Five suppliers win STIHL award

Please find captions at the end of press release.

Waiblingen, May 17, 2006

Five suppliers win STIHL award

Waiblingen-based ANDREAS STIHL AG & Co. KG honored five suppliers with its "Supplier of the Year 2005" award. The five prizewinning suppliers are among some 300 companies throughout the world from which STIHL currently purchases production materials and components. Dr. Bertram Kandziora, chairman of the executive board and senior vice president, manufacturing and materials, of ANDREAS STIHL AG & Co. KG, presented the certificates that go with the awards at a special ceremony. STIHL is a world leader in chainsaws and also produces a broad range of other outdoor power tools, including brushcutters, trimmers, cut-off machines, blowers and sprayers.

STIHL has presented the "Supplier of the Year” award to a total of 69 suppliers since 1987. Fourteen of those companies have won the award twice, and five three times. In the meantime, the purchasing volume of the STIHL founding company has grown to about €350 million. The prizewinners are small and medium-sized companies. STIHL's supplier structure reflects the company’s policy of international sourcing. In the last seventeen years (1987, 1990–2006), for example, a total of sixteen suppliers from France, Austria, Italy, Ireland, Portugal, Sweden, the United States, Switzerland, Slovenia as well as China and Japan have received the coveted award.

The assessment criteria for the award were: outstanding accomplishments with respect to quality, technology, innovation, service and price-performance ratio. The “Supplier of the Year” award is in recognition of suppliers that have supported STIHL in a special way with their high supply quality, punctual deliveries, flexibility, cooperation and special know-how.

The share of STIHL's total purchasing volume in other countries currently amounts to 51 percent. Apart from Germany, Italy, Japan and the United States, the most important countries for the STIHL Group's sourcing include several eastern European countries and, in particular, Asian countries, and this tendency is growing. This international purchasing structure contributes considerably to securing the company's competitiveness on world markets.

The five 2005 award-winning suppliers are:

Bahco Oberg Ferramentas, Portugal     
(Round and flat files)

Selettra, Italy      
(Flywheels)

Dätwyler, Switzerland      
(Rubber moldings)

Velleuer, Germany     
(Presswork products)

Hess, Germany      
(Office equipment, office supplies, IT systems)

Supplement: Dätwyler also won the award last year and in 1992.

Reasons:
• Excellent management of flood catastrophe; the problems were overcome in an exemplary manner in coordination with STIHL; very good information policy and great commitment on the part of all staff in the face of a difficult situation.

Voucher copy requested

Captions:

Photo 1: The representatives of Bahco Oberg Ferramentas, Ms. Maria João Vieira (Managing Director, in the background) and Ms. Grace Casanova (Sales/Customer Services, in the foreground) proudly accept the certificated presented by Dr. Bertram Kandziora (Chairman of the Board of STIHL AG) and Mr. Klaus Baumbach (Division Manager Purchasing Production Materials).

Photo 2: The group of suppliers of the year and STIHL employees at the presentation of various STIHL chainsaw models.

Photograph: STIHL (Reprint free of charge / voucher copy requested)

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