Ecolab Takes Major Step to Expand U.S. Healthcare Business

  
    
  
  
    
      Ecolab Inc. announced it has agreed to purchase Microtek Medical 
      Holdings Inc. (Nasdaq:MTMD), an Alpharetta, Georgia-based manufacturer 
      and marketer of infection control products for healthcare and acute care 
      facilities. Microtek’s specialized product 
      lines include infection barrier equipment drapes, patient drapes, fluid 
      control products and operating room cleanup systems. Microtek’s 
      2006 sales were $142 million.
    
    
      Ecolab has agreed to pay $6.30 per share in cash for Microtek’s 
      shares; Microtek had 43.5 million shares outstanding at June 30, 2007. 
      The agreement has been approved by the boards of directors of both 
      companies, and is subject to the approval of Microtek’s 
      shareholders and other customary closing conditions, including 
      regulatory approvals. Materials will be mailed to Microtek shareholders 
      after required filings have been made with the Securities and Exchange 
      Commission. Closing is expected to occur in the fourth quarter.
    
    
      Douglas M. Baker, Jr., Ecolab’s Chairman, 
      President and Chief Executive Officer commented on the announcement, 
      saying, “This represents another strong step 
      to significantly expand Ecolab’s growing 
      presence in healthcare cleaning and infection prevention. As the global 
      leader in premium cleaning and sanitation, we have a long-standing 
      record of bringing new, innovative and effective solutions to the 
      foodservice, lodging, food and beverage processing and healthcare 
      industries, helping them to deliver cleaner, safer and healthier 
      products, experiences and outcomes. We are continuing to build on our 
      capabilities, particularly in the healthcare market, as we focus on 
      improving cleaning and sanitizing solutions for patients and staff, and 
      simultaneously reduce healthcare associated infections (HAIs).
    
    
      “Microtek will combine with our existing hand 
      hygiene, medical instrument, and surface and environmental cleaning and 
      disinfection offerings to comprise a critical part of our strategy to 
      offer broad and complete product solutions for the healthcare market, 
      and especially HAIs,” Baker continued. “Further, 
      Microtek’s strong team and excellent customer 
      relationships will provide us new avenues to pursue future growth with 
      our existing products.
    
    
      “We expect dilution from the transaction to 
      be approximately $0.01 per share in the fourth quarter 2007, but we 
      believe our current business momentum will enable us to offset that; as 
      a result, we continue to look for 2007 earnings per share to be in the 
      $1.64 to $1.66 range. We expect dilution from Microtek to represent 
      approximately $0.02 per share in 2008, and show accretion building 
      thereafter.
    
    
      Baker concluded by saying, “We see exciting 
      potential for the combined operations of our companies and for the 
      improved solutions we will bring to our customers and patients, as well 
      as additional opportunities for both companies’ 
      employees. We look forward to completing the transaction and joining our 
      two great companies together in developing new and complete solutions 
      for critical healthcare needs.”
    
    
      With sales of $5 billion and more than 13,000 sales-and-service 
      associates, Ecolab Inc. (NYSE:ECL) is the global leader in cleaning, 
      sanitizing, food safety and infection prevention products and services. 
      Ecolab delivers comprehensive programs and services to foodservice, food 
      and beverage processing, healthcare, and hospitality markets in more 
      than 160 countries. More news and information is available at www.ecolab.com.
    
    
      Additional Information about the Transaction
    
    
      Microtek Medical Holdings, Inc. will file with the Securities and 
      Exchange Commission and mail to its stockholders a proxy statement that 
      will contain important information about Microtek, the proposed merger 
      and related matters. Stockholders are urged to read the proxy statement 
      regarding the proposed merger when it becomes available because it will 
      contain important information that Microtek stockholders should consider 
      before making a decision about the merger. You may obtain a free copy of 
      the proxy statement (when available) and other related documents filed 
      by Ecolab and Microtek with the SEC at the SEC’s 
      website at www.sec.gov. The proxy 
      statement (when it is available) and the other documents may also be 
      obtained for free by accessing Microtek’s 
      website at www.microtekmed.com 
      by clicking on the “Investors” 
      link and then clicking on the “Financials” 
      heading and the “SEC Filings” 
      heading, by writing to Microtek at 13000 Deerfield Parkway, Suite 300, 
      Alpharetta, Georgia 30004, Attention: Corporate Secretary, or by 
      emailing Microtek via the Company's website at www.microtekmed.com 
      by clicking on the "Investors" link and then clicking on "Contact 
      Investor Relations.”
    
    
      Ecolab Inc., Microtek and their respective directors, executive officers 
      and certain other members of management and employees may be soliciting 
      proxies from Microtek stockholders in favor of the merger. Information 
      regarding the persons who may, under the rules of the SEC, be considered 
      participants in the solicitation of the Microtek stockholders in 
      connection with the proposed merger will be set forth in the proxy 
      statement when it is filed with the SEC. You can find information about 
      Ecolab’s executive officers and directors in 
      its definitive proxy statement filed with the SEC on March 28, 2007. You 
      can find information about Microtek’s 
      executive officers and directors in its definitive proxy statement filed 
      with the SEC on April 19, 2007. You can obtain free copies of these 
      documents from Ecolab and Microtek using the contact information above.
    
    
      This news release contains various "Forward-Looking Statements" within 
      the meaning of the Private Securities Litigation Reform Act of 1995. 
      These include statements concerning 2007 transaction expenses and 
      one-time costs; our 2007 fourth quarter and full year financial and 
      business prospects; and the transaction's potential impact on our 
      earnings per share in 2008 and in future years. These statements, which 
      represent Ecolab's expectations or beliefs concerning various future 
      events, are based on current expectations that involve a number of risks 
      and uncertainties that could cause actual results to differ materially 
      from those of such Forward-Looking Statements. We caution that undue 
      reliance should not be placed on Forward-Looking Statements, which speak 
      only as of the date made.
    
    
      Risks and uncertainties that may affect operating results and business 
      performance are set forth under Item 1A of our most recent Form 10-K and 
      include the vitality of the foodservice, hospitality, travel, health 
      care and food processing industries; our ability to develop competitive 
      advantages through technological innovations; restraints on pricing 
      flexibility due to contractual obligations; pressure on operations from 
      consolidation of customers or vendors; changes in oil or raw material 
      prices or unavailability of adequate and reasonably priced raw materials 
      or substitutes therefore; the effect of future acquisitions or 
      divestitures or other corporate transactions; the costs and effects of 
      complying with: (i) laws and regulations relating to the environment and 
      to the manufacture, storage, distribution, sale and use of our products, 
      (ii) changes in tax, fiscal, governmental and other regulatory policies 
      and (iii) changes in accounting standards, including the impact of FIN 
      48, which could increase the volatility of our quarterly tax rate; 
      economic factors such as the worldwide economy, interest rates and 
      currency movements including, in particular, our exposure to foreign 
      currency risk; the occurrence of (a) litigation or claims, (b) the loss 
      or insolvency of a major customer or distributor, (c) war (including 
      acts of terrorism or hostilities which impact our markets), (d) natural 
      or manmade disasters, or (e) severe weather conditions or public health 
      epidemics affecting the foodservice, hospitality and travel industries; 
      our ability to attract and retain high caliber management talent; and 
      other uncertainties or risks reported from time to time in our reports 
      to the Securities and Exchange Commission.
    
    
      Except as may be required under applicable law, we undertake no duty to 
      update our Forward-Looking Statements.
    
    
      (ECL-A)