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    Schneider Electric France Presents The Implementation of its Industrial Strategy

    Rueil-Malmaison, France - June 3, 2005 – Schneider Electric France senior management met today with the company's Central Works Committee to present the main objectives of its industrial strategy and the related change project.

    As part of the new2 program's operational excellence process, the project addresses the need to locate production facilities as close as possible to markets, as a result of:
    - Structural changes in the Schneider Electric worldwide revenue stream, with the fast growth in emerging markets and the rise of new needs in mature markets.
    - The need to tailor products to customer and market needs.
    It is being supported by Schneider Electric France's commitment to strengthening and sustaining its manufacturing expertise, skills and capabilities in France, where 9,200 employees work on more than 30 sites.

    The project is intended to optimize the French manufacturing base and to develop the qualifications and skills of its production teams. It will help to enhance the mission of the plants, while enabling the consolidation of a number of facilities (Angoulême, Pacy-sur-Eure and Moirans). 450 employees will be retrained and/or transferred to other sites to help adapt their career paths and 280 employees will reach retirement age over the next three years.

    Fully aware of the personal and professional issues at stake, Schneider Electric France senior management is committed to carrying out this project with the greatest respect for individuals by:
    - Creating an ambitious training /requalification program for the employees concerned.
    - Taking advantage of the fact that the plants are located close to one another to facilitate transfers.
    - Maintaining an ongoing dialogue with the unions.

    Lastly, Schneider Electric France senior management has proposed an action plan to employee representatives, to make progress on the support programs as part of a jobs and skills planning process.

    All of these measures will be undertaken in compliance with the procedures for informing and consulting employee representatives.

    About Schneider Electric
    Schneider Electric is the world's power and control specialist. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric anticipates and satisfies its customers' requirements in the residential, building, industry and energy and infrastructure markets. With 85,000 employees and operations in 130 countries, Schneider Electric generated sales of €10.4 billion in 2004 through 13,000 distributor outlets

    Schneider Electric:
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    to everyone, everywhere, at any time

    Financial Communication :
    Schneider Electric
    Alexandre Brunet
    Media Contact
    Schneider Electric
    Véronique Moine
    Media Contact
    Michel Calzaroni
    Olivier Labesse
    Tél. +33 (0)1 41 29 70 71
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    Schneider Electric France
    Gery Druon
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