A Humble Beginning

Neither William Procter nor James Gambleever intended to settle in Cincinnati. Althoughthe city was a busy center of commerce andindustry in the early nineteenth century,William, emigrating from England, andJames, arriving from Ireland, were headedfarther west.

1837

On April 12, 1837, WilliamProcter and James Gamble startmaking and selling their soapand candles. On August 22,they formalize their businessrelationship by pledging$3,596.47 apiece. The formalpartnership agreement issigned on October 31, 1837.

1850

The Moon and Stars begins toappear in the 1850s as theunofficial trademark of Procter& Gamble. Wharf hands usedthe symbol to distinguish boxesof Star Candles.

• P&G's former logo originated in 1851.• As a crude cross that barge workers on the Ohio

River painted on cases of P&G star candles to identify them.

• P&G later altered this symbol into a trademark that showed a man in the moon overlooking 13 stars.

On April 12, 1837, WilliamProcter and James Gamble startmaking and selling their soapand candles.

Harley Procter convinces thepartners to allocate $11,000to advertise Ivory nationallyfor the first time.

During the Civil War, Procter &Gamble is awarded severalcontracts to supply soap andcandles to the Union armies.

Production begins at theIvorydale factory. Ivorydalereplaces the Central Avenueplant, which was heavilydamaged by fire in 1884.

To address the storm of localand national labor unrest, P&Ginstitutes a pioneering profitsharingprogram for factoryworkers. This voluntaryprogram, conceived by WilliamCooper Procter, grandson ofthe founder, gives employees astake in the Company.

After running the Companyas a partnership for 53 years,the partners incorporate toraise additional capital forexpansion. William AlexanderProcter, son of the founder, isnamed the first president.

A Company Built on Innovation. By 1890,P&G was selling more than 30 different typesof soap, including Ivory. Fueled by full-colorprint ads in national magazines, consumerdemand for P&G soaps continued to grow.

Expanded its operations outside Cincinnati,with a plant in Kansas City, Kansas, followedby a plant in Ontario, Canada. As each newplant opened, P&G would embark on plansfor another

King Camp Gillette inventsthe first safety razor.

1890

P&G’s first color print advertisement– an ad for Ivory –appears in Cosmopolitanmagazine picturing this“Ivory Lady.”

William Cooper Procterbecomes the head of theCompany following thedeath of his father, WilliamAlexander Procter.

American Safety RazorCompany formed in Boston,Massachusetts, later becomingthe Gillette Co.

P&G introduces Crisco, thefirst all-vegetable shortening.Crisco provides a healthieralternative to cooking withanimal fats and is moreeconomical than butter.

1901

The Company builds its firstmanufacturing facility outsidethe United States, in Canada.Employing 75 people, the plantproduces Ivory soap and Crisco.

William Cooper Procter continues his efforts to institutionalize therelationship between the Company and its employees. The articlesof incorporation are revised to include the directive that the“interests of the Company and its employees are inseparable.”

U.S. Government requests Gillette supply razors and blades for theentire U.S. Armed Forces during WWI.

Crisco sponsors cooking showson network radio, placing P&Gamong the medium’sadvertising innovators.

A market research departmentis created to study consumerpreferences and buying habits– one of the first suchorganizations in industry.

In response to the growingpopularity of perfumed beautysoaps, P&G introduces Camay

William Cooper Procter turnsthe reins of the Company overto Richard R. Deupree.

Neil McElroy, the Company’spromotion departmentmanager, creates a marketingorganization based oncompeting brands managedby dedicated groups ofpeople

P&G establishes the firstoverseas subsidiary with thepurchase of the ThomasHedley & Co. Ltd. in England.Fairy Soap is one of Hedley’smain products.

1930

Dreft, the first syntheticdetergent developed forhousehold use, is introduced.The discovery of detergenttechnology lays the groundworkfor a revolution incleaning technology.

William Cooper Procter dies and a monument is erectedat Ivorydale in his honor. He is the last member of the foundingfamilies to run the Company The Company enters the haircare business with Drene, thefirst detergent-based shampoo

The Company expands itsinternational presencewith the acquisition of thePhilippine ManufacturingCompany – the Company’s firstoperations in the Far East.

P&G celebrates its 100thanniversary. Sales reach$230 million.

Just five months after theintroduction of television inthe U.S., P&G airs its first TVcommercial (for Ivory Soap)during the first televised majorleague baseball game.

1946

Tide, “the washing miracle,” isintroduced. Tide incorporatesa new formula that cleansbetter than anything currentlyon the market. Its superiorperformance at a reasonableprice makes Tide the country’sleading laundry productby 1950.

1948

Neil H. McElroy assumesleadership of P&G.

1956

The new General Officebuilding opens, signifyingP&G’s continuing commitmentto downtown Cincinnati

1957

P&G enters the consumerpaper products business withthe acquisition of CharminPaper Mills,

1960

Crest sales skyrocket whenThe American DentalAssociation recognizes thetoothpaste as “an effectivedecay-preventive dentifrice

1961

Although Pampers’ first test market in Peoria, Illinois, isunsuccessful, it leads to an improved Pampers product at alower cost that eventually replaces cloth diapers as thepreferred way to diaper babies.

1963

P&G enters the coffeebusiness with the acquisitionof Folger’s Coffee.

1968

Pringle’s, with its uniquestackable shape and resealablecan, is introduced into testmarket.

1980Sales reach $10 billion.

1981John G. Smale becomes headof Procter & Gamble.

1982

P&G increases its prescriptionand over-the-counter healthcare business with theacquisition of Norwich EatonPharmaceuticals.

1983The Company introduces asuperior feminine protectionproduct, Always/Whisper,which becomes the leadingworld brand in its categoryby 1985.

1984Gillette acquires Oral B,founded in 1950.Liquid Tide is introduced. Thisrepresents the results of globalresearch with surfactantsdeveloped in Japan, fragrancein Europe and packaging fromthe United States.

1986Ultra Pampers and Luvs SuperBaby Pants are introduced –with effective, new technologythat makes diapers thinner.

1988

The Company announces ajoint venture to manufactureproducts in China. This is theCompany’s first operation inthe largest consumer market inthe world.

1992P&G receives the WorldEnvironment Center GoldMedal for InternationalCorporate EnvironmentalAchievement

1993

Company sales exceed $30billion. For the first time inCompany history, more than50% of sales come fromoutside the U.S.

1994P&G enters the Europeantissue and towel marketwith the acquisition of theGerman-based company,VP Schickedanz.

1995

John E. Pepper becomes P&G’sninth Chairman and ChiefExecutive, and Durk I. Jagerbecomes President and ChiefOperating Officer.

1996

The U.S. Food and DrugAdministration grants approvalof Olestra for use in saltysnacks and crackers1996Gillette acquires Duracell,originally founded in theearly 1920s.

1997

The Company expands itsfeminine protection expertiseinto a new global market withthe acquisition of Tambrands.Tampax Tampon is the marketleader worldwide.

1998P&G announces Organization2005, a new globalorganizational design todrive innovative ideas toworld markets faster.

1999Durk Jager becomes Chairmanof the Board and ChiefExecutive.

2000A.G. Lafley becomes Presidentand Chief Executive.Reflect.com, P&G’s initialInternet brand, is launched.It is the first to offer trulycustomized beauty careproducts online.

2002

A.G. Lafley is elected Chairmanof the Board. Bruce Byrnes andR. Kerry Clark are elected Vice-Chairman of the Board.ThermaCare air-activatedHeatWraps are introduced.

2003FDA approves switchingPrilosec, a treatment forfrequent heartburn, from aprescription to an over-thecounter(OTC) product.

P&G acquires a controllinginterest in Wella

2004

P&G‘s Children's Safe DrinkingWater Program wins the WorldBusiness Award from theUnited Nations DevelopmentProgram & InternationalChamber of Commerce insupport of the UN‘s MilleniumDevelopment goals.

Actonel becomes a billiondollar brand, and P&G's firstpharmaceutical brand to reachthis important milestone.

2005

P&G and Gillette merge into one company and add five morebillion dollar brands to our product portfolio, including Gilletteand Braun‘s shaving and grooming products, the Oral-B dentalcare line and Duracell batteries.

LOGO

• He had more than 30 years of brand-building, market development, global business unit and global operations leadership experience across the Company .

• throughout the world,• Bob is the most broadly experienced CEO in

P&G his

Brands with net sales of more than US$1 billion annual

Brands with net sales of more than US$1 billion annual

HISTORY

• Tide is the brand-name of a popular laundry detergent manufactured by Procter & Gamble.

.

CONT

• first introduced to the United States consumer in 1946.

LOGO

• This original logo was designed by Donald Deskey. • Tide was the first product to be nationally

packaged using Day-Glo colours —strikingly eye-catching .

Three billion times a day, P&G brands touchthe lives of people around the world. Thecompany has one of the strongest portfoliosof trusted, quality, leadership brands,including Pampers, Tide, Ariel, Always,Whisper, Pantene, Folgers, Charmin, Downy,Lenor, Iams, Crest, Oral-B, Actonel, Duracell,Olay, Head & Shoulders, Wella, Gillette, andBraun. The P&G community consists ofalmost 140,000 employees working inover 80 countries worldwide.

About Procter & Gamble

CLIENTS

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