Gamma Holding relocates activities to Czech Republic

Gamma Holding intends to relocate part of the activities of its German subsidiary Schoedel to the Czech Republic. Schoedel's activities mainly comprise the knitting and weaving of mattress fabrics. The company, which employs approximately 200 people, is part of the Sleep Care Fabrics business unit.

Schoedel's turnover and net result have been under pressure for some time because of continually increasing competition from Eastern Europe and Asia. In order to improve the cost position, it is planned to relocate the knitting activities to a new production location to be set up in the Czech Republic. As a result of this structural adjustment approximately 100 jobs will be lost in Münchberg, Germany. The weaving activities, mainly for orthopaedic fabrics, will remain at this site. The social partners will be consulted about this plan.

The relocation of Schoedel's knitting activities is in line with Sleep Care Fabrics' strategy, which is now being accelerated, of increasing production capacity in countries such as Mexico and moving a significant proportion of the production capacity for exports from Western Europe to European countries to low(er) wage countries (the Czech Republic and Turkey).

Gamma Holding will publish its annual figures for 2005, including explanatory notes, on 24 February next, before the opening of the stock exchange.

Executive Board, Gamma Holding N.V.

Helmond, The Netherlands, 20 February 2006

Profile

Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. In 36 countries, approximately 7,500 employees are active. Its headquarters are located in Helmond (The Netherlands) and its shares are listed on Euronext Amsterdam.

Gamma Holding comprises two sectors, Gamma Technologies and Gamma Comfort & Style. These are made up of seven business units specialising in belting, filtration, anti-ballistic materials, billboards, tent cloth, roofing, sailcloth, mattress ticking, car fabrics and exotic fabrics. With these products the company is a leading global player in its selected niche markets.