The companynow anticipates year-over-year gross margin improvement in the range of140-160 basis points

The companynow anticipates year-over-year gross margin improvement in the range of140-160 basis points, versus its previous outlook of 50-100 basis points,due to more favorable commodity cost expectations and increased costsavings, partially offset by a more negative impact from foreigncurrencies.Clorox now anticipates diluted EPS in the range of $3.70 to $3.80, versusits previous outlook of $3.60-$3.75. The updated range reflects strongyear-to-date results, partially offset by the impact of approximately $12million to $14 million of pretax foreign currency transaction losses,primarily in Venezuela, and higher investment in demand-buildingactivities. The updated range also includes the financial impact of asecond price rollback on Glad(R) trash bags, effective May 1, in light ofdeclining resin prices.Clorox provides initial fiscal 2010 outlook–1-2% sales growth–50-100 basis points gross margin improvement–Diluted EPS in the range of $4.00-$4.15For fiscal year 2010, Clorox’s initial financial outlook is for salesgrowth in the range of 1-2 percent, which reflects low single-digit volumegrowth. The company anticipates continued foreign currency devaluationversus the U.S. dollar, partially offset by additional price increases,primarily in International locations. Clorox anticipates continuedmaterial currency impact through the first quarter, until the companylaps the currency declines of the second quarter of fiscal year 2009,followed by slight but steady deterioration through the balance of thefiscal year.

Excluding the impact of lower foreign currencies, thecompany anticipates 3-4 percent sales growth in constant dollars.For fiscal year 2010, Clorox anticipates that volume and sales willdecline in the first half due to a comparison with strong results in theprior-year period. In addition, Clorox’s plans to introduce new versionsof several products in the second half of the fiscal year are expected toresult in a volume slowdown in the second quarter as the company sellsthrough existing inventory. The company plans a higher level oftrade-promotion spending to support this new product activity.Clorox anticipates gross margin expansion in the range of 50-100 basispoints. The company projects cost savings in the range of $115 million to$120 million, including about $25 million to $30 million benefit from theoperating model implementation. Of these amounts, about $80 million to $90million is expected to benefit gross margin. In addition, gross margin isexpected to benefit from approximately $90 million to $110 million inlower commodity and energy costs.

Gross margin will also be impacted bythe aforementioned price increases, trade-promotion spending and foreigncurrency losses. Included in this outlook are restructuring-relatedcharges in the range of $20 million to $30 million, primarily related tothe aforementioned manufacturing network consolidation and the operatingmodel implementation. About half of these charges will be recorded incost of goods sold.The company’s anticipated tax rate for fiscal year 2010 is in the range of34-35 percent.Including these factors, the company anticipates fiscal year 2010 dilutedEPS in the range of $4.00-$4.15. Eastern time), Clorox willhost a live audio webcast of a discussion with the investment communityregarding the company’s third-quarter results. The webcast can be accessedat Following a live discussion, areplay of the webcast will be archived for one week on the company’s Website.The Clorox CompanyThe Clorox Company is a leading manufacturer and marketer of consumerproducts with fiscal year 2008 revenues of $5.3 billion. Clorox marketssome of consumers’ most trusted and recognized brand names, including itsnamesake bleach and cleaning products, Green Works(TM) natural cleaners,Armor All(R) and STP(R) auto-care products, Fresh Step(R) and ScoopAway(R) cat litter, Kingsford(R) charcoal, Hidden Valley(R) and K CMasterpiece(R) dressings and sauces, Brita(R) water-filtration systems,Glad(R) bags, wraps and containers, and Burt’s Bees(R) natural personalcare products. With approximately 8,300 employees worldwide, the companymanufactures products in more than two dozen countries and markets themin more than 100 countries.

Clorox is committed to making a positivedifference in the communities where its employees work and live. Foundedin 1980, The Clorox Company Foundation has awarded cash grants totalingmore than $73.4 million to nonprofit organizations, schools and colleges.In fiscal 2008 alone, the foundation awarded $3.7 million in cash grants,and Clorox made product donations valued at $5.3 million. For moreinformation about Clorox, visit statementsThis press release contains “forward looking statements” within themeaning of Section 27A of the Securities Act of 1933, as amended (theSecurities Act), and Section 21E of the Securities Exchange Act of 1934,as amended (the Exchange Act), and such forward looking statementsinvolve risks and uncertainties. Except for historical information,matters discussed above, including statements about future volume, sales,costs, cost savings, earnings, cash outflows, plans, objectives,expectations, growth, or profitability, are forward looking statementsbased on management’s estimates, assumptions and projections. Words suchas “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,”"plans,” “believes,” “seeks,” “estimates,” and variations on such words,and similar expressions, are intended to identify such forward lookingstatements.