FAIRFIELD, Conn.--(BUSINESS WIRE)--March 3, 2004--Acme United Corporation (ASE:ACU) today announced net income for the year 2003 of $1.2 million or $.34 per diluted share compared to $659,000 or $.19 per share in 2002. For the fourth quarter of 2003, net income was $227,000 or $.06 per diluted share compared to $40,000, or $.01 per share in 2002.

Net sales in 2003 were $35.0 million versus $30.9 million in 2002, an increase of 13% (10% at constant currency). Net sales in the U.S. increased 16% due to the launch of new products, market share gains and new customers. International sales increased by 5% due to currency gains. Net sales for the fourth quarter of 2003 were $8.1 million compared to $6.9 in the same quarter of 2002, an increase of 18% (14% at constant currency).

Walter C. Johnsen, President and CEO, said, "I am particularly pleased with our new product successes and market share gains. Products introduced during the past 36 months accounted for 23% of 2003 revenues and continue to gain momentum. We are entering 2004 with confidence."

Gross margins were 37.6% in 2003 versus 33.8% in 2002. The improvement is primarily due to new products and productivity gains.

Income before income taxes was $2.3 million in 2003 compared with $97,000 in 2002. Excluding restructuring costs related to liquidating the UK business, income before income taxes was $653,000 in 2002.

Income tax expense for 2003 was $1.1 million versus a tax benefit of $562,000 in 2002. In 2002 the Company recognized a significant one-time income tax benefit associated with the UK liquidation.

The Company's debt less cash on December 31, 2003 was $3.5 million compared to $4.5 million on December 31, 2002. In 2003, the Company repurchased 118,200 shares, or approximately 3% of the outstanding shares, at a cost of $470,000.

ACME UNITED CORPORATION is a specialized supplier of cutting devices, measuring instruments, and safety products for school, home, and office use.

Forward-looking statements in this report, including without limitation, statements related to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including without limitation the following: (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth, and (iii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.

                        ACME UNITED CORPORATION
                   CONSOLIDATED STATEMENT OF INCOME
                         YEAR END REPORT 2003

                                                 Quarter     Quarter
                                                  Ended       Ended
                                                 Dec. 31,    Dec. 31,
                                                   2003        2002
Amounts in $000's except per share data        (Unaudited) (Unaudited)
----------------------------------------------------------------------


Net Sales                                       $   8,106   $   6,863
Gross Profit                                        3,160       2,462
Selling, General, and Administrative Expenses       2,793       2,505
Other (Income) Expense                               (101)        193
Pre-Tax Income (loss)                                 468        (236)
Income Tax Expense (Benefit)                          241        (276)
Net Income                                            227          40
Earnings Per Share Basic                             0.07        0.01
Earnings Per Share Diluted                           0.06        0.01




                                               Year Ended  Year Ended
                                                Dec. 31,    Dec. 31,
                                                  2003        2002
Amounts in $000's except per share data        (Unaudited) (Unaudited)
----------------------------------------------------------------------


Net Sales                                       $  34,975   $  30,884
Gross Profit                                       13,133      10,433
Selling, General, and Administrative Expenses      10,646       9,877
Other (Income) Expense                                144         459
Pre-Tax Income                                      2,342          97
Income Tax Expense (Benefit)                        1,120        (562)
Net Income                                          1,222         659
Earnings Per Share Basic                             0.37        0.19
Earnings Per Share Diluted                           0.34        0.19



                        ACME UNITED CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEET
                         YEAR END REPORT 2003
                              (Unaudited)



Amounts in $000's
-----------------

                                                   Dec. 31,  Dec. 31,
Assets                                               2003      2002
------                                            --------------------

Current Assets:
  Cash                                             $ 1,391    $   598
  Accounts Receivable, Net                           7,075      6,410
  Inventories                                        8,179      6,675
  Prepaid and Other current Assets                     546      1,249
                                                   -------------------
Total Current Assets                                17,191     14,932

  Property and Equipment, Net                        2,385      2,281
  Other Assets                                         447        401
                                                   -------------------
Total Assets                                       $20,023    $17,614
                                                   ===================

Liabilities and Stockholders' Equity
Current Liabilities
  Notes Payable                                    $   141    $   362
  Accounts Payable                                   1,743      1,296
  Other Current Liabilities                          2,495      2,027
  Current Portion of Long Term Debt                  2,035      2,731
                                                   -------------------
Total Current Liabilities                            6,414      6,416
Long-Term debt                                       2,752      2,033
Other Non Current Liabilities                          678        685
                                                   -------------------
                                                     9,844      9,134
Total Stockholders' Equity                          10,179      8,480
                                                   -------------------
Total Liabilities and Stockholders' Equity         $20,023    $17,614
                                                   ===================

    CONTACT: Acme United Corp., Fairfield
             Paul G. Driscoll, 203-332-7330
             Fax: 203-576-1547

    SOURCE: Acme United Corp.