Air Liquide: Sustained Revenue Growth In 3rd Quarter 2008: +10.4% at EUR 3,247 Million

3rd quarter highlights

- New oxygen and nitrogen projects announced in India and Malaysia

- Middle-East: acquisition of the international liquid and gaseous
helium supplier Pure Helium, new unit start-ups

- New contracts: silane in Japan, oxygen in Poland, photovoltaics
in China, Greece and the Philippines

- Ultra low temperatures: success of the helium liquefaction
system for experimental reactor in South Korea

- Coordination of H2E program to build sustainable and competitive
hydrogen energy solutions in France and Europe
PARIS--(Business Wire)--
Regulatory News:

Air Liquide (Paris:AI):

-0-
*T
3rd quarter 2008 revenue published excluding comparable*
exchange
Group revenue EUR 3,247 m +10.4% +13.1% +7.6%
Gas & Services EUR 2,760 m +11.0% +14.2% +9.6%
----------------------------------------------------------------------
* on a comparable basis: excluding exchange rates, natural gas and
perimeter relating to the Lurgi acquisition where relevant
*T

In the 3rd quarter 2008, Group revenue amounted to EUR 3,247
million, up +10.4% as published (+13.1% at constant exchange rates).

Gas & Services revenue, up +9.6% on a comparable basis, reached
EUR 2,760 million in line with the high growth rates recorded since
the fourth quarter 2007. Industrial Merchant showed very good
performance, in particular in emerging economies. Strong demand for
hydrogen, unit start-ups and ramp-ups in Europe and Asia contributed
to the sustained growth in Large Industries, despite the impact of
hurricanes in the Gulf Coast. Healthcare is still solid in a context
of increased cost-containment in the national health systems. Revenue
in Electronics improved slightly, compared to those of the second
quarter 2008, buoyed by good progress in carrier gases.

The execution of the ALMA program is on track with the objectives.
The investment decisions and the portfolio of investment opportunities
are in line with the Group's ambitions. Air Liquide teams are
maintaining their efforts to reach the objectives of the efficiency
programs and to compensate for the increase in costs of recent months
through an adapted pricing policy. Lastly, the Group has secured its
short and medium term financing requirements and is continuing its
efforts in the management of its capital employed to ensure all of the
investments planned. According to the evolution of the environment,
Air Liquide will remain attentive to reallocating priorities within
ALMA if necessary.

Commenting on the 3rd quarter 2008, Benoît Potier, Chairman and
CEO of the Air Liquide group, stated:

"The growth in revenue of +10.4% in the third quarter illustrates
the momentum the Group has enjoyed for several quarters in its
development.

The uncertainties in the worldwide economy due to the financial
crisis reduce visibility for the year's end, even though our markets
remain well oriented.

In this context and excluding a significant slowdown of end-user
markets, we remain confident in the ability of Air Liquide to achieve
double-digit growth in 2008 net profit at constant exchange rates.
Furthermore, we confirm our investment decisions for 2008 at more than
EUR 2 billion.

Beyond, the ALMA objectives of competitive growth for 2007-2011
are maintained both in growth and in efficiency, thanks to the
resilience of the business model and the encouraging long-term outlook
offered by the five growth drivers identified for the years to come."

www.airliquide.com

Five growth drivers
Air Liquide's development is based on five long term growth drivers:
Energy, Environment, Emerging Economies, Health, High-Tech.

Upcoming events
Shareholders' Fair (Actionaria) in Paris
21 and 22 November 2008

2008 annual revenue and results:
16 February 2009

3rd Quarter 2008 Revenue

-0-
*T
Q3 Q3 08/07 08/07 08/07
in millions of euros 2007 2008 as excluding comparable*
published currency
----------------------------------------------------------------------
Total revenue 2 941 3 247 +10.4% +13.1% +7.6%
----------------------------------------------------------------------
of which Gas and
Services revenue 2 485 2 760 +11.1% +14.2% +9.6%
----------------------------------------------------------------------
* comparable: excluding impact of currency, natural gas and Lurgi
scope effect where relevant
*T

The third quarter saw strong growth in line with the development
of business in the preceding quarters. There was a significant
contribution from start-ups and generally sustained demand in our key
markets, namely steel, chemicals and refineries. Bulk demand has also
been strong thanks to the Group's presence in 75 countries, serving
all industries.

Alma, the Group's program to gain momentum in growth, efficiency
and productivity, continues to be on track.

Third quarter 2008 Group revenue reached 3 247 million euros, up
+10.4%. Excluding a negative currency impact of -2.7% (down from -4.1%
in the second quarter), revenue growth was +13.1%. Natural gas price
increases contributed +3.9% to growth and the last month of the Lurgi
perimeter effect represented a further +1.6%.

Third quarter 2008 Gas & Services revenue reached 2 760 million
euros, up +11.1%, and +9.6% on a comparable basis, excluding the
impact of currencies and natural gas. This rate of year on year growth
remained consistent with the growth experienced each quarter since Q4
2007 confirming the pricing actions and a solid level of activity,
supported by ramp-ups and start-ups of new units.

1.1 Gas and Services

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*T
Q3 08/07
Revenue
Q3 2008 as published comparable*
in millions of euros

-----------------------------------------------------------
Europe 1 505 +12.4% +9.6%
-----------------------------------------------------------
Americas 683 +10.2% +9.3%
-----------------------------------------------------------
Asia-Pacific 517 +7.9% +8.2%
-----------------------------------------------------------
Middle East and
Africa 55 +18.7% +30.2%
-----------------------------------------------------------
Gas and Services 2 760 +11.1% +9.6%
-----------------------------------------------------------
Industrial Merchant 1 154 +3.9% +6.9%
-----------------------------------------------------------
Large Industries 931 +26.7% +16.0%
-----------------------------------------------------------
Electronics 257 +5.2% +7.2%
-----------------------------------------------------------
Healthcare 419 +5.9% +7.0%
-----------------------------------------------------------
* comparable: excluding impact of currency and natural gas
*T

All growth figures in the text below are on a comparable basis,
excluding currency and natural gas impact.

In the third quarter 2008 Gas and Services revenue reached 2 760
million euros, up +9.6%, in line with the accelerated rate of growth
since Q4 2007 demonstrating solid momentum.

Industrial Merchant was up +6.9% with strong volume growth in
emerging markets, Australia and Canada and improved pricing in Europe
and North America, reflecting cost inflation. Large Industries growth
of +16.0% demonstrates the resilience of the base business, driven by
strong hydrogen demand globally, and the benefits of the start-ups and
ramp-ups in Europe and Asia. Electronics revenue grew by +7.2%, driven
by solid carrier gas activity, slower ESG growth and a good level of
E&I sales. Healthcare revenue growth (+7.0%) continues to be driven by
solid underlying demand, offset slightly by continued pricing pressure
from the social security systems.

Europe

Third quarter 2008 revenue was 1 505 million euros, up +9.6%. All
business lines contributed positively to this quarter's growth.

Industrial Merchant grew by +1.5%, or +4.2% excluding the impact
of the divestiture of the Metrology business at the end of 2007.
Pricing has improved throughout the region and growth remained strong
in Eastern European countries. Volumes were stable in Western Europe.
Photovoltaic and metal fabrication remain strong growth drivers in
Germany, as well as beverages particularly in Spain and UK during the
summer. A liquid plant started up this quarter in Poland to answer to
general growing demand.

Large Industries achieved +24.4% growth in the third quarter. This
performance reflects strong hydrogen and air gases demand and the new
Antwerp hydrogen plant ramp-up. The Rotterdam co-generation unit is
being commissioned progressively; electricity sales have already
started while the steam supply still has to be integrated into the
customer process. Underlying demand from oil refiners, steel
manufacturers and chemical clients remained solid during the quarter.

Healthcare grew by +8.2% driven by continued rapid growth in
hygiene. Homecare development was slightly slower than in previous
quarters as most of the 2007 acquisitions are now integrated into the
base. Pricing pressure for new hospital contracts has remained
intense.

Electronics revenue was down -5.4% due to weak ESG sales.

Americas

Revenue for the Americas was 683 million euros, up +9.3%,
accelerating from the previous quarter growth of +8.5%, demonstrating
solid demand despite the impact of the Ike and Gustav hurricanes.

Industrial Merchant progressed by +11.9%. In the United States,
pricing initiatives and good demand continued across all sectors,
especially in mining and metal fabrication, despite some interruption
of production in the Houston area due to the hurricanes. Sales growth
remained strong in South America. Activity in Canada picked up after
several weak quarters, with increased volumes and prices.

Large Industries revenue increased by +3.5%, despite significant
volume declines in oxygen and hydrogen in September due to the
two-week Gulf Coast hurricane stoppages. Despite this specific
short-term impact, refining demand for hydrogen has remained strong
during the quarter. However, chemical companies appear to be managing
stocks more tightly. Steel activity in Canada continues to be affected
by the strong Canadian dollar.

Electronics posted growth of +25.0% boosted by new carrier gas and
ESG start-ups and the contribution from the Scott and Edwards
acquisitions.

Healthcare performed well, up +10.4%, boosted by strong hospital
demand and pricing in the US and South America, while growth was
limited in Canada.

Asia-Pacific

Third quarter revenue in Asia-Pacific, at 517 million euros, was
up +8.2%, driven by buoyant growth in the region. In Japan, demand was
stable.

Industrial Merchant was up +8.2%. Volume growth remained strong
across the region, particularly in China, resulting from the new
capacities installed over the last year. In Japan, activity was down
slightly. Volumes and pricing showed strong growth in Australia.

Electronics sales increased by +6.9%, reflecting continued growth
in the carrier gases, stable ESG sales and a good level of equipment
and installation sales in Singapore and Taiwan. Client ramp-ups have
been slower than expected and some fab extension projects are now
being postponed. However, two new carrier gas contracts will begin in
the fourth quarter which should mitigate general slowdown in ESG
sales. Photovoltaic project activity remains dynamic.

Sustained growth in Large Industries of +16.1% was driven by
several ramp-ups and one start-up in China during the quarter. Demand
for oxygen by the Japanese steel-makers was also particularly strong
this quarter.

Sales dropped in Healthcare (-12.5%) because of record high
equipment sales at the same period last year in Japan.

Middle East and Africa

Middle East and Africa revenue reached 55 million euros, up +30.2%
as the result of the start-up of an ASU in Kuwait in July, a CO(2)
plant in Egypt in July, and the integration of the Pure Helium
acquisition. Also, two ASUs started up in April and July in Qatar,
through an equity-consolidated joint venture with Qatar Petroleum. A
new argon Industrial Merchant business has been launched in the region
this summer using the new air gas capacity and the recently acquired
Pure Helium distribution network. In South Africa, activity has
continued to be dynamic and a new liquid plant was started up in the
third quarter.

Operating performance

As a result of strong demand, pricing actions and efficiency, the
Group has maintained its Gas and Services third quarter OIR margin
excluding natural gas at the level of third quarter 2007, in a high
energy price environment.

1.2 Engineering & Construction

Third party sales in Engineering & Construction reached 254
million euros, with a one month scope effect from the Lurgi
acquisition (47 million euros). As a result, cumulated year to date
2008 sales for the engineering and construction reached 757 million
euros. Activity is good in both cryogenics and hydrogen, and Lurgi
teams are progressively being transferred onto Group projects. Order
intake is on track.

1.3 Other Activities

-0-
*T
Revenue Q3 2008 Q3 08/07 Q3 08/07
in millions of euros as published comparable*
----------------------------------------------------------------------
Welding 142 +6.0% +6.5%
----------------------------------------------------------------------
Chemicals 58 +5.4% +5.4%
----------------------------------------------------------------------
Diving & others 33 -6.3% -1.7%
----------------------------------------------------------------------
Other Activities 233 +3.9% +4.9%
----------------------------------------------------------------------
* comparable: excluding impact of currency
*T

Other Activities reached 233 million euros, up +4.9%.

Welding activity was up + 6.5 %, with consumables and automation
boosting growth. Equipment sales growth has been more moderate.

Chemicals growth recovered in the quarter due to renewed
availability of a Japanese supplier after several quarters of
shut-down.

2. Strategic moves in third quarter 2008

During the third quarter, the development of the Group has
continued in emerging markets with the announcement of several Air
Separation Unit investments in India, Malaysia and Poland. After the
medical successes in Germany and France, the LENOXe anesthetic is now
being tested in Italy.

The significant 7-year H2E R&D program, coordinated by Air
Liquide, aims at building sustainable and competitive hydrogen energy
solutions and has been approved by the European Commission. The
ambition of the project is to be ready for the emergence of hydrogen
in transport by 2015.

As part of South Korean KSTAR high tech project in the search for
new sources of energy, Air Liquide has supplied a helium liquefaction
(-269°C) and distribution system for a plasma generation project.

Over the last few months, the Group has signed several contracts
in the Photovoltaic market in China, Greece and Philippines for a
total investment of 20 million euros, complementing the Group's
already leading market position.

All these developments demonstrate that the trends in Energy,
Environment, Emerging markets, Health and High tech continue to drive
long term growth. They are also reflected in the portfolio of
investment opportunities which has remained at exceptionally high
levels of over four billion euros. Investments decisions continued to
increase in the third quarter, in line to achieve over two billion
euros for the full year. Capital expenditure is in line with the
investment decision trend with the normal 18 months delay, and is
expected to reach around 1.8 billion euros by the end of the year.
While two start-ups of major units have slipped into 2009, we are
still expecting to reach 20 for 2008 after 10 in 2007 and a further 25
for 2009.

3. Outlook

The long-term nature of the Group's investment cycle and customer
contracts, with their take-or-pay and indexation clauses, its strong
portfolio of projects, the diversity of the industries supplied across
75 countries and a solid balance sheet, continue to provide the base
of a resilient business model.

As to the current environment in 2008, customer demand has
remained well oriented, even if visibility for the rest of the year is
limited due to the uncertainties on the worldwide economy.

All necessary actions have been taken to adapt to this
environment. Short term financing requirements are secured, share
buy-backs have been curtailed and working capital is being closely
monitored. Pricing actions and efficiency measures are being
reinforced to be prepared for a softer environment. The healthy
balance sheet allows the Group to maintain its high investment levels.

In this context, excluding a significant slowdown of end-user
markets, Air Liquide remains confident in its ability to achieve
double digit growth in 2008 net profit at constant exchange rates.
Given the resilience of the Group's business model as well as the
opportunities provided by its five long term growth drivers, the Group
maintains its investment program and confirms its 2007 to 2011 ALMA
objectives.

APPENDIX (1)

CURRENCY, NATURAL GAS AND SCOPE IMPACT

In addition to the comparison of published figures, financial
information is given excluding currency translation effects, the
impact of fluctuations in natural gas price and significant scope
effect, when applicable.

Since industrial and medical gases are rarely exported, the impact
of currency fluctuations on revenue and results is limited to the
translation effects in euros of the financial statements of our
subsidiaries outside the Euro-zone. Fluctuations in natural gas prices
are generally passed on to our customers through indexed pricing
clauses.

Consolidated 3rd quarter 2008 revenue includes the following
elements:

-0-
*T
in millions of Natural Q3 08/07
Q3 08/07
euros Revenue as Currency gas Scope comparable*
published
----------------------------------------------------------------------
Group 3 247 +10.4% (80) 114 47 +7.6%
----------------------------------------------------------------------
Gas and
Services 2 760 +11.1% (78) 114 0 +9.6%
----------------------------------------------------------------------
* comparable: excluding impact of currency, natural gas and Lurgi
scope effect where relevant
*T

Group:

-- The currency effect during the quarter amounted to -80 million
euros, an impact of -2.7% on Group revenue, mainly due to the
appreciation of the euro against the US dollar.

-- Natural gas prices started to increase at the beginning of the
year progressively so that the impact of the pass-through
increases on revenue reached 114 million euros, or +3.9%.

-- The scope effect amounted to 47 million euros, due to the last
month of Lurgi, which was consolidated from August 2007.

Gas & Services:

-- The currency effect during the quarter amounted to -78 million
euros, an impact of -3.1% on G&S revenue, mainly due to the
appreciation of the euro against the US dollar.

-- Natural gas prices started to increase at the beginning of the
year progressively so that the impact of the pass-through
increases on revenue reached 114 million euros, or +4.6%.

APPENDIX (2)

REVENUE BY BUSINESS

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*T

------------------------ ---------------------- ----------------------
Q3 08/07 Total 9 08/07
in millions of euros as months as
----------- published ----------- published
2007 2008 2007 2008
------------------------ ---------------------- ----------------------
Gas and Services 2 485 2 760 +11.1% 7 397 8 103 +9.6%
------------------------ ---------------------- ----------------------
Industrial Merchant 1 112 1 154 +3.9% 3 310 3 424 +3.4%
Large Industries 734 931 +26.7% 2 226 2 688 +20.8%
Electronics 244 257 +5.2% 694 739 +6.6%
Healthcare 395 418 +5.9% 1 167 1 252 +7.3%
------------------------ ---------------------- ----------------------
Engineering/Construction 232 254 441 757
------------------------ ---------------------- ----------------------
Other Activities 224 233 732 757
------------------------ ---------------------- ----------------------
TOTAL 2 941 3 247 +10.4% 8 570 9 617 +12.2%
------------------------ ---------------------- ----------------------
*T

REVENUE BY REGION

-0-
*T
in millions of euros
------------------------ ----------- ---------- ----------- ----------
Q3 08/07 Total 9 08/07
Gas and Services as months as
----------- published ----------- published
2007 2008 2007 2008
------------------------ ---------------------- ----------------------
Europe 1 338 1 505 +12.4% 4 013 4 477 +11.6%
------------------------ ---------------------- ----------------------
Americas 620 683 +10.2% 1 889 1 993 +5.5%
------------------------ ---------------------- ----------------------
Asia - Pacific 480 517 +7.9% 1 361 1 491 +9.5%
------------------------ ---------------------- ----------------------
Middle-East & Africa 47 55 +18.7% 134 142 +6.4%
------------------------ ---------------------- ----------------------
TOTAL 2 485 2 760 +11.1% 7 397 8 103 +9.6%
------------------------ ---------------------- ----------------------
*T

Air Liquide
Corporate Communication
Anne Lechevranton, +33 (0)1 40 62 50 93
Corinne Estrade-Bordry, + 33 (0)1 40 62 51 31
or
Investor Relations
Virginia Jeanson, +33 (0)1 40 62 57 37
Aude Rodriguez, +33 (0)1 40 62 57 18

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