COD Compagnie De Saint-gobain

RNS Number:7823P
Compagnie de Saint-Gobain
18 January 2007



Press release

                             Paris, January 18, 2007


SAINT-GOBAIN'S CONSTRUCTION PRODUCTS SECTOR BOLSTERS ITS PRESENCE IN EMERGING
COUNTRIES

Saint-Gobain's Construction Products sector is strengthening its positions in
emerging countries, thanks to six acquisitions completed over the last few weeks
in South Africa, Algeria, Turkey and Argentina. The acquisitions concern
companies involved in the industrial mortars, insulation and gypsum businesses,
and represent total sales of more than Euro230 million.

In South Africa, Saint-Gobain has acquired TAC and Tylon, the country's leading
manufacturer of industrial mortars for tile adhesives, and has also entered into
an agreement with a view to acquiring Owens-Corning South Africa, South Africa's
top-ranking insulation business. This acquisition is subject to the approval of
the South African competition authorities.

Tylon is South Africa's no.1 manufacturer of cement-based tile adhesives and
grouts. It has sales of around Euro20 million and employs close to 70 people. Tylon
has two plants, in Johannesburg and Cape Town. Renowned for the quality of its
products and services, Tylon boasts an extensive network of distributors across
the country.

TAC offers an ideal complement to Tylon's geographical market and has an
adhesives plant 200 km to the east of Johannesburg (Middleburg). TAC was created
in 2005, fields a workforce of nearly 30 employees, and generates around Euro5
million in sales.

Saint-Gobain has entered into an agreement to purchase Owens Corning South
Africa (OCSA). With sales of approximately Euro25 million, OCSA is the only
manufacturer of glass wool and stone wool in South Africa and also manufactures
insulating foam. A former Isover licensee (glass wool and stone wool), the
company has already used Saint-Gobain's TEL process (1957 to 1997).

These three companies will be able to enhance their service offering to their
distributor and applicator customers thanks to BPB Gypsum Ltd and its logistics
network.

In Algeria, Saint-Gobain has acquired 66% of the share capital of CM Gypso,
based in Bouira. CM Gypso has two quarries, which are thought to hold more than
40 million tons of gypsum. CM Gypso is ideally situated to serve customers in
two major cities - Algiers and Constantine, which represent 75% of the domestic
plaster market. On the manufacturing front, Saint-Gobain is planning to build a
220,000-ton facility for production of its plaster product range.

In Turkey, Saint-Gobain and its partner Alghanim have taken joint control of
Izocam, after having acquired a majority stake (61.2%) in its capital. An IPO on
the remaining shares will be launched on the Istanbul stock market.

Izocam has been an Isover licensee for over 40 years. The front-ranking supplier
of insulation in Turkey and the Middle East, Izocam expects to deliver sales of
around Euro125 million in 2006, up sharply from 2005.

In Argentina, Saint-Gobain has acquired Iggam, a company specializing in
industrial mortars and plaster. IGGAM reported sales of Euro18 million in 2005 and
has two plants, one in Tortuguitas near Buenos Aires, and one in the state of
Entre Rios, 500 km to the north of the capital.

Tortuguitas is an ideal complement to Saint-Gobain Weber Argentina's plant in
Bosques, 40 km to the south of Buenos Aires. The two sites are perfectly
situated to serve the Buenos Aires region, where most of the Argentine business
is generated.

In a market enjoying sustained growth, this acquisition drives Saint-Gobain
Weber into the top spot on all industrial mortars segments (tile adhesives,
wall-facing products, additives, white cement, etc.) and broadens its business
portfolio. This acquisition also represents an opportunity for Saint-Gobain's
Gypsum business, which is regaining its foothold on the Argentine market with
its Tuyango plaster brand, the recognized market leader.


                               *     *      *


These acquisitions in attractive and dynamic construction markets have confirmed
Saint-Gobain Construction Products as a major player in South Africa, Argentina,
Algeria and Turkey. The acquisitions have also helped to further the sector's
development in emerging countries.

With 45,000 employees across the globe and 250 consolidated companies,
Saint-Gobain Construction Products is the leader in all of its businesses:
insulation (Isover), gypsum (Placo, Gyproc, Rigips, etc.), outdoor living
solutions (CertainTeed), industrial mortars (Weber) and pipe (Pam). In 2005, the
Construction Products sector delivered sales of Euro10 billion (proforma BPB),
representing 26% of the total sales reported by the Saint-Gobain Group.


                         Investor Relations Department



Mrs Florence TRIOU-TEIXEIRA      Tel.: +33 1 47 62 45 19
Mr Alexandre ETUY                Tel.: +33 1 47 62 37 15
                                 Fax.: +33 1 47 62 50 62





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