Henkel's Industrial Group Announces Price Increases

Commits resources to negate price increases based on increased raw material costs

MADISON HEIGHTS, Mich., Nov. 15 -- Henkel Corporation's Industrial Group is implementing a price increase on many of its adhesives, sealant and surface treatment products in response to continuing industry rising raw material costs.

The escalation of petroleum-based raw materials and key metals prices over the past four years continues to challenge the industry. Refinery production issues, along with derivative suppliers reducing and restructuring their product portfolios have created unique supply and demand challenges on key raw materials used in the manufacture of Henkel products.

"The industry forces affecting our business are significant," said Julian Colquitt, president, Henkel North America. "We continuously look for ways to change the way we do business to better accommodate these market challenges."

Henkel leverages its global purchasing resources and processes to forecast and plan for impending raw materials price increases in order to help reduce the impact of these charges to the customer. In addition, Henkel works to secure supply and volume commitments from its suppliers; rationalize product lines and develop new technologies that help to alleviate product and process costs to customers. Despite these measures, it is necessary for the company to share a portion of these escalating costs and implement price adjustments.

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 2006, Henkel generated sales of $15.925 billion and operating profit of $1.622 billion. Our 52,000 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.