Innovation is P&Gs Life BloodInnovation is the companys key growth strategy and growth engine. It also is one of the companys five core strengths. At P&G, innovation translates consumer desires into new products. Our aim is to set the pace for innovation and be the benchmark for innovation success in the industry. In 2008, P&G had five of the top 10 new product launches in the U.S. (and 10 in the top 25), according to IRI Pacesetters, a report released by Information Resources, Inc., on the most successful new CPG products. In the last 14 years, P&G has had 114 top 25 Pacesetters more than our six largest competitors combined.

P&G Innovations

1879 IVORY First white soap equal in quality to imported castiles

1901 GILLETTE RAZOR First disposable razor, with a double-edge blade, offers alternative to the straight edge; Gillette joins P&G in 2005

1911 CRISCO First all-vegetable shortening, providing a healthier alternative to cooking with animal fat and a more economical option to butter; P&G sold Crisco in 2002 1933 DREFT First synthetic household detergent 1934 DRENE First detergent shampoo 1946 TIDE First heavy-duty laundry detergent

1955 CREST First toothpaste proven effective in the prevention of tooth decay; and the first to be recognized effective by the American Dental Association (1960) 1956 COMET First scouring cleanser with bleach 1961 HEAD & SHOULDERS First "pleasant to use" anti- dandruff shampoo

PRODUCT INNOVATION FIRSTS

The washday miracle is introduced with a new, superior cleaning formula. Tide makes laundry easier and less time-consuming. Its popularity with consumers makes Tide the countrys leading laundry product by 1949.

A breakthrough-product, using fluoride to protect against tooth decay, the second most prevalent disease at the time.

1961 PAMPERS First affordable, mass- marketed disposable diaper

1967 ARIEL First major laundry detergent with enzymes

1968 PRINGLES First stackable potato snack

1972 BOUNCE First broadly-distributed, dryer-added fabric softener DAWN First superior grease-cutting dishwashing liquid is introduced 1976 LUVS First contour-shaped diaper 1983 ALWAYS First feminine protection product with an innovative, dry-weave top sheet 1985 CREST TARTAR First toothpaste clinically proven CONTROL to reduce tartar buildup 1986 PERT PLUS First 2-in-1 shampoo and conditioner ULTRA PAMPERS Innovation reduces diaper thickness by 50% 1988 TIDE w/ BLEACH First North America detergent with activated bleach

1992 PANTENE PRO-V First pro-vitamin, penetrating shampoo 1996 FEBREZE First fabric refresher

1998 SWIFFER First disposable duster with electrostatic cloth 2000 ACTONEL First, faster-acting treatment for osteoporosis

2002 CREST WHITESTRIPS First in-home teeth whitening system

Dawn not only removes grease but keeps it from re-depositing on dishes and hands. It is later is used to effectively and safely clean wildlife impacted by environment oil spills.

Actonel was born from research on Tide with a new compound that suspended minerals (calcium and magnesium) in wash water, preventing them from re-depositing on clothes. Researchers work with calcium lead to a vision that could help with bone disease. P&G sold Actonel in 2009.

Responding to the age-old need to reduce leaks, mess and rashes caused by wetness of cloth diapers, P&G introduces Pampers, the first affordable, successful disposable diaper. Today, more babies around the world experience the comfort and dryness of Pampers than any other diaper brand.

2002 NATURELLA First use of chamomile in feminine pads, meeting specific needs of low-income consumers in Latin America; quickly won market share, now expanding into new markets IAMS / EUKANUBA First pet food formula to help block tartar buildup using natural minerals 2003 PR PURIFIER OF First and only of its kind WATER PACKETS in the world

OLAY REGENERIST Key innovation to the anti-aging moisturizer category with new pentapeptide technology in a breakthrough formulation

2004 PAMPERS BABY First diaper customized for babys STAGES OF stages of growth and development DEVELOPMENT

2005 TIDE COLDWATER Innovation delivers superior cleaning cold-water laundry detergent that saves energy

GILLETTE FUSION First razor with 6 blades (5 for shaving, 1 for trimming); the fastest brand to reach Billion-Dollar Brand status 2006 CREST PRO-HEALTH First toothpaste to protect against TOOTHPASTE all the areas dentists routinely check: gingivitis, plaque, cavities, tartar, sensitivity, and stainsand freshens breath 2007 BRAUN PULSONIC First self-cleaning electric razor 2008 ALWAYS INFINITY New material innovation, Incinicel, absorbs 10x its weight TIDE TOTAL CARE Innovative combination of ingredients typically found in beauty care products (silicone, polymers and chlorine neutralizers) keeps clothes fresh-looking after 50 washes CLAIROL PERFECT 10 First permanent 10-minute color developed with patented AminoGlycine technology that speeds and softens the process 2009 ARIEL EXCEL GEL Concentrated, cold-water formula

Looking at the "energy profile" of P&G's fabric care category, researchers saw that heating water to do laundry had the greatest environmental impact. If every household in just the US adopted cold water washing, the total energy savings would equal 70-90 billion kilowatt hours/year.

Uses 40% less water and 30% less energy to make; and 20-50% less energy used for in-home washing.

One packet cleans 10 liters of water, effectively killing bacteria, viruses and removing parasites, making dirty, contaminated water safe to drink. P&G launched a global not-for-profit, Childrens Safe Drinking Water, to distribute the packets to children and families in need around the world.

1882 MASS MARKETING P&G begins its first mass-marketing effort through continuous consumer advertisingan innovative brand-building effort that paved the way to marketing leadership

1887 EMPLOYEE PROFIT P&G institutes pioneer program, giving employees ownership in the SHARING Company, thus connecting their work to the Companys success

1890 EARLY RESEARCH LAB Aiming to study and improve the soap making process, P&G sets up at Ivorydale one of the first product research labs in America

1901-1920 START OF DIRECT SALES To counter the wide fluctuations in wholesaler buyer volumes, and TO RETAILERS avoid employee layouffs, P&G ventures into direct sales by hiring 450 salesmen to sell directly to retailers, resulting in more stability in production and changes the way the grocery trade operates 1915 CHARITABLE Gambles son, James, helps create the first coordinated community CAMPAIGNS campaign for charitieswhich later comes to be known as the United Way 1923 COMMERCIAL RADIO P&G becomes one of the first companies to advertise on ADVERTISEMENTS commercial radio 1924 MARKET RESEARCH P&G becomes first company to conduct deliberate, data-based market BEGINS research with consumers

1931 BRAND MANAGEMENT P&G designs a marketing organization to provide more specialized SYSTEM IS BORN marketing strategies for each brand

1939 FIRST P&G Just five months after the introduction of TV in the United States, TV COMMERCIAL P&G airs its first TV commercial (for Ivory Soap) during the first televised major league baseball game 1941 CONSUMER P&G becomes one of the first companies to formalize consumer RELATIONS FORMED connections by forming a Consumer Relations Department.

1952 P&G FUND Start of global fund to support children around the world; today through Live, Learn and Thrive, it is working to improve the lives of more than 300 million children globally

P&G'S FIRST UPSTREAM Miami Valley Laboratories open in Cincinnati, serving as the companys RESEARCH FACILITY first facility dedicated solely to upstream research

1986 MULTI-FUNCTIONAL P&G creates the industrys first multi-functional customer teams CUSTOMER TEAMS

INNOVATING IN OTHER AREAS OF THE COMPANY: A FEW MILESTONES

The Company later helped create a new radio genre when in 1932, P&G aired its first radio "soap opera". Today, P&G Productions contines connecting consumers and brands through As the World Turns, The People's Choice Awards, Petside.com, DinnerTool.com and the Pampers "A Parent is Born" video series.