Air Liquide Achieves New Successes in Hydrogen and in Asia, Especially China.

Business Editors

PARIS--(BUSINESS WIRE)--Nov. 24, 2003

Air Liquide has recently scored a number of major successes in its sales of hydrogen and carbon monoxide. Use of these two gases is developing very strongly, both in chemicals and refining. The new contracts mark a new milestone in our business growth in China and Korea and consolidate the Group's position in Europe.

In China, the Group has been present for over 10 years, and now has more than 800 employees there. Our strategy has been to focus our development on geographical areas with strong potential (Shanghai, Guangdong, Beijing and Tianjin). We already have a significant presence in electronics, liquid gases and engineering. Air Liquide's human and technological resources and its plants are now on a similar scale to those at its disposal elsewhere in major developing markets.

Our subsidiary, Shanghai Chemical Industry Park Industrial Gases Company (SCIPIG), a 50/50 joint venture with Praxair, has won new contracts for the pipeline supply of large volumes of hydrogen and carbon monoxide to two major international petrochemical groups based in the Shanghai region. The contracts are scheduled to commence in the first half of 2006. To date, total investment in SCIPIG amounts to USD 120 million, making it a key player in the rapidly expanding Shanghai area.

In Korea, Air Liquide has just brought a new unit into service, quadrupling its existing production capacity. The location is the Yosu Basin, a major site for this country's petrochemical industry. This takes the company's total investment to 100 million euros since 1996. The commissioning of this unit reflects the competitiveness of Air Liquide's technological solutions. The plant will serve several major industrial customers and strengthen the Group's presence in Korea, where it has been directly established since 1996, having previously worked in partnership with Daesung Sanso for many years.

In Europe, near Antwerp, the Group has just completed commissioning of its world's biggest hydrogen production unit. Brought into service in October 2003, it will supply the BASF chemical group under a contract signed in 2002. The plant boasts a capacity of 100 000 m3/hour and represents an investment of 80 million euros. It will also supply other Air Liquide customers via a hydrogen pipeline network. This network is already serving customers in the Antwerp Basin, in the Netherlands, especially the Port of Rotterdam, as well as customers in southern Belgium and northern France.

"Hydrogen now accounts for about 400 million euros in sales and offers significant growth perspectives in all geographies," commented Benoit Potier, Chairman of the Management Board. "Asia, a region of the world where we have a strong presence, now represents 50% of our organic growth. These development clearly demonstrate the success of two of our key strategic growth drivers, i.e. hydrogen and Asia."

Notes to the editors:

Large quantities of hydrogen are used by refineries to reduce the sulfur content of fuels, in line with environmental regulations. Carbon monoxide is indispensable to the chemical industry for producing polyurethane foam used in cars or furniture, polycarbonates used in high-tech rigid plastic manufacture (sophisticated lenses, car headlights...).

The Group offers innovative solutions based on constantly enhanced technologies. These solutions help to protect life and enable our customers to manufacture many indispensable everyday products. Founded in 1902, Air Liquide has 30,800 employees. The Group has successfully developed a long-term relationship with its shareholders built on confidence and transparency and guided by the principles of corporate governance. Since the publication of its first consolidated financial statements in 1971, Air Liquide has posted strong and steady earnings growth. Sales in 2002 totalled 7,900 million euros, sales outside France accounted for 76%. Air Liquide is listed on the Euronext Paris stock exchange and is a component of the CAC 40 and Eurostoxx 50 indexes -- Euroclear code 12 007.