Saint-Gobain: First-Half 2009: Amid a Sharp Slowdown in Markets, Acceleration and Extension of Action Plan Unveiled at the Beginning of the Year

Against the backdrop of an unprecedented economic crisis, the Group has
    resolutely implemented and extended its action plan.

    - Cost cutting program extended: EUR440m in cost savings over the first
      half; EUR1,100m over the full year (versus an initial target of EUR600
      million).

    - Priority given to sales prices: up 1.7% over the period.

    - Acquisition projects put on hold and capital expenditure significantly
      reduced: down EUR358m over the first half and down EUR700m over the
      full year (versus an initial target reduction of EUR500 million).

    - Free cash flow1 totaling EUR873m over 12 months, and operating working
      capital requirement (WCR) reduced by EUR924m over the 12 months to
      June 30.

    - Balance sheet strengthened: EUR2.4bn of net debt paid down over 12
      months and gearing ratio reduced to 66.5% of shareholders' equity.

    - Outlook for second-half 2009: barring a further deterioration in the
      economic environment, operating income and recurring net income should
      outperform first-half figures.

1. Excluding the tax impact of capital gains and losses on disposals, exceptional asset write-downs and material non-recurring provisions.

2. Excluding capital gains and losses, exceptional asset write-downs and material non-recurring provisions.