LITTLE FALLS, NJ, December 18, 2006 – The U.S. market for janitorial and housekeeping cleaning products has achieved steady growth since 2002 and is approaching $3.2 billion at the close of 2006, according to a recently published study by Kline & Company.

“Recent price increases that were precipitated by a spike in raw material costs have helped the market, but the floor-care market in particular has slowed during the past four years, as facilities managers have cut costs by reducing the frequency of waxing and stripping floors,” says Bruce Boynick, senior associate for Kline’s research division.

According to JANITORIAL AND HOUSEKEEPING CLEANING PRODUCTS USA 2006, contract cleaners are the leading users of janitorial and housekeeping cleaning products, which consist of floor and carpet care, surface cleaners and disinfectants, and odor control and hand care products. Contract cleaners are followed by retail hosts, industrial facilities, hospitals, hotels, schools, and nursing homes. Foam soaps and hand sanitizers are among the fast-growing product categories.

Direct sales by manufacturers remain significant, but the products in this market sector are sold primarily through distribution. Janitorial and paper supply houses are the leading distributor type, although alternative channels, including food service, industrial, health care and hotel distributors, and warehouse clubs are important as well.

JohnsonDiversey is the leading supplier of janitorial and housekeeping cleaning products in the U.S. market, followed by Ecolab. Other important suppliers include Spartan, GOJO, Zep, and Procter & Gamble. In all, the 10 leading suppliers account for almost half of the business.

Still, this sector shows only moderate concentration, especially relative to kitchen and laundry chemicals, according to Boynick, who reports that there are at least 100 significant suppliers to the business. Mergers and acquisitions are consolidating the janitorial distribution channel, but it also exhibits some fragmentation, relative to food service distribution.

“The business is large, and the velocity of change is considerable,” says Boynick. “Environmental awareness and product safety certainly are of heightened concern to end users.”

JANITORIAL AND HOUSEKEEPING CLEANING PRODUCTS USA 2006 is the sixth edition of this comprehensive report. It examines emerging issues and trends, sources of information that end users utilize in making purchase decisions, product and packaging trends, critical buying factors, the five-year market outlook, and interest in value-added services, among other topics. The report also addresses private-label sales and usage of dilution and dispensing systems, microfiber mops, and other products and equipment.

For more information on this study, go to www.klinegroup.com/reports/x30.asp or contact Bruce Boynick at +1-773-248-2378. In Europe, contact Erin Durham at +39-0331-976969.

Established in 1959, Kline & Company (www.klinegroup.com) is a management consulting and market research firm serving the specialty chemicals, life sciences, consumer products, and petroleum and energy industries.

LITTLE FALLS, NJ, December 14, 2006 – As the global supply of API Group I lubricant basestocks continues to wane throughout this decade and the next, some lubricant suppliers will also see a key raw material used in the formulation of some of their finished lube products become increasingly scarce.

While a shortfall of bright stocks will lead to a price increase for these materials in the short term, suppliers of heavy synthetic basestocks are preparing to fill the bright stock supply gap, and a newly published study by Kline & Company examines the future of the global market for bright stocks and their proposed substitutes.

“Many Group I refineries have already become obsolete, since developed countries can no longer use Group I basestocks in automotive lubes due to stringent environmental regulations and fuel economy requirements. And because bright stocks are almost entirely produced from conventional Group I refineries, supply will fall more quickly than demand,” says Geeta Agashe, director of the Petroleum & Energy practice for Kline’s research division.

Global supply of bright stocks—so named for their bright orange or reddish orange color—fell by 8% from 1995 to 2005, and as more conventional Group I plants are rationalized, bright stock supply will continue to fall by more than 10% through 2015, according to THE GLOBAL BUSINESS OUTLOOK FOR BRIGHT STOCKS, 2005-2015.

Supply shortfalls may be mitigated somewhat by expansions of existing Group I facilities and improved plant efficiencies in developing regions like Asia, but Agashe notes that none of the new refineries to be built worldwide will be Group I refineries—even in the regions where demand for bright stocks will remain the strongest.

Demand for bright stocks in automotive applications is also expected to decline due to the continuing shift from monograde to multigrade engine oils and to fill-for-life gear oils as developing markets continue to expand and fuel economy standards are raised.

Still, bright stock demand will remain steady in many of the niche applications where they see the most use. Marine engine oils, greases, gear oils, hydraulic oils, and metalworking fluids all have a strong appetite for bright stocks because they are very effective in the formulation from a technical and cost standpoint.

“We expect to see increased demand for bright stocks in developing regions for these applications, although this increase will not be as great as the drop in bright stock use for automotive engine oils,” Agashe says. “The result will be a supply shortfall, which will drive bright stock prices up.”

“Increasing prices for a basestock that has already been under supply pressure will create opportunities for suppliers of substitute products,” says Bill Downey, vice president and head of Kline’s Petroleum & Energy consulting practice. “Polyisobutenes seem to be the most cost-effective and widely available synthetic substitute, although high-viscosity PAO and some naphthenic basestocks will likely take up some of the shortfall as well.”

“Suppliers of these products and finished lube formulators need to understand the intricate details of where the supply and demand balance of bright stocks is heading—especially on a regional basis—in order to maximize their opportunities in a changing market segment,” he adds.

THE GLOBAL BUSINESS OUTLOOK FOR BRIGHT STOCKS, 2005-2015 provides a thorough analysis of supply and demand for lubricant bright stocks on a global basis. It presents a forward-looking assessment of what this market sector will look like through 2015, addressing the volume and rate of Group I rationalization, as well as the potential market for substitute product candidates.

For more information on this study, go to www.klinegroup.com/reports/Y604.asp or contact Geeta Agashe at +1-973-435-3484. In Europe, contact Erin Durham at +39-0331-976969.

To learn more about Kline’s customized consulting capabilities in the petroleum and energy fields, contact Bill Downey at +1-973-435-3388.

Established in 1959, Kline & Company (www.klinegroup.com) is a management consulting and market research firm serving the petroleum and energy, specialty chemicals, life sciences, and consumer products industries.

LITTLE FALLS, NJ, November 16, 2006 – The top ten over-the-counter drug makers in the U.S. have seen their profit margins slip an average of 4% since 2001, effectively erasing the gains made in the previous five-year period, according to a newly released study by Kline & Company.

The average profit margin for the top ten companies is now just below 20%, down from almost 24% five years ago, according to OTC COMPETITOR COST STRUCTURES USA 2006. A key reason for this decline is an industry-wide jump in ad spending, according to Laura Mahecha, healthcare industry manager for Kline’s research division.

“Drug companies are having to spend more to compete with other brands and private-label products, and they are sacrificing profits in the process,” says Mahecha.

Kline’s study examines the profitability and cost structures of ten major OTC companies in the U.S. market. It reports that ad spending went up nearly $600 million from 2004 to 2005, and consumer product giant Procter & Gamble was responsible for a good amount of the increase.

“P&G spent a little over $100 million to advertise Prilosec OTC, which was a giant increase over the prior year’s spending of only $47 million,” Mahecha says. “P&G’s strategy was to build brand awareness and loyalty before the private labels hit the market, and they did it with big spending on this one product.”

Packaging costs for drug companies also rose, averaging nearly 7% of net sales in 2005, up from almost 6% in 2001.

“Hurricane Katrina definitely drove up packaging costs because of its impact on the production of petroleum-based resins and aluminum ingot used to make blister packs,” says Mahecha. “It also had a significant impact on distribution, with the increase in fuel and transportation costs.”

Despite the overall drop in profit margins, Kline’s study indicates that some companies have lost ground simply due to significant investments that were made with an eye toward the future.

“Some of the companies whose performance may not look so great in the short term have actually made strategic moves to position themselves for long-term profitability,” says Susan Babinsky, senior vice president and head of Kline’s consumer products consulting practice. “We’re seeing a significant focus on supporting core brands and major acquisitions. J&J is following this strategy in their purchase of Pfizer’s OTC unit, developing leading brands in core categories as well as shoring up its international presence with some large global OTC brands.”

OTC COMPETITOR COST STRUCTURES USA 2006 analyzes the overall cost structure of the OTC industry, including cost of goods sold and marketing, administration, and R&D expenses. Profiles the top nine branded companies and the largest private-label supplier (Perrigo) include an overview of each company’s OTC business, an assessment of domestic OTC sales by product class, and an analysis of their individual costs, expenses, and profitability. The report provides line-item detail that allows OTC companies to benchmark their business against that of their competitors and make strategic decisions toward increasing profitability.

For more information on this study, go to www.klinegroup.com/reports/Y617.asp or contact Laura Mahecha at +1-973-435-3446. In Europe, contact Erin Durham at +39-0331-976969.

To learn more about Kline’s customized healthcare consulting capabilities for the healthcare field, contact Susan Babinsky at +1-973-435-3365 or susan_babinsky@klinegroup.com.

Established in 1959, Kline & Company (www.klinegroup.com) is an international business consulting and market research firm serving the life sciences, consumer products, specialty chemicals, and energy industries.

LITTLE FALLS, NJ, November 15, 2006 – It is universally recognized that, in the professional pest management business, products rule. And that can be a challenge for suppliers vying for the loyalty of pest management professionals. Even when customer satisfaction is high, companies that haven’t established strong patterns of loyalty among their customers often see them gravitate to a competing product if its performance proves to be as good or better than their current product choice. A newly updated study from Kline & Company examines the factors that affect loyalty and product switching, ranking factors that are most important to pest management professionals (PMPs).

The study, CUSTOMER SATISFACTION AND LOYALTY AMONG U.S. PEST MANAGEMENT PROFESSIONALS 2006, rates the importance of purchase factors and then ranks the leading pesticide suppliers against this list. Its results show that the highest overall satisfaction levels are attributed to those companies like Bayer Environmental Science and BASF that are successfully marketing to the PMP population as a whole. Companies like Dow AgroSciences that follow a more selective customer strategy earned lower ratings from the survey population as a whole but usually see compensating higher ratings from their specific customer base.

“A selective customer strategy appears to drive a short-term gain but may limit long long-term growth. Without stable levels of customer loyalty in a product-dependent market, every time a good new product is introduced, a percentage of customers automatically migrate to it,” says Mancer Cyr, senior associate for Kline’s Specialty Pesticides practice.

Based on interviews with PMPs and distributors, the Kline study focuses on 25 purchase decision factors, their importance, and the competitive ratings given to the four leading manufacturers against these factors. This is the first look manufacturers will have at customer perceptions for the 2006 market year.

Another key element of the Kline report is an emphasis on factor importance that compares what PMPs say about their buying decision with actual purchase data. By combining the two sets of data, manufacturers are able to see which elements are the most critical in the decision-making process and which ones do not have a significant impact on the buying decision.

A new component added to the 2006 edition of the study is a measurement of customer loyalty. Because satisfied customers sometimes switch products and less satisfied customers sometimes elect to stand pat, loyalty becomes the true barometer of customer continuity, while satisfaction data provides some direction on where to focus new initiatives.

“Support- and marketing-related factors still play an important role in PMPs’ purchase decisions, and there has been remarkable consistency in the ranking of these factors, which have remained relatively unchanged since the first edition of the study,” says Cyr.

As generic products infiltrate this market, manufacturers should expect these factors to play a role, along with price, in establishing a loyal customer base, Cyr adds.

For more information on this study, go to www.klinegroup.com/reports/Y567B.asp or contact Dennis Fugate at +1-410-418-8934. In Europe, contact Erin Durham at +39-0331-976969.

For information on the customized consulting capabilities of Kline’s Specialty Pesticides Practice contact Mancer Cyr at +1-856-764-3536.

Established in 1959, Kline & Company (www.klinegroup.com) is a management consulting and market research firm serving clients worldwide in the life sciences, chemicals and materials, consumer products, and energy sectors.

LITTLE FALLS, NJ, November 1, 2006 – Kline & Company, Inc., a leading international management consulting and market research firm, today announced it has expanded the staff in its India office and its U.S. headquarters with several new hires.

“We’ve assembled a team of experienced professionals in our India office to help us deliver the level of service that our global customer base has come to expect from Kline,” says Eric Vogelsberg, senior vice president of Kline’s Global Consulting division. “We’ve found consultants that have an intimate knowledge of regional and global markets for many of the industries we serve.”

Three new senior-level consultants have been hired in Kline’s India office. Hemant Sharma joins Kline’s Manufacturing Economics practice. Sharma previously worked with Rohm and Haas as a production process leader responsible for production, manpower, and materials planning and scheduling.

Preeti Behl will work primarily on consumer-products-related projects with the Kline Research and Kline Global Consulting divisions. Prior to joining Kline, she completed several projects in the consumer products, pharmaceuticals, and biotech fields for RocSearch, a business research firm based in New Delhi.

Rubal Bajaj brings experience in the consumer goods, telecommunications, IT, and oil and gas industries to Kline’s Consumer Products practice. He joins Kline from Evalueserve, an international business research firm, where he advanced to the level of project leader.

Kline’s India office has also added three other consultants. Manotosh Mondal will work primarily with the Chemicals and Materials practice for Kline Research. He joins Kline from Ducker Worldwide, where he served as a market analyst.

Hari Desai joins Kline from Frost & Sullivan, where he authored syndicated research studies focusing on product and market trends, business development strategies, and competitor and end-use analyses. He will focus on projects for the Consumer Products practice for Kline Research.

Upshi Dhar has joined Kline’s Petroleum and Energy practice. Prior to accepting a position at Kline, she worked as a sales executive at Bharat Shell, where she developed customized product solutions for clients, handling OEM relationships, sales forecasting, and planning.

Saurabh Gupta has also been hired by Kline India as a production assistant for Kline Research and Kline Global Consulting projects. Nikhil Sahay joins the IT group as a programmer/analyst. Both will provide support for Kline’s locations across the globe.

In addition to the new hires in India, Kline has expanded the staff in its U.S. headquarters. Eric Chester has joined Kline Global Consulting as a senior consultant. He previously worked with Booz Allen Hamilton and brings expertise in analyzing several industries, including the automotive and pharmaceutical markets.

“India is clearly a growth market for many of the industries that we provide our services to, and having experienced resources there is key to our long-term business plans in the region,” says Jonathan Goldhill, senior vice president of Kline Management Consulting. “The depth of skills and knowledge these new hires bring to Kline will definitely help us to help our clients execute their global business strategies.”

Established in 1959, Kline & Company (www.klinegroup.com) is a global management consulting and market research firm serving the specialty chemicals, life sciences, consumer products, and energy industries. The firm is headquartered in Little Falls, NJ, and has offices in Brussels, Shanghai, New Delhi, and Tokyo, as well as affiliates across the globe.

LITTLE FALLS, NJ, October 13, 2006 – As consumer demand continues to grow for personal care products that help stave off the ravages of time, product innovations are supporting double-digit growth for the active ingredients that fulfill claims of anti-aging effects, particularly in facial treatments. A newly proposed study from Kline & Company will explore a market that continues to develop, drawing new competitors into a complex and rapidly expanding marketplace.

“Consumers are coming to expect anti-aging benefits from even mass-market products, and this demand is creating a pull effect that is ultimately driving the market for new raw materials,” says Gillian Morris, industry manager of the Chemicals and Materials practice for Kline’s research division.

In order to make claims that their products can actually diminish signs of aging, marketers of personal care products are constantly looking for new combinations of specialty active ingredients––compounds that provide a demonstrable therapeutic effect on the skin or hair. These compounds include peptides; substantiated, branded botanical actives; and stabilized forms of vitamin C.

Thanks to these types of active ingredients and others, skin care products can now claim to repair the signs of aging and provide UV protection to retard further environmental damage. Hair care has evolved from simple cleansing, styling, and coloring products to more naturally derived products that are color- or texture-specific and extend color life. And even oral care products are using an anti-aging positioning to tout whitening benefits.

Delivery systems for specialty actives are also becoming increasingly sophisticated in order to impart the benefits of more powerful ingredients with controlled release and reduced irritancy.

The consumer survey is the first in a series of two newly proposed studies; the second will examine the healthcare professionals’ perceptions of nonprescription drugs.

“While consumers are starting to view anti-aging benefits as less of a specialty category and more of a basic product feature, they’re still willing to pay more for products that incorporate these features,” says Morris.

According to preliminary research for Kline’s upcoming study, SPECIALTY ACTIVES AND ACTIVE DELIVERY SYSTEMS FOR PERSONAL CARE: U.S. AND WESTERN EUROPE 2007, the dynamic global market for these materials reached $400 million in 2006.

Innovation is prevalent at all levels of the personal care market, from professional products like Kline Becker’s StriVectin-SD and prestige brands such as Estée Lauder Perfectionist Power to mass-market brands such as Procter & Gamble’s Olay Regenerist. The nutricosmetic, cosmeceutical, and nutraceutical market segments are also introducing innovations that are driving the demand for new raw materials.

Growth rates for both the finished products and the specialty raw materials that are used to create them are not expected to slow in the short term as companies continue to enter the market both organically and though acquisitions.

“A lot of companies are looking at entering this small but fast-growing market segment in part because pharmaceutical technology can be rapidly adapted to this market, and companies are able to more immediately recoup their research costs,” says Eric Vogelsberg, senior vice president and head of Kline’s Chemicals & Materials consulting practice. “The industry is able to take advantage of demographic trends, there are relatively low barriers to entry, and attractive profit margins.”

In order to investigate trends and opportunities among these specialty firms, Kline & Company is planning to undertake a new market research study, titled SPECIALTY ACTIVES AND ACTIVE DELIVERY SYSTEMS FOR PERSONAL CARE: U.S. AND WESTERN EUROPE 2007. The study will estimate the current and forecast size of the U.S. and Western European markets for specialty actives and active delivery systems, predict demand growth drivers, and evaluate opportunities for strategic alliances, technology licensing, and acquisitions.

For more information on this study contact Gillian Morris at +1-973-435-3432. In Europe, contact Erin Durham at +39-0331-976969.

To learn more about Kline’s customized consulting capabilities for the specialty and fine chemicals industry, contact Eric Vogelsberg at +1-973-435-3466.

Established in 1959, Kline & Company (www.klinegroup.com) is an international management consulting and market research firm serving clients worldwide in the specialty chemicals, life sciences, consumer products, and energy industries.

LITTLE FALLS, NJ, October 6, 2006 – The U.S. consumer market for pesticides and fertilizers has grown by approximately 5% a year over the past two years. A portion of this growth is attributable to rising petroleum costs that have been passed to consumers, resulting in higher fertilizer prices. But a recently published study by Kline & Company reveals that insect repellent sales have supported this consistent growth, even though the buzz surrounding the West Nile virus seems to have let up, at least temporarily.

Insect repellents remain the leading growth category in the consumer market segment, according to the 2006 edition of CONSUMER MARKETS FOR PESTICIDES & FERTILIZERS USA, even with the decrease in publicity about the dangers of West Nile virus. Much of the growth in this category came from products such as citronella candles and coils, rather than sprays or lotions.

“With less emphasis on West Nile, much of the sales growth is coming more from outdoor treatments rather than on-skin applications, as in the past,” says Dennis Fugate, industry manager for the Specialty Pesticides practice of Kline’s research division.

At the same time, Fugate notes that higher costs passed through to the consumer account for much of the growth in fertilizers segment, reported by Kline’s study at nearly 15% from 2003 to 2005.

The top three companies in the fertilizer market together hold more than 80% of market share with Scotts and Spectrum Brands dominating. Pet insecticides remain the leading individual product category among those examined by Kline, due to continued growth in flea and tick products sold by veterinarians.

Kline’s study shows that growth in the outdoor lawn and garden segment is primarily in the ready-to-use categories such as hose-end applications of insecticide and herbicide, which have taken some market share away from liquid concentrates and granules.

“Ready-to-use products have gained in popularity, partly because their ease of use gives homeowners more confidence in using them; there’s no measuring of chemicals involved and no rinsate disposal,” says Mancer Cyr, senior associate in Kline’s Specialty Pesticides consulting practice.

CONSUMER MARKETS FOR PESTICIDES & FERTILIZERS USA 2006 is the 15th edition of Kline & Company’s continuing analysis of the consumer segment of the pesticides and fertilizer industries. It examines product and company developments and provides detailed estimates on market size and competitor shares by product category. The study also covers market trends and opportunities and discusses consumer buying patterns.

For more information on this study, go to www.klinegroup.com/reports/y138k.asp or contact Dennis Fugate at +1-410-418-8934. In Europe, contact Erin Durham at +39-0331-976969.

For information on the customized consulting capabilities of Kline’s Specialty Pesticides practice, contact Mancer Cyr at +1-856-764-3536.

Established in 1959, Kline & Company (www.klinegroup.com) is a management consulting and market research firm serving clients worldwide in the life sciences, chemicals and materials, consumer products, and energy sectors.

LITTLE FALLS, NJ, September 14, 2006 – Spread by the wind, animals, and human activity, highly mobile populations of non-native plant species continue their advance into areas where they are not kept in check by natural predators. Once established, invasive plants present unique control challenges, requiring specialty applications to combat a specific weed on a regional basis.

The increasing severity of the invasive weed problem in the United States represents significant opportunities for pesticide manufacturers, and a newly proposed study by Kline & Company, THE U.S. MARKET FOR INVASIVE WEED CONTROL PRODUCTS 2007, will explore the nature of invasive species control and attempt to quantify the current and forecast growth of this market sector.

“Invasive plants present a rare situation where a number of different organizations––from environmental advocacy groups to recreational interests to governmental agencies––are united on the importance of this issue. It’s a growing concern in nearly every state,” says Dennis Fugate, manager of the Specialty Pesticides practice for Kline’s research division. “Even conservancy organizations are recognizing the need for chemical control in certain cases to stop the spread of invasive weeds.

Invasive weeds are estimated to affect over 100 million acres in the United States, doing $20 billion in damage annually to native vegetation, grazing areas, and animal habitat, according to the U.S Geological Survey. And they are spreading at a rate of 4,600 acres per day, or 1.7 million acres annually, according to the USDA’s Agricultural Research Service (ARS).

While invasive species in general represent a widespread problem, regional differences are extremely important. A species that is a minor nuisance in one area may be a big problem in another. Awareness of the problem is growing, and 45 states have designated certain plants as noxious and have programs available to manage them.

“Not many people other than those directly affected are talking about invasives as a market opportunity yet, but the rate of spread and growing concern about noxious weeds indicates this is already an important market sector for pesticides,” says Mancer Cyr, senior associate for Kline’s Specialty Pesticides consulting practice. “Government agencies and large private landholders need to know how best to combat the weed problems they have now and prepare to defend against the species that are coming over the horizon.”

THE U.S. MARKET FOR INVASIVE WEED CONTROL PRODUCTS 2007 will provide an in-depth look at the current market for chemical control of invasive species as well as an outlook for this sector in the future. It will provide an overview of the most important specific invasive weeds, their rate of migration, control options currently being used, responsibility for control and funding in place for control on a state and/or regional level.

This new study will serve as a companion study to the recently published study titled THE U.S. INDUSTRIAL VEGETATION MANAGEMENT MARKET FOR PESTICIDES AND FERTILIZERS 2006. Kline’s sixteenth edition of this study provides a comprehensive look at pesticide and fertilizer use in forestry, electric utilities, roadways, railroads, rangeland and pastureland, aquatic pesticides, and airports.

For more information on these studies, go to www.klinegroup.com/sslife.htm or contact Dennis Fugate at +1-410-418-8934. In Europe, contact Erin Durham at +39-0331-976969.

Established in 1959, Kline & Company (www.klinegroup.com) is a management consulting and market research firm serving clients worldwide in the life sciences, chemicals and materials, consumer products, and energy sectors.