OURPRINCIPLESOFACTIONOURPRINCIPLESOFORGANIZATIONOURPOLICIES

Code of business conduct

Contents01Introduction02Compliance with laws and regulations05Preventing conflicts of interest06Attention to people and the environment08Protection of the Groups assets09Fairness in financial reporting10Importance of internal controls/internal audit11Implementation of procedures and violations

Our Principlesof Action

Our Principlesof Organization

Our Policies> Group Policies> Code of business conduct

October 2004

INTRODUCTION1

Courage, integrity, commitment, consideration for others

and an overriding concern for the Groups interests are the foundations

of our management philosophy. Every employee is expected

to demonstrate commitment to these values. This is our way of building

trust at all levels of our organization. Extract of the Principles of Action.

nfurtheranceofthePrinciplesofAction,thiscodeofbusinessconduct is designed to set certainstandards of conduct for all employeesand officers of the Lafarge group aswellasallpersonsthatprovidegoodsandservicesonbehalfofthe Group or its various entities suchasrepresentatives,agentsandcon-sultants.Theserulesdonotcovereveryissuethatmayarisebutsetoutbasicprinciplestoguideallemployeesandofficersincarryingout their business duties. Theserulesaretobeadapted,asthecasemaybe,dependingonlocal laws and regulations or shouldlocalcodesofbusinessconductapply. However, if a local custom orpolicyconflictswiththeCode,theemployeeorofficermustcomplywiththeCode.IfanyaspectoftheCodeisunclearorisnotpreciseenough,theemployeeshouldaskher/hissupervisorastohowtohandle the situation. Finally, becausecertainprinciplessetoutintheCodearederivedfromlegalandregulatoryduties,failuretocomplywithcertainaspectsoftheCodecouldsubjecttheoffendertocivilor even criminal liability. All employees and officers, whatevertheirposition,mustcomply,withinthelimitsoftheirduties,withtherules set forth below, that form partoftheirnormaldutiesofloyaltyand good faith, and ensure that theyare also complied with by all personsintheirteamsorundertheirsupervision.

2COMPLIANCEWITHLAWSANDREGULATIONS

ompliance with the law is thebasic principle underlying theGroups policies. All employeesand officers are expected to respectandcomplywithlawsandregula-tions that apply to her/him.As a result of its presence in a largenumber of countries throughout theworld,theGroupsoperationsaresubjecttothelawsandregulationsof many countries and supranationalorganizationssuchastheEuropeanUnion.AsLafargeisacorporationorganized in France and listed bothinFranceandintheUnitedStates,the laws of France and/or the United States may at times extend to all theGroupsentitiesinadditiontolawsthat would apply locally. Furthermore,the Group has taken certain commit-mentsataninternationallevelinrelationtocomplianceandpromo-tion of guidelines such as the protec-tionofhumanrights,freedomofassociation,eliminationofforcedlabor, abolition of child labor, elimin-ation of discrimination in the field oflabor and sustainable development.Although not all employees and offi-cers are expected to be specialized inthevariouslawsandregulationsthat apply to her/his business activi-ties, it is important to know enoughtodeterminewhentoseekadvicefrom colleagues or third parties. Beyond compliance with the relevantlawsandregulations,allemployeesandofficersareexpectedtocarryouttheirdutieswithintegrityandmeetthehigheststandardsofpro-fessionalconductintheirdealingswiththeGroupsclients,suppliers,governmentalbodiesorpartners.Employeesandofficersshouldensurethatallpartnersandsup-pliersaretreatedwithfairness,withselectioncriteriabeingobjectiveandtransparentsuchasquality,costordeliverydeadlineswith respect to a supplier.

COMPLIANCEWITHLAWSANDREGULATIONS3

Compliancewith competitionand trade lawsCompetitionisnecessarytoachieveeconomicefficiencyandconstitutesas such a key element of free enter-prisewhichtheGroupbelievesin.Mostcountrieshaveimplementedcompetition laws that prohibit unfairpracticessuchascollusion,unfairmarketdomination,dumpingLafargehasdefinedaGrouppolicyon competition and trade issues thatcomplieswiththerelevantregula-tions applicable in the various coun-trieswhereitoperates.Thesepoli-cies summarize the competition andtraderulesthatexistinthemainpartsoftheworld,setsouttheGroupsresultingprinciplesandstrategies and includes training pro-grams and reviews as to whether theactivities carried out by Group enti-ties are in compliance with the laws.A summary of the main competitionandtraderulesisavailableonthewww.lafarge.com website. In case of breach, legal action couldbetakenagainsttherelevantemployees and officers in accordancewith applicable laws and regulations.Allemployeesandofficersinvolvedin competition and trade issues mustinform themselves as to the Groupspoliciesoncompetitionandtradelaws and abide by such policies dur-ingher/hisbusinessactivities.Eachemployeeandofficermustrefertotherelevantsupervisorsanyinquiriesrelatingtotheimplemen-tationofsuchpoliciesinindividualsituationsandinformpromptlytheGroupLegalDepartmentshouldtheyreceiveanynoticeorothercommunication from an authority incharge of competition laws issues ina given country or under a suprana-tional organization. Compliancewith laws on corruptionItisprohibitedforanypersontooffer,promiseorgiveanyunduepecuniaryorotheradvantage,whetherdirectlyorthroughinter-mediaries, to a public and/or privateofficial,inordertoobtainafavor-abletreatmentortoinfluencetheoutcomeofanegotiationinwhichtheGroupisinterested.Doingsoisillegalinmostcountriesandwouldbeviolatingtheinternationalconvention on combating bribery offoreignpublicofficialsinforceinmanycountries.Anemployeeorofficerwhocommitsbriberywhileon duty could be subject to criminalpenalties and termination of her/hisemployment.

4COMPLIANCEWITHLAWSANDREGULATIONS

Compliance with lawson insider tradingAnynon-publicinformationwhichmight influence the market price ofLafargesharesshouldbekeptinstrictconfidenceuntilpubliclyreleasedbyauthorizedpersonsinaccordancewithapplicablestockexchange regulations. Any employeeorofficerwhohasaccesstonon-publicinformationwhichcouldinfluence the price of Lafarge shares mustkeepsuchinformationconfi-dential and refrain from carrying outanytransactioninsuchshareswhether for her/his own account orfor the account of a third person. Tousenon-publicinformationforper-sonalfinancialbenefitortotipotherswhomightmakeaninvest-mentdecisiononthebasisofthisinformationisnotonlycontrarytothe Groups rules of conduct but alsoillegal.Rulesoninsidertradingextendtoalltransactionsinsharesor other securities of Group compa-niesthatarelistedonastockexchange,subjecttoanyspecificrules that may be applicable on suchstockexchangesorpublishedbysuch companies. AspartoftheGroupspolicyoninsider trading, directors, employeesand officers who as a result of theirduties may have access to privilegedinformationarerequiredtosignaspecific undertaking to comply withthe regulations in this respect apply-ing to the Group entities.

PREVENTINGCONFLICTSOFINTEREST5

Relationshipswith a competitor, clientor supplierAconflictofinterestexistswhenapersons private interest is in conflictwith the interests of the Company inagivenprofessionalengagement.Conflictsofinterestarisewhenanemployee, an officer or one of theirfamily members has a business rela-tionship with a competitor, client orsupplier of the Group in the contextofthenegotiationorperformanceofanagreementorincarryingoutan assignment for a Group entity. Toreceiveadvances,loans,guaranteesorservicesinordertoinfluenceadecisiontobetakenbytheGroupwouldalsoconstituteaconflictofinterest, as well as for an employeeor officer to work simultaneously for a competitor, client or supplier or toholdsignificantinterestsinsuchcompanies. Each employee and offi-cer must prevent conflicts of interestsituationsbyavoidingpermanentfinancial interest with a competitor,client or supplier of the Group out-side of its professional activities.Asconflictsofinterestarenotalwaysclear-cut,eachemployeeorofficer should consult with the ChiefLegalCounselofher/hisBusinessUnit, Division or at Corporate level incase of doubt in a given situation.

Payments, giftsand benefitsNogift,paymentorotherbenefitshouldbereceivedbyanemployeeandanofficerfromacompetitor,clientorsupplieroftheGroup.However,toreceivegiftsthatarenot excessive in value, do not consti-tutecashgifts,areconsistentwithcustomary business practices and donotviolateanylawsorregulationsis permitted. Political involvementTheGrouprespectsthefactthatitsemployeesandofficers,intheircapacityascitizens,participateormay wish to participate in communityactivities.AllrelevantemployeesandofficersshouldhoweveravoidtomorallyorfinanciallycommittheGroupintheseactivities.Furthermore, an employee or officerwhohappenstobeinvolvedindecisionstobetakenbyaState,agovernmentalagencyorapublicbody must refrain from taking part inadecisionofthatbodythataffectstheGroup(suchasthegrantingofalicense,anauthorizationoraprocurement contract).

6ATTENTIONTOPEOPLEANDTHEENVIRONMENT

Health and safetyTo ensure the health and safety of itsemployeesandofficersisaGrouppriority.Allemployeesandofficersareentitledtoworkinasafeandhealthyenvironmentandareexpectedtoparticipateinsucheffortsbyactinginaresponsiblemanner.TheGroupsHeathandSafetypolicyappliestoallofitsemployees,officers,sub-contractorsandotherthirdpartyserviceproviders.Suchpolicyismanagedandmonitoredactivelysoastoimprove the safety and health condi-tionsofitsemployees,officerandsub-contractorsonacontinuingbasis.Eachemployeeandofficermustperformtheirdutiesconsis-tentlywiththeheathandsafetyrules applicable at her/his workplaceand participate in such training pro-grams as may be organized from timetotime.ThecompletetextoftheGroupsHealthandSafetypolicyisavailable on the site www.lafarge.com Preventingdiscriminatory actionsand harassmentThediversityofemployeesandcul-turesrepresentedwithintheGroupis a tremendous asset. As part of itsemployercommitments,theGroupis determined to offer its employeesandofficersequalopportunityintermsofrecognition,progressionand career path, irrespective of theirorigin or beliefs and does not toler-ate any discrimination or harassmentofanykind.Examplesincludederogatorycommentsbasedon racial, ethnic, gender characteristics,ageorreligion,ortoadoptanunwelcomeattitudewithasexualconnotation. Such acts are prohibitedwithintheGroup.ThefulltextoftheGroupsEmploymentpolicyisavailable on the site www.lafarge.com

ATTENTIONTOPEOPLEANDTHEENVIRONMENT7

EnvironmentAs part of its commitment in relationto sustainable development, Lafargehas, for a number of years, integrat-ed environmental aspects in its strat-egyandculture.TheGroupscommitmentsinthisrespectcoverthemitigationofclimatechange,theconservationofnature,amoreefficientuseofenergyandnaturalresources, the fact of minimizing theproductionofwaste,harmfulairemissions and water discharges, thepreservationofheritage,landscapeand biological diversity. The GroupsEnvironmentalPolicydefinesthe Groupscommitmentsregardingitsoperations,greenfieldsitedevelop-mentandmajormodificationproj-ects,resources,trainingandresearch,procurement,productstewardshipandstakeholderrela-tions.Everyemployeeandofficermust,withinthelimitsofher/hisduties,participateintheGroupsefforts and commitments by comply-ingwithapplicableregulationsandtheGroupsenvironmentalpolicies.Eachemployeeorofficermustreporttothepersonsresponsibleforthesematters,anycompliancefailuresorpossibleexposuresofwhichhebecomesaware.ThefulltextoftheGroupsEnvironmentalpolicyisavailableonthesitewww.lafarge.com

8PROTECTIONOFTHEGROUPSASSETS

Accuracy and protectionof informationAgoodmanagementoftheGrouprequires that reliable information beconveyed to authorized recipients soas to enable them to carry out objec-tiveanalysisandcontrols.Italsoimpliesthatsuchinformationbeprotected to the extent that it is toremain confidential.Confidential information includes allnon-publicstrategic,financialtech-nical or business information such asformulas, processes, industrial know-how,industrialorbusinessplans,financialandstrategicplans,finan-cial forecasts, business negotiations,marketing studies or client and sup-plierfiles,thedisclosureofwhichwouldbeharmfultotheGroup.Likewise,personalinformationregardingtheGroupsemployeesandofficers,clientsandsuppliers mustbehandledwithcaresoastopreventanyalterationorimproperdisclosureinaccordancewithappli-cable law. The obligation to preserveconfidential information also appliestoinformationreceivedfrompart-ners of the Group, it continues evenafter the employment ends.

Protection of the Groupsassets and resourcesEach employee and officer is respon-siblefortheproperuseoftheGroupsassetsandresourcesandtheirprotection.Theseincludeintellectualpropertysuchastradesecrets,patents,trademarksaswellas installations, equipments and theassets and financial resources of theGroup.Theseassetsandresourcesmustbeusedinaccordancewiththeirbusinessdestinationorwithinthe framework set, as the case maybe,bythevariousGroupentities.Theymaynotbeusedfornon-company business except where such use has been explicitly authorized byestablished procedures. Finally, eachemployeeandofficershouldendeavortoprotecttheGroupsassetsagainstanydeterioration,alteration, fraud, loss or theft.

FAIRNESSINFINANCIALREPORTING9

he integrity of financial report-ingiscrucialtoensurethepropermanagementoftheGroupaswellasfairandaccuratefinancialdisclosures.Records,booksand accounts as well as the financialstatements of the various entities ofthe Group must appropriately reflectthe transactions carried out by suchentities and must conform to appli-cable legal requirements, to applica-blegenerallyacceptedaccountingprinciples and to the Groups systemofinternalcontrols.Similarly,accountingandfinancialinforma-tionprovidedundertheGroupsreporting procedures must present afullandaccuratedisclosureofthefinancialsituationoftherelevantentities. Employees and officers who prepareaccountingrecordsmustactwithprecision,honestyandensurethateach entry is duly documented. Eachandeveryemployeeandofficerisexpectedtofollowtherulesandguidelines that apply to the bookinganddocumentationofinvoices,expenses and other items accountedforinthebooks.Unrecordedfundsorassetsshouldnotbemaintainedunlesspermittedbyapplicablelawor regulation, and reviewed by outsideauditors,inaccordancewithgener-allyacceptedaccountingprinciples.The rules and procedures applicableto accounting records are set out inthe Group financial policies. TheperiodicreportspublishedbyLafargeorotherGroupentitiesorreportspreparedforgovernmentalauthoritiesmustpresentafull,fair,accurate, timely and understandabledisclosureofthesituationoftheGroup or its various entities.

10IMPORTANCEOFINTERNALCONTROLS/INTERNALAUDIT

Internal control plays an essentialroleincompanies.ItisdesignedtoprovidereasonableassurancestoGroupmanagementasregardsthereliabilityoffinancialandbusinessinformation,theprotectionofassets,compliancewithregulationsand internal rules and procedures aswellastheefficiencyandrelevanceof the management and monitoringof Group operations. Responsibility,fortheestablish-ment,implementationandcontin-uedmanagementoftheinternalcontrols processes lies with the man-agementofeachBusinessUnitaswellasGroupmanagement.Theseprocessesincludethemaintenanceofanappropriatecontrolenviron-ment, the assessment of general andfinancialrisks,thecompletionofcontrols, the sharing of informationwithintheGroupandoutsidetheGroupaswellasthegeneralmoni-toring of the process.

The internal audit carries out anindependentevaluationofinternalcontrols processes and monitors theimplementation of its recommenda-tionsatthelevelofeachentityofthe Group. The principles and proced-ures governing internal controls andinternal audit are set out in the rele-vant Group policy and Audit Charter. AllGroupemployeesandofficersmustcooperatewiththepersons performing internal controlsorauditproceduresandproperlyrespondtopotentialinformationrequests.Furthermore,itisprohib-itedtohinderinanywaytheinternal control and audit processes,includingthosecarriedoutbyexternalauditors,ortohideanyinformation in this respect.

IMPLEMENTATIONOFPROCEDURESANDVIOLATIONS11

ImplementationTheimplementationoftherulesofbusinessconductisbasedonanorganizationandprocedurescom-biningflexibilityandconsistency.EachentityoftheGroupwillberesponsibleforimplementingtheserulestakingintoconsiderationanylocalconstraintsthatmaybeapplicableasaresultoflocallawsand regulations or the legal status ofitsemployees.Inaddition,trainingandperformanceprogramsareorganizedinrelationtothesetopicsatGrouplevel.TheGroupalso seeks to enter into partnershipswith clients, suppliers and industrialassociateswhosharethesameprinciples.

AlertnessEmployeesshouldseethattheserulesarecompliedwithbothbythemselvesandotheremployees.AdedicatedlineismadeavailabletoemployeesforthemtoreportobservedviolationsoftheCode.Whenthesituationrequiresso,the identityofanemployeewhohasreportedaviolationshallbekeptconfidential. No entity of the Groupwill be permitted to take retaliationmeasures against an employee whohasreportedaviolationingoodfaith.

Recommended approachin case of doubtIn certain situations, having to makeadecisionincompliancewiththeGroupsrulesofbusinessconductmay turn out to be difficult or com-plicated.Inthesesituations,itisimportanttohaveawaytoapproachthedifferentissuesatstake: Makesureyouhaveallthefacts:it is preferable to be fully informedof the situation before taking adecision. Askyourselfwhatpreciselyisexpected from you: this will enableyoutodistinguishbetweentheobjective and the means to achievetheobjectiveandconsiderthealternatives you have. Clarify your role and responsibility:inmostsituations,thereissharedresponsibility.Discusstheissueswith your colleagues. Discusstheproblemwithyoursupervisor:thisisthebasicguid-anceforallsituations.Rememberthat it is your supervisors responsi-bility to help solve problems. Seek help from Group resources: incaseyouareindoubtregardingtheimplementationofaspecificlaw or regulation, you can contacttheGroupslegalresources.Askyour supervisor which legal depart-mentyoushouldbecontactinginyoursituation.Consideringthenumerous laws and regulations towhichtheGroupissubject,youmayberedirectedtoanoutsidecounsel.

12IMPLEMENTATIONOFPROCEDURESANDVIOLATIONS

Violations of the CodeTheCodesetforthruleswhichallemployees and officers are requiredtofollow,withinthelimitsoftheirduties.MoreprecisedescriptionsofcertainprinciplessetforthinthisCodearecontainedinthepolicies,charters and other codes of conductprepared by the Group or its entitieson these topics. Employees and offi-cersareencouragedtoreadthesepolicies and are required to do so iftheyareaffectedbyanyofthesetopicsintheirduties.Foranyques-tions regarding the implementationoftherulesofbusinessconductionin specific situations, employees and officers are to contact their supervi-sorwhowillinformtheLegalDepartment.Incasethesituationmakes it difficult for an employee tocontacther/hissupervisor,thededi-cated line should be used. Failure tocomply with the rules set forth in theCodewillbeconsideredasmiscon-ductandsubjecttheemployeeorofficer to legal action in accordancewith applicable laws and regulations.