The Freudenberg Group

Growth expectations for all world regions in 2007 are more subdued than those for the year under review. Slightly weaker growth momentum is forecast for the USA. Asia will remain the powerhouse of the global economy. Noticeable growth is expected in China and India and positive development is expected for the Japanese economy, by far the largest in Asia.

High raw material prices will continue to exert a negative effect. The oil price will in all probability remain at a high level and the financial effects of political measures relating to climate protection are not yet foreseeable. Against this backdrop, Freudenberg is cautiously optimistic for the 2007 financial year. The Group will continue with its improvement measures and intensify its efforts in the fields of innovation, profitable growth and supply chain enhancement in particular.

Developments during the first three months of 2007 confirm this restrained optimism.

Weinheim, March 27, 2007

The Management Board

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