On Wednesday, May 12, 2004, S&B Industrial Minerals S.A. announced the financial results for the fiscal year 2003. Although sales remained at last year?s levels, net consolidated profits (after tax and the deduction of minority shares) increased by 7.4% and reached 17,4 million euros (from 16.25 million euros in 2002), which is the highest historical net profit level for the S&B Group of Companies. This significantly higher rise in net profit is largely due to the actions the Company has taken over the last years to consolidate and streamline its organizational structure, leading, among others, to a decrease in its tax burden on a global scale.

Profits before taxes noted an increase of 2.0% (from 26.2 million euros in 2002 to 26.7 million euros in 2003) while the EBITDA margin (earnings before tax, interest charges and depreciation) amounted to 19.1% (against 19.6% in 2002). The Group?s consolidated turnover reached 289.6 euros million versus 291.3 million euros in 2002.

In the industrial minerals sector, which represents 75% of the Group?s turnover, profits before taxes noted an increase of 3.4% (from 21.4 million euros to 22.2 million euros in 2003) while the EBITDA margin for this activity remained stable at 23%. Sales amounted to 218.3 million euros, compared to 224.2 million euros last year, noting a decrease of 2.7%. Sales of bentonite and perlite increased despite the weak US dollar, but sales of bauxite were reduced, due to the weak US dollar and other market conditions, thus affecting the overall sales level of this sector.