Change of Group President in Grundfos

Since Jens Jørgen Madsen took over the position as Group President, Grundfos has – with its 14,000 employees – increased the turnover by around 50% and at the same time doubled the profit. The target for 2007 which Jens Jørgen Madsen and the Board of Directors set in 2003 is expected to be reached already in 2006.

The co-operation between the Board and Jens Jørgen Madsen has, however, been influenced by differing understandings of the working method and tasks of Group Management and the Board, just as there have been differing understandings of specific business questions. This has lead to the decision that Jens Jørgen Madsen will be resigning from the position as Group President three years earlier than originally planned; and this will make room for a successor who, together with the rest of Group Management and the Board, will be setting the course for the next ten years’ development of the Grundfos Group.

The Board of Directors would like to express high recognition and much thank to Jens Jørgen Madsen for his contribution to Grundfos for more than three decades. Today Grundfos is better prepared than ever to meet the future challenges.

Vice Group President Carsten Bjerg has from the Board been appointed acting Group President until a decision is made concerning the new Group President. The other members of Group Management are Group Executive Vice Presidents Søren Sørensen and Carlo Prola.

Jens Jørgen Madsen and the Board have agreed not to add any further comments in this matter than this press announcement.