P&G Announces Alternative to Wella Dividend Proposal

Procter & Gamble Holding GmbH & Co Operations oHG (P&G), a wholly owned subsidiary of The Procter & Gamble Company, will propose a reduction in the Wella dividend to euro 0.06 for preference shares and euro 0.04 for ordinary shares at the Wella Annual General Meeting (AGM).

As Wella’s majority shareholder, P&G executives believe the long-term growth and health of the Wella business is best served by retaining funds within the company to provide investment flexibility for future growth in new and existing markets. The action is consistent with P&G’s business plans as outlined in the Wella AG Offer Document filed under the German Takeover Act.

At current ownership levels, this proposal will reduce the 2003 dividend payment to P&G by more than euro 25 million. The proposal is subject to approval by shareholders at the Wella AGM.

P&G acquired most of Wella in a 5.6 billion euro deal last year. Shareholders representing around 20% of the capital did not accept P&G’s offer and have been trying to reach a sweetener in the courts.