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Sales increase in spite of difficult market conditions

Eglisau / Zurich, February 1, 2005

In the business year 2004, Forbo raised net sales by CHF 23.4 million to CHF 1,622.3 million, which corresponds to an increase of 1.5 % over the previous year. This is essentially the result of the positive development of sales in the adhesives (plus 3.6 %) and belting (plus 3.4 %) businesses, whereas sales of the flooring business remained slightly below the previous year’s level. Forbo could stop the negative trend of recent years and again record positive organic growth.

The business year 2004 was influenced by the weak demand in Western Europe and the continued US Dollar weakness. Under these difficult market conditions, Forbo increased sales from CHF 1,598.9 million in the previous year by CHF 23.4 million to CHF 1,622.3 million, corresponding with an increase of 1.5 % or 2.3 % in local currencies, respectively. This means that Forbo could stop the negative trend of recent years and again record positive organic growth.

Sales of the adhesives business rose by 3.6 % to CHF 577.7 million compared with the previous year, or by 5.7 % in local currencies. The increase was mainly due to higher than average growth in North America and Asia, and to consistent alignment to strategic customer segments.

Sales of the flooring business amount to CHF 737.6 million and were slightly below the previous year´s level, minus 0.9 % or minus 1.5 % after currency adjustment. The decline in some European countries could not be fully compensated by the favorable sales increase of 14.7 % in terms of local currencies in North America.

Sales of the belting business grew by 3.4 % to CHF 307.0 million (in local currencies plus 5.3 %). Sales improved in all the regions. The continued expansion of worldwide fabrication capacities and distribution structures had also a positive effect.

The annual accounts will be published at the occasion of the media conference on March 22, 2005.

Forbo is a leading producer of floorings, adhesives, and beltings. The products and services are anchored and recognised worldwide. In the flooring business, the company focuses on environmentally favourable and design-oriented linoleum, high-quality cushion vinyls, and parquet. In the adhesives business, high-performance products ensure stable and permanent bonds between a wide range of materials. In the belting business, applications are developed and distributed under the „Siegling“ brand for transport, processes and drives.

The Forbo Group with head office in Eglisau, Switzerland, has some 5’600 employees today. The holding company, Forbo Holding AG, is listed at the SWX Swiss Exchange (securities number 354'151, Bloomberg FORN SW, Reuters FORZn S). Further information can be found at www.forbo.com.

Corina Atzli
Head of Corporate Communications
Tel: + 41 1 868 25 69
Fax: + 41 1 868 35 69