Koelnmesse is on the move! For the first time in decades, all of the company�s employees now work together under one roof � in their new administration building. This top floor we�re on now constitutes the building�s conference center, as in the days of Kl�ckner-Humboldt-Deutz. And from up here we can enjoy the stunning view in all directions, which takes in the city center, Cologne Cathedral, the Bergisches Land and the Rhine, both upstream and downstream. But this view also reminds us of the main issue that will concern us today and in the coming weeks. You�ve been hearing about our plans for many years, and about the progress of the construction for many months.

And now you can finally see the result: the new-look Koelnmesse trade fair venue.

Ladies and gentlemen,
Virtually all of Koelnmesse�s activities at the moment are centered on the restructured grounds. Many employees had only a brief period of relaxation over Christmas and New Year, with the finishing touches being put to the new Northern Halls and the modernized Southern Halls in the last few days. Everything is now finished, right on schedule and in time for imm cologne � the International Furniture Fair. We�ll be officially opening the new-look exhibition center on the first day of the fair, January 16, and we�d be delighted if you could accept our invitation to the ceremony.

Right from the beginning, we have emphasized that Cologne is now the home of one of Europe�s most appealing trade fair venues. You�ll be able to fully convince yourselves of this fact during our tour later on. The Master Plan team at Koelnmesse spent several years examining virtually all of the world�s leading trade fair complexes, analyzing their weaknesses and recording their strengths. In the process they took into account not only ceiling heights, structural features and exterior designs, but also atmosphere, services and hospitality. When it comes to these factors, there�s probably more expertise here in Cologne than anywhere else in the world.

Thanks to this expertise, Koelnmesse was able, within a very short space of time, to transform its Master Plan 2010 into the Master Plan 2006. You�re all familiar with the details. The Northern Halls� trademark features include high ceilings, large service doors, excellent logistics, the absence of pillars, and supply points throughout for energy, water and communications. Their flexibility makes them suitable for events of every kind.

The state-of-the-art Congress Center North, located in the new part of the exhibition grounds, will offer added versatility with its overall capacity of 3,000 people. This venue is ideal for congress fairs that combine an exhibition with a conference program, which I�m sure we�ll be seeing more and more of in the future. The centerpiece of this new building is the two-story Konrad-Adenauer-Saal. Meanwhile, the forecourt and foyer of the Entrance North create an imposing first impression � and the new Press Center has a very distinctive look that�s in a class of its own.

At this point I�d like to reiterate that the same high standards apply to the entire Koelnmesse trade fair grounds. The older halls in what has now become the southern part of the center, most of which have been in use since the 1970s, were fully incorporated into all of the activities to enhance the overall trade fair experience for our guests. These include measures concerning catering, toilet facilities, transportation, logistics, visitor orientation and the provision of information.

It�s important to show our customers that the restructured trade fair center forms a single entity. Thanks to its compact, clearly structured layout, everything is close at hand. What�s more, the 284,000 m� of gross hall space corresponds almost exactly to the amount available previously. Our efforts have therefore been focused exclusively on improving quality, not quantity. In other parts of Germany, municipal authorities have been pushing for larger and larger trade fair venues, creating extra capacity that far exceeds requirements. Here in Cologne, however, a more realistic approach has been taken. Empty halls are not economical and merely intensify the competition. We want nothing to do with the wasteful accumulation of unnecessary hall space; for us, quality comes before quantity.

That said, however, we do of course want the new halls to generate growth. As I have repeatedly emphasized in the past, we aim to fill them with life � and that means trade fairs. Koelnmesse has had this goal in sight for many years, and its success speaks for itself.

Let�s turn our attention to the program of events that took place in 2005. As is generally the case in odd-numbered years, the number of trade fairs was lower than for the year before, totaling 61 fairs and exhibitions. Of these, Cologne hosted 22 events staged by Koelnmesse GmbH and five organized by Koelnmesse Ausstellungen GmbH. Added to them were 25 guest events and nine trade fairs held abroad.

Asia-Pacific Sourcing and the Cologne FoodTec Congress were new additions to the portfolio. DMS, the digital management solutions trade fair organized by Koelnmesse, took place in Essen for the last time in 2005, and will be one of the first events to be staged at the new-look Cologne exhibition center later this year.

Despite the relatively small number of trade fairs in 2005, the number of visitors exceeded 1.5 million. That�s an increase of more than five percent compared to the total number that attended the same trade fairs the previous time. What�s more, the number of visitors from outside Germany rose by over ten percent to around 616,000. The exhibiting companies numbered more than 30,000 in 2005, rivaling the outstanding totals of the previous years. And in 2006, we�re expecting these figures to increase even further.

In my capacity as Chairman of the Supervisory Board, I am of course delighted with these results. We have often highlighted the fact that it�s important to expand our portfolio of trade fairs, which to date have featured primarily consumer goods, to also include events that focus on industrial goods. The first steps in this direction have already been taken. Pacovent, a packaging trade fair that deals exclusively with investment goods, will be making its debut later this year. Another example is ProSweets, the fair for suppliers to the confectionery industry, which is also being launched in 2006. And last but not least in this group is PowerGen Europe, the leading international trade fair for the construction and operation of power plants.

As you can see, ladies and gentlemen, we�re heading in the right direction. The fact that a number of local and national newspapers have concentrated on the financing of the new halls in recent weeks has not assisted our efforts to attract new trade fairs and new sectors to Cologne. However, I have every confidence in the investigations carried out by the Public Attorney and the district government, and I believe that they will create the transparency that will allow us to put the issue behind us as soon as possible.

It�s vital that this media debate in no way casts a shadow on the tremendous attractiveness of the new-look Koelnmesse exhibition center. This appeal will enable us to add new chapters to our success story, which already includes attracting the scooter and motorbike fair INTERMOT to Cologne. This event�s relocation is due to the great advantages Cologne has to offer as a trade fair venue: its central location, its excellent accessibility, and the exhibition center�s many outstanding facilities. A recent study carried out by the Hamburg Institute of International Economics came to very positive conclusions in this connection, which in turn will help to boost the appeal of Koelnmesse still further.
The work we�re doing to make our exhibition center even more appealing is set to continue this year. Although imm cologne marks the official opening and the first time that the entire new grounds will be occupied, the Master Plan 2006 will not be concluded until the fall. The next step is to extend the Trade Fair Boulevard, which already fulfills its purpose in the new part of the grounds, to reach the Southern Halls. This boulevard will then connect all of the halls, allowing visitors to quickly find what they�re looking for � including all of the many service areas that will be located here. Two service centers for exhibitors will be opened, one at the northern end and one at the southern end. Also located here will be selected retailers and a tourist information office similar to the K�lnTourismus shop in downtown Cologne. In short, our customers will find here all the information, services and items they might need between appointments or at the beginning or end of a day at the trade fair. The boulevard will extend as far as the Piazza, a central square between the Southern Halls that will add a certain Mediterranean touch to the trade fair experience, especially in the summer. After all, it�s not only the facilities of an exhibition center that lead to its success, but also the atmosphere of the venue and the city as a whole.

Also scheduled to be completed this fall is the Entrance South, which will link the Koelnmesse grounds with the K�ln Messe/Deutz train station and the InterCity Express rail terminal. This brings us to the subject of Koelnmesse�s links with the city. Visitors from all over the world attend our fairs, and the station and the entrance areas are among their first impressions of Cologne. That�s why we need to make sure that these areas are appealing. As you know, the area currently known as the Barmer-Viertel is to be made available for this purpose. The City of Cologne intends to draw up a plan for this area that takes into account the interests of Koelnmesse, its customers, the development of the neighborhoods on the right bank of the Rhine and the position of UNESCO.

I firmly believe that our vision of creating an attractive trade fair and media center on this side of the Rhine, which I outlined to you here last year, stands an excellent chance of becoming reality. The official opening of the �new� Koelnmesse will have many positive consequences. For example, we�ll see plenty of changes behind the listed facades of the Rhineside Halls, where Germany�s largest office premises � with a total area of 160,000 m� � will be built. In 2008 RTL will be the first company to move in, followed by others that will include numerous providers of media and communications services. We�ll also continue to push for the expansion and improvement of the Deutz train station, even though Deutsche Bahn has decided not to realize any large-scale modernization plans for the moment. Furthermore, we�re remaining true to our vision of how the exhibition center�s future Entrance South should look � a vision shared by Koelnmesse and the City of Cologne. Together we�re planning to build an additional congress center, possibly with a new hotel adjoining the exhibition grounds. This would enhance still further Cologne�s appeal as a trade fair venue and an economic hub.

In my view, this side of the Rhine offers tremendous potential for preparing Cologne to face the challenges of the future and municipal competition. No other part of our city is facing such major changes � for the better! Developments in Deutz, Kalk and M�lheim over the past five years have given Cologne a younger, fresher, more modern feel � and Koelnmesse has played a major role here. Even though our plans for Deutz have suffered a setback, as you�re aware, the City of Cologne now aims to take the opportunity to plan something completely new, with high quality standards in mind.

But of course every new achievement begins with the first step. And the upcoming opening gives us plenty to look forward to. We�ll see the inauguration of 80,000 m� of hall space and the opening of the new Press Center and conference rooms. Many VIPs are expected to join us � and all of this represents a special challenge for Koelnmesse. I�m sure it will, as always, pass the next test with flying colors.