Bush Boake Allen Reports Fourth Quarter Earnings of $.48 a Share, a 30% Increase, Including a Non-Recurring Gain of $.12 a Share.

MONTVALE, N.J.--(BUSINESS WIRE)--January 19, 1999--Bush Boake Allen Inc. (NYSE: BOA) reported today that fourth quarter earnings increased 30% to $.48 a share compared to $.37 a share earned in the fourth quarter of 1997.

Net income for the fourth quarter amounted to $9.2 million and included a non-recurring gain of $2.3 million from the sale of a parcel of land and tenanted buildings adjacent to the company's Walthamstow, England site. Net sales for the fourth quarter were $123.4 million, essentially level with the prior year's fourth quarter net sales of $123.9 million.

For the year, Bush Boake Allen earned $1.75 a share compared to $1.61 a share in 1997. Net income in 1998 was $33.7 million compared to $31 million in 1997. Net sales for 1998 declined 1% to $485.4 million. Income from company operations advanced 7.8% to $56.8 million.

"Adverse currency exchange continued to have a significant impact on the company's results in 1998," commented Julian W. Boyden, Bush Boake Allen's chairman, President and Chief Executive Officer. "Currency exchange penalized our sales, as reported in U.S. Dollars, by 5% in the fourth quarter and 6% for the full year. Nevertheless, with a few exceptions we continue to see healthy underlying demand for flavors and fragrances in most of our markets."

In the Americas, sales were strong through the year and operating income advanced solidly spurred by double digit growth in the company's U.S. seasonings and fragrance businesses.

In the Europe Region, despite strong sales in UK fragrances and natural products, overall regional sales for the year were off a modest 1%. Operating income declined more significantly due, in part, to heightened competitiveness on the European continent, unfavorable product mix and a ripple effect from the devaluation of the Russian Ruble. That event also contributed to dampening results in BBA's International Region as many consumer products manufacturers in Eastern Europe and Turkey also export their products into Russia.

Notwithstanding generally weak economic conditions throughout the Asia Pacific Region, several of BBA's operating units registered encouraging results. Sales in China, where BBA has opened a new plant, increased more than 20% during 1998 with a considerable improvement in financial performance. Growth in Australia, New Zealand and the Philippines was also tempered by adverse monetary exchange, but sales in local currencies advanced strongly in all three countries suggesting that market demand for flavors and fragrances remains sound. However, in the face of continued, widespread economic uncertainty in Asia, the Region's overall sales and operating income declined.

Worldwide markets exhibited healthy demand for the company's aroma chemicals during the year but the environment was intensely competitive. Sales of BBA aroma chemicals rose modestly in the fourth quarter and were essentially level with the prior year for all of 1998. Aroma chemical operating income advanced strongly in the fourth quarter and for the year, helped by product mix and recent investments for greater efficiency.

Summing up the year, Mr. Boyden went on to say that "1998 has certainly not been lacking in economic surprises in many areas of the world. Nevertheless, we are encouraged by BBA's continued strong growth in the United States and the fact that demand for flavors and fragrances is still clearly evident in most of our markets around the world. That is reflected in the company's record operating income of $56.8 million, an increase of 7.8% in a very difficult operating environment."

Bush Boake Allen Inc., which conducts operations on six continents, has locations in 39 countries worldwide. The company supplies flavors and fragrances to the world's leading consumer products companies for use in foods, beverages, soaps and detergents, cosmetics, toiletries, personal care items and related products. Its aroma chemicals, natural extracts and essential oils serve as raw materials for a wide range of compounded flavors and fragrances.

Statements in this press release, which are not historical, are forward-looking statements that are subject to risks and uncertainties which could cause actual results to differ materially. Such risks and uncertainties with respect to Bush Boake Allen's business include general economic conditions, customers changing flavor and/or fragrance formulations, pricing and availability of raw materials and/or disruption to operations from year 2000 issues, and political and economic uncertainties, including currency fluctuations in the many countries in which we operate. -0-

                         BUSH BOAKE ALLEN INC.
               Comparative Summary of Income (Unaudited)

                            Fourth Quarter Ended December 25,  Percent
                                    1998         1997          Change
                                ------------ ------------      -------
Net Sales                       $123,356,000 $123,897,000       (0.4)%

Income from operations            12,913,000   12,713,000        1.6

Income before taxes               13,357,000   10,424,000       28.1

Net income                        $9,224,000   $7,163,000       28.8

Earnings per share:

  - Basic                              $0.48(a)     $0.37       29.7
  - Diluted                            $0.48(a)     $0.37       29.7

Weighted average shares
 outstanding:

  - Basic                         19,283,462   19,258,042
  - Diluted                       19,401,626   19,452,556


                                 Year Ended December 25,      Percent
                                    1998         1997          Change
                                ------------ ------------     -------
Net Sales                       $485,374,000 $490,585,000      (1.1)%

Income from operations            56,844,000   52,737,000       7.8

Income before taxes               50,666,000   46,300,000       9.4

Net income                       $33,692,000  $30,981,000       8.8

Earnings per share:

  - Basic                              $1.75(a)     $1.61       8.7
  - Diluted                            $1.74(a)     $1.60       8.8

Weighted average shares
 outstanding:

  - Basic                         19,279,028   19,237,909
  - Diluted                       19,405,569   19,418,277

(a)  Includes a non-recurring net gain of $.12 per share from the sale
     of property in Walthamstow, UK.