Federal Court Rejects Vast Majority of Gillette Claims that Norelco's 1996 Advertisements for the Reflex Action Were False or Misleading.

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 16, 1998--

Only four Norelco Television Commercials Remain At Issue in

Two-Year Old Case

In a decision released on October 13, 1998, Judge Reginald Lindsay of the United States District Court for the District of Massachusetts dismissed the vast majority of the false advertising claims that The Gillette Company brought in its action, commenced in October 1996, challenging Norelco Consumer Products company's advertising for its innovative Reflex Action Razor. The Court's decision leaves for a possible trial of this action only Gillette's challenge to four of Norelco's television commercials for its Reflex Action, which feature highly exaggerated animated and mischievously behaving blade razors. Norelco has not run these four commercials since late 1997 and is now in the middle of a new advertising campaign for its Reflex Action and other electric razors.

In the Norelco advertising challenged by Gillette, Norelco advertised that the Reflex Action "shaves with less irritation than a blade." In its recent decision, the Court dismissed all of Gillette's claims that Norelco's television and print advertisements for the Reflex Action were literally false. In addition, the Court dismissed all of Gillette's claims challenging as misleading certain Norelco print advertisements, in which no visual of a blade is depicted, making the claim that the Reflex Action "shaves with less irritation than a blade." Finally, Judge Lindsay dismissed any claim that Norelco's "Razor Bites" television commercial was false or misleading. That commercial featured a fictional razor blade that snapped ferocious jaws, and ended with the tagline "anything closer could be too close for comfort." Yesterday's ruling follows the Court's dismissal, on September 8, 1998, of Gillette's claim under Massachusetts law against Norelco for its advertising for the Reflex Action.

"We are extremely gratified by the Court's decision," said Patrick Dinley, president of Norelco. "With the dismissal of the vast majority of Gillette's claims, all that remains for a possible trial is Gillette's challenge to a few television commercials that we are not running. We urge Gillette to put an end to their meritless and wasteful lawsuit. Our companies should be competing in the marketplace, not in the courtroom," Dinley continued. "If necessary, we look forward to proving at trial that Norelco's Reflex Action shaves with less irritation than blades, which an independent testing firm confirmed before we ran these advertisements."

This is the second serious loss for Gillette in this lawsuit. In November 1996, the Court largely rejected Gillette's effort to stop Norelco's advertising for the Reflex Action, requiring only that Norelco provide additional disclosures in its advertising of the 21-day acclimation period for the Reflex Action. The court specifically disapproved of Gillette's effort to rely on tests of its own employees to prove that blade shavers were at least as good as the Reflex Action.

Norelco is a division of Philips Electronics North America Corporation.