FLORAHOLLAND (press release January 2, 2006) - At December 29, 2005 the five flower auctions of FloraHolland have achieved sales exceeding the EUR two billion mark. The export value of all flowers and plants bought and sold via The Netherlands exceeds the EUR 5 billion mark for the first time this year, with an increase of four percent. Sales achieved by suppliers via flower auction FloraHolland also grew considerably, namely by five percent, with pre-tax profits totalling EUR 7.5-8 million. It was a year we can look back on with satisfaction. For 2006, FloraHolland is counting on a pre-tax profit of EUR 5 million with sales that are again expected to grow, by two percent.

This year's sales rise of five percent is due especially to better prices. Unfortunately these improved prices don't have the same effect for all companies. In spite of the improving economy, there still are companies that drop out. Margins in this sector are under pressure as a result of rising energy costs and growing competition within and without the European Union, among other things.

2006
FloraHolland's financial position has further improved because of the good results in recent years. As a result, we have achieved the desired financial ratios and the aimed for financial result of the cooperative can be reduced by EUR 3 million to EUR 5 million. The productivity improvement policy that we already instigated from 2003 leads to considerable cost savings amounting to the equivalent of EUR 3 million. The resulting running surplus of EUR 6 million will be used in 2006 to improve our market position, to reduce tariffs charged to suppliers and, in other cases, refrain from increasing charges such as lot and trolley levies. However, the supplier contribution does go up to EUR 2000 (EUR 500 euro plus one percent of sales to EUR 150,000).

Services
With its services, FloraHolland is increasingly meeting the needs of its customers. One important development in this area is e-business. In 2006, FloraHolland's Naaldwijk auction will demand that all supplier information is provided via the "Electronische Aanvoersbrief" - EAB, or Electronic Supply Information Form. Furthermore, the FlorEcom electronic ordering system, among other things, will be expanded by the introduction of a new application, and usage of the system will be encouraged by higher discounts on the lot levies.

General director Jacques Teelen says market expectations for 2006 are positive. "The sales for 2006 are estimated to be € 2.020 million," he says.
In the coming year, FloraHolland will again spend big on expanding its market position. Total expenditure in 2006 will be EUR 66 million.
The good results in the current year have further strengthened FloraHolland's financial position. Mr Teelen: "We accept reduced profits yet still continue to invest." Supplier charges are also being adjusted. The ones that stand out most in this policy are: reduced basic commission at the clocks from 2.9 to 2.6 percent, the introduction of a separate basic provision of 1.6 percent in the intermediary segment, whereby an extra 0.5 percent has to be paid for the Intermediary Office service. Guest supplier surcharges are also abolished for