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Fortune Brands Inc (FBI)

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Thursday 24 April, 2008

Fortune Brands Inc

Fortune Brands Reports First Quarter Results

Fortune Brands, Inc.
                  

Fortune Brands, Inc. (NYSE: FO):

    --  Company Delivers Results within Targeted Earnings Range Despite
        Challenging U.S. Environment

    --  International Growth and Successful New Products Across Company Moderate
        Impact of U.S. Home Products Market

    --  Brand-Building Investments Support Sales Growth for Key Spirits and Golf
        Brands

Fortune Brands, Inc. (NYSE: FO), the company behind leading consumer brands
including Jim Beam, Titleist and Moen, today reported results for the first
quarter of 2008. Strong growth in international markets across the company's
segments helped temper the impact of the correction in the U.S. housing market
on the company's home products brands. On a continuing operations basis, total
net sales for Fortune Brands were 5% lower and diluted earnings per share before
charges/gains were off 7%. The company's sales in international markets grew by
double digits, and worldwide net sales increased for brands including Jim Beam,
Courvoisier, Teacher's, Titleist, Cobra, FootJoy and Master Lock.

'Even with the U.S. housing correction and challenges in the U.S. economy,
results in our seasonally smallest quarter achieved our previously announced
earnings target range,' said Bruce Carbonari, president and chief executive
officer of Fortune Brands. 'We're continuing to move aggressively to best
position our business to compete in this environment and over the long term.
That includes reducing cost structures in our home products business, sharply
focusing on company-wide productivity initiatives, and continuing strategic
investments to fuel long-term growth across our brands.'

                    Investing in Sustainable Long-Term Growth

'Specifically, we're determined to maintain strategic spending to support brand
building, new products and international expansion,' Carbonari continued. 'While
new investments in these targeted growth initiatives reduced first-quarter
operating income in our spirits and golf segments, we believe that these are the
right investments to help drive sustainable long-term growth. Furthermore, our
underlying performance was better than our reported first-quarter numbers
indicate, and we expect improved performance in the second half of the year.

'While our reported spirits sales were relatively flat, shipments of spirits
were adversely impacted in the U.S. by larger-than-usual seasonal reductions in
distributor inventories that don't reflect the health of our brands in the
marketplace,' Carbonari said. 'Had distributor inventory movements been
consistent with the prior year, our worldwide spirits sales would have been
solidly higher. Sales increased at the premium end of our portfolio, reflecting
favorable mix shift and our focus on growing our global premium spirits brands.
On a depletions basis, our global premium brands grew in the U.S. and
demonstrated strong growth in the U.K., Spain and Germany, as well as in Russia,
India and China. We sustained the double-digit increase in brand spending we
began in the third quarter of 2007, and we believe the brand-building campaigns
we launched over the past several months for Sauza, Canadian Club and
Courvoisier are helping each of these brands accelerate growth.

'In an increasingly challenging environment for our home products brands, Moen
and Master Lock continued to gain share in the quarter. We're also benefiting
from our strength in the replace/remodel segment, which continues to perform
significantly better than the new construction segment of the market. The
success of our international growth initiatives contributed to results, as well.

'And in golf, new advanced-technology products helped us achieve a first-quarter
sales record with growth in every product category and in all key geographies.
That included especially strong growth in Japan and Korea, two key markets where
we're investing to expand our business,' Carbonari added.

For the first quarter of 2008, on a continuing operations basis:

    --  Net income was $108 million, or $0.69 per diluted share, down 12% from
        $0.78 in the year-ago quarter.

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*T
          -- Comparisons were impacted by a $0.03 per share charge for
           one-time expenses related to the company's participation in
           the V&S auction process. Results in both the current and
           prior-year periods also reflected $0.03 per share in
           restructuring-related charges.
*T

    --  Excluding one-time items in both the current and prior-year periods,
        diluted EPS before charges/gains was $0.75, down 7% from $0.81 in the
        year-ago quarter.

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          -- These results were within the company's previously
           announced target range for diluted EPS before charges/gains
           to be in the range of flat to down at a high-single-digit
           rate.
*T

    --  Net sales were $1.81 billion, down 5%.

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          -- On a comparable basis, excluding excise taxes and foreign
           exchange, total net sales would have been down 7%.
*T

    --  Operating income was $227 million, down 11%.

    --  Return on equity before charges/gains was 15%.

    --  Return on invested capital before charges/gains was 9%.

                    Outlook for Second Quarter and Full Year

'As we look ahead, we remain focused on our near-term goals: outperforming our
markets, investing in our brands, and leveraging our breadth and balance to
deliver growth and returns,' Carbonari said. 'We'll continue implementing
high-return cost initiatives, as well as funding our long-term strategic
investments. That includes our brand-building investments in spirits and our
international growth initiatives across our businesses, all of which support
sustainable long-term growth. Additionally, our combined cash flows, the
strength of our balance sheet, and our substantial share repurchase
authorization give us excellent flexibility to create value. At our current
stock price, we continue to see share repurchases as a very attractive way to
allocate capital.

'Looking to the balance of the year, our home products brands continue to face a
very difficult economic environment. We're continuing to budget for a home
products market that declines at a low-double-digit rate on a revenue basis
throughout the year. In our golf business, we are seeing a delayed start to the
playing season in many northern U.S. markets due to bad weather. On the upside,
our new golf products are being well received in the marketplace and we expect
U.S. spirits shipments to bounce back in the months ahead.

'Taking these factors into account, we're targeting diluted EPS before
charges/gains for the second quarter to be down at a high-single-digit to
mid-teens rate. That's versus an EPS before charges/gains from continuing
operations number of $1.51 for the second quarter of 2007,' Carbonari continued.

'We expect second-half results to be better than the first half, as we drive
growth in spirits, outperform the home products market, progressively benefit
from our company-wide productivity initiatives, and as our strategic brand
investments annualize. For the full year, we're continuing to target results
within the range we established at the beginning of the year. However, given the
uncertain U.S. economic environment, we're narrowing our full-year target range.
We're now targeting diluted EPS before charges/gains to be in the range of flat
to down at a high-single-digit rate. That's versus $5.06 for 2007,' Carbonari
added.

The company also reaffirmed its target of $500-600 million in free cash flow for
2008 after dividends and capital expenditures.

About Fortune Brands

Fortune Brands, Inc. is a leading consumer brands company with annual sales
exceeding $8 billion. Its operating companies have premier brands and leading
market positions in distilled spirits, home and hardware, and golf products.
Beam Global Spirits & Wine, Inc. is the company's premium spirits business.
Major spirits brands include Jim Beam and Maker's Mark bourbon, Sauza tequila,
Canadian Club whisky, Courvoisier cognac, Teacher's and Laphroaig Scotch, and
DeKuyper cordials. Home and hardware brands include Moen faucets, Aristokraft,
Omega, Diamond and Kitchen Craft cabinetry, Therma-Tru door systems, Simonton
windows, Master Lock padlocks and Waterloo tool storage sold by units of Fortune
Brands Home & Hardware LLC. Acushnet Company's golf brands include Titleist,
Cobra and FootJoy. Fortune Brands, headquartered in Deerfield, Illinois, is
traded on the New York Stock Exchange under the ticker symbol FO and is included
in the S&P 500 Index, the MSCI World Index and the Ocean Tomo 300(TM) Patent
Index.

To receive company news releases by e-mail, please visit www.fortunebrands.com.

Forward-Looking Statements

This press release contains statements relating to future results, which are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Readers are cautioned that these forward-looking
statements speak only as of the date hereof, and the company does not assume any
obligation to update, amend or clarify them to reflect events, new information
or circumstances occurring after the date of this release. Actual results may
differ materially from those projected as a result of certain risks and
uncertainties, including but not limited to: competitive market pressures
(including pricing pressures); consolidation of trade customers; successful
development of new products and processes; ability to secure and maintain rights
to intellectual property; risks pertaining to strategic acquisitions and joint
ventures, including the potential financial effects and performance of such
acquisitions or joint ventures, and integration of acquisitions and the related
confirmation or remediation of internal controls over financial reporting;
changes related to the forthcoming privatization of V&S Group; ability to
attract and retain qualified personnel; general economic conditions, including
the U.S. housing market; weather; risks associated with doing business outside
the United States, including currency exchange rate risks; interest rate
fluctuations; commodity and energy price volatility; costs of certain employee
and retiree benefits and returns on pension assets; dependence on performance of
distributors and other marketing arrangements; the impact of excise tax
increases on distilled spirits and wines; changes in golf equipment regulatory
standards and other regulatory developments; potential liabilities, costs and
uncertainties of litigation; impairment in the carrying value of goodwill or
other acquired intangibles; historical consolidated financial statements that
may not be indicative of future conditions and results due to the recent
portfolio realignment; any possible downgrades of the company's credit ratings;
as well as other risks and uncertainties detailed from time to time in the
company's Securities and Exchange Commission filings.

Use of Non-GAAP Financial Information

This press release includes measures not derived in accordance with generally
accepted accounting principles ('GAAP'), such as diluted earnings per share
before charges/gains, return on equity before charges/gains, return on invested
capital before charges/gains, comparable net sales, and free cash flow. These
measures should not be considered in isolation or as a substitute for any
measure derived in accordance with GAAP, and may also be inconsistent with
similar measures presented by other companies. Reconciliation of these measures
to the most closely comparable GAAP measures, and reasons for the company's use
of these measures, are presented in the attached pages.

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                         FORTUNE BRANDS, INC.
                   CONSOLIDATED STATEMENT OF INCOME
               (In millions, except per share amounts)
                             (Unaudited)


                                          ----------------------------
                                          Three Months Ended March 31,
                                          ----------------------------
                                            2008     2007    % Change
                                          ----------------------------

                                          ----------------------------
 Net Sales                                $1,806.1 $1,909.1      (5.4)
                                          ----------------------------

       Cost of goods sold                    975.1  1,058.9      (7.9)

       Excise taxes on spirits                95.1     97.1      (2.1)

       Advertising, selling, general
         and administrative expenses         488.2    475.8       2.6

       Amortization of intangibles            12.4     12.0       3.3

       Restructuring
         and restructuring-related items       8.1      9.0     (10.0)

                                          ----------------------------
 Operating Income                            227.2    256.3     (11.4)
                                          ----------------------------

       Interest expense                       60.6     75.5     (19.7)

       Other (income) expense, net             0.4     (9.4)        -


                                          ----------------------------
 Income from Continuing Operations before
  income taxes and minority interest         166.2    190.2     (12.6)
                                          ----------------------------

       Income taxes                           52.4     62.8     (16.6)

       Minority interests                      6.2      6.1       1.6

                                          ----------------------------
 Income from Continuing Operations           107.6    121.3     (11.3)
                                          ----------------------------

 Income from Discontinued Operations          12.9     (1.1)        -

                                          ----------------------------
 Net Income                                 $120.5   $120.2       0.2
                                          ----------------------------

 Earnings Per Common Share, Basic:
                                          ----------------------------
       Income from continuing operations     $0.70    $0.80     (12.5)
       Income from discontinued
        operations                            0.08    (0.01)        -
       Net Income                            $0.78    $0.79      (1.3)
                                          ----------------------------

 Earnings Per Common Share, Diluted:
                                          ----------------------------
       Income from continuing operations     $0.69    $0.78     (11.5)
       Income from discontinued
        operations                            0.08    (0.01)        -
       Net Income                            $0.77    $0.77         -
                                          ----------------------------

 Avg. Common Shares Outstanding
                                          ----------------------------
       Basic                                 154.0    152.4       1.0
       Diluted                               156.3    156.1       0.1
                                          ----------------------------

 Actual Common Shares Outstanding
                                          ----------------------------
       Basic                                 154.1    152.6       1.0
       Diluted                               156.5    156.2       0.2
                                          ----------------------------
*T

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                         FORTUNE BRANDS, INC.
               (In millions, except per share amounts)
                             (Unaudited)

 NET SALES AND OPERATING INCOME
----------------------------------------


                                         -----------------------------
                                         Three Months Ended March 31,
                                         -----------------------------
                                           2008      2007    % Change
                                         -----------------------------
 Net Sales

                                         -----------------------------
       Spirits                             $515.3    $519.4      (0.8)
       Home and Hardware                    894.4   1,022.6     (12.5)
       Golf                                 396.4     367.1       8.0
                                         -----------------------------
 Total Net Sales from Continuing
  Operations                             $1,806.1  $1,909.1      (5.4)
                                         -----------------------------

 Operating Income

                                         -----------------------------
       Spirits                             $128.6    $130.9      (1.8)
       Home and Hardware                     60.9      86.4     (29.5)
       Golf                                  51.5      53.6      (3.9)
       Corporate expenses                   (13.8)    (14.6)      5.5
                                         -----------------------------
 Total Operating Income from Continuing
  Operations                               $227.2    $256.3     (11.4)
                                         -----------------------------

 Operating Income Before Charges (a)

                                         -----------------------------
       Spirits                             $129.6    $133.2      (2.7)
       Home and Hardware                     68.0      93.1     (27.0)
       Golf                                  51.5      53.6      (3.9)
 Less:
       Corporate expenses                   (13.8)    (14.6)      5.5
       Restructuring
        and restructuring-related items      (8.1)     (9.0)     10.0
                                         -----------------------------
 Operating Income from Continuing
  Operations                               $227.2    $256.3     (11.4)
                                         -----------------------------
*T

(a) Operating Income Before Charges is Operating Income derived in accordance
with GAAP excluding restructuring and restructuring-related items. Operating
Income Before Charges is a measure not derived in accordance with GAAP.
Management uses this measure to determine the returns generated by our operating
segments and to evaluate and identify cost reduction initiatives. Management
believes this measure provides investors with helpful supplemental information
regarding the underlying performance of the company from year-to-year. This
measure may be inconsistent with similar measures presented by other companies.

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 FREE CASH FLOW
---------------------------------


                                  ------------------------------------
                                  Three Months Ended
                                       March 31,      2008 Full Year
                                  ------------------------------------
                                    2008     2007     Targeted Range
                                  ------------------------------------

                                  ------------------------------------
 Free Cash Flow (b)               $(193.2)  $(277.9)    $500 - 600
    Less:
    Taxes paid on sale of wine
     business                       (48.0)        -       (48.0)
    Add:
    Net Capital Expenditures         31.9      43.7      200 - 225
    Dividends Paid                   64.8      59.6       260(i)
                                  ------------------------------------
 Cash Flow From Operations        $(144.5)  $(174.6)   $912 - 1,037
                                  ------------------------------------
*T

(b) Free Cash Flow is Cash Flow from Operations less net capital expenditures
and dividends paid to stockholders plus taxes paid on the sale of the wine
business. Free Cash Flow is a measure not derived in accordance with GAAP.
Management believes that Free Cash Flow provides investors with helpful
supplemental information about the company's ability to fund internal growth,
make acquisitions, repay debt and repurchase common stock. This measure may be
inconsistent with similar measures presented by other companies.

(i) Assumes current dividend rate and basic shares outstanding on March 31,
2008.

EPS BEFORE CHARGES/GAINS

EPS from Continuing Operations Before Charges/Gains is Net Income calculated on
a per-share basis excluding restructuring, restructuring-related and one-time
items.

For the first quarter of 2008, EPS from Continuing Operations Before
Charges/Gains is Net Income calculated on a per-share basis excluding $8.1
million ($5.2 million after tax or $0.03 per diluted share) of restructuring and
restructuring-related items and V&S auction process costs of $7.3 million ($4.7
million after tax or $0.03 per diluted share).

For the first quarter of 2007, EPS from Continuing Operations Before
Charges/Gains is Net Income calculated on a per-share basis excluding $9.0
million ($5.7 million after tax or $0.03 per diluted share) of restructuring and
restructuring-related items.

EPS from Continuing Operations Before Charges/Gains is a measure not derived in
accordance with GAAP. Management uses this measure to evaluate the overall
performance of the company and believes this measure provides investors with
helpful supplemental information regarding the underlying performance of the
company from year to year. This measure may be inconsistent with similar
measures presented by other companies.

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                                          ----------------------------
                                          Three Months Ended March 31,
                                          ----------------------------
                                            2008      2007   % Change
                                          ----------------------------

                                          ----------------------------
Earnings Per Common Share - Basic
      Income from Continuing Operations
         before Charges/Gains                 0.76     0.83      (8.4)
      V&S Auction Process Costs              (0.03)       -         -
      Restructuring
        and restructuring-related items      (0.03)   (0.03)        -

                                          ----------------------------
   Income from Continuing Operations          0.70     0.80     (12.5)
                                          ----------------------------

                                          ----------------------------
   Income from Discontinued Operations        0.08    (0.01)        -
                                          ----------------------------

                                          ----------------------------
   Net Income                                 0.78     0.79      (1.3)
                                          ----------------------------

                                          ----------------------------
Earnings Per Common Share - Diluted
      Income from Continuing Operations
         before Charges/Gains                 0.75     0.81      (7.4)
      V&S Auction Process Costs              (0.03)       -         -
      Restructuring
        and restructuring-related items      (0.03)   (0.03)        -

                                          ----------------------------
   Income from Continuing Operations          0.69     0.78     (11.5)
                                          ----------------------------

                                          ----------------------------
   Income from Discontinued Operations        0.08    (0.01)        -
                                          ----------------------------

                                          ----------------------------
    Net Income                                0.77     0.77         -
                                          ----------------------------
*T

RESTRUCTURING AND RESTRUCTURING-RELATED ITEMS

The company recorded pre-tax restructuring and restructuring-related items of
$8.1 million ($5.2 million after tax or $0.03 per diluted share) in the
three-month period ended March 31, 2008. The charges relate to supply chain
realignment and cost reduction initiatives in the home products business and
targeted repositioning actions in the U.S. for the spirits segment.

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                       -----------------------------------------------
                              Three Months Ended March 31, 2008
                           (In millions, except per share amounts)
                       -----------------------------------------------
                                     Restructuring-Related Items
                                     ---------------------------
                                     Cost of Sales    SG & A
                       Restructuring     Charges       Charges   Total
                       -----------------------------------------------

    Spirits                       $-             $-         $1.0  $1.0
    Home and Hardware            2.3            2.6          2.2   7.1
         Total                  $2.3           $2.6         $3.2  $8.1
                       -----------------------------------------------


                                                                 -----
 Income tax benefit                                                2.9
                                                                 -----
 Net charge                                                       $5.2
                                                                 -----
 Charge per common
  share
     Basic                                                       $0.03
     Diluted                                                     $0.03
                                                                 -----
*T

RECONCILIATION OF 2008 COMPARABLE NET SALES TO GAAP NET SALES

For the first quarter, Comparable Net Sales for Fortune Brands were down 7%. On
a GAAP basis, Fortune Brands' Net Sales were down 5%.

Comparable Net Sales is Net Sales derived in accordance with GAAP excluding
changes in foreign currency exchange rates, spirits excise taxes, the net sales
from divested entities and product lines, and the impact of third-party bottling
contracts. Comparable Net Sales would also include net sales from acquisitions
for the comparable prior-year period.

Comparable Net Sales is a measure not derived in accordance with GAAP.
Management uses this measure to evaluate the overall performance of the company,
and believes this measure provides investors with helpful supplemental
information regarding the underlying performance of the company from
year-to-year. This measure may be inconsistent with similar measures presented
by other companies.

RECONCILIATION OF 2008 EARNINGS GUIDANCE TO GAAP

For the second quarter, the company is targeting diluted EPS before
charges/gains from continuing operations to be down at a high-single digit to
mid-teens rate versus EPS before charges/gains from continuing operations of
$1.51 in a year ago quarter. On a GAAP basis, the company is targeting diluted
EPS from continuing operations to be down at a high-single-digit to mid-teens
rate.

For the full year, the company is targeting diluted EPS before charges/gains
from continuing operations to be in the range of flat to down at a
high-single-digit rate versus EPS before charges/gains from continuing
operations of $5.06 in 2007. On a GAAP basis, the company is targeting diluted
EPS from continuing operations to be up low-single-digits to
down-mid-single-digits.

EPS Before Charges/Gains from continuing operations is a measure not derived in
accordance with GAAP. Management uses this measure to evaluate the overall
performance of the company and believes this measure provides investors with
helpful supplemental information regarding the underlying performance of the
company from year to year. This measure may be inconsistent with similar
measures presented by other companies.

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                         FORTUNE BRANDS, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEET
                            (In millions)
                             (Unaudited)


                                                   --------- ---------
                                                   March 31, March 31,
                                                     2008      2007
                                                   --------- ---------

 Assets
     Current assets
                                                   --------- ---------
         Cash and cash equivalents                    $179.4    $187.3
         Accounts receivable, net                    1,079.8   1,113.3
         Inventories                                 2,173.8   2,005.2
         Other current assets                          458.9     447.3
         Current assets of discontinued operations         -     268.0
                                                   --------- ---------
           Total current assets                      3,891.9   4,021.1

       Property, plant and equipment, net            1,701.2   1,704.0
       Intangibles resulting from
         business acquisitions, net                  8,153.0   8,003.1
       Other assets                                    418.4     348.0
       Noncurrent assets of discontinued
        operations                                         -     640.4
                                                   --------- ---------
           Total assets                            $14,164.5 $14,716.6
                                                   --------- ---------


 Liabilities and Stockholders' Equity
     Current liabilities
                                                   --------- ---------
         Short-term debt                              $438.2    $825.6
         Current portion of long-term debt             676.5       0.1
         Other current liabilities                   1,382.1   1,351.5
         Current liabilities of discontinued
          operations                                       -      70.5
                                                   --------- ---------
           Total current liabilities                 2,496.8   2,247.7

     Long-term debt                                  3,569.6   5,244.2
     Other long-term liabilities                     1,655.6   1,764.0
     Noncurrent liabilities of discontinued
      operations                                           -      77.8
                                                   --------- ---------
           Total liabilities                         7,722.0   9,333.7

     Minority interests                                559.0     561.4

     Stockholders' equity                            5,883.5   4,821.5
                                                   --------- ---------

           Total liabilities and stockholders'
            equity                                 $14,164.5 $14,716.6
                                                   --------- ---------
*T

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                         FORTUNE BRANDS, INC.
Reconciliation of ROE based on Net Income from Continuing Operations
                        Before Charges/Gains to
       ROE based on GAAP Net Income from Continuing Operations
                            March 31, 2008
                         Amounts in millions
                             (Unaudited)

               Rolling twelve months
                  Net Income from                  ROE based on Net
                    Continuing                        Income from
                 Operations Before                     Continuing
                Charges/Gains less                     Operations
                Preferred Dividends     Equity    Before Charges/Gains
               ---------------------   --------   --------------------


 Fortune Brands               $795.1 / $5,473.1 =                14.5%


               Rolling twelve months
                        GAAP
                 Net Income from                   ROE based on GAAP
                    Continuing                      Net Income from
                  Operations less                      Continuing
                Preferred Dividends     Equity         Operations
               ---------------------   --------   --------------------


 Fortune Brands               $748.2 / $5,337.1 =                14.0%
*T

Return on Invested Capital - or ROIC - Before Charges/Gains is net income from
continuing operations plus interest expense derived in accordance with GAAP
excluding any restructuring and non-recurring items divided by the twelve month
average of GAAP Invested Capital (net debt plus equity) excluding any
restructuring and non-recurring items.

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                         FORTUNE BRANDS, INC.
Reconciliation of ROIC based on Net Income from Continuing Operations
                        Before Charges/Gains to
       ROIC based on GAAP Net Income from Continuing Operations
                            March 31, 2008
                         Amounts in millions
                             (Unaudited)

               Rolling twelve                          ROIC based on
              months Net Income                        Net Income from
               from Continuing                           Continuing
              Operations Before                          Operations
             Charges/Gains plus                           Before
               Interest Expense    Invested Capital     Charges/Gains
             -------------------   ----------------   ----------------


 Fortune
  Brands                  $973.9 /        $10,845.1 =             9.0%


               Rolling twelve
                 months GAAP                           ROIC based on
              Net Income from                               GAAP
                 Continuing                           Net Income from
               Operations plus                           Continuing
               Interest Expense    Invested Capital      Operations
             -------------------   ----------------   ----------------


 Fortune
  Brands                  $927.1 /        $10,707.5 =             8.7%
*T

Return on Invested Capital - or ROIC - Before Charges/Gains is net income from
continuing operations plus interest expense derived in accordance with GAAP
excluding any restructuring and non-recurring items divided by the twelve month
average of GAAP Invested Capital (net debt plus equity) excluding any
restructuring and non-recurring items.

ROE From Continuing Operations Before Charges/Gains and ROIC From Continuing
Operations Before Charges/Gains are measures not derived in accordance with
GAAP. Management uses these measures to determine the returns generated by the
company and to evaluate and identify cost-reduction initiatives. Management
believes these measures provide investors with helpful supplemental information
regarding the underlying performance of the company from year-to-year. These
measures may be inconsistent with similar measures presented by other companies.

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*T
Fortune Brands, Inc.
Media Relations:
Clarkson Hine
(847) 484-4415
or
Investor Relations:
Tony Diaz
(847) 484-4410
*T
                                                                                                                                                                                                             

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