# **Clorox Earns $2.23 for 63% EPS Growth in Fiscal2003;**

Fourth-Quarter EPS Up 8%;

Confirms Fiscal 2004 Outlook

OAKLAND,Calif., Aug. 12, 2003 – The Clorox Company (NYSE:CLX)(PSE:CLX) today announced that strong gross margins, workingcapital and cash flows contributed to the company’s resultsfor its fiscal fourth quarter and year, which ended June 30,2003.

Inaccordance with generally accepted accounting principles in theUnited States (GAAP), the company reported fourth-quarter netearnings of $149 million, or 68 cents per diluted share, comparedwith prior-year fourth-quarter net earnings of $145 million, or 63cents per diluted share, which represents an increase of 5 centsper diluted share, or 8 percent.

For thefiscal year, Clorox reported net earnings of $493 million (GAAP),or $2.23 per diluted share,compared with year-ago net earnings of $322 million, or$1.37 per diluted share,whichrepresents an increase of 86 cents, or 63 percent.

“Clorox people delivered another solidquarter and a very strong year, demonstrating the effectiveness ofour strategies and the organization’s focus on growth,innovation and margin expansion,” said President and CEOJerry Johnston. “The results of their efforts are clearlyreflected throughout our earnings statement and balance sheet, andin fiscal 2003, we achieved each of our financialtargets.”

The attachedearnings and balance sheet statements and segment information arereported in accordance with GAAP. To clarify the company’sresults with respect to prior-year periods, Clorox has postedadditional details regarding previously reported earnings on thecompany’s Web site atwww.clorox.com/investors/qr.html.

## **Fourth-QuarterResults**

Fourth-quarter sales increased 2 percent to $1.2billion. Excluding divestitures, sales increased 3 percent comparedto the year-ago quarter. Sales growth was driven by increasedvolume, notably record fourth-quarter shipments ofGlad® trash bags and Hidden Valley®and K C Masterpiece® food products.

Cost savingsand increased volume drove a gross margin gain of 73 basis points.This is the company’s seventh consecutive quarter of grossmargin improvement.

Improvementsin managing inventories and receivables contributed to thecompany’s ability to achieve its fourth consecutive quarterof negative working capital and its 10th consecutivequarter of year-over-year improvements in working capital. Workingcapital averaged –1.7 percent of net sales, a 170 basis pointimprovement, compared with zero percent of net sales in the prioryear.

During thequarter, Clorox used its free cash flow to purchase 3.5 millionshares of the company’s common stock at a total cost of $152 million. A portion of the shares purchased was allocated tothe board-authorized $1 billion repurchase program, bringing thetotal number of shares repurchased to 18.2 million at a total costof  $773 million under that program. The remainder of sharespurchased during the quarter was allocated to the company’songoing program to offset the potential impact of stock optiondilution.

##### **Fourth-Quarter Results by Segment**

A summary ofkey fourth-quarter results by segment follows. All comparisons arewith fourth quarter fiscal 2002.

#### **Household Products –North America**

- 2% volumegrowth
- 2% salesgrowth
- 9% pretaxprofit decline

Volumegrowth in this segment was primarily driven by all-time recordshipments of Glad® trash bags. Pretax profit resultsreflect increased volume and cost savings that were more thanoffset by unfavorable product mix, higher raw-material costs,increased trade-promotion spending, and increased R&D expensesto drive product innovation.

SpecialtyProducts
- 3% volumegrowth, 5% growth excluding divestitures
- 1% salesgrowth, 3% growth excluding divestitures
- 6% pretaxprofit decline

Strongvolume growth in this segment was primarily driven by recordfourth-quarter shipments of Fresh Step® and ScoopAway® cat litters, Hidden Valley®bottled salad dressing and K C Masterpiece® barbecuesauce. The volume-to-sales variance was primarily driven byincreased trade-promotion spending to launch new products,partially offset by a Kingsford® charcoal priceincrease implemented earlier in the fiscal year. Pretax profitresults reflect increased trade marketing and advertising costs tolaunch new products.

HouseholdProducts – Latin America/Other
- 3% volumegrowth, 4% growth excluding divestitures
- 6% salesgrowth, 7% growth excluding divestitures
- 117% pretaxprofit growth

Volumegrowth in this segment was primarily driven by increased shipmentsin Argentina and insecticides, home care and laundry products inAsia-Pacific, partially offset by declines in bags and wraps andauto care volume in Asia-Pacific. Sales growth outpaced volumegrowth due to reduced trade-promotion spending, price increases andfavorable foreign exchange rates. Significant gross marginimprovement and cost savings drove the segment’s pretaxprofit improvement, reflecting the steps Clorox has taken tomitigate unfavorable economic conditions in Latin America, whichinclude taking price increases, reducing the size of theorganization to improve the cost structure, cutting back ondiscretionary spending and aggressively managing workingcapital.

## **Fiscal Year 2003Results**

Fiscal-yearsales increased 3 percent to $4.1 billion. Excluding divestitures,total company sales increased 5 percent and sales in North Americarose 6 percent compared to the prior year.

Focusing oninnovation and investing in core brands were key to thecompany’s top-line results. For the year, Clorox increasedadvertising spending by 17 percent and brought several new productsto market, including Clorox® bathroom cleaners withTeflon®, Don’t Mop with Dirty WaterAgain!™ Pine-Sol® cleaner, Formula409® wipes, Brita® pour-throughpitchers with electronic filter change indicators, HiddenValley® BBQ Ranch dressing, K CMasterpiece® Dip & Top™ sauces, ArmorAll® car wash wipes and Scoop Away®plus crystals cat litter.

For thefiscal year, significant gross margin increases in each segmentdrove overall gross margin growth of 296 basis points.

Improvementsin managing inventories and receivables contributed to thecompany’s ability to achieve negative working capital, whichaveraged –1.6 percent of net sales, a 220 basis pointimprovement, compared with .6 percent in the prior year.

Thecompany’s return on invested capital (ROIC) increased from13.5 percent in fiscal 2002 to 14.7 percent in fiscal 2003. Thecompany defines ROIC as after-tax operating profit (excludingdeferred taxes and restructuring charges included in cost of goodssold) divided by average total invested capital.

**Outlookfor Fiscal 2004**

Cloroxcontinues to expect that fiscal year 2004 results will beconsistent with the company’s previously communicatedlong-term expectations for double-digit earnings-per-diluted-sharegrowth and 3 percent to 5 percent sales and volume growth.Specifically, for fiscal year 2004, the company’s preliminaryexpectations are for earnings per diluted share in the range of$2.47 to $2.57 (GAAP).

For thefirst quarter of fiscal 2004, the company continues to anticipatevolume growth and increased cost savings versus the year-agoperiod. At the same time, first-quarter earnings are expected to beimpacted by significant spending to launch new products, includingGlad® Press ’n Seal™ foodwrap, as well as higher raw-material costs and R&D investmentsas compared to the year-ago quarter. As a result, Clorox projectsfirst-quarter earnings per diluted share in the range of 57 centsto 62 cents (GAAP), compared with 65 cents (GAAP) in the prior-yearquarter.

For thesecond quarter, Clorox expects to deliver earnings per dilutedshare in the range of 46 cents to 51 cents (GAAP), compared with 40cents (GAAP) in the prior-year quarter. The company expects thisstrong earnings growth to be driven by a strengthening top lineoffset by higher commodity costs and trade-promotion spending tosupport new products. Second-quarter earnings results will alsobenefit from comparison to the year-ago quarter, which included anasset impairment charge for the company’s business inArgentina that was slightly offset by lower trade spending relatedto closing out retailer promotion programs as the company convertedto new systems.

Aspreviously announced, the board of directors authorized the companyto increase its share repurchase program by $700 million. In 2004,in accordance with its previously announced agreement with HCInvestments Inc. (Henkel), Clorox expects to repurchase $100million of its common stock from Henkel and another $250 million onthe open market. Of the $350 million total share repurchasesplanned in fiscal 2004, a portion will be purchased under the morethan $900 million available through the board-authorized sharerepurchase program, and the balance will be allocated to thecompany’s ongoing program to offset the potential impact ofstock option dilution.

**Today’s Webcast**

Today,Clorox will host a live audio webcast of a discussion with theinvestment community regarding the company’s fourth-quarterand full-year results and its outlook. The webcast, which can beaccessed at www.clorox.com, will begin at 10:30 a.m. Pacific time(1:30 p.m. Eastern time). A replay of the webcast will be archivedfor one week on the company’s Web site.

**TheClorox Company**

The CloroxCompany is a leading manufacturer and marketer of consumer productswith fiscal year 2003 revenues of $4.1 billion. Clorox markets someof consumers’ most trusted and recognized brand names,including its 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, and Glad® bags, wraps andcontainers. With 9,500 employees worldwide, the companymanufactures products in 25 countries and markets them in more than100 countries. Founded in 1980, The Clorox Company Foundation hasawarded cash grants totaling more than $51 million to nonprofitorganizations, schools and colleges; and in fiscal 2002 alone madeproduct donations valued at nearly $5 million. For more informationabout Clorox, visit the company’s Web site atwww.clorox.com.

Except forhistorical information, matters discussed above, includingstatements about future volume, sales and earnings growth,profitability, costs, cost savings or expectations, areforward-looking statements based on management’s estimates,assumptions and projections. Important factors that could causeresults to differ materially from management’s expectationsare described in “Forward-Looking Statements and RiskFactors” and “Management’s Discussion andAnalysis of Financial Condition and Results of Operation” inthe company’s SEC Form 10-K for the year ended June 30, 2002,as updated from time to time in the company’s SEC filings.Those factors include, but are not limited to, general economic andmarketplace conditions and events; the company’s costs,including the impact of world events on raw material costs and/orsupply disruption; risks inherent in litigation and internationaloperations; the success of new products; the company’sability to manage and obtain the benefits of joint ventureactivities; the success of information systems design andimplementation; integration of acquisitions; and environmental,regulatory and intellectual property matters.

###

****

**Contacts**

TheClorox Company

KathrynCaulfield – Media Relations, (510) 271-7209

SteveAustenfeld – Investor Relations, (510) 271-2270

********************************************************************

| **The CloroxCompany**                                            |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |
|------------------------------------------------------------------|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------|
| Statements ofConsolidated Earnings (Unaudited)                   |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |
| In millions, exceptearnings-per-share amounts                    |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  |                                                                                       |                                                                       |                                                                           | ThreeMonths Ended                                                |                                                                             | TwelveMonths Ended                                               |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |
|                                                                  |                                                                                       |                                                                       |                                                                           | 6/30/03                                                          |                                                                             | 6/30/02                                                          |                                                          | 6/30/03 |  | 6/30/02 |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Net sales                                                        | $1,152                                                                                |                                                                       | $1,128                                                                    |                                                                  | $4,144                                                                      |                                                                  | $4,022                                                   |
| Cost of productssold                                             |         630                                   |                                                                       |         625                            |                                                                  |        2,225                                  |                                                                  |      2,279                           |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Grossprofit                                                      |         522                                   |                                                                       |         503                            |                                                                  |        1,919                                  |                                                                  |      1,743                           |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Selling andadministrative expenses                               |         135                                   |                                                                       |         122                            |                                                                  |          532                   |                                                                  |          526          |
| Advertisingcosts                                                 |         123                                   |                                                                       |         113                            |                                                                  |          456                   |                                                                  |         391           |
| Research anddevelopment costs                                    |            23                  |                                                                       |          20                  |                                                                  |             76  |                                                                  |          66 |
| Restructuring andasset impairment costs                          |               - |                                                                       |             6 |                                                                  |             33  |                                                                  |         184           |
| Interestexpense                                                  |              6       |                                                                       |             8 |                                                                  |             28  |                                                                  |          38 |
| Other (income)expense, net                                       |            (7)                 |                                                                       |             4 |                                                                  |             (8) |                                                                  |         (23)     |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Earnings before incometaxes and discontinued operations          |         242                                   |                                                                       |         230                            |                                                                  |          802                   |                                                                  |         561           |
| Incometaxes                                                      |            85                  |                                                                       |          76                  |                                                                  |          288                   |                                                                  |         204           |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Net earnings fromcontinuing operations                           |         157                                   |                                                                       |         154                            |                                                                  |           514                  |                                                                  |         357           |
| Losses fromdiscontinued operations, net of tax expense (benefit) |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |
|                                                                  | of $1 and ($19) forthe three months, and ($5) and ($28) for the                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |
|                                                                  | twelve months endedJune 30, 2003 and 2002, respectively                               |            (8) |                                                                           |            (9) |                                                                             |           (21) |                                                          |         (35) |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Netearnings                                                      | $149                                                                                  |                                                                       | $145                                                                      |                                                                  | $493                                                                        |                                                                  | $322                                                     |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Earnings (losses) percommon share                                |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |
|                                                                  | Basic                                                                                 |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |
|                                                                  |                                                                                       | Continuingoperations                                                  | $0.73                                                                     |                                                                  | $0.68                                                                       |                                                                  | $2.36                                                    |  | $1.54 |
|                                                                  |                                                                                       | Discontinuedoperations                                                |        (0.04)                               |                                                                  |      (0.04)                                             |                                                                  | (0.10)                                                   |  |      (0.15) |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  | Basic net earnings percommon share                                                    | $0.69                                                                 |                                                                           | $0.64                                                            |                                                                             | $2.26                                                            |                                                          | $1.39 |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  | Diluted                                                                               |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |
|                                                                  |                                                                                       | Continuingoperations                                                  | $0.72                                                                     |                                                                  | $0.67                                                                       |                                                                  | $2.33                                                    |  | $1.52 |
|                                                                  |                                                                                       | Discontinuedoperations                                                | (0.04)                                                                    |                                                                  | (0.04)                                                                      |                                                                  | (0.10)                                                   |  | (0.15) |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  | Diluted net earningsper common share                                                  | $0.68                                                                 |                                                                           | $0.63                                                            |                                                                             | $2.23                                                            |                                                          | $1.37 |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
|                                                                  |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |  |  |  |
| Weighted averagecommon shares outstanding (in thousands)         |                                                                                       |                                                                       |                                                                           |                                                                  |                                                                             |                                                                  |                                                          |
|                                                                  | Basic                                                                                 | 215,134                                                               |                                                                           | 228,146                                                          |                                                                             | 218,174                                                          |                                                          | 231,849 |
|                                                                  | Diluted                                                                               | 217,657                                                               |                                                                           | 231,332                                                          |                                                                             | 220,692                                                          |                                                          | 234,704 |

****

**The CloroxCompany**

ReconciliationSchedule

In millions

**Fourth Quarter Net Sales****(1)**
|                                               | ThreeMonths Ended June 30, 2003 | ThreeMonths Ended June 30, 2002 |
|-----------------------------------------------|---------------------------------|---------------------------------|
|                                               | Total Sales(GAAP)               | Sales of DivestedBusinesses     | Sales

Excluding DivestedBusinesses | Total Sales(GAAP) | Sales of

DivestedBusinesses | Sales

Excluding DivestedBusinesses |
| Household Products– North America       | $561                            | ($0)                            | $561 | $551 | ($0) | $551 |
| SpecialtyProducts                             | 453                             | (0)                             | 453 | 447 | (8) | 439 |
| Household Products– Latin America/Other | 138                             | (0)                             | 138 | 130 | (1) | 129 |
| TotalCompany                                  | $1,152                          | ($0)                            | $1,152 | $1,128 | ($9) | $1,119 |

****

**Fiscal Year Net Sales****(1)**
|                                               | TwelveMonths Ended June 30, 2003 | TwelveMonths Ended June 30, 2002 |
|-----------------------------------------------|----------------------------------|----------------------------------|
|                                               | Total Sales(GAAP)                | Sales of DivestedBusinesses      | Sales

Excluding DivestedBusinesses | Total Sales(GAAP) | Sales of

DivestedBusinesses | Sales

Excluding DivestedBusinesses |
| Household Products– North America       | $2,282                           | ($1)                             | $2,281 | $2,198 | ($34) | $2,164 |
| SpecialtyProducts                             | 1,369                            | (13)                             | 1,356 | 1,304 | (38) | 1,266 |
| Household Products– Latin America/Other | 493                              | (2)                              | 491 | 520 | (4) | 516 |
| TotalCompany                                  | $4,144                           | ($16)                            | $4,128 | $4,022 | ($76) | $3,946 |

**(1)**These tables provide a quantitative reconciliation of thedifferences between financial measures that are not presented inaccordance with Generally Accepted Accounting Principles in theUnited States (GAAP) and those calculated and presented inaccordance with GAAP. Management believes that the presentation ofa comparison of historical sales excluding divested operations (anon-GAAP financial measure) with sales in the current period (aGAAP measure) provides useful information to investors aboutcurrent trends in the ongoing business. Management does not usethis non-GAAP measure for any other purpose.

**The CloroxCompany**

SegmentInformation

Inmillions
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
|--------------------|---------------------------------------------------------------------------------------------------|--------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------------------------------------------------|--------------------|------------------------------------------------------------------------|----------------------------------------------------------------------------------|-------------------------------------------------------------|----------------------------------------------------------------------------------|-----|-----------|
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
|                    |                                                                                                   | NetSales           |                                                                                                   | Earnings Before Income Taxes and DiscontinuedOperations |
|                    |                                                                                                   | ThreeMonths Ended  |                                                                                                   | %                                                       |                                                                                                   | ThreeMonths Ended  |                                                                        | %                                                                                |
|                    |                                                                                                   | 6/30/2003          |                                                                                                   | 6/30/2002                                               |                                                                                                   | Change(1)          |                                                                        | 6/30/2003                                                                        |                                                             | 6/30/2002                                                                        |     | Change(1) |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| HouseholdProducts: |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |
|                    | NorthAmerica                                                                                      | $561               |                                                                                                   | $551                                                    |                                                                                                   | 2%                 |                                                                        | $130                                                                             |                                                             | $142                                                                             |     | -9%       |
|                    | LatinAmerica/Other                                                                                | 138                |                                                                                                   | 130                                                     |                                                                                                   | 6%                 |                                                                        |              28 |                                                             |              13 |     | 117%      |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| SpecialtyProducts  | 453                                                                                               |                    | 447                                                                                               |                                                         | 1%                                                                                                |                    | 171                                                                    |                                                                                  | 181                                                         |                                                                                  | -6% |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| Corporate          |                 - |                    |                 - |                                                         |                 - |                    |            (87) |                                                                                  |          (106) |                                                                                  | 18% |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| Total              | $1,152                                                                                            |                    | $1,128                                                                                            |                                                         | 2%                                                                                                |                    | $242                                                                   |                                                                                  | $230                                                        |                                                                                  | 5%  |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
|                    |                                                                                                   | NetSales           |                                                                                                   | Earnings Before Income Taxes and DiscontinuedOperations |
|                    |                                                                                                   | TwelveMonths Ended |                                                                                                   | %                                                       |                                                                                                   | TwelveMonths Ended |                                                                        | %                                                                                |
|                    |                                                                                                   | 6/30/2003          |                                                                                                   | 6/30/2002                                               |                                                                                                   | Change(1)          |                                                                        | 6/30/2003                                                                        |                                                             | 6/30/2002                                                                        |     | Change(1) |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| HouseholdProducts: |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |
|                    | NorthAmerica                                                                                      | $2,282             |                                                                                                   | $2,198                                                  |                                                                                                   | 4%                 |                                                                        | $607                                                                             |                                                             | $535                                                                             |     | 14%       |
|                    | LatinAmerica/Other                                                                                | 493                |                                                                                                   | 520                                                     |                                                                                                   | -5%                |                                                                        | 66                                                                               |                                                             | (66)                                                                             |     | 200%      |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| SpecialtyProducts  | 1,369                                                                                             |                    | 1,304                                                                                             |                                                         | 5%                                                                                                |                    | 521                                                                    |                                                                                  | 517                                                         |                                                                                  | 1%  |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| Corporate          |                 - |                    |                 - |                                                         |                 - |                    |          (392)            |                                                                                  |          (425) |                                                                                  | 8%  |
|                    |                                                                                                   |                    |                                                                                                   |                                                         |                                                                                                   |                    |                                                                        |                                                                                  |                                                             |                                                                                  |     |           |
| Total              | $4,144                                                                                            |                    | $4,022                                                                                            |                                                         | 3%                                                                                                |                    | $802                                                                   |                                                                                  | $561                                                        |                                                                                  | 43% |

(1) Percentages basedon numbers that were not rounded
| **The CloroxCompany**                      |                                           |                          |           |
|--------------------------------------------|-------------------------------------------|--------------------------|-----------|
| Consolidated BalanceSheets (Unaudited)     |                                           |                          |           |
| In millions                                |                                           |                          |           |
|                                            |                                           |                          |           |  |  |
|                                            |                                           |                          | 6/30/2003 |  | 6/30/2002 |
|                                            |                                           |                          |           |
| Assets                                     |                                           |                          |           |
| Currentassets                              |                                           |                          |           |
|                                            | Cash and cashequivalents                  | $172                     |           | $177 |
|                                            | Receivables,net                           | 463                      |           | 481 |
|                                            | Inventories                               | 264                      |           | 252 |
|                                            | Other currentassets                       | 46                       |           | 83 |
|                                            | Assets held forsale                       | 6                        |           | 51 |
|                                            |                                           |                          |           |  |  |
|                                            |                                           | Total currentassets      | 951       |  | 1,044 |
|                                            |                                           |                          |           |  |  |
| Property, plant andequipment, net          | 1,072                                     |                          | 992       |
|                                            |                                           |                          |           |  |  |
| Goodwill,net                               | 730                                       |                          | 728       |
|                                            |                                           |                          |           |  |  |
| Trademarks and otherintangible assets, net | 651                                       |                          | 573       |
|                                            |                                           |                          |           |  |  |
| Other assets,net                           | 248                                       |                          | 187       |
|                                            |                                           |                          |           |  |  |
| Totalassets                                | $3,652                                    |                          | $3,524    |
|                                            |                                           |                          |           |  |  |
|                                            |                                           |                          |           |  |  |
| Liabilities andStockholders' Equity        |                                           |                          |           |
| Currentliabilities                         |                                           |                          |           |
|                                            | Notes and loanspayable                    | $361                     |           | $330 |
|                                            | Current maturities oflong-term debt       | 213                      |           | 2 |
|                                            | Accountspayable                           | 312                      |           | 330 |
|                                            | Accruedliabilities                        | 537                      |           | 510 |
|                                            | Income taxespayable                       | 28                       |           | 54 |
|                                            |                                           |                          |           |  |  |
|                                            |                                           | Total currentliabilities | 1,451     |  | 1,226 |
|                                            |                                           |                          |           |  |  |
| Long-termdebt                              | 495                                       |                          | 678       |
|                                            |                                           |                          |           |  |  |
| Otherliabilities                           | 376                                       |                          | 231       |
|                                            |                                           |                          |           |  |  |
| Deferred incometaxes                       | 115                                       |                          | 23        |
|                                            |                                           |                          |           |  |  |
| Stockholders'equity                        |                                           |                          |           |
|                                            | Commonstock                               | 250                      |           | 250 |
|                                            | Additional paid-incapital                 | 255                      |           | 222 |
|                                            | Retainedearnings                          | 2,565                    |           | 2,270 |
|                                            | Treasury shares, atcost                   | (1,507)                  |           | (1,070) |
|                                            | Accumulated othercomprehensive net losses | (339)                    |           | (296) |
|                                            | Unearnedcompensation                      | (9)                      |           | (10) |
|                                            |                                           |                          |           |  |  |
|                                            |                                           | Stockholders'equity      | 1,215     |  | 1,366 |
|                                            |                                           |                          |           |  |  |
| Total liabilities andstockholders' equity  | $3,652                                    |                          | $3,524    |
|                                            |                                           |                          |           |

**********************************************************************

**Q4 Supplementary FinancialInformation**
|  |  | **The CloroxCompany**                                             |
|--|--|-------------------------------------------------------------------|
|  |  | **CondensedConsolidated Statements of Earnings (unaudited) - Q4** |
|  |  |                                                                   |  |  |  |  |  |  |  |
|  |  | *In millions, exceptearnings-per-share amounts*                   |  |  |  |  |  |  |
|  |  |                                                              |   |  | ** ** | ** ** | ** ** |   |  |
|  |  |                                                              |   |  | **GAAP** |   |  |
|  |  |                                                              |   |  |   |   |   |   | ***Drivers ofchange*** |
|  |  |                                                              |   |  | **Three MonthsEnded** |   |  |
|  |  |                                                              |   |  | **6/30/03** | **6/30/02** | **Var** | ** ** |  |
|  |  |                                                              |   |  | (a) | (a) | (b) |   |  |
|  |  | **Net sales**                                                     |  | **$1,152** | **$1,128** | **2%** | ** ** | *Higher volume* |
|  |  |                                                              | Cost of products sold |  | 630 | 625 | 1% |   | *Volume increase offset by costsavings initiatives* |
|  |  | **Gross profit**                                                  |  | **522** | **503** | **4%** | ** ** |  |
|  |  |                                                              | Selling and administrativeexpenses |  | 135 | 122 | 11% |   | *Project Delta and highercompensation expenses* |
|  |  |                                                              | Advertising costs |  | 123 | 113 | 9% |   | *Increased spending in basebusiness and new products* |
|  |  |                                                              | Research and developmentcosts |  | 23 | 20 | 15% |   | *Increased investment to driveinnovation* |
|  |  | **Operating profit**                                              |  | **241** | **248** | **-3%** | ** ** |  |
|  |  |                                                              | Restructuring and asset impairmentcosts |  | 0 | 6 |  |   |  |
|  |  |                                                              | Interest expense |  | 6 | 8 |  |   | *Lower interestrates* |
|  |  |                                                              | Other (income) expense,net |  | (7) | 4 |  |   | *Gain on sale of Black Flag andfavorable FX movement* |
|  |  | **Earnings before income taxesand discontinued operations**       |  | **242** | **230** | **5%** | ** ** |  |
|  |  |                                                              | Income taxes |  | 85 | 76 |  |   |  |
|  |  | **Net earnings from continuingoperations**                        |  | **$157** | **154** | **1%** | ** ** |  |
|  |  |                                                              | Losses from discontinuedoperations, net of taxes |  | (8) | (9) |  |   | *Brazil discontinuedoperations* |
|  |  | **Net earnings**                                                  |  | **$149** | **$145** | **2%** | ** ** |  |
|  |  | ** **                                                        | ** ** |  | ** ** |  |  | ** ** |  |
|  |  | * *                                                          | *Effective income taxrate* |  | *35.2%* | *33.1%* |  | * * | *Year-ago tax rate impacted byArgentina asset impairment* |
|  |  | * *                                                          | * * |  | * * |  |  | * * | *and gain ondivestitures* |
|  |  | **Earnings (losses) per commonshare**                             |  |   |  |  |   |  |
|  |  | ** **                                                        | Basic |  |   |  |  |   |  |
|  |  | ** **                                                        |      Continuing operations |  | $0.73 | $0.68 | $0.05 |   |  |
|  |  | ** **                                                        |      Discontinued operations |  | -$0.04 | -$0.04 | $0.00 |   | *Brazil discontinuedoperations* |
|  |  | ** **                                                        | **  Basic net earnings percommon share** |  | **$0.69** | **$0.64** | **$0.05** | ** ** |  |
|  |  | ** **                                                        | ** ** |  | ** ** |  |  | ** ** |  |
|  |  | ** **                                                        | Diluted |  | ** ** |  |  | ** ** |  |
|  |  | ** **                                                        |      Continuing operations |  | $0.72 | $0.67 | $0.05 |   |  |
|  |  | ** **                                                        |      Discontinued operations |  | -$0.04 | -$0.04 | $0.00 |   | *Brazil discontinuedoperations* |
|  |  | ** **                                                        | **  Diluted net earnings percommon share** |  | **$0.68** | **$0.63** | **$0.05** | ** ** |  |
|  |  |                                                              |   |  |   |  |  |   |  |
|  |  | Weighted average common sharesoutstanding (in thousands)          |  |   |  |  |   |  |
|  |  |                                                              | Basic |  | 215,134 | 228,146 |  |   |  |
|  |  |                                                              | Diluted |  | 217,657 | 231,332 |  |   | *Sharerepurchases* |
|  |  |                                                              |   |  |   |  |  |   |  |
|  |  | **Ratios as % of NetSales**                                       |  | ** ** |  | **varbps** | ** ** |  |
|  |  |                                                              | Gross profit |  | 45.3% | 44.6% | 73 |   |  |
|  |  |                                                              | Selling and administrativeexpenses |  | 11.8% | 10.8% | 95 |   |  |
|  |  |                                                              | Advertising costs |  | 10.7% | 10.0% | 63 |   |  |
|  |  |                                                              | Research and developmentcosts |  | 2.0% | 1.8% | 23 |   |  |
|  |  |                                                              | Operating profit |  | 20.9% | 21.9% | (107) |   |  |
|  |  |                                                              | Earnings before incometax |  | 20.9% | 20.4% | 48 |   |  |
|  |  |                                                              |   |  |   |   |   |   |  |
|  |  | (a)                                                               | Operating results ofthe Brazil business are presented as discontinuedoperations. |  |  |  |  |
|  |  | (b)                                                               | Percentages based onnumbers prior to rounding. |  |  |  |  |  |  |
|  |  |                                                                   |  |  |  |  |  |  |  |

************************************************************
|  | **The CloroxCompany**                                                                   |
|--|-----------------------------------------------------------------------------------------|
|  | **CondensedConsolidated Statements of Earnings (unaudited) - Fiscal Year EndedJune 30** |
|  |                                                                                         |  |  |  |  |  |  |  |  |  |
|  | *In millions, exceptearnings-per-share amounts*                                         |  |  |  |  |  |  |  |  |
|  |                                                                                    |   |  | ** ** | ** ** | ** ** |   |  |  | **For InformationPurposes:       ****FY02         Pro-Forma****(c)** |
|  |                                                                                    |   |  | **GAAP** |   |  |  |
|  |                                                                                    |   |  |   |   |   |   | ***Drivers ofchange*** |  |
|  |                                                                                    |   |  | **YearEnded** |   |  |  | **YearEnded** |
|  |                                                                                    |   |  | **6/30/03** | **6/30/02** | **Var** | ** ** |  |  | **6/30/02** |
|  |                                                                                    |   |  | (a) | (a) | (b) |   | *See Q1, Q2, Q3 and Q4 detailedcomments for year to date change.* |  | (a) |
|  | **Net sales**                                                                           |  | **$4,144** | **$4,022** | **3%** | ** ** |  |  | **$4,022** |
|  |                                                                                    | Cost of products sold |  | 2,225 | 2,279 | -2% |   |  |  |               2,282 |
|  | **Gross profit**                                                                        |  | **1,919** | **1,743** | **10%** | ** ** |  |  | **1,740** |
|  |                                                                                    | Selling and administrativeexpenses |  | 532 | 526 | 1% |   |  |  |                   526 |
|  |                                                                                    | Advertising costs |  | 456 | 391 | 17% |   |  |  |                  391 |
|  |                                                                                    | Research and developmentcosts |  | 76 | 66 | 15% |   |  |  |                    67 |
|  | **Operating profit**                                                                    |  | **855** | **760** | **12%** | ** ** |  |  | **756** |
|  |                                                                                    | Restructuring and asset impairmentcosts |  | 33 | 184 |  |   |  |  |                     6 |
|  |                                                                                    | Interest expense |  | 28 | 38 |  |   |  |  |                    39 |
|  |                                                                                    | Other (income) expense,net |  | (8) | (23) |  |   |  |  |                     9 |
|  | **Earnings before income taxesand discontinued operations**                             |  | **$802** | **561** | **43%** | ** ** |  |  | **                702** |
|  |                                                                                    | Income taxes |  | 288 | 204 |  |   |  |  |                  237 |
|  | **Net earnings from continuingoperations**                                              |  | **$514** | **357** | **44%** | ** ** |  |  | **                465** |
|  |                                                                                    | Losses from discontinuedoperations, net of taxes |  | (21) | (35) |  |   |  |  |                  (14) |
|  | **Net earnings**                                                                        |  | **$493** | **$322** | **53%** | ** ** |  |  | **                451** |
|  | ** **                                                                              | ** ** |  | ** ** |  |  | ** ** |  |  | ** ** |
|  | * *                                                                                | *Effective income taxrate* |  | *35.9%* | *36.3%* |  | * * |  |  | *32.4%* |
|  | * *                                                                                | * * |  | * * |  |  | * * |  |  | * * |
|  | **Earnings (losses) per commonshare**                                                   |  |   |  |  |   |  |  |   |
|  | ** **                                                                              | Basic |  |   |  |  |   |  |  |   |
|  | ** **                                                                              |      Continuing operations |  | $2.36 | $1.54 | $0.82 |   |  |  | $2.01 |
|  | ** **                                                                              |      Discontinued operations |  | -$0.10 | -$0.15 | $0.05 |   |  |  | -$0.06 |
|  | ** **                                                                              | **  Basic net earnings percommon share** |  | **$2.26** | **$1.39** | **$0.87** | ** ** |  |  | **$1.95** |
|  | ** **                                                                              | ** ** |  | ** ** |  |  | ** ** |  |  | ** ** |
|  | ** **                                                                              | Diluted |  | ** ** |  |  | ** ** |  |  | ** ** |
|  | ** **                                                                              |      Continuing operations |  | $2.33 | $1.52 | $0.81 |   |  |  | $1.98 |
|  | ** **                                                                              |      Discontinued operations |  | -$0.10 | -$0.15 | $0.05 |   |  |  | -$0.06 |
|  | ** **                                                                              | **  Diluted net earnings percommon share** |  | **$2.23** | **$1.37** | **$0.86** | ** ** |  |  | **$1.92** |
|  |                                                                                    |   |  |   |  |  |   |  |  |   |
|  | Weighted average common sharesoutstanding (in thousands)                                |  |   |  |  |   |  |  |   |
|  |                                                                                    | Basic |  | 218,174 | 231,849 |  |   |  |  | 231,849 |
|  |                                                                                    | Diluted |  | 220,692 | 234,704 |  |   |  |  | 234,704 |
|  |                                                                                    |   |  |   |  |  |   |  |  |   |
|  | **Ratios as % of NetSales**                                                             |  | ** ** |  | **varbps** | ** ** |  |  | ** ** |
|  |                                                                                    | Gross profit |  | 46.3% | 43.4% | 296 |   |  |  | 43.3% |
|  |                                                                                    | Selling and administrativeexpenses |  | 12.9% | 13.1% | (23) |   |  |  | 13.1% |
|  |                                                                                    | Advertising costs |  | 11.0% | 9.7% | 128 |   |  |  | 9.7% |
|  |                                                                                    | Research and developmentcosts |  | 1.8% | 1.7% | 19 |   |  |  | 1.7% |
|  |                                                                                    | Operating profit |  | 20.6% | 18.9% | 172 |   |  |  | 18.8% |
|  |                                                                                    | Earnings before incometax |  | 19.3% | 14.0% | 539 |   |  |  | 17.5% |
|  |                                                                                    |   |  |   |   |   |   |  |  |   |
|  | (a)                                                                                     | Operating results of the Brazilbusiness are presented as discontinued operations. |  |  |  |  |  |  |
|  | (b)                                                                                     | Percentages based on numbers priorto rounding. |  |  |  |  |  |  |  |  |
|  | (c)                                                                                     | Pro-forma amountsexcludes Argentina asset impairment of $100 million (pretax) or $82million (after-tax), gain on divestitures of $33 million (pretax)or $23 million (after-tax) |  |  |
|  |                                                                                         | and special charges of $74 million(pretax) or $70 million (after-tax). |  |  |  |  |  |  |  |

*******************************************************************
|  | **The CloroxCompany**                                                                                                           |
|--|---------------------------------------------------------------------------------------------------------------------------------|
|  | **SupplementalVolume Growth Information**                                                                                       |
|  |                                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **Business Unit**                                                                                                               |  | **% Change vs.Prior Year** |  | **Major drivers ofchange** |
|  |                                                                                                                                 | **FY02** |   | **FY03** | ** ** | ** ** | ** ** | ** ** |  |
|  |                                                                                                                                 | **Q1** | **Q2** | **Q3** | **Q4** | **FY** |   | **Q1** | **Q2** | **Q3** | **Q4** | **FY** |  |
|  | ** **                                                                                                                      |  |   |   |   |   |   |  |   |  |   |   |   |  |  |
|  | Laundry Care                                                                                                                    |  | 2% | 0% | 3% | -3% | 1% |  | 3% | -4% | -3% | 1% | 0% |  | Q4 growth driven by merchandisingsupport for*Clorox 2. * Full-year decline in*Clorox2* shipments offset by volume growth for *Clorox OxygenAction.* |
|  | Home Care                                                                                                                       |  | -1% | -3% | 29% | 17% | 11% |  | 20% | 11% | -3% | -1% | 6% |  | Q4 decline due primarily to highbase for*Clorox ReadyMop* offset by recent productlaunches.  Full-year growth driven by new products andadvertising and promotion investments*.* |
|  | Water Filtration                                                                                                                |  | 4% | 3% | -15% | -5% | -4% |  | 11% | 4% | 14% | 0% | 8% |  | Full-year improvement behind newpitchers and strong faucet-mount growth. |
|  | Bags & Wraps                                                                                                                |  | 10% | 12% | 2% | -3% | 5% |  | -1% | 6% | 5% | 11% | 5% |  | Record Q4 and full-year shipmentsof *Glad* trash bags behind distribution gains andmerchandising. |
|  | **Total Household Products -North America**                                                                                     |  | **3%** | **3%** | **11%** | **2%** | **5%** |  | **7%** | **3%** | **-2%** | **2%** | **2%** |  |  |
|  | *Household, excludingdivestitures*                                                                                              |  | *3%* | *2%* | *11%* | *4%* | *5%* |  | *9%* | *5%* | *0%* | *2%* | *4%* |  | *Himolene*trash liner business was sold inQ3/FY02 |
|  |                                                                                                                            |  |   |   |   |   |   |  |   |  |   |   |   |  |  |
|  | Seasonal Products                                                                                                               |  | 8% | -11% | -5% | 0% | -1% |  | 0% | -9% | 5% | 1% | 1% |  | 9th consecutive quarter of highercharcoal shipments despite poor spring weather.  Full-yearcharcoal volume at record levels. |
|  | *Seasonal, excludingdivestitures*                                                                                               |  | *17%* | *20%* | *8%* | *6%* | *10%* |  | *8%* | *5%* | *10%* | *2%* | *6%* |  | *Maxforce*business sold in Q3/FY02.  *BlackFlag* sold in Q4/FY03. |
|  | Cat Litter                                                                                                                      |  | 11% | 7% | -2% | 4% | 5% |  | -3% | 3% | 2% | 1% | 1% |  | Litter growth for the quarter andyear behind line extensions, formula enhancements and promotionalsupport. |
|  | *Cat Litter, excludingdivestitures*                                                                                             |  | *14%* | *11%* | *-1%* | *6%* | *7%* |  | *-2%* | *7%* | *13%* | *10%* | *7%* |  | *Jonny Cat*litter business sold in Q2/FY03. |
|  | Auto Care                                                                                                                       |  | 26% | 7% | -1% | 1% | 7% |  | 0% | -1% | 7% | -3% | 1% |  | Q4 decline due to adverse weatherimpact on *Armor All* business and softness in the performancecategory.  Full year improvement driven by support behind*Armor All* Wipes**and launch of *Armor All* CarWash Wipes. |
|  | Dressing & Sauces                                                                                                           |  | 9% | -6% | 6% | 3% | 3% |  | 15% | 12% | 7% | 16% | 12% |  | Record Q4 shipments behind strongQ4 and full-year growth for both *Hidden Valley* bottled saladdressing**and *K C Masterpiece* sauces driven by newproducts, line extensions and advertising support. |
|  | **Total SpecialtyProducts**                                                                                                     |  | **13%** | **0%** | **-1%** | **2%** | **3%** |  | **2%** | **2%** | **5%** | **3%** | **3%** |  |  |
|  | *Specialty, excludingdivestitures*                                                                                              |  | *17%* | *7%* | *3%* | *5%* | *7%* |  | *4%* | *6%* | *9%* | *5%* | *6%* |  | *Maxforce*business sold in Q3/FY02, *Jonny Cat*litter business sold in Q2/FY03 and *Black Flag* sold inQ4/FY03. |
|  |                                                                                                                            |  |   |   |   |   |   |  |   |  |   |   |   |  |  |
|  | **Total Household Products -Latin America/Other**                                                                               |  | **6%** | **2%** | **0%** | **-5%** | **0%** |  | **-7%** | **-9%** | **-4%** | **3%** | **-4%** |  | Q4 volume gains in Latin Americaand Asia Pacific.  Full-year decline primarily due to economicsoftness and portfolio rationalization in Latin America. |
|  | *LatAm/Other, excludingdivestitures*                                                                                            |  | *6%* | *2%* | *1%* | *-3%* | *1%* |  | *-6%* | *-8%* | *-4%* | *4%* | *-3%* |  |  |
|  |                                                                                                                            |  |   |   |   |   |   |  |   |   |   |   |   |  |  |
|  | **Total Clorox**                                                                                                                |  | **6%** | **2%** | **5%** | **1%** | **3%** |  | **3%** | **1%** | **0%** | **2%** | **2%** |  |  |
|  | *Total, excludingdivestitures*                                                                                                  |  | *7%* | *4%* | *7%* | *3%* | *5%* | * * | *5%* | *3%* | *2%* | *4%* | *4%* |  |  |
|  | *Total North America, excl.divestitures*                                                                                        |  | *8%* | *4%* | *8%* | *4%* | *6%* | * * | *7%* | *5%* | *3%* | *3%* | *5%* |  |  |
|  | *Note: Household Products -Latin America/Other and total Clorox figures are restated toreflect Brazil discontinued operations.* |

*********************************************************

**The CloroxCompany**

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

**For the quarterended June 30, 2003**

# **Working Capital (WC)Update**

|                     | **Q4 ’03**

**($ million)** | **Q4 ’02**

**($ million)** | **Change**
**($ million)** | **Days**

**’03** | **Days**

**’02** | **Change** |
|---------------------|-----------------------------------|-----------------------------------|----------------------------|-------------------------|-------------------------|------------|
| Receivables, net    | 463                               | 481                               | -18                        | 36                      | 39                      | -3 days    |
| Inventories         | 264                               | 252                               | +12                        | 41                      | 41                      | 0 days     |
| Accounts payable    | 312                               | 330                               | -18                        | 47                      | 51                      | -4 days    |
| Accrued liabilities | 537                               | 510                               | +27                        |                         |                         |            |
| Total WC(1)         | -98                               | -27                               | -71                        |                         |                         |            |
| Avg WC% Netsales(2) | -1.7%                             | 0.0%                              | -1.7 pts                   |                         |                         |            |
|                     |                                   |                                   |                            |                         |                         |            |
- Accounts receivable declined dueto continued improvement in collections and Clorox’s termsprogram.
- Inventory was higher primarily toincreases in Dressings and Sauces behind new product launches andin Charcoal relating to a new sourcing agreement.
- Accounts payables and accruedliabilities taken together increased slightly as a result of highertax-related accruals offset by declines in accruals forprofessional services following SAP Phase Iimplementation.

### ****

### **Capital expenditures were $70million**

- $49 million related toinfrastructure improvements, cost savings and newproducts.
- $21 million for process andsystem implementation (“Project Delta”).

### **Depreciation and amortizationwas $49 million**

#### **Cash provided byoperations**

- Preliminary cash provided bycontinuing operations is $315 million, 27% of sales and 5% belowthe year-ago quarter, when the company had very strong workingcapital improvement.

#### **Sharerepurchases**

- This quarter the companyrepurchased a total of about 3.5 million shares at a cost of about$152 million

*Preliminary estimates. Final fullyear numbers will be published in our annual Form 10-K.

(1)Current assets minus current liabilitiesexcluding cash and short term debt.

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