Henkel Central Eastern Europe Posts Record 1998 Results

Regional Coordination Hub for 14 Countries Boosts Revenues 20%

Vienna (HCEE) - Henkel Central Eastern Europe (Henkel CEE),
regional headquarters for Germany‘s multinational chemical company Henkel Group, announced record results for the third straight year.

Total 1998 revenues increased more than 20% to 610 million Euro (USD 700 million), compared to 500 million Euro (USD 575 million) in 1997, whereas the number of employees in the region rose by 200 to 3,700 at the end of 1998.

Henkel CEE spearheads business operations in Vienna encompassing 14 Central and East European markets with 130 million people for its Dusseldorf-based parent company, one of the world’s leading manufacturers of detergents, household cleansers, cosmetics and adhesives.

Henkel CEE is market leader in adhesives, number one in cosmetics and second in the detergent segment in Central and Eastern Europe, whereas in Austria the company is market leader in all three business segments. The CEE markets, led by Poland, Hungary, Czech Republic, Slovakia and Romania, now account for more than 400 million Euro or 70% of Henkel CEE’s annual revenues, with Austria accounting for the remaining 30%.

Henkel CEE is responsible for 11 subsidiaries at 20 locations in 14 countries, namely Austria, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Yugoslavia.

"We will continue to maintain our market leadership position and grow dynamically, with revenues expected to reach 654 million Euro (USD 750 million) in 1999," according to Friedrich Stara, President of Henkel CEE.

GRAPHICS (MAC AND PC) SEE http://www.prnet.at/henkel/

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Rückfragen & Kontakt:

Mr. Ernst Primosch
Phone: (+43-1) 71104-254
E-mail: corpcom@henkel.at
Internet: http://www.henkel.atHenkel CEE - Corporate Communications

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