Media Contacts:

Ed Bastian, Procter & Gamble, 513/ 945-6202
Debbie Griffith, NC State News Services, 919/ 515-3470 or debbie_griffith@ncsu.edu

Nov. 15, 2000

Procter & Gamble Donates Paper Recycling Technology to NC State

EMBARGOED FOR RELEASE AT 1:45 P.M. NOV. 15, 2000

When doing laundry, separating clothes into whites and colors gets better results. The same principle works for processing recycled paper, and Procter & Gamble (NYSE: PG) has patented such a technology to improve the paper recycling process. Today P&G announced it has donated this technology to North Carolina State University for further development and commercialization.

The donation of the Paper Recycling Process Enhancement technology consists of a portfolio of patents and patent applications and the accompanying intellectual property. NC State will research the technology's potential, develop and refine the process, and eventually commercialize applications for it. NC State will realize all future revenues resulting from the technology's commercialization.

"We're excited that North Carolina State will continue to develop and test this significant technology and that the university will benefit both financially and academically from this donation," said P&G's chief technology officer Gil Cloyd.

"We are delighted at the opportunities this gift will create," said NC State Chancellor Marye Anne Fox. "Not only will this allow one of our top programs to expand its impact, it also will mean we can offer our students a chance to be involved in developing cutting-edge technology."

North Carolina Gov. James B. Hunt Jr., said, "Today's donation benefits one of our state's major industries, paper making, while providing future funding of NC State's outstanding program. P&G's donation today is a great example of the type of public-private partnerships that will help North Carolina remain on the cutting edge of the new economy. We thank Procter & Gamble for this generous gift."

With over 27,000 patents in its portfolio, P&G invests nearly $2 billion annually in research and development and is awarded about 3,000 patents worldwide each year. The gift of Paper Recycling Process Enhancement Technology is the eighth in a series of P&G technology donations to universities and research institutions.

Currently, fiber degradation is an ongoing challenge in the paper recycling industry. The size and strength of paper fibers decrease when paper is manufactured and are further degraded with each round of recycling.

However, P&G's Paper Recycling Process Enhancement technology allows paper fibers to be segregated during the recycling process according to fiber length, coarseness and stiffness through a sequential centrifuging and screening process.

"Sorting" the fibers in this manner can result in reduced costs in the recycling process because some of the fibers require less chemical treatment, or no chemical treatment at all. In addition, the technology can produce higher quality fibers that will bring a premium price on the market. It may even be possible to use a portion of fibers from this recycling process in place of virgin fibers -- saving money and wood pulp totaling as much as $500 million annually. Should this technology be successfully developed and commercialized, NC State would be in position to capture a portion of these savings.

Members of NC State University's Department of Wood and Paper Science will utilize the renowned Robertson Pulp and Paper Laboratory in developing the Enhanced Paper Recycling Process technology. P&G's independent consultant recommended NC State to receive the donation because the university is uniquely qualified with its faculty expertise, advanced facilities that include its pilot paper plant, and a history of developing and commercializing technologies.

About North Carolina State University

NC State University in Raleigh, N.C., is the largest institution in the state's university system, with more than 28,000 students. NC State serves as the system's flagship campus for science, engineering and technology. Long known for its strengths in engineering, agriculture, forestry and textiles, NC State has the largest environmental science, engineering and policy faculty in the Southeast -- some 500 educators and researchers -- who are conducting nearly 300 research and outreach projects on issues of critical importance, including water quality; air quality; sustainable forestry and agriculture; and pollution control for the paper, pulp and textiles industries.

Campus development includes the 1,000-acre, high-tech Centennial Campus that houses state-of-the-art labs, classrooms, and government and industry partners -- one of the fastest growing campuses of its kind in the nation.

About Procter & Gamble

P&G markets 300 brands to nearly 5 billion consumers in 140 countries. P&G invests nearly $2 billion a year to develop and improve its products -- leading the way in R&D globally among consumer products companies. P&G's Global Licensing Organization is promoting the full development and use of the company's innovations. This includes selling, licensing and, in select cases, donating P&G's technologies.

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