Church & Dwight EPS Rose 23% to $0.32 Per Share Excluding Unusual Items; Sales Increased 32% to $256.5 Million Including New Laundry Venture.

Business Editors

PRINCETON, N.J.--(BUSINESS WIRE)--April 27, 2001

Church & Dwight Co., Inc. (NYSE:CHD) today reported first quarter net income of $12.1 million or $0.30 per diluted share compared to $11.7 million or $0.29 per share in the same period last year. The Company fully consolidated the results of its new ARMUS joint venture with USA Detergents, Inc. (NASDAQ:USAD) of which it has majority control, showing USAD's share as a minority interest.

This year's first quarter results included $1.4 million in previously announced plant and warehouse shutdown costs related to the start-up of the ARMUS venture, which became operational on January 1, 2001. Last year's first quarter results included a deferred compensation gain of $2.1 million which the Company had previously excluded in reporting ongoing earnings. Adjusting for these unusual items, earnings increased 23% to $0.32 per share from $0.26 per share in the same quarter last year.

Sales increased 32.3% to $256.5 million from $193.9 million in the same period last year. Consumer products rose 37.3% primarily because of the addition of USAD's XTRA(R) Laundry Detergent and NICE'N FLUFFY(R) Liquid Fabric Softener brands. Deodorizers increased due to continued growth in cat litter; however, personal care sales declined. Specialty products increased 12.2% due to growth in animal nutrition and international operations.

Robert A. Davies, III, Chairman and Chief Executive Officer of Church & Dwight, commented, "We are pleased with our first quarter results particularly in view of all the start-up costs associated with the new laundry venture. With the closure of our Syracuse plant in March, and the consolidation of our warehouse operations on track for completion by year-end, we expect a steady improvement in the profitability of our laundry and other household products business over the next few quarters."

On April 2, Church & Dwight and USAD announced that they had entered into a definitive agreement under which Church & Dwight will acquire USAD, its partner in the ARMUS venture, for $7 per share in an all-cash transaction. Church & Dwight estimates the total transaction cost, including the assumption of debt, at $120 million, which brings the Company's total investment in USAD, including previous stock purchases, to $135 million. The Company filed a formal tender offer on April 12 and, subject to regulatory approval and other customary conditions, expects the transaction to close later this quarter.

As expected, the consolidation of the lower-margin USAD brands affects the Company's entire margin structure. In particular, the combination will substantially reduce the Company's gross margin and, as an offset, also reduce marketing and SG&A spending as a percentage of sales. In the first quarter, the net effect was to reduce the Company's operating profit margin by approximately one margin point. This is before the Company realizes most of the manufacturing and distribution efficiencies from the venture. The Company believes that the synergies and other actions it plans to take will enable it to restore the operating profit margin to its previous level within about twelve months, on significantly higher volumes.

The Company also took some important product initiatives during the quarter. Early in 2001, as previously announced, the Company introduced a classic half-cup ARM & HAMMER(R) Liquid Laundry Detergent to be sold in selected high-development liquid markets. The Company also introduced ARM & HAMMER Advance White(TM) Gum, a companion product to the highly successful ARM & HAMMER Advance White(TM) Toothpaste; and ARM & HAMMER Vacuum Free(TM) Foam Carpet Deodorizer, a quick remedy for freshening carpets between vacuum clean-ups. These products should reach broad national distribution in the second quarter.

Mr. Davies added, "We have a number of major product initiatives planned for the second and third quarters as well as an increase in marketing support for the products launched earlier in the year. In spite of this high level activity, we reiterate our previously stated objective which is to deliver a solid earnings gain for the year, with EPS in the $1.28 to $1.30 range before unusual items."

Church & Dwight will host a conference call to discuss first quarter 2001 earnings with the investment community on April 27 at 9:00 a.m. (ET). To listen, please visit the Investor Relations section of the Company's web site at www.churchdwight.com or dial in at 888-745-2832. A replay will be available shortly after the call through April 28. The replay number is 800-642-1687, access code 685981. In addition, the replay can be heard at www.churchdwight.com.

                       Church & Dwight Co., Inc.
                          Product Line Sales
                       1st Quarter 2001 vs. 2000


                                  2001                      2000
                             --------------            --------------

Oral & Personal Care         $      36,779             $      41,570
Deodorizing & Cleaners       $      58,498             $      55,719
Laundry Products             $     118,087             $      58,163
                             --------------            --------------

Total A&H                    $     213,364             $     155,452

Specialty Chemicals          $      29,330             $      26,695
Animal Nutrition             $      17,805             $      15,841
Specialty Cleaners           $       2,195             $       2,236
                             --------------            --------------

Total Specialty Products     $      49,330             $      44,772
                             --------------            --------------

Total Internal Sales         $     262,694             $     200,224

Unconsolidated Affiliates    $      (6,167)            $      (6,285)
                             --------------            --------------

Total External Sales         $     256,527             $     193,939
                             ==============            ==============

Church & Dwight Co., Inc. is the manufacturer of ARM & HAMMER consumer and specialty products.

This release contains forward-looking statements relating, among others, to financial objectives, sales growth and cost improvement programs. Many of these statements depend on factors outside the Company's control, such as economic conditions, market growth and consumer demand, competitive products and pricing, raw material costs and other matters. With regard to new product introductions, there is particular uncertainty related to trade, competitive and consumer reactions. If the Company's assumptions are incorrect, or there is a significant change in some of these key factors, the Company's performance could vary materially from the forward-looking statements in this Report.

CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)

                                                   Three Months Ended
----------------------------------------------------------------------
(In thousands, except per share data)              Mar. 30,  Mar. 31,
                                                      2001      2000
======================================================================
Net Sales                                          $256,527  $193,939
Cost of sales                                       162,429   109,462
----------------------------------------------------------------------
Gross Profit                                         94,098    84,477
Advertising, consumer and trade promotion expenses   46,133    44,464
Selling, general and administrative expenses         27,013    21,349
----------------------------------------------------------------------
Income from Operations                               20,952    18,664
Equity in earnings of affiliates                      1,032       854
Other income (expense), net                          (1,268)     (808)
----------------------------------------------------------------------
Income before minority interest and taxes            20,716    18,710
Minority interest                                     1,984        55
----------------------------------------------------------------------
Income before taxes                                  18,732    18,655
Income taxes                                          6,585     6,923
----------------------------------------------------------------------
Net Income                                        $  12,147 $  11,732
======================================================================
Net Income Per Share - Basic                          $0.32     $0.30
Net Income Per Share - Diluted                        $0.30     $0.29
Dividends Per Share                                   $0.07     $0.07
----------------------------------------------------------------------
Weighted average shares outstanding - Basic          38,538    38,679
Weighted average shares outstanding - Diluted        40,333    40,449
======================================================================


CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)                             Mar. 30,  Mar. 31,
                                                      2001      2000
----------------------------------------------------------------------
Assets
======================================================================
Current Assets
Cash, equivalents and securities                  $  20,768 $  19,715
Accounts receivable                                  85,205    65,775
Inventories                                          58,296    77,855
Other current assets                                 18,498    15,283
----------------------------------------------------------------------
Total Current Assets                                182,767   178,628
----------------------------------------------------------------------
Property, Plant and Equipment (Net)                 169,399   183,759
Note Receivable                                           -     3,000
Equity Investment in Affiliates                      19,781    20,888
Intangibles and other assets                        113,387    98,729
----------------------------------------------------------------------
Total Assets                                       $485,334  $485,004
======================================================================

Liabilities and Stockholders' Equity
----------------------------------------------------------------------
Current Liabilities                                $158,336  $162,260
Long-Term Debt                                       19,749    47,930
Other Long-Term Liabilities                          55,268    50,882
Stockholders' Equity                                251,981   223,932
----------------------------------------------------------------------
Total Liabilities and Stockholders' Equity         $485,334  $485,004
======================================================================

CHURCH & DWIGHT CO., INC. DECLARES 401st REGULAR QUARTERLY DIVIDEND

PRINCETON, N.J.--April 27, 2001--Church & Dwight Co., Inc. (NYSE:CHD), manufacturer of ARM & HAMMER(R) consumer and specialty products, today reported that the Board of Directors declared a regular quarterly dividend of 7 cents per share. This dividend will be payable June 1, 2001 to stockholders of record at the close of business on May 11, 2001. This is the Company's 401st regular quarterly dividend.