Revlon Updates Outlook for 2006 and Beyond; Provides Status of Vital Radiance and Almay Brand Initiatives and Capital Structure Plans

Business Wire, June 2, 2006

NEW YORK -- Revlon, Inc. (NYSE: REV) today announced updates to its outlook for 2006 and beyond and provided an update on its Vital Radiance and Almay initiatives as well as its capital structure plans. In making the announcements, the Company indicated that it expects strong revenue growth in 2006, although this growth is now expected to be lower than previously planned.

The Company indicated that its revised revenue outlook, while still strong, reflects less robust growth from Vital Radiance and Almay due to stepped up competitive activity, as well as less effectiveness from certain of the Company's revenue driving actions. The Company indicated that it is continuing to take important and appropriate steps intended to create long-term value and build its brands, including continuing to invest in its brand initiatives, while continuing to take appropriate and aggressive actions to reduce costs. The Company noted that it believes Vital Radiance is a compelling consumer proposition and will work with its retail partners to optimize the new brand's productivity and retail presentation, which could result in the reconfiguration or reduction of the Vital Radiance retail display space in certain retailers.

Revlon indicated that, given its revised revenue outlook, it now expects Adjusted EBITDA(1) will be at or below 2005 levels, with a significant impact on the second quarter of this year. Adjusted EBITDA is a non-GAAP measure, which is defined in the footnote to this press release.

The Company also announced that it intends to defer its $75 million equity offering to later in 2006 or early 2007 and will defer consideration of the previously-announced proposed refinancing of its current credit facility. The Company's existing revolving credit facility and term loan expire in July 2009 and July 2010, respectively. To ensure the Company raises the planned $75 million in equity, MacAndrews & Forbes, Revlon's principal shareholder, has agreed to extend its backstop until the consummation of such offering. In addition, as previously announced, the $87 million MacAndrews & Forbes line of credit will remain available to the Company through the completion of the $75 million equity issuance. MacAndrews & Forbes, Revlon's principal shareholder, stated, "We continue to believe in the long-term value of the Revlon business and its brands and, as a result, we have extended our backstop support."

In terms of the Company's longer-term outlook, Revlon indicated that it will continue to invest to support and build its brands, while continuing to focus over the long-term on improving its margin structure through the Company's ongoing productivity initiatives. These include: (i) reducing cost of goods sold through, among other things, ongoing value analysis, strategic sourcing and package rationalization activities; (ii) reducing returns though product lifecycle management and promotional redesign initiatives, among other actions; and (iii) reducing costs in other areas via strategic sourcing and aggressive management of discretionary spending. The Company indicated that it continues to target a significant improvement in its operating profit margin over time, but that it no longer expects a 12% operating margin by the end of 2008, despite good progress being made in cost of goods and administrative expenses.

Commenting on the announcements, Revlon President and CEO Jack Stahl stated, "Our initiatives are delivering significant incremental revenue growth in 2006, although they are requiring significant levels of investment to build consumer awareness and trial--particularly of Vital Radiance--due in part to the heightened competitive environment. We believe that these investments, along with our other actions to build the value of our brands, strengthen our retail relationships and reduce costs, will benefit the value of our Company over time."

The Company will host a conference call with members of the investment community on June 2, 2006 at 12:00 P.M. EDT to discuss this release. Access to the call is available to the public at www.revloninc.com.

About Revlon

Revlon is a worldwide cosmetics, skin care, fragrance, and personal care products company. The Company's vision is to deliver the promise of beauty through creating and developing the most consumer preferred brands. Websites featuring current product and promotional information can be reached at www.revlon.com, www.almay.com, www.vitalradiance.com and www.mitchumman.com. Corporate and investor relations information can be accessed at www.revloninc.com. The Company's brands include Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R), Flex(R), and Mitchum(R).

Footnote to Press Release

(1)Adjusted EBITDA is a non-GAAP financial measure defined as net earnings before interest, taxes, depreciation, amortization, gains/losses on foreign currency transactions, gains/losses on the sale of assets, gains/losses on the early extinguishment of debt and miscellaneous expenses. In calculating Adjusted EBITDA, the Company excludes the effects of gains/losses on foreign currency transactions, gains/losses on the sale of assets, gains/losses on the early extinguishment of debt and miscellaneous expenses because the Company's management believes that some of these items may not occur in certain periods, the amounts recognized can vary significantly from period to period and these items do not facilitate an understanding of the Company's operating performance. The Company's management utilizes Adjusted EBITDA as an operating performance measure in conjunction with GAAP measures, such as net income and gross margin calculated in accordance with GAAP.