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"The [arrested] individual does not seem to be known by police," a police source told Reuters.
Another police source said that two students had opened fire on the headmaster. The second suspect is still on the run.
“One of the two was arrested and the second fled. There was panic and the students took refuge in the [neighboring] supermarket,” the source said.
A picture allegedly from the crime scene has emerged online.
At least one student armed with several weapons has attacked a high school in the French town of Grasse.
The government has sent a nationwide terrorist attack warning to smartphones, and police have urged local residents to stay indoors.
France's interior ministry says at least three people were hurt after the shooting at the Alexis de Tocqueville high school - revising down a previous estimate that eight people had been injured.
Police sources say a 17-year-old student has been arrested, and the suspect was carrying a rifle, two handguns and two grenades.
There are conflicting reports that a second shooter may have been involved - with a police source telling Reuters that another student, who is also armed, remains on the run.
Three people, a high school principle among them, were injured. Five more people were said to be suffering shock.
The attack shocked France, which has some of the toughest gun laws in the world. Citizens are banned from owning automatic weapons, while other guns require authorization, together with a permit from a hunting or sporting organization.
On the same day, in Paris, a letter-bomb exploded at the office of the International Monetary Fund, injuring one person.
Following the incident, the French PM, Bernard Cazeuneve canceled a scheduled trip. President Francois Hollande has already called the incident a "terror attack".
RT: The school attacker was well-prepared, as he had a rifle, pistols and hand grenades with him. How was it possible for a 17-year-old to get all these weapons?
Charles Shoebridge: We don’t know yet whether all of those weapons were actually real as opposed to fake weapons, props, or something like that that you could use to intimidate or scare. But in fact, we’ve got so many injuries clearly suggesting that at least one of those was a functioning live weapon. The fact that [the attacker] was carrying grenades suggests that they may have been operational also. So, I think there are going to be two main points that people are going to be looking at here, apart from looking whether there are any accomplices and of course getting the injured back on their feet again.
First is the critically important point: how could it be that anybody, let alone a 17 year old, can acquire such a mini arsenal without having been detected. And secondly, I think people will want to look whether any warning signs beforehand were missed.