The newsletter for customers, partners and business contacts of the Franke Group October 2008

A large audience for Franke Coffee Systems and Franke Washroom Systems

Sporting challenges for Franke2008 was a year with many marvellous sporting highlights. The Olympic Summer Games in Beijing and the European Football Championships were two of the major sporting events - and Franke products were very muchinvolved in these major events: In the course of the modernisation of all the EURO venues in Austria and Switzer-land, six stadiums were equipped with Franke hygiene solutions in the sanitary rooms and the changing rooms,while professional, superautomatic Franke coffee machines were used in the VIP areas and the Fan Zones in theOlympic Village in Beijing. Wherever sport takes place, Franke products also deliver the highest performance –as shown by the following examples.

Beijing: Olympic appearancefor Franke Coffee Systems Eight Franke «Evolution Top»coffee machines were in conti-nuous use at the OlympicSummer Games 2008. In theMcCafés in the Olympic villageand in the Media Center, theseprofessional, superautomaticmachines proved their value

even before the start of the Games: An average of 1,000 coffees per day and machine were provided atthe push of a button! Shortly before the official startof the Games, Franke delivered an additional two«Evolution Top» models to increase the capacity even

further. The athletes and the media representativeswere able to enjoy their favourite coffees – whetherEspresso, Cappuccino or Latte Macchiato – from thefirst thing in the morning until late in the evening.

Moscow: Coffee specialities for athletes and fans Coffee is also enjoyed at other sporting events: Manysport and cultural events attracting large audiencestake place regularly in the Luzhniki Olympic Stadium in Moscow. In 2007, the official agent of Franke CoffeeSystems in Russia, Franko Ltd, equipped all the refresh-ment areas in the Luzhniki Stadium with coffee ma-chines from Franke. These included the VIP-Club with20 buffets and two VIP-Club restaurants and bars. Thisyear, an additional six new Franke Spectra coffee machines were also installed in these areas in order tooffer the VIP guests a wide range of coffee specialitiesof a particularly high quality.

«My coffee ...» quick interview:

The 28-year old swimmerNicole Zahnd counts the 200 mand 400 m freestyle as her bestdisciplines. She is a 41-timeSwiss champion and the Swissrecord holder for the 200metres freestyle. Her many appearances in the OlympicGames and the World and Euro-pean Championships have beenthe highlights in her career.

Barcelona: Hygienic solutionsfor athletesFranke also faces sporting challenges in Spain. From itsopening in 1970, many Euro-pean competitions, the 1992Olympic Summer Games andthe 2003 World SwimmingChampionship have taken placein the facilities of the PiscinasBernat Picornell in Barcelona. True to the motto of theOlympic Games "citius – altius – fortius“, or in otherwords: „faster, higher, stronger“, the Catalan businessgroup Grup SEAE modernised this sports facility through the installation of the «AQUA 3000 open» water management system from the Franke Group. Thissystem makes possible the overall management and the centralised, fully automatic supervision of the sanitaryfunctions. In addition to the hygienic aspect, economy through the water saving potential is a decisive criterion for the stadium operator.

The Piscinas Bernat Picornell is well known for holding synchronous swimming competitions. Not only the ath-letes, but also the sanitary facilities are expected to produce precise and synchronised performances: the latterthrough the precise setting of the water temperature and the flow-through times, as well as programmablespecial functions. The health of the athletes is the first priority, and the «AQUA 3000 open» system guarantees ahygienic environment, with functions such as an automated hygienic flushing, protection against scalding, pro-tection against Legionella bacteria, and thermally disinfected supply systems. Franke products do not need tofear any direct comparison with the power and the stamina of a competitive swimmer. The small solenoid valve inthe fitting of the «AQUA 3000 open» system is a reliable powerhouse. This solenoid valve, which regulates thewater outlet to the shower and washbasin fittings, is operated 250,000 times a year on average. Successful com-petitive swimmers have the ability to deliver performance at the push of a button – and this requirement also ap-plies to the sanitary facilities. For example, the peak loads that occur during breaks and towards the end of thecompetitions need to be optimally mastered, while nevertheless guaranteeing the ease of use – and all of thiswith special attention to hygiene and economy.

Franke international

Editorial

Dear Customers

We have recorded a slight increase in turnover overallin the first half year of 2008, despite the continuinghigh raw material costs and negative currency effects.At Franke Kitchen Systems (domestic kitchen pro-ducts), we are currently experiencing sales declines invarious countries caused by the sub-prime crisis. Salesin the other four business areas were all well above thelevel of the prior year.

The considerable turbulence in the global financemarkets in the last few months will have a consider-able impact on the “real” economy and on economicdevelopment. We are also feeling the effects at Franke.But, as a well-financed, innovative company that doesnot have to rely on banks, we also see this situation as an opportunity for long-term success, and we areconfident that we will emerge strengthened from thisdifficult time.

Yours sincerely

Michael PieperPresident & CEO Franke Group

How important is coffee for you as a sportswoman? „Coffee is incredibly important for me generally, not onlyas a sportswoman. I very quickly become “unbearable”without good coffee, and the withdrawal symptomsmake themselves felt. For this reason, competitions inAmerica or Asia are always the worst for me – for weekson end, there is only this “filter coffee”, that tastes like alot of things, but not like coffee.“

What do you like most about coffee, and when do youenjoy drinking it the most? „I even like the smell of goodcoffee. There is nothing nicer than to wake up in themorning to the smell of freshly brewed coffee. For me,

coffee clearly represents a moment of pleasure, and it is therefore my favourite drink for cosy moments. Thecoffee that I make for myself in theevening, as soon as my „dailywork“ is done, is sacred to me.For me, this cup of coffee is thesign that I can now switch off.“

What is your favourite way todrink your coffee? „I have tosay that I am a bit of a “softy”when it comes to coffee, becauseI love cappuccino!“

Modern interpretations of a kitchen classic

Desire for colour: New sink unit models from FragraniteStainless steel may well be the unchallenged material for sink units and is by far the material that is most often used, but high quality composite materials are increasingly gaining in importance. With the new Fragranitemodels that are available in various colours, Franke has once again shown how particularly attractive accents can also be set in this area.

New Franke Crystal line with an elegant high-gloss appearance

A feast for the eyes from Italy: crystal-clear kitchen designBlack or white glass surfaces combined with stainless steel are the distinctive features of the newly designedCrystal Line from Franke Italy – consisting of a large-surface gas hob, an elegant exhaust hood matching the ovenperfectly and an extravagant glass rinsing module as a wet work surface.

In the meantime, the proportion of coloured sink unitsin Germany lies at around 30%, as could be read in theSeptember edition of the specialist magazine “Küchen-handel”. This is not entirely without reason: On the onehand, the exorbitant increase in the raw material pricefor stainless steel has certainly played a role here. Onthe other hand, however, sink units made from com-posite materials – a combination of natural quartz andacrylic resin – also offer a range of interesting featuresthat are of decisive importance for many consumerswhen choosing a sink unit. Above all, theoption of being able to choose from a widepalette of attractive colours. The soft,subtle, trendy colours of Havana or StoneGrey can be combined particularly well,tone on tone, with the work surface.Strong variants, such as Portland or Gra-phite set strong contrasts in the kitchen environment.

Franke Kitchen Systems

As a material, glass is ideally suited for use in thekitchen, because it is easy to care for and does notabsorb any foreign odours. Thanks to its smooth, non-porous surface, glass is also very hygienic, and specialtypes of safety glass guarantee the necessary robust-ness in daily kitchen use. The combination of the twoelementary materials glass and stainless steel is also a treat for the eyes. The best example of this: theCrystal line created by Franke Italy. Clear in their shapeand discreet in their appearance, the elegant Crystalline elements can be combined perfectly in the kitchenwith different materials, colours, fronts or styles, and can be ideally integrated into open-plan living concepts.

The material characteristics of these high quality com-posite materials are equally convincing. The material iscompletely coloured all the way through, so that nosigns of wear become apparent, even after heavy use.In addition, thanks to their dirt-repellent DuraKleen surfaces, sink units from Fragranite are easy to clean,are resistant to spots and acids and are heat resistantup to 280 degrees Centigrade – absolutely robust andpractical for everyday use.

The timelessly clear and linear design of the newFranke Fragranit models – such as the Java sink-unitwith its concise stainless steel bridge between thesinks or the clear lines of the new Maris model – can beintegrated into a straightforward kitchen architecturejust as well as into a romantic kitchen in the country-house style.

Widths from 60 – 120 cm can be selected for the gene-rously dimensioned gas hob. Matching this – in a restrained shape that nevertheless sets the tone of theroom – there is the wall-mounted extractor hood with adark glass cover and an unobtrusively quiet motor. The Crystal line ovens, whose black glass fronts can beelegantly integrated into even the smallest room geo-metry, are the ideal complement to these elements.And not to forget the extravagant, but neverthelesspractical glass rinsing module. The matt, non-slipdraining surface combined with the surrounding glassedging, the puristically clear stainless steel basin and the striking tap fitting create an extraordinaryatmosphere. Work is guaranteed to be a pleasure here.

This results in completely new and individual designapproaches for washbasins from Miranit. Despite theirflat and almost delicate appearance, the new Quadro,Ronda und Lotos multiple washing solutions guaranteethe highest stability. Their smooth, high-gloss Gelcoatsurfaces are robust and easy to clean. The Alpine whitesurface is also highly resistant against impacts and ab-rasion, and has a good resistance to acids and alkalis.Even water temperatures of up to 80 °C have no effecton the Gelcoat surface.

With its clear, functional design, the Quadro design variant is well suited to the design of a modern sanitaryroom. Its basic rectangular shape complements the attractive flowing design of the basin, whose flat shapeis particularly convenient when washing. The elegant

rounded shape of the Ronda design is interrupted by aline running parallel to the wall. The visually pleasingshape thereby blends itself harmonically into any wash-room. Depending on their intended use, the Ronda andQuadro wash tables are available as single, double,multiple or niche wash tables. The elegant swing of theoval Lotos wash table is more at home in washroomswith a harmonic nature. The almost delicate effect ofthis wash table variant – reminiscent of a flower – isunderlined by the low plate thickness of only twelvemillimetres, clearly demonstrating the material advan-tages of Miranit in shape and stability.

Incidentally, all the wash table variants can be com-bined very well with the washroom fittings and stain-less steel equipment from the Franke product range.

Innovative and hard-wearing material for wash tables

Multiple wash tables from Miranit:for heavy use and exceptional designMiranit stands for the stable combination of natural minerals with a high-quality synthetic resin. The materialwas specially designed for the requirements of institutional sanitary equipment. Thanks to its excellent flowcharacteristics, this mineral material bonded with synthetic resin can be formed into almost any shape with minimal material thicknesses and a minimal radii of only 2 millimetres .

The atmosphere has anartistic feel: solid woodenfurniture with classicalblack-and-white photo-graphs on the walls andan olive tree at the verycentre – quite the Medi-

terranean lifestyle that you would expect to accompanythe range of fresh pasta, pizzas and salads on offer.The preparation of the foods in the so-called “Front-Cooking” style, where the customers can watch and askfor their own special wishes, is also an experience initself. This gastronomic concept has established itselfwith great success in just a few years. So successful, in fact, that the 40th Vapiano restaurant was opened atthe end of September, and the number of “Vapianisti”will grow considerably over the next few years: 30 to 40new openings worldwide are planned per year.

Franke Foodservice Systems

Franke Washroom Systems

Michael Pieper, CEO Franke Groupand Mirko Silz, CEO Vapiano AG

concluded the partnership contractbetween Vapiano and Franke.

A partnership contract for global cooperation was con-cluded between Vapiano and Franke Foodservice Sys-tems Europe in May of this year. From the very start,Franke was able to make specific use of its many yearsof experience in the field of kitchen equipment for sys-tematic catering in order to take account of the opera-tional requirements of Vapiano. Franke has been a com-petent and reliable partner in both the selection of thekitchen equipment and in the specification of its ownbrands (stainless steel furniture). By the end of theyear, around ten additional Vapiano restaurants willhave been opened equipped with Franke kitchenequipment, and a further 15 projects are in the finalplanning stage. Vapiano is relying on Franke as itspartner for all project phases, including After Salessupport in the area of replacement parts and smallparts as well as technical services.

Successful concept conquers the world of gastronomy

Vapiano restaurants choose Franke kitchensSalads, pasta and pizza from the very best ingredients, prepared before the eyes of the guests – that is the Vapiano recipe behind one of the most remarkable gastronomic success stories of recent years. New Vapiano restaurants will now be fitted with tailor-made Franke kitchens.

Pictures top down: – Wash table Ronda in an elegant rounded shape

– The oval Lotos design reminiscent of a flower – Stable and hard-wearing: multiple wash tables from Miranit

ImprintPublished byFranke Holding AG, CH-4663 Aarburg, Tel. +41 (0)62 787 31 31, Fax +41 (0)62 787 30 37www.franke.com

Cief editor Natascha Widmer, Elke OelkuchFranke Kitchen Systems Peter Gnehm, Angelika SchmidleFranke Foodservice Systems Stefanie BorhoFranke Washroom Systems Waltraud RüfFranke Coffee Systems Jeannine Zumstein

The Keg Service originallystarted at Franke Blefa in Kreuztal, Germany. A decisive step towards a comprehensive kegservice offer for CentralEurope took place in2006 with the foundingand expansion of theFranke Keg Service GmbHin Wirsberg, Germany.Today, more than 30 em-ployees work at this lo-cation and in mobile deployment, providing aservice for Germanbrewery customers andfor the neighbouringmarkets in Central

Europe. The Franke Keg Service UK, with head office inThurnscoe/UK, was started in 2005, and, with a similarstaff size, is now working successfully together withwell-known breweries. In addition to kegs, it also ensures that casks retain their useful life as specialcontainers for “Real Ales” (non-pasteurised beer, anEnglish speciality). Following the start-up of a new kegproduction facility in Ruston/USA, another service organisation is being built up that will develop a com-prehensive service programme for the North Americanmarket. The Franke Keg Service is thereby not onlyaligned to the support of international brewery groupsand their service needs, but also towards local breweries.

New Franke coffee machines to meet the highest standards

Evolution Plus product line: it’s a RevolutionFranke Coffee Systems presents the latest development in the current Evolution product line: the Evolution Plus.It immediately receives several plus points for its technical features, its strong performance and its design.The optical highlight is the new glass surface of the control panel.

Franke Beverage Systems

Franke Coffee Systems

The standard keg repair service, the rising pipe serviceand the replacement of the head or foot ring are there-by at the heart of the range of services provided. As aresult, kegs that can no longer run through automaticsystems can be made functional once again, therebyensuring a higher level of utilisation and a longerservice life of the keg pool. This work is not only carriedout at the Franke service locations, but, wherever tech-nically possible, is also being increasingly carried outat the breweries themselves in mobile deployment.

Franke Beverage Systemsis meeting the changingrequirements of the mar-ket with innovative ser-vices. The trend towardssmaller containers as aresult of the increasingbrand-name competitionnecessitates a qualifiedreduction in the volumeof the kegs. Uniform la-belling for the integratedkeg pools of the largerbrewery groups is carriedout through the replace-ment of the keg head ring by means of an efficient and high quality procedure. All these services extendthe life cycle of a keg and thereby guarantee the value retention of the present keg pools. For breweries, Franke Beverage Systems is thereby the compre-hensive, globally-operating system partner for kegs.

The Evolution Plus available in two models Plus points are offered by both the Franke EvolutionPlus model with the Franke CF milk system and thesecond model with Autosteam Pro. Both models offer a clever and functional pre-selection system and thepossibility of programming up to 32 different coffeeand milk products. The compact Evolution Plus makesit possible to expand the range of coffee specialities innext to no time – and to thereby be prepared for everycustomer request and be ready to reach new targetgroups.

Pre-Selection Plus control panelThe new control panel of the Pre-Selection Plus appearsin a modern glass design that has a lot to offer from atechnical viewpoint. The control elements have been arranged in a clear and ergonomic manner, and are di-vided into two areas: The 16 selection buttons on theright-hand side can, for example, be programmed fordifferent beaker or cup sizes (2 dl, 3 dl), a second, lowfat milk variety or the selection of the coffee beans.All the programmed selection buttons are illuminated.Once the user has made his choice, the selectedbuttons will blink. In this way, the user can clearly seethe selection that has been made. The product se-lection buttons are located on the left side, around the

Franke Beverage Systems with a comprehensive service programme

Keg Service offers value retention to brewery customersThe Franke Keg Service supports breweries with constructive and economical solutions for retaining the value of their capital-intensive keg pools.

large graphic display. They are used to start the pre-paration of the desired beverage, for example, cap-puccino.

Model with CF milk system and KE320 cooling unit The well-proven Franke CF milk system ideally comple-ments the trend towards a higher milk consumption. In combination with the new KE320 cooling unit, theEvolution Plus has a storage area sufficient for 10 litresof fresh milk. With the option of two 5-litre milk containers, different types of milk can be offered, forexample, an additional low-fat milk.

Model with Autosteam ProWith the new Autosteam Pro development, the milk iswarmed or frothed in a separate process at the press ofa button. Milk, air and steam are automatically mixedtogether to produce the perfect frothy milk. The tempe-rature and the air feed can be programmed individuallyfor every product. The innovative material with thename “Peek” prevents the caking of the milk, which is an important hygienic aspect. The Autosteam Pro steam lance can be cleaned daily in a very simplemanner.

On the road to success in the USA

Franke Beverage Containers USA celebrated the firstyear of its existence in July 2008. „The integration of the production and service operation in Ruston,Louisiana, was a formidable challenge that the wholeteam has overcome with enormous dedication. We are also very grateful for the support from the FrankeKitchen Systems team in Ruston, which certainly con-tributed to our success“, said Carl Norgren, GeneralManager of Franke Beverage Containers USA.

The new keg plant shares the site with the long-estab-lished Franke kitchen sink production. As a result, anoptimal utilisation of the synergies was achieved fromthe very beginning, in that the technical and admi-nistrative facilities were already available. “In addi-tion, the general costs were able to be split, fromwhich both operations were able to profit“, concludedNorgren.

Franke Beverage Containers USA offers an extensiverange of products and services for breweries on both American continents and beyond. So-called“Kwik Kegs” can be supplied directly from stock insmall quantities and with all branding options, where-by even short notice customer requirements can be covered.

Chrome-steel kegs are certainly the most economicalcontainers for beer, and are also environmentallyfriendly. Kegs can be refilled many times, and can becompletely recycled at the end of their long useful life.

Highlights of the Evolution Plus– Trendy design with glass panel– Up to 32 coffee products can be individually

programmed at four display levels– Functional «Pre-Selection» control panel with

16 selection buttons, for example, for beveragesizes, two types of milk, flavours etc.

– Prepared for flavour concepts– Optional newly developed Autosteam

Pro steam lance for the automatic frothingand warming of milk

– 400 volt electrical connection