Trading Statement

Reckitt Benckiser PLC
8 December 1999

                                                                              
                 Reckitt Benckiser Update on Current Trading                  

*  Benckiser is well positioned to exceed its previously communicated target  
   of 15% growth in normalised net income and to meet its target of mid single
   digit growth in net revenue for the full year 1999.

*  In Q3 Benckiser grew net revenues by 6.6% and normalised net income by 20%.
   These results were due to strong performance across all regions, and       
   supported by the success of new initiatives such as PowerBall( tabs in     
   automatic dishwashing, and Vanish tabs in laundry additives.

*  While Reckitt & Colman sales to customers will be roughly in line with     
   market expectations, declining at a low to mid single digit rate, profit   
   before tax, excluding exceptional items, is expected to be of the order of 
   £165 million, i.e. below current market expectations.  This shortfall in   
   profit before tax is largely explained by temporary supply problems in     
   Europe, soft trading conditions in Latin America and parts of Middle East &
   Africa and delays in the realisation of 'Back on Track' restructuring      
   savings.

*  For the first nine months, Reckitt & Colman sales to customers were 2.6%   
   behind last year due to trade deloading, difficult trading in Latin America
   and East Asia, offset by continuing growth in Pharmaceutical products and  
   Food.  Normalised pretax profit for the first 9 months of £112m, is        
   significantly below last year.

*  However Q3 showed a somewhat improved trend.  With sales growth of 5%,     
   trading appears much improved.   However this indexes against a very low Q3
   in 1998, as Reckitt & Colman loaded heavily in June 1998, and as a result  
   saw low sales in July and August of that year.  Nevertheless, underlying   
   performance improved in North America while the quarter also saw growth in 
   Australasia, South Asia, and continuing growth in Food and Pharmaceuticals.

*  Despite some delays in regulatory clearances, post merger integration for  
   Reckitt Benckiser is entirely on track. The Company's new operating        
   framework has been established, while people appointments are now down to  
   individual country level, and will be largely complete by Q1 2000.

Commenting on today's announcement, Bart Becht, Chief Executive, said:

'While the majority of the combined entity is doing well, there are still
parts where trading performance must be improved.  To achieve this and
stimulate the overall business we aim to free up resources quickly to invest
in new initiatives and brand building to provide the platform for long-term
top line growth.  The good news is that the previously identified synergies
are clearly there and can be delivered.  These will fund the reinvigoration of
the business as well as providing value uplift to shareholders.  Shareholders
should be comforted by the fact that we are on track to integrate the
businesses and that we will soon be able to switch our focus to building the
growth platform for the long-term.  It is the delivery of profitable top line
growth that will ultimately justify the merger.'

                      Detailed Update on Current Trading                      

Following completion of the merger, Reckitt Benckiser plc (RB.) has completed
a review of recent trading results, the outlook for the full financial year,
and the planned timetable for post-merger integration.

Third Quarter Results : Benckiser (US GAAP)

Benckiser third quarter results were on track with net revenues of NLG 1,012m,
6.6% ahead of the equivalent quarter last year.   This brings the cumulative
net revenues for the 9 months to NLG 3,039m, 3.4% ahead of last year (4.1%
ahead at constant currency).

As expected, therefore, Benckiser has seen a further acceleration in the rate
of top line growth through the third quarter across all regions.  Western
Europe has seen further steady growth, with particularly notable performance
in the UK, France, Spain and the Netherlands.   Growth in net revenues has
returned in North America putting the nine months ahead of last year.  In Rest
of World strong growth in Poland, Hungary, Australia and China contributed to
a record quarter.

Amongst Categories, there was particularly strong growth in Dishwashing due to
the success of PowerBall TM, which has resulted in record shares being
achieved in UK, France and Netherlands, and previously high shares being
maintained in Germany in the face of considerable competitive action.  In
Laundry Additives, Calgon has grown further in Western Europe, while Fabric
Treatment had a very strong quarter behind the success of Vanish tabs in the
UK.  Laundry Cleaning continued to benefit from the roll-out of laundry
detergent tabs to the private label market.

Gross Margins continued to be substantially ahead of 1998, and were at 45.9%
of net revenues for the year to date.  Although the benefits of the
restructuring programme are now substantially delivered, ongoing programmes
such as 'Squeeze 50' and 'ROC' continue to deliver benefits.  A 25% increase
in advertising investment in the quarter, supporting the new brand
initiatives, has increased SG&A.

As a result, operating income for Qr.3. (excluding merger-related costs) rose
by 9% to NLG129m, and normalised net income, boosted by a lower tax charge was
20% ahead for the quarter at NLG76m.   For the year to date, therefore,
normalised operating income was NLG 364m (+11%) and Net Income was NLG 211m
(+18%).  Actual results reflected the first tranche of merger costs.

Outlook for Full Year : Benckiser

Benckiser has, this year, communicated a target of an accelerating trend in
net revenue growth to an aggregate growth of low to mid single digits, further
expansion in gross margins, reducing interest and tax charges leading to net
income growth of around 15%.   With the continuing success of such new
initiatives as PowerBall TM, Vanish tabs and laundry detergent tabs, combined
with focus on containing cost of goods,  the Company now appears to be well
positioned to exceed 15% net income growth while achieving its top line
target.


Recent Results : Reckitt & Colman (UK GAAP)

Reckitt & Colman Q3 sales to customers rose by 5% to £525m.  For the first
nine months, sales to customers were 2.6% behind last year at £1,568m. 

Sales in the Food and Pharmaceutical divisions continue to grow, with
particularly strong growth in Q3.  Food sales rose by over 20% and
Pharmaceutical sales increased by over 15% in the quarter.  Cumulatively both
Food and Pharmaceutical divisions are now ahead of last year.   Household
sales rose by 2% in Q3, helped by an easy comparison with Q3 1998 and
supported by substantial increases in marketing investment.   For the nine
months they were almost 5% behind the equivalent period last year.

Sales for the nine months have grown in Europe purely as a result of
continuing growth in the Pharmaceutical area.  Household sales in Europe are
running slightly behind last year, reflecting previous cutbacks in media
support and some temporary supply issues.  

In North America, the business is on an improving trend with sales for nine
months marginally behind last year, and Q3 sales well ahead.  Household sales
were 5% ahead in Q3.  Higher trade and marketing investment has been continued
to support the defence of Lysol Disinfectant Spray against a competitive
launch.  Although the brand's sales are running ahead of last year, it has
lost market share in the face of substantial competitive marketing support.

Latin America continues to trade significantly behind last year with sales to
customers affected by soft local market conditions in several countries,
notably Brazil, exacerbated by the devaluation of the Brazilian Real.

Growth in South Asia is strong following the elimination of trade overstock
while Australasia returned to growth in Q3.

In Qr.3. Reckitt & Colman's normalised pretax profit was £34m, significantly
ahead of the equivalent period last year.  However for the nine months,
normalised pretax profit was £112m, still substantially below last year.

Reckitt & Colman's previously announced restructuring programme, 'Back on
Track', has now been merged into the wider post-merger restructuring
programme.   The annual cost savings previously identified, estimated at up to
£45m, will be delivered through a combination of completed 'Back on Track'
programmes and merger synergies.


Outlook for Full Year : Reckitt & Colman

Based on latest internal estimates and forecasts, Reckitt & Colman is likely
to see full year sales to customers down by a low to mid single digit
percentage, in line with current market expectations. While Q3 trading was
ahead of a year ago, Q4 will be down as it indexes against a period of heavy
trade loading in 1998.  Underlying performance (excluding trade loading
effects) in North America appears to be on an improving trend, while business
is expected to be strong in South Asia and Australasia.   Sales in
Pharmaceuticals and Food are expected to continue their good performance,
although household sales are likely to remain behind last year.

Full year operating margins will be lower, however, reflecting consumer
marketing investment increased by over 15%.  As a result, operating margins
for the business as a whole are expected to be around 3.5 percentage points
below the level of 1998 excluding exceptional items.   These declines in
operating margin occur across the business although the principal shortfalls
are in North America, due to trade loading, Europe, and particularly in Latin
America.

As a result, it appears that the company will achieve profits before tax,
excluding exceptional charges (merger related, restructuring and Y2K), of
around £165m, i.e. below current market expectations.  The shortfall in pretax
profits is largely explained by temporary supply problems in Europe, soft
trading conditions in Latin America and parts of Middle East & Africa, and
delays in the realisation of 'Back on Track' savings. 

Despite the difficult year-on-year comparisons due to the trade
loading/deloading effects, the business appears to be on an improving trend. 
Second half performance should be better than the first half.  The Reckitt &
Colman brands are fundamentally strong, but have been significantly
undernourished in recent years.  The merger will provide the funds and the
management to invest in improving the performance.

1999 Financial Results : Reckitt Benckiser plc

Preliminary results for the year to December 1999 for Reckitt Benckiser plc
will be published on 15th March 2000.  These will be reported under UK GAAP,
which will require translation of Benckiser results into sterling, and the
adoption of consistent accounting policies.  They will therefore require
restatement compared to the separate reporting policies of both Benckiser and
Reckitt & Colman.

The results will reflect the trading outlook referred to above.  In addition,
they will reflect a number of one-off and exceptional charges.  These will
include the following items:-

The first part of the Reckitt & Colman 'Back on Track' restructuring programme
currently estimated to be around £47m out of a total of £75m.
The merger costs which are estimated at £40 million.
The first part of the exceptional merger integration costs.  At this stage it
is too early to give detailed guidance on the quantity to be charged in 1999.
Certain non-operating items, including profit on sale of brands and businesses
and the initial cost of management grants of restricted stock.  Again the full
quantum of these will be clearer after the year-end closing.

The results for 1999 will be merger accounted under UK Generally Accepted
Accounting Principles.  

                                                                              
                      Post Merger Integration Timetable                       

The integration of the two companies following completion of the merger has
begun but is inevitably in its early stages.  However the extended approval
timetable has allowed significant planning of this process to take place. 

At this stage it is already possible to confirm that the integration process
is on track against original plan.  Progress to date includes the following

*  The Operating Framework, the way in which the company will operate in      
   future, is agreed and established.

*  The organisational structure for the company is substantially agreed.  This
   is now being implemented down to individual country level.  It is expected 
   that this will be completed in the first half of 2000

*  Over 200 managers have now been appointed to positions in Reckitt          
   Benckiser.   It is currently expected that the process of appointing all   
   management and staff to the company will be substantially completed by the 
   end of the first quarter of 2000.

*  Accordingly identification of the source of the synergies and cost savings 
   from overlapping commercial structures and head offices is already         
   substantially advanced.  It is expected that this will complete in the     
   early part of 2000 and will identify the synergies in fixed and commercial 
   costs, in tax and in net working capital.  Identification of the enhanced  
   growth opportunities will follow during the course of 2000.  In parallel, a
   programme to capture these synergies has begun, and preliminary indications
   give great confidence that the indicated levels will be achieved.

*  At the same time, a review of all purchasing has been launched by Reckitt  
   Benckiser with all suppliers of raw and packaging materials, media and     
   services.  This review is expected to identify actual synergies and savings
   arising from utilisation of Reckitt Benckiser's enhanced purchasing power.

*  The company has selected its preferred ERP system and is preparing to      
   implement this following completion of the Year 2000 programmes and the    
   passing of the Millennium.

*  The divestiture process for the 'tail' has commenced.  The review to       
   identify all the elements of the tail is virtually complete, and the       
   programme of actual sales has begun with the marketing of some businesses  
   to interested parties.

While these processes are well advanced, in line with the original merger
timetable, it is clearly too early for concrete results to come out of the
reviews.  Accordingly it is the Company's intention to issue an update on the
merger integration process, including the phasing and quantity of cost savings
and the accompanying charges, in early February 2000, following completion of
these reviews.


Communication Timetable

Reckitt Benckiser is committed to regular open dialogue with financial markets
and its shareholders.  Accordingly the Company confirms its timetable of
future communications for the next few months so that the market can clearly
understand when it proposes to issue updated information on trading and the
progress of the merger.

8 February 2000          Update on merger integration process, cost savings   
                         and associated charges.
15 March 2000            Preliminary Results for Financial Year 1999.
12 May 2000              Annual General Meeting
15 May 2000              Release of Results for Qr.1. 2000
16 August 2000           Release of Results for Qr.2 and Half Year 2000.
15 November 2000         Release of Results for Qr.3. 2000


For further information

Tom Corran               telephone        + 31 20 405 7534  (Amsterdam)
Senior Vice President                     + 44 1753 746 548 (London)
Corporate Communications & Investor Relations

Bobby Leach              telephone        + 44 171 329 0096
Shandwick


Notes

1. The term 'normalised' indicates excluding exceptional charges such as      
   restructuring, merger-related costs, Year 2000 charges and post-merger     
   restructuring charges.

2. Q3 refers to the Third Quarter of the current financial year               
   (July-September inclusive)

3. Nine months refers to the first nine months of the current financial year  
   (January - September inclusive)