Bombril-Cirio Announces Results for the Second Quarter and Six Months Ended June 30, 1998.

SAO PAULO, Brazil--(BUSINESS WIRE)--August 26, 1998--The Bombril-Cirio Group (OTC: BMBBY US; BOVESPA: BOB4) today announced net profit of US$19.5 million for the second quarter of 1998, a 269.7% increase as compared to US$5.3 million recorded in the second quarter of 1997 (adjusted for price level changes in Brazil). Earnings per share were US$0.48 as compared to US$0.56 in the second quarter of 1997. Consolidated net revenues reached US$345.8 million, a 316.0% increase as compared to US$83.1 million recorded in the second quarter of 1997. The increase in net sales resulted from the acquisition of Italian-based Cirio SpA on July 24, 1997.

Consolidated net sales in the first half of 1998 reached US$648.0 million as compared with US$167.2 million in the first half of 1997. Of net sales for the first six months of this year, US$143.9 million was in the household cleaning area and US$504.1 million in the food area. Gross profit was relatively unchanged in the food area at 27% and in the household cleaning area at 47%.

In the food products area in Italy, market share in the first half of 1998 as compared to the same period in 1997 was as follows: no change in the tomato products share, remaining at 38%; a decline to 31% from 34% in canned vegetables; a decline to 11% from 13% in UHT market share; and an increase to 29% from 23% in fresh milk. In the household cleaning area, the Company registered an increase in market share in dishwashing liquids to 42% from 40%, to 27% from 23% in disinfectants, and to 18% from 15% in fabric softeners. In the other product categories, steel wool and scourers, the Company's market shares were unchanged at 91% and 71%, respectively.

As part of its strategy to expand its product lines, the Company launched a series of new products in the household cleaning area in June 1998 under the Bombril brand name. These products are multi-purpose and heavy-duty cleaners and synthetic sponges. In this area, the Company also launched a gel liquid detergent under the market leader Limpol brand. All products launched were positioned as premium products, based on their quality and their brands.

On July 29, 1998, the Company authorized its subsidiary, Cirio SpA, to purchase a controlling stake in the Del Monte Group as part of Bombril-Cirio's strategy to extend its geographic reach and expand its product line on a worldwide scale. The Del Monte acquisition will result in synergistic gains with Cirio SpA, as both companies operate in essentially the same markets, with different product categories and geographic reach.

Results for this quarter were positively influenced by two non-recurring items: (a) the sale of 60.4% of the Company's interest in S.S. Lazio SpA, in its Initial Public Offering in May on the Milan Stock Exchange which resulted in a capital gain of US$16.7 million; and (b) the sale in the first half of 1998 of warrants and shares of Cirio SpA, which resulted in a capital gain of US$15.9 million.

Bombril-Cirio S.A. is a Brazil-based multinational company that controls 75.1% of Cirio SpA. Bombril is a leading producer in Brazil of household consumer products with dominant positions in several cleaning products segments, especially in the steel wool and dishwashing liquid detergent sectors.

Cirio SpA is comprised of an international group of companies principally engaged in the manufacturing, marketing and distribution of internationally branded food products. Cirio is primarily focused on two product streams: dairy products and tomato and vegetable products (including vinegar), and also markets canned tuna, olive oil, pasta and wine. The Company is the largest fresh milk producer in Italy and leads the Italian market in tomato products and canned vegetables. Headquartered in Rome, Cirio employs 2,500 people. The Company's consolidated turnover in 1997 was Lit. 1.596 billion (US$970 million).

Del Monte Royal Foods Ltd. is the holding company of a group of companies engaged in the processing, marketing and distribution of high quality branded fruit products, beverages, dry mixed food products and confectionery. The group is a vertically integrated producer of canned pineapple and deciduous fruits, fruit beverages, tomato and specialty products. The Company's principal production facilities are located in the United Kingdom, Italy, Greece, the Philippines and South Africa. Headquartered in the U.K., Del Monte employs approximately 10,800 people world-wide. The consolidated turnover of Del Monte Royal Foods was approximately 3.4 billion South African rand (or US$576.5 million using an exchange rate of June 30, 1998) for the 13 months ended December 1997.

CONTACT: BOMBRIL

Edoardo Battista

CFO and Investor Relations Officer

Gustavo Poppe 

Investor Relations Manager

55-11-816-7877

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GEORGESON & Co., New York 

Peter Firestein

Teresa Tayas

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