HenkelAgreement With Magnesium Technology Ltd.

Henkel Surface Technologies Enters Agreement With Magnesium
Technology Ltd.

Media Rlease From Henkel Group

Duesseldorf, Germany /News Aktuell-AsiaNet/ The Henkel-Group, Dusseldorf, Germany, is pleased to announce that they have entered into a chemical supply agreement with Magnesium Technologies Ltd. and Magnesium Technologies Licensing Ltd. (MTL), Auckland, New Zealand. The Surface Technologies
division of Henkel will act as the global manufacturer and distributor of the chemistry involved with ANOMAG process.

The ANOMAG process is a proprietary and patented process for the surface treatment of magnesium, either as an unpainted surface and for subsequent over-painting. Due to its low density, one quarter steel and half that of aluminium, magnesium is increasingly being used in weight reduction programs, especially in the automotive and electronics industries and its
use is expected to grow at 15% per year over the next 5-10 years.

Henkel will promote the ANOMAG process via its extensive global sales force to ensure that its customers have the choice of the leading systems and processes to protect the magnesium from corrosion. Henkel and MTL have also agreed that they will have collaborative R&D-programs to further enhance the Anomag technology and develop other processes to increase the applicability of magnesium in industrial applications.

This is an exciting opportunity for Henkel and MTL to remain at the leading edge of the development of the utilisation of magnesium as a lightweight substrate .

Henkel is a worldwide operating specialist in adhesives, brand-name products and in industrial specialties with affiliates in over 70 countries. The Company is the market leader in Adhesives, Surface Technologies and Industrial and Institutional Hygiene (jointly with Ecolab Inc.) on a worldwide scale. In Detergents/Household Cleaners and in Cosmetics/Toiletries Henkel holds a leading position. Cognis, the recently carved-out chemicals business, is the world's leading producer of Oleochemicals.

With over 57,000 employees, Henkel generated sales of 6.2 billion Euro in the first half year 2000, 11.4 percent up on the same period last year. Operating profit increased by 13.3 percent to 462 million Euro.

September 22, 2000

Contact: Henkel Group Corporate Communications: Sven Jacobsen, Tel.: +49-211-797-6321, e-mail: sven.jacobsen@henkel.de
For more information on Henkel, go to www.henkel.com

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