Acme United Reports First Quarter Results.

Business Editors

FAIRFIELD, Conn.--(BUSINESS WIRE)--April 19, 2000

Acme United Corporation (ASE:ACU) reported today net income of $207,000, or 6 cents per share (basic), 5 cents per share (diluted) from continuing operations for the first quarter of 2000. This compares to a net loss from continuing operations of $(542,000), or (16 cents) per share (basic and diluted) for the first quarter of 1999. Including a gain of $2.1 million related to the sale of the medical business, net income was $1.8 million or 52 cents per share (basic and diluted), for the first quarter of 1999.

The first quarter of 2000 represents the fourth consecutive quarter of profitability from continuing operations. The trailing twelve month net income of $593,000, or 17 cents per share, represents a significant and sustained turnaround which is expected to continue.

Net sales from continuing operations were $8,041,000 for the first quarter of 2000 compared with net sales of $7,911,000 for the same quarter of 1999, an increase of $130,000, or 2%.

Walter C. Johnsen, President and Chief Executive Officer, said "I am pleased with the financial and operational results in the first quarter. We had a profit in excess of $200,000, reversing a year ago loss of $542,000. Our gross margin improved from 23.5% in the first quarter of 1999 to 35.1% in the same period of 2000. Strategic product sourcing and greater productivity were the main drivers for the improved margins.

"Acme is now staffing to build its presence in the mass market, grocery, and drug chains. This is a large segment where Acme has historically had a smaller market share than in office products. The Tagit! family of scissors, rulers, staplers, pencil boxes, our first aid kits, and the Westcott rulers will be a part of the sales thrust."

Mr. Johnsen also stated that, during the first quarter of 2000, Acme completed a new three-year credit agreement with Bank of America. We appreciate their support and confidence. Acme management expects the second quarter of 2000 will exceed earnings of the second quarter of 1999.

Acme United is one of the largest suppliers of shears, scissors, rulers, first-aid kits and related products for consumers and office. There were 3,507,055 common shares outstanding as of March 31, 2000.

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 will be affected by the Company's ability to manage its growth and inventory; 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

                       FIRST QUARTER REPORT 2000


                                         Quarter Ended   Quarter Ended
                                        March 31, 2000  March 31, 1999
                     March
Amounts in thousands, except
 per share data                             (Unaudited)    (Unaudited)
-----------------------------------------------------------------------

Net Sales                                    $   8,041       $   7,911*

Net Income/(Loss) from
 Continuing Operations                             207            (542)

Net Income(Loss) Per Share from
 Continuing Operations-Basic                       .06            (.16)

Net Income(Loss) Per Share from
 Continuing Operations-Diluted                     .05            (.16)

Net Income                                         207           1,757

Net Income Per Share (Basic)                       .06             .52

Net Income Per Share (Diluted)                     .05             .52

*   As reclassified for comparative purposes.