Playtex Products, Inc. Updates Refinancing Plans And Recent Trends.

Business Editors

WESTPORT, Conn.--(BUSINESS WIRE)--Jan. 30, 2004

Playtex Products, Inc. (NYSE: PYX), a leading diversified personal care and consumer products company, today announced the proposed refinancing of its senior credit facility and its Accounts Receivable facility. Assuming completion of the sale of $450 million of Senior Secured Notes, which are callable under certain conditions during the next three years, the Company's capital structure will provide greater flexibility and liquidity to pursue our stated strategy as it will eliminate maintenance covenants and near term amortization requirements. The Company will also replace its Accounts Receivable facility with a revolving credit facility that will be subject to borrowing base limitations but will allow for increased borrowing availability as the Company grows.

In order to comply with its obligations under Regulation FD, the Company is providing the following recent developments update. Additional information regarding the Company is contained in its current report on form 8-K filed today with the Securities and Exchange Commission.

The Company will report diluted earnings per share of $0.30 for the full year 2003. This reflects earnings per share of $0.37 less approximately $0.05 of charges related to operational restructuring and $0.02 of charges recorded for legal services and other expenses incurred in connection with the review of strategic alternatives.

The operational restructuring charges and other related costs of $0.05 per diluted share, or $4.6 million, are higher than the previous guidance of $0.02 to $0.03 as a result of additional savings initiatives that will impact 2004 and be fully implemented by 2005. We expect there will be additional charges of approximately $4 million in 2004 for the restructuring efforts. These charges include consulting fees to an outside firm that was engaged to facilitate the evaluation and implementation of the project plus headcount related costs including severance and pension adjustments. It is estimated that the savings realized, excluding related costs, will be approximately $6 to $7 million in 2004 and $12 to $14 million in 2005. In addition, the Company expects to reduce working capital requirements by approximately $9 million over the next two years as part of this initiative to enhance the effectiveness of its supply chain process.

Net Sales of $146.7 million for fourth quarter of 2003 compare with prior year results of $159.2 million. Net Sales are $657.7 million for the full year 2003 versus ...