Revlon Reports Strong Second Quarter 2008 Results

Business Wire, July 31, 2008

Operating income was $91.9 million in the first six months of 2008, versus $19.9 million in the first six months of 2007. Net income in the first six months of 2008 was $17.4 million, or $0.03 per fully diluted share, compared with a net loss of $46.5 million or a loss of $0.09 per share, in the first six months of 2007. Adjusted EBITDA was $139.8 million in the first six months of 2008, compared to $74.3 million in the same period last year. Operating income, Adjusted EBITDA and net income in the first six months of 2008 include a net gain of $5.7 million, $5.9 million and $4.9 million, respectively, related to the sale of a facility in Mexico. Operating income, Adjusted EBITDA and net income in the first six months of 2008 also include a net gain of $5.9 million related to the sale of a non-core trademark.

U.S. Share Results(2)

U.S. mass retail share results, according to ACNielsen, for the Revlon and Almay color cosmetics brands, and for women's hair color, anti-perspirants and deodorants, and beauty tools for the second quarter of 2008 are summarized in the table below:

[TABLE OMITTED]

Color Cosmetics

In terms of U.S. mass retail share performance, according to ACNielsen, the color cosmetics category grew 4.4% in the second quarter of 2008 compared to the same period last year.

Revlon Brand Color Cosmetics

The Revlon brand continued to maintain an approximate 13% dollar share in the second quarter of 2008, in line with its quarterly performance since the fourth quarter of 2006.

Importantly, Revlon brand mass retail share in June 2008 was 14.0%, up 0.5 points compared to June 2007 and up 1.5 points compared to May 2008 reflecting new product performance, effective brand communication and competitive levels of brand support.

As of June 2008, products launched in the first half of 2008 were substantially in full distribution. Two products from this launch, Revlon Custom Creations foundation and Revlon ColorStay Mineral foundation, continue to be ranked in the ACNielsen top 10 new products (by retail dollar sales) through June 2008.

Almay Brand Color Cosmetics

In the second quarter 2008, Almay continued to maintain an approximate 6% dollar share, in line with its quarterly performance since the fourth quarter of 2006. Almay's positive performance in the face category was driven primarily by Almay TLC Foundation and Almay Smart Shade Blush and Bronzer, which were launched in the first half of 2008 and second half of 2007, respectively.

Women's Hair Color

The Women's hair color category declined by 0.4% in the second quarter of 2008 compared to the same period last year. Revlon ColorSilk recorded a 7.9% dollar share in the second quarter 2008, up 0.2 points compared to the year-ago period, with dollar volume up 2.8% versus the year-ago period.

Anti-perspirants / deodorants

The anti-perspirants/deodorants category increased by 2.5% in the second quarter of 2008 compared to the same period last year. In the second quarter 2008, Mitchum continued to maintain an approximate 5% dollar share, in line with its quarterly performance since the third quarter of 2007.