RNS Number:2346M
Lafarge
12 June 2003

         
Not for distribution in the United States, in Canada, in Australia and Japan

Euronext : LG, NYSE : LR Paris, June 12, 2003

          Lafarge to raise Euro1.28 billion capital via a rights issue

* The offering will give Lafarge the ability to invest gradually in small and
  medium sized value-creating opportunities and to accelerate balance sheet
  strengthening

* Lafarge is committed to strict financial discipline
  and will achieve its 2003 net debt reduction target of Euro1 billion,
  irrespective of the rights issue

Lafarge announces today a Euro1.28 billion rights issue. The rights issue is fully
underwritten by BNP Paribas and JP Morgan. The subscription period will start on
June 19 and end on July 2, with a ratio of 4 new shares for 17 existing shares
held. Shares created by shareholders exercising their option to receive stock in
lieu of a dividend will also benefit from preferential subscription rights. The
subscription price is Euro41 per new share. Preferential subscription rights will
be quoted as of June 19.

The funds raised will provide the Group with added flexibility to seize small to
medium sized development opportunities gradually and to strengthen its balance
sheet.

With its strict financial discipline and without taking into account the
proceeds of the rights issue, the Group will achieve its 2003 net debt reduction
target of Euro1 billion (excluding foreign exchange variations) despite a continued
uncertain economic environment. This target will be met through cash flow
generation, operational performance improvement, disciplined capital expenditure
of Euro1.2 to Euro1.3 billion and asset disposals of Euro400 to Euro600 million.

Profitable growth: The capital increase will enhance Lafarge's ability to invest
in value-creating opportunities through acquisitions or capacity increases.
These include small to medium sized projects, primarily in Cement worldwide and
in Aggregates in Europe and North America.

Financial strength and flexibility: The capital increase will enable Lafarge to
accelerate the strengthening of its balance sheet. Furthermore the provided
additional financial flexibility will allow Lafarge to optimize the timing of
asset disposals.

Commenting on the announcement, Bernard Kasriel, Chief Executive Officer, said:
"The capital increase will provide Lafarge with added flexibility to invest in
value creating opportunities and further strengthen our balance sheet to shape
the business for the future."

The prospectus, which received the visa no 03563 on June 11 from the Commission
des Operations de Bourse ("COB"), is available on the COB's website www.cob.fr
and, upon request and free of charge, from Lafarge, BNP Paribas and J.P Morgan.
It is also available on the Lafarge website www.lafarge.com.

Lafarge is the world leader in building materials, and employs 77,000 people in
75 countries. The Group holds top-ranking positions in all four of its
Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted
sales of Euro14.6 billion in 2002. More information is available on
www.lafarge.com.

PRESS CONTACT:                              INVESTOR RELATIONS :

Philippe Hardouin 33-1 44 34 12 68          James Palmer : 33-1 44 34 11 26
philippe.hardouin@lafarge.com               james.palmer@lafarge.com 

Rurik Ingram 44-20-7404 5959                Daniele Daouphars : 33-1 44 34 11 51
Cell phone : 44-79-7498-2588                daniele.daouphars@lafarge.com
ringram@brunswickgroup.com


An interview with Bernard Kasriel, Chief Executive Officer, will be available in
video, audio and text from 7.30am CET on www.lafarge.com and www.cantos.com

Analysts Conference Call

Following the release of this announcement, a conference call will be held on
June 12th, 2003 at 9.30am CET, in English (8:30am GMT time)

The speakers will be:

Bernard Kasriel - CEO

Jean-Jacques Gauthier - Chief Financial Officer

James Palmer - Vice-President Investor Relations

Daniele Daouphars - Investor Relations

If you wish to participate in the conference call, please dial:

From France:+33 (0)1 55 69 80 06

From the UK : +44 20 8515 2328

Toll free number for the UK: +800 279 2280

Conference call name: "Lafarge"

This conference call will not be accessible by persons in USA, in Canada, in
Australia and Japan. The documents for the analyst presentation are available on
Lafarge web site www.lafarge.com

This document is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
with the United States Securities Exchange Commission or an exemption from
registration. Any public offering of the company's securities to be made in the
United States will be made by means of a prospectus that may be obtained from
the company and that will contain detailed information about the company and its
management as well as financial statements.

Statements made in this press release that are not historical facts, including
statements regarding its ability to achieve its debt reduction target, are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions ("Factors"), which are difficult to predict. Some of the Factors
that could cause actual results to differ materially from those expressed in the
forward-looking statements include, but are not limited to: the cyclical nature
of the Company's business; national and regional economic conditions in the
countries in which the Group does business; currency fluctuations; seasonal
nature of the Company's operations; levels of construction spending in major
markets; supply/demand structure of the industry; competition from new or
existing competitors; unfavorable weather conditions during peak construction
periods; changes in and implementation of environmental and other governmental
regulations; our ability to successfully identify, complete and efficiently
integrate acquisitions; our ability to successfully penetrate new markets; and
other Factors disclosed in the Company's public filings with the French
Commission des Operations de Bourse and the US Securities and Exchange
Commission including its Reference Document COB number D03-0375 as updated on
June 5, 2003 and annual report on Form 20-F. In general, the Company is subject
to the risks and uncertainties of the construction industry and of doing
business throughout the world. The forward-looking statements are made as of
this date and the Company undertakes no obligation to update them, whether as a
result of new information, future events or otherwise.

The prospectus, together with a UK supplement containing certain additional
information relevant only to shareholders in the United Kingdom will be used as
a prospectus for a public offering of new shares with preferential subscription
rights in the UK and will be submitted for mutual recognition by the United
Kingdom Listing Authority ("UKLA") pursuant to, and in accordance with, the
provisions for mutual recognition set out in European Directive no. 89/298/EEC,
as a prospectus for the purposes of the UKLA's Listing Rules and Part VI of the
Financial Services and Markets Act 2000. The contents of this document, which
have been prepared by and are the sole responsibility of Lafarge, have been
approved by BNP Paribas and J.P. Morgan Securities Limited. BNP Paribas is
regulated in the conduct of its designated investment business in the United
Kingdom by the Financial Services Authority and J.P. Morgan Securities Limited
is regulated by the Financial Services Authority, solely for the purposes of
Section 21(2)(b) of the Financial Services and Markets Act 2000. BNP Paribas and
J.P. Morgan Securities Limited are acting for Lafarge in connection with the
Offering and no-one else and will not be responsible to anyone other than
Lafarge for providing the protections offered to clients of BNP Paribas and J.P.
Morgan Securities Limited nor for providing, advice in relation to the Offering.
BNP Paribas can be contacted at 10 Harewood Avenue, London NW1 6AA, for the
attention of John Mason (Compliance Officer) telephone number: 00 44 (0) 207 595
33 62. J.P. Morgan Securities Limited can be contacted at 10 Aldermanbury,
London, EC2V 7RF, for the attention of Rajesh Choudry (Compliance Officer)
(telephone number: 00 44 (0) 207 325 9329).

Stabilisation/FSA

                       This information is provided by RNS
              The company news service from the London Stock Exchange


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