Henkel Expands Business Operations in Baltic States /

German Chemical Group Sets Up Joint Ventures in Latvia, Lithuaniaand Estonia Vilnius, Riga, Tallinn (ots) - Henkel CEE, the Central andEastern European headquarters of Germany's global chemicalcompany Henkel, has established three new joint ventures in theBaltic States, designed to market and distribute its cosmeticsand personal care products. The future-oriented move into Latvia, Lithuania and Estoniaaims to expand Henkel's market leadership position in Central andEastern Europe and ensures ongoing growth. Henkel employs morethan 4,100 people in the region at 14 subsidiaries in 14countries, posting revenues of USD 700 million (Euro 610 million)in 1998.

At the same time, Henkel will invest approx. USD 2 million(Euro 2 million) to set up an efficient local productdistribution system. The company is committed to upgrading theservice sectors and logistical capabilities of the three emergingmarkets in line with EU standards, as well as assisting thecountries to modernise their economies as a step towardspotential membership in the European Union. The joint ventures were set up in co-operation with EscorGroup, a Baltic marketing company in which Henkel purchased a 60% stake. Operating under the name "Henkel-Escor", the three newcompanies will employ an initial work force of 74. Supervisionis in the hands of Henkel Central Eastern Europe, the group'sVienna-based regional headquarters. Day-to-day coordination ofthe company's cosmetics and detergents business in the BalticStates will be handled by Henkel Polska, the Warsaw-based Polishsubsidiary. The Dusseldorf-based Henkel Group, with 340 companiesoperating in over 70 countries, is a world-wide specialist inapplied chemistry and one of the leading manufacturers ofdetergents, household cleansers, cosmetics and adhesives. ots Original Text Service: Henkel Central Eastern EuropeFor more information, contact:Ernst PrimoschHenkel Central Eastern EuropePhone +43.1.71104.254E-mail primosch@henkel.at

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