Exhibit 99

                           AMERICAN WHITE CROSS, INC.
                  ANNOUNCES COMPLETION OF STRATEGIC DIVESTITURE

     DAYVILLE, CT., April 23, 1997 -- American White Cross, Inc. - DIP (AWCI)
(Nasdaq: AWCIQ) today announced that it has completed the divestiture of its
cotton products business pursuant to the agreement announced on March 21, 1997.
The cotton products business, which consists of the manufacture and distribution
of pharmaceutical coil, cotton swabs, cosmetic puffs, rounds and squares, cotton
balls and cotton rolls, was sold to Megas Beauty Care, Inc., a division of
American Safety Razor, Inc. (Megas).

     The primary terms of the transaction include purchase consideration of
$9,800,000, of which $8,300,000 was paid at the closing and the remaining
$1,500,000 was placed in an escrow account. Under the terms of a supply
agreement, AWCI will manufacture cotton products for Megas, utilizing equipment
sold to Megas, for up to nine months in order to allow a smooth transition for
customers of both companies.

     The net proceeds received by AWCI were paid to secured creditors and
lessors asserting interest in the assets sold to Megas in satisfaction of a
portion of the Company's outstanding obligations. The sale to Megas is expected
to facilitate the Company's efforts to successfully reorganize in its pending
Chapter 11 case.

     The divestiture of the cotton products business is intended to allow AWCI
to focus on its core first aid business, which includes adhesive bandages,
medical tapes, sterile bandages, operating room sponges, esmark bandages and
other first aid related products. The Company also sells adhesive bandages under
its own national brands, including Looney Tunes(TM) (marketed under license from
the Warner Bros. Division of Time Warner Entertainment Company L.P.) and
STAT-STRIP(R) (easy opening bandages).