PROFESSIONAL PRODUCTS

Professional Products posted good sales growth during 2003 in both of its core markets. Its results were bolstered by a large corporate account win in the janitorial sector and better penetration into the hospital acute care segment.

HIGHLIGHTS

> Delivered growth in the retail and building service contractor segments both by leveraging its distributor network and by focusing increased field and support resources on national and regional corporate accounts.

> Building on Ecolab's legendary solids platform, the division launched the Asepti-Solids product line into the hospital acute care segment, where it is utilized for central sterile instrument cleaning. It has experienced terrific success in the market.

> Introduced Endure 320 Advanced Care, a waterless, antimicrobial healthcare hand rinse with a new lotion formula that provides high levels of mildness and efficacy. The product was immediately called into action on the front lines of the SARS outbreak.

OUTLOOK

Professional Products anticipates another year of strong sales growth in 2004, although the exit from a low-margin janitorial equipment distribution business will likely offset reported sales progress. Earnings, however, should show good gains as the division's product mix improves. The healthcare business, which will operate as a separate division beginning in 2004, expects the Asepti-Solids program's good growth trends to continue.