Source: Press Release 1/19/2013

Avon to Close Two Distribution Facilities

NEW YORK, January, 16, 2013 - Today Avon announced that the company will close its distribution facilities in Atlanta, GA and Pasadena, CA.

These facilities closures are part of the initial steps of the company's global Cost Savings Initiative that was announced in December. The global actions are aimed at concentrating resources on high-priority activities, boosting efficiencies and reducing costs.

Avon's commitment to its U.S. business, and to Representatives and their Consumers is unwavering. These changes will allow the company to focus on those activities which can best support its Representatives, help them grow their businesses and meet the needs of their customers. The decision to close these U.S. facilities is necessary to right-size our U.S. supply chain footprint, reduce complexities and restore the health of the U.S. business.

Orders processed at the Atlanta branch will begin to transition to Avon's Zanesville, OH facility in coming months, and that process is expected to be completed this summer. Plans for the Pasadena facility are still in development, and orders processed at that branch are expected to transition in 2014.

The decision to close the two branches was difficult, and not reached lightly. Avon's Atlanta and Pasadena facilities have served Avon and Avon's U.S. Representatives with distinction for many decades; however, these steps are essential in order to turn around the business by driving top-line growth and aggressively managing the cost base. These steps in the U.S., together with actions being taken globally, will help stabilize the company and begin the process of returning Avon to sustainable growth.

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