1

Air Liquide America

2

Modes of Supply

3

Typical Air Separation Unit

4

Cryogenic Argon Purification Argon is typically co-produced with large O2 requirements

Particularly Steel & Chemical plants Argon represents 1% of air

And requires refining to achieve purity levels >99.9%

Crude Argon

O2 < 5 ppmN2 < 0.5%

LAR to Storage

Industrial Grade O2 < 5 ppm N2 < 20 ppm

5

Air Liquide America Argon Plants

The most comprehensive productions capability in North America

6

Distribution

Argon can be delivered by truck and rail

20 to 25 Ton cryogenic trailers

60 to 100 Ton cryogenic rail cars

Air Liquide has the best capability to deliver the greatest amount of LAR anywhere in North America

7

Supply & Demand

ALA is the 2nd largest in the US Includes MG acquisition

• After divestments Excluding Canadian capacity

Argon demand has grown faster than Industrial Production

5%/yr in the 80’s Over 4%/yr in the 90’s

Demand is forecasted to increase over 3%/yr through 2006

Argon Shimpments

1213141516171819202122

92 93 94 95 96 97 98 99 00 01 02

Bil

lio

ns

of

Cu

.Ft.

Source: US Census

US LAR Production Shares

Others4%

Air Liquide 29%

BOC15%

Air Products19%

Praxair30%

Linde3%

8

Argon Markets

Argon is forecasted to grow 3%/year through 2006 Metals & Heat treat and welding driven by quality New applications

• Opto-electronics (optical fiber, LED)• Food & Wine Inerting• Battery and Solar Panel manufacture

LAR Market Shares

Electronics3%

Electric Lighting4%

Other16%

Primary Metals & Heat Treat

36%

Welding41%

Electronics3%

Electric Lighting

3%Primary Metals

& Heat Treat36%

Welding40%

Other18%

19 Bil Cu Ft (2002) 22 Bil Cu Ft (2006)

9

Availability

Typically argon effective capacity is 90% of nameplate Due to higher downtime

• Longer time to purity after start-ups Production variation due to O2 demand

• When O2 demand is down, argon production is lost Long supply chains

• Capacity on the Gulf and Northeast is railed long distances

Effective capacity utilization (demand/effective capacity) is estimated to be in the high 80%’s

By 2006, utilization will be in the high 90%’s

In summary, availability will be tight However, Air Liquide has the ability to bring on additional

capacity• This will be a function of argon price