FAIRFIELD, Conn.--(BUSINESS WIRE)--April 22, 2004--Acme United Corporation (ASE:ACU) today announced $392,000 or $.11 per diluted share for the first quarter ended March 31, 2004 compared to $78,000 or $.02 per share for the comparable period last year.

Net sales for the quarter ended March 31, 2004 were $8.6 million compared to $7.2 million in 2003, an increase of 19% (15% at constant currency). Net sales in the U.S. increased 16% due to the launch of new products and market share gains. International sales increased by 30%, and 11% in local currency.

Gross margins were 43.4% in 2004 versus 40.1% in 2003. The improvement is primarily due to new products and productivity gains.

Income before income taxes was $710,000 in the first quarter of 2004 compared with $352,000 in the first quarter of 2003, an increase of $358,000. Pre-tax income increased by $120,000 for North America. The European operations lost $140,000 in the first quarter of 2004 compared to $378,000 in 2003, an improvement of $238,000. The results in 2003 included a one-time expense of $175,000 for settlement of a lawsuit. The profitability in Europe is improving due to higher sales and reduced expenses.

Walter C. Johnsen, President and CEO said, "I am pleased that every division of the Company reported increased sales in real terms. Acme has begun direct shipments from its Hong Kong subsidiary, and is adding new service levels to support the growing customer base. We expect the losses in Europe to continue to narrow."

The Company's debt less cash on March 31, 2004 was $3.6 million compared to $4.7 million on March 31, 2003.

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
                       FIRST QUARTER REPORT 2004

                                              Quarter       Quarter
                                               Ended         Ended
                                              March 31,    March 31,
                                                2004         2003
Amounts in $000's except per share data      (Unaudited)  (Unaudited)
----------------------------------------------------------------------

Net Sales                                     $ 8,567        $7,189
Gross Profit                                    3,719         2,882
Selling, General, and
 Administrative Expenses                        2,969         2,301
Other (Income) Expense                             40           229
Pre-Tax Income (loss)                             710           352
Income Tax Expense                                318           274
Net Income                                        392            78
Earnings Per Share Basic                         0.12          0.02
Earnings Per Share Diluted                       0.11          0.02


                        ACME UNITED CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEET
                       FIRST QUARTER REPORT 2004
                              (Unaudited)

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

Assets                                         March 31,    March 31,
------                                           2004         2003
                                              ------------------------
Current Assets:
  Cash                                        $      892   $      789
  Accounts Receivable, Net                         6,687        6,059
  Inventories                                      8,336        7,212
  Prepaid and Other current Assets                   873        1,030
                                              ------------------------
Total Current Assets                              16,788       15,090

  Property and Equipment, Net                      2,361        2,269
  Other Assets                                       456          401
                                              ------------------------
Total Assets                                  $   19,605  $    17,760
                                              ========================

Liabilities and Stockholders' Equity
Current Liabilities
  Notes Payable                               $      183   $        0
  Accounts Payable                                 1,721        1,206
  Other Current Liabilities                        1,870        1,587
  Current Portion of Long Term Debt                1,745        3,397
                                              ------------------------
Total Current Liabilities                          5,519        6,190
Long-Term debt                                     2,542        2,061
Other Non Current Liabilities                        759          732
                                              ------------------------
                                                   8,820        8,983
Total Stockholders' Equity                        10,785        8,777
                                              ------------------------
Total Liabilities and Stockholders' Equity    $   19,605   $   17,760
                                              ========================

    CONTACT: Acme United Corporation
             Paul G. Driscoll, 203-332-7330

    SOURCE: Acme United Corporation