Bush Boake Allen Reports Third Quarter Earnings of $.42 a Share; Operating Income Advances 17%.

MONTVALE, NJ--(BUSINESS WIRE)--October 16, 1998--Bush Boake Allen Inc. (NYSE:BOA) has announced third quarter earnings of $.42 a share, level with the $.42 earned in the third quarter of 1997. Net sales, which continue to be affected by adverse currency exchange, declined modestly to $121.5 million from 1997's third quarter sales of $122.6 million.

For the first nine months of 1998, the company earned $1.27 per share compared to $1.24 in 1997, a 2.4% increase. Operating income for the period also advanced, rising 10% to $44 million. Net sales through September of 1998 amounted to $362 million, a 1.3% decline from 1997's sales of $366.7 million.

In reviewing the company's performance, Julian W. Boyden, Bush Boake Allen's chairman, president and chief executive officer, noted that "we are seeing essentially healthy sales and volume in most of BBA's markets when measured in local currencies. This indicates to us that the fundamental, underlying demand for our products is still evident. However, financial turmoil in some areas and unfavorable currency exchange are having a significant, negative impact on our business."

"For example, despite the company's continued efforts at minimizing currency exposure, the sudden devaluation of the Russian Ruble resulted in the company registering a pre-tax, foreign exchange loss of approximately $1.6 million in the third quarter. This equates to $.05 a share at the bottom line. Moreover, apart from adverse foreign exchange which penalized BBA's sales approximately 7% and operating income approximately 5% in the first nine months, currency imbalance has made pricing in local markets much more difficult."

In the Asia Pacific Region, sales were down significantly for the period in spite of encouraging growth in the company's China operations. Sales in the International Region were also down as Turkey, Africa and Eastern Europe were weaker.

In Europe, the strong Pound Sterling continued to contribute to a highly competitive environment on the European continent, although sales in Spain were strong through the first nine months.

In the Americas Region, sales in the United States and Canada were solid across all product lines. BBA's operations in Latin America and Jamaica were weaker however as that region continued to face economic and financial uncertainty.

In the company's global, aroma chemical business prices for turpentine declined significantly during the period suggesting that turpentine prices have peaked for this important aroma chemical raw material. External sales of BBA's aroma chemicals were relatively flat during the first nine months and markets remained highly competitive. The company's results were helped, in part, by a $1.3 million price adjustment for material supplied under the provisions of a long-term contract.

Mr. Boyden concluded his remarks on the company's performance by saying, " All-in-all, Bush Boake Allen is weathering some of the most turbulent market conditions our industry has seen in decades. In spite of this environment, the company has continued to make progress in strengthening our fundamental position and in our ability to effectively serve our customers worldwide." 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)

                     Third Quarter Ended September 25,  Percent
                            1998            1997        Change

Net Sales               $121,481,000    $122,577,000     (0.9) %

Income from operations    15,745,000      13,477,000     16.8

Income before taxes       12,656,000      11,710,000      8.1

Net income                $8,096,000      $8,105,000     (0.1)

Earnings per share:
              - Basic          $0.42          $0.42       -
              - Diluted        $0.42          $0.42       -

Weighted average
 shares outstanding:
              - Basic     19,282,439    19,243,497
              - Diluted   19,401,027    19,480,313

                       Nine Months Ended September 25,   Percent
                            1998            1997         Change
Net Sales               $362,018,000   $366,688,000      (1.3) %

Income from operations    43,931,000     40,024,000       9.8

Income before taxes       37,309,000     35,876,000       4.0

Net income               $24,468,000    $23,818,000       2.7

Earnings per share:
              - Basic          $1.27         $1.24        2.4
              - Diluted        $1.26         $1.23        2.4

Weighted average
 shares outstanding:
              - Basic     19,277,555   19,231,223
              - Diluted   19,399,881   19,410,425