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Forbo Sells Decorative Films Business

Eglisau, November 24, 2000

As already announced, Forbo is to sell its decorative films business. By now, the negotiations have been concluded successfully. Effective today, all the activities associated with the decorative films business are transferred to Hindrichs-Auffermann AG, Düsseldorf, a leading European producer of decorative products. This transaction involves two production sites in England (Cramlington and Lancaster) and the international sales organizations on the European continent and in the USA. Total sales amount to CHF 140 million, and the number of employees is about 800.

Because of the negative earnings development and the difficult market situation of the activities being divested, the selling price is clearly below the book value meaning that the strategic provisions set up last year will have to be used by approximately CHF 45 million.
With its complete withdrawal from the decorative films business, which also included the remaining part of wall coverings, Forbo is making a further step to focus on its strategic core business. This divestment will strengthen the company's future profitability. Forbo is a global company committed to the development, production and marketing of products and systems for floor coverings and industrial specialties. It employs about 6 000 people worldwide and has an international network of 28 production companies in 12 countries and 67 marketing organizations in 25 countries.