13.09.2001 – 10:10

Henkel KGaA

Henkel signs agreement for sale of Cognis

Dusseldorf, Germany (ots)

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Henkel KGaA has agreed to sell its chemical division Cognis to a
consortium of financial investors comprising of Schroder Ventures and
Goldman Sachs Capital Partners. The transaction is based on an
enterprise value of 2.6 billion euro. Henkel has succeeded in finding
purchasers who are able to support the continued successful
development of Cognis and thereby offer the Cognis employees a
promising perspective.

The definite purchase agreement was signed by the parties on
September 12, 2001. Closing is planned for end of November 2001. Due
to the current uncertain conditions in the financial markets arising
from the tragic events in the United States, Henkel has granted to
the investors the absolute right to withdraw from the contract within
two months.The agreement is subject to customary closing conditions,
including relevant regulatory approvals.The proceeds from the sale of
Cognis will increase Henkel's debt capacity substantially and will be
used for the further development of the core businesses.

Cognis, the former Chemical Products business of Henkel and a
leading worldwide supplier of specialty chemicals, was carved out
from Henkel in 1999. The three divisions of the Cognis Group -
Oleochemicals, Care Chemicals and Organic Specialties - serve
international manufacturers of detergents, cleaners and cosmetics, as
well as other industrial customers. With 9,100 employees in 50
countries, Cognis generated sales of 3.2 billion euro in 2000 and
thus accounted for 23 percent of total Henkel Group sales. In the
first half-year of 2001, Cognis achieved an increase in sales of 4
percent to 1.5 billion euro. Operating profit rose by 3.6 percent to
116 million euro.

Henkel is a worldwide operating specialist in branded consumer
products and industrial systems and service businesses with
affiliates in over 75 countries. Following the sale of Cognis and the
earlier announced transfer of its joint venture participation in
Henkel-Ecolab to Ecolab Inc. on January 1, 2002, Henkel will focus on
two strong pillars: Brands and Technologies. In these areas the
Company is the worldwide market leader in Adhesives and Surface
Technologies. In Laundry & Home Care and in Cosmetics/Toiletries,
Henkel holds a leading position in Europe. With  60,475 employees,
Henkel generated sales of 12.8 billion euro in 2000. In the first
half-year of 2001 the Company (including Cognis) recorded sales of
6.7 billion euro.

Schroder Ventures, headquartered in London, is a leading European
private equity specialist with a strong network in the UK, Germany,
France and Italy. Schroder Ventures has invested over US$ 2.9 billion
in more than 400 companies and manages a  portfolio of around 140
companies. One of the biggest recent acquisitions has been VEBA
Electronics in 2000.

Goldman Sachs Capital Partners is the private equity arm of
Goldman Sachs, one of the oldest and largest investment banking firms
in the world. Headquartered in New York, it has 44 offices in 20
countries. Since 1986, Goldman Sachs Capital Partners has invested
over US$ 9.5 billion in more than 470 companies in various industry
segments and has specific expertise with respect to investments in
German companies, including the recent acquisition of Messer
Griesheim from Aventis jointly with Allianz Capital Partners.

Any forward-looking statements contained in this press release
represent our best judgement as to what will occur in the future. The
Company's actual results could differ materially from those contained
herein and will depend on a number of competitive and economic
factors, some of which will be outside the control of the Company.
Notwithstanding any legal obligation to correct forward-looking
statements, the Company does not intend to continuously update any
and all of the forward-looking statements.

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     story.htx?nr=282143&action=bigpic&att=10391

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Caption for both pictures:
     Dr. Ulrich Lehner, President and Chief Executive Officer
     Henkel Group, Foto: Henkel
     Reproduction free provided source given / Copyright free by 
     reference

Contact:

Henkel Group
Corporate Communications
Ernst Primosch
Vice President
Phone +49-211-797-3533
Fax +49-211-798-2484
E-mail: ernst.primosch@henkel.com
Internet: www.henkel.com

Photo material available at http://www.pictures.henkel.com