American Safety Razor Announces Facility Consolidation, Provides Outlook for 1998 First Quarter.

VERONA, Va.--(BUSINESS WIRE)--March 27, 1998--American Safety Razor Company (NASDAQ:RAZR) announced today that as planned, it will be closing its Sparks, Nevada cotton operations and that it has completed the consolidation of its domestic shaving razor and blade and cotton products sales forces into one cohesive group. As a result, the Company will incur a 1998 first quarter pre-tax restructuring charge of $1.0 million.

"The facility reduction should substantially improve the cost structure and overall efficiency of our cotton operations helping us remain a low-cost producer of consumer cotton products," stated William C. Weathersby, President and Chief Operating Officer of American Safety Razor. "The restructuring of our sales force reflects consumer products customer expectations and will allow us to service these customers more efficiently and effectively as we move forward."

The Company also announced today that despite projected record consolidated first quarter sales, it expects net income for the first quarter of 1998 to fall below net income for the comparable 1997 period by approximately $0.06 - $0.09 per share prior to the above pre-tax restructuring charge. For the 1997 first quarter American Safety Razor Company reported earnings per share of $0.21 on sales of $63.1 million and for the full year 1997 earnings of $1.25 per share on sales of $296.6 million. First quarter 1998 EBITDA is expected to fall below 1997 by approximately $1.0 to $1.5 million to $8.3 to $8.8 million. For the full year 1997, the Company reported EBITDA of $48.0 million.

The Company expects sales of shaving razors and blades to be flat to slightly down from the 1997 first quarter due to a slowdown in sales of branded shaving blades and razors due in part to heavy promotional activity by certain of the Company's competitors, delays in retailers' modifications in Plan-o-grams due to the anticipated launch of a new product by a competitor, and weakness in the Company's developing Asian markets. The Company's shaving razors and blades were also adversely affected by: margin pressure stemming in part from the effect of the strong dollar on the Company's international operations; increased sales of handles and systems, which generally carry lower margins; and other mix issues.

Notwithstanding the softness in the Company's shaving blades and razors, for the most part, the Company's cotton, industrial, soap and medical product lines are on plan. In addition, the Company is increasing manufacturing capacity for its MBC(TM) shaving products as well as the level of promotional support for its traditional shaving product lines. The Company is also accelerating the launch of its new upscale packaging and the introduction of its new long handle disposable razor, Premier Comfort(TM). The Company plans to announce its actual first quarter financial results in late-April.

Mr. Weathersby stated, "While the first quarter is not meeting our expectations, we believe the Company's fundamentals remain solid and anticipate achieving our business plan for the balance of the year."

This press release contains forward-looking statements relating to future results of the Company. Such forward-looking statements are identified by use of forward-looking words such as "anticipates", "believes", "plans", "estimates", "expects", and "intends" or words or phrases of similar expression. These forward-looking statements are subject to various assumptions, risks and uncertainties, including but not limited to, changes in political and economic conditions, demand for the Company's products, acceptance of new products, technology developments affecting the Company's products and to those discussed in the Company's filings with the Securities and Exchange Commission. Accordingly, actual results could differ materially from those contemplated by the forward-looking statements.

American Safety Razor Company is the leading manufacturer of private-brand and value-priced shaving blades and razors in the United States. The Company's shaving blade and razor products are sold under retailers' private-brand names as well as American Safety Razor's own brands: Personna(R), Gem(R), Flicker(R), Legmate(R), Bump Fighter(R), Treet(R), GEM Blue Star(R), Pal(R), MBC(TM), and Burma Shave(TM). The Company also manufactures and distributes a female shaving system under the Revlon(R) brand licensed from Revlon and sold under the Perfect Finish(TM). The Company also manufactures cotton swabs, cotton balls and puffs, and foot care items which are sold under retailers' private-brand names as well as its own value-priced brands, Megas(R), ACCO(R), and Crystal(R). The Company is also a leading manufacturer of premium and value-priced blades and bladed hand tools, sold primarily under the Personna(R), American Line(TM), and Ardell brand names, as well as bar soaps for the cosmetic/skin care, pharmaceutical, and department store markets. In addition to its consumer products, American Safety Razor manufactures and markets industrial and specialty and medical blades.

CONTACT: SM Berger & Company

Stan Berger, 216/464-6400