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Forbo simplifies corporate structure

Eglisau, January 17, 2003

Forbo will consolidate the two separate Business Units Linoleum and Vinyl, so far represented in the corporate management individually, into one business for floor coverings. Consequently, the flooring business will operate in all markets worldwide under the designation and logo of Forbo Flooring. Martin Richenhagen has been appointed to head this newly established Business Unit and will as such also become a member of the Executive Board. He will assume this post as from February 1, 2003.

Richard S. Pemberton (43), heading the former Business Unit Vinyl, will assume the new function as Head of Flooring Sales and with this, the responsibility for all flooring sales operations worldwide. Due to this change, he will no longer be a member of the Executive Board, but will act as Deputy to Martin Richenhagen.
Marien A.G. Weijenberg, Head of the former Business Unit Linoleum, has left the company in mutual agreement.

The production, which supplies Forbo's worldwide sales organizations with floor covering products, will remain structured according to its core products linoleum (two production sites) and vinyl (five production sites). The production sites managers will report directly to Richenhagen.

Martin Richenhagen (50) has since 1998 acted as Managing Director of the family-owned company Claas in Harsewinkel (Germany), with an annual turnover of more than EUR 1.2 billion an industry leader in agricultural machinery. In this function, Richenhagen had the operational responsibility for marketing, sales, and human resources. Under his leadership, Claas achieved a considerable increase in sales and earnings in the past years.
The new structure of the floor covering business with its global sales organization will enable Forbo to operate more flexibly in the individual geographic markets while building on an internationally consistent appearance. The national sales forces will continue to pursue business opportunities in the contract and residential businesses in a differentiated manner in order to ensure segmented marketing with the core products linoleum and vinyl. The intensified coordination of the contract and the residential businesses on the national level will enhance customer relations while allowing a lean organization. The new organizational structure will take effect on February 1, 2003.

Forbo is a global manufacturer of flooring products, adhesives as well as conveyor and drive belts. The Group employs some 5700 people worldwide and has an international network of 40 production companies and 80 sales organizations in 30 countries.

Contact:

Ursula Leonhard
Head of Corporate Communications
Tel: + 41 1 868 25 69
Fax: + 41 1 868 35 69