Villeroy & Boch, Eczacibasi Negotiations Conclude

Mettlach, Germany, March 26, 2007--Villeroy & Boch’s negotiations with the Eczacibasi Group, which were announced in December 2006, have concluded. The Turkish Group will acquire 51% of V & B Fliesen GmbH. Villeroy & Boch will maintain a 49% share of V & B Fliesen GmbH. The property and buildings at the two factories will remain in the possession of Villeroy & Boch AG. In addition the almost 1,000 jobs at V & B Fliesen GmbH are to be maintained.

V & B Fliesen GmbH, located at the factories in Merzig/Saar, Germany, and La Ferté Gaucher, France, achieved sales of Euro 149 million in 2006 with more than 10 million m2 of wall and Floor tiles. A licensing agreement ensures the future existence of the "House of Villeroy & Boch" integral product range.

The production plants in Germany and France will be continued. The company's head office and the administration of V & B Fliesen GmbH will remain in Merzig. Peter von der Lippe, who is currently director of tile activities, will also continue as director of V & B Fliesen GmbH in future. Closing is expected on June 30th 2007.

Eczacibasi is a highly-competitive industrial group achieving overall sales of US$ 2.8 billion. The new association formed by the Eczacibasi tile division and V & B Fliesen GmbH will have a total tile output of 35 million m². This will clearly improve competitiveness in the global markets.

Initiated in 1998, restructuring of Villeroy & Boch AG led to a strengthening and modernisation of the two Divisions Bathroom and Wellness, and Tableware. The company will continue to promote development and globalisation of these two profitable sectors to ensure continuation of the positive growth trend.