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Press Release 23 April 2004 Results for the year 2003

• First full year’s results of Aliaxis as an independent company. • Sales of €1,612 million and operating income of €179 million (11.1%) despite difficult

trading environment in 2003. • Pressure on margins in North America, with resilient housing markets partially offset by

weaker trading in industrial and utilities sectors. • Low level of consumer demand in Germany affected sales in DIY sector. • Weakness of US dollar against Euro and Canadian dollar penalises export sales from

Europe and Canada. • Better than expected reduction in net financial debt, by €153 million (18%) to €720

million, thanks to strong operating cash flow and €54 million realised from sale of non-core activities.

• Proposed first dividend of €0.1333 gross per share (€0.10 net), representing 15% of net current profit of €0.89 per share.

The Board of Directors, at its meeting held on 21 April 2004, approved the consolidated accounts for the year 2003, which will be presented to the General Meeting of Shareholders on 26 May 2004.

INTRODUCTION This is the first full year results announcement by Aliaxis as an independent company. The impact of the demerger from the Etex Group, from which Aliaxis was created and which took place on 18 June 2003, was backdated to 1 January 2003, and the trading results presented herein therefore cover a full twelve month period ending on 31 December 2003. Trading comparisons with the previous year are not possible since the plastics activities of the Etex Group which are now part of Aliaxis constituted only a division at the Etex Group level in 2002. In addition, the Board of Aliaxis has decided to adopt accounting principles that differ significantly from those previously applied by the Etex Group. The main differences relate to the treatment of goodwill on acquisition, post-employment benefits, deferred taxes and provisions. Moreover, the Board has decided to implement International Financial Reporting Standards – International Accounting Standards (IFRS-IAS) from 2006. The revised principles introduced in 2003, which remain in line with Belgian GAAP, will significantly reduce the impact of the change to IFRS-IAS.

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COMMENTS Income Statement Turnover in 2003 reached €1,612 million, including sales of those businesses sold during the year up to the date of sale. Operating profit for the year was €179 million (11.1% of sales) after charging €4.8 million of reorganisation costs. Operating cash flow reached €247 million, representing 15.3% of sales. Market conditions were, in general, very challenging in 2003. In North America, although the housing and housing-related markets were stronger than for some years, the industrial and utilities markets served by the Group suffered from low levels of investment and pressure on margins in the USA. Trading conditions in our European markets were similarly mixed, with the housing and renovation sectors strong in the UK, Italy and Spain but static or weaker in other key markets such as France, Poland and Germany. Low consumer demand in Germany adversely affected sales in the previously resilient DIY sector. Industrial markets in Europe remained subdued and the utilities sector continued to be highly competitive. The Group's businesses in Australia and New Zealand performed strongly thanks to a robust building and construction sector. The financial result for the year was a net charge of €59 million, consisting of net interest charges of €53 million and other financial charges, mainly re-financing costs and realised and unrealised exchange differences, of €-6 million. Goodwill amortisation was €37 million, the goodwill relating mainly to the plastics activities acquired by the former Etex Group through the purchases of Etex France (1994), Marley (1999) and Glynwed Pipe Systems (2001). Extraordinary items were €-1.9 million and consisted mainly of costs of €2.5 million associated with business closures. The net impact on the results of the business disposals made during the year was negligible. The Group’s share of the results of associated companies was €0.5 million, and after deducting taxes of €37 million and third-party minority interests of €1.6 million, the Group share of net profit in 2003 was €43 million. The Group share of net current profit was €80 million (representing €0.89 per share) and the Group share of net current cash flow was €148 million (representing €1.63 per share).

Balance Sheet The opening consolidated balance sheet as at 1 January 2003 takes into account the combined effects of the demerger which took place on 18 June 2003 together with several minor residual transactions that took place between Aliaxis and the Etex Group after that date but which formed an integral part of the demerger exercise. Goodwill amounted to €562 million at the beginning of the period and reduced to €524 million at 31 December 2003, principally as a result of the amortisation charge. Tangible assets amounted to €505 million compared with €540 million at the beginning of the period. The reduction of €35 million was mainly due to the impact of new investment of €57 million, offset by depreciation during the period of €66 million, assets sold during the course of the year (€-14 million), and the impact of exchange rate movements (€-10 million). Financial assets at the end of the period were lower by €19 million than on 1 January 2003, reducing from €65 million to €46 million, which reflects the disposals of the shareholding in Milnes

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(Australia) and Nidaplast Honeycombs (France), as well as the first consolidation of Paling (Malaysia). Working capital reduced from €348 million on 1 January 2003 to €313 million at 31 December, in part due to the disposals made during the year. The capital and reserves of the Group increased from €508 million to €536 million as a result of the Group’s share of net profit for the year (€43 million), less the proposed dividend (€12 million) and the impact of exchange rate movements (€-3 million). Minority interests increased by €2 million to €10 million during the period, partly reflecting the consolidation for the first time of the Group’s 60% interest in Paling (Malaysia), together with net profits for the year, less dividends paid in 2003 and the negative impact of exchange rate movements. Net financial debt reduced by €153 million, from €873 million to €720 million, thanks to cash flow generation and to the sale of non-core activities which contributed €54 million.

PROSPECTS FOR 2004 Although the first quarter of 2004 has shown some improvement compared with the same period of 2003, we remain cautious in our outlook for the remainder of the current year. Trading prospects remain relatively favourable in Canada, but we expect the environment in the US housing sector to be less buoyant than in the recent past. A slow improvement is anticipated in Europe, although the trading climate in Germany is expected to remain difficult. Our efforts to reduce the Group’s debt through effective management of cash flow will continue in 2004, and we will seek further to enhance the Group’s operational efficiency by pursuing a range of initiatives at all levels.

ANALYSIS OF SALES

By industrial activity By geographical area

The Group’s auditors have approved the consolidated annual accounts without qualification and have confirmed that the financial information summarised in this press release is in accordance with those accounts.

Other 17%

Other Building Products

13%

Gravity Systems

37%

Pressure Systems

33%

North America

31%Europe56%

South America

1%

Oceania & Asia

9%

Africa3%

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SUMMARY CONSOLIDATED PROFIT AND LOSS ACCOUNT

� million

2003

Turnover 1,612Operating result 179

% of turnover 11.1%Financial result -59Goodwill amortisation -37Extraordinary result -2Income taxes -37Profit from equity interests 1Net profit,

attributable to : 45

■ Minority interests 2■ Group 43

Net current profit (Group share) 80Net current cash flow (Group share)

148

� per share (Group share)

Net current profit 0.89Net current cash flow 1.63

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SUMMARY CONSOLIDATED BALANCE SHEET

Contact:

Yves Mertens (Group Finance Director)

Don Bailey (Group Corporate Development Manager) Tel. 32-2-775 5050 – Fax. 32-2-775 5051 E-mail: aliaxis@aliaxis.com

� million

1 Jan 2003

31 Dec 2003

Intangible assets 14 12

Goodwill 562 524

Tangible Assets 540 505

Financial Assets 65 46

Total Fixed Assets 1,181 1,087

Non-Cash Working Capital 348 313

Total 1,529 1,400

Capital & Reserves (Group Share) 508 536

Minority Interests 8 10

Total Equity 516 546

Provisions and Deferred Taxation 140 134

Net Financial Debt 873 720

Total 1,529 1,400