Share Divestitures Address Canadian Competition Concerns in Acquisition of Blue Circle Shares by Lafarge

OTTAWA, June 8, 2000 — The Competition Bureau announced today that it had reached an agreement regarding the divestiture of shares that Lafarge S.A. (Lafarge) had acquired in Blue Circle Industries plc (Blue Circle). Lafarge and Blue Circle are competitors in markets for cement and other related construction materials in Ontario.

On February 10, 2000, Lafarge made an unsolicited offer to acquire all the shares of Blue Circle. During the course of its bid, Lafarge acquired just under 20% of Blue Circle's shares. At the same time, Lafarge entered into an option arrangement with Dresdner Bank AG to purchase Dresdner's 9.6% interest in Blue Circle.

On April 28th, the Bureau issued a press release indicating that Lafarge had agreed to divest Blue Circle assets in Canada in the event that its bid was successful. However, Lafarge's bid lapsed on May 3rd. Subsequently, Lafarge and the Bureau entered into negotiations to address the competition concerns stemming from Lafarge's acquisition of a significant interest in Blue Circle.

"We believe that this solution addresses the Competition Bureau's concerns while providing for an orderly divestiture" said Gaston Jorré, Senior Deputy Commissioner of the Competition Bureau.

Lafarge has agreed to immediately terminate its option agreement with Dresdner and to reduce its shareholdings in Blue Circle to less than 10% within a specified timeframe. In addition, Lafarge agreed to not participate on the Blue Circle Board of Directors. Certain limitations will also be placed on Lafarge's voting rights with respect to shares in excess of 10% by way of a trustee who will vote the shares.

The Competition Bureau is an independent law enforcement agency that is responsible for merger review and the lawful conduct of business in Canada, as defined by the
Competition Act.

For more information, please contact:

Julie Hébert
819-953-4257