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Revlon Reports First Quarter 2013 Results

  Revlon Reports First Quarter 2013 Results

Business Wire

NEW YORK -- April 25, 2013

Revlon, Inc. (NYSE: REV) today announced results for the first quarter ended
March 31, 2013.

First quarter 2013 results compared to first quarter 2012:

  *Net sales of $331.9 million compared to $330.7 million. Excluding the
    unfavorable impact of foreign currency fluctuations of $5.9 million, first
    quarter 2013 net sales increased by 2.1%.
  *Operating income of $47.3 million, which included an $8.3 million gain in
    SG&A related to the insurance settlement for loss of inventory due to the
    2011 fire in Venezuela, compared to $44.3 million.
  *Net loss of $6.9 million, or $0.13 per diluted share, compared to net
    income of $8.5 million, or $0.16 per diluted share. Net loss in 2013
    included charges of $27.9 million ($16.9 million after tax) related to the
    2013 refinancing of the Company’s senior notes and the amendment of its
    bank term loan, and the $8.3 million gain on the insurance settlement
    noted above.
  *Adjusted EBITDA^a of $64.3 million, which included the $8.3 million gain
    on the insurance settlement noted above, compared to $60.0 million.
  *Operating income and Adjusted EBITDA for the first quarter of 2013
    included $1.1 million of higher incentive compensation expense related to
    a modification to the structure of the Company’s long-term incentive plan
    to better align the plan with the Company’s long-term performance. While
    the new structure does not change the amount of the potential annual
    incentive award, the transition is expected to result in higher expense in
    2013 and 2014 as compared to 2012 by approximately $5 million and $3
    million, respectively. The Company expects no additional expense related
    to the transition to the new structure after 2014.
  *Net cash used in operating activities of $16.9 million, compared to net
    cash used in operating activities of $20.4 million; free cash flow^b was
    negative $22.0 million, compared to free cash flow of negative $23.9
    million.

Commenting on today’s announcement, Revlon President and Chief Executive
Officer, Alan T. Ennis, said, “Our strategic goal is to drive profitable
growth and, in the first quarter of 2013, we grew net sales by 2.1%. We
introduced several successful, consumer-preferred products in the marketplace
and we increased support behind our brands. Our SinfulColors acquisition
performed very well, and we are on track with the integration of our more
recently acquired Pure Ice brand, which is also performing well. Lastly, in
the quarter, we improved our capital structure by refinancing our senior notes
and amending our bank term loan, reducing interest rates and extending
maturities on our debt.”

                          First Quarter 2013 Results

Note: The results of operations related to Pure Ice are included in the
Company's consolidated financial statements commencing on the date of
acquisition, July 2, 2012.

Net sales in the first quarter of 2013 were $331.9 million, compared to $330.7
million in the first quarter of 2012. Excluding the unfavorable impact of
foreign currency fluctuations of $5.9 million, net sales increased $7.1
million, or 2.1%. The increase was primarily driven by higher net sales of
Revlon and SinfulColors color cosmetics and the inclusion of the net sales of
Pure Ice, partially offset by lower net sales of Almay color cosmetics and
Revlon ColorSilk hair color.

In the United States, net sales in the first quarter of 2013 were $192.1
million, an increase of $7.4 million, or 4.0%, compared to $184.7 million in
the same period last year. The increase was primarily driven by higher net
sales of Revlon and SinfulColors color cosmetics and the inclusion of the net
sales of Pure Ice, partially offset by lower net sales of Almay color
cosmetics and Revlon ColorSilk hair color.

In Asia Pacific, net sales in the first quarter of 2013 were $53.6 million, a
decrease of $2.5 million, or 4.5%, compared to $56.1 million in the same
period last year. Excluding the unfavorable impact of foreign currency
fluctuations, net sales decreased $1.1 million, or 2.0%, primarily due to
lower net sales of Revlon color cosmetics in China, partially offset by higher
net sales of Revlon color cosmetics in Japan and the introduction of
SinfulColors color cosmetics in Australia.

In Europe, Middle East and Africa, net sales in the first quarter of 2013 were
$40.7 million, a decrease of $5.1 million, or 11.1%, compared to $45.8 million
in the same period last year. Excluding the unfavorable impact of foreign
currency fluctuations, net sales decreased $1.9 million, or 4.1%, primarily
due to lower net sales of both Revlon color cosmetics and other beauty care
products in France. The unfavorable impact of foreign currency fluctuations on
net sales in the first quarter was primarily the result of the weaker South
African rand versus the U.S. dollar as the rand declined 13.5% against the
U.S. dollar year-over-year.

In Latin America and Canada, net sales in the first quarter of 2013 were $45.5
million, an increase of $1.4 million, or 3.2%, compared to $44.1 million in
the same period last year. Excluding the unfavorable impact of foreign
currency fluctuations, net sales increased $2.7 million, or 6.1%. This
increase was primarily due to higher net sales of Revlon color cosmetics
throughout the region and higher net sales of other beauty care products in
Argentina. Net sales in Venezuela were essentially unchanged compared to the
same period last year as higher selling prices reflecting market conditions
and inflation were largely offset by lower sales volumes. Net sales in
Argentina benefited from higher selling prices reflecting market conditions
and inflation, which accounted for approximately one-third of the $2.7 million
net sales increase in the region.

Operating income in the first quarter of 2013 was $47.3 million, compared to
$44.3 million in the same period last year. Adjusted EBITDA in the first
quarter of 2013 was $64.3 million, compared to $60.0 million in the same
period last year. Operating income and Adjusted EBITDA in the first quarter of
2013 included an $8.3 million gain in SG&A related to the settlement of the
Company’s claim for the loss of inventory due to the June 2011 fire in
Venezuela and $0.3 million of restructuring and related charges associated
with the restructuring actions announced in September 2012. Operating income
and Adjusted EBITDA in the first quarter of 2012 included $1.1 million of
benefit in SG&A from business interruption insurance recoveries related to the
fire in Venezuela. Excluding the insurance settlement gain, SG&A expenses
increased versus the first quarter of 2012 primarily due to higher brand
support and higher incentive compensation.

Operating income and Adjusted EBITDA for the first quarter of 2013 included
$1.1 million of higher incentive compensation expense related to a
modification to the structure of the Company’s long-term incentive plan to
better align the plan with the Company’s long-term performance. While the new
structure does not change the amount of the potential annual incentive award,
the transition is expected to result in higher expense in 2013 and 2014 as
compared to 2012 by approximately $5 million and $3 million, respectively. The
Company expects no additional expense related to the transition to the new
structure after 2014.

Interest expense, including preferred stock dividends, decreased $1.2 million
to $20.4 million in the first quarter of 2013 compared to the same period last
year, primarily due to lower interest rates as a result of the senior notes
refinancing and bank term loan amendment.

The provision for income taxes was $1.2 million compared to $11.0 million in
the same period last year. The lower tax provision in the first quarter of
2013 was primarily due to the loss on early extinguishment of debt as a result
of the refinancing of the Company’s senior notes and the bank term loan
amendment. Cash paid for income taxes, net of refunds, in the first quarter of
2013 was $2.7 million, compared to $3.4 million in the same period last year.

Net loss in the first quarter of 2013 was $6.9 million, or $0.13 per diluted
share, compared to net income of $8.5 million, or $0.16 per diluted share, in
the same period last year. Net loss in the first quarter of 2013 included
charges of $27.9 million ($16.9 million after tax) related to the early
extinguishment of debt as a result of the refinancing of the Company’s senior
notes and the bank term loan amendment, an $8.3 million gain on insurance
settlement noted above, $0.3 million of restructuring and related charges
associated with the restructuring actions announced in September 2012 and a
foreign currency loss of $0.6 million related to the re-measurement of Revlon
Venezuela’s balance sheet as a result of Venezuela’s currency devaluation.

Net cash used in operating activities in the first quarter of 2013 was $16.9
million, compared to net cash used in operating activities of $20.4 million in
the same period last year. Free cash flow was negative $22.0 million, compared
to negative free cash flow of $23.9 million in the same period last year. The
first quarter of 2013 as compared to the same period last year benefited from
lower premium payments related to certain of the Company's multi-year
insurance programs, lower pension contributions, and other favorable changes
in working capital, partially offset by accelerated payments of interest
expense due to the debt refinancings discussed below, higher incentive
compensation payments, and restructuring payments related to actions
previously announced in September 2012.

Adjusted EBITDA and free cash flow are non-GAAP measures that are defined in
the footnotes to this release and are reconciled to their most directly
comparable GAAP measures, respectively, in the accompanying financial tables.

                              Debt Refinancings

In the first quarter of 2013, the Company took several steps to improve its
capital structure. In February 2013, the Company issued $500 million in
aggregate principal amount of 5.75% senior unsecured notes due 2021 at par.
The net proceeds from the issuance of these notes, together with cash on hand,
was used to repay and redeem all of the $330 million aggregate principal
amount outstanding, including accrued interest, of the Company’s 9.75% senior
secured notes due November 2015, pay the applicable redemption and tender
premiums, and pay fees and expenses incurred in connection with the new
issuance and any redemption. The remaining balance was or will be used for
general corporate purposes, including the debt reduction transactions as
discussed below.

Also in February 2013, the Company amended its 2011 Term Loan Facility to,
among other things, reduce the total aggregate principal amount outstanding by
$113 million, from $788 million to $675 million, using proceeds from the
Company’s senior unsecured note issuance discussed above, together with cash
on hand, and to reduce the interest rates applicable to the 2011 Term Loan
Facility.

                               Company Strategy

The Company continues to execute its business strategy: (i) build our strong
brands; (ii) develop our organizational capability; (iii) drive our company to
act globally; (iv) pursue growth opportunities; and (v) improve our financial
performance.

                First Quarter 2013 Results and Conference Call

The Company will host a conference call with members of the investment
community on April 25, 2013 at 9:30 A.M. EDT to discuss First Quarter 2013
results. Access to the call is available to the public at www.revloninc.com.

About Revlon

Revlon is a global color cosmetics, hair color, beauty tools, fragrances,
skincare, anti-perspirant deodorants and beauty care products company whose
vision is Glamour, Excitement and Innovation through high-quality products at
affordable prices. Revlon® is one of the strongest consumer brand franchises
in the world. Revlon’s global brand portfolio includes Revlon® color
cosmetics, Almay® color cosmetics, SinfulColors® color cosmetics, Pure Ice®
color cosmetics, Revlon ColorSilk® hair color, Revlon® beauty tools, Charlie®
fragrances, Mitchum® anti-perspirant deodorants, and Ultima II® and Gatineau®
skincare. Websites featuring current product and promotional information can
be reached at www.revlon.com, www.almay.com and www.mitchum.com. Corporate and
investor relations information can be accessed at www.revloninc.com.

                          Footnotes to Press Release

^a Adjusted EBITDA is a non-GAAP financial measure that is reconciled to net
income, its most directly comparable GAAP measure, in the accompanying
financial tables. Adjusted EBITDA is defined as income from continuing
operations before interest, taxes, depreciation, amortization, gains/losses on
foreign currency fluctuations, gains/losses on the early extinguishment of
debt and miscellaneous expenses. In calculating Adjusted EBITDA, the Company
excludes the effects of gains/losses on foreign currency fluctuations,
gains/losses on the early extinguishment of debt, results of and gains/losses
on discontinued operations and miscellaneous expenses because the Company's
management believes that some of these items may not occur in certain periods,
the amounts recognized can vary significantly from period to period and these
items do not facilitate an understanding of the Company's operating
performance. The Company's management utilizes Adjusted EBITDA as an operating
performance measure in conjunction with GAAP measures, such as net income and
gross margin calculated in accordance with GAAP.

The Company's management uses Adjusted EBITDA as an integral part of its
reporting and planning processes and as one of the primary measures to, among
other things --

(i)     monitor and evaluate the performance of the Company's business
          operations;
(ii)      facilitate management's internal comparisons of the Company's
          historical operating performance of its business operations;
          facilitate management's external comparisons of the results of
(iii)     its overall business to the historical operating performance of
          other companies that may have different capital structures and
          debt levels;
          review and assess the operating performance of the Company's
(iv)      management team and, together with free cash flow and other
          operational objectives, as a measure in evaluating employee
          compensation and bonuses;
(v)       analyze and evaluate financial and strategic planning decisions
          regarding future operating investments; and
(vi)      plan for and prepare future annual operating budgets and
          determine appropriate levels of operating investments.
                                                                            

The Company's management believes that Adjusted EBITDA is useful to investors
to provide them with disclosures of the Company's operating results on the
same basis as that used by the Company's management. Additionally, the
Company's management believes that Adjusted EBITDA provides useful information
to investors about the performance of the Company's overall business because
such measure eliminates the effects of unusual or other infrequent charges
that are not directly attributable to the Company's underlying operating
performance. Additionally, the Company's management believes that because it
has historically provided Adjusted EBITDA in previous press releases, that
including such non-GAAP measure in its earnings releases provides consistency
in its financial reporting and continuity to investors for comparability
purposes. Accordingly, the Company believes that the presentation of Adjusted
EBITDA, when used in conjunction with GAAP financial measures, is a useful
financial analysis tool, used by the Company's management, as described above,
that can assist investors in assessing the Company's financial condition,
operating performance and underlying strength. Adjusted EBITDA should not be
considered in isolation or as a substitute for net income / (loss) prepared in
accordance with GAAP. Other companies may define EBITDA differently. Also,
while EBITDA is defined differently than Adjusted EBITDA for the Company's
credit agreement, certain financial covenants in its borrowing arrangements
are tied to similar measures. Adjusted EBITDA, as well as the other
information in this press release, should be read in conjunction with the
Company's financial statements and footnotes contained in the documents that
the Company files with the U.S. Securities and Exchange Commission.

^b Free cash flow is a non-GAAP measure that is reconciled to net cash
provided by/(used in) operating activities, its most directly comparable GAAP
measure, in the accompanying financial tables. Free cash flow is defined as
net cash provided by/(used in) operating activities, less capital expenditures
for property, plant and equipment, plus proceeds from the sale of certain
assets. Free cash flow excludes proceeds on sale of discontinued operations.
Management uses free cash flow (i) to evaluate its business and financial
performance and overall liquidity; (ii) in strategic planning; and (iii) to
review and assess the operating performance of the Company's management team
and, together with Adjusted EBITDA and other operational objectives, as a
measure in evaluating employee compensation and bonuses. Management believes
that free cash flow is useful for investors because it provides them with an
important perspective on the cash available for debt repayment and other
strategic measures, after making necessary capital investments in property and
equipment to support the Company's ongoing business operations, and provides
them with the same measures that management uses as the basis for making
resource allocation decisions. Free cash flow does not represent the residual
cash flow available for discretionary expenditures, as it excludes certain
expenditures such as mandatory debt service requirements, which for the
Company are significant. The Company does not intend for free cash flow to be
considered in isolation or as a substitute for the related GAAP measures.
Other companies may define free cash flow or similarly titled measures
differently.

                          Forward-Looking Statements

Statements made in this press release, which are not historical facts,
including statements about the Company's plans, strategies, focus, beliefs and
expectations, are forward-looking and subject to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements speak only as of the date they are made and, except for the
Company's ongoing obligations under the U.S. federal securities laws, the
Company undertakes no obligation to publicly update any forward-looking
statement, whether to reflect actual results of operations; changes in
financial condition; changes in general U.S. or international economic,
industry or cosmetics category conditions; changes in estimates, expectations
or assumptions; or other circumstances, conditions, developments or events
arising after the issuance of this press release. Such forward-looking
statements include, without limitation, the Company's following beliefs,
expectations, focus and/or plans: (i) the Company’s belief that while the new
structure of its long-term incentive plan does not change the amount of the
potential annual incentive award, the transition is expected to result in
higher expense in 2013 and 2014 as compared to 2012 by approximately $5
million and $3 million, respectively, and that the Company expects no
additional expense related to the transition to the new structure after 2014;
(ii) the Company’s strategic goal to drive profitable growth; (iii) the
Company’s belief that it introduced several successful, consumer-preferred
products in the marketplace; (iv) the Company’s belief that it is on track
with the integration of its more recently acquired Pure Ice brand; (v) the
Company’s plans to use the remaining balance from the issuance of the 5.75%
senior unsecured notes for general corporate purposes; and (vi) the Company’s
plans to continue to execute its business strategy, which is to: (a) build our
strong brands, (b) develop our organizational capability, (c) drive our
company to act globally, (d) pursue growth opportunities and (e) improve our
financial performance. Actual results may differ materially from such
forward-looking statements for a number of reasons, including those set forth
in our filings with the SEC, including, without limitation, our 2012 Annual
Report on Form 10-K that we filed with the SEC in February 2013 and our
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that we have
filed or will file with the SEC during 2013 (which may be viewed on the SEC's
website at http://www.sec.gov or on our website at http://www.revloninc.com),
as well as reasons including: (i) unanticipated consequences from the
Company’s new long-term incentive plan, such as higher than anticipated
expenses or changes in the periods when such expenses would be recognized;
(ii) difficulties, delays, unanticipated costs or our inability to drive
profitable growth, including, without limitation, less than expected
profitable net sales growth, such as due to the reasons set forth in clause
(vi)(a) below; (iii) less than anticipated marketplace results from the
Company’s consumer-preferred products, such as due to the reasons set forth in
clause (vi)(a) below; (iv) difficulties, delays, unanticipated costs or our
inability to integrate the Pure Ice brand into our business; (v) difficulties,
delays, unexpected costs or our inability to use the remaining balance from
the issuance of the 5.75% senior unsecured notes for general corporate
purposes; and (vi) difficulties, delays, unanticipated costs or our inability
to continue to execute our business strategy, such as (a) less than expected
growth of our strong brands, such as due to difficulties, delays,
unanticipated costs or our inability to launch innovative products, such as
due to less than effective new product development; less than expected
acceptance of our new products by consumers and/or retail customers; less than
expected acceptance of our brand communication for such products by consumers
and/or retail partners; less than expected levels of advertising and/or
promotional activities for our new product launches; less than expected levels
of execution with our retail partners; less than anticipated sales of our new
products as a result of consumer response to worldwide economic or other
conditions; greater than expected volatility in the retail sales environment;
more than anticipated returns for such products; actions by our retail
customers impacting our sales, including in response to any decreased consumer
spending in response to weak economic conditions or weakness in the cosmetics
category in the mass retail channel; adverse changes in currency exchange
rates and/or foreign currency exchange controls; decreased sales of the
Company's products as a result of increased competitive activities by the
Company’s competitors; changes in consumer purchasing habits, including with
respect to shopping channels; retailer inventory management; greater than
expected impact from changes in retailer pricing or promotional strategies;
greater than anticipated retailer space reconfigurations or reductions in
retailer display space; less than anticipated results from the Company's
existing or new products or from its advertising, promotional and/or marketing
plans; or if the Company’s expenses, including, without limitation, for
advertising, promotions and/or marketing activities or for sales returns
related to any reduction of retail space, product discontinuances or
otherwise, exceed the anticipated level of expenses, (b) difficulties, delays
or the inability to develop our organizational capability, (c) our inability
to drive our company to act globally, such as due to higher than anticipated
levels of investment required to support and build our brands globally and/or
less than anticipated results from our regional and/or multi-national brands,
(d) difficulties, delays or unanticipated costs in connection with plans to
pursue growth opportunities, such as due to those reasons set forth in clause
(vi)(a) above and/or difficulties, delays or unanticipated costs in
consummating, or the Company’s inability to consummate, transactions to
acquire new brands and/or (e) difficulties, delays, unanticipated costs or our
inability to improve our financial performance. Factors other than those
listed above could also cause the Company’s results to differ materially from
expected results. Additionally, the business and financial materials and any
other statement or disclosure on or made available through the Company’s
websites or other websites referenced herein shall not be incorporated by
reference into this release.


                                                                             
  REVLON, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
  (dollars in millions, except share and per share amounts)
                                                          
                                               Three Months Ended
                                               March 31,
                                               2013               2012
                                               (Unaudited)
                                                                             
  Net sales                                  $ 331.9            $ 330.7
  Cost of sales                                116.9             115.7
  Gross profit                                 215.0              215.0
  Selling, general and administrative          167.5              170.7
  expenses
  Restructuring charges                        0.2               -
                                                                             
  Operating income                             47.3              44.3
                                                                             
  Other expenses, net:
  Interest expense                             18.8               20.0
  Interest expense - preferred stock           1.6                1.6
  dividends
  Amortization of debt issuance costs          1.3                1.3
  Loss on early extinguishment of debt         27.9               -
  Foreign currency losses, net                 3.3                1.7
  Miscellaneous, net                           0.1               0.2
  Other expenses, net                          53.0              24.8
                                                                             
  (Loss) income before income taxes            (5.7       )       19.5
  Provision for income taxes                   1.2               11.0
                                                                             
  Net (loss) income                          $ (6.9       )     $ 8.5
                                                                             
  Other comprehensive income:
  Currency translation adjustment, net         (0.8       )       1.2
  of tax
  Amortization of pension related              1.9               3.8
  costs, net of tax
  Other comprehensive income                   1.1               5.0
                                                                             
  Total comprehensive (loss) income          $ (5.8       )     $ 13.5
                                                                             
  Basic (loss) earnings per share            $ (0.13      )     $ 0.16
  Diluted (loss) earnings per share          $ (0.13      )     $ 0.16
                                                                             
  Weighted average number of common
  shares outstanding:
  Basic                                        52,356,798        52,331,343
  Diluted                                      52,356,798        52,356,844

                                                       
                                                                             
  REVLON, INC. AND SUBSIDIARIES
  CONSOLIDATED CONDENSED BALANCE SHEETS
  (dollars in millions)
                                                                             
                                              March 31,         December 31,
                                              2013              2012
                                              (Unaudited)
  ASSETS
  Current assets:
  Cash and cash equivalents                 $ 120.8           $ 116.3
  Trade receivables, net                      185.9             216.0
  Inventories                                 128.2             114.7
  Deferred income taxes - current             49.4              48.5
  Prepaid expenses and other                  55.1             45.7      
  Total current assets                        539.4             541.2
  Property, plant and equipment, net          100.3             99.5
  Deferred income taxes - noncurrent          215.3             215.2
  Goodwill                                    217.8             217.8
  Intangible assets, net                      67.6              68.8
  Other assets                                101.5            94.1      
  Total assets                              $ 1,241.9        $ 1,236.6   
                                                                             
  LIABILITIES AND STOCKHOLDERS'
  DEFICIENCY
  Current liabilities:
  Short-term borrowings                     $ 5.0             $ 5.0
  Current portion of long-term debt           -               21.5
  Accounts payable                            112.1             101.9
  Accrued expenses and other                  220.9             276.3
  Redeemable preferred stock                  48.5             48.4      
  Total current liabilities                   386.5             453.1
  Long-term debt                              1,227.6           1,145.8
  Long-term pension and other                 228.2             233.7
  post-retirement plan liabilities
  Other long-term liabilities                 54.7              53.3
  Commitments and contingencies
  Total stockholders' deficiency              (655.1   )        (649.3    )
  Total liabilities and stockholders'       $ 1,241.9        $ 1,236.6   
  deficiency


                                                                             
  REVLON, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CASH FLOWS
  (dollars in millions)
                                                
                                                      Three Months Ended
                                                      March 31,
                                                      2013         2012
                                                      (Unaudited)
                                                                             
  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss) income                                 $ (6.9   )     $ 8.5
  Adjustments to reconcile net (loss) income
  to net cash used in operating activities:
  Depreciation and amortization                       17.0           15.4
  Amortization of debt discount                       0.4            0.5
  Stock compensation amortization                     -            0.3
  (Benefit from) provision for deferred               (1.6   )       6.3
  income taxes
  Loss on early extinguishment of debt                27.9           -
  Amortization of debt issuance costs                 1.3            1.3
  (Gain) loss on sale of certain assets               (0.4   )       0.1
  Pension and other post-retirement (income)          (0.1   )       1.4
  costs
  Change in assets and liabilities:
  Decrease in trade receivables                       26.9           23.8
  Increase in inventories                             (15.4  )       (16.7 )
  Increase in prepaid expenses and other              (10.5  )       (12.1 )
  current assets
  Increase (decrease) in accounts payable             11.1           (6.2  )
  Decrease in accrued expenses and other              (48.3  )       (14.1 )
  current liabilities
  Pension and other post-retirement plan              (2.7   )       (6.2  )
  contributions
  Purchases of permanent displays                     (11.1  )       (8.5  )
  Other, net                                          (4.5   )       (14.2 )
  Net cash used in operating activities               (16.9  )       (20.4 )
                                                                             
  CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                (5.5   )       (3.5  )
  Proceeds from the sale of certain assets            0.4           -   
  Net cash used in investing activities               (5.1   )       (3.5  )
                                                                             
  CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in short-term borrowings and           0.2            10.9
  overdraft
  Proceeds from the issuance of 5 3/4% Senior         500.0          -
  Notes
  Repayment of the 9 3/4% Senior Secured              (330.0 )       -
  Notes
  Repayments under the 2011 Term Loan                 (113.0 )       (2.0  )
  Facility
  Payment of financing costs                          (27.9  )       -
  Other financing activities                          (0.6   )       0.2   
  Net cash provided by financing activities           28.7          9.1   
  Effect of exchange rate changes on cash and         (2.2   )       0.6   
  cash equivalents
  Net increase (decrease) in cash and cash            4.5            (14.2 )
  equivalents
  Cash and cash equivalents at beginning of           116.3         101.7 
  period
  Cash and cash equivalents at end of period        $ 120.8       $ 87.5  
                                                                             
  Supplemental schedule of cash flow
  information:
  Cash paid during the period for:
  Interest                                          $ 24.2         $ 12.2
  Preferred stock dividends                         $ 1.6          $ 1.5
  Income taxes, net of refunds                      $ 2.7          $ 3.4
                                                                             
  Supplemental schedule of non-cash investing
  and financing activities:
  Treasury stock received to satisfy minimum        $ -          $ 1.1
  tax withholding liabilities


                                                                             
  REVLON, INC. AND SUBSIDIARIES
  ADJUSTED EBITDA RECONCILIATION
  (dollars in millions)
                                                         
                                                 Three Months Ended
                                                 March 31,
                                                 2013       2012
                                                 (Unaudited)
  Reconciliation to net (loss) income:
                                                                             
  Net (loss) income                            $ (6.9   )       $ 8.5
                                                                             
  Interest expense                               20.4             21.6
  Amortization of debt issuance costs            1.3              1.3
  Loss on early extinguishment of debt           27.9             -
  Foreign currency losses, net                   3.3              1.7
  Miscellaneous, net                             0.1              0.2
  Provision for income taxes                     1.2              11.0
  Depreciation and amortization                  17.0            15.7
                                                                             
  Adjusted EBITDA                              $ 64.3          $ 60.0


                                                                             
  REVLON, INC. AND SUBSIDIARIES
  FREE CASH FLOW RECONCILIATION
  (dollars in millions)
                                                            
                                                     Three Months Ended
                                                     March 31,
                                                     2013            2012
                                                     (Unaudited)
  Reconciliation to net cash used in
  operating activities:
                                                                             
  Net cash used in operating activities            $ (16.9 )       $ (20.4 )
                                                                             
  Less capital expenditures                          (5.5  )         (3.5  )
  Plus proceeds from the sale of certain             0.4            -   
  assets
                                                                             
  Free cash flow                                   $ (22.0 )       $ (23.9 )
                                                                             

Contact:

Revlon
Investor Relations:
Elise Garofalo, 212-527-5264
Senior Vice President, Treasurer and Investor Relations
 
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