Colgate Announces Acquisition of GABA Holding AG 
              Strengthening its Oral Care Business in Europe and 
           Confirms 4th Qtr. and Full Year 2003 Earnings Estimates 
 
    NEW YORK, December 18, 2003 / --  
 
    GABA Acquisition  
    Colgate-Palmolive Company (NYSE: CL), world leader in toothpaste, today 
announced it has agreed to purchase the European oral care company GABA 
Holding AG. This privately owned Swiss company has long-standing ties to the 
dental community, in-depth distribution and market leadership in the very 
important European pharmacy channel.  GABA products are professionally 
endorsed with a high therapeutic reputation.  This strategic acquisition will 
greatly strengthen Colgate's important oral care business in Europe. 
    Reuben Mark, Colgate's Chairman and CEO said, "GABA is one of the few 
major privately held toothpaste companies worldwide.  Looking back, we were 
able to improve our already strong Asian toothpaste business in 1985 when we 
formed a joint venture with the Hawley & Hazel oral care company.  Similarly, 
in 1995 we acquired the Kolynos toothpaste franchise, materially strengthening 
our powerful Latin American oral care business.  The GABA acquisition should 
have a similar effect on our overall European toothpaste business, where we 
are already #1." 
    GABA has sales of almost $300 million in 15 European countries of which 
over $200 million is oral care.   
    The transaction will be structured as an all cash acquisition of up to 
100% of the outstanding shares of GABA for an aggregate price ranging from 
CHF800 million (US$630 million) to CHF1050 million (US$830 million), depending 
on the number of shares acquired and subject to a purchase price adjustment.  
The acquisition is subject to Colgate acquiring more than 80% of the 
outstanding GABA shares at closing.  Holders of slightly over 80% have already 
agreed to sell their shares.   Included in the assets of the business to be 
acquired is US$110 million of net cash. 
    Mr. Mark continued, "GABA is an excellent strategic fit with Colgate's 
high-margin global oral care leadership, and will help us as we methodically 
increase that leadership around the world.  This highly complementary business 
combination should further accelerate the growth of both Colgate and GABA 
brands while expanding our leadership positions throughout Europe. 
    "GABA's strength in the important European pharmacy channel complements 
Colgate's leading presence in mass retail and GABA's therapeutic positioning 
complements Colgate's multi-benefit product line.  Colgate will also benefit 
from GABA's long established relationships with the European dental community.  
GABA has the strongest dental detailing force in Europe and is the number one 
recommended brand by dentists in their key markets." 
    The acquisition is expected to have a dilutive effect of approximately 3% 
on total company earnings in 2004, an approximately neutral effect in 2005 and 
a positive effect on earnings anticipated from growth and efficiencies by 
2006.  It is expected that Colgate's strong cash flow and balance sheet should 
allow for substantially all of the acquisition related debt to be repaid 
during 2004. 
    The acquisition is subject to regulatory approvals in several European 
countries and other customary conditions.   
 
    Business Update 
    Colgate took the opportunity of the acquisition announcement to again 
reconfirm that earnings for the fourth quarter and full year 2003 are expected 
to be within the range of external estimates, and as discussed in the 3rd 
quarter earnings conference call on October 23, 2003.   
    Worldwide sales in the fourth quarter will be up in the mid-single digits, 
as expected, with global volume up in the low single digits.  Improved 
currency rates worldwide and stronger than expected business in Latin America 
offset slightly lower volume than expected in the developed world. 
    Despite extraordinary competitive conditions in North America, North 
American volume excluding Simply White whitening gel should be up low to mid 
single digits in the fourth quarter, as expected, while overall North American 
volume will be down when compared to the fourth quarter 2002 which included 
the Simply White sell-in. 
    Colgate also confirmed that the previously announced agreement to sell its 
European laundry detergent brands to the Procter & Gamble Company received the 
requisite French regulatory approvals within the last 48 hours, and the 
transaction should be completed this year.  As previously disclosed, it is 
expected that the one-time gain resulting from this transaction will be 
largely offset by one-time charges associated with divesting these detergent 
operations.  In addition, a portion of the gain, approximately $.03 to $.04 
per share, will be used to offset the greater than anticipated loss in the 
U.S. from Simply White whitening gel in the latter part of 2003.  The Simply 
White loss results from high advertising and promotional costs together with 
lower than expected revenues on this product. 
    At 10:00 a.m. ET today, Colgate will host a conference call to elaborate 
on the GABA acquisition. To access the conference call, the domestic dial-in 
number is 800-810-0924 and the international dial-in number is 913-981-4900.  
Use confirmation code 693895.  To access a replay of the conference call after 
12:00 p.m. ET, the domestic dial-in number is 888-203-1112 and the 
international dial-in number is 719-457-0820.  To access this call as a 
webcast, please go to Colgate's web site on the internet at www.colgate.com. 
 
                                    * * * 
 
    About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer 
products company, tightly focused on Oral Care, Personal Care, Household 
Surface Care, Fabric Care and Pet Nutrition.  Colgate sells its products in 
over 200 countries and territories around the world under such internationally 
recognized brand names as Colgate, Palmolive, Mennen, Softsoap, Irish Spring, 
Protex, Sorriso, Kolynos, Ajax, Axion, Soupline, Suavitel and Fab, as well as 
Hill's Science Diet and Hill's Prescription Diet pet foods.  For more 
information about Colgate's global business, visit the Company's website at 
www.colgate.com. 
 
    This press release and the related webcast (other than historical 
information) may contain forward-looking statements.  Actual events or results 
may differ materially from those statements.  Investors should consult the 
Company's filings with the Securities and Exchange Commission (including the 
information set forth under the caption "Cautionary Statement on Forward-
Looking Statements" in the Company's Form 10-K for the year ended December 31, 
2002) for information about factors that could cause such differences.  Copies 
of these filings may be obtained upon request from the Company's Investor 
Relations Department or the Company's website on the internet at 
www.colgate.com. 
 
SOURCE  Colgate-Palmolive Company 
    -0-                             12/18/2003 
    /CONTACT:  Bina Thompson, +1-212-310-3072, or Hope Spiller,  
+1-212-310-2291, both of Colgate-Palmolive Company/ 
    /Web site:  http://www.colgate.com / 
    (CL) 
 




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