Henkel KGaA

Henkel closes acquisition of National Starch businesses

Adhesives business significantly strengthened

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Düsseldorf (euro adhoc) - [pic]Düsseldorf, April 3, 2008 Adhesives business significantly strengthened

Henkel closes acquisition of National Starch businesses

Henkel has taken over from Akzo Nobel the  Adhesives  and  Electronic Materials businesses previously owned by National Starch. "This acquisition  represents  a milestone in our 130-plus-year corporate history and points  Henkel  clearly  in the direction of further profitable growth," said  Ulrich  Lehner,  Chairman  of the Management Board of Henkel KGaA. The acquisition was preceded by the carve- out of the businesses to be acquired by Henkel and the requisite  antitrust  and anticompetitive investigations by the relevant authorities.

In 2007, these two business segments of National Starch generated sales of  1.25 billion GBP (about 1.83 billion euros). The purchase price was 2.7  billion  GBP (about 3.7 billion  euros).  Following   the  integration,  annualized  sales  of Henkel's Adhesives Technologies business  sector  will  increase  to  about  7.5 billion euros. Henkel expects synergies from  the  acquisition  of  240  to   260 million euros per  year  and  anticipates  it  will  realize  the full  synergy potential from 2011 on.

"We will do everything in our power to integrate  this  excellent   company  with its outstanding employees and  products  quickly  and   smoothly",  added  Ulrich Lehner. Henkel will provide an update on the integration process  in  connection with the publication of the Q1 figures on May 7, 2008.

Market position strengthened

By acquiring the Adhesives  and  Electronic  Materials  businesses   of  National Starch, Henkel substantially further strengthens its   leading  position  in  the global  adhesives  markets,  particularly in  the    industrial    segment.    The businesses of National Starch and the  existing  Henkel  Adhesives  Technologies portfolio excellently complement each other.

Within Henkel's Adhesives Technologies business  sector,  the   acquisition  will have a particular impact on the packaging  and   wood  adhesives  businesses,  as well as on the electronics business. Henkel, for example, has very  good  market positions in the   laminating  adhesives  segment  used  in  the  manufacture  of flexible packaging for food products, while  National  Starch  is  a leader  in pressure-sensitive adhesives. As a result  of  the   merger,  these  technologies will be accessible  to  a  larger   number  of  customers,  while  new  areas  of application are expected to be developed. In  the  electronics  field,  National Starch offers a specialty adhesive with which electronic chips can be bonded  on - for example - credit cards, while Henkel markets solutions for the  protection of these sensitive chips against damaging environmental influences such as  heat or sun radiation. The combination of the two businesses  now  enables  customers to source both solutions from a single supplier.

Henkel also sees a significant strengthening of its regional  market positions. The share of sales accounted for by  the  Asia-Pacific   region  will,  with  the acquisition of the National  Starch   businesses,  increase  from  8  percent  to around 12 percent, and the share of sales of the adhesives business  per  se  in this region will actually double due to the  already  strong  position  of  both companies. At the same time, the strong market position  enjoyed  by Henkel  in Europe, particularly in the growth region of Eastern Europe,  can  be  leveraged to accelerate expansion  by  enabling   brands  and  technologies  from  National Starch to be marketed via the Henkel  sales  and  distribution  network  already established in this region.

For more than 130 years, Henkel has been a leader with brands  and   technologies that make people's lives easier, better and more beautiful. Henkel  operates  in three business areas - Home Care, Personal Care, and  Adhesives  Technologies  - and ranks among the   Fortune  Global  500  companies.  In  fiscal  2007,  Henkel generated sales of 13,074 million euros and operating profit  of  1,344   million euros. Our 53,000 employees worldwide are dedicated to fulfilling our  corporate claim, "A Brand like a Friend," and   ensuring  that  people  in  more  than  125 countries can trust in brands and technologies from Henkel.

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.

Henkel KGaA

Head of Corporate Communications Ernst Primosch, Corporate Vice President

Press Contact: Henkel Corporate Communications

Lars Witteck                                  Wulf Klüppelholz
Phone: +49-211-797-2606                 Phone: +49-211-797-1875
Fax: +49-211-798-9208                    Fax: +49-211-798-9208


Photo material for download available at http://henkel.com/press -----------------------


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ots Originaltext: Henkel KGaA
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Further inquiry note:
Irene Honisch
Assistent Corporate Communications
Tel.: +49 (0)211 797-5668
E-Mail: irene.honisch@henkel.com

Branche: Consumer Goods
ISIN:      DE0006048432
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