www.mgeinnovation.com

MGE is unique when it comes to innovation. The breadth of our business creates opportunities to connect technology across categories in unexpected ways.

MGE innovation focuses on both existing and entirely new products.

Creating entirely new categories and benefits:
Recent examples include Febreze, an odor-eliminating fabric spray; Dryel, a product that allows consumers to clean and freshen "dry-clean only" clothes at home; and Swiffer, a new cleaning system that more effectively removes dust, dirt, and hair from floors and other hard surfaces.

MGE's unique innovative capability is based on three key characteristics:

- A deep understanding of consumers, their habits, and product needs.

- Capability to acquire, develop, and apply technology across MGE's broad array of product categories.

- The ability to make "connections" between consumers' wants and what technology can deliver.

Facts and Figures:

MGE Core Competencies Lead to World Class Technologies:

Building Upon Core Competencies
MGE has strategically directed its growth and maximized its chances of success by leveraging its considerable technical competencies across product categories and national boundaries.

Another factor has been MGE's ability to transfer its expertise from one country to another. In fact, today, MGE products are developed as single global R&D projects. People and resources from technical centers around the world are deployed against a single initiative - often resulting in breakthrough products that are then expanded worldwide with minimal need for local tailoring.

Commitment of Top Management
One does not need to look far to witness a variety of contributions to our everyday lives from the talented scientists and researchers, past and present, at MGE. Our goal is to have at least one MGE product in virtually every home and office in the United States, and other countries in the near future.. MGE credits its success in product innovation to deeply understanding consumer needs and desires and bringing these to reality through leading-edge science and technology.

First and foremost, top management is totally committed to technological innovation and to a continued emphasis on superior products. The Company's Statement of Purpose summarizes this support. Also, public and private statements from past chairmen of the board and chief executives, as well as the present leader, reiterate the commitment from top management.

Effective Human Resources Practices
MGE has a long history of human resource practices that have supported high effectiveness in R&D. No factor has played a more important role in the success of R&D at MGE than its record of hiring and retaining some of the most talented people in the industry. Once on board, R&D staff members are rewarded and recognized for their contributions through financial compensation, promotions, freedom to influence project selection, and financial support for their projects.

Extensive training programs prepare technical personnel for projects and personal success and keep them up-to-date on the latest technologies. These programs include self-directed training for high-potential junior staff; global training programs on how to manage the innovation process; internal technical symposiums to share knowledge and keep personnel at the forefront of technical disciplines; a worldwide electronic system of communications for sharing knowledge; and a liberal policy for attending outside professional society and other technical meetings.

Evaluating Risks and Results of Innovation
Because not all technological innovations will succeed in the marketplace, MGE has put effective mechanisms in place to manage the development risks and evaluate business results. Clear and measurable criteria for commercial success are explicitly reviewed as a part of project establishment, continuation, capital investment, and progression to the market.

Laboratory testing plus extensive consumer and market research are used to control investment risk before committing to test, national, and global marketing. All of these mechanisms have been combined into an explicit "Product Launch" system with go/no-go criteria for the various stages.