ACME United Net Income Increases 34%.

Business Editors

FAIRFIELD, CONN.--(BUSINESS WIRE)--Oct. 23, 2001

Acme United Corporation (ASE:ACU) reported today net income of $405,000 or 11 cents per diluted share for the third quarter of 2001, which compares with net income of $302,000 or 8 cents per diluted share for the third quarter of 2000, an increase of 34%. This makes the ninth consecutive quarter of comparable earnings growth. Net sales were $9.0 million for the third quarter of 2001 compared with net sales of $8.8 million for the same quarter of 2000, an increase of 3%. The gross margin in the third quarter improved from 36% in 2000 to 38.5% in 2001.

For the first nine months of 2001, net income was $1.1 million, or 30 cents per diluted share compared with net income of $923,000, or 25 cents per diluted share in 2000, an increase of 19%. Net sales were $27.6 million in the first nine months of 2001, compared with $27.0 million in the same period of 2000, a 2% increase. The gross margin in the first nine months improved from 34.8% in 2000 to 37.6% in 2001.

Walter C. Johnsen, President and Chief Executive Officer said, "I am pleased to report sales and earnings increased for the third quarter of 2001 despite the difficult economic environment. The sales increase is due to new product introductions and market share increases. So far this year, we have launched additional scissors and staplers in our patented TAGIT! personalization product line. Our new TWIST-IT(TM) ruler had strong reception during the back to school season. We also introduced several new safety products. Acme will launch additional items at the School, Home and Office Products Association (SHOPA) show in November."

Mr. Johnsen also said that Acme initiated a stock repurchase program in the third quarter. The Company has repurchased 55,200 shares, which represent approximately 1.5% of all outstanding common shares at an average price of $2.92 through September 30, 2001.

Acme United is one of the largest suppliers of cutting instruments, measuring devices, and safety and related products for consumers.

There were 3,453,105 common shares outstanding as of September 30, 2001.

Forward-looking statements in this report, including without limitation, statements related to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including without limitation the following: (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company's plans and results of operations could be affected by the Company's ability to manage its growth and assets; and (iii) other risks and uncertainties indicated from to time to time in the Company's filings with the Securities and Exchange Commission.

                        ACME UNITED CORPORATION
                   CONSOLIDATED STATEMENT OF INCOME
                       THIRD QUARTER REPORT 2001

Amounts in Thousands -  except per share data

                              Quarter Ended         Quarter Ended
                            September 30, 2001    September 30, 2000
                               (Unaudited)           (Unaudited)

Net Sales                         $ 9,014                $ 8,760
Net Income                            405                    302
Net Income Per Diluted Share          .11                    .08


                            Nine Months Ended       Nine Months Ended
                            September 30, 2001      September 30, 2000
                               (Unaudited)             (Unaudited)

Net Sales                        $ 27,606               $ 27,003
Net Income                          1,100                    923
Net Income Per Diluted Share          .30                    .25

                        ACME UNITED CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                       THIRD QUARTER REPORT 2001
                              (Unaudited)


Amounts in Thousands

                        September 30, 2001          September 30, 2000
                            (Unaudited)                  (Unaudited)
Assets
Current Assets:
   Cash & Cash Equivalents      $     639           $         47
   Accounts Receivable - Net        8,820                  7,540
   Inventory                        8,697                 10,103
   Prepaid & Other Current Assts      816                    685
Total Current Assets               18,972                 18,375

   Property & Equipment             2,256                  3,296
   Other Assets                     1,585                  1,535
Total Assets                   $   22,813           $     23,206


Liabilities & Stockholder's Equity
Current Liabilities
   Notes Payable               $       56           $        681
   Accounts Payable                 2,404                  2,549
   Other Current Liabilities        3,121                  4,127
   Current Portion of
     Long Term Debt                 3,346                  2,854
Total Current Liabilities           8,927                 10,211
Long-term Debt                      4,911                  5,064
Other                                 428                    199
Total Liabilities                  14,266                 15,474
Total Stockholders' Equity          8,547                  7,732
Total Liabilities &
 Stockholders' Equity            $ 22,813               $ 23,206