Fortune Brands, Inc. reported record results for the fourth quarter and full year 2002. The company’s performance in 2002 benefited from successful strategic initiatives that generated strong growth in home products, share gains for home and golf brands, more effective and lower cost distribution for spirits and wine, and a profit turnaround in the office products unit. The company’s top-selling brands, including Moen, Titleist, Jim Beam and Aristokraft, all drove top-line sales growth.

For the full year:

    --  Net income was $525.6 million, or $3.41 per diluted share, up
        37% from $2.49 a year ago. Net income benefited from strong
        operating performance, lower goodwill amortization and higher
        net gains from special items.

    --  Reported results include an after-tax net gain of $35 million,
        or 22 cents per share, resulting from a tax refund that
        exceeded full-year restructuring-related charges.

    --  Excluding net gains in both years, diluted earnings per share
        would have been $3.19, matching the consensus estimate of Wall
        Street securities analysts, and up from $2.41 a year ago.

    --  Reported sales of $5.68 billion were up 2%.

    --  Operating income was $786.6 million, up 48%.

    --  Free cash flow grew to $420 million, even after dividends and
        restructuring spending.

    --  Return on equity increased to more than 22%.

    For the fourth quarter:

    --  Net income was $131.4 million, or 86 cents per diluted share,
        up from 84 cents a year ago.

    --  Reported results include restructuring-related charges of $6.9
        million (after tax), or 5 cents per diluted share, related to
        the previously announced repositioning plan in the office
        products business.

    --  Excluding these items, diluted earnings per share would have
        been 91 cents, matching the consensus estimate of Wall Street
        securities analysts.

    --  Reported sales of $1.43 billion were off 0.6%.

    --  Operating income was $223.5 million, up from $74 million a
        year ago. Operating income benefited from lower
        restructuring-related charges and lower intangible
        amortization and write-downs.

“2002 was an excellent year for Fortune Brands,” said Chairman & Chief Executive Officer Norm Wesley. “We continued to win in the marketplace by building our powerful consumer brands. We developed innovative new products and gained market share, especially with our home and golf brands. We strengthened our businesses with high-impact strategic initiatives to accelerate growth, most notably our extremely successful Omega cabinets acquisition and our profit turnaround in office products. We generated huge cash flow that we can use to make acquisitions, repurchase shares and pay dividends. We leveraged higher volumes, improved productivity and managed inventory better, all of which significantly improved our asset returns. Above all, we created substantial value for our shareholders.”

The company reduced shares outstanding 4% in 2002 by repurchasing a total of 5.7 million shares, including 2.6 million in the fourth quarter.

Double-Digit EPS Growth Target for 2003

“Like nearly all companies in 2003, well face economic uncertainty and the headwinds of higher costs for pension expense, employee health care plans and insurance. But with solid business momentum, we feel well positioned to achieve our long-term goals of double-digit EPS growth and improved returns in 2003,” Wesley said. “For the first quarter, we expect solid double-digit EPS growth, benefiting partly from the final incremental quarter of the Omega acquisition.” The company’s earnings goals exclude any special charges or gains.

Fortune Brands, Inc. is a consumer products company with annual sales exceeding $5.6 billion. Its golf brands division includes Titleist, Cobra and FootJoy.

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

                                  Three Months Ended December 31,
                                   2002        2001      % Change
                                 ---------------------------------
Net Sales (1)                    $1,431.6    $1,440.1       (0.6)
                                 ---------------------------------
  Cost of goods sold                750.5       807.4       (7.0)

  Excise taxes on spirits and wine   85.9        95.2       (9.8)

  Advertising, selling, general
   and administrative expenses (1)  356.1       319.1       11.6

  Amortization of intangibles         4.7        15.3      (69.3)

  Write-down of identifiable 
   intangibles/goodwill               -          73.3        -

  Restructuring and special items    10.9        55.8      (80.5)
                                 ---------------------------------
Operating Income                    223.5        74.0      202.0
                                 ---------------------------------
  Interest expense                   17.9        17.7        1.1

  Other (income) expense, net        (8.1)      (47.3)      82.9

  Income taxes                       77.7       (29.4)       -

  Minority interests                  4.6         4.2        9.5
                                 ---------------------------------
Net Income                          131.4       128.8        2.0
                                 

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

                                  Twelve Months Ended December 31,
                                 ---------------------------------
                                    2002        2001      % Change
                                 ---------------------------------
Net Sales (1)                    $5,677.7    $5,559.6        2.1
                                 ---------------------------------
  Cost of goods sold              3,066.4     3,090.3       (0.8)

  Excise taxes on spirits and wine  311.1       360.4      (13.7)

  Advertising, selling, general
   and administrative expenses(1) 1,441.7     1,343.5        7.3

  Amortization of intangibles        16.1        62.7      (74.3)

  Write-down of identifiable 
   intangibles/goodwill               -          73.3        -

  Restructuring and special items    55.8        98.1      (43.1)
                                 ---------------------------------
Operating Income                    786.6       531.3       48.1
                                 ---------------------------------
  Interest expense                   74.1        96.8      (23.5)

  Other (income) expense, net       (43.7)      (57.4)      23.9

  Income taxes                      214.2        94.4        -

  Minority Interests                 16.4        11.5       42.6
                                 ---------------------------------
Net Income                          525.6       386.0       36.2
                                 


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

NET SALES AND OPERATING COMPANY CONTRIBUTION
--------------------------------------------
                                          Three Months Ended    
                                             December 31,       
                                ------------------------------------
                                   2002        2001       % Change 
                                ------------------------------------ 
Net Sales (a)
  Home Products                 $   653.5   $   550.7       18.7   
  Spirits and Wine                  296.7       394.9      (24.9)(d)  
  Golf Products                     170.5       173.6       (1.8)  
  Office Products                   310.9       320.9       (3.1)
                                ------------------------------------  
    Total                       $ 1,431.6   $ 1,440.1       (0.6)  
                                ------------------------------------

Operating Company Contribution (b)
                                ------------------------------------
  Home Products                 $   113.4   $    91.7       23.7   
  Spirits and Wine                   92.0        99.4       (7.4)(d) 
  Golf Products                      11.1        13.7      (19.0)   
  Office Products                    33.7        22.2       51.8    
Less: Other Operating
 Expenses (c)                        26.7       153.0      (82.5)   
                                ------------------------------------
Operating Income                $   223.5   $    74.0      202.0     
                                ------------------------------------


                                          Twelve Months Ended    
                                             December 31,         
                                ------------------------------------
                                   2002        2001       % Change  
                                ------------------------------------
Net Sales (a)                                            
  Home Products                 $ 2,532.2   $ 2,068.8       22.4    
  Spirits and Wine                1,032.5     1,368.0      (24.5)(d) 
  Golf Products                   1,007.6       946.5        6.5    
  Office Products                 1,105.4     1,176.3       (6.0)   
                                ------------------------------------
    Total                       $ 5,677.7   $ 5,559.6        2.1   
                                ------------------------------------
                                       
Operating Company Contribution (b)                            
                                ------------------------------------
  Home Products                 $   416.6   $   316.7       31.5    
  Spirits and Wine                  285.1       306.0       (6.8)(d)
  Golf Products                     132.6       131.3        1.0    
  Office Products                    69.6        50.1       38.9   
Less: Other Operating
 Expenses (c)                       117.3       272.8      (57.0)  
                                ------------------------------------
Operating Income                $   786.6   $   531.3       48.1  
                                ------------------------------------