In 2007, we began to implement a new, combined environmental, health and safety (EHS) management system. This system is designed to streamline and standardize our existing, separate environmental and safety management systems and compliance programs, incorporating their strengths and attributes to enhance performance. This improved management system will guide K-C facilities to:

• Systematically identify, control and reduce the risk of harm to employees, property losses and damage to the environment.
• Enhance compliance and improve performance.

The system emulates both the international standard ISO 14001 for environmental management and OHSAS 18001 for occupational health and safety. Some of our facilities choose to become certified to these standards as a demonstration of best practice or because of business need. At the end of 2007, 28 K-C facilities were certified to ISO 14001. Our other facilities are internally audited to standards at least as stringent.

In the fourth quarter of 2007, we introduced a requirement that all facilities and business units certify their level of compliance with applicable environmental laws and regulations, as well as our Vision 2010 Water Quality Standards. We have incorporated environmental compliance assurances into our quarterly internal controls process.