FOR IMMEDIATE RELEASE

                  THE PROCTER & GAMBLE COMPANY - SECOND QUARTER
                                 2001/02 UPDATE


         CINCINNATI, Dec. 11, 2001 - Procter & Gamble today stated that it
expects volume, sales and earnings growth for the December 2001 quarter to be at
the upper end of prior guidance. Core earnings per share growth is expected to
be at the top end of the previously communicated low to mid single digit range
and as a result, core earnings per share is expected to be two to three cents
higher than current Wall Street analyst estimates. This improvement is after
adjusting the base period for comparable accounting treatment for goodwill and
intangible assets.

         Roughly half of the earnings improvement versus the Wall Street
consensus estimate is driven by sales and volume increases. Both sales and
volume are expected to increase at the upper end of previous guidance of low
single digit growth (+1 to 3%). The company continues to project an operating
margin increase of 50 to 100 basis points. The balance of the earnings
improvement is due to the acceleration of non-operating income into the December
quarter. As recently disclosed, the company sold part of its equity stake in
Regeneron Pharmaceuticals Inc., which was executed in November 2001 via a
private equity placement.

         P&G President & Chief Executive A. G. Lafley said, "Despite significant
economic uncertainties that continue to exist in the global market place, we are
seeing satisfactory volume progress in all regions, with health care and beauty
care delivering particularly strong growth."

         Lafley continued, "P&G's ongoing focus on core categories, big brands,
big countries and big customers -- combined with a relentless drive for cost and
cash efficiencies -- are generating clear improvements in our bottom line
results. In addition, we have a strong initiative program in the second half of
the fiscal year, which should accelerate top line growth."

         Procter & Gamble confirmed today that it would be expanding its
Pampers(R) Baby Stages of Development diaper initiative in North America in
February 2002. In addition, the company has already announced a number of major
initiatives for the January to June 2002 period such as, Crest Spinbrush(R) with
replaceable heads, ThermaCare(R), an over-the-counter therapeutic heat wrap for
pain relief in muscles and joints, and Torengos(R), a stackable tortilla snack.

         "P&G's improving cashflow and cost structure means that we have the
financial flexibility to invest behind promising innovations on established and
new brands. This will help us emerge from the economic recession and our
organization transition with growth momentum on both our top and bottom line. As
a result, we will be well-positioned to deliver our long term financial goals,"
Lafley concluded.

         For fiscal 2002, P&G said it remains comfortable with the guidance
provided earlier. Core earnings per share are expected to grow at a rate that
exceeds last fiscal years growth, but not yet at the company's long term growth
target of double digits. Sales, excluding foreign exchange impacts, should grow
at a rate faster than last year but not yet at the company's long term growth
target of 4-6%. Foreign exchange is expected to negatively affect the top-line
growth by 1-2%. The estimates include the impact on the results from the
Clairol(R) acquisition and the planned spin merger of the Jif(R) and Crisco(R)
brands to the J. M. Smucker Company, both of which are expected to dilute
earnings per share in the second half of the fiscal year.

         All statements, other than statement of historical fact included in
this news release, are 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 the
statements made. These include foreign currency volatility and any related
effects, any adverse effects related to or arising out of the events of
September 11, 2001, the successful integration of the Clairol business, the
closing of the Jif/Crisco transaction with the J.M. Smucker Company, general
economic conditions in the U.S. and other major markets for P&G, the successful
launch of new brands and initiatives, the successful ongoing transition of P&G
to the Organization 2005 structure and the achievement of the business unit
volume and earnings growth projections.

         P&G markets more than 250 brands including Pampers(R), Tide(R),
Ariel(R), Always(R), Whisper(R), Pantene(R), Bounty(R), Pringles(R), Folgers(R),
Charmin(R), Downy(R), Lenor(R), Iams(R), Olay(R), Crest(R), Vicks(R) and
Actonel(R). P&G employs nearly 106,000 people in more than 80 countries
worldwide. For more information about P&G, please visit our website at
www.pg.com.

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P&G Contacts:
Linda L. Ulrey - (513) 983-8975
Martha W. Depenbrock - (513) 983-5366