NEW YORK, May 18, 2004 – Schlumberger Limited (NYSE:SLB) announced today that its wholly-owned subsidiary, Schlumberger B.V., has placed 34,821,739 ordinary shares in its smart card unit Axalto Holding N.V., representing 87% of the total ordinary shares outstanding. This will increase to 40,045,000 million ordinary shares, or 100% of the shares outstanding, if the over-allotment option is exercised in full. The sale price is Euros 14.80 per share. From today the ordinary shares are traded on the Paris Euronext Stock Exchange under the ticker AXAL-PA.

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. With our focus sharpening on the oilfield services business, we felt that the time was right to offer ownership of Axalto to the investment community to create opportunity for further growth. Schlumberger wishes Axalto and its employees well for the future.”

Schlumberger intends to use the proceeds of this offering, net of fees and commissions, to reduce net debt.

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 45,000 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.

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Stephen Whittaker

Director of Corporate Communications

Schlumberger Limited

+33 14062 1308

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