Fact Book

the world leader in premium cleaning, sanitation and service solutions

description of business
Business Overview Corporate Strategy Culture Statement Institutional Kay Textile Care Food & Beverage Professional Products Healthcare Vehicle Care Water Care Services Pest Elimination EcoSure GCS Service International Operations Support Functions Financial Objectives Shareholder Information 2 4 5 6 18 24 30 36 41 46 51 55 61 62 67 74 81 82

Founded in 1923, Ecolab is the leading global developer and marketer of premium cleaning, sanitizing, pest elimination, maintenance and repair products and services for the worlds hospitality, institutional and industrial markets. Headquartered in St. Paul, Minn., Ecolab reaches customers in North America, Europe, Asia Pacific, Latin America, the Middle East and Africa, employing more than 21,000 associates worldwide. Customers include hotels and restaurants; foodservice, healthcare and educational facilities; quickservice (fast food) units; commercial laundries; light industry; dairy plants and farms; and food and beverage processors. Products and services are marketed by the industrys largest and best-trained direct sales-and-service force, numbering more than 10,000 associates who advise and assist customers in meeting a full range of cleaning, sanitation and service needs. Ecolab common stock is traded on the New York Stock Exchange and the Pacific Stock Exchange under the symbol ECL. Ecolab news releases and other selected investor information are available by calling 1-800-FACT-ECL (1-800-322-8325) or via the Internet at www.ecolab.com.

All names appearing in italic type in the text of this publication are trademarks, brand names or service marks of Ecolab Inc., or Kay Chemical Co. In addition, Airkem, Raburn and Ecotemp are trademarks of Ecolab Inc. Lava is a registered trademark of Block Drug Co. Inc. Sparkle is a registered trademark of A.J. Funk. Endust, Behold and Ty-D-Bol are registered trademarks of Kiwi Brands Inc.

Historical Highlights
Since 1923, Ecolab has paid close attention to its customers needs, expanding its products and services over the years to meet all of their cleaning and sanitation requirements. Historical highlights can be found in the time line below. 1923 - M.J. Osborn envisions a society where the practice of dining outside the home will proliferate. His vision gives birth to Soilax, a chemical detergent for mechanized dishwashing and one of the first products marketed by Ecolab, which was then known as Economics Laboratory (EL). 1928 - EL introduces its first product dispenser, setting the stage for a total systems approach to cleaning and sanitation, which includes technologically advanced equipment, as well as superior products. 1950s - Prospective customers outside of the United States begin to inquire about ELs products, leading to the establishment of the companys first overseas subsidiary in Sweden in 1956, and eventually full-fledged worldwide operations. 1957 - EL founder M.J. Osborn and his son E.B. decide to turn their family-owned business into a publicly held company. At this time, employees control at least 25 percent of the companys common stock. 1961 - EL purchases Klenzade, known today as Ecolabs Food & Beverage Division, and begins to serve the agribusiness, beverage and brewery, and dairy and food processing markets. 1970s - ELs Institutional Division begins to broaden its offering with on-premise laundry, specialty and low-temperature warewashing products, and racks for washing, storing and handling glasses, dishes and silverware. 1980s - EL realizes it can best enhance value to its customers by offering products and services that satisfy a broader range of cleaning and sanitation needs. This idea gives birth to the companys Circle the Customer Circle the Globe strategy, and eventually three new divisions: Pest Elimination, Textile Care and Janitorial (now Professional Products). 1981 - EL introduces patented solid concentrates, which offer an unrivaled standard in performance, safety and ease of use. Originally developed for warewashing, solids technology is eventually adopted for other areas, including laundry, janitorial, food processing and water care. 1986 - Economics Laboratory Inc. changes its name to Ecolab Inc. and begins trading on the New York Stock Exchange under the symbol ECL. 1991 - Ecolab forms a joint venture in Europe with Henkel KGaA. Called Henkel-Ecolab, this joint venture strengthens the companys position in the global marketplace. 1994-95 - Ecolab takes its Circle the Customer strategy even further with the formation of its Water Care Services business and expansion into the quickservice industry through a new division, Kay. 1996 - Ecolab acquires Huntington Laboratories Inc. and combines its resources with those of its Janitorial Division, which is renamed Professional Products. It also purchases the Monarch Division of H.B. Fuller Co., which is integrated into the Food & Beverage Division.
M.J. Osborn

1996-97 - Heightened food safety concerns call attention to Ecolabs breadth and depth of products, programs and training to assist customers with ensuring public safety. 1997 - Strategic acquisitions continue to expand and strengthen Ecolabs global enterprise. Vehicle Care is added to a growing portfolio of services for customers. Global sales coverage, including the Henkel-Ecolab joint venture, continues to expand. 1998 - GeoSystem 9000 is introduced, bringing a new standard of product performance, employee safety and environmental stewardship to the warewashing industry. The company acquires its newest division, GCS Service, which provides commercial kitchen equipment repair services to customers throughout the United States. Ecolab celebrates 75 years in business. 1999 - Ecolab reaches another milestone as the company reports $3 billion in global sales coverage. 2000 - Ecolab enters into an agreement to purchase the remaining 50 percent share of Henkel-Ecolab joint venture it does not own. 2001 - A new era in Ecolab history began on Nov. 30, 2001, as the transaction is finalized that officially created one Ecolab in Europe and throughout the world. Now a $3.2 billion-plus company reaching customers in more than 160 countries, Ecolab welcomed more than 4,800 associates in 27 European countries into its growing global organization. 2002-03 - Showing its commitment to investment in the new Europe operations, Ecolab expanded its Pest Elimination business to Europe, and increased its overall Food & Beverage business in that region via strategic acquisitions. Ecolab also launched EcoSure Food Safety Management, a business that evaluates food safety procedures in food service and hospitality facilities. 2004 - In order to strengthen Ecolabs service to the growing North American janitorial and healthcare markets, in January 2004 the company separated those two businesses, both of which had previously operated within the Professional Products Division. The newly created Healthcare Division is dedicated to delivering growth in its specialized market. Professional Products, meanwhile, is now focused exclusively on developing opportunities in the janitorial market.

History

Business Overview
ECOLAB
Serving the hospitality, institutional and industrial markets in more than 160 countries, Ecolab develops and markets products and programs that meet a comprehensive array of cleaning, sanitation and service needs. In the United States, the company circles its customers with solutions through ten complementary business units: Institutional, Food & Beverage, Pest Elimination, Kay, Professional Products, GCS Service, Healthcare, Textile Care, Vehicle Care and Water Care Services. Internationally, Ecolab circles the globe, reaching customers in Europe, Asia Pacific, Canada, Latin America and Africa via direct subsidiaries, export operations, joint ventures, distributors and licensees. The companys Circle the Customer Circle the Globe strategy conveys its ever-expanding ability to surround customers with products and services, no matter where or when they do business, around the world.

SERVICES/PRODUCTS PROVIDED INSTITUTIONAL

Products, programs and services for the foodservice, hospitality and healthcare industries, including warewashing, on-premise laundry, housekeeping, water filtration and conditioning, food safety products, specialty kitchen and laundry products, and pool and spa management.

FOOD & BEVERAGE

Cleaning and sanitizing products, equipment, systems and services for the agribusiness, beverage, brewery, pharmaceutical, dairy, meat, poultry and food processing industries.

TEXTILE CARE
Cleaning and sanitizing products, programs and services, including water recycling and energy solutions, and data management systems, for commercial laundries serving the work wear, linen and healthcare markets.

GCS SERVICE
Service and parts for the repair and maintenance of commercial foodservice equipment.

VEHICLE CARE
Vehicle cleaning, protection and detailing products and services for full-service tunnel, quick-service in-bay, self-service and detail car wash operations and corporateowned transportation fleets.

KAY
Cleaning and sanitizing products, services and training programs for quickservice restaurants, food retail markets, movie theaters and convenience stores.

PROFESSIONAL PRODUCTS
Janitorial cleaning and floor care products, systems and services for the retail, building services and industrial markets.

PEST ELIMINATION
Service and technology for the detection, identification, elimination and prevention of pests in commercial facilities, as well as food safety audit and training services.

WATER CARE SERVICES HEALTHCARE

Products and services including healthcare personnel hand wash, surgical scrubs, cleaning and disinfection products used in processing surgical instruments and hard surface disinfection. Industrial water treatment products and services for boilers, cooling water and waste treatment systems.

Business Overview

NET SALES
(dollars in millions)

ECOLAB BUSINESS MIX 2005

International 49% Europe/Middle East/Africa 34% Asia Pacific 8% Canada 3% Latin America 3% Other 1%

$4,185 $3,762

$4,535

United States 51%

Institutional 25% Food & Beverage 7% Pest Elimination 6% Kay 5% GCS Service 3% Professional Products 1% Healthcare 1% Vehicle Care 1% Textile Care 1% Water Care Services 1%

2003

2004

2005

CUSTOMERS/MARKETS SERVED CUSTOMER SEGMENTS

Full-service restaurants Quickservice restaurants Hotels Food retail Schools Colleges and universities Laundries and textile rental Hospitals Nursing homes Other healthcare facilities Dairy farms and plants Food, beverage and brewery plants Pharmaceutical and cosmetic facilities Office buildings Shopping malls Retail facilities Movie theaters Recreational facilities Amusement parks Building service contractors Cruise lines Correctional facilities Government facilities Airlines Light manufacturing industries Vehicle wash and detailing

MARKETS
United States Europe/Middle East/Africa Asia Pacific Canada Latin America

ECOLAB STOCK PERFORMANCE

2003 Quarter First Second Third Fourth Low $23.08 24. 2 1 23.78 25.1 5 High $26.00 27.92 26.80 27.89 2004 Low $26.1 2 27.95 29.04 31.32 High $28.6 1 31 .77 31.80 35.59 2005 Low $31.20 30.68 30.75 30.93 High $35.08 34.23 34.1 4 37. 1 5

SALES-AND-SERVICE ASSOCIATES
(December 31) Institutional* Kay Pest Elimination Professional Products** Healthcare** GCS Service Textile Care Food & Beverage Water Care Services Vehicle Care Europe/Africa/ME Asia Pacific Canada Latin America Total 2003 3,1 90 275 1,645 180 535 80 405 95 1 00 3,285 1,01 5 340 540 1 1,685 2004 3,055 325 1,725 95 70 470 75 450 95 1 00 3,9 1 5 960 355 590 12,280 2005 3,1 55 350 1,830 90 80 470 75 425 1 25 1 00 4,1 50 995 375 690 12,9 1 0

ECOLAB STOCK PERFORMANCE COMPARISON

$38
Stock Price Ecolab Stock Price Index, Dec. 31, 2002 = 1.00 Ecolab Index, Dec. 31, 2002 = 1.00 S&P 500

1.60 1.50 1.40 1.30 1.20 1. 10 1.00 0.90

ECOLAB STOCK PRICE

$36 $34 $32 $30 $28 $26 $24 $22

ECOLAB, S&P 500 INDICES

*2004 decrease of 250 associates due to the sale of a grease management product line. **2004 reflects the separation of Healthcare from Professional Products.

4Q 1Q 2Q 2002 2003

3Q

4Q

1Q 2Q 2004

3Q

4Q

1Q 2Q 2005

3Q

4Q

Business Overview

Corporate Strategy: Circle the Customer

A straightforward and clearly defined strategy guides Ecolabs daily actions. Referred to as Circle the Customer Circle the Globe, this describes Ecolabs corporate strategy to continually expand the range of related products and services it offers to existing customers, no matter where they do business around the world. Proven successful for more than a decade, Circle the Customer Circle the Globe has guided Ecolabs associates and its business development across complementary business lines to create a range of additional product and service solutions for its customers. This has been and remains today key to Ecolabs continued success and growth. Circle the Customer Circle the Globe clearly manifests itself in all of Ecolabs core markets. For example, in hospitals around the globe, Ecolab has demonstrated its expertise in this demanding market through its innovative hand soaps and waterless antimicrobial rinses for patient care, floor waxes and polishes for public areas, and solutions for patient foodservice and employee cafeterias, all while maintaining a pest-free environment. At bottling plants, Ecolab provides advanced lubricants to keep the production lines running efficiently, leading-edge programs to clean tanks and fillers, thorough pest protection to prevent contamination, and operational savings for water usage with cost-effective suggestions. At local restaurants, as the global leader of cleaning and sanitation, Ecolab helps keep dishes and glasses sparkling, floors slip-resistant and free of grease, provides emergency equipment repair service for fryers, grills and dishmachines, and much more. And through the recent addition of MarketGuard, Ecolab offers food retail customers the benefits of one global partner that features a full line of outstanding solutions for all their cleaning, sanitation, floor and facility care, and pest elimination needs a winning combination that utilizes high product and service standards across multiple customer locations. Simply put, Circle the Customer Circle the Globe translates into an effective strategy to add new products, equipment and services to solve a broadening array of customer challenges around the world. Executing this strategy enhances the companys ability to help customers achieve safer food, germ-free surfaces and clean, sanitary surroundings. Clearly, this strategy enables Ecolab to fulfill its mission of providing premium results for a cleaner world. And just as the strategy benefits customers with multiple solutions to not only meet but also exceed their requirements, it provides outstanding long-term opportunities for Ecolab to continue its legacy of growth.

Corporate Strategy

SPIRIT
Ecolab associates are the companys heart and soul. Hungry to succeed and passionate to achieve, we embrace the unknown, fearlessly taking risks, confident in our ability to deliver results. We are eager and ambitious. We tenaciously persevere, surmounting obstacles with grit and determination. Above all, we find joy in our work, and in serving the company and our customers.

PRIDE
Exceptional service, exceptional products...We delight in presenting premium quality in all we offer. No matter how big the project, or how small the request, we strive for excellence in our response, for we relish perfection. We cherish our company, and represent it with honor.

DETERMINATION
Ambitious and aggressive, driven and determined, enthusiastic and energetic, we cultivate the opportunity to compete. We thrive on challenges, viewing them as an invitation to success. A true team, we work together to routinely please our customers, surpass our record achievements, and drive our organization to greater success.

COMMITMENT
Like a family, we are united by an unspoken pledge, bound by our convictions. We prize dedication, and are moved to help each other and our customers. We accept nothing less than loyalty in our ranks. We are true to each other and to our cause.

PASSION
We wholeheartedly believe in our company; its goals and objectives are our mission, and we enthusiastically embrace them and relentlessly pursue them. More importantly, we truly believe in each other, care, protect and support each other.

INTEGRIT Y
Professional. Reliable. Trustworthy. Honest. Our corporate integrity is a critical asset and we are committed to upholding it worldwide. We set high standards, and we abide by them as we practice business fairly and behave ethically. We share our expectations with each other and strive to maintain a work place built on mutual values, trust and goodwill.

Culture Statement

The No. 1 choice worldwide.

Institutional, Ecolabs core and largest division, addresses the cleaning and sanitation needs of the foodservice and hospitality markets with innovative programs in warewashing, on-premise laundry, housekeeping, long-term care facilities, water filtration, and pool and spa. It offers more than 700 products and systems, and a sales-and-service force thats over 3,000 members strong.

Institutional

Institutional
OVERVIEW
AT A GLANCE
Markets served: Hospitality Foodservice Education Lodging Healthcare Military Government Long-term care Services provided: Warewashing On-premise laundry Housekeeping Specialty cleaning Kitchen equipment Pool and spa Water filtration Strengths: Industry-leading sales-and-service force, backed by extensive support personnel; revolutionary products that address customers needs and provide premium cleaning and sanitation while promoting customer and environmental safety.

From the beginning, the U.S. Institutional Division has been the mainstay of Ecolabs business. The introduction of the companys first product in 1923, Soilax dishwashing detergent, set the stage for Ecolabs dedication to and expertise in warewashing, the practice of cleaning dishware, glassware and utensils. It also led to the development of hundreds of other products and services that meet the varied needs of institutional customers restaurants, hotels, motels, and long-term care facilities, schools, military facilities, prisons and clubs. In line with Ecolabs Circle the Customer strategy, the Institutional Division is committed to warewashing and provides an extensive range of complementary products and equipment to meet all of its customers needs. These products support cleaning and sanitation in foodservice, housekeeping, on-premise laundry, general cleaning and kitchen equipment. Ecolab also provides products and services for the treatment of drinking water, swimming pools and spas. Institutionals account base has provided opportunities for Ecolabs other divisions, such as Pest Elimination and GCS Service, to enhance their growth as the company reaches even further to provide solutions and fully develop its relationships with every customer.

Institutional

Institutional
WAREWASHING
As the market leader in warewashing, Institutional is known for its revolutionary products and outstanding service. Warewashing products include both machine and manual detergents for greater flexibility in procedures; rinse additives that reduce drying time and eliminate spots while adding sparkle; pot-and-pan cleaners that cut through the toughest grease and grime; and flatware presoaks that reduce cleaning time. Institutionals warewashing products deliver one-pass results while helping to promote employee and environmental safety. Convenient and easy to use, these concentrated products are precisely controlled and dispensed through Institutionals proprietary equipment, for the best possible results at the lowest possible use cost. Institutional set still-unrivaled industry standards in the 1980s, when it introduced a full line of proprietary superconcentrated warewashing products in a solid capsule form. Solid capsules are lightweight, compact, long-lasting and uniquely shaped to match the appropriate dispenser. These user-friendly features help operators eliminate misuse, increase safety and save time. In addition, they require less storage space and reduce waste. They are manufactured in several formulas, each designed to combat specific problems such as hard water and high TDS (total dissolved solids). Ecolab has leveraged its proprietary solid technology in other areas of cleaning and sanitation as well, and has ensured its competitive advantage in this leading technology through patent protection. In the 1990s, Institutional launched Vanguard , a warewashing system that includes six solid products and three warewashing dispensing systems. Vanguards Control Max and EcoMax dispensers have been hailed as the most significant warewashing equipment breakthroughs in 50 years. They feature technology that alerts dishmachine operators when conditions occur that could impair results, costs or efficiencies. In 1997, GeoSystem 9000 was introduced. This new generation of solids was developed using Ecolabs patented GeoFusion technology, which produces lightweight, shape- and color-coded blocks. These 100 percent non-caustic blocks contain powerful surfactants and builders that effectively remove the toughest soils and films from dishes, glasses and flatware. GeoSystems language-free design makes it easy to use, reducing training time and costly operational mishaps. Because GeoSystem products are nearly package-free, they take up less storage space and are environmentally friendly. GeoSystem also offers products for manual warewashing.

GeoSystem
1. Revolutionary solid product line for machine and manual warewashing. 2. Incorporates lightweight shape- and color-coded, non-caustic products designed to provide language-free ease of use.

Institutional

Institutional
Solid Endurance, introduced in 2000, is a high-performance detergent designed to combat tough water conditions, heavy food soils, poor procedures and/or difficult machine conditions. It has the power to deliver superior, one-pass warewashing results time after time. Solid Endurance Plus offers the added benefit of chlorine for maximum destaining power. Both products are uniquely packaged in a peanutshaped container to prevent product misuse. Products and equipment, however, are only a small portion of warewashing costs. In fact, cleaning chemicals only make up 6 percent of a customers total warewashing costs, as shown by the pie chart to the left. Half of the costs are for labor. Clear opportunities exist to help customers improve efficiencies across their warewashing operations through better management of energy, labor and breakage costs. Ecolabs territory managers also make regularly scheduled preventive maintenance calls to their customers, identifying problems that hinder results such as a malfunctioning dishmachine and assisting customers in solving these problems. In addition, territory managers train their customers staff in proper cleaning and sanitation techniques. As with Ecolabs other services, Institutional goes far beyond providing products.

ECOTEMP
Through its Ecotemp program, Ecolab offers customers a wide range of leasing options for warewashing equipment, products and services. Ecotemp puts state-of-the-art dishmachines into customers operations without capital expense and repair costs because theyre offered on a lease basis. Designed for use with Ecolabs premium solid and liquid warewashing products, they produce outstanding results at low use-costs. Ecolab also has the ability to customize solutions for any warewashing need or problem. Ecotemp embodies the Circle the Customer philosophy with its unique Route System. Ecotemp rout managers visit their customers on a regular basis to ensure dishmachines are working efficiently, and that the customers cleaning and sanitizing needs are being met. In addition to warewashing products, Ecotemp route managers also offer the entire line of Institutional products.

Warewashing Costs

Labor
Product 6%

Breakage Misc. Energy

Dishmachine
A machine used for the efficient mechanical washing and sanitizing of dishware.

Institutional

Institutional
FOODSERVICE WATER FILTRATION
Water filtration is very important to many of Ecolabs foodservice customers. The FresH2O Water Filtration and Conditioning Program the cornerstone of Institutionals water systems business, formed in 1998 provides systems that minimize off-tastes and impurities, ensuring non-odorous, good-tasting water for drinking and the preparation of food and beverages. Certified by the National Sanitation Foundation, FresH2O filters also remove potentially hazardous parasitic cysts from water. FresH2O Scale Control Systems protect foodservice equipment against damaging chlorineinduced corrosion and lime-scale buildup. This reduces water and energy costs, increases equipment performance and decreases equipment maintenance and replacement costs. Regular service is the hallmark of the FresH2O program. All product lines are installed and monitored by Ecolabs sales-and-service associates, taking the worry out of maintenance and filter replacement out of foodservice operators busy hands. Slime buildup is a leading cause of ice machine breakdowns, which can clog water lines and distribution tubes. Ice Sentry is a patented, EPA-registered breakthrough that features the controlled release of chlorine dioxide to inhibit growth of bacteria and fungi that create slime and cause malodors in ice machines. Both easy and convenient to use, Ice Sentry provides ongoing preventive maintenance of ice machines for foodservice customers.

SPECIALTY KITCHEN
Restaurants, hotels and healthcare facilities have diverse cleaning concerns. Thats why Institutional offers more than 100 specialty products to meet its customers unique needs in areas of kitchen sanitation and housekeeping. Because they solve customers problems, specialty products are an integral

component in the Institutional product mix. For example, Wash n Walk no-rinse floor cleaner is a one-of-a-kind enzymebased floor cleaner that literally eats the grease off of floor tiles and grout, creating increased friction and ultimately reducing the chance of slips and falls. Institutionals Grease Exxpress Program, meanwhile, offers restaurants and foodservice kitchen operators a Fast Foam Degreaser to quickly penetrate stuck-on-grease found on ovens, stove hoods and vents, and a High-Temp Grill Cleaner to break down grease and wipe it away while the grill is still hot. Both products significantly speed up the grease removal process. Specialty products such as these allow Ecolab to fulfill its strategy of providing customers with a complete range of products, equipment and service to meet all their interior and exterior needs. During service calls, Ecolab territory managers can identify additional on-site requirements and offer the appropriate solutions. This is convenient for customers, and it allows the territory manager to provide added value. For the foodservice kitchen, Institutional also offers a variety of general cleaning products that polish dull stainless steel surfaces, remove hard-water deposits and rust stains from equipment surfaces and tiles, and clean freezers, soft-serve yogurt dispensers and ice cream machines. In addition, the division provides solutions that enhance food quality and diminish the risks associated with cross-contamination, which can lead to foodborne illness. The Digits Hand Hygiene System helps prevent foodborne illness by helping make sure foodservice employees hands are properly sanitized with gentle-yet-effective hand soaps, sanitizers and lotions. Electronic dispensers track handwashing frequency, while fluorescent lotion and a unique glow box show employees any areas of their hands they may have missed.

Institutional

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Institutional
HOUSEKEEPING
For hotel and healthcare customers, Institutionals housekeeping products target the various surfaces that need to be cleaned and sanitized in these establishments including bathrooms, floors and walls. Ecolabs Oasis Select 4 system is an excellent example of how specialty products offer value to customers. This easy-to-use dispensing system is designed for use with up to four different solutions, providing a centralized location for product storage, dilution and dispensing. Concentrated Oasis Pro products which include bathroom, floor and carpet, all-purpose, and glass cleaners; disinfectants and sanitizers; and odor counteractants are color-coded for easy identification and diluted automatically with the push of a button ensuring consistent concentrations on-site to meet each customers individual needs. The packaging is environmentally friendly, using more than 25 percent post-consumer resin in the concentrate bottles and more than 35 percent recycled content in the shipping cartons, which are easily collapsed to minimize waste and storage. The First Impression restroom program was developed to target common cleaning and sanitizing issues in restrooms. The system includes touchless, automatic flushing and programmable dispensing of two products. First Impression Concentrated Fixture Cleaner in neutral and orange scents continuously cleans urinals and toilets, and First Impression miniaerosols effectively neutralizes and eliminates odors. To fulfill customers previously unmet need for a complete exterior cleaning program, Ecolab launched the Oasis Out-Back program. This program, which consists of a patented mobile unit or wall-mount dispenser designed for use with Oasis Pro cleaners, allows customers to quickly and effectively clean outside areas such as docks, dumpsters, windows, parking lots and sidewalks. The Oasis Pro housekeeping line is also an integral part of Institutionals Long Term Care Program, which combines a number of divisional offerings into one complete line of products designed specifically for nursing homes and assisted living residences. The program includes all-purpose cleaners, detergents, disinfectants and skin care items, which
Institutional

are used to address a facilitys total sanitation and disinfection needs, ranging from the kitchen and dining room to common areas and resident rooms. These high-performance Oasis Pro products are formulated to lower a customers total cleaning costs

by conserving water and energy, and reducing labor when combined with innovative dispensing systems, application tools and employee training programs.

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Institutional
POOL AND SPA
Visually appealing, fresh-smelling swimming pool and spa water is an essential part of providing positive guest experiences in hotels, motels and resorts. The Aqua Balance Pool and Spa Management program gives Ecolabs customers in the lodging industry a comprehensive, convenient way to keep their pools and spas clean, clear and trouble-free. Aqua Balance features around-the-clock, remote monitoring of pool and spa water via computerized controllers, which automatically make chemical adjustments when necessary. There is a reduced need to close pool facilities for cleaning, and pH and chlorine imbalances serious enough for pool shutdowns are virtually nonexistent. Since Aqua Balance automates water maintenance, it minimizes hotel employees exposure to chemicals and the need to handle large drums of product. The programs proprietary, hexagon-shaped chlorine tablets maintain consistent water quality without causing itchy, burning eyes. They also eliminate corrosion and scale, thereby extending the life of the pool and its systems. With Aqua Balance, customers not only receive equipment, products and remote monitoring, but also regular service calls from Ecolab field associates who have been certified as pool operators by the National Swimming Pool Foundation. They are trained to fully understand pool and spa equipment, maintenance, and injury prevention, helping Ecolab provide added value to its customers.

ON-PREMISE LAUNDRY
Institutional is the leading supplier of on-premise laundry (OPL) products and dispensing equipment in North America. Typical OPL customers, those who process their own linen and uniforms, include hotels, large restaurants, nursing homes and hospitals. (Ecolabs Textile Care Division, on the other hand, serves large, off-site commercial and industrial laundries.) For many customers, the same territory manager who serves their warewashing needs also services their OPL needs. To address the unique needs of customers in the lodging and healthcare industries, however, Ecolab has established a group of field associates who specialize solely in the areas of OPL, housekeeping and pool and spa. Ecolab continually sets industry standards in OPL with innovative systems that are reliable and simple for customers to operate. Products for the OPL market include a variety of detergents, boosters, bleaches, fabric softeners, starches and stain removers. The products are dispensed through equipment specifically designed to ensure accuracy and consistent results, while helping to reduce the chance for misuse. Navigator, for example, defines state-of-the-art industry standards in OPL by leveraging Ecolabs patented solid product technology. Navigator features a simple control knob that can be custom-programmed to handle up to 10 different soil
Institutional

On-Premise Laundry

(OPL) 1. A laundry located on-site to meet the linen laundering needs of that business, but whose major business is not laundering, i.e. a hotels OPL would launder sheets, towels and table linens for that hotel. 2. Ecolab makes OPL operations cost efficient and convenient with complete laundry systems, including

Formula 1, Navigator, Solid System IV, AeroLite, Eco-Star/Eco-Care,Tri-Star and X-Pert.

levels and fabric types. Smart dispensing ensures the proper laundry chemistry is dispensed in every washload and reports a variety of operational details, such as load-count information, at the push of a button. Navigator also boasts light-up icons and audible signals that alert users when the solid product capsules need to be replaced. The Formula 1 laundry system significantly reduces water and energy costs in OPL operations through the use of a single product system that eliminates unneeded steps in the laundry wash process. Its unique dispensing/ packaging system combines multiple laundry products - water conditioners, surfactants, builders, enzymes, and optical brighteners inside a single capsule.

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Institutional
To use the innovative system, a customer lifts the lid on the dispenser, inserts a single capsule of product into the dispenser, closes the lid and hits the start button. Water rushes inside the dispenser, spraying out the capsule, and fills the holding tank. A pump inside mixes the solution, and, when needed, pumps a set amount of the pre-diluted, active product to up to three onsite washing machines. When the tank needs to be replenished, a visual and audible alarm is activated, the old capsule is removed and a new capsule is inserted. Solid System I/II brings the added benefits of automated dispensing, compact solid products, and the safety of a closed system to home-style laundry machines. Available as either a single product system or a two product system with detergent and bleach to best meet the customers needs. The Eco-Star/ Eco-Care laundry systems for highvolume OPLs combine the best chemistry available into a group of comprehensive solutions, utilizing built-in pick-up probes and quickconnect, color-coded tubing connectors that minimize errors and the need for special training. In addition to these superior systems, Ecolab offers solids for home-style laundry machines, along with a complete line of powders and 5-gallon liquid products. As with warewashing, products constitute only a small portion of laundry expenses. Labor and damaged laundry, for instance, generally account for 49 percent and 11 percent of overall costs, respectively. To help ensure the most efficient and cost-effective laundry operation possible, Ecolabs sales-and-service associates work with the customers staff to educate them on safe machine operations and product usage. Solutions such as Stain Blaster, an easy-to-use stain removal system, help reduce expensive linen replacement costs. to accommodate traditional place settings, as well as custom sizes for unusually shaped wine glasses, dessert dishes and stemware. Color-coded, heavy-duty plastic racks allow customers to identify the type of glassware at a glance and are manufactured to offer the ultimate protection for even the finest china. Ecolabs Raburn line goes far beyond warewashing racks and laundry carts. Equally important is an extensive selection of safety and compliance solutions. These offerings help customers manage issues that, when ignored, can lead to injury or expensive fines. For instance, as required by the U.S. Occupational Safety and Health Administration (OSHA), the Material Safety Data Sheet Information Center keeps Material Safety Data Sheets visible and accessible to employees at all times. The Biohazard Clean-up Kit helps customers properly clean up and dispose of potentially infectious waste. Raburn is also aiding the fight against foodborne illness with its THINK Food Safety program, an innovation in food safety, service, products, training and awareness. It includes a variety of products and systems to ensure food safety. For example, the Thermo-San thermometer sanitizing center incorporates a storage rack for holding and sanitizing both clean and used cooking thermometers, and is utilized with Mikroklene Food Contact Surface Sanitizer. Also available is a replaceable cutting board system that contains six color-coded boards, each designated for use with just one type of food meat, fish, poultry, fruits and vegetables, or dairy to help prevent cross-contamination and the spread of foodborne illness. In addition, the Sanitizer Testing Station helps guarantee proper kitchen sanitation by providing a convenient, central location for supplies used to test kitchen sanitizing solutions.

RABURN
Institutional kitchens and laundries have a variety of special purpose equipment needs, which Institutional meets through its Raburn business. For instance, commercial dishwashers need racks to hold glassware, dishware and flatware during the cleaning process and storage. Institutionals Raburn business manufactures these premium plastic-molded racks, leveraging its more than 25 years of rack design and production experience. Theyre available in standard sizes
Institutional

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Reaching the Customer

VALUE ADDED SALES/SERVICE FORCE
Institutional reaches customers through a direct sales-and-service force and distributors. The value added service is provided by Ecolabs direct sales force, and that product is available through multiple channels of distribution to satisfy the needs of the customer.
S E RV I C E

In the United States, Institutionals direct sales-and-service force is the industrys largest. Based in every state, these associates cover both metropolitan and remote locations. Each territory manager sells the full spectrum of Institutional products and services to all types of customers from warewashing and on-premise laundry to Raburn. Service is the Institutional Divisions hallmark, and Ecolab sets the industry standard. Associates focus on providing customers with 360 of Protection, surrounding customer operations with a comprehensive array of cleaning and sanitizing solutions. With the largest breadth of products, services and support available, Ecolab can customize programs around the specific needs of each customer. The Institutional Division emphasizes training in the development of its territory managers. Each territory manager receives in-depth training at Ecolab University Ecolabs state-ofthe-art global training center in St. Paul to learn the mechanics and intricacies of warewashing, laundry, housekeeping, water filtration and service. New territory managers also work extensively with an experienced territory manager in an apprentice relationship before taking on their own sales territories and direct customer responsibilities.

Territory managers have broad account responsibilities, but the overriding directive is service to customers. A territory manager may oversee anywhere from a handful of accounts to several dozen, depending on the intensity of specific customer service needs, and the size and location of the territory. Since service to the customer is the prime objective for Institutionals territory managers, they effectively build problem-solving relationships with customers. They make regular visits to ensure that customers needs are being met, and products and systems are delivering superior results as promised. Territory managers also consult with customers to solve related cleaning and sanitation problems, often referring Ecolabs other divisions such as GCS Service or Pest Elimination to the account. For concerns requiring a specialized analysis or technical assistance, territory managers call on Ecolabs research scientists and extensive technical support system. In addition, territory managers train customers employees, communicating the importance and fundamentals of cleaning and sanitation. This in-house training helps ensure that employees in every business that uses Ecolab products are fully trained on the basics of sanitation and proper usage of products, as well as kept up-to-date with health regulations and practices. Should customers have questions or needs between visits, they can reach their territory managers 24 hours a day, every day of the year, by contacting 1-800-35-CLEAN, Ecolabs toll-free national customer service center, which serves as a crucial communications link.

EQUIPMENT

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PRODUCT DISTRIBUTION CHANNELS

Some customers prefer the convenience and advantages of one-stop shopping one purchase, one bill, one vendor and smaller orders delivered frequently. Ecolab offers its products on a direct sales basis or through a nation-wide network of carefully chosen wholesale food and hospitality industry distributors. Through this distributor network, a customer receives the same Ecolab products and service, but has these products delivered by their primary foodservice provider. Ecolab is the only supplier in the field to offer both strong direct and distributor purchasing options. Ecolabs sales development managers work with more than 500 foodservice distributors across the country to coordinate the sale of product lines and provide training and ongoing service for the distributors and their customers the end-users.

CORPORATE ACCOUNTS
Many multi-unit chain corporations serve the hospitality and foodservice industries. These corporate accounts represent the largest component of Institutionals business. Ecolab provides these corporate accounts with a service guarantee: Every glass in the restaurant and every room in the hotel will receive the same service, consistency and cleanliness in each location worldwide. Ecolab takes total responsibility for customer results, and multi-unit accounts can rest assured that their customers will see the same high standards of cleanliness no matter which location they visit. Attesting to the high level of service Ecolab provides, many major hospitality chains have chosen Institutional as their worldwide supplier. Ecolab is able to consistently provide quality in products, systems, service and pricing through its broad North American network, as well as worldwide. To coordinate operations and guarantee success in this market, Ecolabs Corporate Accounts team works with each accounts headquarters to determine customer needs and develop effective programs to respond to those needs. They coordinate Ecolabs efforts through Institutionals local sales associates, who are directly responsible for the customers individual units. The local field associates are key to communicating the individual units needs to corporate accounts to keep the lines of communication open. By utilizing the EDGE Advisor, a palmsize computer small enough to fit into the pocket of a service coat, territory managers are able to provide customers with account-specific product and pricing information instantaneously. As part of its service to corporate accounts, Ecolabs service reporting system provides detailed information to unit management about Ecolabs services and preventive maintenance. The EDGE report, which is completed by local territory managers, is the start of the process. All reports are compiled by Ecolab and condensed on a monthly basis for each corporate account. This provides an audit function for the organization, shows Ecolabs thoroughness, and provides opportunities for Ecolab to enhance the products and systems it provides to customers. The service reporting system ensures that the customers entire organization understands Ecolabs impact and value.

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An Institutional Service Call

The typical Institutional territory manager (TM) divides the day between calls on prospective customers, existing customer checkups and maintenance visits, including the installation of new systems, equipment and training for customer employees. TMs service accounts at regular intervals usually monthly or more often depending on an accounts size and unique needs. The crucial link in the TMs operations is our national customer service center. Our customers call Ecolabs customer service center, which operates 24/7/365 days per year, for customers to place orders or to request emergency service. TMs have cell phones that notify them right away of urgent customer requests for service. The TMs respond to a customers emergency situation, such as a dishmachine breaking down during a restaurants lunch hour. After the emergency service is complete, our customer service center will call our customers back to assure complete satisfaction that their request for extra service was handled properly. A TMs territory in Montana may cover a wide geographic area, while a TMs territory in New York City may be concentrated within a 16-block radius. Yet each TMs typical day can be quite similar. In most geographic areas, they handle hotel, restaurant, healthcare and school accounts, which purchase Institutionals warewashing, on-premise laundry, housekeeping, pool and spa and specialty products and equipment. The following is an example of what a typical service call entails. The TM checks in with the manager in the kitchen and begins the service call by examining the dishware, glassware and flatware to make sure they are not only clean, but also spotless. Institutional guarantees premium results and total appearance is part of the package. The TM also examines the dishmachines that use Institutionals warewashing products. The TM checks the rinse and washwater temperatures, water consumption levels, and all mechanical parts to assess whether the machines are running properly, products are being dispensed in the correct concentrations for the customers water conditions, and that there is no waste. Following this review, the TM completes a service report noting the problems found, actions taken and recommendations, as well as the customers current product inventory. The TM will review the service report with the customer and discuss additional solutions, such as food safety recommendations and risk management solutions found in our 360 of Protection program. This program helps identify critical risk factors that can result in potential health code violations and foodborne illness incidences for our customers. Ecolab then provides essential product solutions designed to work together to both clean and sanitize operations and provide 360 of confidence for our customers. This helps our customers understand all of the powerful offerings Ecolab can provide for their entire operation. Immediate access to customer specific information, such as water parameters, sales history and receivables is at the fingertips of the TM through systems such as the Tablet PC and the EDGE Advisor. These powerful tools can help answer a customers questions right on the spot. While servicing the kitchen, the TM looks for opportunities where additional Ecolab products can be used to solve customer problems. For example, the customer may have a need for solutions to help reduce slips and falls accidents in their operation. Wash n Walk floor cleaning technology does that and much more. This patent-protected formula eats
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away at tough grease that builds up on the kitchen floor and in the grout areas. The program saves time, labor and water sweep, apply the product, brush, squeegee to the drain, and walk away. No rinsing required. In fact, the enzymes work long after youre done cleaning. In addition to this product solution to help reduce slips and falls, Ecolab has rubber floor mats and other safety equipment. All of the solutions work together to provide our customers the best solutions. In another example of providing new solutions to customer problems, the TM may complete the service call by talking about the Digits Slim-Line system, which features foaming hand soaps with a slim, attractive dispenser designed specifically for front-of-house restrooms. This system provides customers a unique foaming hand soap system, promoting regular hand washing. Ecolab also provides in-service training for the customers kitchen employees, and the TM schedules times to meet with the staff to discuss areas of interest. Ecolab territory managers regularly review products, procedures, and safety and health department regulations with Ecolab customers and their employees. The TM notes information discussed with the manager on the service report, including the date of the next scheduled service call. If the customer also uses Ecolabs housekeeping products, the TM meets with the manager of the housekeeping department. They generally discuss any problems that may have occurred since the last service call. They perform inspections on areas such as guest rooms and public spaces. The TM reviews findings and recommends tools for efficiency in cleaning, training programs to aid in improvement of procedures, and products for total cleaning and sanitation. If the account is an on-premise laundry customer, the TM also services the laundry area. As part of this service, the TM conducts in-depth onsite training with laundry employees, including the safe use of products and the review of proper procedures. At any point during the visit, the TM can immediately input product and equipment orders into the Tablet PC or the EDGE Advisor, which can transmit ordering information electronically via phone modem. Once the TMs service call is complete, he or she reviews their daily plan sheet. Then its off to the next scheduled call. And finally, at the corporate level, the Institutional Corporate Accounts team provides formal and informal business reviews with our customers, providing valuable insight to key problem areas and identifying total Ecolab solutions through products, equipment, programs and comprehensive support to help keep all of their operations running smoothly.
Ecolab territory managers regularly review product safety and health department regulations with Ecolab customers and their employees.

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Leading the quickservice and food retail industries.

Long regarded as the cleaning and sanitation leader in the quickservice industry, Kay is quickly earning the same reputation in the food retail industry. Kays highly effective products and systems provide customers with the benefits of brand protection, food safety, customer and employee safety, cost savings and ease of use.

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Kay
AT A GLANCE
Markets served: Quickservice restaurants Food retail establishments Convenience stores Theatres Services provided: Kay offers brand protection and enhancement through customized cleaning and sanitation programs designed to reduce labor costs while increasing sanitation levels, cleaning performance, employee and guest safety, and equipment life. Its highly effective products are backed by employee training programs, ongoing research and development, field service, in-store electronic surveys, and regulatory and technical support. Strengths: Kay has more than 70 years of experience in cleaning and sanitation and a true understanding of the unique needs of the industries it serves. Kays cleaning and sanitizing products and services are customizable to meet the needs of chain customers, whether they operate in one country or globally.

Kay, an Ecolab company, is the leading global supplier of cleaning and sanitizing products and services to the quick service restaurant industry - an industry that accounts for nearly half of U.S. restaurant sales. Building on knowledge gained in this industry, Kay has emerged as a leader in the domestic food retail services market and continues strengthening its presence in the convenience store and theatre industries, developing new products and customized programs designed to meet specific industry needs.

OVERVIEW

Division

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KAY
THE MARKET AND ITS NEEDS
Like many segments of the foodservice industry, quickservice restaurants, food retail service establishments, convenience stores and theatres require not only cleaning and sanitizing products, but customized solutions for their specific environments. This is Kays area of expertise. Kay began its relationship with quickservice restaurant chain customers 40 years ago, quickly learning the demands of the marketplace good food at a low price, in a hurry. Today, Kays customers must meet these demands while maintaining the highest levels of cleanliness, sanitation and safety. In a fast-paced industry with high employee turnover, heavy foot traffic and increasing language barriers, these standards can be difficult to maintain. Kay partners with its quickservice customers to help them meet these ever-changing challenges offering in-depth knowledge of the soils produced by each customers unique environment. This technical understanding of restaurant-specific soils allows Kay to customize products, dispensing systems and comprehensive training to help customers meet the highest standards in the most challenging environments. Consider Kays floor care systems products designed for maximum effectiveness on restaurant-specific soils are mixed to exacting standards using equipment that Kay provides. The equipment is designed for safety, simplicity and ease of use. Ease of use means cleaner floors in less time, better customer perception and a lower risk of slip-and-fall accidents. All Kay systems are designed to work in this way increasing cleanliness, sanitation and safety while reducing customers costs. Kay launched its food retail service program in the mid-90s. In the years since, Kays industry-specific products, field service and training, and electronic audits have garnered a healthy share of this market. Whatever the customers cleaning and sanitation needs, Kay is the source for the customized solution. Kays electronic food safety and sanitation audits are tailored to fit its customers operational needs. Data gathered on a store-by-store basis is accessible in secure online reports, available in real-time to help management identify best practices and quickly target improvement areas. To reinforce proper cleaning and sanitizing procedures, Kay representatives conduct ongoing training. This is critical in delis, meat, seafood and other fresh departments where cross-contamination is a risk. Kay began its international expansion in 1991, partnering with one U.S.-based quickservice restaurant customer in Canada. In the years since, Kay has developed a presence in more than 100 countries, growing with its domestic customers wherever they expand in the world and building new partnerships with quickservice chains based abroad. Kays international chains benefit from global programs that are customized with the help of Kay associates in each market. Native to these markets, associates provide in-depth knowledge and understanding of the unique cultures in which Kay operates. Training materials and packaging are developed in the languages of each country, and Kays regulatory professionals provide comprehensive support to ensure all programs adhere to local regulations.

Kays SpotMop is the quick and easy way to clean up spills and other messes on a variety of floor surfaces.

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KAY

Knowledge and ideas gained from successes in the food retail industry have led to the development of an innovative new program called MarketGuard. Launched in 2003, MarketGuard is a comprehensive program for the food retail industry and an embodiment of Ecolabs Circle the Customer strategy. It brings several of Ecolabs divisions and strengths together in one package floor care, food safety, pest elimination and focused employee training. Brand protection and enhancement are achieved by using the broad range of Ecolabs capabilities and making those capabilities accessible through a single point of contact. MarketGuard is currently used in the majority of the top 10 major grocery chains.

The 3-in-1 Cleaning System simplifies the wash, rinse and sanitize procedures mandatory in food retail's fresh departments.

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KAY

SALES AND SERVICE

The MatchUp System features a geometric lockout to help ensure the right product goes into the right spray bottle.

THEATRES
Today, Kay is building an ever-stronger presence in the global theatre market with industry-specific products like Popper Cleaner & Degreaser and the Atomizing Deodorizer System, which uses an atomizing "fogger" to dispense odor counteractants in auditoriums. These products are part of Kay's customized theatre programs, which include training for managers, employees and even third-party cleaning contractors, which are predominant in the market.

Kay supports its customers through a two-part sales organization. First, its Corporate Accounts team develops programs in partnership with the parent company or chain headquarters. Once programs are approved, Kays territory representatives support these programs with training at the store level and by managing store-level sales, service, equipment maintenance and food safety standards. Kay territory representatives are often hired as specialists from within the industries they will serve. Building on the knowledge and experience they bring to Kay, they spend a quarter of their first year as an associate in focused training specific to their market. This level of specialization is what sets Kay representatives apart. They are cleaning and efficiency experts, problem solvers and trainers. All Kay territory representatives are ServSafe trained and take part in National Environmental Health Association training to become Certified Food Safety Professionals.

Kays customized programs can quickly be adapted to new markets, such as the theatre industry.

The Exacta Systems modular, wall-mounted design is versatile and space saving. Kay

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A Kay Service Call

The daily routine of a Kay territory representative is hardly routine at all. Representatives work with store management and employees to provide training and consultation critical service components because of the high employee turnover in the industries Kay serves. The frequency of representatives visits and levels of service are determined by the type of customers and their operational needs, which can include group instruction for management and employees on a regional level as well as one-on-one, in-store training focused on cleaning and sanitation tasks. In the quick service restaurant industry, Kay territory representatives can be found performing preventive maintenance on auto-dispensers and conducting training through hands-on demonstrations. Representatives roll up their sleeves and show by example the best way to boil out deep fryers and shake down shake machines. Mop in hand, Kay representatives demonstrate the proper way to clean a floor helping to decrease the risk of slip-and-fall accidents. They clean grills, walk-in refrigerators and food preparation surfaces with employees and managers to help to ensure each job will be done correctly. In food retail service stores, Kay representatives conduct food safety audits, grading food handling and storage procedures. And when improvements are necessary, Kay representatives help implement changes through the establishment of proper procedures and comprehensive training. Because of the risks involved in handling ready-to-eat foods, Kay representatives partner with customers to develop in-depth processes for breaking down, cleaning and sanitizing equipment such as meat slicers and rotisserie ovens. Representatives conduct training in food retail stores to ensure that these methods are followed. No matter the industry, insights gained through hands-on service are put to good use by Kay territory representatives. They offer reviews of customers program performance and introduce innovative products. Their first-hand experiences help them identify problem areas and develop solutions, ensuring that Kay can continue delivering products and ideas that help its customers operate safely and efficiently.

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Meeting large laundry needs.

For large commercial laundries serving the textile rental, industrial laundry and healthcare markets, Ecolab offers specialized services through its Textile Care Division. Textile Cares wide and varied offering is unmatched in the industry.

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Textile Care
AT A GLANCE
Markets served: Large commercial laundry operations that serve the textile rental and industrial laundry markets. Services provided: Custom-designed wash programs incorporating premium products and dispensing equipment, superior service and technical support to obtain optimum performance and cost effectiveness. Strengths: Sales-and-service force knowledgeable in laundry chemistry, backed by premier technical support staff; full line of laundry products and dispensing equipment that helps enable customers to achieve results while conforming to local safety requirements.

Large commercial laundry operations that serve the textile rental, industrial laundry and healthcare markets count on Ecolabs Textile Care Division for products, systems and services to meet their complex needs. The commercial laundry market is a natural for Ecolab. With its broad product and service expertise, Ecolab supports every type of processor in the textile care industry. Because customers differ in size, technology and service requirements, Ecolab has segmented this market into two groups. Through the Institutional Division, Ecolab offers products and programs for on-premise or on-site laundries. Most are found at hotels, hospitals, restaurants and nursing homes, where the association with Institutional grows as an extension of the divisions warewashing programs. These laundries typically process less than 1 million pounds of linen a year, using stainless steel front-loading machines that handle wash loads up to 100 pounds. Recognizing the market need for products and services relevant to larger and more complex systems and the corresponding opportunities Ecolab formed the Textile Care Division. Its customers process at least 1 million pounds of linen annually, with some plants processing up to 100 million pounds a year. These large-scale operations require products and dispensing systems designed specifically for their larger-capacity machines.

OVERVIEW

Division

Tu r b o
Ultraconcentrated liquid systems for the cleaning of industrial fabrics.

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Tu n n e l w a s h e r
1. Large capacity laundry washing machine, handling up to 4,000 pounds of linen per hour. A computer controls and monitors the system. 2. Textile Care provides the products, dispensing systems and expertise for the unique technology of tunnel washers.

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Textile Care
Textile Care caters to commercial laundry customers through its own separate sales-and-service force, which is knowledgeable and trained in the technology of this market. It offers a comprehensive line of products, including liquid and powder detergents; alkali and sours (pH balancers); bleaches; optical brighteners; starches; fabric softeners and conditioners; and prespotters and stain removers. Textile Care also markets the industrys most advanced liquid dispensing systems to ensure consistent and accurate delivery of product to the washing machine. Dispensing systems reduce product handling and waste, thereby decreasing labor and chemical costs and helping to increase employee safety, while assuring accurate and precise product dosage for maximum quality results.

SALES AND SERVICE

Contributing to Textile Cares market leadership is the extensive knowledge and experience of its sales-and-service force, known as commercial laundry specialists. Many have more than 15 years of experience in the field, giving them an in-depth understanding of customers concerns and an aptitude for problem solving. These specialists typically come to Textile Care with experience in the industry often in positions within commercial laundry operations and have experienced the challenges firsthand. Textile Care supplements their experience with formal training in areas including laundry chemistry, product characteristics, wash formulas, washroom equipment and chemical safety. The division also conducts workshops to keep specialists abreast of new procedures, products and equipment; environmental issues; and related business topics. Textile Care representatives are highly regarded in the laundry industry and have been recognized with many awards for individual and organizational commitment to the profession. This includes perennial honors by the National Association of Institutional Linen Management, one of the industrys premier trade associations, as well as the United Textile Services Association. This industry commitment best manifests itself in the specialists extensive knowledge of laundry chemistry one of their most valuable assets to customers. They not only have an in-depth understanding of laundry chemistry, but a strong knowledge of wash aisle operations and complexities of commercial washing machines. Most importantly, they understand the relationship between chemistry and machines
A d v a C are
Low-temperature laundry system for both healthcare and hospitality soils.

THE MARKET AND ITS NEEDS

Textile Cares primary customer base includes large commercial laundry operations such as textile rental laundries, which handle many types of linen, from tablecloths and napkins to bedding and towels; healthcare laundries; and industrial laundries, which process and deliver to customers uniforms, shop towels, floor mats, and other linens. The division also serves more specialized operations, such as shirt, diaper and cleanroom laundries, as well as large institutions, such as universities. Because the types of soils and nature of linen being processed vary by customer, Ecolab offers a variety of products and programs to meet each customers needs. For example, with healthcare laundries, blood stains are a common problem and sanitation is critical. By comparison, industrial laundries contend with petroleum oil and grease. With restaurant linen, food stains, such as cooking oils and butter, are a key problem. The divisions goal is to provide exceptional cleaning, whatever the customers needs, while extending the useful life of linen and reducing customers overall operating costs.

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Textile Care
and can custom-design wash programs accordingly. Laundry chemistry is a complex science and takes into account fibers and fabric construction (naturals vs. synthetics, blends, dyes, finishes); soil characteristics (types and interaction with fabric); wash classifications (linen color, type and degree of soil, fiber content); detergency (the washing process soil and stain removal, rinsing and neutralization, and how it is affected by time, temperature and mechanical and chemical action); and water chemistry (hardness, alkalinity, chlorine). Ecolab offers this expert consulting to help its customers control costs. Textile Cares technical service staff also provides all training and post-implementation evaluations associated with new programs. The division has staff specialists who provide technical service support in the field. They assist the sales force by traveling to customers locations, conducting in-depth training and providing extra services, such as troubleshooting or new product and wash formula optimization. Other technicians located at the research headquarters are dedicated to research and analysis for the specialists, such as identifying specific stains and prevention methods, providing wash formulas and answering questions on equipment installation. The technical service staff fields more than 400 calls a month.

Labor

Water

Chemicals

Laundry Efficiency Circle

Sewage Fabric Use Life Energy

TECHNOLOGY
Many of the divisions offerings optimize energy and water use to improve equipment performance. The Aquamiser Water Reuse System filters wash water for re-use in pre-wash cycles, reducing water consumption in continuous batch washers and lowering overall wastewater treatment costs. The Energy Optimizer Heat Exchange Unit uses effluent heat to raise the temperature of incoming cold water for immediate use in rinsing and pre-wash cycles, resulting in huge energy savings. Precise product delivery is available with the Catalyst Plus System, which uses a combination of electronics, flow measure and monitoring to ensure consistent processing results. Ultraconcentrated Turbo products minimize volume usage and inventory, while advanced information management systems provide the feedback necessary to maximize washroom efficiency, including easy-to-read productivity, consumption and exception reports. These reports, either reviewed with laundry managers in person or viewed on-line through their desktop PCs, are used to determine areas of improvement.

ADDITIONAL FUNCTIONS COMPLETE THE CIRCLE

Textile Care completes its circle of customer support with several additional functions. Like all of Ecolabs divisions, Textile Care has a corporate sales group dedicated to meeting the unique needs of chain accounts. As the trend toward market consolidation continues, this has become an increasingly important facet of the business. Also, like other Ecolab divisions, Textile Care offers a distributor program to reach customers who prefer to purchase laundry chemicals, along with other products, from one supplier. Shirt laundries are a key market reached through distributors. Commercial laundry water management is another service Ecolab offers its customers in partnership with Ecolabs Water Care Services Division. This service specifically addresses the unique wastewater issues of the commercial laundry industry.

EcoStar 1500
1. Microprocessor-controlled automatic injector delivers up to eight different products through independently timed pumps. 2. Consistent quality with accurate and precise control of product delivery. 3. Programmable formula options can be customized to suit specific needs.

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A Textile Care Service Call

Textile Care commercial laundry specialists make several calls per day to the large laundries served by the Textile Care Division. This includes regularly scheduled service calls to existing accounts, as well as meetings with potential customers. The customers they serve process more than one million pounds of laundry a year. The following is an example of what a regular service call entails. The commercial laundry specialist calls on this account, a central laundry operation that serves a number of area hospitals, on a monthly basis. The account processes up to 30 million pounds of linen annually. This central laundry has four tunnel washers and four 450-pound capacity machines. The commercial laundry specialist starts the service call by asking the plant manager whether there are any particular concerns. The specialist then examines every aspect of the laundry operation. This includes an hour-long examination of equipment looking for problems, such as water leaks, which can rapidly drive up costs. The specialist then follows several loads of laundry through their entire cycles, testing to make sure wash formulas the combination of product, water, temperature and cycle times are correct for the types of linen being processed, and making adjustments as necessary. The proper combination is essential to help ensure clean, sanitized linens, especially in a healthcare setting where there is a greater risk of spreading infection. Training of laundry employees is key to achieving premium results, so the specialist makes sure that employees are following proper laundry procedures. This is in addition to periodic in-service training sessions that the specialist conducts with laundry employees on the safe and proper use of products. Throughout the service call, the specialist documents observations using a laptop computer. A customized software program allows the specialist to have instant access to a complete washroom history; past service reports; wash formula details; product usage and inventory for specific time periods; and energy, water, productivity and consumption statistics. This kind of continuous monitoring and control allows for improved overall efficiency and maximum washroom results. At the end of the service call, the specialist and plant manager review the service report, discuss findings and opportunities for improvement, and schedule the next months appointment.

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Keeping food healthy worldwide.

Nowhere is sanitation more critical than in the food you eat and the beverages you drink. With superior products, equipment and programs, Ecolabs Food & Beverage Division the leader in its markets helps facilitate their production for safe human consumption.

Clean-in-Place (CIP)
1. An accurrate, efficient computerized dispensing program and system used during a plants cleaning cycle to clean and sanitize processing lines, tanks and filling equipment that carry food, beverage and dairy products. 2. Without CIP technology, pioneered by Ecolab, processing lines and pipes must be dismantled for cleaning and sanitizing.

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Food & Beverage

OVERVIEW
AT A GLANCE
Markets served: Dairy plants Dairy, poultry and swine farms Food processors Fruit and vegetable processors Meat and poultry processors Beverage and brewery processors Pharmaceutical and cosmetic manufacturers Food and product safety is the divisions business. Services provided: Custom-designed dispensing and control systems; premium detergents, cleaners, sanitizers and lubricants; and water treatment tailored to each market sector. Strengths: Complete premium cleaning programs coupled with proprietary dispensing equipment for dairy, beverage and food producers and farmers, backed by a highly trained sales-and-service force.

Cleaning and sanitation must begin at the start of the food chain, long before dishes reach the table. Through its Food & Beverage Division, Ecolab provides cleaning and sanitation products, programs and expertise to dairies, farmers, food and beverage processors, and breweries, to help facilitate the production of products safe for human consumption. In addition, Food & Beverage is leveraging its expertise developed in serving the process manufacturing industry to serve pharmaceutical and cosmetic manufacturers.

Division

The base is broad, and perhaps nowhere is the need for proper sanitation and cleaning more critical. The market leader in the dairy plant, agribusiness (dairy farm), beverage and brewery sectors as well as possessing a growing presence in the multi-faceted food processing arena Food & Beverage provides such customers with premium detergents, cleaners, sanitizers and conveyor lubricants to help ensure safe processing of food. It also designs, manufactures and supplies electronic controls and dispensing equipment that enhance precise product usage in a market where there is no room for error. All are delivered through Food & Beverages sales-and-service force, about two-thirds of which holds degrees in dairy science, food science, microbiology, chemistry or engineering.

Ts u n a m i
EPA registered peroxyacetic-acid based antimicrobial for flume and wash water systems that help reduce microbial counts on fruit and vegetable surfaces.

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Food & Beverage

management services program. First, Food & Beverage consults with customers, helping them comply with regulations and minimize their costs by reusing and conserving water wherever possible. The goals are to manage water flow and minimize the amount of wastewater generated. Second, increasingly stringent wastewater discharge standards mean dairy processing plants must be conscious of wastewater content. For example, Solodigm, a clean-in-place detergent system for dairy processors, uses no chlorine, phosphates or caustic chemicals. This reduces problem effluent constituents and helps customers meet even the strictest wastewater standards. Food & Beverage also offers water treatment products for servicing boilers and cooling water systems through a cross-divisional partnership with Ecolabs Water Care Services Division.

DAIRY PLANTS
Dairy plants are Food & Beverages core market, and the division is the market leader. Customers in this market segment process milk into the products consumers buy in the supermarket, such as fluid milk, cheese, yogurt and ice cream. During processing, milk products are transported through an extensive pipeline network, from the dairy trucks that deliver raw milk, to pasteurizing, mixing, blending and final packaging. To effectively and efficiently accomplish cleaning and sanitation in these vast pipeline networks, customers use clean-in-place (CIP) technology pioneered by Food & Beverage. These fully automated computerized programs and systems, custom-designed by Food & Beverage, clean and sanitize customers production facilities to rid vessels, pipelines and filling equipment of microbiological contaminants such as Listeria and Salmonella. Another next generation productivity-driven system utilized in dairy processing and cheese manufacturing plants is Exxelerate, which reduces cleaning time, and in turn, increases the plants production time thereby increasing production capacity. A system of cleaning products and food-grade additives, Exxelerate allows customers to streamline their wash cycles and extend run time in their whey/lactose process. Exxelerates complete cleaning program helps maximize the daily production outputs by providing customers with a quicker, easier way to clean their equipment. In addition to detergents and sanitizers, Food & Beverage provides all-purpose cleaners, lubricants for dairy processing conveyors, a complete personnel hygiene program and other products for this market. As environmental concerns and increased regulations have heightened customers needs for water and effluent management, the division provides a comprehensive water
Food & Beverage

AGRIBUSINESS
Food & Beverage is the market leader in dairy agribusiness. This sector deals with live animals, as opposed to animal by-products. Food & Beverage supplies products that enhance animal health as well as milking system and environmental sanitation products to help ensure delivery of a safe, uncontaminated food product. For instance, with dairy farmers, sanitation begins with the cow. Food & Beverage offers teat dips to help prevent infection, and detergents and sanitizers to clean milking machines. It also provides detergents and sanitizers to clean the pipes, vats, coolers and holding tanks that transport raw milk at the dairy farm, as well as products to clean milking parlor surfaces. Food & Beverage employs a highly effective group of knowledgeable, experienced farm specialists to serve customers in this market. The specialists market Food & Beverages offerings primarily through farm cooperatives and distributors, which sell the products to the end-users. The division works with distributors and cooperatives on national, regional and local levels. Food & Beverages support does not end with the sale, however. The specialists also visit farm distributors and cooperatives and their customers, answering technical questions, teaching them how to use products, and helping them identify problems and improve results.

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Food & Beverage

FOOD, MEAT & POULTRY PROCESSING
A diverse and complex industry, food processing encompasses manufacturers of nearly every kind of food product, from canned soups and ketchups to cereals and hot dogs. Like dairy plant and agribusiness operators, food processors have tanks in which food is mixed and pipelines in which it is transported, along with specialized equipment, such as fryers and ovens, that must be cleaned. Also, like dairy and agribusiness customers, each food processor must meet stringent standards to prevent food contamination, which can result in reduced shelf life or foodborne illness. Food & Beverage is strengthening its presence in the food processing industry by changing the way producers approach food safety. The division is accomplishing this through an even stronger emphasis on the importance of comprehensive cleaning and sanitation from the beginning to the end of the process. Multiple interventions provide an innovative, integrated and efficient approach to maximizing food safety. Ecolabs complete program is specifically developed to address every critical control point in customer operations. The Inspexx and Sanova lines of carcass wash products, for example, were formulated to provide control of microorganisms on the surfaces of meat and poultry. Automated dispensing systems, advanced detergents and sanitizers, patented food surface treatments and a complete personnel hygiene program, help provide food products in which virtually all pathogens and spoilage organisms are reduced. Ecolabs integrated, comprehensive approach to food safety is unmatched in the industry. Corporate and regional accounts contribute a large portion of Food & Beverages food processing sales. Sole and preferred supplier relationships with major food processing companies are a key factor in the divisions growth in this area.

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Food & Beverage

FRUIT AND VEGETABLE PROCESSING
To meet the unique needs of the fruit and vegetable processing industries, Food & Beverage provides systems that help fruit and vegetable processors produce a ready-to-eat end-product for human consumption. These products provide microbial control of fruit and vegetable surfaces in the flume water systems that transport fruit and vegetables to other processing operations within a plant. They reduce microbial counts on the product surface, thus helping to assure quality.

BEVERAGE AND BREWERY

Soft drinks, fruit juices and beer are primary products in the beverage and brewery sector. As in other markets, mixing vats and pipelines must be cleaned. Conveyor lubricants are also important, because they can help keep conveyors clean and keep bottles and cans moving along production lines. In addition, Food & Beverage offers EPA registered products that inhibit the growth of bacteria in can and bottle warmers, where beverage containers are sprayed to prevent condensation and problems in packaging. Like food processing, each niche in the beverage/brewery sector poses separate challenges. For example, the increased use of fruit juice additives in soft drinks requires additional measures to ensure bacteria are killed. In the brewery sector, dry and draft beers, which are not pasteurized, require a special lubricant to control the buildup of bacteria and yeast during bottling. Food & Beverage designs products to meet these specific needs, and beverage account managers work with customers to achieve the desired results.
EcoCare
A personnel hygiene system for processing plants with doorway sanitizers, hand soaps and sanitizers, and touchless dispensers.

EQUIPMENT
Food & Beverage designs, manufactures and supplies proprietary electronic controls and dispensing equipment to complement its product offerings. While sanitation requirements are somewhat standard throughout the world, each customer has individual needs based on the types of soils it must remove, its production volume and other factors. Food & Beverage Engineering works with customers to determine their needs. They then design and build systems, developing software for the controls and dispensing equipment, that enable wash and rinse formulas to be programmed specifically for each facility. No competitor offers such a comprehensive and individualized program. The Quadexx system permits on-site formulation and allocation of custom sanitation control products to meet food, meat, poultry or beverage plants specific needs. Web-based documentation and precise control of sanitation chemical allocation by application are the key benefits of Quadexx, which aids in meeting government standards for pathogen reduction and in adhering to standard operation procedures.
Food & Beverage

IMPROVED OPERATIONAL EFFICIENCIES

Food & Beverage differentiates itself from its competitors by maintaining a total systems approach. In other words, when working with customers, Food & Beverage addresses all the elements that make up the actual costs of cleaning, including labor, chemicals, water, effluent, utilities, corrosion, equipment and indirect expenses. It then provides solutions and programs that maximize production and cost efficiencies while maintaining the high quality of a customers finished product.

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A Food & Beverage Service Call

Food & Beverage account managers make many of their service calls at night, when customers sanitation crews are busy cleaning production lines, vats, tanks and processing pipelines. The number of calls they make varies greatly. For example, depending on the size of an account and its unique needs, a service call may run anywhere from a couple of hours, to a full shift, to several days. Account managers can service some customers during the day, and also use daytime hours to call on prospective customers. Like other Ecolab sales-and-service representatives, account managers are accessible by cell phone and are in frequent contact with ECOlink. They are also linked to other Food & Beverage associates by e-mail. Food & Beverages service is designed to help customers keep their total cleaning costs in line. Account managers help customers achieve better results and more efficiently manage other components of the cleaning process, such as labor and water costs. On average, Food & Beverage services its plant customers monthly sometimes more often, depending on the accounts needs. Plant customers typically are dairy, food and beverage processors and breweries. The following is an example of what a typical monthly service call entails. The account manager checks in with the sanitation manager and quality assurance staff to see whether there are any concerns, or if problems have surfaced since the last service call. This plant makes frozen pizzas. With its six lines running, the plant turns out nearly 5 million pizzas per week. Cleaning takes place from midnight to 8 a.m. The account manager works at this plant during the entire cleaning shift. All of the Food & Beverage dispensing equipment is checked to make sure that its functioning properly, that the correct concentration of product is being dispensed, and that cleaning procedures are being followed. The account manager checks the challenging areas in this case, where there are stubborn burned-on soils such as cheese and pizza dough. Product inventory is reviewed to see how much the customer has been using. This is a checkpoint for keeping costs in line. Throughout the night, the account manager works with the sanitation crew. In addition to this hands-on training, the account manager periodically conducts more formal sessions at the plant, covering topics that revolve around good sanitation practices and product safety. Using a laptop computer, the account manager creates a service report. Before leaving the plant in the morning, the account manger reviews this report with the sanitation manager, noting findings and any follow-up thats needed by Food & Beverage or the customer.

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Enhancing customer facilities.

The condition of the floor has a direct impact on a patrons perception of a facility. From a local grocer to a hospital campus, Professional Products has customized floor maintenance solutions for a variety of substrates, including natural stone, vinyl composite tile and terrazzo. These floor-enhancing systems not only make protecting a customers brand a priority, they also create visual impact.

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Professional Products
AT A GLANCE
Markets served: Food and non-food retail Acute care healthcare Building service contractors Services provided: Custom floor care offerings for stone, carpet, vinyl composite tile and wood/sports floors, disinfectants, skin care, odor control, dispensed chemical systems, ready-to-use cleaners, hard surface cleaners and restroom care products. Strengths: Comprehensive floor care systems designed specifically for retail, healthcare and building service contractor markets to enhance a facilitys image and increase worker productivity.

Ecolabs Professional Products Division provides unique floor maintenance and enhancement systems designed for all floor types and incorporates a comprehensive general housekeeping line for the retail, acute care healthcare, and building service contractor markets. Products include floor maintenance solutions such as conventional, high-solids and ultradurable finishes and cleaners; a comprehensive stone care line; ready-to-use cleaners, hard surface cleaners, such as glass and restroom care products; and odor control systems, disinfectants, carpet care, furniture polishes and concentrated dispensed chemicals. Professional Products is served through a highly trained, direct sales-and-service team and a tiered network of janitorial and sanitation distributors.

OVERVIEW

Division

P i n n a c l e P ro d u c t L i n e
From the daily and periodic cleaning to complete restoration, Pinnacle products enhance the natural beauty of stone.

G l o s s Te k U l t r a d u r a b l e Floor Finish
GlossTek ultradurable floor finishes offer a high gloss look with extreme durability and the elimination of burnishing.

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Professional Products
Professional Products systems are designed to offer customers superior quality and results while reducing labor costs. The divisions pioneering efforts with floor enhancing systems like Bright FX High Performance Retail Floor Care and the Phazer Mobile Floor Care System reduce product waste and make a facilitys floors lighter and brighter. The updated, ergonomic design of the Phazer Mobile Floor Care System also promotes employee safety and productivity. Combine Bright FX, Phazer and the complete conventional floor care offering with Pinnacle, a comprehensive stone care system, and GlossTek, an ultradurable, polyurethane floor finish, and Professional Products becomes the single resource for a customers floor care needs. From daily and periodic cleaning to complete restoration, Pinnacle products enhance the natural beauty of stone. GlossTek ultradurable floor finishes offer the high gloss look customers demand with extreme durability and the elimination of burnishing an exceptional benefit in labor savings.
QC S y s t e m s
1. Product and dispensing systems that provide significant time and labor savings. 2. The complete QC line handles the smallest spray bottle task to the largest autoscrubber application.

Professional Products QC and Quik Fill systems are a cost-effective alternative to ready-to-use products. The innovative, super-concentrated and compact QC system enables customers to dispense their own chemicals onsite diluting products to the right concentration every time. The Quik Fill system provides an economical alternative for higher volume uses. Both systems are available in several configurations to meet the customers needs. Ecolabs Professional Products Division provides customers with more than cleaning solutions; it provides business solutions through its innovative programs and services. QuickSTEPs+ is a comprehensive, bi-lingual training system that teaches safety procedures, the use of proper equipment, cleaning processes by task and area, and quality control. This icon-driven tool is customizable for each user and program. Likewise, as a complement to the floor care product offering, Professional Products created M.O.R.E. (Management of Risk Exposure). This three-part floor safety program features incident prevention, incident response and claim support/expert witnesses and is offered as an accompaniment to customers existing risk management and safety policies and procedures. It is offered as a complement to customers existing risk management and safety policies and procedures.

Building on its complete floor care offering, the Professional Products Division is also known for innovative packaging and dispensing technology. Quik Fill Pour Paks and A-Paks promote convenience and ease of use, while reducing waste. Pour Paks are conveniently packaged concentrates that make one mop bucket or spray bottle of ready-to-use solution. A-Paks are premeasured, water-soluble packets that fit in the palm of your hand. Both the packet and product dissolve in water, eliminating waste and mess.

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Professional Products representatives regularly meet with customers to review areas of improvement and answer questions about the Ecolab products in use at the facility.

The retail floor care products and systems reduce product waste and make a facilitys floors whiter and lighter.

Before
A retailers floors coated with a competitors product.

After
That same retailers floors with Professional Products Bright FX system.

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A Professional Products Service Call

Professional Products representatives including those employed by distributors to represent the divisions product lines help customers achieve their goals. This includes helping customers keep their cleaning costs in line while maintaining the highest sanitation standards. The divisions sales-and-service representatives are an important part of the Professional Products sales team. This team is focused on driving sales with our current customer base, conduct product/program training programs, and conduct account service reporting. While each day is different for our sales and service specialists, the following example should give you a sense of the contribution they make to our customers. A Professional Products representative is meeting with the maintenance engineer for a large grocer. Today, the associate is training the stores maintenance staff on the proper cleaning technique for the vinyl composite tile floors in the stores high-traffic produce section by utilizing QuickSTEPs+ training cards and hands-on demonstrations. The training is followed by an inspection of the recently installed QC dispensing system, which uses controlled, onsite mixing and diluted products for hard-surface cleaning. The representative trained employees on the system during the installation, and today answers questions regarding its operation. The associate inspects all facets of the stores maintenance operation, noting any areas where improvements might be made. The representative then meets with the maintenance engineer to review areas of improvements and answer any questions. This is the representatives opportunity to reinforce to the customer the tangible value of Ecolabs service, stressing the need for frequent service in order to further reduce costs and improve operational efficiency.

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Providing total solutions for infection prevention.

As a leader in infection control and prevention, Ecolabs North American Healthcare Division provides products and programs to healthcare facilities. Its quality chemical formulations, unique packaging designs and innovative dispensing systems focus on serving three key market segments; infection prevention, sterile processing and the operating room.

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Healthcare
AT A GLANCE
Markets served: Acute care hospitals and affiliated clinics and long-term care facilities Primary care facilities, such as dentists, veterinarians, and out-patient surgery clinics Services provided: Soaps and lotions, body washes, waterless antimicrobial hand rinses, surgical scrubs, instrument detergents, enzymes, rinses and lubes, and hard surface disinfection solutions for the healthcare markets. Strengths: Leading supplier to the infection prevention market; innovative products that provide superior cleaning and disinfection capabilities in cost-effective ways that contribute to a healthcare facilitys bottom line.

Ecolabs Healthcare Division is a leader in infection control and prevention, providing products, services and educational training programs to a variety of healthcare providers, including acute care hospitals, medical and dental clinics, and out-patient surgery center facilities. Ecolab first entered the healthcare market through its acquisition of Huntington and has since become the leading provider of healthcare personnel hand washes in the acute care hospital market. More recently, Ecolab introduced its patented solids technology for use in cleaning surgical instruments in central sterile and operating room environments, setting new standards in performance, convenience and safety. Following Ecolabs Circle of Prevention strategy, the Healthcare Division is focusing on a total solutions approach for its customers offering them not only high-quality products, but also support services and education/training programs targeted at reducing the rate of nosocomial (hospital-acquired) infections and saving patient lives.

OVERVIEW

Division

E n d u re
Go ahead. Rub it in. Ecolab Healthcare offers a complete line of waterless alcohol products to help promote proper hand hygiene practice across a facility.

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Healthcare
There is simply no room for diseasecausing microorganisms in a healthcare environment. Thats why Ecolabs research and development staff is closely aligned with the infection control community, including infection control practitioners, microbiologists, epidemiologists and dermatologists. Their research is focused on developing products that meet the needs of the infection control community, including laboratory and clinical studies that support the efficacy claims of Ecolabs many products. personnel hand wash brand. Bacti-Stat is formulated for use by nurses who wash their hands 20 or more times per day. It is exceptionally gentle yet very effective against microorganisms. Providing serious care to caring hands, Bacti-Stat has been shown to improve compliance with handwashing protocols. Handwashing compliance has a large impact in the fight against nosocomial (hospital-acquired) infections. In the U.S. alone, more than 2 million nosocomial infections are acquired each year, resulting in over $4 billion in healthcare costs and approximately 100,000 deaths. Ecolab has benefited as hospitals shift from the traditional soap and water handwashing regimen to waterless hand rinses. The move is the result of guidelines issued by the U.S. Centers for Disease Control and Prevention and the Association for Professionals in Infection Control and Epidemiology. They now recommend the increased use of waterless, alcohol-based handrubs in an effort to improve handwashing practices among healthcare personnel. The Healthcare Division offers a full line of products under the Huntington brand name, including three waterless hand rinses Quik Care foam, Endure 300 Cida-Rinse gel, and Endure 320 Advanced Care.

STERILE PROCESSING
The cleaning of surgical instruments is also a critical function within a hospital. Capitalizing on Ecolabs strong reputation as the pioneer in development of solids technology, the Healthcare Division expanded that technology in the U.S. market with the introduction of its Aspeti-Solid line of products for instrument cleaning. This full line of revolutionary detergents, enzymes and rinses is designed specifically for use in hospitals central sterile departments, where soiled surgical instruments are put into racks and loaded into an automatic washer for cleaning and decontamination. Aspeti-Solid products for instrument cleaning include an enzyme detergent for pre-soak, a neutral detergent for the wash cycle, and a final rinse product all color-coded and shape-coded within the dispenser. For hard-water conditions, there is an alkaline detergent, an acid rinse and a descaler. The solids technology offers greater convenience, safety and cost effectiveness and is unmatched in the marketplace, which offers a tremendous advantage to the Healthcare Division.

INFECTION PREVENTION
Ecolabs hand care solutions are a critical part of any infection prevention strategy. Product offerings to this core market include hand soaps and healthcare personnel hand washes, waterless hand rinses, body washes and surgical scrubs. These products can be found in most of the major medical centers in the United States, which gives Ecolabs Healthcare Division a prominent position in the healthcare market. For example, Ecolab is a leader in the acute care hospital handwashing market, and Bacti-Stat is the leading healthcare

OPERATING ROOM
In the healthcare industry, product performance is critical. Thats why Ecolab makes only professional-quality products that meet or exceed healthcare standards, especially those used in the operating room of a hospital. These products include surgical scrubs and EPA registered hard surface disinfectants. Ecolabs full line of operating room surgical scrubs not only provide rapid antimicrobial action and persistent germ fighting activity, they also protect skin with added emollients and moisturizers. For instance, our Endure 400 Scrub-Stat 4 and Endure 420 Cida-Stat provides six-hour residual protection, yet contains an emollient-enriched formula to protect hands. Newly added to the product mix, Endure 450 Surgical and Healthcare Personnel Hand Antiseptic with Moisturizers offers a waterless, brush-free application for the first scrub of the day and re-entry cases.
AseptiSolid
Ecolabs strong research and innovation is constantly improving and expanding new technologies for the heatlhcare marektplace.

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Healthcare
Cross-contamination is also a huge concern when working to prevent the spread of infections. Germs are often spread when a person touches an object or hard surface that is contaminated with germs and then touches his or her eyes, nose and mouth. To help combat this threat, Ecolab provides convenient disinfectant wipes and ready-to-use sprays for hard surfaces. Asepti-wipe II, a germicidal disposable cloth, and Asepticare TB+II, a ready-to-use spray disinfectant solution, have been proven to effectively kill bacteria and viruses listed on the product labels, including the Influenza A2/Hong Kong virus. control studies and proper handwashing compliance is just as important as selling products. This training, combined with Ecolabs strength in handwashing products and systems, makes Healthcares offerings an important part of the overall infection control program for any healthcare facility. These products, together with the high-quality service and support provided by Healthcares sales representatives, truly make Ecolab a company committed to providing total solutions.

TOTAL SOLUTIONS
Ecolabs Healthcare Division is further differentiated from the competition by its knowledgeable sales-and-service representatives. Educating healthcare professionals about the latest infection

E n d u re 4 5 0
The operating rooms strongest, brushless, waterless hand scrub is also its mildest.

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A Healthcare Service Call

Healthcare representatives impact some of the most critical areas within a hospital or medical facility. Because the healthcare market has unique needs and methods of doing business, the Healthcare Divisions sales-and-service force must become specialists in the industry. This allows the division to leverage the expertise of its field professionals as effectively as possible. It also allows customers to use their Ecolab representative as a valuable source for obtaining the latest infection prevention information to medical personnel. The following is an example of what a Healthcare service call might entail. The Healthcare representative meets with the chief infection control practitioner (ICP) of a busy metropolitan hospital. This individual is typically a registered nurse or microbiologist who monitors facility-wide infection prevention practices. The hospital purchases products for hard surface cleaning/disinfection, personal hygiene/hand care and instrument sterilization. On this particular visit, the Healthcare representative is also training the hospitals staff on the proper techniques for effective hand washing while at the same time explaining how Endure 320 Advanced Care waterless hand gel can improve hand washing compliance and the condition of the users skin. ICPs typically look to Ecolab associates as resources for the most up-to-date information about controlling the spread of infection. During the same visit, the Healthcare representative will go to the central sterile department to check on the performance of the Asepti-Solid line of instrument care. This call will include checking inventory, assuring the product is being accurately fed into the instrument washers and observing the quality of the results by viewing the surgical instruments as they exit the washers. While in the central sterile department, the representative may also be asked to perform continuing education classes for the entire staff to remain up-to-date on infection prevention techniques. Healthcare representatives regularly keep in contact with ECOlink Customer Service throughout their day to help keep their accounts running smoothly.

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Cleaning and protecting vehicles large and small.

From small family-run washes to large fleet operations, the Vehicle Care Division combines the best brands with Ecolabs expertise and research capabilities to provide vehicle wash and detailing operators with leading-edge chemical and equipment solutions. In addition, the divisions specialized marketing programs and top-notch technicians help operators boost business and maximize profits.

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Vehicle Care
AT A GLANCE
Markets served: Rental vehicle companies; truck fleets; full-service (conveyor), in-bay automatic (gas station), auto auctions, auto retailers and coin-operated, self-service car wash operations. Services provided: Premium products and systems for the cleaning, polishing and detailing of commercial and consumer cars, trucks and other vehicles, as well as expert service and support. Strengths: Products and systems that provide superior results while helping to ensure handler safety; a national network of trained sales-and-service personnel; and value-added merchandising programs for car wash proprietors.

Ecolab further broadened its Circle the Customer capabilities with the formation of its Vehicle Care Division in 1998. The division offers commercial vehicle wash operations a bumper-to-bumper array of products and systems that clean, polish and protect a wide range of vehicles, including cars, trucks, vans and even semi tractor-trailers. By leveraging the brand equity of existing offerings gained through acquisitions and by applying its own strong research and development capabilities to new, differentiated product offerings Ecolab is adding more effective product formulas and innovative dispensing to its line-up, as well as a nationwide reach and equipment service. The commercial vehicle wash industry is currently comprised of six major segments. The first three cater to businesses that serve consumer needs. The largest full-service, conveyor-style vehicle wash facilities clean, dry and detail vehicle interiors and exteriors by running the car or truck through a conveyor tunnel. In-bay automatics are the drive-through washes most often attached to fuel stations. They wash the exterior of the car while the driver remains inside the vehicle. Coin-operated, self-service operations allow consumers to wash their cars themselves with pressurized spraying equipment. Three additional segments, which serve strictly corporate and commercial needs, providing Ecolab with a long-term growth opportunity, are: rental vehicle washes, which provide cleaning and care for consumer rental vehicles; truck and bus fleets maintained by corporations and other organizations; and auto auctions and dealerships, which recondition used cars for sale in wholesale and retail markets. Like most of Ecolabs offerings, Vehicle Care was born in direct response to a customer need. Core customers requested that Ecolab leverage its cleaning and sanitizing expertise to create an effective, efficient program for washing their vehicle fleets. The subsequent acquisitions of two leading companies not only gave Ecolab a direct inroad into the commercial vehicle wash industry as a whole, but instantly made it the No. 1 product and service provider in that market and the only company to offer true national coverage.

OVERVIEW

Division

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Vehicle Care
THE MARKET AND ITS NEEDS
Modern societys persistent desire for greater speed and convenience is driving growth throughout the vehicle wash industry. Competitive pressures and the desire for repeat business particularly among full-service wash operators, who largely tend to be independent entrepreneurs has created a market that desires superior final results and cost-effective resource use. At the same time, there are concerns regarding the safety of corrosive chemicals commonly used in the wash cycle, and car wash operations are looking for safer cleaning solutions that dont compromise vehicle appearance. Ecolabs Research, Development & Engineering team continues to develop advanced surfactant technology, such as that found in its line of Velocity and Harmony products, that offer optimum cleaning and shining results without corrosive chemicals. The division is also leveraging Ecolabs proven solid product technology through Solid Ovation, an alkaline presoak designed for high-pressure automatic car washes. The first solid product introduced to the car wash industry, Solid Ovation provides wash operators with a myriad of cost- and space-saving benefits. For instance, the product is packaged in 10- or 11-pound tubs, which are much easier to handle and store than liquid products in 55-gallon drums. Vehicle Care is also addressing its customers concerns about rising labor and energy costs by offering cleaning products that deliver quicker dry-time without increased dryer use. Further, it offers support materials and programs that help independent vehicle wash operations, which generally do not have significant marketing resources, market themselves more effectively to their customers. Examples include Customer Centered Marketing, an interactive training program on CD-ROM that gives operators consumer demographic information, pricing strategies, ideas for special promotions, and more. Promotional Point of View, a comprehensive handbook on advertising and promotions, even includes prerecorded radio ads that can be customized for a specific operation(program has multiple radio ads).

Solid Ovation
1. A revolutionary cleaning system for high-pressure automatic washes that combines the most advanced chemical formulation and technology. 2. Superior performance along with cost- and space-saving benefits.

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Vehicle Care

SALES AND SERVICE

Vehicle Care reaches its customers through a growing direct sales-andservice force. In addition, it has forged strong relationships with car wash equipment manufacturers, selling products through the same dealer and distributor networks that sell the manufacturers equipment. Vehicle Care sales-and-service associates work closely with car wash operators to help them increase margins through product and service merchandising. One of Vehicle Cares unique value propositions to the car wash operator is a bundled offering that allows employees of full-service car washes to polish the vehicle, dress tires and protect the finish and at a very low cost to the operator. Ecolab then helps merchandise that service by creating custom, branded signage that helps proprietors attract consumers to the

offering and create ongoing brand awareness. Vehicle Cares growth strategy includes leveraging the cross-selling potential that exists between it and Ecolabs other divisions, particularly as Vehicle Care pursues opportunities to develop and build its growing fleet business. For example, typical Institutional Division customers, such as food distributors, have fleets of trucks that need to be cleaned. Ecolabs Kay Division, the leading provider of cleaning and sanitizing solutions to convenience stores, often finds those stores attached to gas stations and, subsequently, car washes. Vehicle Care is evolving into a global enterprise by building its corporate account business. As multi-unit chain customers particularly those in the gas station industry expand internationally, Ecolab will expand along with them.

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A Vehicle Care Service Call

Vehicle Care service specialists focus on three priorities: save the customer money, allow the customer to make a profit, and most importantly, simplify the customers life. Service specialists address these priorities by helping their customers attain consistently clean, shiny vehicles; increase the volume of vehicles washed per day; and increase the operations profit margin. The divisions Service Call Protocol was established to ensure that a Vehicle Care service specialist lays the proper foundation to accomplish their objectives. It is a proven method to service the customer effectively and quickly so the service specialist is able to make the most productive and efficient use of his or her time. A typical service call generally lasts about an hour, which translates into an average of eight service calls per day. The service call begins in the finishing area. This is the point at which the interior glass is cleaned and where detailed towel drying is done. Here, the Vehicle Care service specialist visually inspects the quality of the cars to determine problem areas that need to be addressed. This is the point at which the service specialist begins writing the service report, documenting what he or she sees. The next step is a visit to the sales island. The sales island is integral to a successful vehicle wash operation because all of its revenues are generated here. Sales training and advice to the car wash service advisor on how to sell to the customers wants and needs has an immediate impact on revenues. After the sales island it is on to the prep area, where vacuuming, prepping, bug residue cleaner application and possibly wheel cleaner application takes place. Since this area is the beginning point of the car wash process, anything that can affect the flow is an opportunity to increase efficiency. Streamlining procedures and eliminating bottlenecks allows the operator to maintain an even pace, reducing fluctuations and inconsistencies. On the service report, the service specialist records suggestions for changes to this area. Next is the wash process area. This is the tunnel in which the cleaning of the vehicle occurs. All wash and high-pressure equipment is located in this area. It is where the service specialist checks to ensure proper application of soap, polishes, drying aids and sealants. Any problems are noted on the service report. The last step is the equipment room, the brains of the car wash. This is where the mixing and dispensing equipment is located, as well as where titrations are performed and volumetrics are drawn. The service specialist records inventory, determines the order and completes the service report. Once all other steps in the Service Call Protocol have been completed, the service specialist visits the owner or managers office to review the service report and answer any questions. This is the service specialists opportunity to reinforce to the customer the tangible value of Ecolabs service, stressing the need for frequent service in order to further reduce costs and improve the operations efficiency.

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Serving commercial, institutional and light industrial markets.

Ecolabs Water Care Services Division offers unique patented products and advanced chemical delivery systems to meet the water treatment needs of our customers. Water Care Services serves many of Ecolabs Institutional, Food & Beverage, Textile Care and other accounts, allowing customers to benefit from the convenience of working with one company for all of their cleaning, sanitation and maintenance needs.

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Water Care Services

AT A GLANCE
Markets served: Commercial/ institutional market, including hospitality, healthcare, real estate, government, and educational facilities. Light industrial market, including food and beverage accounts, textile mills, electronics parts and plastics manufacturers. Commercial laundries Other industries Service provided: A full range of water treatment programs for boilers and steam systems, cooling water systems including chillers and refrigeration loops and process wastewater treatment. Strengths: A nationwide network of experienced Water Care specialists provide consistent technology, service and support for Ecolabs customers including key corporate accounts.

Through its Water Care Services Division, Ecolab maintains clean water related systems by providing a full range of treatment programs for boiler and cooling water systems and wastewater applications. The division utilizes a whole systems approach, through which Ecolab specialists analyze and optimize the total efficiency of an industrial, commercial or institutional operation by looking at all cost factors. By balancing these variables, Ecolab keeps water-related systems functioning at peak efficiency. This approach, coupled with Ecolabs Circle the Customer strategy, allows Water Care to work cross-divisionally to provide integrated solutions to its customers. An expert staff of engineers, chemists and research technicians provide constant support to the divisions sales-and-service associates.

OVERVIEW

Division

C r y s ta l Mate
1. Revolutionary product and dispensing system that prevents scaling and corrosion in cooling towers and boilers. 2. Concentrated product formula sets an unprecedented standard for superior performance, safety and ease of use.

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Water Care Services

operations that must be adequately treated before being discharged into the environment or the local sewer system. Ecolab helps customers meet the toughest effluent standards, minimizing surcharge costs, helping to avoid penalties and achieving compliance. the total efficiency of an operation by looking at all cost factors, including energy, chemicals, water and sewage, maintenance, labor and equipment depreciation.

TECHNOLOGY
Water Care product technology focuses on performance, reliability, ease of use and employee safety. Water Care products are formulated to protect boiler and cooling systems from scale, corrosion and deposits costly problems that can lead to unscheduled downtime, equipment failure, spread of disease, and increased water and energy consumption. Products are formulated to address these customer concerns. For example, products such as Oxxium 203 and Boost 3000 are specifically designed for use in preventing the growth of dangerous bacteria in cooling towers and chilled water loops. Ecolab is continuously testing its Water Care products and systems to ensure they meet the highest quality standards, and conducting ongoing research and development for further product and system enhancements. Many products and packages are designed to minimize employee contact, handling and disposal concerns. Several treatments include color indicators for fast, easy confirmation of proper dosage control. Advanced control and product delivery systems are an integral part of Ecolabs complete Water Care program, which allows customers to benefit from state-of-the-art equipment, while avoiding high capital expenses and maintenance fees. Systems are designed to meet U.S. Occupational Safety and Health Administration requirements, helping customers prevent unnecessary fines. Automated sensing and control devices keep water systems balanced, chemical residuals in line and results in tune with expectations. Ecolab has partnered with major equipment suppliers to provide its water treatment customers with total solutions to their water treatment needs. Our customers benefit from the strong innovative relationships we have with suppliers across all our divisions. Water Care goes beyond providing advanced products and equipment. Service specialists analyze and optimize
Water Care Services

BROAD SERVICE AND SUPPORT

Throughout the country, Ecolabs highly trained Water Care specialists work directly with customers to protect and maintain their boiler process and cooling systems. Hands-on local service helps ensure that each individual facilitys local water conditions are considered and each treatment program is tailored to meet the needs of the individual system. At the same time, Ecolabs extensive network allows customers to enjoy the savings and benefits of using a single vendor for consistent service throughout the country. Water Cares sales-and-service associates typically have college degrees in chemistry, engineering or biology. Ecolab also has its own training program to certify Water Care specialists. During regular service calls, Water Care specialists perform equipment inspections and preventive maintenance, product inventory checks, water tests, corrosion studies, and operator log reviews. They also alert management to inefficiencies or safety hazards within the operation. Assistance is available day and night, through a 24-hour customer service network. Water Care specialists are backed by a technical service support staff, including engineers, chemists, technicians and one of the largest research and development teams in the industry.

THE MARKET AND ITS NEEDS

While homes use air conditioners and furnaces to heat and cool the environment, large facilities such as hospitals and office buildings use boilers, chillers and cooling towers. Typically known as HVAC (heating, ventilation and air conditioning) systems, they come in a range of sizes, depending upon the size of the building. Boilers, chillers and their distribution piping systems are housed in a facilitys utility spaces, which can be the size of a compact car or a train car. Water Care primarily serves Ecolabs Institutional, Food & Beverage, Textile Care and Pest Elimination accounts, allowing these customers to benefit from the convenience of working with one company for all their cleaning, sanitation and maintenance needs. Many Ecolab customers, such as those in the food and beverage industry, use steam and chilled water for heating and cooling during production processes. If the water is not treated properly, scale and deposits can form, compromising temperature control, affecting product quality and even leading to food safety concerns. In addition, boilers, chillers and cooling towers, as well as the associated piping and distribution systems, represent a sizable capital investment for customers one that must be safeguarded against corrosion that can lead to costly maintenance, inefficient operation and premature replacement. Ecolab works with customers to design water treatment programs that address their specific operations, and help protect their assets. Process industries generate wastewater from production, cleaning and utility

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A Water Care Service Call

Water Care specialists divide their responsibilities between making new sales calls and maintaining existing accounts. Like other Ecolab sales-and-service specialists, they are in frequent contact with ECOlink, Ecolabs customer service center, to stay on top of the most immediate needs and concerns of their customers. On a typical service call, which takes place about once a month for each account, Water Care specialists will first check in with the plant engineer to see if there are any concerns or issues that may have developed since the last visit. After meeting with the site manager, the specialist tests the water going into the system, the water in the chiller or boiler and the water in the cooling tower. Using an array of test kits and monitoring devices, they analyze each sample to determine whether the equipment is properly feeding biocides to control algae and slime, and whether treament products are inhibiting scale and corrosion. Specialists also check the calibration of control equipment being used, as well as overall performance of related equipment. In addition, they check inventory and make recommendations about reorders. When needed, specialists attend annual on-site boiler, chiller and cooling tower inspections required for insurance purposes. At commercial properties such as office buildings, typical service calls take anywhere from a half-hour to a half-day, depending on the complexity of the systems being treated. In accounts where there is usually no engineer on-site, the specialist can provide full service, setting up systems as well as maintaining them. Once a system is set up, the specialist continues to service the account regularly. Larger commercial accounts such as hospitals and universities have their own staff of engineers educated on how to maintain their systems. Water Care specialists visit these accounts on a consultative basis, helping the customer apply the program that Ecolab has designed for them. Industrial accounts such as food manufacturing plants typically require more frequent visits to help safeguard their critical production processes, which use larger volumes of water for heating, cooling and wastewater control. After every service call, Water Care specialists fill out detailed service reports using laptop computers and meet with staff engineers to ensure that all equipment is running properly. They also provide recommendations for improvements or corrections. Beyond typical service calls, customers expect Water Care specialists to have the knowledge to work with government regulatory agencies, such as the Environmental Protection Agency, which controls effluent parameters. OSHA also periodically verifies Material Safety Data Sheets are available to workers and they are complying with safety standards. And because customers rely on specialists to keep them informed about regulations, they put on seminars throughout the year that include safety training.

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The commercial market leader.

Formed in the mid-1980s, Pest Elimination was the first division created out of Ecolabs Circle the Customer - Circle the Globe strategy, which involves surrounding customers with complementary offerings that meet all of their cleaning and sanitation needs.

Pest Elimination

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Pest Elimination
AT A GLANCE
Markets served: Hospitality Foodservice Lodging Healthcare Government Institutional and industrial businesses Services provided: Detection, identification and guaranteed elimination of pests, with regular follow-up. Strengths: Pest elimination, differentiated from pest control, provided through advanced technology, the industrys best-trained sales-and-service force, and a strong focus on quality and total customer satisfaction.

Recognizing the need for true pest elimination not simply pest control among its hospitality, foodservice and industrial customers, Ecolab offers an essential service: reliable, premium commercial pest elimination. Cockroaches, rodents and other flying and crawling pests carry disease and pose a constant threat to the reputations of commercial facilities, including restaurants, hotels, hospitals, food processing plants and more. By combining expertly trained service associates with the latest technology, Pest Elimination has grown into the largest provider of premium commercial pest elimination services in the United States. The division began with several acquisitions of regional pest companies and has expanded through the penetration of markets with proven pest elimination needs experiencing strong, double-digit compound sales growth along the way. Its service offering now includes comprehensive programs that target varied pests such as pestilent birds, ants and termites. In addition, because Pest Elimination associates visit customers on a regularly scheduled basis each month, they are able to help with persistent problems such as odor control.

OVERVIEW

Division

Stealth Maxima
Unobtrusive, open-topped illuminated light that attracts and captures flying insects without the use of pesticides.

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Pest Elimination
CUSTOMERS
U.S. Pest Markets ($ in billions)

Residential CommercialControl $0.3

Pest Elimination is an integral service that complements customers diverse cleaning and sanitizing needs. Focusing on Ecolabs hospitality, foodservice and industrial markets, Pest Elimination has created a strong market presence of its own, as well as often serving the same customers as Ecolabs other divisions. Pest Eliminations strong customer base includes hotels and restaurants; healthcare facilities; education and business complexes; government facilities; and dairy, brewery, meatpacking and baking businesses. Like the U.S. Institutional Division, Ecolabs national presence, high standards of performance and reputation for quality have enabled Pest Elimination to become the industry leader among national and regional restaurants and foodservice chain accounts. The key element of the Ecolab Pest Elimination program which differentiates it from the competition is the guarantee that it will eliminate, not merely control, rodents and cockroaches. This is critical. Two cockroaches in the proper surroundings can multiply to more than 4.5 million within a year. With Ecolab, treatments begin with an initial cleanout at an account. Then Ecolabs follow-up service visits, at regular intervals, help prevent future infestations. Ecolab stands behind the results of its Pest Elimination services with one of the most solid guarantees in the industry.

customers needs. For instance, the Eliminator, a proprietary insecticide applicator, allows the operator to handle a full range of product applications, thus simplifying the process while minimizing product residuals and maximizing results. The Stealth Fly Program removes flies in a discreet, chemical-free manner, while the technologically advanced program CheckPoint helps guarantee rodent elimination with dicreet traps and bait stations. Ecolabs ECO2000 proprietary bait program provides an easy method for exterminating cockroaches. Pest Elimination introduced a computerbased service reporting system called estat that incorporates state-of-the-art, hand-held reporting devices that allow service specialists to fully document customer visits on the spot. This information is then downloaded at the end of the day, in electronic form, to the mainframe computer at the divisions national customer service center in Grand Forks, N.D. The system makes information from past service calls readily available to assist sales-and-service representatives on future calls. Boasting a built-in printing function, estat improves upon the divisions former manual reporting system by instantly providing consistently formatted, professional reports, which are left with the customer in a convenient filing folder.

Commercial/Premium

$4.0 billion total

Eliminator
Ecolabs patented applicator cart for dispensing insecticides. Consists of a particle generator and power duster for microfine applications using minimal amounts of product while remaining effective.

TECHNOLOGY
Innovative and effective technology enhances Pest Eliminations service, adding another dimension to its value. Pest Eliminations technical support staff includes professionals with advanced degrees in entomology and microbiology. They focus on developing the product and system knowledge needed to obtain results for customers and work closely with vendors who provide insecticides and pesticides. Pest Elimination extensively tests new products, determining which will work best for specific situations. Ecolab manufactures its own dispensing and delivery systems to gain an application and productivity advantage. Pests technical support staff concentrates on continual improvement and development of dispensing equipment and devices that meet a wide range of
Pest Elimination

SALES AND SERVICE

Pest Elimination also invests heavily in its sales-and-service force, known as service specialists, to equip them with knowledge, products and tools to provide guaranteed results. The division is committed to thorough, ongoing training, and all specialists are licensed by the states in which they operate. Various types of comprehensive training take place during a service specialists first year of employment. Within the first six months alone, all associates are required to complete hands-on practical training conducted by supervisors, as well as an intensive weeklong training academy conducted by more than a dozen division instructors. The academy is held at the Ecolab University training center in St. Paul. Training academy topics include safety, customer communication, product information and in-depth training for Ecolabs pest elimination programs. Continuing

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ensure that Ecolab is maintaining its commitment to pest elimination. At the end of a maintenance call, the service specialist furnishes customers with a detailed service report printed from the estat hand-held reporting device. It indicates all services provided including, as required by law, any chemicals utilized and what concentrations they were used at as well as sanitation deficiencies found, improper storage practices and structural defects that could contribute to a pest infestation. To help ensure food and guest safety, service specialists provide customers with thorough instructions on preparing the premises before cleanouts and maintenance calls. education is provided by the divisions field training program. Technical experts visit regions on a regular basis, providing additional classroom training and field sales support exercises to make sure service specialists remain the best in the industry. Service specialists professionalism and job satisfaction is apparent in the divisions employee retention rate at more than 80 percent, it far surpasses the industry average. Customers are attracted to the specifically tailored elimination and prevention programs the division offers for each location. Pest Elimination service specialists begin designing such programs with a thorough examination of the customers premises. In addition to seeking evidence of insects or rodents, service specialists look for structural or sanitation problems that could contribute to an infestation. The key to Ecolabs service is guaranteed elimination, and the cleanout is the very first step. This involves a thorough treatment of a facility to initially rid it of pests. A team of Pest Elimination service specialists is brought in for the job. During a hotel cleanout, for example, all foodservice areas and guest rooms are treated. This includes flushing, residual application, and dusting and baiting where appropriate. Baits and residual sprays are applied to provide ongoing elimination until the next maintenance call. Rodent baits or traps are set in dock and warehouse areas. Specific procedures are conducted for unique problems. Following the initial cleanout, the Pest Elimination service specialist typically visits an account on a monthly basis. These visits allow the specialist to
Pest Elimination Why Pest Elimination?

C o c k ro a c h e s
A pair of cockroaches can multiply to 4.5 million within a year. Our solution: ECO2000 Cockroach Program

Because service specialists work at night when facilities may have no one present, communication with customers takes on a more critical role. In addition to service reports, the division routinely contacts customers by phone and mail to make sure its service isnt simply meeting, but exceeding, their expectations. Customers also have quick access to their service specialists by calling the divisions toll-free national customer service center.

Flies
Occur almost everywhere, with 87,000 species worldwide. Our solution: Stealth Fly Program

QUALITY
The Pest Elimination Division is committed to total quality management principles, a key reason for the divisions market share gains and achievement of commercial market leadership. Service excellence to exceed customers expectations underlies the divisions offerings and success. As a result of its dedication and significant achievements, Pest Elimination has experienced very high customer retention more than 85 percent, which is, not surprisingly, similar to its employee retention rate. Furthermore, the division is a two-time winner of Ecolabs Service Excellence Award and is a past finalist for the Minnesota Quality Award. To maintain this high level of quality, the division developed its own Service Excellence Leadership Council in 1993, as well as a Commitment to Service Excellence statement, which declares the divisions dedication to its customers, its associates, the organization and the division itself.
Rodents
Annually destroy 33 million tons of food worldwide, enough to feed 130 million people. Our solution: CheckPoint Rodent Program

Ants
Ants seen on the surface are only a fraction of a colony. Whole colonies can include as many as 500,000 ants. Our solution: GroundForce Ant Program

Te r m i t e s
Every year in the United States damage caused by termites exceeds that of fires, storms and earthquakes combined. Our solution: Integrated Termite Program

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A Pest Elimination Service Call

Ecolabs Pest Elimination service specialists offer pest elimination vs. pest control. With pest control, a restaurant or other establishment is treated whenever pests are seen. Unless they have just come in on a shipment of produce, as they sometimes do, a sighting usually indicates there are many more pests in hiding somewhere on the premises. With pest elimination, Ecolab does an initial cleanout of the premises to eradicate the pests. Then service specialists follow up with regular service calls to head off potential problems. Service specialists normally conduct regular service calls at night. Before conducting a service visit, the service specialist makes a reminder telephone call to the customer and asks whether there are any special concerns. Service specialists make an average of three to five calls per shift, including regularly scheduled service calls, special service calls and calls on prospective customers. They are in frequent contact with Pest Elimination Customer Service Center for messages. Here is an example of what a regularly scheduled service call entails. The service specialist starts this restaurant service call in the dishroom, using Ecolabs patented Eliminator system, equipped with a spray nozzle that directs pesticide deep into cracks, crevices and other hard-to-reach spots. A dishroom attracts pests because of its moist, warm environment and food particles. Areas the service specialist treats include: behind the detergent dispenser, under the dishmachine and across the top of the bulletin board. The perimeter of the restaurant, the kitchen, storage areas and restrooms are inspected and treated. The service specialist also checks the wind-ups, square metal box mousetraps capable of catching multiple rodents. These are placed in out-ofthe-way corners of the facility. Customers must do their part by keeping their establishments clean. The service specialist notes any practices that might contribute to a pest problem and includes them in the service report. One example might be in the kitchen, where grease builds up on the legs at the base of the fryer. This buildup could reduce the effectiveness of the pesticide and could contribute to a pest problem. To remedy the customers problem with flying insects, the service specialist installs the Stealth Fly Program, an unobtrusive, open-topped light that attracts and captures flying insects. The attractive Decora model is installed in the eating area for discreet fly control that complements the restaurants decor. At the completion of the call, the service specialist completes and leaves behind an estat service report detailing services performed, as well as noting any sanitation deficiencies, improper storage practices or structural defects that might contribute to a pest infestation. Then its on to the next call.

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Pest Elimination

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EcoSure
ECOSURE
EcoSure is the source to call for comprehensive, quality-assured food safety, workplace safety and consumer experience solutions. With the largest network of field specialists in the industry, EcoSure provides on-site evaluations and custom-designed training programs for foodservice, retail and hospitality operations nationwide. These field specialists, who typically have degrees in food science and nutrition, provide a broad array of services ranging from measuring a restaurants compliance with public health standards to evaluating customer service practices. This unparalleled service coverage allows for consistent results at multiple customer locations, while meeting the unique concerns of individual properties. EcoSure has the opportunity to approach many of its major foodservice, retail and hospitality customers through Ecolabs established relationships within other divisions. Customers can also contact EcoSure directly when they have need to improve their food safety and quality assurance performance. Todays hospitality, foodservice and food retail establishments face very demanding inspections by health departments and consumers when it comes to food safety. EcoSures service specialists respond to those demands by assisting customers in improving the overall performance of their operations. Through on-site evaluations, EcoSures certified specialists measure compliance of current facility practices against corporate, industry and governmental recommendations. For example, EcoSures food safety programs assess critical food handling control points such as proper storage techniques, temperature monitoring and personal hygiene. Focusing on employee, customer and overall facility safety, EcoSures experts measure every day workplace practices against OSHA regulations and other internal compliance procedures. For foodservice and hospitality customers, consumer experience evaluations offer complete nutrition validations, as well as service and cleanliness assessments, to address consumer concerns while visiting a facility. The process begins with EcoSure designing the scope of customized service it proposes to provide to its customer, including a full-service protocol in all areas of a restaurant, hotel or retail facility. EcoSure field specialists arrive at a facility fully trained and equipped to conduct a thorough evaluation, which can take from two hours to two days depending on the size of the location and the number of services the customer needs at the site. EcoSure specialists receive the most advanced training in the industry and are backed by the support of a centralized technical team. At the forefront of technology, EcoSure gathers customer information using proprietary handheld reporting technology, such as AccuSpec Enterprise for on-site concept, brand and high-risk issue evaluations. All information is complied and a report is printed on-site indicating all areas which need corrective action. EcoSure specialists review the findings with the manager and provide immediate recommendations for improvement solutions for numerous food safety, workplace safety and consumer experience challenges. Customers at the managerial level of the corporation also have access to these same real-time reports through a secure database enabling them to easily keep abreast of their ongoing programs around the clock.

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Premiere service coast to coast.

From restaurants to hospitals to hotels and universities, Ecolabs GCS Service Division provides guaranteed, state-of-the-art repair, preventive maintenance and parts service for commercial cooking, warewashing and refrigeration equipment. GCS Service customers nationwide count on the divisions expertly trained technicians to respond immediately anytime and anyplace emergencies arise.

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GCS Service
AT A GLANCE
Markets served: Restaurants Hotels Hospitals Nursing homes Contract feeders Education Supermarkets Convenience stores Services provided: Repair, parts replacement and customized maintenance for commercial food equipment, including fryers, steam equipment, ovens, ranges, conveyor ovens, dishwashers, steamers, grills, kettles, skillets, food warmers, filter machines, refrigerators/freezers and ice machines. Strengths: The largest parts inventory in the United States; 500 service technicians with extensive training in all aspects of kitchen equipment repair.

GCS Service strengthens Ecolabs Circle the Customer strategy by providing around-the-clock parts and repair service for commercial cooking, refrigeration and warewashing equipment an almost universal need among Ecolabs customers in the U.S. foodservice and hospitality industries. A one-stop-shop for equipment repair and preventive maintenance, GCS Service sets itself apart from the competition by providing service and parts on a nationwide basis for all major brands of commercial kitchen equipment. This extensive network allows Ecolab customers, particularly multi-unit chain accounts, to consolidate the number of service providers they deal with, gaining far more consistent, reliable service.

OVERVIEW

Division

GCS Service

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GCS Service
THE MARKET AND ITS NEEDS
Restaurants and other foodservice operations today must offer rapid service and diversified menu items utilizing a broad range of highly sophisticated commercial food preparation and storage equipment. Downtime due to equipment failure can paralyze an establishment. If a kitchen with hundreds of meals to serve has an inoperable oven, dishmachine or refrigerator for an extended period of time, thousands of dollars in revenue and spoiled food could be lost along with the establishments reputation. To keep customers operations running smoothly, Ecolabs GCS Service technicians are on call 24 hours a day, seven days a week, and they respond immediately whenever and wherever an emergency may arise. Response time is a key feature of GCS Services offering, while the wide-ranging expertise of its technicians is another. GCS Service technicians are extensively trained on a full array of equipment including fryers, steamers, ovens, ranges, conveyor ovens, dishwashers, steam tables, grills, kettles, skillets, food warmers, filter machines, refrigerators/freezers and ice machines. This differentiates GCS Service from traditional local and regional providers, whose service personnel are typically limited by a specific equipment specialty.

PARTS AND PREVENTATIVE MAINTENANCE

To fix equipment and get busy kitchens back up and running as quickly as possible, fast access to the right parts is a necessity. GCS Service stocks more food equipment parts than any other independent distributor in the world, and each service vehicle carries its own parts supply. Should a more unique part be needed, GCS state-of-the-art computer system will track it down and ship it immediately through the divisions network of regional parts locations another advantage of a nationwide service network.

GCS also boasts a nationwide parts distribution network with more than 30 warehouse locations across the country. About a third of the divisions business is generated by sales of replacement parts directly to customers that employ their own in-house maintenance personnel, as well as to other service companies, without technician involvement. In addition to repairing equipment, GCS Service associates also take a proactive approach to helping customers avoid costly downtime and protect their equipment investments. By providing regular consultation through a customized maintenance plan and schedule, problems can be prevented before they occur. This not only extends equipment life, it aids in the reduction of energy consumption and helps eliminate unnecessary food waste.

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Reaching the Customer

provider. These partnerships allow GCS to build solid relationships with customers during the warranty period relationships that often continue long after the warranty has expired. Being named an authorized warranty provider in a specific geographic market also makes GCS the manufacturers factory-authorized parts distributor in that market. This arrangement provides Ecolab a further opportunity to forge customer relationships.

TRAINING
Since the ability of its technicians to fully understand the operation of all types of commercial kitchen equipment encompassing many different models built by a multitude of manufacturers is central to GCSs service offering, comprehensive training and continuing education comprise the foundation upon which the divisions field organization is built. GCS technicians must possess a thorough base knowledge of the physics of electricity, gas, heating and cooling. They receive specific technical instruction in two ways: directly from equipment manufacturers themselves and through GCS University, the divisions own training facility. GCS University provides service associates consistent, ongoing training on a broad range of equipment. The programs in place at GCS University are also designed to establish and sharpen each associates interpersonal skills. This training gives the technician the ability to work more effectively with their customers. In addition to the in-house training, GCS sales and service associates are also certified through the Commercial Food Equipment Service Association (CFESA) and adhere to governing industry standards, such as local codes and manufacturer specifications.

Prior to its 1998 acquisition by Ecolab, GCS Service built its business by providing warranty, repair and parts replacement service for major food equipment manufacturers serving the restaurant, hotel, hospital, nursing home, contract feeder, school and university foodservice markets. Today, GCS continues to expand its customer base by partnering with other Ecolab divisions that serve the foodservice and hospitality industries, including Institutional, Kay and Pest Elimination. These partnerships enhance GCS understanding of the customers business and allow for integrated solutions where applicable. Also driving the divisions growth are partnerships with equipment manufacturers to provide warranty services. An ever-growing number of manufacturers are leveraging Ecolabs expertise and nationwide reach by designating GCS Service as their factory-authorized warranty service

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A GCS Service Call

GCS service calls are a blend of regular maintenance, prospective customer visits and on-demand calls. Each service call can involve a variety of equipment types. Technicians start their days as early as 4 a.m., depending on customer needs. Service vehicles hold a full range of commonly needed parts and repair tools, and GCS Service technicians are fully prepared for almost anything. For example, one location might have a maintenance contract and may only need the thermostat calibrated on a refrigeration unit. The next visit could require the rewiring of a dishmachines control panel, while a subsequent sites fryer needs to be completely rebuilt. Whatever the customers needs, the responding technician is trained to utilize whatever resources are necessary to troubleshoot the problem and then correct it as quickly as possible. This entails tapping into the technicians own base of knowledge, which is vast and always expanding, as well as using the appropriate diagnostic equipment. The technician also has access to parts experts and GCS own Technical Assistance Group, which ensures up-to-date knowledge and high quality control standards. Preparation is key to the successful GCS service call. This not only requires the technician to ascertain the problem by effectively communicating with the customer, but also to have the correct equipment specifications and replacement parts on hand, and provide the customer with a realistic estimate of the time it will take to complete the repair. In this regard, GCS technicians have to leverage their technical know-how and interpersonal savvy on every call. During a regular preventative maintenance service call, the GCS Service technician evaluates every component of the equipment. For a fryer, as an example, the technician inspects the fry tank and drain valve for leaks, calibrates thermostats, tests safety valves, inspects or cleans burners, checks pilot control, tests the automatic basket lift, inspects the gas flex hose for leaks, and inspects all electrical components. Steam cookers with boilers, meanwhile, are cleaned to reduce scale buildup and corrosion that would waste energy and shorten the useful life of the equipment. Every piece of equipment from ovens to dishwashers to grills receives this same comprehensive treatment to ensure smooth, efficient operation and no downtime. All work is done to meet local codes, and is guaranteed to operate according to manufacturer specifications. In fact, GCS has parts and/or authorization from more than 400 kitchen equipment manufacturers to perform regular maintenance and repair work on their items. GCS technicians are also in constant contact with their branch dispatcher who tells them of any non-scheduled visits they need to make. Before leaving any customer site, the GCS technician completes and leaves behind a written service report and reviews with the manager every aspect of the visit, noting any areas for improvement and any maintenance or repair completed. Then its on to the next call.

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International
Ecolab reaches beyond its U.S. borders to serve customers in Europe, Asia Pacific, Latin America, Africa, the Middle East and Canada. In addition to its wholly owned worldwide operations, Offering seamless service worldwide. Ecolab reaches customers through its export business, In a global economy, its essential which employs an extensive distributor network.
that a service company be able to respond to its customers needs wherever that customer is located, whatever hours it keeps. With direct operations and a worldwide network of distributors and licensees, Ecolab offers global coverage and consistency thats second to none.

OVERVIEW

Operations

Globally, Ecolab takes the same customer-driven approach to providing premium cleaning, sanitizing and service solutions as it does in the United States. Although a number of the companys domestic divisions have yet to expand overseas, Ecolabs core institutional and food and beverage offerings are available in all markets with additional businesses added as demand dictates. Many international offerings are essentially the same as their U.S. counterparts, though tailored as necessary to meet unique local and regional needs. Most importantly, the underlying premise remains unchanged: to provide the highest quality products and systems, backed by superior service, on a consistent basis in every customer facility. Such consistency is essential to the many Ecolab customers who are chain accounts operating globally. The international sector has grown substantially in importance to Ecolabs overall business mix. From a modest beginning in the 1950s, the number of employees has grown to nearly 12,000, with international sales accounting for nearly half of the companys total revenue. Future growth is equally promising. Today Ecolab services markets with a total population of 3 billion, while another 3 billion more live and work in markets the company has yet to tap. Furthermore, international customers increasingly look to Ecolab for consistency and expertise in service, products and programs as they expand their chain businesses.

Kiseki
Kiseki is the Japanese version of Ecolabs GeoSystem 9000 solid warewashing system, which debuted in the United States. Kiseki features color- and shape-coded noncaustic blocks to deliver the ultimate combination of superior cleaning power, improved safety, ease of use, and value.

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International
EUROPE
Europe is the largest international market in which Ecolab operates, and alone represents over a quarter of the companys total sales. Ecolab first entered the European market in 1954 with the establishment of a subsidiary in Sweden. From there, additional operations quickly followed in Scandinavia, and finally throughout Western Europe. In 1991, Ecolab and Henkel KGaA of Dsseldorf, Germany, formed a 50-50 joint venture to serve Europe. This set the stage for a very successful 10-year partnership that culminated in Ecolab acquiring 100 percent ownership of the European operation in November 2001. Today, Ecolab serves customers in Europe through six primary divisions Institutional, Food & Beverage, Textile Care, Professional Products, Healthcare and Pest Elimination that mirror the companys businesses elsewhere in the world. The Institutional business provides warewashing and related products and services for commercial, hotel, restaurant and catering kitchens. Ecolabs European sales-and-service team focuses on the premium end of the market, where the requirements for cleaning and sanitizing results, and the need for service, are high. In addition to warewashing products and services, the Ecolab line includes on-premise laundry and specialty offerings such as housekeeping solutions, as well as the Raburn brand line of ancillary equipment. The emphasis here is on service, with products sold directly to end-users by Ecolab representatives. While chain accounts represent a smaller share of the market in Europe than in the United States, they are nonetheless a significant and growing portion of the European business. The product line is well suited to chain customers since many of them operate globally and demand worldwide consistency in offerings. Ecolabs global operations are uniquely positioned to address their needs for central purchasing, product and service standardization, and the assurance of consistent results throughout the chains kitchen and laundry operations no matter where they may be. These benefits offered by Ecolab will increase in importance as chains continue their expansion into Eastern Europe. Through an extensive network of European distributors, Ecolab focuses on those segments of the institutional market where the requirements for cleaning and sanitization results and service are lower, or where the demand does not justify a direct sales approach. Here cleaning and sanitizing products are sold primarily through distributors. The Ecolab support team trains the distributor sales force to fulfill the hygiene standards and service needs expected by the Institutional customer. The Food & Beverage business addresses four key market segments: beverage, dairy plant, agriculture/dairy farm and food processing. Beverage is its largest market, partially due to returnable bottles both glass and polyethylene terephthalate (PET) plastic. Market segments, however, vary in size by country. For instance, Germany, France and Benelux possess notable dairy business, while in Germany, Scandinavia, the United Kingdom and Italy food processing is a substantial market. In the brewery market, Germany, Belgium, the Netherlands, the United Kingdom and Eastern Europe play an important role. International chains also play an important role in the beverage and food business, contributing an increasing share of total Food & Beverage sales. As with the Institutional business, Eastern Europe offers growth opportunities for Food & Beverage. With a population roughly equal to Western Europe, sanitation demands and standards are increasing and creating increased demand for Ecolab. Textile Care is the market leader and premier supplier to the professional laundry customer in Europe. With European-wide coverage, Textile Care offers international customers the same programs and service in all countries. The division is known for its innovative programs and engineering, its environmental awareness, and its expertise in laundry processing for all textile classifications. Textile Care has pioneered the paste technology, which provides customers with concentrated washing performance dispensed directly from 280 kg drums for industrial laundries and 5 kg packages for smaller washer extractors. Along with specialized detergent systems, Textile Care offers professional laundries significant cost reductions with the water and energy management program. This Total Process Management approach to laundry operations combines detergents with water and energy savings systems, exact process monitoring and professional advice to achieve an optimal result. Professional Products services commercial and industrial businesses, large schools, retail facilities, hospitals and nursing homes. Contract cleaners also represent a significant portion of Ecolabs business in this market. Professional Products develops, manufactures and markets cleaning and disinfecting systems consisting of chemicals (detergent, waxes, etc.),
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equipment (its Rasant system is the leading floor care offering in Europe), machines and services. It partners with customers, presenting them with complete programs that include selling or leasing machines, such as floor scrubber dryers, maintaining the machines, and providing the products used with the machines. As an industry leader in contamination control and infection prevention, Ecolab provides total hygiene solutions for the healthcare market. Ecolabs Healthcare Division delivers value-added products, programs and services to meet our customers unique needs, no matter where theyre located around the globe. Ecolab offers infection prevention strategies through comprehensive product lines, including instrument care and surface sanitizers, liquid and foaming surgical scrubs, healthcare personnel hand washes, antimicrobial waterless hand rinses (hand rubs) and much more. The Healthcare Divisions cleaning, disinfection and sanitation solutions provide the framework for effective infection prevention. Ecolab has a complete portfolio of products to fully serve the broad needs of the healthcare industry. Like its highly successful North American counterpart, Europes Pest Elimination business emphasizes the elimination and prevention of pests, not simply control. Introduced to Europe in 2002, Pest Elimination currently operates in the United Kingdom and Ireland, with plans to expand further in Europe in the coming years. Ecolabs service specialists receive extensive training, along with the tools and equipment necessary to solve the toughest pest problems. Pest Eliminations comprehensive programs are tailored to meet the unique needs of each customer. To help ensure the highest level of performance, new Pest Elimination products and equipment are extensively tested, and the business has an expertly trained technical support staff. Ecolab is accelerating the transfer of proven products and technologies from its successful U.S. businesses to Europe, coordinating marketing approaches around the world to meet the global needs of key world accounts. Likewise, Ecolabs U.S. businesses and other international regions are availing themselves of unique products and technologies offered in Europe, particularly for bottlewashing in the beverage and brewing industries, and low environmental impact formulations. This interchange of products and technology is all within the global strategy to offer customers consistent, high-quality products and services wherever they are located. Food & Beverage businesses reach a critical mass, as market demand warrants. Ecolabs strategy in Asia Pacific reflects a successful marriage of the companys core strengths coupled with local insight. For instance, Ecolab has focused on building strong corporate accounts organizations in markets such as Japan, Australia and East Asia. These organizations provide an effective means of serving large national and multinational chains. Likewise, the regions global accounts staff has helped develop business with local affiliates of multinational and regional chains, providing a springboard for delivering consistent service and quality results. Local, national and global customers served in this region mirror those Ecolab serves elsewhere in the world, including hotels, restaurants, and food and beverage processors. Ecolabs service to customers is similarly consistent and uniform. Training is especially valued. As hotel properties, restaurants and food processing facilities rush to open in this rapidly expanding region, they rely on Ecolab to train their employees in cleaning and sanitation programs. In fact, when many new hotels open, they are staffed by managers who have already worked with Ecolab and are transferred from other facilities. Frequently the transferees request Ecolab products and training by name. Increasing its value-added differentiation, Ecolab operates the regions first toll-free medical emergency hotline for customers, providing local language response in all countries. Products developed and introduced in the United States and other Ecolab markets have facilitated the companys growth in Asia Pacific. These are supplemented by products created for the unique needs of Asia Pacific markets, including Oasis Compac for the Japanese institutional market and Stabilon ACP, a bottlewashing additive for food and beverage processors in East Asia. Most of the products are made at the regions manufacturing facilities, demonstrating Ecolabs commitment to serving customers locally, while maintaining consistently high levels of quality. Total quality is prized and pursued by the company here, as elsewhere. Manufacturing facilities in Japan, New Zealand and Australia have already earned ISO 9002 accreditation and other major locations are conducting the process.

ASIA PACIFIC
During the past decade, Ecolab has grown tremendously in the Asia Pacific region. Today the company covers the bulk of the Asia Pacific market and is the overall leader. As in the United States, Institutional is Ecolabs largest business, contributing more than half of Asia Pacifics total sales. Food & Beverage is also well-represented and has a strong market position. Both are present in each of Ecolabs operations throughout the region. In addition, the company offers Pest Elimination, Professional Products and Water Care programs in several countries adding them when the core Institutional and

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training and reporting systems designed to specifically address the needs of the supermarket customer. Introduction of the MarketGuard program has provided excellent growth opportunity, initially in Brazil, Mexico and Puerto Rico. With rapidly growing operations in Mexico, Caribbean and Brazil, Pest Elimination presents strong opportunity for Ecolab to leverage its core Institutional and Food & Beverage customer base. Other services Professional Products, Water Care Services and Engineered Equipment are being introduced in certain countries as market needs dictate.

CANADA
Ecolabs business in Canada has direct operations across Canada and is managed as part of the companys North American strategy. Consistent with Ecolabs Circle the Customer Circle the Globe strategy, it offers Institutional, Food & Beverage, Textile Care, Professional Products, Vehicle Care, Kay and Pest Elimination products and services meeting the full spectrum of customers cleaning and sanitation needs. The companys Canadian customer base is similar to the United States and includes hotels, restaurants, foodservice operations, healthcare facilities, quickservice operations, laundries, dairy plants, farms and food and beverage processors. To maintain the utmost in quality and consistency, operations in the two countries work closely together to launch new products and programs and to serve their customers. This is particularly important for Ecolabs multinational chains. business-related travel. This has dramatically increased Ecolabs business potential. Ecolabs customer base in Latin America is similar to that of the United States. Besides hotels, customers include prestigious restaurants, industrial cafeterias, supermarkets, in-flight catering operations, dairy farms, dairy plants, mines, heavy industry, food and beverage processors, and pharmaceutical manufacturers. Ecolab implements its Circle the Customer Circle the Globe strategy by providing these customers with a wide, consistent array of products and services that meet their cleaning and sanitation needs. The company offers Institutional and Food & Beverage programs throughout the region, and Kay, Pest Elimination, Industrial, Professional Products and Water Care Services programs in a few select Latin American countries. Institutional and Food & Beverage form the backbone of the sales mix. The Food & Beverage market is particularly strong in Central America, Mexico and South America, and it presents excellent growth opportunities for Ecolab. The companys service orientation is highly valued by Food & Beverage customers, particularly those in the beverage and brewery markets, where Ecolab representatives intimate involvement helps customers achieve desired quality standards. Institutional also presents strong opportunities. Ecolabs ability to leverage leadership positions in local foodservice and hospitality segments, for example, has ensured a successful entry into the food retail market with the MarketGuard
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Ecolab invests significantly in hiring and training local employees in order to deliver the superior service it guarantees throughout the world. Content and quality of service calls are consistent with those offered elsewhere. Products, too, promise and deliver consistency and proven results. Most are developed in

LATIN AMERICA
Ecolabs business in Latin America serves a total market of more than 500 million people. The company has direct operations in all major countries where economic conditions and the potential for growth are established. Manufacturing plants throughout Latin America ensure quality products and timely service. Growth opportunities continue in Latin America. Deregulation of investments and market practices is making it easier than ever before to do business in the region. Major hospitality expansion is occurring throughout Mexico, South America and parts of the Caribbean to accommodate the boom in

Oasis Compac
Ecolab meets international customers needs with products, systems and services specially adapted for different markets. Oasis Compac, a smaller version of Ecolabs popular Oasis cleaning system, was created for marketplaces such as Asia, where space is often at a premium.

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the United States and Europe and adapted to meet international customers requirements. As the company taps growth opportunities, it will continue to transfer and adapt products, programs and technology to address specific needs.

MIDDLE EAST

Ecolab reaches customers throughout the Middle East primarily through its export operations. Ecolab Export provides sales coverage in countries where direct operations have not yet been established. It sells directly to end-users and to a global distributor network, allowing Ecolab to serve any Ecolab serves select African countries customer, anywhere in the world. It also through a direct sales force and reaches provides training and support to the others through export, distributors and licensees. While Institutional and Food & distributor network. Ecolab Export has an Institutional Division with product Beverage are Ecolabs largest businesses, and system offerings that mirror Ecolabs the company also offers Textile Care, Institutional operations elsewhere, Water Care and Professional Products programs, serving a customer base similar providing the same kitchen, hospital, housekeeping and laundry solutions. to that in the United States. Customers Likewise, the Food & Beverage business include hotels, restaurants, laundries, serves brewery, soft drink, food proceshospitals, catering companies and sing and dairy customers. In Israel, the contract cleaners, as well as beverage, company utilizes a joint venture to brewery, soft drink, dairy and food address that countries burgeoning processing plants. institutional and food and beverage markets. South Africa is the largest African country in which Ecolab operates. It has a strong base of global accounts, International Cleaning and many found both in Europe and North Sanitizing Business Mix America, which helps contribute to Ecolabs Circle the Globe strategy. Africa, Export Canada 6% There are 40 million people in South Latin America 6% and others 2% Africa, which is considered the most industrialized of the African nations and the continents economic powerhouse. It will serve as a base for continued expansion across the rest of the Asia Pacific 16% continent.

AFRICA

Europe 70%

Mar k e t G u a rd
The complete, step-by-step MarketGuard program helps supermarkets abroad achieve and maintain the highest standards of cleanliness and sanitation.

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Inside Ecolab Japan

Ecolabs subsidiary in Japan is a prime example of how the companys international operations strive to deliver the same consistently high-quality products and services the world over while meeting each individual countrys unique needs. Established in 1969, Tokyo-based Ecolab Japan is the companys largest business in the Asia Pacific region. It employs several hundred sales-and-service associates in three divisions: Food & Beverage, Institutional and Kay. The divisions mirror their counterparts in the United States, with Food & Beverage primarily serving customers in Japans brewing and beverage, dairy plant, dairy farm, food processing and pharmaceutical markets. Likewise, the Institutional Division provides the countrys burgeoning foodservice and hospitality industries with its core warewashing, housekeeping and on-premise laundry systems. Also offered are Kay Divisons products and programs for quickservice restaurants.

AT A GLANCE Institutional is Ecolab Japans largest business. Hotel and restaurant chains comprise
Established: 1969 Headquartered: Tokyo Manufacturing facilities: Noda and Shika Sales-andservice associates: More than 420 Operating divisions: Institutional Kay Food & Beverage

a dominant portion of the divisions customer base, and they face many of the same challenges as Ecolab customers in other parts of the globe. These include high employee turnover, rising energy costs, concerns about foodborne illness outbreaks and more. In Japan, however, restaurant and lodging operators face an additional challenge: space constraints. This is especially true in the countrys densely populated urban areas, where square footage is at a minimum.

This means, for instance, that most restaurant kitchens are by necessity compact operations and the dishmachines used within these kitchens have to be compact as well. Smaller dishmachines translate to smaller load capacity, forcing restaurants to wash and dry their dishware at very high temperatures in order to achieve a fast turnaround. Making this more complicated is the fact that hot water pressure in Japan is generally quite low. Ecolab responded with Ecowash, a dishmachine-leasing program that provides state-of-the-art dishmachines specially designed to operate efficiently at high temperatures and low water pressure. Of course, the program also features Ecolabs premium warewashing products and comprehensive service. Ecolab customers in Japan also face strict government regulations regarding solid waste, along with very expensive waste disposal costs. These concerns led Ecolabs environmentally friendly solid warewashing program, GeoSystem 9000, to become the fastest-selling new product in Ecolab Japans history. Ecolab has successfully positioned itself as a leader in total sanitation, offering extensive programs that help each account protect its employees, its customers and, hence, its reputation. SafeSteps, for instance, was developed to promote the concept of brand protection through food safety. It includes a full range of highly effective cleaning, sanitation and service solutions, as well as personalized employee training and colorful, easy-to-understand support materials.

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A Subsidiary Operation.
As part of its Circle the Customer Circle the Globe strategy, Ecolab serves customers worldwide through direct operations in Canada, Asia Pacific, Latin America and Africa. Ecolab subsidiaries are generally fully functioning businesses within their country markets, enabling them to best understand and serve their markets unique needs. This look at Ecolab Japan offers insight into how an Ecolab subsidiary functions.

Ecolab is also at the forefront of food safety efforts in Japans very demanding food and beverage processing industry where sanitation standards are equally high. This is particularly true among brewers and beverage processors especially those that produce ready-to-drink teas, coffees and sport drinks which are enormously popular in Japan. These low-acid, low-sugar drinks require highly effective sanitation programs to help ensure product quality and long shelf life. Working directly with beverage processors, as well as the industrys leading manufacturers of packaging systems, Ecolab developed a technologically advanced sanitation program for these very spoilage-sensitive refreshments. Despite the relatively small geographic size of the Japanese island chain, its food processing and agribusiness markets are quite large and sophisticated. For instance, significant farming and food production operations on the islands of Hokkaido and Kyushu help meet consumer demand in the countrys populous metropolitan areas. Ecolab Japan representatives maintain and develop long-term relationships with each accounts key decision-makers, providing new technology to further improve hygiene and operational standards. Ecolab also relies on a network of distributor partners to reach the large number of small, independent farms and food plants in Japan. Consistency in results, as well as in service, is paramount to Ecolabs customers, many of which are regional, national and global chains. Through subsidiaries like Ecolab Japan, Ecolab can deliver on this promise, and successfully implement its Circle the Customer Circle the Globe strategy.

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Support Functions
Over the years, Ecolab has made significant investments in four key support functions that along with the sales-and-service force form the framework of the business. These investments, which alone annually exceed the sales of most of Ecolabs competitors, are in Research, Development & Engineering; Manufacturing & Distribution; Customer Service; and Information Technology. Strengths in these areas of the business result in product and service quality that competitors cannot match. They also fuel Ecolabs long-term growth, yielding a broader array of products and services, and a strong return on investment for Ecolab shareholders. The companys Research, Development & Engineering operation boasts a well-educated, creative staff that develops proprietary products and equipment for the markets Ecolab serves. It is known for its wide range of innovative, superior-performing systems. The companys investment in Manufacturing & Distribution includes state-of-the-art equipment and processes to make and deliver these products to customers. Manufacturing & Distribution facilities are strategically located and efficiently run to provide high-quality products and excellent service to customers at the lowest possible cost. Supporting the sales-and-service force and the companys customers in the United States is ECOlink, the companys national customer service center. ECOlink offers an invaluable communication service, unparalleled by any in the industry. Ecolabs Information Technology organization supports the companys sales and service mission by developing a wide range of computerbased business tools that help the company serve its customers more efficiently and effectively.

OVERVIEW

Research, Development & Engineering Manufacturing & Distribution Customer Service Information Technology

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RESEARCH, DEVELOPEMENT & ENGINEERING
Innovative to the core
Innovation is the cornerstone of Ecolabs R,D&E success. Today, R,D&E is a global technical organization with more than 700 associates worldwide. Their disciplines include chemistry, microbiology, entomology and food science; as well as chemical, packaging, mechanical and electrical engineering. In North America, these associates are located at research facilities in St. Paul, Minnesota and Greensboro, North Carolina. In Europe, Ecolabs technical center is situated in Dsseldorf, Germany, with technical support facilities located in many other European countries. In addition, Ecolab has R,D&E facilities in Japan, Australia, China, Brazil and South Africa, with technical service in many other countries in Asia Pacific and Latin America The primary objective for the R,D&E organization is to develop value-added solutions for its customers. This is accomplished by first understanding customers needs, taking an innovative systems approach to solving problems, leveraging Ecolabs technology and competencies on a global basis, and following through with superior technical support and training. All of these attributes provide customer solutions that differentiate Ecolab from the competition in every market it serves. New product and service development at Ecolab begins with broad customer understanding. R,D&Es associates have experience in addressing customer needs in the full range of markets Ecolab serves including agriculture, food processing, food service, food retail, textile care and healthcare. Because of Ecolabs extensive sales and service organization, associates have an extraordinary knowledge of what is most important to customers: food safety, public health, brand protection, employee safety, operational efficiencies, energy and water use, employee training and their customers satisfaction.

Once a customer need is established, Ecolab uses a new product introduction process where project concepts are evaluated for feasibility, supported through development and launched into the market. The result is an ever-increasing pipeline of innovative solutions. This is the fuel that helps drive Ecolabs growth. R,D&E has a proven track record of developing complete, innovative solutions for its customers. Stretching over 80 years of innovation, these innovative products include: clean-in-place (CIP) technology for processing lines; a line of solid warewashing and sanitation products now expanded to include applications in laundry, food processing, dairy and healthcare; mobile janitorial/ housekeeping dispensing application systems; fly-trap technology; low-temp commercial laundry technology; and concentrated products with reduced

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plastic packaging. By focusing on a true systems approach to problem-solving, R,D&E combines chemistry, microbiology, process technology, packaging, dispensing, reliability engineering, process control and service capabilities to develop the optimum solution. The success of this approach is apparent in the more than 4,600 U.S. and international issued and pending patents Ecolab has under its name. To ensure that Ecolab maintains leadership in health and hygiene solutions, the company needs to ensure world class capabilities in its core technologies and competencies. Hard surface cleaning, sanitizers, disinfectants, biocides, skin care, food safety, dispensing, process sensors and controls are just a few of its core technologies that will continue to drive Ecolabs product and service platforms. Leveraging R,D&Es superior technology globally is also a key advantage. Ecolab utilizes global teams to contribute to the advancement of its core technologies and competencies. Ecolab also collaborates

extensively with universities, industry partners, start-up technology companies and suppliers to increase its capabilities and speed to market to bring the best possible solutions to customers. Finally, Ecolab combines its differentiated systems with the superior technical service of associates as they work to solve an ever-evolving number of customer issues. These associates offer analytical and microbiological resources to help identify the appropriate customer solutions, provide technical lab service to help diagnose a problem, and act as consultants to Ecolabs 24-hour customer assistance call center. In fact, R,D&E experts respond to more than 200,000 requests for assistance annually. Ecolabs focus on solving customer issues requires R,D&E associates to spend significant time in the field testing new products, as well as training customers to use them correctly. Not only do these experiences effectively serve customer needs, they also add to Ecolabs knowledge base on a wide range of application technologies and begin the

cycle of identifying customer problems and creating new solutions all over again. All of these aspects are essential to Ecolabs customer-focused approach to new offerings. This customer driven spirit is the core of Ecolabs culture, which helps guide associate behavior worldwide. Ecolabs commitment to R,D&E has provided the company with leadership in health and hygiene solutions. The company will continue to make the required investments for the development of innovative, value-added products and systems for its customers and worldwide markets.

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centrally located within their countries or the regions they serve, and can usually be found in the industrial areas of large metropolitan cities such as Sydney, Australia, and Buenos Aires, Argentina, where access to raw materials, personnel and transportation resources are abundant. The companys philosophy is to manufacture products wherever an economic, process or quality assurance advantage exists. Most are currently manufactured in-house. In addition, in-house manufacture is used for certain unique offerings, such as Ecolabs solid products, where proprietary manufacturing techniques dictate internal production processes. Ecolab uses global sourcing for production as well as for purchasing raw materials. Ecolabs network is set up so that raw materials purchasing, as well as product manufacturing, can be shifted among locations worldwide to control product costs at globally competitive levels with no reduction in quality. Manufacturing typically consists of blending powders and liquids and casting solids. Complex operations are automated and computer-controlled to guarantee consistent quality. Inventory investment is minimized, and better than 98 percent next-day shipment to customers is achieved through the use of flexible, short-run equipment and computerized planning systems. The plants currently are running at about 80 percent capacity. Several of our locations are ISO 9002 certified and the others are in the process of obtaining certification. Ecolabs facilities are in good condition. A proactive program is in place at all locations to ensure compliance with regulatory requirements.

MANUFACTURING & DISTRIBUTION:

Quality products and quick deliveries
Ecolabs Manufacturing & Distribution facilities are designed to support the marketing, direct sales and distribution activities of its U.S. and international businesses. The company has approximately 3,200 associates in its manufacturing and distribution facilities worldwide. Ecolab operates 14 manufacturing plants in the United States. In addition, there are five distribution centers, and the company uses 16 public warehouses. These facilities are located near major metropolitan areas and can provide overnight service into the surrounding locales. This gives Ecolab a significant service advantage and reduces distribution costs. The company also manufactures proprietary dispensing equipment for both U.S. and worldwide accounts, and manufactures and distributes Raburn commercial dishwashing racks and accessories and dishmachine repair parts. In addition, there are 32 plants outside the United States, including 11 in Europe, one in Canada, six in Latin America, two in Africa and 12 in the Asia Pacific region. Most of these facilities are

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20 23 22 29 25 21 28 26 24 11 11 10 9 18 16 16 16 16 16 19 27 13 14 14 1 2 1 1 1 11 11 1 1 3 15 4 7 5

12 12

17

ECOLAB PLANT PROFILES

Location Mfrg/ Whse (Sq. Ft.) Annual Production Volume (U.S. tons) Types of Products Headcount Location Mfrg/ Whse (Sq. Ft.) Annual Production Volume (U.S. tons) Types of Products Headcount

1. UNITED STATES Huntington, IN Dallas, TX Eagan, MN** Greensboro, NC San Jose, CA Garland, TX Hebron, OH Joliet, IL Martinsburg, VA South Beloit, IL McDonough, GA 2. CANADA 3. MEXICO 4. COSTA RICA 5. PUERTO RICO 6. ARGENTINA 7. BRAZIL 8. CHILE 9. INDONESIA 10. SINGAPORE 11. THAILAND Navanakorn YSC 12. CHINA Guangzhou Minhang 13. SOUTH KOREA 67,164 26,900 23,069 5,200 12,500 10,000 Liquids, Powders Liquids, Powders, Solids Liquids, Powders 24 34 30 24,070 15,064 7,800 2,500 Liquids, Powders Liquids, Wax 29 25 127,000 24,000 133,000 193,000 175,000 239,000 225,000 610,000 228,000 317,000 141,000 120,400 40,000 23,000 25,000 30,000 60,000 60,000 11,836 42,943 20,000 7,000 6,000 82,000 84,000 57,000 89,000 66,000 210,000 80,000 404,000* 160,000* 86,000 44,000 14,000 3,750 2,300 3,300 13,450 6,500 3,500 6,800 Liquids Liquids, Powders Solids, Liquids, Powders Liquids, Powders Liquids Solids, Liquids, Liquids Solids, Liquids, Powders Liquids Equipment Equipment Solids, Liquids Liquids Liquids, Powders Liquids, Powders Liquids, Powders Liquids, Powders Liquids, Powders, Solids Liquids, Powders Liquids, Powders, Solids Liquids, Powders 117 25 110 260 72 179 107 436 141 356 150 126 68 67 15 13 13 49 30 15 16

14. JAPAN Noda Shika 15. PHILIPPINES 16. AUSTRALIA Canning Vale Cheltenham Dural Kwinana Revesby 17. NEW ZEALAND 18. SOUTH AFRICA 19. BELGIUM Tessenderlo 20. DENMARK Valby 21. FRANCE Chalons 22. GERMANY Siegsdorf 23. GREAT BRITAIN Cheadle Hulme Leeds 24. GREECE Mandras 25. IRELAND Mullingar 26. ITALY Rozzano 27. NETHERLANDS Nieuwegein 28. SLOVENIA Maribor 29. POLAND Ratibor

40,888 54,876 27,685 19,540 119,156 8,608 26,900 83,928 89,039 100,000 153,000 70,000 280,000 42,000 52,575 2,500 18,000 50,000 126,000 168,000 39,000 1,500

15,200 11,600 2,700 6,400 16,200 230 500 9,700 21,000 10,000 85,000 32,000 125,000 135,000* 30,000 3,000 8,400 7,500 30,000 35,000 20,000 7,500

Solids, Liquids, Powders Liquids, Raburn Racks Liquids, Powders Liquids Liquids, Powders Liquids, Powders Liquids Liquids, Powders Solids, Liquids, Powders Liquids, Powders Solids, Liquids Liquids Liquids, Powders Equipment Liquids Liquids Liquids Liquids Liquids Powders Liquids Liquids

34 32 15 7 50 5 2 19 45 29 160 60 210 120 30 45 15 18 60 80 60 15

City of Industry, CA 155,599

Liquids, Equipment 100

Elk Grove Village, IL125,000

* Equipment: Production hours ** Pilot plant

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volume, customer service representatives answer 90 percent of the customer calls within 10 seconds (or after two rings). Training is critical, and ECOlink conducts a thorough program. New representatives receive an initial four to six weeks of solid training. This includes learning how the on-line system works and becoming familiar with Ecolabs products and equipment. It also includes learning how to create orders, take and relay messages, look up information for customers and other callers, key in meter readings for the low-temperature warewashing program, handle customer returns, and a variety of other tasks. During the next training phase, new representatives work on the phone side-by-side with an experienced representative. All during the education process they are performance tested insuring they can effectively handle any call they receive. They continue to receive guidance until Ecolab is confident in their abilities to serve customers on their own. Their education, in fact, never ends. Representatives are trained on systems enhancements nearly every month, and on new products and equipment as they are introduced. Recently, ECOlink introduced Computer Based Training to enhance the ongoing educational programs that test them after each module. ECOlink has been recognized internally and externally for its outstanding service. Ecolab received multiple honors in the National Call Center Award for Excellence program, which annually recognizes companies that have made a significant contribution to excellence in sales and service to customers. ECOlink was cited for its superior systems for customer sales and service, and for its innovative applications and programs that successfully integrate automation technologies and people. With its commitment to excellence, rapid response, professionalism and helpfulness, ECOlink will continue to play an integral role in Ecolabs customer relationships for years to come.

ECOlink, Ecolabs national customer service center, is a crucial link between customers and the sales-and-service force. The 190 employees at this center serve more than 400,000 customers in both a product order entry and a message center capacity. Following are some ECOlink highlights. Operates 24 hours a day, seven days a week Daily averages: more than 40,000 calls; 5,000 orders; 25,000 messages; 30,000 alphanumeric pages Approximately 13 million calls handled per year Customer service representatives answer 95 percent of the customer calls within 10 seconds (after two rings) Each representative elds 250 calls a day There is an electronic messaging system that immediately transmits all messages to each sales-andservice representative to respond to urgent customer requests Voice mail allows sales-and-service representatives to contact each other directly instead of a customer service representative allowing customer service representatives to focus on customer calls State-of-the-art Customer Relationship Management (CRM) contact system

ECOlink
The crucial link between customers and the sales-and-service force
At its May1985 inception, there were three customer service representatives set up to handle two sales regions for the Institutional Division. This was the first step in Ecolabs plan to build a national customer service function, beginning region by region in Institutional, and subsequently adding the other operating divisions. Back then, even those in charge could only imagine how large, effective and important it would become to the companys day-to-day operations. Today ECOlink is a dream come true though not without much hard work on the part of many. ECOlink is an around-the-clock operation that never closes. Its 190 associates field more than 50,000 calls a day. About 30 percent of the calls are from customers ordering products or leaving messages for their sales-andservice representatives. The remaining calls come from Ecolabs sales-andservice representatives, who check in several times a day for messages and respond to alphanumeric paging which has reduced the time it takes to get a critical customer message from ECOlink to a field associate by 70 percent and may also order products. ECOlink serves more than 400,000 internal and external customers and annually handles more than 13 million calls. Despite the huge
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product and service offerings via an easily navigable series of interlinked web pages. Select customers can also access personalized home pages, called extranet sites, through which they can view their ordering history, download government-mandated Material Safety Data Sheets, and use instant messaging to get quick answers to questions about particular offerings. When these customers log on to their extranet site, the home page greets the user by name. It also displays the name, photo and contact information for the customers local Ecolab representative a feature that underscores the continuing importance of Ecolabs sales-and-service force, even those areas in which e-business is involved. Computers and the Internet will undoubtedly continue to have a significant impact on the industries Ecolab serves, and the company will respond with e-business solutions that buttress its core Circle the Customer Circle the Globe strategy. Someday, for example, remote monitoring might allow Ecolab to monitor dispensers and equipment electronically. When a soap dispenser runs low on product or a dishmachine requires repair, a signal dispatched by the equipment itself could be sent directly to Ecolab. In addition to alerting the customer of the problem, Ecolab associates would handle the problem immediately, either visiting the customer in person or administering an electronic solution. In addition to applications that directly support Ecolabs sales-and-service efforts, Information Technology also develops and maintains the behind-the-scenes information management infrastructure so critical to the companys daily operations. Especially important are programs for sales reporting, billing, accounting, payables and other financial processes. Information Technology works in close cooperation with Ecolabs other support functions as well, providing R,D&E, Manufacturing & Distribution, and Customer Service with systems and technological expertise. Like the companys other support functions, Information Technology will play a vital role in Ecolabs growth by leveraging the latest technological advancements to provide customers with improved quality and value.

INFORMATION TECHNOLOGY:
Business tolls for the 21st century
From its earliest days, Ecolab has emphasized the importance of face-toface sales, service and support, and an interpersonal connection between associate and customer. These remain at the heart of Ecolabs business philosophy today. From the hand-held computers used by a growing number of field personnel to the companys multifaceted Internet site, Ecolab now utilizes a broad spectrum of information technology resources to further strengthen its customer relationships. To that end, Ecolabs Information Technology organization provides application development, programming, network management, PC support and other e-business services across multiple functions within the company, including sales and service, marketing, R,D&E, customer relations, and more. These services help Ecolab increase competitiveness, improve customer service and retention, reduce overall operating costs, and communicate more effectively internally and externally. The Ecolab.com website, for instance, is not only a vehicle for investor relations and career information, but it also allows current and potential customers to familiarize themselves with Ecolabs
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Financial Objectives
Ecolab has established the following long-term nancial objectives:

ATTRACTIVE PROFITABILITY
Because of superior differentiated products, systems and service, Ecolab achieves attractive prot levels. Domestic prot margins currently are higher than international margins because of the greater business scale and more mature business development, the full product lines offered and greater use of new products and technology. Worldwide margins have attractive opportunities for improvement.

15 percent annual earnings per share growth. 20 percent return on beginning of the year shareholders equity. An investment grade balance sheet.

Ecolab possesses certain nancial characteristics that enable it to accomplish these objectives. These characteristics include:

STRONG CASH FLOW

Because of strong margins on most products, stable markets and low capital investment requirements, Ecolab generates a strong cash flow from operations.

STABLE, GROWING MARKETS

Ecolabs primary customer base schools, restaurants, hotels and other institutions tends to be less sensitive to the economic cycles faced by most businesses. Since Ecolab products fulll basic hygiene needs, they are less susceptible to expense reduction programs that may be implemented in tough economic times. This provides Ecolab with a relatively stable market in which to do business. International standards for cleanliness also are on the rise, especially in the Latin America and Asia Pacic regions. Ecolabs broad international presence positions it to respond to these changing demands. Accordingly, strong growth is predicted in those areas.

SOLID BALANCE SHEET, ATTRACTIVE RETURNS

Ecolabs attractive business and strong nancial management have resulted in a solid balance sheet. With a goal to maintain an investment-grade rated balance sheet, Ecolab continues to optimize its capital structure to drive growth. This has given Ecolab the nancial flexibility to fund its business needs while maintaining nancial discipline and yielding attractive returns on assets and investments.

MODERATE CAPITAL INVESTMENT REQUIREMENTS

Ecolab is primarily a service business. As a result, capital expenditures have generally amounted to approximately 6 to 8 percent of sales. This low capital requirement has allowed Ecolab to use its cash resources for other business investment purposes. A majority of Ecolab capital expenditures build ties to the customer. Rather than large capital spending projects, about two-thirds of all investment capital spending is for various systems that dispense customers cleaning and sanitizing products, and low-temperature dishwashing machines. This equipment is designed to use Ecolabs proprietary products wherever possible.

Financial Objectives Food & Beverage Division

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Shareholder Information
COMMON STOCK

ONLINE RESOURCES

Stock trading symbol ECL. Ecolab common stock is listed and traded on the New York Stock Exchange (NYSE) and the Pacific Exchange (PCX). Ecolab shares are also traded on an unlisted basis on certain other exchanges. Options are traded on the NYSE. Ecolab common stock is included in the Specialty Chemicals sub-industry under the Materials sector of the Standard & Poors Global Industry Classification Standard.

Visit Ecolabs Web site at www.ecolab.com/investor for financial information and investor news. Copies of Ecolabs Form 10-K, 10-Q and 8-K reports as filed with the Securities and Exchange Commission are available free of charge. These documents may be obtained on our Web site at www.ecolab.com/investor or by contacting: Ecolab Inc., Attn: Corporate Secretary 370 Wabasha Street North, St. Paul, MN 55102 E-mail: investor.info@ecolab.com

TRANSER AGENT, REGISTRAR AND DIVIDEND PAYING AGENT

Shareholders of record may contact the transfer agent, Computershare Investor Services, LLC, to request assistance with a change of address, transfer of share ownership, replacement of lost stock certificates, dividend payment or tax reporting issues. If your Ecolab shares are held in a bank or brokerage account, please contact your bank or broker for assistance. Computershare provides telephone assistance to shareholders Monday through Friday from 9 a.m. to 6 p.m. (Eastern Time). Around-the-clock service is also available online and to callers using touch-tone telephones. Telephone: (312) 360-5203; or 1-800-322-8325 TDD/Hearing Impaired: (312) 588-4110 Web site: www.computershare.com

DIVIDEND POLICY

Ecolab has paid common stock dividends each year since 1936. Quarterly cash dividends are usually paid on the 15th of January, April, July and October.

DIVIDEND REINVESTMENT

Governance Information: Disclosures concerning Board of Directors policies, governance principles and corporate ethics practices, including our Code of Conduct, are available online at www.ecolab.com/investor/governance Electronic Shareholder Communications: Shareholders of record may register to receive future Annual Reports, proxy materials or other shareholder communications by E-mail, including account statements and tax reporting forms. By electing Electronic Shareholder Communications, you help Ecolab control costs and protect the environment by reducing paper usage. To enroll online, go to www.computershare.com/us/sc/eclb Account Access: Shareholders of record may view their shareholder account information online at www.computershare.com For log-in assistance, shareholders may call the transfer agent at 1-800-322-8325.

Shareholders of record may elect to reinvest their dividends. Plan participants may also elect to purchase Ecolab common stock through this service. To enroll in the plan, shareholders may contact the plan administrator, Computersharing for a brochure and enrollment form.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

PricewaterhouseCoopers LLP 225 South Sixth Street Minneapolis, MN 55402

INVESTOR INQUIRES

Securities analysts, portfolio managers and representatives of financial institutions seeking information about Ecolab may contact: Michael J. Monahan External Relations Vice President Telephone: (651) 293-2809 E-mail: financial.info@ecolab.com

Shareholder Information

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for more information:

www.ecolab.com

or call:

1-800-35-CLEAN

WORLDWIDE HEADQUARTERS
Ecolab Inc. 370 Wabasha Street N. St. Paul, MN 55102 U.S.A.
2006 Ecolab Inc. All rights reserved. 26577/0804/0506