Revlon Reports Strong Preliminary Second Quarter 2008 Results

Net Sales Increase Approximately 8% and Profitability Improves

Significantly

Revlon Brand New Products Drive Increase in June ACNielsen U.S. Mass

Retail Share to 14%

NEW YORK–(EMWNews)–Revlon, Inc. (NYSE: REV) today announced preliminary results for the

second quarter ending June 30, 2008.

Preliminary second quarter 2008 financial results, compared to the

second quarter of last year:

• Net sales of approximately $375 million, compared to $349.2 million.

• Operating income of approximately $60 million, compared to $16.9

  million.

• Net income of approximately $20 million, compared to a net loss of

  $11.3 million.

• Adjusted EBITDA¹ of approximately $80

  million, compared to $42.0 million.

Commenting on today’s announcement, Revlon

President and Chief Executive Officer David Kennedy said, “Our

strong preliminary results in the second quarter continue to validate

our strategy. We continue to focus on the key drivers, including:

innovative, high-quality, consumer-preferred new products; effective,

integrated brand communication; competitive levels of advertising and

promotion; and superb execution with our retail partners, which build

our brands, particularly the Revlon brand, and generate sustainable,

profitable sales growth. We also remain focused on controlling our costs

and driving efficiencies throughout our organization, which continue to

positively impact our margins and cash flows.”

Preliminary Second Quarter Results

Net sales in the second quarter of 2008 increased by 8% to approximately

$375 million, compared to net sales of $349.2 million in the second

quarter of 2007. Excluding the favorable impact of foreign currency

fluctuations, net sales in the second quarter increased approximately 6%

versus year-ago.

In the United States, net sales in the second quarter of 2008 increased

6% to approximately $215 million, compared to net sales of $204.2

million in the second quarter of 2007. The primary driver of the second

quarter net sales growth was higher shipments of Revlon color cosmetics,

largely due to 2008 new product launches, including initial shipments of

our more extensive second half 2008 new product lineup.

In the Company’s international operations, net

sales in the second quarter of 2008 increased 10% to approximately $160

million, compared to net sales of $145.0 million in the second quarter

of 2007. Excluding the favorable impact of foreign currency

fluctuations, net sales in the second quarter of 2008 increased 5%

compared to the same period last year, reflecting primarily higher

shipments of Revlon color cosmetics products launched in 2008. Each of

the company’s international regions, namely,

Asia Pacific, Europe, and Latin America, experienced net sales growth

and margin expansion in the second quarter of 2008 compared to the

year-ago quarter.

Operating income was approximately $60 million in the second quarter of

2008, versus $16.9 million in the second quarter of 2007. Net income in

the second quarter of 2008 was approximately $20 million, or $0.04 per

fully diluted share, compared with a net loss of $11.3 million, or $0.02

per share, in the second quarter of 2007. Adjusted EBITDA was

approximately $80 million in the second quarter of 2008, compared to

$42.0 million in the same period last year.

Operating income, net income and Adjusted EBITDA in the second quarter

of 2008 improved significantly compared to the same period last year,

primarily driven by higher net sales and the non-recurrence of brand

support in the second quarter of 2007 related to the launch of Revlon

Colorist hair color. The Company continued to support its brands

worldwide with comparable levels of dollar spending in the second

quarter of 2008 compared to the second quarter of last year, excluding

the prior year brand support on Revlon Colorist, as noted above.

Operating income and Adjusted EBITDA in the second quarter of 2008

include a net gain of approximately $6 million related to the sale of a

facility in Mexico. The expected full year impact of the sale of the

facility in Mexico will be approximately $4 million, after recording

restructuring and other related charges in the second half of the year.

Adjusted EBITDA is a non-GAAP measure that is defined in the footnotes

to this release and is reconciled to net income/(loss), the most

directly comparable GAAP measure, in the accompanying financial tables.

U.S. Share Results²

In terms of U.S. mass retail share performance, according to ACNielsen,

the color cosmetics category grew 4.4 percentage points in the second

quarter of 2008 compared to the same period last year. U.S. mass retail

share results for the Revlon and Almay color cosmetics brands, and for

women’s hair color, anti-perspirants and

deodorants, and beauty tools for the second quarter of 2008 are

summarized in the table below:

	$ Share %
							Point
	Q2 2008			Q2 2007			Change
Revlon Brand Color Cosmetics	13.0			13.3			(0.3)
Almay Brand Color Cosmetics	5.7			6.1			(0.4)
Women’s Hair Color	10.0			11.3			(1.3)
Anti-perspirants / deodorants	5.4			5.9			(0.5)
Revlon Beauty Tools	17.9			23.9			(6.0)

The Revlon brand continued to maintain an approximate 13% dollar share

in the second quarter of 2008, in line with its quarterly performance

since the fourth quarter of 2006.

Importantly, in the U.S., Revlon brand mass retail share in June 2008

was 14.0%, up 0.5 points compared to June 2007 and up 1.5 points

compared to May 2008 reflecting new product performance, effective brand

communication and effective brand support. As of June 2008, products

launched in the first half of 2008 were substantially in full

distribution. Two products from this launch, Revlon Custom Creations

foundation and Revlon ColorStay Mineral foundation continue to be ranked

in the ACNielsen top 10 new products (by retail dollar sales) in the

latest available data.

In the second quarter 2008, Almay continued to maintain an approximate

6% dollar share, in line with its quarterly performance since the fourth

quarter of 2006. Almay’s positive performance

in the face category was driven primarily by Almay TLC Foundation and

Almay Smart Shade Blush and Bronzer, which were launched in the first

half of 2008 and second half of 2007, respectively.

Retail dollar sales of Revlon beauty tools, as measured by ACNielsen,

grew at approximately 2% in the second quarter 2008. The beauty tools

category expanded significantly in the second quarter 2008, driven by a

single-product introduction by a non-traditional beauty tools category

participant.

Company Strategy

The Company continues to focus on its strategy: (i) building and

leveraging its strong brands; (ii) improving the execution of its

strategies and plans, and providing for continued improvement in its

organizational capability through enabling and developing its employees;

(iii) continuing to strengthen its international business; (iv)

improving its operating profit margins and cash flow; and (v) improving

its capital structure.

Outlook

In conclusion, Mr. Kennedy said, “We have

demonstrated continued progress in the first half of the year and are

realizing the benefits of executing our strategy. We believe that our

focus on the key drivers, including: innovative, high-quality,

consumer-preferred new products; effective, integrated brand

communication; competitive levels of advertising and promotion; and

superb execution with our retail partners should continue to generate

sustainable, profitable sales growth and positive free cash flow.”

Second Quarter 2008 Results and

Conference Call

The Company will host a conference call with members of the investment

community on July 31, 2008 at 9:30 A.M. EDT to discuss results of the

second quarter. Access to the call is available to the public at www.revloninc.com.

About Revlon

Revlon is a worldwide cosmetics, hair color, beauty tools, fragrances,

skincare, anti-perspirants/deodorants and personal care products

company. The Company’s vision is to provide

glamour, excitement and innovation to consumers through high-quality

products at affordable prices. Websites featuring current product and

promotional information can be reached at www.revlon.com,

www.almay.com and www.mitchumman.com.

Corporate and investor relations information can be accessed at www.revloninc.com.

The Company’s brands, which are sold

worldwide, include Revlon®, Almay®,

Mitchum®, Charlie®,

Bozzano®, Gatineau®

and Ultima II®.

Footnotes to Press Release

¹Adjusted EBITDA is a non-GAAP financial

measure that is reconciled to net income/(loss), its most directly

comparable GAAP measure, in the accompanying financial tables. Adjusted

EBITDA is defined as net earnings before interest, taxes, depreciation,

amortization, gains/losses on foreign currency transactions,

gains/losses on the early extinguishment of debt and miscellaneous

expenses. In calculating Adjusted EBITDA, the Company excludes the

effects of gains/losses on foreign currency transactions, gains/losses

on the early extinguishment of debt and miscellaneous expenses because

the Company’s management believes that some of these items may not occur

in certain periods, the amounts recognized can vary significantly from

period to period and these items do not facilitate an understanding of

the Company’s operating performance. The Company’s management utilizes

Adjusted EBITDA as an operating performance measure in conjunction with

GAAP measures, such as net income and gross margin calculated in

accordance with GAAP.

The Company’s management uses Adjusted EBITDA as an integral part of its

reporting and planning processes and as one of the primary measures to,

among other things —

(i) monitor and evaluate the performance of the Company’s business

operations;

(ii) facilitate management’s internal comparisons of the Company’s

historical operating performance of its business operations;

(iii) facilitate management’s external comparisons of the results of its

overall business to the historical operating performance of other

companies that may have different capital structures and debt levels;

(iv) review and assess the operating performance of the Company’s

management team and as a measure in evaluating employee compensation and

bonuses;

(v) analyze and evaluate financial and strategic planning decisions

regarding future operating investments; and

(vi) plan for and prepare future annual operating budgets and determine

appropriate levels of operating investments.

The Company’s management believes that Adjusted EBITDA is useful to

investors to provide them with disclosures of the Company’s operating

results on the same basis as that used by the Company’s management.

Additionally, the Company’s management believes that Adjusted EBITDA

provides useful information to investors about the performance of the

Company’s overall business because such measure eliminates the effects

of unusual or other infrequent charges that are not directly

attributable to the Company’s underlying operating performance.

Additionally, the Company’s management believes that because it has

historically provided Adjusted EBITDA in previous press releases, that

including such non-GAAP measure in its earnings releases provides

consistency in its financial reporting and continuity to investors for

comparability purposes. Accordingly, the Company believes that the

presentation of Adjusted EBITDA, when used in conjunction with GAAP

financial measures, is a useful financial analysis tool, used by the

Company’s management as described above that can assist investors in

assessing the Company’s financial condition, operating performance and

underlying strength. Adjusted EBITDA should not be considered in

isolation or as a substitute for net income/(loss) prepared in

accordance with GAAP. Other companies may define EBITDA differently.

Also, while EBITDA is defined differently than Adjusted EBITDA for the

Company’s credit agreement, certain financial covenants in its borrowing

arrangements are tied to similar measures. Adjusted EBITDA, as well as

the other information in this press release, should be read in

conjunction with the Company’s financial statements and footnotes

contained in the documents that the Company files with the U.S.

Securities and Exchange Commission.

²All mass retail share and consumption data is

U.S. mass-retail dollar volume according to ACNielsen (an independent

research entity). ACNielsen data is an aggregate of the drug channel,

Kmart, Target and Food and Combo stores, and excludes Wal-Mart and

regional mass volume retailers, as well as prestige, department stores,

door-to-door, internet, television shopping, specialty stores,

perfumeries and other outlets, all of which are channels for cosmetics

sales. This data represents approximately two-thirds of the Company’s

U.S. mass-retail dollar volume. Such data represent ACNielsen’s

estimates based upon mass retail sample data gathered by ACNielsen and

are therefore subject to some degree of variance and may contain slight

rounding differences.

Forward-Looking Statements

Statements made in this press release, which are not historical facts,

including statements about the Company’s plans, strategies, beliefs and

expectations, are forward-looking and subject to the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements speak only as of the date they are made and,

except for the Company’s ongoing obligations under the U.S. federal

securities laws, the Company undertakes no obligation to publicly update

any forward-looking statement, whether to reflect actual results of

operations; changes in financial condition; changes in general economic,

industry or cosmetics category conditions; changes in estimates,

expectations or assumptions; or other circumstances or events arising

after the issuance of this press release. Such forward-looking

statements include, without limitation, the Company’s beliefs,

expectations and/or plans regarding: (i) our belief that our strong

preliminary results in the second quarter continue to validate our

strategy; (ii) our plans to continue to focus on the key drivers,

including: innovative, high-quality, consumer-preferred new products;

effective, integrated brand communication; competitive levels of

advertising and promotion; and superb execution with our retail

partners, which build our brands, particularly the Revlon brand, and

generate sustainable, profitable sales growth; (iii) our plans to also

remain focused on controlling our costs and driving efficiencies

throughout our organization, which continue to positively impact our

margins and cash flow; (iv) our plans to continue to focus on our

strategy, including by–(a) building and leveraging our strong brands,

(b) improving the execution of our strategies and plans, and providing

for continued improvement in our organizational capability through

enabling and developing our employees, (c) continuing to strengthen our

international business, (d) improving our operating profit margins and

cash flow, and (e) improving our capital structure; and (v) our belief

that our focus on the key drivers, including: innovative, high-quality,

consumer-preferred new products; effective, integrated brand

communication; competitive levels of advertising and promotion; and

superb execution with our retail partners should continue to generate

sustainable, profitable sales growth and positive free cash flow. Actual

results may differ materially from such forward-looking statements for a

number of reasons, including those set forth in our filings with the

SEC, including, without limitation, our 2007 Annual Report on Form 10-K

filed with the SEC in March 2008 and our Quarterly Reports on Form 10-Q

and Current Reports on Form 8-K that we will file with the SEC during

2008 (which may be viewed on the SEC’s website at http://www.sec.gov

or on our website at http://www.revloninc.com),

as well as reasons including: (i) less than anticipated results from our

strategy, such as noted in clause (iv) below; (ii) difficulties, delays,

unanticipated costs or our inability to build our brands, particularly

the Revlon brand, and generate sustainable, profitable sales growth,

such as due to less than effective new product development, less than

expected acceptance of our new products by consumers and/or retail

customers, less than expected acceptance of our brand communication by

consumers and/or retail partners, less than expected levels of

advertising and promotion support for our new product launches and/or

less than expected levels of execution with our retail partners; (iii)

our inability to control our costs and drive efficiencies throughout our

organization, which could result in less than expected margins and cash

flow; (iv) difficulties, delays, unanticipated costs or our inability to

continue to focus on our strategy, such as (a) less than expected growth

of our brands, such as due to less than expected acceptance of our new

or existing products under these brands by consumers and/or retail

customers, (b) difficulties, delays or the inability to improve the

execution of our strategies and plans and/or improve our organizational

capability through enabling and developing our employees, (c) our

inability to continue to strengthen our international business, such as

due to higher than anticipated levels of investment required to support

and build our brands globally or less than anticipated results from our

regional and/or multi-national brands, (d) our inability to improve our

operating profit margins and/or cash flow, such as due to less than

anticipated sales growth and/or less than anticipated savings from our

restructuring actions and/or ongoing cost controls and/or (e)

difficulties, delays, unanticipated costs or our inability to improve

our capital structure; and (v) difficulties, delays, unanticipated costs

or our inability to generate sustainable, profitable sales growth and

positive free cash flow, such as due to less than anticipated shipments,

including due to less than anticipated acceptance of our new products by

consumers and/or retail customers, more than anticipated product

returns, as well as actions by our retail customers impacting our sales,

including in response to any decreased consumer spending in response to

weak economic conditions or weakness in the category, retailer inventory

management, retailer space reconfigurations and/or reductions in

retailer display space, changes in consumer preferences, such as reduced

consumer demand for our products, changes in consumer purchasing habits,

including with respect to shopping channels, changes in the competitive

environment and actions by our competitors, including business

combinations, technological breakthroughs, new products offerings,

promotional spending and/or marketing and promotional successes. Factors

other than those listed above could also cause the Company’s

results to differ materially from expected results. Additionally, the

business and financial materials and any other statement or disclosure

on, or made available through, the Company’s

websites or other websites referenced herein shall not be incorporated

by reference into this release.

REVLON, INC. AND SUBSIDIARIES
UNAUDITED ADJUSTED EBITDA RECONCILIATION
(dollars in millions)
		Three Months Ended			Three Months Ended
		June 30,			June 30,
		2008E			2007
		(Unaudited)			(Unaudited)
Reconciliation to net income/(loss):
Net income (loss)	$	20		$	(11)
Interest expense, net		30			33
Amortization of debt issuance costs		1			–
Foreign currency gains, net		(2	)		–
Miscellaneous, net		–			(1)
Provision for income taxes		9			(4)
Depreciation and amortization		22			25
Adjusted EBITDA	$	80		$	42
E – Unaudited Estimate

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