Avon Announces 18% Increase In Regular Quarterly Dividend; Announces New $1 Billion Dollar Stock Buyback Program

Avon Announces 18% Increase In Regular Quarterly Dividend;
Announces New $1 Billion Dollar Stock Buyback Program 


NEW YORK, Feb. 1  /PRNewswire-FirstCall/ -- Avon Products, Inc. (NYSE:AVP)
today announced an 18% increase in its regular quarterly dividend and
authorization for the repurchase of $1 billion of the company's common stock
over the next five years, following completion of its current program.

The new dividend rate will be $.165 per common share, up from $.14 per share,
beginning with the first quarter 2005 dividend payable March 1, 2005, to
shareholders of record February 14, 2005.  On an annualized basis, the new
indicated dividend rate would increase to $.66 per share from $.56 per share.
Including last year's 33% increase, Avon's total two-year dividend increase now
stands at 57%.

Avon also said it will repurchase $1 billion of its common stock over the next
five years. The company expects to complete its previous $1 billion stock
buyback plan, which it had launched in 2000, this year. The new buyback plan
will be funded entirely from internally generated cash flow, and the company
does not expect changes in its current credit ratings of A (S&P) and A2
(Moody's).

Andrea Jung, Avon's chairman and chief executive officer said, "We're very
pleased to increase Avon's dividend for the 15th consecutive year and to commit
to a new stock repurchase program. These actions signify the exceptional
strength of the company's cash flow from operations, which reached $883 million
in 2004, and is expected to reach $1 billion in 2005 and $1.5 billion in 2007.
Today's announcement is indicative of our ongoing commitment to enhance
shareholders' return on their investment in Avon."

Avon is the world's leading direct seller of beauty and related products, with
$7.7 billion in annual revenues.  Avon markets to women around the world
through 4.9 million independent sales Representatives.  Avon product lines
include such recognizable brand names as Avon Color, Anew, Skin-So-Soft, Avon
Solutions, Advance Techniques Hair Care, Avon Naturals, Mark, and Avon
Wellness.  Avon also markets an extensive line of fashion jewelry and apparel.

More information about Avon and its products can be found on the company's web
site http://www.avoncompany.com/.

Cautionary Statement For Purposes of the "Safe Harbor" Statement under the
Private Securities Litigation Reform Act of 1995

Statements in this release that are not historical facts or information are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995.  Such forward-looking statements are based on
management's reasonable current assumptions and expectations.  Such forward-
looking statements involve risks, uncertainties and other factors, which may
cause the actual results, levels of activity, performance or achievement of
Avon Products, Inc. ("Avon" or the "Company") to be materially different from
any future results expressed or implied by such forward-looking statements, and
there can be no assurance that actual results will not differ materially from
management's expectations.  Such factors include, among others, the following: 
general economic and business conditions in the Company's markets, including
social, economic and political uncertainties in Latin America, Asia Pacific and
Central and Eastern Europe; the Company's ability to implement its business,
cash management and tax strategies and its Business Transformation initiatives;
the Company's ability to achieve anticipated cost savings and its profitability
and growth targets, particularly in its largest markets; the Company's ability
to implement appropriate product mix and pricing strategies; the Company's
ability to replace lost sales attributable to the repositioning of the U.S.
Beyond Beauty business; the impact of substantial currency fluctuations on the
results of the Company's foreign operations and the cost of sourcing foreign
products and the success of the Company's foreign currency hedging and risk
management strategies; the Company's ability to implement its Sales Leadership
program globally and to increase Representative productivity; the Company's
ability to implement its enterprise resource planning project; the impact of
possible pension funding obligations and increased pension expense on the
Company's cash flow and results of operations; the impact of stock option
expense pursuant to FAS 123R; the effect of legal, regulatory and tax
proceedings, as well as restrictions imposed on the Company, its operations or
its Representatives by foreign governments; the Company's ability to
successfully identify new business opportunities; the Company's access to
financing; and the Company's ability to attract and retain key executives. 
Additional information identifying such factors is contained in the Company's
Annual Report on Form 10-K for the year ended December 31, 2003, filed with the
SEC.  The Company undertakes no obligation to update any such forward-looking
statements. 

DATASOURCE: Avon Products, Inc.



CONTACT:  Media: Sharon Samuel, [phone], or Victor Beaudet,

[phone], or Investors: Renee Johansen or Rob Foresti, [phone],

all of Avon Products, Inc.



Web site:  http://www.avoncompany.com/ 



Company News On-Call:  http://www.prnewswire.com/comp/079575.html

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