Media Contact:
Emily Parker, 919/515-6529
Joshua Hammond, 513/762-1708

Nov. 26, 2002

Procter & Gamble Donates Patents to College of Textiles

FOR IMMEDIATE RELEASE

The Procter & Gamble Company (NYSE: PG) has donated to North Carolina State University 37 patents, patent applications and accompanying intellectual property related to a significant advancement in textile production technology. P&G has developed technology that could potentially lower the temperatures and therefore cost at which textiles are manufactured through the use of cationic peroxide bleach activators.

In the typical textile production and dyeing process, it is necessary to initially remove the impurities and pigments that occur naturally on raw cotton. These impurities and pigments make cotton yellow-brown in color and naturally water repellant. In addition, these natural qualities can inhibit the even dyeing and color matching of textiles. Traditionally, these impurities are removed by heating cotton to high temperatures with caustic hydrogen peroxide at great cost and significant use of electricity. The use of cationic activators results in much milder bleaching conditions and allows the cotton textile to retain more of its fiber strength versus the high temperature bleaching which is in widespread use today. The use of cationic activators with hydrogen peroxide will permit this important step to be completed at near room temperature, yielding a more efficient and effective process.

"P&G's mission is to help bring better products to the consumer. We are confident that North Carolina State University is more than qualified to bring this important technology forward," said Dr. David Kitko, associate director of Fabric and Home Care at Procter & Gamble. "With its world class reputation in the development of textile technology, NC State University will continue the development of this technology so that it may one day improve and strengthen the fabrics we produce and the clothes we wear."

P&G is currently focusing its fabric and home care research and development in other promising areas. The company hired an outside consultant to choose the most qualified institution to further develop and commercialize the cationic peroxide activator technology. NC State University was chosen because of its expertise in textile technology development. Once at NC State, the cationic peroxide activator technology will require further development and testing before it can be fully integrated into textile production. As sole new owners of the technology, NC State will benefit from all future revenues if it is successfully developed and commercialized.

Cationic peroxide activators is a novel P&G invention that shows promise in permitting an effective, pre-processing bleaching of raw cotton at room temperature. The use of high temperatures in the cleaning and dyeing of cotton textiles lowers the final tensile strength of the fabric. However, the use of cationic peroxide activators at room temperature has the potential of increasing the strength of fabrics by as much as 25 percent. In addition, the successful development and use of cationic peroxide activators could permit a wider range of fabrics to be treated with a permanent press finish. This invention, while technical in nature, is expected to have a significant economic impact on textile production and the manufacture of new types and long-lasting articles of clothing.

The cationic peroxide activators technology is P&G's second technology gift to NC State. In November 2000, the P&G also donated its Fiber Fractionation Paper Recycling Process Enhancement technology to NC State, which allows for a more efficient paper recycling process. Dr. Medwick Byrd, assistant professor in the Department of Wood and Paper Science, has moved the technology from the laboratory into pilot scale production and expects commercialization in 2003-2004.

"We are thrilled that NC State will be able to continue the development of the cationic activators technology," said Dr. Keith Beck, professor and head of the textile engineering, chemistry and science department. "Utilizing the development expertise at NC State joined with this donation from P&G underscores the importance of innovative public/private cooperation in research. The results of this donation could have a beneficial impact on the entire textile industry."

NC State, a leader in science, engineering, and technology, is educating students for the 21st century and inspiring future leaders. NC State forges unique partnerships that generate economic development, and applies research discoveries that benefit everyone in North Carolina and across the United States.

P&G markets nearly 300 brands to five billion consumers in 160 countries. P&G makes a significant annual investment in developing and improving its products - leading the way in R&D globally among consumer products companies. P&G's External Business Development and Global Licensing organization is charged with ensuring the company maximizes the value of its "treasure trove" of technologies by selling, licensing and, in some cases, donating these technologies. The unit is also responsible for licensing select P&G brand trademarks.

- 30 -