Düsseldorf, Germany/Gulph Mills, Penn., August 3, 2005 - In the second quarter of 2005, the Henkel Group was once again able to report significant increases in both sales and operating profit. Net earnings for the quarter and earnings per share were also above the prior-year level.

"The positive development of the first quarter has continued in the second quarter. We have markedly increased organic growth thanks to a number of successful product innovations," said Ulrich Lehner, Chairman of the Management Board of Henkel KGaA. "Aside from the good developments on-going in our growth regions, the positive trend in Europe - including Germany - has also continued. Both this and our strengthened market positions make me confident that we will meet our targets for 2005."

The Henkel Group generated sales of 3,009 million euros in the second quarter of 2005. This represents a 10.0 percent in-crease above the prior year, after adjusting for foreign exchange. Organic growth (adjusted for foreign ex-change and acquisitions/divestments) amounted to 3.3 percent this quarter, following the 1.5 percent achieved in the first quarter. All business sectors contributed to this positive development.

At 296 million euros, operating profit (EBIT), adjusted for foreign exchange, was 14.0 percent above the comparable prior-year figure, again with all business sectors contributing.

Return on sales (EBIT) rose by 0.3 percentage points to 9.8 percent compared with the previous year. Return on capital employed (ROCE) increased by 2.0 percentage points to 13.8 percent, due particularly to the improvement in operating profit and a slight decrease in capital employed. Income from participations fell from 56 million euros to 21 million euros due to the absence of earnings from the former Clorox investment. Net interest expense improved slightly from -49 million euros to -46 million euros. Overall, financial items fell from 7 million euros to -25 million euros.

With a tax rate of 25.8 percent, net earnings for the quarter after minority interests amounted to 196 million euros, 0.5 percent above the comparable prior-year figure. Earnings per preferred share increased by 0.7 percent to 1.38 euros.

Regional Performance

Sales in the Europe/Africa/Middle East region, after adjusting for foreign exchange, increased by 5.5 percent, and by 5.6 percent to 1,879 million euros before adjustment. Aside from further double-digit growth in Eastern Europe, Western Europe also improved sales, supported by positive sales dynamics in Germany. In the North America region, sales increased by 18.7 percent after adjusting for foreign exchange, and by 14.2 percent to 672 million euros before adjustment. The rise is primarily due to the acquisitions of Sovereign and the Clorox businesses. Consequently, the Laundry & Home Care, Consumer and Craftsmen Adhesives and Henkel Technologies business sectors each reported substantial improvements. With ongoing economic revival in Latin America, all business sectors reported a double-digit percentage growth rate in sales. Regional sales after adjusting for foreign exchange rose by 17.2 percent, and by 19.4 percent before adjustment, amounting to 148 million euros. In the Asia-Pacific region, sales after adjusting for foreign exchange were 24.0 percent above the prior-year quarter. At 249 million euros, the increase before adjustment was 24.5 percent. All business sectors contributed to this growth, particularly Laundry & Home Care, which profited from the insecticide business in South Korea, acquired from Clorox.

Major Participation
Ecolab Inc., St. Paul, Minnesota, in which Henkel holds a participating interest of 28.4 percent, realized sales of 1,159 million US dollars in the second quarter of 2005. This corresponds to an increase of 11.1 percent compared with the prior year. Net earnings for the quarter rose by 10.6 percent to 86.6 million US dollars. The market value of this participation as of June 30, 2005, translated to around 1.9 billion euros.

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

Before exceptional items, Henkel expects operating profit (EBIT) to undergo an increase in the high teens percentage range after adjusting for foreign exchange. It should be noted here that, since 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.

With the absence of the income from the Clorox participation, 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.