Düsseldorf, Germany/Gulph Mills, Penn., November 2, 2005 -- The Henkel Group generated a double-digit percentage increase in both sales and operating profit (EBIT) in the third quarter of 2005. Net earnings for the quarter and earnings per share were also higher. The Henkel Group achieved an increase in sales of 13.2 percent to 3,140 million euros. Adjusted for foreign exchange, the rise was 12.0 percent. Organic sales growth, i.e. adjusted for foreign exchange and acquisitions/divestments, accelerated to 5.8 percent, following 1.5 percent in the first quarter and 3.3 percent in the second quarter.

"I am delighted with our Q3 results and encouraged by the fact that all business sectors were able to turn in highly gratifying performances," said Ulrich Lehner, Chairman of the Management Board of Henkel KGaA. "We succeeded in significantly accelerating organic growth through the introduction of a range of innovative new products and regional expansion in North America and in emerging markets. Due to this growth and the fact that it has been accompanied by a positive development in earnings in the first nine months, I can confirm our guidance for the full fiscal year.

The Henkel Group achieved an increase of 17.7 percent in operating profit (EBIT), after adjusting for foreign exchange. At 300 million euros before adjustment, EBIT was 18.9 percent above the comparable prior-year level.

Return on sales (EBIT) increased by 0.4 percentage points to 9.5 percent. Return on capital employed (ROCE) also improved by 0.4 percentage points to 13.5 percent, with the substantial increase in operating profit more than offsetting the growth in capital employed arising from acquisitions. Due to the absence of earnings from the divested stake in Clorox, income from participations fell from 44 million euros to 26 million euros. Net interest expense for the period increased from -46 million euros to -59 million euros. Overall, financial items fell from -2 million euros to -33 million euros.

With a slightly reduced tax rate of 25.5 percent, net earnings for the quarter after minority interests were 195 million euros, 7.7 percent above the comparable prior-year figure. Earnings per preferred share rose by 7.1 percent to 1.36 euros.

Regional Performance
Sales in the Europe/Africa/Middle East region increased by 5.5 percent, after adjusting for foreign exchange, and before adjustment by 6.1 percent to 1,916 million euros. In Eastern Europe, sales once again increased double-digit, while in Western Europe they matched the prior-year figure. In Germany, too, sales were not far below the level achieved in the previous year. In North America, sales increased by 32.1 percent, after adjusting for foreign exchange, and before adjustment by 32.2 percent to 772 million euros. All business sectors reported a substantial expansion in business. The rise is primarily due to the acquisitions of Sovereign and the Clorox businesses. In Latin America, sales adjusted for foreign exchange rose by 12.0 percent, with all the business sectors achieving growth due to the high level of business activity in the region. Before adjustment, sales rose by 22.5 percent to 151 million euros. In the Asia-Pacific region, sales, after adjusting for foreign exchange, were 17.9 percent above the prior-year quarter. Before adjustment, the increase was 22.0 percent to 241 million euros. Henkel Technologies and the Laundry & Home Care business sector, which benefited from the South Korean insecticide business acquired from Clorox in the previous year, were the prime movers here.

Major Participation
Ecolab Inc. of St. Paul, Minnesota, USA, in which Henkel has a 28.4 percent stake, increased sales by 6.8 percent to 1,165 million US dollars in the third quarter 2005. Net earnings for the quarter rose 9.3 percent to 103.7 million US dollars. The market value of the participation as of September 30, 2005, amounted to 1.9 billion euros.

Outlook
Henkel confirms its sales and profit forecast for 2005. The company intends to grow more strongly than its respective markets and expects to achieve organic growth (sales adjusted for foreign exchange and acquisitions/divestments) of 3 to 4 percent in 2005.

Before exceptional items, Henkel expects operating profit (EBIT) to increase in the high teens percentage range, after adjusting for foreign exchange. It should be noted here that, from January 1, 2005, EBIT will generally increase due to the elimination of scheduled goodwill amortization. The comparable EBIT for 2004 is therefore 1,000 million euros.

Despite the absence of the income from the Group's former Clorox investment, Henkel expects earnings per preferred share (EPS) to remain at the high level of the previous year. The basis for this forecast is earnings per preferred share before goodwill amortization and exceptional items, i.e. a comparable EPS of 5.21 euros.

This document contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.