WATER CARE SERVICES

Water Care Services showed good improvement in 2003, benefiting from strong, double-digit sales growth in the hospitality and cruise line industries.

HIGHLIGHTS

> Initiated a segment-specific sales-and-service approach through which its field specialists are dedicated to serving a particular industry, whether it is hospitality, food and beverage, healthcare, or other targeted industries.

> Leveraged cross-selling opportunities with other Ecolab divisions to secure a number of key account gains, particularly in the hospitality, food and beverage, healthcare and commercial laundry industries.

> Signed several significant contracts with state-operated and privately run prisons by focusing increased attention on valuable prospects within the governmental sales arena.

> Formally launched Blackwater 100 to the cruise industry. This product helps prevent costly blockages in onboard plumbing lines that run between guest rooms and ships' waste treatment facilities.

OUTLOOK

On the strength of further gains in hospitality and healthcare, as well as good gains in the food and beverage industry, Water Care Services expects to accelerate its growth performance in 2004. The division will continue to pursue opportunities to build its business within Ecolab's existing customer base, as well as drive new account growth through aggressive sales-and-service efforts.