American Safety Razor Announces Record Financial Performance for 1997.

VERONA, Va.--(BUSINESS WIRE)--Feb. 12, 1998--American Safety Razor Company (NASDAQ:RAZR) today announced record financial results for the fourth quarter and year ended December 31, 1997. Net sales, net income, and basic earnings per share showed strong improvement over the fourth quarter and the year ended December 31, 1996, each setting a new record for the Company.

Net income for the fourth quarter of 1997 set a new fourth quarter record increasing 18% to $4.7 million, or $0.39 for basic earnings per share, compared with net income of $4.0 million, or $0.33 for basic earnings per share, for the fourth quarter of 1996. Net sales were $78.8 million, up $11.5 million, or 17%, from $67.3 million for the same period a year ago. Operating income rose 13% to $10.5 million from $9.3 million for the corresponding quarter last year. EBITDA for the 1997 fourth quarter increased $1.3 million, or 11%, to $13.4 million from $12.1 million in the 1996 fourth quarter.

"We are pleased to show continuing improvement in net sales and net income despite the dollar's relative strength in international markets, which negatively impacted sales by approximately $0.5 million due to unfavorable exchange rates," commented William C. Weathersby, President and Chief Operating Officer of American Safety Razor. "Strong sales of the Company's domestic branded and private brands shaving products, industrial products and cotton products primarily drove fourth quarter sales growth. Cotton products sales benefited from the continuing integration of the Cotton division of American White Cross, acquired in April 1997."

Net income for 1997 reached a new high, rising 14% to $15.1 million, or $1.25 for basic earnings per share, compared with net income of $13.2 million, or $1.09 for basic earnings per share, for the same period in 1996. Net sales rose $36.0 million, or 14%, to $296.6 million from $260.6 million for the same period in 1996. Operating income increased 11% to $36.9 million from $33.3 million for the comparable period in 1996. EBITDA for 1997 was $48.0 million, an increase of $4.1 million, or 9%, over EBITDA of $43.9 million in 1996.

All product areas contributed to the Company's sales growth for the year. Sales of private brands and international shaving products, industrial products and cotton products primarily drove 1997 sales growth. For the year sales were negatively impacted approximately $1.6 million from unfavorable exchange rates. The Company commented that it was pleased with the progress of the integration of the Cotton division of American White Cross and the expansion of its cotton operations into Mexico.

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(TM) 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. -0-

                   AMERICAN SAFETY RAZOR COMPANY
       CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                 (In thousands, except share data)

                          Three Months Ended   Twelve Months Ended
                            December 31,           December 31,

                          1997       1996        1997         1996

Net sales               $78,760    $67,262     $296,607    $260,636
Cost of sales            51,682     43,507      196,991     169,949

    Gross profit         27,078     23,755       99,616      90,687
Selling, general
 and administrative
 expenses                15,933     13,756       60,206      54,867
Amortization of
 intangibles                646        687        2,501       2,503

    Operating income     10,499      9,312       36,909      33,317
Interest expense          3,079      2,812       12,270      11,719

    Income before income
     taxes                7,420      6,500       24,639      21,598
Income taxes              2,728      2,536        9,570       8,425

    Net income          $ 4,692    $ 3,964     $ 15,069    $ 13,173

Basic earnings per share:

  Net income            $  0.39    $  0.33     $   1.25    $   1.09

  Weighted average shares
    outstanding          12,098     12,093       12,094      12,093

Diluted earnings per share:
  Net income            $  0.38    $  0.33     $   1.23    $   1.09

  Weighted average shares
    outstanding          12,293     12,179       12,255      12,139

CONTACT: SM Berger & Company

Stan Berger or Brian Vogel, 216/464-6400