FOR IMMEDIATE RELEASE


                 P&G REACHES AGREEMENT IN SECURITIES LITIGATION
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     CINCINNATI, June 8, 2001-The Procter & Gamble Company today announced it
has reached an agreement in principle to settle the securities class action
litigation filed against it in connection with the company's March 2000 earnings
announcement. Under the agreement, the company will pay $49 million in cash. The
settlement is subject to confirmatory discovery, final documentation and court
approval. Details regarding the settlement will be communicated to potential
class members prior to final court approval.

     "In the end, this was a business decision," said P&G president and chief
executive A. G. Lafley. "The settlement in no way changes our belief that we
have always complied fully with our obligations under the securities laws.
Nonetheless, we are pleased to put the matter behind us and eliminate this
distraction from our single-minded focus on restoring the company's long-term
growth."

     The company confirmed it remains comfortable with the range of analysts'
estimates for core earnings-per-share growth for the quarter. This includes the
estimated impact of the securities litigation settlement on core earnings.

     This news release contains forward-looking statements, as that term is
defined in the Private Securities Litigation Reform Act of 1995. In addition to
the risks and uncertainties noted in this news release, there are certain
factors that could cause results to differ materially from those anticipated by
some of the statements made. These include the receipt of final court approval
of the settlement described in this release, the achievement of the business
unit volume and income growth projections, the achievement of the company's cost
containment goals, and the timely divestiture of assets within the company's
ongoing minor brand divestiture program, as well as factors listed in
Management's Discussion and Analysis of Financial Condition and Results of
Operations in the company's most recently filed Forms 10-K and 8-K.

     Procter & Gamble markets approximately 300 brands to nearly five billion
consumers in over 140 countries. These brands include Tide(r), Ariel(r),
Crest(r), Pantene Pro-V(r), Always(r), Whisper(r), Pringles(r), Pampers(r),
Olay(r), Iams(r) and Vicks(r). Based in Cincinnati, Ohio, USA, P&G has
on-the-ground operations in over 70 countries. For more information on P&G and
its products, please visit our worldwide website at http://www.pg.com.

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P&G CONTACTS:
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Linda Ulrey     (513) 983-8975
Martha Depenbrock       (513) 983-5366