Church & Dwight to Invest in Company Formed to Acquire Del Laboratories; 20% Interest to Cost $30 Million.

PRINCETON, NJ -- Church & Dwight Co., Inc. (NYSE:CHD) today announced that it has agreed to invest $30 million in a company formed by Kelso & Company, a private equity group, to acquire Del Laboratories, Inc. (AMEX:DLI), Uniondale, N.Y. Church & Dwight's investment will be substantially in the form of convertible preferred stock, and will represent about 20% of the equity financing. Kelso & Company, New York, will provide the remaining equity, with the participation of Del's existing management team.

Del, which reported 2003 sales of $386 million, operates in two business segments, cosmetics and over-the-counter pharmaceuticals. Del's major cosmetics brands include Sally Hansen(R), the leading nail care brand, LaCross(R) nail and beauty implements, and N.Y.C. New York Color(R) cosmetics. The company's major over-the-counter brand is Orajel(R), a line of oral care products with 2003 sales of approximately $50 million, which includes the leading adult toothache and baby teething products, a toddler's toothpaste and a range of cold sore and canker treatments.

As part of this transaction, Church & Dwight will have certain rights with respect to the Orajel brand, including an option to acquire the business after three years. In the event that Church & Dwight does not exercise this option, the company will have the right, subject to certain conditions, to convert its preferred stock into a 20% interest in the common stock of the new Del company.

Oral care is a core business for Church & Dwight which markets toothpaste, toothbrushes and oral care gum under the Arm & Hammer(R), Mentadent(R), Close-Up(R), Aim(R) and Pepsodent(R) brand names.

Robert A. Davies, III, Chairman, said, "Church & Dwight's main interest is in the Orajel brand. This move gives us a stake in a business that complements our current oral care product line and would, if we exercise our purchase option, add another powerful brand to the Church & Dwight portfolio."

The company expects the transaction to close in this year's fourth quarter subject to regulatory, financing and other customary conditions. The transaction is not expected to have a material effect on earnings either in 2004 or 2005 calendar years.

Church & Dwight Co., Inc. manufactures and markets a wide range of personal care, household and specialty products, under the ARM & HAMMER brand name and other well-known trademarks.

This release contains forward-looking statements relating to, among others, the likelihood that the transaction will close and its anticipated effect on earnings in 2004 and 2005. These statements represent the intentions, plans, expectations and beliefs of Church & Dwight, and are subject to risks, uncertainties and other factors, many of which are outside the company's control and could cause actual results to differ materially from such forward-looking statements. The uncertainties include assumptions as to market growth and consumer demand (including the effect of political and economic events on consumer demand), raw material and energy prices, the financial condition of major customers, competitive and consumer reactions to the company's products and the products to be acquired from Del, regulatory matters and other factors described in Church & Dwight's quarterly and annual reports filed with the SEC.