Four Avon Representatives File Class Action Against Avon Products, Inc.

NEW YORK--(BUSINESS WIRE)--Aug. 11, 1998--Counsel for Class Plaintiffs, Milberg Weiss Bershad Hynes & Lerach LLP and Lax & Noll, announced that a class action was commenced on July 7, 1998 in the Supreme Court of the State of New York in Brooklyn on behalf of Representatives of Avon Products, Inc. ("Avon") (NYSE: AVP) who were Sponsors in the Avon Sponsorship Earnings Program on July 7, 1998.

The plaintiffs allege the following: Under the Sponsorship Earnings Program initiated by Avon in or about 1984, Avon agreed to pay Avon representatives ("Sponsors") who referred persons to Avon who became Avon representatives ("Sponsored Representatives") five percent of all purchases from Avon by the Sponsored Representatives. The Sponsors were advised by Avon that there was no limit to the amount of people they could sponsor or the amount they could earn. Avon agreed that the program would remain in effect and Sponsors would continue to earn their Sponsorship Earnings as long as the Sponsors and the Sponsored Representatives continued to be Avon Representatives.

In or about late June 1998 Avon began informing Sponsors that it had decided to terminate the Sponsorship Earnings Program. The Complaint alleges that the termination is improper, in breach of agreements Avon has with members of the Class and in breach of Avon's duty to deal with Representatives fairly and in good faith. The Complaint also alleges that Avon will be unjustly enriched if it is allowed to terminate the Sponsorship Earnings Program and seeks damages and other relief on behalf of the Class. Plaintiffs have also made a motion seeking a preliminary injunction to prevent Avon from terminating the Sponsorship Earnings Program. A two-day hearing was held by the Court and a decision on plaintiffs' motion is expected soon.

The Class is represented by the New York law firms of Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) and Lax & Noll (http://www.laxandnoll.com). Milberg Weiss has prosecuted consumer, securities, antitrust and other class actions for thirty years and has recovered billions of dollars for its clients. Lax and Noll is primarily engaged in the prosecution of class actions and derivative suits in state and federal courts.

Class members may discuss this action or any questions they may have concerning this case or their rights or interests by contacting either:

Sanford P. Dumain Milberg Weiss Bershad Hynes & Lerach LLP One Pennsylvania Plaza 49th Floor New York, NY 10119 Telephone: [phone] Fax: [phone] E-mail: [e-mail] or Robert I. Lax Lax & Noll 551 Fifth Avenue New York, NY 10176 Telephone: [phone] Fax: [phone] E-mail: [e-mail]

    CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP
              Sanford P. Dumain, 212/594-5300
                    or
              Lax & Noll
              Robert I. Lax, 212/818-9150