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Essilor - First-Half 2004 Sales Up 13.6% Excluding Currency Effect

Posted on: Wednesday, 21 July 2004, 06:00 CDT

CHARENTON-LE-PONT, France, July 21 /PRNewswire-FirstCall/ -- Essilor, the world leader in ophthalmic optics, today announced its provisional consolidated sales for the six months ended June 30, 2004:

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In EUR millions First-Half 2004 First-Half 2003 % Change

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Sales 1,133.1 1,031.2 9.9%

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Like-for-like growth was 7.6%.

Trends in the worldwide optical market were positive in the first half of the year. Demand for high-tech lenses continued to grow at a sustained pace, driving a significant improvement in the Essilor product mix.

Recently introduced products, such as the Crizal(R) Alize(TM) anti-reflective treatment, the Varilux(R) Ellipse(R) small-frame progressive lenses and the Varilux(R) Ipseo(TM) line of personalized progressive lenses, all reported strong sales in every country market, while the 1.74 ultra-high index Essilor lens was successfully launched in Europe.

Changes in the scope of consolidation, which added 6 points to reported sales growth, mostly relate to the companies acquired in 2003 and to Dunlaw Optical, Spectrum Optical and Tri Supreme, purchased in early 2004.

After taking into account the negative 3.8% currency effect, sales rose by a reported 9.9% in the first half.

Sales by region

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In EUR millions First-half First-half Like-for-like growth

2004 2003

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Europe 558.1 505.7 5.3%

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North America 463.3 429.5 8.8%

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Asia-Pacific 86.2 73.9 13.7%

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Latin America 25.5 22.1 19.0%

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Highlights by region were as follows:

- Europe enjoyed strong demand throughout the period despite the expected

decline in business in Germany (down 15%). Excluding Germany, sales

would have been up 7.4% like-for-like. In particular, France reported

very good results for the half, as did the United Kingdom and countries

in Southern and Eastern Europe.

- In the United States sales continued to expand at a fast pace.

- Sales remained robust in the Asia-Pacific region, with Japan returning

to growth.

- Latin America reported sustained growth, with an upsurge in Argentina.

Acquisition of Three New Prescription Laboratories

In the United States, Essilor of America, a subsidiary of Essilor International, has completed the acquisition of Select Optical and Opal-Lite, Inc. In Australia, Essilor has purchased a 50% interest in City Optical.

Select Optical, one of the largest independent laboratories in the state of Ohio, is based in Columbus where it employs 80 people and generates annual sales of $9.8 million. With $4.6 million in sales and 44 employees, Opal-Lite has for many years distributed Varilux(R) brand products in El Monte, near Los Angeles, California.

These acquisitions offer Essilor the opportunity to broaden its presence in two major urban areas, particularly in southern California, which is one of the largest optical markets in the United States.

Both of these laboratories will continue to be managed by their current executive teams.

In Australia, Essilor has acquired a 50% stake in City Optical, one of the country's top three independent laboratories. Based in Reversby, near Sydney, City Optical has 23 employees and sales of AUD 6 million (EUR3.6 million). With Essilor's support, City Optical will be able to offer eye care professionals a broader range of products with Essilor high-tech lenses as well as coatings, including Crizal(R) anti-reflective treatments.

City Optical will continue to operate independently under the leadership of its current chief executive.

Essilor International is the world leader in ophthalmic optical products, offering a wide range of lenses under the flagship Varilux(R), Crizal(R), Airwear(R) and Essilor(R) brands to correct myopia, hyperopia, presbyopia and astigmatism. Essilor operates worldwide through 18 production sites, 173 lens finishing laboratories and local distribution networks. The Essilor share trades on the Euronext Paris market (ISIN: FR 000012166; Reuters: ESSI.PA; Bloomberg: EF FP).

http://www.essilor.com/

Essilor

CONTACT: Investor Relations and Financial Communication, VeroniqueGillet, Phone: +33-(0)1-49-77-42-16

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