KAY

Vigorous new account gains and new product sales paved the way for Kay to achieve double-digit sales and operating income growth during 2003, outpacing each of the core industries it serves.

HIGHLIGHTS

> Maintained its strong competitive position, winning substantial new business, as well as strengthening its relationships with existing customers.

> Further bolstered its business in the food retail industry via MarketGuard, a cross-divisional program through which Kay's offerings are aligned with Ecolab's Pest Elimination and Professional Products offerings in a comprehensive package.

> Introduced more than two dozen new products including Liquid Storm XP and Liquid Storm packets, two highly anticipated additions to its Liquid Storm product line for power wash sinks.

> Made investments to meet growing customer demand for web-enabled management data and Kay field service activity at the unit level. This advanced technology is becoming particularly popular among large quickservice restaurant chains and major food retail chains.

OUTLOOK

Kay forecasts another year of robust growth, with the division realizing annualized benefits from customers gained in 2003 and additional expected new account growth in 2004. Food retail growth is expected to be particularly strong, with more existing grocery accounts expected to participate in the MarketGuard program.