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AVON PRODUCTS ORDERED TO PAY INTERIM AWARD

 NEW YORK, March 23 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) has learned that an interim award in a California arbitration proceeding ordered the company to pay $20.4 million to the former CEO and minority shareholder of Retirement Inns of America, a former health care subsidiary which Avon sold in 1988 and 1989. The interim award, which does not include possible punitive damages, will result in a charge, net of existing reserves, against first quarter 1993 earnings of approximately 14 cents per share. As a result, Avon does not expect to meet its stated net earnings objectives for the first quarter.
 The underlying dispute arose out of the divestiture by Avon of Retirement Inns of America. Avon believes the award is not justified and is reviewing its options.
 Avon is the world's leading direct seller and marketer of beauty and related products with $3.8 billion in annual revenues. Avon markets its products to women in more than 100 countries through 1.7 million independent representatives. Avon product lines include such recognizable brands as Anew, Skin-So-Soft, Moisture Therapy, Color Rich Lipstick and Imari fragrance. Avon is also the world's largest manufacturer of fashion jewelry, and markets an extensive line of gifts and collectibles. The company employs approximately 30,000 people worldwide.
 -0- 3/23/93
 /CONTACT: Mary Taylor, 212-546-6341, or Jim Daniels, 212-546-6058,


both of Avon/
 (AVP)


CO: Avon Products, Inc.; Retirement Inns of America ST: New York, California IN: HOU LEI SU:

TS-SH -- NY063 -- 9276 03/23/93 15:11 EST
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 23, 1993
Words:252
Previous Article:PROGRESSIVE EMPLOYEE BENEFIT PROGRAMS KEEP CORPORATIONS COMPETITIVE; WORK & LIFE ISSUES ARE FOCUS OF PILGRIM HEALTH CARE CONFERENCE
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