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    New Executive Committee to pursue growth policy

    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 33% 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 18% 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-François Pilliard.
    These appointments came into effect on November 5, 2001 and will be implemented gradually in order to be fully operational by December 1.