Procter & Gamble To Build New Tissue And Towel Capacity

CINCINNATI, Dec. 10, 2002 - Procter & Gamble will increase its tissue and towel manufacturing capacity by constructing a new machine at its facility in Cape Girardeau, Mo.

Cape Girardeau was selected to take advantage of the synergies with P&G's present site and due to good proximity to growing markets. The company will build a new paper machine and associated converting equipment at the plant, which will together add approximately 80,000 tons of annual capacity. The new machine will begin operating by the second half of 2004.

P&G's tissue and towel business has grown consistently over the past five years. This increase in demand has been supported by: 1) building new paper machines at P&G's plants in Mehoopany, Pa. and Cape Girardeau, Mo. 2) rebuilding paper machines at its other U.S. paper products plants to run at higher speeds; and 3) improving the efficiencies of existing equipment.

"Our paper products continue to win with consumers because our proprietary technologies enable us to offer quality products with unique performance advantages at a good value," said Nancy Swanson, vice president and general manager of P&G's North American Family Care business. "By building new capacity at a continuous pace, we can keep introducing innovative products to better meet the needs of today's consumers."

During the past few months, P&G Family Care has launched several new products: · Improved Charmin Ultra which utilizes unique, proprietary softening technology to deliver a softer, thicker and more absorbent bath tissue · Charmin Fresh Mates Cloths, a consumer-preferred, flushable wet wipe which offers consumers a larger, thicker, better scented product

There will be a groundbreaking ceremony held at the Cape Girardeau plant at 1:30 p.m. on Friday, Dec. 13, 2002.

P&G is celebrating 165 years of providing trusted quality brands that make every day better for the world's consumers. We market nearly 300 brands - including Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Bounty®, Pringles®, Folgers®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Actonel®, Olay® and Clairol Nice 'n Easy® - in more than 160 countries around the world. The P&G community consists of nearly 102,000 employees working in almost 80 countries worldwide. Please visit www.pg.com for the latest news and in-depth information about P&G and its brands.