Henkel Continues On Its Successful Path

Despite the constraints of the worldwide economic situation, the Henkel Group increased sales in the third quarter of 2002 to 2.37 billion euros. After adjusting for foreign exchange influences, acquisitions and divestments, sales rose by 5.4 percent. There was a clear plus in operating profit (EBIT) which was at 160 million euros. "We expect to achieve our earnings target for fiscal 2002 and to report a double-digit percentage increase in operating profit," said Dr. Ulrich Lehner, President and CEO of the Henkel Group. "We anticipate an increase in sales in our continuing operations to around 9.7 billion euros, which is highly satisfactory given the current economic situation."

Dusseldorf - The Henkel Group reported sales of 2.37 billion euros for the third quarter of fiscal 2002 (previous year: 2.36 billion euros), an increase of 0.7 percent. After adjusting for foreign exchange influences, acquisitions and divestments, sales rose by 5.4 percent. This comparison is based on continuing operations, i.e. excluding Cognis and Henkel-Ecolab, related to the same quarter in the previous year. Operating profit (EBIT) realized a clear plus: at 160 million euros, it was 14.7 percent up on the prior-year quarter (140 million euros). In the first nine months of 2002, sales totaled 7.27 billion euros, 2.4 percent higher than in the same period last year. EBIT rose by 9.6 percent to 490 million euros, with all business sectors contributing to the increase.

The return on capital employed (ROCE) in the third quarter was 16.2 percent, a significant increase of 4.2 percentage points over the same period in 2001. Earnings per share increased by 14.1 percent to 0.73 euros (previous year - including divested businesses: 0.64 euros).

Any forward-looking statements contained in this press release represent our best judgement as to what will occur in the future. The Company's actual results could differ materially from those contained herein and will depend on a number of competitive and economic factors, some of which will be outside the control of the Company. Forward-looking statements speak only as of the date they are made, and Henkel has no intention and undertakes no obligation to update or revise any of them in light of new information, future events or otherwise.