This combination of two best-in-class consumer products companies, at a time when they are both operating from a position of strength, is a unique opportunity," said A.G. Lafley, chairman, president and chief executive of Procter & Gamble.  ""Gillette and P&G have similar cultures and complementary core strengths in branding, innovation, scale and go-to-market capabilities, making it a terrific fit.  We are pleased James M. Kilts, Gillette's chairman of the board, chief executive officer, and president will join P&G's Board of Directors and serve as P&G vice chairman - Gillette," Lafley continued.

"This marks the realization of an historic next phase of great opportunity for Gillette and also for P&G," said Kilts.  "It brings together two companies that are complementary in their strengths, cultures and vision to create the potential for superior sustainable growth."

"This merger is going to create the greatest consumer products company in the world," said Warren E. Buffett, chairman and CEO of Berkshire Hathaway Inc., Gillette's largest shareholder.  "It's a dream deal.  To quantify that, I intend to purchase enough shares so that by the time the deal is closed, we will have 100 million shares of P&G."   Berkshire Hathaway currently holds 96 million shares of Gillette stock which represents the equivalent of 93.6 million shares of P&G.

Strong Combination

Both companies are built on leadership brands.  P&G has 16 billion-       dollar brands.  Gillette brings five more, creating a portfolio of 21        billion-dollar brands.  The combined company will have the #1 global     market position in categories representing about two-thirds of total     sales.

Both companies have a strong heritage of innovation to delight        consumers.  In recent years, P&G and Gillette have accelerated their    portfolio shift to faster-growing, higher margin, more asset efficient      businesses providing greater value for their shareholders.

Both companies have global scale with their products being marketed
around the world.  Also, both companies have placed a high priority on
growth in developing markets.  P&G plans to leverage its go-to-market
apabilities and strong existing businesses to accelerate the        penetration of Gillette brands in developing markets such as China,       Russia, Mexico, Turkey and others.

Both companies have complementary expertise in health and personal
care. Historically, P&G has had strength in women's personal care with  brands such as Olay, Always, Tampax, Cover Girl and Max Factor.  Gillette has deep knowledge in the men's grooming category with the entire lineup of Gillette and Braun products.  The companies lso share complementary technology platforms in skin care and particularly in oral care with the Crest  and Oral-B franchises.

Combined, the companies will have annual sales of more than $60 billion, eclipsing Unilever Plc as the world's largest consumer products company. Their portfolio will include Tide laundry detergent, Pampers diapers, Gillette razors and Duracell batteries.