Henkel KGaA

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Henkel KGaA Fiscal 2007, Divestiture Ecolab, Efficiency Enhancement Program

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27.02.2008

Düsseldorf, February 27, 2008

Henkel KGaA Fiscal 2007, Divestiture Ecolab, Efficiency Enhancement Program

I. Fiscal 2007 Henkel increases sales and profits

. Sales up 2.6 percent to 13.07 billion euros
      . Organic sales growth of 5.8 percent
      . Operating profit (EBIT): up 3.5 percent to 1,344 million euros
      . Net earnings for the year: up 8.0 percent to 941 million euros

Düsseldorf - Today Henkel published its annual report  for  fiscal   2007.  Sales improved by 2.6  percent  to  13,074  million  euros,   with  all  the  company's business sectors contributing. Organic sales, i.e.  sales  after  adjusting  for foreign exchange and acquisitions/divestments, were increased by a 5.8 percent.

The operating profit (EBIT) improved by 3.5  percent  to  1,344   million  euros, thus outstripping sales  growth.  After  adjusting   for  foreign  exchange,  the increase was 5.8 percent, again with   all  the  business  sectors  contributing. Return on sales (EBIT) increased by  0.1  percentage  points  to  10.3  percent. After adjusting for  exceptional  gains  and  restructuring  charges,   operating profit (EBIT) rose by 8.2 percent to 1,370 million euros with the  corresponding return on sales figure improving 0.6 percentage points to 10.5 percent.

Net earnings for the year increased by 8.0 percent to 941 million   euros.  After deducting minority interests of 20 million euros, net earnings were 921  million euros (+7.7 percent). Earnings per preferred share increased from 1.99 euros  to 2.14 euros (+7.5 percent).

In view of the earnings  performance,  the  Management  Board,  the   Supervisory Board and the Shareholders' Committee will be proposing to  the  Annual  General Meeting that it approve an increase in dividends from 0.50 euros to  0.53  euros per preferred share and from 0.48 euros to 0.51 euros per ordinary share.

Outlook Henkel intends once again to grow stronger  than  its   markets  and  expects  to achieve organic sales growth (i.e. after   adjusting  for  foreign  exchange  and acquisitions/ divestments) of 3  to  4  percent  in  2008.  Henkel  expects  an increase in operating profit (EBIT) - adjusted for foreign exchange - in  excess of organic sales growth. Henkel likewise expects an  increase  in   earnings  per preferred share (EPS) in excess of organic sales growth.

This outlook does not take into account the effects of the  planned   acquisition of the Adhesives and Electronic Materials businesses of National Starch.

II. Divestiture of the stake in Ecolab intended The Management Board decided - with the approval of the Shareholder's  Committee as of February 27 - to undertake the divestiture of all or part of its stake  in Ecolab Inc., St. Paul, Minnesota, USA. No final decision has been taken at  this time as to the size, the timing and the method of any  such  divestiture,  which would be carried out in accordance  with  the  Stockholder's  Agreement  between Henkel and Paula.

Ecolab, in which Henkel holds a 29.4 percent  stake,  reported  sales of  5,470 million US dollars for fiscal 2007. As of December 31, 2007 the market value  of this interest amounted to  approx.  3,723   million  US  dollars  (approx. 2.5 bn euros), though no assurance can be  given  that  a  divestiture  of  the stake would yield proceeds in this amount.

III. Measures to increase long-term profitability initiated Against the background of changing market conditions, especially with regard to ever stronger competition and increasing cost pressure,  the   Henkel  Management Board has decided, with the  approval  of  the   Shareholders'  Committee  as  of February 27, 2008, the basics of an efficiency enhancement program.

@@start.t2@@The program, which will  be  initiated  on  a  worldwide  level,  is  to  define
projects in all  business  sectors,  regions  and  functions  with  the  aim  to
sustainably    strengthen    both      Henkel's      profitability      and      long-term
competitiveness. The initiative, with a volume of about 500  million  euros,  is
designed to generate annual savings of  around  150  million  euros  from  2011.
Based on experience from similar programs carried through  in  the  past,  these@@end@@

measures could result in the reduction of about 3,000 jobs.

Henkel will finalize the details of the program, following  the   development  of single project ideas and the subsequent discussion with both the works  councils and the employees likely to be affected.

Please note that the measures pointed out under II. and III. are not considered in the outlook referred to under I.

Henkel KGaA

This information contains forward-looking statements  which  are   based  on  the current estimates and assumptions made by the   corporate  management  of  Henkel KGaA. Forward-looking statements are characterized by the use of words  such  as expect, intend, plan, predict, assume, believe, estimate, anticipate, etc.  Such statements are not to be understood  as  in  any  way  guaranteeing  that  those expectations will turn out to be accurate. Future performance  and   the  results actually achieved by Henkel KGaA  and  its  affiliated   companies  depend  on  a number of risks and uncertainties and may therefore differ materially  from  the forward-looking statements. Many of these factors are outside  Henkel's  control and cannot be accurately estimated in  advance,  such  as  the  future  economic environment  and  the  actions  of  competitors  and  others   involved  in    the marketplace. Henkel neither plans nor undertakes to update  any  forward-looking statements.

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ots Originaltext: Henkel KGaA
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Lars Witteck
tel. +49-211-797-2606

Branche: Consumer Goods
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