Acme United reports second quarter results.

FAIRFIELD, Conn.--(BUSINESS EDITORS)--July 23, 1996--Acme United Corp. (ASE:ACU) reported today a net loss of $1,238,827, or 37 cents per share, for the second quarter of 1996.

This compares with a net profit of $241,588, or 7 cents per share, for the second quarter of 1995.

Net sales were $12,782,365 for the second quarter of 1996, as compared with net sales of $14,470,395 for the same quarter in 1995, a decline of $1,688,030. Of this decline, $975,310 resulted from the divestiture of the Altenbach business.

For the first half of 1996, the net loss was $2,054,906, or 62 cents per share. This compares with net income of $173,684, or 5 cents per share for the first half of 1995.

Net sales were $24,821,973 for the first half of 1996, compared with net sales of $27,367,286 for the first half of 1995, a decline of $2,545,313. Of this decline, $1,221,404 was attributed to Altenbach.

Net sales of domestic Consumer Products totaled $5,425,288 in the second quarter of 1996, compared with $5,473,715 in the second quarter of 1995. Excellent sales growth was achieved for the first aid kit product line, but due to highly competitive bid pricing, direct school sales were below last year's level.

Domestic Medical Products net sales were $3,647,598 in the second quarter of 1996, compared with $4,158,508 in the second quarter of last year. The decrease was primarily the result of a volume decline in the low margin custom tray market. Sales initiatives that are under way are expected to offset the decline next year.

International operations net sales were $4,058,132 in the second quarter of 1996, compared with $5,515,210 in the similar period of 1995. In May, the company completed the sale of assets of its Altenbach subsidiary in Germany. Excluding Altenbach, which lost $51,314 in April, the international businesses reported an aggregate profit which approximated the prior year's level.

Walter C. Johnson, president and chief executive officer, said that, "Acme has now completed much of its restructuring. Staff involved in ongoing activities has decreased by approximately 53 since year end 1995, or 14 percent of the total number of employees. The Bridgeport, Conn., manufacturing operation is now closed -- transferred to a lower cost North Carolina facility with full production commencing in the final quarter of 1996. The company expects to realize the benefits of lower production costs and improved operating efficiency in 1997.

"Also, the sale of inventory written down last year is on schedule. Production has been curtailed during the past six months to liquidate additional inventory. Company-wide inventory levels, excluding the Altenbach subsidiary, decreased by $6,443,398 from a year ago. Bank borrowing is also down $3,618,781 from a year ago."

The losses incurred during the first half of 1996 were primarily due to the change in strategic direction, Johnson noted. "The remainder of 1996 is expected to be impacted by the start up of manufacturing and the consolidation of the Bridgeport warehouse into Fremont, North Carolina, but to a much lesser extent. The company will realize the full profit impact by early next year as production achieves normal levels."

Acme United is a leading producer of metal disposable medical scissors and instruments, sterile procedure trays, germicidal products, dressings and wound care packs for hospitals and the alternate care market, as well as one of the largest producers of shears, scissors, rulers and related products for consumers in the U.S. and Europe.

There are 3,337,620 common shares outstanding. -0-

                       ACME UNITED CORPORATION
                   CONSOLIDATED STATEMENT OF INCOME
                     SECOND QUARTER REPORT 1996

                               Quarter Ended        Quarter Ended
                               June 30, 1996        June 30, 1995
                                 (Unaudited)          (Unaudited)

Net Sales (a)                    $12,782,365          $14,470,395
Net (Loss)/Income                 (1,238,827)             241,588
(Loss)/Earnings Per Share             $(0.37)               $0.07

                            Six Months Ended     Six Months Ended
                               June 30, 1996        June 30, 1995
                                 (Unaudited)          (Unaudited)

Net Sales (a)                    $24,821,973          $27,367,286
Net (Loss)/Income                 (2,054,906)             173,684
(Loss)/Earnings Per Share             $(0.62)               $0.05

(a) The 1995 Sales for presentation purposes has been changed from
    Gross Sales to Net Sales.

CONTACT: Acme United Corp., Fairfield

Marcia Burel, 203/335-2925