The House of Scandinavian Finishing Materials

www.terraco.com

SWEDEN • IRELAND • RUSSIA • TURKEY • JORDAN • EGYPT • UAE • PAKISTAN • THAILAND • VIETNAM • CHINA • KOREA

Message from the Chairman

Terraco remains the most sensible

environmental choice.

Following on from a record 2007 I, along with the Terraco team, am excited to welcome what promises to be a challenging and rewarding 2008. During the course of the year we will aggressively target new emerging and developing markets and will invest substantial resources to strengthen and increase our technical expertise in key product segments. This will ensure that we can continue to offer our customers the best quality at an affordable price.

In 2007 we successfully concluded several key initiatives, amongst others, finalizing moves to proprietary production facilities in all countries, successfully entering new segments in our more mature markets and starting an additional factory in Northern Vietnam.

Continued construction booms in many of our key markets will continue to boost our significant growth rate and will help ensure that we meet our aggressive 2008 target. Coupled with this, increased expenditure on R&D and our continual efforts to expand our product range and improve our customer service, will

ensure that Terraco remains ideally positioned to gain additional market share in our targeted markets. In line with the Group's mid-term expansion plans we aim to

have an additional 3 plants operational by end 2008.

The ultra-environmentally friendly EcoLife™ range has been introduced in all relevant markets. The emergence of stricter environmental legislation - in particular for interior decoration products - in many of the developing markets in which we operate will continue to fuel the growth and importance of this product range. It is with pride that I say that Terraco remains the most sensible environmental choice.

In recent years many fast developing countries are seeing the need for and are embracing the concept of industrial standards. It is continually

gratifying to see Terraco regularly being invited to propose parameters for such quality standards in many of the countries where we operate. It is our firm belief that proper industrial standards benefit everyone – architects, contractors, clients, property owners, future tenants as well

as builders and material producers – helping to ensure that customers are getting the right products and preventing the undermining of quality by actors propagating sub-standard products. Terraco will always offer quality, durability and unbeatable long-term value.

As usual, I would like to take this opportunity to thank all staff and employees for their continued efforts on behalf of the company - together we will shape the future of the Terraco Group.

Sincerely,Göran Widström

Terraco products are made to last – most are designed

to outlive the buildings they are applied on.

Company Profile

The Terraco Group, founded in 1980, has grown to become the leading producer of environmentally friendly finishing materials and the supplier of choice for discerning, quality conscious customers.

Targeting urbanising, high growth areas, Terraco has a proven track-record of providing competitive, eco-friendly, high-quality products - specifically tailored to meet and surpass the requirements and demands of global and local customers – be they in major population centres, the Siberian hinterlands, Vietnamese rainforests or the sands of the Arabian Peninsula.

Terraco’s organic growth is fuelled by an increased global demand for durable, superior quality products. Most consultants, architects, applicators and property owners have become aware of the long-term savings that an initial investment in Terraco products can give.

The group’s dedicated R&D staff – coordinated by the Technical Centre in Ireland - constantly strive to further develop and expand the product portfolio - currently consisting of over 550 high-quality products.

What truly sets Terraco apart from other quality producers is the group’s continuous commitment to ecologically friendly products and environmental preservation. Terraco’s products are all water-based; produced in “green” environmentally friendly production facilities and are non-hazardous to the user.

Additionally, Terraco has taken the initiative to combine the most stringent environmental standards dealing with interior decoration products in Japan, the US and the EU and has developed the “Ecolife” range which complies with them all.

Currently comprising 32 companies and 17 factories with over 800 employees world-wide and a combined production capacity of over 650,000 tons per annum – Terraco serves the major construction areas of the world.

Terraco stands for Quality – Naturally.

Terraco World Wide

32 companies, 17 factories and 800 employees

world-wide with an annual production capacity

of over 650,000 tones.

Khabarovsk, Russia

Korea (4 Factories)

Pakistan

Shanghai, China

Ho Chi Minh City, Vietnam

Guangdong, China

Thailand

UAE

Egypt

Jordan

Sweden

IrelandMoscow, Russia

Turkey

Hanoi, Vietnam

Product Portfolio

550 high quality environmentally-friendly products that

provide outstanding long-term value.

The Terraco range consists of over 550 high quality products.

The common denominator for all these products is that they are

water-based, environmentally-friendly and provide outstanding

long-term value.

Luxury Scandinavian Interior and Exterior Coatings

A comprehensive range of quality interior and exterior coatings;

including paints, decorative effects and textured coatings. All

are formulated to have superior weathering and ageing

characteristics – while providing an unrivalled aesthetic finish.

Tiling Products

A full range of high quality tile adhesives, glues and grouts

suitable for the most demanding environments.

Levellers and Fillers

Includes the high quality Sprayplaster™ range as well as the

market leading Handycoat® products. Easy to use, time saving

products with guaranteed performance, unbeatable long term

value and exceptional ageing characteristics.

Waterproofing Systems

Durable, long lasting 1 and 2 component waterproofing

products which can be used with confidence in a variety of

applications ranging from swimming pools and potable water

tanks to waterproofing of roofs, balconies, bathrooms and

kitchens.

EIF Systems

Includes the tried and tested ecoTHERM™ exterior insulation

system suitable for both hot and cold climates.

Acoustic Systems

The unique Ambient™ system provides superior acoustic

characteristics to demanding projects such as theatres and

opera halls as well as residential and commercial applications -

giving customers the desired acoustic properties at the best

possible economy.

Flooring Systems

Durable, high quality products for use in car parks, warehouses

and other challenging environments.

Repair Mortars and Screeds

Two ranges of professional specialised products for many

different repair and floor screeding works.

Adhesives

A range of high quality, water-based adhesives for use in a

variety of industries; including label and tape manufacturing,

textiles, packaging and construction.

Additionally, Terraco produces a full range of additives, primers

and other accessory products.

Research and Development

Terraco ensures that products meet all relevant local and

international standards. Products are certified after the most

rigorous tests by international testing institutes.

The Terraco Group is committed to an extensive Research & Development program. The

development work is spearheaded by the Terraco Technical Centre in Ireland. The Centre

coordinates the efforts of all technical personnel within the Group, including the

activities of the Regional Technical Centres in the Middle East, South East Asia and the

Far East.

The Technical Centre heads up the Group’s in-house product development program and

is responsible for making sure that Terraco products remain at the forefront of their field

with regard to innovation, quality and environmental standards. Terraco cooperates

with several technology partners and suppliers, conducting joint research projects in

common interest areas.

Terraco ensures that the products meet all relevant local and international standards.

The products are certified after the most rigorous tests by international testing

institutes.

The Technical Centre implements strictly monitored and enforced quality control

procedures at all production facilities ensuring homogenous, high quality products.

All Terraco companies follow QC procedures as outlined by ISO 9000. The 12 factories in

Turkey, Korea, Jordan, Egypt, UAE, Vietnam and China are all ISO 9001 certified.

Additionally, Terraco Korea has been awarded the ISO 14001 Environmental

Management Certificate.

Environment

Terraco’s products are all water-based; produced in

“green”, environmentally friendly production facilities

and are non-hazardous to the user.

Terraco’s products have, since the company’s founding, always been produced using

environmentally friendly components and production methods. In line with this all the

company’s products are water-based – the company has never produced solvent-based

materials.

Terraco has constantly pushed the boundaries in environmentally friendly finishing

materials - spearheading new technology and production techniques. The company

takes pride in its ecological image and always aims to be the first to make new advances

in high performance, ecological products available to the end user.

Amongst other recent developments and environmental initiatives, Terraco has

introduced the EcoLife™ range. This line of products contains virtually no Volatile

Organic Compounds (VOCs) or formaldehyde. The EcoLife™ range fully complies with

the most stringent standards for interior decoration products in the US, EU and Japan.

1. Housing Estate, Pokrovsky Bereg, Moscow 2. Shenzhen Silicone Village, China1. Housing Estate, Pokrovsky Bereg, Moscow 2. Shenzhen Silicone Village, China

3. Centum Park, Busan, Korea 4. Dubai Marina, Dubai 5. Emirates Palace, Abu Dhabi3. Centum Park, Busan, Korea 4. Dubai Marina, Dubai 5. Emirates Palace, Abu Dhabi

6. Jumeirah Beach Hotel, Dubai 6. Jumeirah Beach Hotel, Dubai

1. Housing Estate, Pokrovsky Bereg, Moscow 2. Shenzhen Silicone Village, China

3. Centum Park, Busan, Korea 4. Dubai Marina, Dubai 5. Emirates Palace, Abu Dhabi

6. Jumeirah Beach Hotel, Dubai

1 2 3

4 5 6

Projects

1 2 3

4 5 6

Terraco products are used in more than 55 countries world-wide

and perform day after day, year after year.

With more than a quarter of a billion square metres of product

applied each year – Terraco continues to serve the major

construction areas of the world.

Terraco products are used all over the world and perform day after day, year after year.