IPO of Schlumberger Subsidiary Axalto

04 May, 2004 — Schlumberger Limited (NYSE:SLB) today announced the launch of the Initial Public Offer (IPO) of Axalto, its wholly-owned smart card subsidiary, following approval by the Autorite des Marches Financiers on May 3rd, 2004 of the prospectus (visa no 04-354) relating to the IPO and listing of shares on the Premier Marche of Euronext Paris.

Andrew Gould, Chairman and CEO of Schlumberger commented: ‘Schlumberger is pleased to have played a leading role in the development of smart-card technology since an initial investment in 1979. As we focus on our core oilfield business, we feel that the time is right to offer ownership of Axalto to the wider investment community to create opportunity for further growth.’

Axalto, which was previously known as Schlumberger Smart Cards and Terminals, is the world’s leading provider of microprocessor cards (Gartner, 2003), and a major supplier of point-of-sale terminals. Its approximately 4,500 employees serve customers in more than 100 countries. The company has more than 25 years’ experience in smart card innovation, and leads its industry in security technology and open systems. Axalto generated a net profit of $25 million in 2003 on gross revenues of $768 million.

Axalto is strongly positioned in the mobile communication, financial and public sector markets, while offering innovative solutions for fast-growing, emerging, microprocessor card applications. The company’s strengths are backed by a deeply engrained culture focusing on excellence, customer service, innovation and profitability.

About Schlumberger

Schlumberger is the world’s leading oilfield services company supplying technology, project management and information solutions that optimize performance for customers working in the oil and gas industry. The company employs more than 50,000 people of over 140 nationalities working in 100 countries. In 2003, Schlumberger operating revenue was $11.4 billion. For more information, visit www.slb.com

Visa of the Autorite des marches financiers Pursuant to articles L.412-1 and L.621-8 of the Code monetaire et financier, the prospectus relating to this offering has received the visa (with a warning) no. 04-354 dated 3 May 2004 of the Autorite des marches financiers in accordance with Regulation no. 98-01 of the Commission des operations de bourse. This prospectus has been prepared by the issuer and renders its signatories liable for the contents hereof. The visa does not imply approval of the suitability of the transaction or authentification of the accounting and financial items included herein. It has been granted after review of the relevance and consistency of the information in the light of the transaction proposed to investors.

Warning

The French ‘Autorite des Marches Financiers’ draws the public’s attention to the fact that Axalto Holdings N.V. is a company incorporated in The Netherlands applying for the listing of its shares in France. The applicable regulations concerning public information, investor protection, and the company’s undertakings to the regulatory authorities and the markets are described in the ‘document de base’.

This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the U.S. unless they are registered or are exempt from registration. Neither Schlumberger B.V nor Axalto Holdings N.V. intends to register any portion of this offering in the United States or to conduct a public offering in the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about Axalto and its management, as well as financial statements.

This announcement is only intended for investment professionals, high net worth individuals, partnerships, associations or trusts and investment personnel of any of the foregoing (each within the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001) and any other persons to whom it may be communicated lawfully. No other person should act or rely on it. Persons distributing this announcement must satisfy themselves that it is lawful to do so.

The ordinary shares are not and will not be offered in The Netherlands other than to persons who trade or invest in securities in the conduct of their profession or trade (which includes banks, securities intermediaries (including dealers and brokers), insurance companies, pension funds, other institutional investors and commercial enterprises which as an ancillary activity regularly invest in securities).