2001 First Quarter Sales

Strong increase in first quarter 2001 sales: +23% or ? 6.8 billion Sustained organic growth in France and Europe Important contribution from acquisitions   2001 and 2000 sales are calculated based on Commission Bancaire instruction 2000-11 in respect of interest invoiced by the Credit and Financial Services Division whereby reserves for unpaid interest are deducted from sales. Published sales for the three months ended March 31, 2000 have been adjusted to reflect this change. Internet sales are now reported by the companies concerned. Sales for first quarter 2001 amounted to ? 6,764 million, a 23% increase compared with the first quarter months of 2000. This strong growth results from sustained organic growth in France and Europe and a substantial contribution from 2000 acquisitions. Sustained organic growth in France and Europe On a comparable structure and exchange rate basis, Group sales growth aggregated 5.8%, with the Retail Division up 6.3%, an 11.1% rise for the Credit and Financial Services Division, 3.4% for the Business-to-Business division and a 13.4% increase for the Luxury Division. These strong performances were obtained against a backdrop of a decline in activity in North America, after the strong growth on a comparable basis recorded in first quarter sales 2000. Excluding North America, organic growth expanded 8.2%, reflecting strong sales momentum for the Group in geographic areas where Pinault-Printemps-Redoute generates 81% of sales. Substantial contribution from acquisitions The difference between published sales and comparable sales stems primarily from the ? 809.2 million positive impact of changes in consolidation structure related to the 2000 acquisitions. These were Westburne for Rexel and the European operations of Boise Cascade for Guilbert in the Business-to-Business Division, YSL Beauté, Yves Saint Laurent and Boucheron in the Luxury Division, while Conforama acquired Emmezeta in the Retail Division. Movements in exchange rates had a ? 87.3 million positive impact on first quarter 2001 sales. Internet activities Total Internet sales amounted to ?84.4 million. Internet sales were 2.7 times higher than in first quarter 2000. RETAIL DIVISION Retail division sales expanded by 14%. On a comparable structure and exchange rate basis, growth came to 6.3% underpinned by new gains in market share and store openings in France and other European countries. Sales for Printemps were up 11.2% in real terms and on a comparable basis, buoyed by sustained organic growth of 8.1% at the Haussmann store and throughout the entire chain. The consolidation of Citadium, the Group's new specialist sports articles store also increased sales. The company did benefit from a good sales season and the success of the first days of the "Huit jours en or" promotional campaign. The 35.8% sales growth for Conforama includes the impact of sales by household goods distributor Emmezeta, consolidated for the first time this quarter and to a lesser extent, the Gestenhaber franchisee and Nuitéa. On a comparable structure and exchange rates basis, sales grew 10.4%, reflecting further gains in market share for furnishings and white goods in France. Sales for Redcats were up 0.9% in real terms and down 0.8% on a comparable basis, due to a sales decline in the United States. The decline was 7.0% on a comparable basis for the quarter, after a +16.7% growth recorded in the first quarter 2001. In Europe, sales advanced 1.7% despite the impact of fewer store-opening days and the negative impact of shifting promotional offer periods in France. Redcats Nordic and Redoute International sharply increased sales in the first quarter. The Internet business now represents 3.9% of total sales. Fnac recorded sales growth of 21% in real terms and 13.1% on a comparable structure and exchange rate basis. Sales for computers in France grew 7.9% on the back of a very strong increase in 2000, while books and music were up more than 10%. International sales were up 27.3% as a result of recent openings and as new stores gained ground. Internet sales represented 0.9% of Fnac's sales. The 55.2% increase in sales for Concept boutiques stemmed from strong 41.8% growth for Orcanta-Lingerie and a 116.7% surge for Made in Sport . CREDIT AND FINANCIAL SERVICES DIVISION Sales were up 11.1% on a comparable basis. Outstanding loans and new lending in the consumer credit business was up +8.1% on a comparable basis. BUSINESS-TO-BUSINESS DIVISION The 25.9% growth in sales for the Business-to-Business division included the impact of acquisitions carried out by Rexel, Guilbert and Pinault Bois & Matériaux. Sales up 3.4% on a comparable structure and exchange rate basis were lifted by sound performances from Guilbert and CFAO. Sales for Rexel , up 25.7% reflected the deferred impact of 2000 acquisitions, mainly Westburne. On a comparable structure, days and exchange rate basis, sales grew 2.6% (1.1% based on actual number of selling days), after a 6.9% growth in first quarter 2000. Growth was primarily fuelled by France, other European countries and to a lesser extent, Latin America. Sales for Pinault Bois & Matériau x grew 13.2% in real terms. This increase reflected the impact of a dynamic acquisitions policy in 2000 and 2001 (Mallet Matériaux Group and Mullet), as well as a 2.1% growth on a comparable selling days basis or 0.5% on actual number of trading days, despite the unfavorable impact of the 1999 storm in France (8.3% comparable growth in first quarter sales 2000). Distribution increased sales by 1.7% on a comparable trading days basis and the Import Distribution business increased 14.9%. The 41.7% period-on-period sales growth for Guilbert reflected 2000 acquisitions of Hutter and above all Boise Cascade Office Products European operations. On a comparable structure and exchange rate basis, sales grew 8.3%. Office supplies were up 5.6% helped by a return to growth in the United Kingdom, up 11% and an 8.3% rise due to brisk business in Germany. New office supply markets turned in double-digit growth. Distance selling recorded comparable growth of 17.7%, driven by an excellent performance from JPG France up 22.8%. Internet sales accounted for 5.3% of total sales. CFAO sales expanded 20.7%, as a result of sustained organic growth of 14.2%, related to an improved economic and political environment in some African countries. The capital goods distribution business recorded growth of 15.6% in Africa. Pharmaceuticals achieved steady 10.1% growth, with continued sound performances from French overseas territories and a confirmed upturn in Africa. LUXURY DIVISION Sales for the Luxury Division corresponded to sales for Gucci from November 2000 to January 2001. Sales growth of 65% reflected the impact of recent acquisitions (YSL Beauté, Yves Saint Laurent, Boucheron and to a lesser extent Bedat & Co.), as well as sustained organic growth, 13.4%, spearheaded primarily by the Gucci brand. Sales of leather goods and ready-to-wear in the Gucci division were up 43.7% and 30.4% respectively. Sales for the Gucci division were particularly dynamic: 31.2% ahead in Europe, 40% higher in Japan and up 21.8% in other Asian countries. Contact Presse : Laetitia Olivier + 33 (0)1 44 90 63 80 Analysts and Investors : David Newhouse + 33 1 44 90 63 23