector. Net indebtedness (excluding financial instruments) was €6.7 billion at June 30, 2004 after payment of the 2003 dividend, down significantly from €7.1 billion one year earlier. The gearing ratio - based on consolidated shareholders' equity plus non-voting participating securities - was 56%. Asbestos claims in the United States: some 9,000 new claims were filed against CertainTeed during first-half 2004, including 800 in the State of Mississippi, representing 5 times less than the number of new claims filed in the same period of 2003 (48,000, including 28,000 in Mississippi). At the same time, 11,000 claims were resolved during the period. Therefore the number of outstanding claims at June 30, 2004 was slightly lower than at December 31, 2003, amounting to 106,000, compared with 108,000 (123,000 at June 30, 2003). The average cost of claims settled over the last twelve months was US$2,700 per claim, up on the 2003 average figure of US$2,100. This increase was due to the higher number of serious cases as a proportion of overall claims settled and claims currently in the process of being settled. Legislative efforts have been very active during the first half of 2004. On April 22, 2004, the Republican Majority Leader of the United States Senate attempted to move forward a debate on proposed legislation to create a National Asbestos Trust Fund. The bill fell short of the 60 votes (out of 100) required to pass through the Senate. A mediation process was then launched at the request of the Senate's Republican and Democrat leaders, in an attempt to reach an agreement among the various parties involved, particularly concerning the size of the fund. This negotiation concluded positively on many topics, except two: the size of the fund and claims values for the various disease categories. Since then, the Republican and Democrat leaders have exchanged proposals on the outstanding issues. With the support of the industrial and insurance sectors, a few weeks ago, the Republican Senate Majority Leader made a new proposal for a compensation fund representing a total of US$ 140 billion. Discussions are still going on, but as the Senate has recessed for the month of August, substantive negotiations may be delayed until September. Outlook and targets: in view of the Group's first-half 2004 performance and the encouraging outlook for its businesses for the second half of the year, Saint-Gobain is revising upwards its full-year growth targets for 2004. Based on constant exchange rates (average rates for 2003), the Group's target for 2004 is now 7% growth in operating income (excluding the positive impact of Dahl). July 29, 2003 Next results announcement: - Sales for the first nine months of 2004: October 26, 2004, after close of trading on the Paris Bourse. APPENDIX 1 Result by Business Sector, Division and Geographic Area (in EUR millions) I.SALES H1 2003 H1 2004 Change on an actual structure basis Change on an comparable structure basis Change on a comparable structure and currency basis by Sector and Division: Glass (1) 5,642 5,733 +1.6% +0.8% +4.0% Flat Glass 2,159 2,219 +2.8% +2.2% +4.1% Insulation and Reinforcements 1,534 1,593 +3.8% +2.3% +6.4% Containers 1,955 1,928 -1.4% -1.8% +2.2% High-Performance Materials (1) 1,640 1,749 +6.6% +3.1% +9.0% Ceramics & Plastics and Abrasives 1,640 1,749 +6.6% +3.1% +9.0% Housing Products (1) 7,515 8,378 +11.5% +5.0% +6.1% Building Materials 1,436* 1,294 -9.9% +3.0% +10.1% Building Materials Distribution 5,477 6,484 +18.4% +6.8% +6.6% Pipe 750 726 -3.2% -4.0% -3.8% internal sales and miscellaneaous -147 -164 n.m n.m n.m Group 14,650 15,696 +7.1% +3.1% +5.5% by geographic area: France 5,022 5,474 +9.0% +5.6% +5.6% Other European Countries 6,011 6,550 +9.0% +2.7% +2.3% North America 2,894 2,848 -1.6% -0.9% +10.0% Emerging countries and Asia 1,425 1,660 +16.5% +10.3% +16.2% internal sales -702 -836 n.m n.m n.m Group 14,650 15,696 +7.1% +3.1% +5.5% (1) including inter-division eliminations * including €188m from companies sold in 2003 . II. OPERATING INCOME H1 2002 H1 2003 Change on an actual structure basis by Sector and Division: Glass 574 587 +2.3% Flat Glass 227 217 -4.4% Insulation and Reinforcements 134 140 +4.5% Containers 213 230 +8.0% High-Performance Materials 147 195 +32.7% Ceramics & Plastics and Abrasives 147 195 +32.7% Housing Products 453 457 +0.9% Building Materials 125* 92 -26.4% Building Materials Distribution 250 317 +26.8% Pipe 78 48 -38.5% misc. 13 19 n.m Group 1,187 1,258 +6.0% by geographic area: France 470 428 -8.9% Other European Countries 355 401 +13.0% North America 223 236 +5.8% Emerging countries and Asia 139 193 +38.8% Group 1,187 1,258 +6.0% * including €36 million for the businesses sold during 2003 III. CASH FLOW H1 2003 H1 2004 Change on an actual structure basis by Sector and Division: Glass 696 688 -1.1% Flat Glass 266 247 -7.1% Insulation and Reinforcements 179 183 +2.2% Containers 251 258 +2.8% High-Performance Materials 153 176 +15.0% Ceramics & Plastics and Abrasives 153 176 +15.0% Housing Products 336 360 +7.1% Building Materials 90* 95 +5.6% Building Materials Distribution 172 223 +29.7% Pipe 74 42 -43.2% misc. 58** 29** -50.0% Group 1,243 1,253 +0.8% by geographic area: France 487 418 -14.2% Other European Countries 367 390 +6.3% North America 212** 222** +4.7% Emerging countries and Asia 177 223 +26.0% Group 1,243 1,253 +0.8% * including €36m from companies sold in 2003 **after the asbestos-related litigation charge of €34m after taxes IV. CAPITAL EXPENDITURE ON PLANT & EQUIPMENT H1 2002 H1 2003 Change on an actual structure basis by Sector and Division: Glass 286 343 +19.9% Flat Glass 102 149 +46.1% Insulation and Reinforcements 86 93 +8.1% Containers 98 101 +3.1% High-Performance Materials 42 44 +4.8% Ceramics & Plastics and Abrasives 42 44 +4.8% Housing Products 172 157 -8.7% Building Materials 57* 34 -40.4% Building Materials Distribution 95 107 +12.6% Pipe 20 16 -20.0% misc. 1 2 +100.0% Group 501 546 +9.0% by geographic area: France 126 114 -9.5% Other European Countries 159 183 +15.1% North America 87 100 +14.9% Emerging countries and Asia 129 149 +15.5% Group 501 546 +9.0% APPENDIX 2 CONSOLIDATED BALANCE SHEET (in EUR millions) ASSETS June 30, 2004 Dec. 31, 2003 Goodwill 5,483 4,902 Other intangible assets, net 1,894 1,836 7,377 6,738 Property, plant and equipment 21,897 21,199 Less: depreciation (13,043) (12,513) 8,854 8,686 Investments in equity investees 57 75 Investments, at cost 142 139 Non-current marketable securities 74 78 Other non-current assets 1,532 1,521 1,805 1,813 Non-current assets 18,036 17,237 Inventories 5,039 4,509 Trade accounts receivable, net 5,368 4,240 Other receivables 1,266 1,035 Short-term loans 99 160 Marketable securities 805 1,387 Cash and cash equivalents 1,359 1,527 Current assets 13,936 12,858 Total assets 31,972 30,095 LIABILITIES AND SHAREHOLDERS' EQUITY Capital stock (made up of 345,124,327 €4 par value shares at 06/30/2004, and 347,824,967 €4 par value at 12/31/2003) 1,380 1,391 Additional paid-in capital and legal reserve 2,283 2,381 Retained earnings and net income for the year 9,964 9,869 Translation adjustments (2,036) (2,241) Treasury stock (65) (313) Shareholders'equity 11,526 11,087 Minority interests 253 223 Net equity of consolidated entities 11,779 11,310 Non-voting participating securities 170 170 Pensions and other post-retirement benefits 2,322 2,305 Deferred tax liability 587 599 Other liabilities 996 1,032 Long-term debt 6,032 6,518 Shareholders'equity and non-current liabilities 21,886 21,934 Trade accounts payable 4,328 3,592 Other payables and accrued expenses 2,853 2,356 Current portion of long-term debt 897 550 Short-term debt and bank overdrafts 2,008 1,663 Current liabilities 10,086 8,161 Total liabilities and shareholders'equity 31,972 30,095