American Safety Razor Company Announces 1999 Second-Quarter and First-Half Financial Results.

VERONA, Va.--(BUSINESS WIRE)--Aug. 4, 1999--

American Safety Razor Company today announced financial results for the second quarter and six months ended June 30, 1999. Results are combined for the American Safety Razor Company prior to its 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 second quarter were $77.2 million, up 4.7% from $73.8 million for the 1998 second quarter. Loss before an extraordinary item during the 1999 second quarter was $13.4 million as compared to 1998's second-quarter net income of $2.1 million. Second-quarter EBITDA, adjusted to exclude $20.4 million of fees and expenses and purchase accounting adjustments relating to inventory incurred in connection with the Acquisition, was $12.1 million versus $9.5 million for the second quarter of 1998, an increase of 27.4%. During the second quarter, the Company recorded an extraordinary item of $0.7 million, after taxes, relating to the early retirement of debt.

The increase in sales was due primarily to higher sales in the Company's domestic shaving and industrial products businesses. The Company's international shaving, soap and medical products businesses experienced modest growth in sales while sales of the Company's cotton products were below those of the year-ago period.

For the first half of 1999, net sales rose to $147.5 million from $140.3 million for the first six months of 1998. Loss before an extraordinary item during the first half was $11.4 million as compared to 1998 first-half net income of $2.9 million. Adjusted to exclude the $20.4 million of fees and expenses and purchase accounting adjustments relating to inventory incurred in connection with the Acquisition in 1999 and a 1998 first-quarter restructuring charge of $1.0 million related to the closing and consolidation of facilities in 1998, EBITDA in the first half of 1999 was $21.6 million, up 21% from the $17.9 million reported for the 1998 first half.

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 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 the Shenandoah Valley of Virginia and has manufacturing facilities in Virginia, Tennessee, Ohio, Missouri, Indiana, Connecticut, Puerto Rico, Mexico and Israel.

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

                                 Three Months       Six Months
                                     Ended             Ended
                                 June 30, (1)      June 30, (1)
                                ----------------  ----------------
                                 1999     1998     1999     1998
                                -------  -------  -------  -------

Net sales                      $77,246  $73,751 $147,533 $140,262
Cost of sales:
   Other costs                  49,876   49,951   96,705   96,954
   Purchase accounting
    adjustment to inventory      9,008        -    9,008        -
                                -------  -------  -------  -------

   Gross profit                 18,362   23,800   41,820   43,308

Selling, general and
 administrative expenses        18,052   16,590   34,559   30,111
Amortization of intangibles      1,107      633    1,754    1,264
Special charge                       -        -        -    1,003
Transaction expenses            11,440        -   11,440        -
                                -------  -------  -------  -------

   Operating income (loss)     (12,237)   6,577   (5,933)  10,930

Interest expense                 4,849    3,104    7,879    6,149
                                -------  -------  -------  -------

   Income (loss) before income
     taxes and extraordinary
     item                      (17,086)   3,473  (13,812)   4,781

Income taxes (benefit)          (3,689)   1,379   (2,389)   1,898
                                -------  -------  -------  -------

   Income (loss) before
     extraordinary item        (13,397)   2,094  (11,423)   2,883

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

Net income  (loss)            $(14,126)  $2,094 $(12,152)  $2,883

Basic earnings per share:
   Income (loss) before
    extraordinary item          $(1.11)   $0.17   $(0.94)   $0.24
   Extraordinary item            (0.06)       -    (0.06)       -
                                -------  -------  -------  -------

   Net income (loss)            $(1.17)   $0.17   $(1.00)    $0.24

   Weighted average shares
    outstanding                 12,110    12,107   12,110   12,105

Diluted earnings per share:
   Income (loss) before
     extraordinary item         $(1.10)    $0.17   $(0.94)   $0.23
   Extraordinary item            (0.06)        -    (0.06)       -
                                -------  -------  -------  -------

   Net income (loss)            $(1.16)    $0.17   $(1.00)   $0.23

   Weighted average shares
     outstanding                12,143    12,234   12,166   12,285

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