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Press release for immediate publication:

Freudenberg reports best sales and results


Group active in new business areas in India

Vileda and Gala expand their joint venture/new plant at Adas

Bangalore, May 31, 2011: In the 2010 financial year, the Freudenberg
Group achieved new records in India. Sales of `794 crores represent a rise
of about 42 percent compared with the previous year (`558 crores). The
upward trend continues. In the first quarter of 2011, sales grew by 25
percent compared with the first three months of 2010. The number of
associates has risen to more than 2,500. "Once again, our Indian
companies have shown themselves to be motors of growth for the
Freudenberg Group," said Dr. Jörg Matthias Großmann, Regional
Representative of the Freudenberg Group in India and CFO of Freudenberg
Chemical Specialities, in Mumbai on Tuesday.

All in all, the internationally active Freudenberg Group recorded sales of


about `33,109 crores in the 2010 financial year. After eliminating
exchange rate effects, this represents a rise of about 30 percent compared
with 2009. Growth has now fully compensated for the slump caused by the
economic crisis in 2009. Profit from operations (EBIT) grew
disproportionately by `3,577 crores to `2,601 crores. In terms of sales and
profit, 2010 was therefore one of the most successful financial years in the
history of Freudenberg. "The unexpectedly swift economic recovery, the
market shares which we have won, the improvements in processes and
cost structures during the crisis and strict financial management are the
main reasons for our success in the 2010 financial year," Dr. Großmann
said.

The Group is continually expanding its activities in India. In 2010,


Freudenberg invested more than `53 crores in plants and its sales
organization. The main investments in 2010 included a new production
facility for the EagleBurgmann Business Group in Pune and the expansion
of the Chem-Trend and Klüber plants in Mysore. In India, Freudenberg is
active at 27 plants in ten cities.

Developing new markets with a new division

At the beginning of 2011, Freudenberg Chemical Specialities acquired


surface technology company SurTec International GmbH. The acquisition
is part of the Group's strategy of systematically developing its chemical
specialities business. In India SurTec has its own production facility at
Pune. The company develops, produces and markets chemical products
and processes for industrial cleaning, the pre-treatment, processing and
post-treatment of metal surfaces, plastic galvanizing and aluminium
anodizing. SurTec products and solutions for surface treatment and
galvanizing supplement the previous product portfolio of Freudenberg
Chemical Specialities. Like Klüber Lubrication, Chem-Trend and OKS,
SurTec is managed and developed by Freudenberg Chemical Specialities
on a long-term basis as an independent company.

Vileda and Gala open new plant at Adas

Freudenberg's largest investment in India in 2011 will be a new plant in


the province of Gujarat. The new, advanced factory of Freudenberg Gala
Household Product Pvt. Ltd. is to be opened on June 1 in 2011. In future,
the plant will produce mechanical household cleaning products.
Freudenberg Gala Household Product Pvt. Ltd. is a leading supplier of
mechanical cleaning products in India. Products for daily domestic use and
for the professional cleaning sector are produced and marketed under the
Gala® brand name. Freudenberg Gala Household Product Pvt. Ltd. was
established in August 2009 and is a joint venture of Freudenberg
Household Products, Germany, and Gala Brush Limited, India. Freudenberg
holds a 60-percent stake in the joint company, which is managed by an
experienced team from the two partners. Currently, more than 240
associates work for Freudenberg Gala Household Product Pvt. Ltd. – and
the number is still growing.

Professionalism and employee identification as the keys to


success

One of the cornerstones of Freudenberg's success in India is the strong


networking and close cooperation between the individual Business Groups.
This means that employees benefit from the broad range of expertise
available within the entire Group and can continually improve production
processes. The involvement of associates in the Group, which is active in
59 countries, ensures the quality of the individual processes. In addition,
employees benefit from further training opportunities. This includes
cooperation with a number of universities and research institutes, such as
the Indian Institute for Management (IIM) in Bangalore. The objective is to
continue the training of students in an international environment and to
provide them with practical skills to supplement their theoretical
knowledge. To underline the importance of cooperation with IIM,
Freudenberg offers scholarships to the two best students in the first year.

Freudenberg offers prospects to tsunami victims

Freudenberg has shouldered its social responsibility for more than 160
years. As in all the 59 countries where the Group is represented,
Freudenberg is committed to being a good neighbor in India. At
Nagapattinam, the Group offers well-founded vocational training for up to
130 young people. Currently, there are 69 students at the training center;
all the trainees who completed their course in 2010 have found
employment.

Freudenberg established the training center in the southern Indian


province of Tamil Nadu following the devastating tsunami in 2004. To
date, this has been the Group's largest aid project outside Germany.
Depending on the vocation chosen, the young people's training lasts for
one or two years. Students completing their training have good prospects
of earning a living in the region and improving infrastructure in Tamil
Nadu. They work as welders, fitters or mechanics with major companies in
the region.

About Freudenberg in India


Freudenberg has held business ties with customers and partners in India
for nearly 100 years. The Group has a workforce of more than 2500
employees across eleven locations. The combined sales of its ten
operating business units in India stood at `794 crores in 2010. The Group
operates at over 27 facilities across regions in India and is committed to
the Indian market long-term.

About the Freudenberg Group


Freudenberg is a family company offering its customers technically
challenging product solutions and services. The Freudenberg Group is first
and foremost a supplier specializing in seals and vibration control
technology, nonwovens, filtration, lubricants and release agents as well as
mechatronic products. The end-user can find modern Freudenberg
household products in the shops under the brand names of vileda®,
Gala®, O´Cedar® and Wettex®. And especially for mid-size companies
Freudenberg develops software solutions and IT services. The Freudenberg
Group employed around 34,000 people in 59 countries and generated
sales of more than `33,109 crores in 2010. More about Freudenberg:
www.freudenberg.in.
For editorial queries please contact-

Freudenberg &Co.KG PRHUB IMC Pvt


Ltd

Cornelia Buchta-Noack Emilee/Anas

Tel. +49 (0) 6201 80-4094 Tel. +80-22483007/8

Fax +49 (0) 6201 88-4094 91-9879524200/9844825835

cornelia.buchta-noack@freudenberg.de media@prhub.com

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