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Media release half-year report 2007

Half-Year Report 2007: Firm sales growth – Significant improvement in margins – Strong increase in net profit

Forbo remains on track for success and is growing in all three divisions

Forbo Group – a leading manufacturer of flooring systems, chemical bonds and adhesives, as well as power transmission and conveyor belt solutions – reported a strong 73.9% increase in net profit in the first half of 2007. Net sales came to CHF 1,003.5 million, 7.5% more than in the prior-year period (CHF 933.1 Mio). Operating profit (EBIT) also increased significantly by 32.7% compared with the prior-year period. All three divisions reported further progress and contributed to this encouraging result.

Baar, August 21, 2007

FIRM SALES GROWTH IN ALL THREE DIVISIONS*3
In the first half of 2007, Forbo increased net sales by 7.5% (5.5% in local currencies) com-pared with the prior-year period to CHF 1,003.5 million. Growth in our key markets Central, South and Eastern Europe was particularly pleasing, while demand in America leveled off to some extent. All three divisions were instru-mental in the Group’s robust growth.

**SUBSTANTIAL INCREASE IN PROFITABILITY
Operating profit before depreciation and amortization (EBITDA) improved substantially in all three divisions, rising to CHF 103.6 million, representing an increase of 19.5% compared with the prior-year period. Operating profit (EBIT) rose by 32.7% to CHF 73.1 million.

SIGNIFICANT IMPROVEMENT IN MARGINS
All three divisions increased their operating profit margins significantly. The EBITDA mar-gin as a percentage of sales improved from 9.3% in the prior-year period to 10.3%. The EBIT margin as a percentage of sales rose from 5.9% to 7.3%.

STRONG INCREASE IN NET PROFIT
Group profit increased by CHF 19.8 million compared with the prior-year period to CHF 46.6 million, corresponding to a significant rise in net profit of 73.9%.

POSITIVE DEVELOPMENT IN ALL DIVISIONS
The Flooring Systems division generated net sales of CHF 430.2 million (prior-year period: CHF 393.8 million), corresponding to an increase of 9.2%. Operating profit (EBIT) rose by 35.1% to CHF 41.6 million compared with the prior-year period.

The Bonding Systems division increased net sales by 6.1% to CHF 390.0 million (prior-year period: CHF 367.5 million). Operating profit (EBIT) increased by 14.0% to CHF 29.4 million compared with the prior-year period.

The Movement Systems division generated net sales of CHF 183.3 million, representing an increase of 6.7% compared with the prior-year period (CHF 171.8 million). Operating profit (EBIT) almost doubled compared with the prior-year period, increasing by 97.8% to CHF 9.1 million.

**OUTLOOK FOR 2007*3
The economic environment has had a favorable impact on our business activities this year to date. If the economy continues to develop positively, we expect the result in the second half of 2007 to be similarly gratifying.

Further detailed information on the perfor-mance of Forbo Group and its divisions are to be found in the Half-Year Report 2007 (www.forbo.com).

Forbo is a leading manufacturer of flooring systems, chemical bonds and adhesives, as well as power transmission and conveyor belt solutions.

The company employs more than 5,800 people and has an international network of 30 produc-tion companies with distribution, and 40 sales organizations in a total of 33 countries. Forbo is headquartered in Baar in the canton of Zug/ Switzerland.

Forbo Holding Ltd is listed on the SWX Swiss Exchange (security number 354151, ISIN CH0003541510, Bloomberg FORN SW, Reuters FORN.s).

Contact person:

This E. Schneider
President and CEO

Phone +41 58 787 25 49
Fax +41 58 787 20 49
www.forbo.com