Schneider Electric: New Executive Committee to Pursue Growth Policy.

Business Editors

RUEIL MALMAISON, France--(BUSINESS WIRE)--Nov. 7, 2001

A new organization has been set up by Henri Lachmann, Schneider Electric Chairman and Chief Executive Officer, in order to leverage company support for its ongoing growth strategy, which aims to push back geographic, technological and business limits and improve the company's capacity to react in a difficult economic environment.

The new organization, which will be more proactive and better anticipate customer requirements, was approved by the Board of Directors on October 19, 2001.

The main changes in the general organization of Schneider Electric concern:

- Geographic coverage: the French Division is now part of the European Division
in a move to respond more effectively to customer needs and given that Europe
is an economic, industrial and commercial reality.

- Divestment of Legrand: a project coordinator has been appointed to oversee
the separation of Legrand from Schneider Electric. He will also take
responsibility for acquisitions, for following them through and for the
integration of Lexel.

- The Markets Division is now part of the Strategy Division in order to focus
growth and define targets and strategies to access them, including the search
for partners.

- The creation of a Developments & Industry Division, which will pool shared
and complementary resources in order to become more effective in product
development, accelerate time-to-market, implement industrial strategy and
globalize purchasing.

The general organization is now based on three operational divisions, two central divisions, two functional divisions and one project division. The eight Executive Vice-Presidents are members of the Executive Committee and will report directly to the Chairman, Henri Lachmann.

"Thanks to this new organization, which is more customer-oriented, Schneider Electric will be able to pursue its growth strategy and continue to develop its low voltage, industrial control and automation, building control and home automation activities. Everything is now in place for us to succeed", said Henri Lachmann, Chairman and CEO of Schneider Electric.

The new general organization of Schneider Electric

Three operational divisions

- The European Division will be headed up by Christian Wiest.

In 2000, it accounted for 49% of Schneider Electric sales and counted 42,000 people.

- The North American Division (United States, Canada and Mexico)

will be headed up by Chris Richardson. Within the framework of

the new organization, he is also responsible for the Global

Industrial Accounts (there are 84) and OEMs In 2000, this

division represented 28% of Schneider Electric sales and

counted 20,300 people.

- The International Division (Africa, South America, Asia and

Australia) comes under the responsibility of Jean-Louis Andreu

until January 1, 2002 when he retires. He will be replaced by

Jean-Pascal Tricoire. The International Division accounts for

13% of Schneider Electric sales and counts 9,700 people.

Two Central Divisions

- The Strategy & Markets Division, which is headed up by Eric

Pilaud and concerns the four key Schneider Electric markets:

Energy, Industry, Infrastructure and Buildings. It covers

strategy, planning, commercial development, e-business and

services.

- The Developments & Industry Division, under the responsibility

of Marcel Torrents, oversees all the support functions such as

product development, industrialization, purchasing, quality,

R&D and information systems.

The Projects Division is the responsibility of Jean Paul Saas.

Two Functional Divisions

- Finance and Management Control, under the responsibility of

Antoine Giscard d'Estaing.

- Human Resources & Communication, under the responsibility of

Jean-Francois Pilliard.

These appointments came into effect on November 5, 2001 and will be implemented gradually in order to be fully operational by December 1.

Schneider Electric

Schneider Electric is the world's power and control specialist through its world-class brands Merlin Gerin, Modicon, Square D and Telemecanique. Schneider Electric anticipates and satisfies its customers' requirements in the energy, buildings, industry and infrastructure markets.

Schneider Electric's 72,200 employees generated sales of EUR 9.7 billion in 2000 via 9000 sales outlets in 130 countries

The Executive Committee

Jean-Louis Andreu

Date of birth: March 25, 1937.

Ecole des Mines, MBA from Harvard, Japanese Business Study Program.

After beginning his career at Paribas, he spent ten years at CECA before joining Compagnie Generale d'Electricite (CGE). He served as Chariman and CEO of Joint Francais and as Vice-Chairman and CEO of Compagnie Europeenne des Accumulateurs. He joined Schneider in 1988.

Antoine Giscard d'Estaing

Date of birth: January 5, 1961

Ecole des Hautes Etudes Commerciales (HEC, 1982) and Ecole Nationale d'Administration (ENA, 1986).

After graduating, he spent four years as a finance inspector in the French civil service. He then joined Lyonnaise des Eaux, where he held a number of positions within the Finance Department and at subsidiary Elyo. From October 1995 to May 1999, he served as Senior Vice President, Finance, for the Group, which merged with Suez to become Suez Lyonnaise des Eaux in 1997. He then joined Schneider Electric, becoming a member of the Executive Committee since the end of 1999.

Eric Pilaud

Date of birth: April 6, 1957

PHD in Computer Science (critical information systems). Harvard Business School.

He began his career as both a university professor and researcher and a corporate consultant in information technology. He joined Schneider Electric subsidiary SES in 1986. Five years later, he was appointed to head SF Gardy in Chalon-sur-Saone. He spent 1995 to 1998 in the UK, first as director of Westinghouse Systems and then of the Automation and Control Division. He led the (Schneider 2000+) Company program from 1999 to 2000. He was subsequently responsible for the development of e-business within the group.

Jean-Francois Pilliard

Date of birth: February 17, 1949.

Degree in Law, Graduate Degree in Human Resources Management (CIFFOP) - INSEAD.

After four years with French pharmaceuticals firm Roussel-Uclaf, he joined Societe Francaise d'Equipement pour la Navigation Aerienne (SFENA) in 1979 as head of personnel. He was later appointed Vice-President, Human Resources and Secretary of the Board of Directors. In 1988, he returned to the pharmaceuticals industry as Vice-President, Human Resources and Communication at the French subsidiary of Ciba-Geigy, where he was a member of the Executive Board and of the General Management Committee. He has been Vice-President, Group Human Resources at Schneider Electric since 1996.

He is a senior lecturer at the University of Paris II (Pantheon-Assas) and associate professor at the interdisciplinary human resources training center (CIFFOP). In March 2000, he became Chairman of France's national adult education association, AFPA.

Chris C. Richardson

Date of birth: August 8, 1944.

Iowa State University, Bachelor of Science; University of Missouri, MBA Graduate Work.

He began his career with Square D Company in 1971 and held various supervisory and management positions. He was promoted to President and Chief Operating Officer of Square D and Schneider North America Division in 1997.

Jean-Paul Saas

Date of birth: August 20, 1944

Ecole Superieure d'Electricite (SUPELEC), Harvard Business School.

He began his career at Sagem and then spent seven years with ITT before joining Schneider Electric in 1979.

Marcel Torrents

Date of birth: January 15, 1949

Technical University Degree, PST (Schneider Executive Training Program), Ecole Nationale Superieure d'Ingenieurs de Micromecanique, Besancon, Harvard (AMP 109). He joined Schneider after finishing his studies in 1970. Throughout his career, he has had a great deal of hands-on experience in manufacturing, technical matters and marketing. He was based in Mexico for several years, where he was in charge of Schneider's Mexican subsidiary and of the Central American Zone. He has frequently moved between functional and operational responsibilities at Schneider Electric.

Jean-Pascal Tricoire

Date of birth : May 11, 1963

Engineering Degree in Electronics and electrotechnics (Angers) and MBA - CESMA Business School - Lyon.

He began his career in 1985 working for Saint Gobain in Korea and Taiwan. He joined Schneider in 1986 as Project Manager. From 1989 to 1994, he served in Building Controls in Italy. From 1994 to 1999, he was Commercial Director for low voltage and automation in China. In 1999, he was then appointed Director for the South African area. From mid 2000 to end 2001, he head up the Schneider 2000+ company program and Schneider global account development.

Christian Wiest

Date of birth: December 30, 1949.

Business school (ICN in Nancy, France).

After a brief stint with an IT service provider, he joined Telemecanique in 1975 to promote the control accessories business in English-speaking European countries. In 1978, he was appointed manager of English-speaking countries in Africa, and in 1980, he moved to Greece to set up a marketing subsidiary and support its expansion. In 1988, he returned to France, where he served in the Marketing Division as distributor manager. He went abroad again in 1993 to create and develop Schneider Electric's Eastern and Central Europe/CIS zone. He succeeded Pierre Reveniaud as Executive Vice-President of Schneider Electric's European Division on January 1, 2000.