Clorox Increases Quarterly Dividend by 23% and Authorizes Additional $700 Million in Share Repurchases; Henkel to Participate in Share Repurchase Program.

Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--July 16, 2003

The board of directors of The Clorox Company (NYSE:CLX)(PSE:CLX) today approved an increase of about 23 percent in the company's quarterly dividend rate. The quarterly cash dividend will be increased to 27 cents per share from 22 cents per share. The fourth-quarter dividend at the new rate will be payable Aug. 15, 2003, to stockholders of record on July 31, 2003.

The board of directors also authorized the company to increase its previously announced share repurchase program by an additional $700 million. When combined with funds remaining under the existing program, the additional amount authorized today brings the total funds available at this time for share repurchases to about $1 billion.

Separately, the board of directors approved an agreement between the company and HC Investments Inc. ("Henkel") that authorizes Clorox to repurchase up to $255 million in shares from Henkel over the next two years. Under terms of the agreement, the two companies will periodically establish price ranges for the repurchases. Henkel currently holds approximately 29 percent of the company's outstanding stock. Henkel's participation in the share repurchase program allows Clorox to continue the program while maintaining Henkel's stake in the company at about its current level.

"These actions are consistent with our objective of delivering top-tier shareholder value and building a long-term, stable shareholder base," said Clorox Chief Executive Officer Jerry Johnston. "We're delighted Clorox's strong free cash flow allows us to return cash to shareholders through a balance of strong dividends and share repurchases. At the same time, we expect our remaining cash flow to maintain Clorox's financial flexibility to make other investments."

Clorox had assumed the benefits of a continued share repurchase program when it first communicated its FY'04 earnings-per-share outlook on May 8, 2003, and when it last confirmed its outlook on June 19, 2003, during a conference call that was also webcast.

The Clorox Company

The Clorox Company is a leading manufacturer and marketer of consumer products with fiscal year 2002 revenues of $4.0 billion. Clorox markets some of consumers' most trusted and recognized brand names, including its namesake bleach and cleaning products, Armor All(R) and STP(R) auto care products, Fresh Step(R) and Scoop Away(R) cat litters, Kingsford(R) charcoal briquets, Hidden Valley(R) and K C Masterpiece(R) dressings and sauces, and Glad(R) bags, wraps and containers. With 9,500 employees worldwide, the company manufactures products in 25 countries and markets them in more than 100 countries. Founded in 1980, The Clorox Company Foundation has awarded grants totaling more than $51 million to nonprofit organizations, schools and colleges; and in fiscal 2002 made product donations valued at nearly $5 million. For more information about Clorox, visit the company's Web site at www.clorox.com.

Except for historical information, matters discussed above, including statements about future volume, sales and earnings growth, profitability, costs, cost savings or expectations, are forward-looking statements based on management's estimates, assumptions and projections. Important factors that could cause results to differ materially from management's expectations are described in "Forward-Looking Statements and Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the company's SEC Form 10-K for the year ended June 30, 2002, as updated from time to time in the company's SEC filings. Those factors include, but are not limited to, general economic and marketplace conditions and events; the company's costs, including the impact of world events on raw material costs and/or supply disruption; risks inherent in litigation and international operations; the success of new products; the company's ability to manage and obtain the benefits of joint venture activities; the success of information systems design and implementation; integration of acquisitions; and environmental, regulatory and intellectual property matters.