Sika grows in emerging markets - Revenue losses in industrial countries

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In the first quarter of business year 2009 Sika continued to grow in
a number of emerging markets. The comparatively hard winter and the
effects of the economic crisis led however to an overall decline in
sales.

The sales decline in the first quarter amounted to -6.7% in local
currencies. Included therein is an acquisition effect of 2.7%.
Exchange rate fluctuations influenced negatively with -6.0%, so that
sales in Swiss francs in comparison with the first quarter of the
previous year declined by -12.7% from CHF 1017 million to CHF 888
million.

The decline in sales had two causes. On one hand, winter weather
during the months of January, February and also in part in March
brought a halt to much construction activity in Northern Europe and
in North America. In the previous year, in contrast, the weather
represented no hindrance on building sites. On the other hand the
worldwide economic crisis negatively influenced the construction
industry in an increasing number of countries, leading to a decrease
in new business.

Business divisions and regions
Sales in local currencies in the Construction Division dropped in the
first quarter by -2.5%, including an acquisition effect of 3.5%. The
currency effect amounted to -6.5%, leading to a sales decline in
Swiss francs of -9.0%, or CHF 706 million. Vehicle production
remained at the low level of year-end 2008. The Industry Division
exhibited as a result a decrease in sales in local currencies of
-20.0%. Coupled with exchange rate fluctuations of -4.5%, sales fell
overall by -24.5% in Swiss francs to CHF 182 million.

The Regions Latin America and IMEA (India, Middle East, Africa)
achieved growth in local currencies of 13.4% and 8.3% respectively.
Other Regions showed weakening net sales. The local Sika companies
affected by losses in sales reacted immediately, taking initial
measures to reduce costs. In Germany, Italy and in Switzerland,
reduced working hours were introduced. Comprehensively for all
countries at the moment, the efficiency of various production
networks is being reviewed in order to possibly optimize them.

Based on assessment of the current situation, Sika will continue
undiminished in its efforts regarding cost and cash management.
Special attention is thereby given to exploit opportunities which
emerge for Sika during the current crisis. Solid financing allows the
company to safeguard its good market position or to improve it
further in order to be well equipped for the upsurge following the
crisis.

Outlook
In March, construction activity in many countries increased again
significantly, so that Group sales lay above those of the same month
in the previous year. This recovery can in essence be ascribed to
compensation of the weather-related standstill period in January and
February, and also to the greater number of working days. Easter fell
this year in April. The currency situation also improved slightly in
March. Forecasts of sales and profit for the full year are as before
not possible.

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Sika AG
Zugerstrasse 50
CH-6341 Baar, Switzerland
www.sika.com

Contact: Rainer Weihofen,
Corporate Communications & Investor Relations
Tel.: +41 58 436 68 00
Fax: +41 58 436 68 50
weihofen.rainer@ch.sika.com

Sika AG - a corporate profile
Sika AG, located in Baar, Switzerland, is a globally active company
supplying the specialty chemicals markets. It is a leader in
processing materials used in sealing, bonding, damping, reinforcing
and protecting load-bearing structures in construction (buildings and
infrastructure construction) and in industry (vehicle, building
component and equipment production).
Sika's product lines feature high-quality concrete admixtures,
specialty mortars, sealants and adhesives, damping and reinforcing
materials, structural strengthening systems, industrial flooring and
membranes. Subsidiaries in more than 70 countries worldwide and
approximately 12,900 employees link customers directly to Sika and
guarantee the success of all of its business relationships. With this
business structure Sika generates annual sales of CHF 4.6 billion.
Visit our website at www.sika.com.

The media release can be downloaded from the following link:

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Sika AG
Zugerstrasse 50 Baar

WKN: 858573; ISIN: CH0000587979;
Index: SMCI, SPI, SPIEX, SMIEXP, SMIM;
Listed: Main Market in SIX Swiss Exchange;
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