Clorox Reports 14 Percent EPS Growth in Third Quarter.

Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--April 27, 2000

The Clorox Company (NYSE, PE:CLX) today announced a 14 percent increase in earnings per share for its fiscal third quarter ended March 31, 2000. Contributing to the strong quarterly results were a full pipeline of successful new home care and laundry products; operating cost savings resulting from integration of businesses acquired from First Brands Corporation in 1999; and sales and volume growth across all of the company's major international markets. Other milestones during the quarter were the introduction of the first new Glad products since Clorox acquired that business last year, and consolidation in the company's logistics and manufacturing networks.

Net earnings for the quarter were $114 million, or 48 cents per diluted share, before merger-related and other one-time charges. This compares with earnings of $101 million, or 42 cents per diluted share, before one-time charges, in the third quarter of 1999. Sales for the quarter increased by 4 percent to $1.03 billion, from $992 million in the prior-year quarter; unit volumes grew by 5 percent.

"We're very pleased with not only our bottom-line performance, but also the number of significant, business-building initiatives we successfully tackled during the quarter," said Clorox Chairman and CEO Craig Sullivan. "Our people executed superbly to offer an exciting array of new products in several store aisles, and we're delighted with the consumer response to date. We're also on track to fully achieve the original target of $90 million in annual savings we estimated at the time of the First Brands merger. And we took significant steps to build our business in Latin America, a region we have targeted for long-term growth."

A summary of key results by business segment follows:

U.S. Household Products and Canada

Volumes in this segment grew by 11 percent over the prior-year quarter, led by products launched during the quarter or earlier in the fiscal year. Clorox Disinfecting Spray, introduced last fall, continued to gain sales momentum. Capitalizing on this success, the company introduced Clorox Disinfecting Wipes in January; shipments to date have put it on a pace to be one of the company's most successful product launches ever. Liquid-Plumr Foaming Pipe Snake, also introduced last fall, has consolidated the company's No. 1 position in the drain cleaner category.

Also contributing to segment growth was Ultra Clorox liquid bleach, featuring an improved whitening formula, which was introduced across the western United States during the quarter. The company also launched Dry Clorox bleach, the only powdered bleach for laundry whites available in the United States; and a Clorox FreshCare product for spot cleaning and refreshing dry-clean-only garments. Additionally, the company's Canada volumes rose compared to the prior-year quarter on strong gains in auto appearance products and record shipments of soap pads and Glad disposal bags.

U.S. Specialty Products

Volumes were flat in this segment, compared with the prior-year quarter, as strong growth in certain product lines was offset by the company's continued, planned integration and rationalization of the businesses it acquired from First Brands. For the Glad line of products, increases in shipments of branded bags, wraps and GladWare containers countered the effect of eliminating some low-margin private-label products. Five new Glad products were introduced late in the quarter, including two new GladWare items, Glad Stand & Zip food storage bags, and Glad Odor Shield trash bags.

Food products posted solid volume gains behind record shipments of Hidden Valley dressings, including a single-serving size launched in late 1999, and incremental volume from K C Masterpiece marinades, which were introduced during the quarter.

Cat litter shipments were negatively impacted by the company's elimination of inefficient trade spending on brands acquired from First Brands. Shipments of auto care products also declined, due to the shift of certain Armor All promotional activities into the fourth quarter and the company's on-going program to discontinue or license certain low-margin items in the STP product line it acquired last year. During the quarter, Clorox completed initiatives to bring in-house the manufacture of most Armor All products and scoopable cat litter, improving operating efficiency and lowering costs.

International

All of the company's international regions contributed to a 7 percent volume increase in this segment during the third quarter. In Latin America, strong demand for insecticides in Argentina, Clorox liquid bleach in Brazil and home cleaners in several countries led to record volumes for the quarter. The company moved its sales and distribution activities in-house in major markets, reducing operating costs and improving the speed of new product launches.

Clorox also announced the acquisition, late in the quarter, of Bon Bril S.A., the leading manufacturer and distributor of cleaning utensils and related products in Colombia, Venezuela and Peru. Bon Bril's major products include a full range of steel wool, fiber and cloth cleaning products, as well as liquid household cleaners.

"Bon Bril is an excellent strategic fit with Clorox in Latin America," Sullivan said. "It is a market leader on a strong growth curve, with products that closely align with our existing portfolio in the region."

In Australia and New Zealand, a cleaning gloves business acquired in mid-1999 and increased consumer demand for the company's bags, wraps and foils products contributed to volume growth in the quarter. Strong insecticide sales in Korea and Japan boosted Asia volumes in the quarter.

Looking ahead, Sullivan said: "We have an excellent portfolio of new and repositioned products, building on our core brand equities, to drive top-line growth. Our integration of the First Brands businesses continues to generate opportunities for margin improvement and sales growth. We are also placing greater focus on our international markets, in particular Latin America, to grow our margins and sales as we gain greater scale and adopt consistent global business practices."

The Clorox Company is a manufacturer and marketer of household products, both domestic and international, and products for institutional markets.

Except for historical information, matters discussed above, including statements about future growth or opportunities or realization of synergies, 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 ending June 30, 1999, as updated from time to time in the company's SEC filings. Those factors include, but are not limited to, marketplace conditions and events, the company's costs, risks inherent in litigation or international operations, the success of new products, integration of acquisitions, and environmental, regulatory and intellectual property matters.

Note: The company's third quarter conference call with the investment community will be broadcast live on the Internet beginning at 8:30 a.m. EDT on Thursday, April 27. An audio recording will also be available for seven days following the live call. For more information, visit the company's web site at www.clorox.com.

THE CLOROX COMPANY
STATEMENTS OF CONSOLIDATED EARNINGS
(In millions, except earnings per-share amounts)


                                            Unaudited
                             -----------------------------------------
                              Three Months Ended    Nine Months Ended
                             -------------------- --------------------
                              3/31/00    3/31/99    3/31/00    3/31/99
                             --------   --------   --------   --------

NET SALES                      $1,034       $992     $2,930     $2,904

Cost of products sold
 before restructuring             506        465      1,446      1,382
First Brands inventory
 write-off                         --          8         --          8
Total cost of products
 sold                             506        473      1,446      1,390
                             --------   --------   --------   --------
Gross Profit                      528        519      1,484      1,514

Selling, delivery
 and administration               190        195        564        588
Advertising                       119        124        345        361
Research and
 development                       15         15         44         44
Merger, integration,
 restructuring
 and asset impairment              13        100         21        100
Interest expense                   25         23         71         75
Other expense, net                  1         10         17         18
                             --------   --------   --------   --------

Earnings before
 income taxes                     165         52        422        328

Income taxes                       59         30        153        132
                             --------   --------   --------   --------
Net Earnings                     $106        $22       $269       $196
                             ========   ========   ========   ========

Earnings per common share
before restructuring
    Basic                       $0.48      $0.43      $1.19      $1.17
    Diluted                      0.48       0.42       1.18       1.14

Earnings per common share
 after restructuring
    Basic                       $0.45      $0.09      $1.14      $0.83
    Diluted                      0.44       0.09       1.12       0.82

Weighted Average Shares
 Outstanding (in thousands)
    Basic                     235,843    235,794    236,446    234,946
    Diluted                   238,848    240,440    239,894    239,590