NLC Nalco Holding Company Common Stock

William Blair & Company Initiates Coverage of Nalco Holding Company With Market Perform Rating CHICAGO, Dec. 23 /PRNewswire/ -- William Blair & Company today announced that it initiated research coverage of Nalco Holding Company (NYSE:NLC)($20.01), a leading provider of water treatment and process- improvement chemicals and services, with a Market Perform rating and company profile of Core Growth. Analyst Bill Benton estimated that the company, which controls roughly 19% of the global market for water treatment chemicals and services used by institutional and industrial manufacturers, and 25% and 9% of the global market for the energy and paper industries, respectively, would generate adjusted EBITDA of $576.7 million in 2004 and $627.1 million in 2005. "We believe the company's leading market share is a result of its strong customer relationships, integrated sales and service offerings, superior technology, and extensive global presence, allowing the company to service customers effectively as they expand internationally and to provide one-stop shopping for customers seeking one total water management solution provider," Benton said. "Nalco's business strategy is focused on providing its critical products and services as part of a service solution sale, resulting in a strong recurring-revenue model," he added. "We estimate that more than 80% of the company's revenue is recurring in nature. Nalco typically is 'designed' into the customer's processes and applications, often with its service and technical support teams working side by side with customers' employees, deepening its relationship and providing an opportunity to offer additional products and services. We believe this tight level of integration also provides a significant barrier to customer exit, evident in the company's impressive customer retention." William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months. William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months. For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/pages/eqresearch_home.asp?uid=768 Additional information is available upon request. William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252. DATASOURCE: William Blair & Company, L.L.C. CONTACT: Tony Zimmer of William Blair & Company, L.L.C., +1-312-364-8611, Web site: http://www.williamblair.com/

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