ATLANTA, Georgia (September 21, 2000) - Few people stop to contemplate the technical nature of toilet paper. But for researchers at Procter & Gamble (NYSE: PG) and Atlanta's Institute of Paper Science and Technology (IPST), finding sustainable solutions for the world's growing paper needs - toilet paper and beyond - is serious business.

Today Procter & Gamble announced the donation of all its "Clay-filled Paper Technology" patents and intellectual technology to IPST, a leading pulp and paper research institution and graduate school. The method reduces the amount of wood fiber in paper by replacing it with a special type of natural clay - without affecting the paper's strength or softness. IPST owns the technology outright and will benefit from all future commercialization after its full development.

"We're thrilled that IPST will be able to continue the development of this significant technology, and that IPST and its students will benefit both financially and academically," said P&G's Chief Technology Officer Gil Cloyd.

With over 27,000 patents in its portfolio, P&G is unable to devote the resources necessary to develop them all; therefore, it donates those technologies that are not essential to current product development to organizations best able to develop them. Each year the company invests nearly $2 billion in research and development and obtains approximately 3,000 patents worldwide.

"We are very pleased that Procter & Gamble has recognized IPST as uniquely qualified to further develop and commercialize these technologies," said IPST President James Ferris. "The mission of the Institute is to support the paper industry by educating future technical leaders, conducting innovative research, and transferring valuable technology into operations."

The donation of the "Clay-filled Paper Technology" is also important to the state of Georgia, not only because of the state's sizeable paper industry, but also because of the prevalence of the kaolin clay filler. "Today's donation benefits two of Georgia's major industries, paper making and kaolin mining, while providing future funding of IPST's graduate research program. P&G's donation today is a great role model for the type of public-private partnerships that will help Georgia remain on the cutting edge of the new economy. We thank Procter & Gamble for their generous gifts," said Georgia Governor Roy Barnes.

"The paper industry is big business in Georgia and this technology could greatly reduce wood fiber costs. In addition, Georgia is the leading producer of kaolin clay, which already plays an important role in the paper industry," said Ferris.

Millions of consumers use paper products - from toilet paper to facial tissue to paper towels - every day. About one-half of the cost of making these products is the cost of the main ingredient - wood fiber. Once developed, this technology could save the paper industry over $100 million per year and reduce the utilization of wood pulp.

About IPST
IPST's graduate research program, world-class facility, and strong ties to the paper industry make it uniquely skilled to bring this papermaking technology to market quickly. IPST researchers expect to move promptly to pilot trials and ultimate commercialization. Initial studies indicate that the use of "Clay-filled Paper Technology" and the resulting potential economic impact are not limited to the tissue portion of the industry.

Marvin Pomerantz, Vice Chairman of IPST's Board of Trustees said, "The Board of Trustees has expressed its appreciation to P&G not only for this particular donation, but for the precedent that it sets. When we prove ourselves by developing and commercializing this significant technology, it will inevitably lead to other exciting opportunities. Our students and faculty are looking forward to the challenge of bringing 'Clay-filled Paper Technology' to market".

About Procter & Gamble
P&G markets more than 300 brands to nearly five billion consumers in more than 140 countries. These brands include Crest, Tide, Pantene, Pampers, Oil of Olay, Vicks and Pringles. 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, which has its headquarters in Cincinnati, has operations in 70 countries and employs more than 110,000 people. In fiscal year 1999-00, its sales were $39.95 billion.