Nalco announces price increases, freight surcharges to the paper industry

NAPERVILLE, IL, Sept. 20, 2005 (BUSINESS WIRE) -- Nalco Holding Co. announced a price increase yesterday for specialty chemicals and programs sold to all Paper Services Division clients. The price increase will be 10% for most products and programs, with more significant adjustments where necessary. The price increase is in addition to the price adjustments announced earlier this year, and is driven by sustained significant increases in cost of raw materials, energy and freight. These costs have been further accelerated by the broad impact of Hurricane Katrina on cost and availability of raw materials and road transportation.

In addition to the above product- or program-based price increases, Nalco Company will apply a freight surcharge equivalent to two (2) US cents per pound of product delivered. This surcharge applies to both contract and non-contract customers, and will be adjusted or removed subject to market conditions affecting fuel costs and freight rates.

Both the price increase and the freight surcharges will become effective October 1, 2005.

Nalco's Paper Services Account Managers will follow up with their appropriate clients.

Nalco (www.nalco.com) is the leading provider of integrated water treatment and process improvement services, chemicals and equipment programs for industrial and institutional applications. The company currently serves more than 60,000 customer locations representing a broad range of end markets. It has established a global presence with over 10,000 employees operating in 130 countries supported by a comprehensive network of manufacturing facilities, sales offices and research centers. In 2004, Nalco achieved sales of more than $3 billion.

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In other company news: Nalco Discusses Katrina and Europe Impacts; Additional Pricing and Surcharges Announced.

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