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Avon to Realign U.S. Manufacturing Operations

Production to Be Shifted From Suffern, NY to Springdale, OH

PRNewswire
May 23, 2002

NEW YORK, May 23 /PRNewswire-FirstCall/ Avon Products, Inc. (NYSE: AVP) today announced a realignment of its U.S. manufacturing operations that will result in the phase-out of its Suffern, NY manufacturing over the next twelve months. The majority of the production will be transferred to a larger and more modern Avon manufacturing facility in Springdale, OH, which has available space and a more efficient configuration.

Avon said that after a thorough review, it concluded that its current Suffern manufacturing facility, due to age and structural limitations, is not suited for improved operating efficiency. Suffern has been a manufacturing site for Avon since 1897 and is currently used to make lipsticks and other color cosmetics products.

"This decision was extremely difficult and was not taken lightly, especially since our Suffern manufacturing associates are an extremely dedicated and hard-working group," said Lou Mignone, group vice president, supply chain, for Avon's U.S. business.

"However, in evaluating the options, moving the Suffern-based manufacturing production to the larger, more modern facility in Springdale is the right business decision for Avon," Mr. Mignone said. "This action is part of our ongoing reengineering of the U.S. supply chain, which will help make Avon more efficient, reduce expenses, and free-up resources that can be reinvested for future growth."

Avon said approximately 260 positions will be eliminated at Suffern, and it expects to add approximately 200 new jobs at Springdale.

Avon said that the plan to realign U.S. manufacturing is part of the company-wide Business Transformation strategy announced in 2001, that includes a series of initiatives designed to make Avon a more efficient and globally-integrated company.

Avon is the world's leading direct seller of beauty and related products, with approximately $6 billion in annual revenues. Avon markets to women in 143 countries through 3.5 million independent sales Representatives. Avon product lines include such recognizable brands as Avon Color, Anew, Skin-So-Soft, Advance Techniques Hair Care, beComing and Avon Wellness. Avon also markets an extensive line of fashion jewelry and apparel. More information about Avon and its products can be found on the company's web site http://www.avon.com/ .

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SOURCE: Avon Products, Inc.

Contact: Media - Victor Beaudet, +1-212-282-5344, Investors -
Renee Johansen or Rob Foresti, +1-212-282-5320, all for Avon Products, Inc.

Website: http://www.avon.com/

Company News On-Call: http://www.prnewswire.com/comp/079575.html

 
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