Block Drug Reports Gains

Block Drug Company, Inc. today announced gains in sales and earnings for the second fiscal quarter and six months ended September 30, 2000. Excluding the effects of foreign currencies against the U.S. dollar, net sales for the second quarter were $223,393,000, 8.7% higher than the comparable prior year quarter’s results. After accounting for the currency effects, reported net sales for the second quarter were $215,165,000 compared to $205,475,000, a 4.7% increase. Reported net income was $15,340,000, 10.5% higher than the prior year comparable quarter’s results of $13,878,000.

For the sixth month period, excluding the effects of foreign currencies against the U.S. dollar, net sales were $437,369,000, an increase of 6.1% over the prior year six month results of $399,430,000. Reported net income was $29,940,000, 10.8% higher than the prior year six month results of $27,025,000.

“Our results to date have been especially strong in our international markets wherein we recorded double-digit increases in virtually every country in which we operate a subsidiary,” said James A. Block, chairman. “In Japan, the Australia group, Spain, Portugal and Scandinavia, increases were exceptional. This is a reflection of our success in marketing and selling both established brands and recently acquired brands.”

On June 6th, Block Drug announced that it had retained Goldman Sachs to assist the Company in a review of its strategic options. On October 9, 2000, SmithKline Beecham (SB) and Block announced an agreement for SB to acquire the Company for $1.24 billion or $53.00 per share. Completion of the transaction is subject to regulatory clearance, both in the US and Europe.