(21/10/2003) SCHNEIDER ELECTRIC : Third-Quarter 2003 SalesUp 0.3% On A Constant BasisTo 2.2 Billion euros

Business Continues To Improve - Sustained growth in Asia and Eastern Europe - Noticeable improvement in North America - Stabilization of the trend in Western Europe Rueil Malmaison, October 21, 2003 - At September 30, 2003, Schneider Electric cumulated sales totaled 6,447 million euros: on a constant structural and currency basis, sales were stable compared to the same period last year (-0.1%). Third-quarter 2003 sales slightly rose +0.3% from the year-earlier period on a constant structural and currency basis. They amounted to 2,211 million euros. The third-quarter performance confirmed the improvement seen since the beginning of the summer and showed a slight increase from the previous quarter, if seasonally adjusted. The breakdown by Operating Division was as follows:

	3rd Quarter	Change	Cumulated Sales as of	Change
In millions euros	2003	Q3 03 / Q3 02	Sept. 30, 2003	2003 / 2002
	Sales	(constant basis)		(constant basis)
Europe	1,104	-2.4%	3,365	-2.2%
North America	594	-0.6%	1,68	-3.3%
International	513	+7.9%	1,402	+9.9%
Total	2,211	+0.3%	6,447	-0.1%

At current structure and currencies, third-quarter 2003 sales were down -2.5% compared to the same quarter last year. This evolution is impacted by a negative currency effect of 132 million euros (-5.8%) stemming from the euro's appreciation. Changes in the scope of consolidation added 68 million euros (+3.0%), corresponding primarily to the consolidation of Digital Electronics since January 1st and of T.A.C since September 1st, 2003. In Europe, third-quarter 2003 sales declined -2.4% from the year-earlier period, reflecting no noticeable change in trend. Eastern Europe is enjoying strong sales growth and now represents nearly 10% of total European sales. The Group benefits from its solid operations in this region and fast-growing capital spending. Growth remained strong in Spain. The sales of the other European countries continued to feel the impact of a weak industrial investment, both for production equipment and buildings. Italy saw a more favorable trend in the third quarter, while France showed no signs of improvement due to poor market conditions: medium voltage projects, notably, are subject to strong competitive pressure. In North America, third-quarter 2003 sales edged back -0.6% from the year-earlier period but were up noticeably compared to the second quarter 2003. Business benefited from an improved economic environment, although market conditions still remain difficult overall. The residential market continues to enjoy firm demand. In the Rest of the World, third-quarter 2003 sales showed a sustained growth rising +7.9% year-on-year, despite a demanding basis of comparison. The trend is benefiting from a very favorable dynamic, with significant and sustained increase over the past two quarters. Schneider Electric's remarkable positions enable to fully leverage these regions' growth potential. China continued to record strong growth supported by a high level of capital spending. Sales in Japan also showed substantial gains thanks to the recovery in the industrial market, amplified by the positive integration of Digital Electronics. Southeast Asia and the Pacific region enjoyed significant growth. ******************* Henri Lachmann, Chairman and Chief Executive Officer of Schneider Electric, commented on the third-quarter performance as follows: ‘‘Schneider Electric's markets show signs of improvement in a still very mixed environment, with no tangible recovery at this stage. Economic conditions are still sluggish in Western Europe while our performance is encouraging in North America and remains remarkable in Asia and Eastern Europe. In this context, the Group expects full-year 2003 sales to improve slightly on a constant basis'. ******************* Schneider Electric will release its fourth-quarter sales on January 20, 2004 and present its annual financial results on February 20, 2004. Schneider Electric: Giving the best of the New Electric World to everyone, everywhere, at any time 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 energy, buildings, industry and infrastructure markets. Schneider Electric generated sales of E9.1 billion in 2002 in 130 countries. Investor Relations: Schneider Electric Alexandre Brunet Tel. +33 (0)1 41 29 70 71 / Fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear: 12197 Media Contact: Schneider Electric Véronique Moine Tel. +33 (0)1 41 29 70 76 / Fax +33 (0)1 41 29 71 95 Media Contact: DGM Michel Calzaroni Olivier Labesse Tel. +33 (0)1 40 70 11 89 / Fax +33 (0)1 40 70 90 46 (C) Companynews