American Safety Razor Company Announces 1999 Fourth-Quarter and Full Year Financial Results.

Business Editors

CEDAR KNOLLS, N.J.--(BUSINESS WIRE)--March 27, 2000

American Safety Razor Company today announced financial results for the 1999 fourth quarter and full year ended December 31, 1999.

The financial results for the twelve month period ended December 31, 1999 include the American Safety Razor Company prior to the acquisition (the "Predecessor") by RSA Acquisition Corporation, an affiliate of J.W. Childs Equity Partners II, L.P. (the "Acquisition"), and the American Safety Razor Company after the Acquisition.

Net sales for the 1999 fourth quarter were $81.1 million, up 5.3% from $77.1 million for the same period last year. Net income during the 1999 fourth quarter was $1.8 million, compared with the prior year's net income of $3.5 million. Net income for the 1999 fourth quarter was penalized by increased amortization expense of $0.2 million, net of taxes, and interest expense of $1.0 million, net of taxes, resulting from the Acquisition. Earnings for the 1998 fourth quarter were $3.2 million, excluding special charges and the results of a favorable tax settlement. EBITDA for the 1999 fourth quarter increased 13.2% to $12.9 million, from last year's $11.4 million (excluding the special charge).

The sales increase in the 1999 fourth quarter occurred primarily from improved business in the Company's international shaving, medical and soap operations. The Company's domestic shaving and cotton products businesses experienced modest sales growth. Sales from the Company's industrial products were below those of the year-ago fourth quarter.

For the full year, net sales were up 5.8% to $314.8 million from 1998's $297.5 million. In 1999, a loss of $8.3 million was recorded before an extraordinary item of $0.7 million, after taxes, for the write-off of deferred loan fees and a prepayment premium. For 1998, the Company recorded net income of $10.1 million. EBITDA for 1999 was $47.8 million, up 14.9% from 1998's $41.6 million. The EBITDA excluded $20.8 million of fees and expenses and purchase accounting adjustments for inventory incurred in connection with the Acquisition in 1999 and the 1998 special charges of $3.0 million for the closing and consolidation of facilities and termination of a license agreement and certain personnel changes.

The sales increase for the full year occurred primarily from improved business in the Company's domestic and international shaving, medical and soap operations. The Company's industrial products business experienced modest sales growth. Sales from the Company's cotton products business were below those of the prior year.

This press release may contain 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 high-quality, value-priced shaving products sold in the United States and internationally. The Company's consumer shaving products are marketed under most major domestic and international retailers' private brand names as well as American Safety Razor's own brands: Personna(R), Acti-Flexx(R), MBC(TM), Tri-Flexxx(TM), Gem(R), Flicker(R), Bump Fighter(R), and Burma Shave(R). In addition, ASR manufactures and markets industrial, specialty and medical blades for private brands and under the Personna(R), ASR(R), Ardell(TM), and American Line(TM) brands. ASR also manufactures cotton swabs, cotton balls, cosmetic puffs and foot care items which are also sold under retailers' private brand names as well as its own brands such as Megas(TM), Crystal(R), and ACCO(TM). ASR's Hewitt Soap Division manufactures premium-quality custom bar soaps for cosmetic/skin care, pharmaceutical and department store markets.

Founded in 1875, American Safety Razor Company is headquartered in New Jersey with manufacturing facilities in Virginia, Tennessee, Ohio, Missouri, Indiana, Connecticut, Puerto Rico, Mexico and Israel.

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

                          Three Months Ended       Twelve Months Ended
                                December 31,              December 31,
                          1999           1998      1999 (1)       1998
                         ------         -----     ---------      -----

Net sales               $81,137        $77,055     $314,750   $297,488
Cost of sales:
 Cost of sales           53,390         51,755      205,008    201,978
 Purchase accounting
  adjustment to
  inventory                  -             -          9,008         -

 Gross profit            27,747         25,300      100,734     95,510

Selling, general and
 administrative
 expenses                18,154         16,399       73,996     63,516
Amortization of
 intangibles                993            647        4,013      2,543
Special charges              -           2,000           -       3,003
Transaction expenses         -              -        11,440         -

 Operating income         8,600          6,254       11,285     26,448

Interest expense          4,626          2,997       19,019     12,270

 Income (loss) before
  income taxes and
  extraordinary item      3,974          3,257       (7,734)    14,178

Income taxes (benefit)    2,155           (260)         611      4,076

 Income (loss) before
 extraordinary item       1,819          3,517       (8,345)    10,102

Extraordinary item, net
 of income tax benefit       -              -           729         -

Net income (loss)        $1,819         $3,517      $(9,074)   $10,102

Basic earnings per share:
  Income (loss) before
   extraordinary item    $ 0.15         $ 0.29      $ (0.69)   $  0.83
  Extraordinary item         -              -       $ (0.06)        -

 Net income (loss)       $ 0.15         $ 0.29      $ (0.75)   $  0.83

 Weighted average
  shares outstanding     12,110         12,110       12,110     12,107

Diluted earnings per share:
 Income (loss) before
  extraordinary item     $ 0.15         $ 0.29      $ (0.69)   $  0.83
 Extraordinary item          -              -       $ (0.06)        -

 Net income              $ 0.15         $ 0.29      $ (0.75)   $  0.83

 Weighted average
  shares outstanding     12,110         12,152       12,138     12,223

Note (1): Results reflect combined results of American Safety Razor Company prior to its Acquisition (the "Predecessor") by an affiliate of J.W. Childs and the American Safety Razor Company after its Acquisition by J.W. Childs.