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Forbo to strengthen presence in China

Eglisau, January 10, 2006

Forbo has acquired 100 % of the Chinese adhesives business Victa Technology Holdings Limited.

This acquisition provides Forbo with an industrial platform to strengthen the group’s presence with adhesives in the Greater Chinese market. The Chinese company Victa produces and distributes adhesives for the converting, packaging and woodworking industries and has production facilities in Guangzhou and Shanghai. Victa was founded in 1996 and, in 2004, recorded sales of some CHF 17 million. The parties agreed on not disclosing information on the purchase price.

Forbo is already represented in China with a belting production plant in Shenyang in the north of the country, and with a sales organization for floor coverings and adhesives in Shanghai. With the acquisition of Victa, the number of Forbo employees in China will rise to over 350.

Forbo is a leading producer of floor coverings, adhesives and beltings. The company employs some 5,500 people and has an international network of production companies and sales organizations in 31 countries. Forbo’s Head office is in Eglisau / Switzerland. Net sales in 2004 were CHF 1,622.3 million. The holding company - Forbo Holding AG - is listed at the SWX Swiss Exchange (security number 354151, ISIN CH0003541510, Bloomberg FORN SW, Reuters FORN.S). Further information can be found at www.forbo.com.

Further information:

This E. Schneider
Delegate of the Board of Directors and CEO
Tel: + 41 58 787 25 49
Fax: + 41 58 787 20 49