# **EXHIBIT99-1**

****

##### **The Clorox Company**News Release

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# **Clorox Reports Strong Top-line Growth and 57Cents EPS in First Quarter;**

# **Confirms Earnings Outlook for Second Quarter andFiscal Year 2005 **

OAKLAND, Calif., Nov.2, 2004 – The Clorox Company (NYSE: CLX) (PSE: CLX) todayannounced that strong sales growth and cost savings contributedsolidly to the company’s results for its fiscal firstquarter, which ended Sept. 30, 2004.
Clorox people around the world delivered anotherstrong quarter,” said President and Chief Executive OfficerJerry Johnston. “We’re extremely pleased with ourresults, which demonstrate the organization’s focus ongrowth, innovation, margin expansion and costsavings.”

Clorox reported first-quarter net earnings of $123 million, or 57 cents per dilutedshare, compared with net earnings in the year-ago period of $129million, or 60 cents per diluted share, for a decrease of 3 centsper diluted share, or 5 percentNet earnings reflected $30 million of pretaxrestructuring and asset-impairment charges (9 cents per diluted share), primarily due to the previouslyannounced restructuring of the company’s Glad U.S.manufacturing operations, part of a strategy to streamlinemanufacturing processes and improve margins.

First-quarter sales grew 4 percent to $1.09 billion, compared with $1.05 billion in thebase period. Volume growth of 4 percent was driven by new productsand all-time record shipments of Clorox®disinfecting wipes.  Gross margin in thefirst quarter grew 90 basis points versus the year-ago period to44.5 percent, primarily due to strong cost savings, partiallyoffset by increased raw-material expenses.

Clorox generated $216 million of cash from operations in the first quarter, compared to$140 million in the year-ago period, an increase of 54 percent.Contributing to this positive trend were higher pretax earnings inthe current period before the aforementioned restructuring andasset-impairment charges on the Glad business, and a $37 millionpension plan contribution in the year-ago period.

**First-QuarterResults by Business Segment**

Following is a summaryof key first-quarter results by segment. All comparisons are withthe first quarter of fiscal year 2004.

Household Products– North America
- 6% sales growth
- 8% volume grown
- 2% pretax earnings decline
Strong sales growth inthe segment was driven by all-time record shipments ofGlad®trash bags behind the launch of new Glad®ForceFlex™ trash bags, which have a unique diamondtexture that stretches to prevent punctures and rips. Also drivingsales growth were all-time record shipments ofClorox®disinfecting wipes, and strong shipments of the newClorox®ToiletWand™ disposable toilet-cleaning system,partially offset by decreased shipments of Clorox®ReadyMop®mopping system. Salesgrowth lagged volume growth due to higher trade-promotion spendingbehind new products versus the year-ago quarter. Pretax earningsreflected the benefit of increased sales and strong cost savings,more than offset by the aforementioned restructuringand asset-impairment charges on the Glad business andthe impact of trade-promotion spending in support of newproducts.

SpecialtyProducts
- 1% sales decline
- 2% volume decline
- 1% pretax earnings growth
The segment’ssales decline was driven by strong competitive activity inauto-care products and lower shipments ofKingsford®charcoal primarily due to category softness. Thesedeclines were partially offset by increased shipments of cat litterbehind the 10th consecutive quarter of year-over-yearvolume growth for Scoop Away®cat litters, eighthconsecutive quarter of year-over-year growth for FreshStep®scoopable cat litter and record shipments of FreshStep®Plus Dual Action Crystals™ blended cat litter. Pretaxearnings reflected strong cost savings andlower costs for the third-party production of some MatchLight® charcoal, substantially offset by unfavorableraw-material expenses.

International
- 6% sales growth
- 6% volume growth
- 3% pretax earnings decline

The segment’sstrong sales growth was driven by increased volume behind newproducts and category and share growth in Latin America, and thelaunch of Clorox®laundry andhome-cleaning products in Australia and New Zealand. Pretaxearnings reflected strong cost savings in Latin America and thebenefit of increased sales across the segment, more than offset byhigher advertising expenses in support of new products.

**Outlook**

As previouslycommunicated, Clorox has reached a definitive agreement with HenkelKGaA under which Clorox will exchange full ownership interest in asubsidiary for Henkel’s approximately 61.4 million shares ofClorox common stock. The subsidiary will contain Clorox’sownership interest in its insecticides and SoftScrub®cleanser businesses, its 20 percent interest in the HenkelIberica, S.A., joint venture, and cash. The transaction is expectedto close no later than Dec. 1, 2004. For clarity, the company isproviding outlook including and excluding the impact of thetransaction.

Excluding Impact ofTransaction

Excluding the impactof the transaction, Clorox continues to anticipate sales growth of3 percent to 5 percent and earnings per diluted share in the rangeof 48 cents to 52 cents for the second quarter. For fiscal year2005, also excluding the impact of the transaction, Cloroxcontinues to expect sales growth of 3 percent to 5 percent andearnings per diluted share in the range of $2.58 to $2.66. Althoughfirst-quarter earnings benefited from higher-than-expected grossmargin growth behind strong cost savings, the company ismaintaining its earnings forecast for the rest of the year due toanticipated increases in commodity costs.

Including Impact ofTransaction

The transaction is notexpected to have a material impact on second-quarter outlook;however, it will impact the company’s full-year expectations.Including the impact of the transaction, Clorox expectslow-single-digit sales growth on an as-reported basis for fiscal2005. The company anticipates that the transaction will increaseearnings per diluted share in the range of 7 cents to 10 cents,excluding the book gain to be recognized on the transaction. Uponclosing, Clorox anticipates recognizing a gain on the transactionin the range of $3.00 to $3.15 per diluted share.

Note: Percentage andbasis-point changes noted in this news release are calculated basedon rounded numbers.For additionalinformation about the company’s results, includingdefinitions of financial terms used in this earnings release and ontoday’s conference call with the investment community(details below), visit the Financial Results area within theInvestors section of the company’s Web site atwww.TheCloroxCompany.com.

**Today’sWebcast**

Today at 10:30 a.m.Pacific time (1:30 p.m. Eastern time), Clorox will host a liveaudio webcast of a discussion with the investment communityregarding the company’s first-quarter results. The webcastcan be accessed at www.TheCloroxCompany.com/investors/index.html.Following a live discussion, a replay of the webcast will bearchived for one week on the company’s Web site.

**The CloroxCompany**

The Clorox Company isa leading manufacturer and marketer of consumer products withfiscal year 2004 revenues of $4.3 billion. Clorox markets some ofconsumers’ most trusted and recognized brand names, includingits namesake bleach and cleaning products, ArmorAll® and STP® auto care products,Fresh Step® and Scoop Away® catlitters, Kingsford® charcoal briquets, HiddenValley® and K C Masterpiece®dressings and sauces, Brita® water-filtrationsystems, and Glad® bags, wraps and containers. With8,600 employees worldwide, the company manufactures products in 25countries and markets them in more than 100 countries. Clorox iscommitted to making a positive difference in the communities whereits employees work and live. Founded in 1980, The Clorox CompanyFoundation has awarded cash grants totaling more than $58.3 millionto nonprofit organizations, schools and colleges; and in fiscal2004 alone made product donations valued at $5 million. For moreinformation about Clorox, visitwww.TheCloroxCompany.com.

**Forward-LookingStatements**

Except for historical information,matters discussed above, including statements about future volume,sales and earnings growth, profitability, costs, cost savings orexpectations, are forward-looking statements based on management'sestimates, assumptions and projections. Important factors thatcould cause results to differ materially from management'sexpectations are described in "Forward-Looking Statements and RiskFactors" and "Management's Discussion & Analysis" in thecompany's SEC Form 10-K for the year ended June 30, 2004, asupdated from time to time in the company's SEC filings. Thosefactors include, but are not limited to, general economic andmarketplace conditions and events; competitors' actions; thecompany's costs, including changes in the company’s exposureto commodity cost increases; the effects on cash flow of taxpayments and share repurchases, including interest costs andrepayment of debt incurred to finance repurchases; the ability tomanage and realize the benefits of joint ventures and othercooperative relationships; risks inherent in litigation andinternational operations; the success of new products; theintegration of acquisitions; and environmental, regulatory andintellectual property matters.

Risks particular to the previouslyannounced share exchange agreement with Henkel KGaA include thesustainability of cash flows and the actual level of debt costs.Rating agency decisions and other external factors could increaseinterest costs. Declines in cash flow, which reduce thecompany’s ability to repay debt, or interest cost increasesgreater than management expects, could adversely affect thecompany’s earnings.

**Contacts**

Dan Staublin –Media Relations (510) 271-1622

Steve Austenfeld– Investor Relations (510) 271-2270

Michael Iracondo– Investor Relations (510) 271-2156

###

**CondensedConsolidated Statements of Earnings (Unaudited)**

In millions, except share andper-share amounts

ThreeMonths Ended

9/30/2004

9/30/2003

Net sales

$1,090

$1,048

Cost of productssold

605

         591

Gross profit

485

         457

Selling and administrativeexpenses

132

         122

Advertisingcosts

108

         106

Research and developmentcosts

21

           19

Restructuring and assetimpairment costs

30

 -

Interestexpense

8

             6

Other (income) expense,net

(3)

              3

Earnings from continuingoperations before income taxes

         189

         201

Income taxes

66

           71

Earnings from continuingoperations

123

         130

Loss from discontinuedoperations, net of tax benefits of $1

  for the three-monthperiod ended September 30, 2003

            -

         (1)

Net earnings

$123

$129

Net earnings per commonshare

Basic

$0.58

$0.61

Diluted

$0.57

$0.60

Weighted average commonshares outstanding (in thousands)

Basic

212,905

 212,654

Diluted

215,117

 214,807

**Segment Information(Unaudited)**

In millions

**FirstQuarter**

NetSales

Earningsfrom Continuing Operations Before Income Taxes

ThreeMonths Ended

%

ThreeMonths Ended

%

9/30/2004

9/30/2003

Change(1)

9/30/2004

9/30/2003

Change(1)

Household Products- NorthAmerica

$642

$603

6%

$152

$155

-2%

SpecialtyProducts

        314

        318

-1%

         109

        108

1%

International

        134

        127

6%

           29

          30

-3%

Corporate

            -  

           -  

         -  

        (101)

         (92)

-10%

Total Company

$1,090

$1,048

4%

$189

$201

-6%

**(1)**

**Percentages based onrounded numbers.**

**Condensed ConsolidatedBalance Sheets (Unaudited)**

In millions

9/30/2004

6/30/2004

**Assets**

Current assets

Cash and cashequivalents

$255

$232

Receivables,net

           385

          460

Inventories

305

         301

Other currentassets

53

50

Assets held forexchange

132

            -

Total currentassets

1,130

       1,043

Property, plant andequipment, net

995

       1,052

Goodwill, net

736

          742

Trademarks and otherintangible assets, net

602

          633

Other assets

309

          364

Total assets

$3,772

$3,834

**Liabilities andStockholders' Equity**

Currentliabilities

Notes and loanspayable

           $170

           $289

Current maturities oflong-term debt

3

          2

Accountspayable

287

          310

Accruedliabilities

617

          643

Income taxespayable

18

             24

Total currentliabilities

1,095

       1,268

Long-term debt

474

          475

Otherliabilities

385

          377

Deferred incometaxes

174

          174

Stockholders'equity

Common stock

250

          250

Additional paid-incapital

304

          301

Retainedearnings

2,906

       2,846

Treasury shares, atcost

      (1,552)

      (1,570)

Accumulated othercomprehensive net losses

         (252)

         (274)

Unearnedcompensation

           (12)

             (13)

Stockholders'equity

       1,644

       1,540

Total liabilities andstockholders' equity

$3,772

$3,834

****

**The CloroxCompany**

**SupplementalVolume Growth Information**

**Business Unit**

**% Change vs.Prior Year**

 

 

 

**Major drivers ofchange**

**FY04**

** **

** **

** **

** **

**FY05**

** **

** **

** **

** **

**Q1**

**Q2**

**Q3**

**Q4**

**FY**

**Q1**

**Q2**

**Q3**

**Q4**

**FY**

** **

 

 

 

 

 

 

 

 

 

 

Laundry Care

2%

14%

9%

7%

8%

6%

 

 

 

 

Increased *Clorox Bleach Pen*and *Clorox2* shipments behind distribution gains andmerchandising support.

Home Care

-2%

-1%

-4%

4%

0%

7%

 

 

 

 

Growth driven by launch of*Clorox Toilet Wand* and continued shipment gains for*Clorox* disinfecting wipes.

Water Filtration

-13%

-2%

21%

21%

6%

0%

 

 

 

 

Category softness offset by sharegains in both pour-through and faucet-mount segments.

Bags & Wraps

11%

9%

9%

7%

9%

14%

 

 

 

 

Strong growth behind launch of*Glad ForceFlex* and merchandising support for*GladWare*containers.

**Total Household Products-           North America**

**1%**

**5%**

**3%**

**6%**

**4%**

**8%**

** **

** **

** **

** **

*Household, excludingdivestitures*

*1%*

*5%*

*3%*

*6%*

*4%*

*8%*

* *

* *

* *

* *

 

 

 

 

 

 

 

 

 

 

 

Seasonal Products

5%

6%

4%

5%

5%

-5%

 

 

 

 

Shipments declined due to categorysoftness early in the quarter.

*Seasonal, excludingdivestitures*

*8%*

*8%*

*5%*

*5%*

*6%*

*-5%*

* *

* *

* *

* *

Cat Litter

6%

5%

4%

8%

6%

2%

 

 

 

 

Growth behind continueddistribution gains.

*Cat Litter, excludingdivestitures*

*17%*

*13%*

*4%*

*8%*

*10%*

*2%*

* *

* *

* *

* *

Auto Care

-11%

-5%

-2%

-11%

-7%

-12%

 

 

 

 

Decline due to reducedmerchandising in appearance category and competitive activity inthe performance category.

Dressings & Sauces

15%

10%

14%

7%

11%

-2%

 

 

 

 

Decline primarily due to earlyquarter category softness in salad dressings and competitiveactivity in marinades.

**Total SpecialtyProducts**

**4%**

**4%**

**5%**

**3%**

**4%**

**-2%**

** **

** **

** **

** **

*Specialty, excludingdivestitures*

*7%*

*7%*

*5%*

*3%*

*5%*

*-2%*

* *

* *

* *

* *

 

 

 

 

 

 

 

 

 

 

 

**TotalInternational**

**4%**

**5%**

**2%**

**10%**

**5%**

**6%**

** **

** **

** **

** **

Growth across much of LatinAmerica behind new products and category and share growth, and inAustralia and New Zealand behind introduction of new Home Careproducts.

*International, excludingdivestitures*

*5%*

*5%*

*3%*

*10%*

*6%*

*6%*

* *

* *

* *

* *

 

 

 

 

 

 

 

 

 

 

 

**Total Clorox**

**2%**

**4%**

**4%**

**6%**

**4%**

** **

**4%**

** **

** **

** **

** **

*Total, excludingdivestitures*

*3%*

*6%*

*4%*

*6%*

*5%*

* *

*4%*

* *

* *

* *

* *

*Total North America, excl.divestitures*

*3%*

*6%*

*4%*

*5%*

*4%*

* *

*4%*

* *

* *

* *

* *

**The CloroxCompany**

**Reconciliationschedule of operating profit**

**to earnings fromcontinuing operations before income taxes**

In millions

Three monthsended,

9/30/04

9/30/03

Net sales

$1,090

$1,048

Gross profit

        485

        457

*Gross margin**(1)*

*44.5%*

*43.6%*

Total operating expenses(2)

        261

        247

Operating profit

        224

        210

*Operating margin**(1)*

*20.6%*

*20.1%*

Restructuring and asset impairmentcosts

        30

        -  

Interest expense

          8

          6

Other (income) expense,net

        (3)

           3

Earnings from continuingoperations before income taxes

$189

$201

(1) Percentages based on unroundednumbers

(2) Operating expenses = sellingand administrative expenses, advertising costs and research anddevelopment costs

In accordance with SEC'sRegulation G, this schedule provides the definition of a non-GAAPmeasure and the reconciliation to the most closely related GAAPmeasure.

Operating margin is a measure ofoperating profit as a percentage of net sales, whereby operatingprofit (a non-GAAP measure) represents earnings from continuingoperations before income taxes (a GAAP measure), excludingrestructuring and asset impairment costs, interest expense andother income and expense, as reported in the Condensed ConsolidatedStatements of Earnings (Unaudited).

Management believes thepresentation of operating profit and margin provides usefulinformation to investors about current trends in thebusiness.  Operating profit is a component for the calculationof management incentive compensation and employee profit sharingplans.

**The CloroxCompany**

**Supplemental Balance Sheet andCash Flow Information – Preliminary*(unaudited)**

**For the quarterended September 30, 2004**
**Working Capital(WC) Update**
**Q1’05**

**($million)**

**Q1’04**

**($million)**
**Change**
**($million)**

**Days**

**’05**

**Days**

**’04**
******Change**
Receivables, net

385

379

+6

35

36

-1 day

Inventories

305

273

+32

45

41

+4 days

Accounts payable

287

282

+5

44

45

-1 day

Accrued liabilities

617

490

+127

Total WC(1)(2)

-167

-70

-97

Avg WC% Netsales(3)

-3.8%

-2.0%

-1.8 pts
- Inventory was higher primarilydue to normalization of charcoal inventory levels and increasedbags and wraps inventory behind the launch of *GladForceFlex*.
- Accrued liabilities increased asa result of higher tax-related accruals.
******Capital expenditures were $27million****Depreciation and amortizationwas $47 million****Cash provided byoperations**- Cash provided by continuingoperations was $216 million, 20 percent of sales and 54 percentabove the year ago quarter.  The variance to year ago wasdriven by higher pretax earnings before restructuring and assetimpairment charges in the current period, and a $37 million pensioncontribution made in the year ago period.

*Preliminary estimates. Finalnumbers will be published in our Form 10-Q.

(1)Working capital is defined as current assetsminus current liabilities excluding cash, assets held for exchangeand short term debt, except as noted in footnote(2)below.

(2)Q1 ‘05 balance includes $12 million in networking capital included in the assets held for exchange line, asreflected on the 9/30/04 Condensed Consolidated Balance Sheet(Unaudited).  Assets held for exchange include assetsexchanged under the terms of the definitive share exchangeagreement reached with Henkel KGaA.

(3)Based on a two points average working capitaldivided by annualized net sales*(current quarter net sales x 4).*