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Forbo allows CVC to conduct a due diligence assessment - schedule for capital increase unchanged

Eglisau/Zurich, November 18, 2004

The Forbo Board of Directors announces that it allows CVC Capital Partners to conduct a due diligence assessment of the company following CVC’s increased indication of interest to buy Forbo’s shares in the price range from CHF 350 to 370 per share and the CVC Capital Partners’ notification to the Board of Directors that they fundamentally support the strategy of the three Forbo businesses.

The Forbo Board of Directors now allows a due diligence assessment to be carried out by CVC Capital Partners following the rejection of an initial offer of CHF 330 per share as not being in the shareholders’ interest. In the meantime CVC Capital Partners have confirmed their indication of interest for a takeover of Forbo shares and have increased the price to the range of CHF 350 to CHF 370 per share (based on the number of shares prior to the capital increase). This corresponds to a premium of 69 % or 78 % respectively compared to the closing price of CHF 207.50 at the Swiss Stock Exchange on Wednesday, November 10, 2004. The submission of a tender offer is subject to due diligence.

CVC Capital Partners have informed the Board of Directors that they intended to continue the strategy the company has initiated with the three businesses, including the planned restructuring measures, in case a tender offer is successful. Further, CVC is not planning any changes in the company’s management. The capital increase will be carried out independently of a tender offer and has no influence on the decision by CVC Capital Partners.

The Board of Directors will issue a recommendation for the shareholders once a public tender offer has been launched. Such an offer is not expected before December 16, 2004, and the price offered at that time will take into account the effects of the capital increase. Since further parties interested in purchasing the shares have come forward, the Board of Directors has decided to also allow selected parties to carry out an identical due diligence assessment provided this is in the interest of the shareholders and the company. Such a process will not start before December 10, 2004 so that company management can fully focus on the capital increase.

This process will be designed by the Board of Directors and the management such that equal treatment of further interested parties is ensured.

Contact:

Prof. Dr. Rolf Watter
Member of the Board of Directors

This E. Schneider
Delegate of the Board and CEO
Tel: + 41 1 868 25 69
Fax: + 41 1 868 35 69