Information

Paris, March 7 2005

Press release

Air Liquide reinforces its position in Electronics in South Korea

South Korea supports a fast growing wafer fab activity for the electronics industry that is driven by several worldwide leaders in the semiconductors market. With massive investment and highly qualified employees, these wafer fabs produce ready - to - integrate chips for many international groups which manufacture electronic appliances including mobile phones, personal computers, organizers and flat panels.

Manufacturing "chips" requires a continuous flow of ultra pure nitrogen to prevent oxidation of super sensitive components during the production process.

Air Liquide has singed a 10-year contract to supply DongbuAnam Semiconductor Inc at its Bucheon facility 30 km from Seoul. This foundry was using an on-site nitrogen generator designed and installed by Air Liquide in January 1998, which they were operating. With this new contract, Air Liquide will operate and expand the nitrogen generator in order to produce about 5,000 Nm3/Hr or high purity nitrogen to meet the customer's present and future requirements. Air Liquide will also supply all the liquid gases used in this plant such as oxygen, argon as well as some electronics specialty gases.

"This is an excellent opportunity for Air Liquide to strengthen its presence in Korea, building on its know-how and proximity" said Christofe Fontaine, Vice President Electronics of Air Liquide. "Korea is becoming a centre of excellence in the semiconductor market and we are ready to accompany its increasing needs for gases, equipment and related services as we do for leading electronics companies worldwide."

With 2,200 employees, Air Liquide Electronics activities recorded sales of 884 million euros in 2004 (10,7% of the group's gas and services sales). Air Liquide supplies ultra-pure gases, specialty gases, related equipment and customized services. To enhance its proximity to the rising semiconductor market in Asia, the Group has relocated its Electronics management to Tokyo.

In Korea, Air Liquide and its affiliates serve customers in the Electronics, Industrial Customers and Large Industries segments with total sales in excess of 200 million euros.

DongbuAnam Semiconductor Inc was founded in 1997 in Korea under the name of Dongbu Electronics Co. Ltd. for the foundry business. In 2000, privately held Dongbu Electronics embarked on an aggressive growth strategy that let to the Dongbu Group, its major investor, becoming the largest single shareholder in Anam Semiconductor, a Korean foundry established in 1996. This investment paved the way for a synergistic union of the two foundries, leading to the formation of DongbuAnam Semiconductor Inc. in 2003. DongbyAnam Semiconductor Inc. ranks today as one of the promising pure-play wafer foundries with two world-class wafer fabrication facilities (Sangwoori-Fab and Buncheon-Fab).

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Present in more than 70 countries, Air Liquide supplies industrial and medical gases and related services. The Group offers innovative solutions based on constantly evolving technologies. These solutions, which reflect Air Liquide's commitment to sustainable development, help protect lives and enable our customers to manufacture many indispensable everyday products. Founded in 1902, Air Liquide now has more than 35.000 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 2004 totaled, 9,376 million Euros, of which sales outside France accounted for almost 80%. Air Liquide is listed on the Paris stock exchange and is a component of the CAC 40 and EuroStoxx 50 indices (ISIN code FR 0000120073).