FAIRFIELD, Conn.--(BUSINESS WIRE)--April 21, 2005--Acme United Corporation (AMEX:ACU) today announced net income of $650,000 or $.17 per diluted share for the first quarter ended March 31, 2005 compared to $392,000 or $.11 per diluted share for the comparable period last year.

Net sales for the quarter ended March 31, 2005 were $10.6 million compared to $8.6 million in 2004, an increase of 24% (21% at constant currency). Net sales in the U.S. increased 25% due to the launch of new products, market share gains and the Clauss business acquired on June 1, 2004. International sales increased by 16%, and 10% in local currency.

Gross margins were 45.9% in 2005 versus 43.4% in 2004. The improvement is primarily due to new products and product rationalization efforts in Europe.

Walter C. Johnsen, President and CEO said, "I am pleased with our performance this quarter. Our new products have been well received, and business continues to be strong."

The Company's debt less cash on March 31, 2005 was $1.0 million compared to $3.6 million on March 31, 2004. During the first quarter of 2005, the Company repurchased 60,000 shares at a cost of $954,000. At the end of the first quarter 2005, this left approximately 8,000 shares remaining from the program announced in July of 2003. On March 30, 2005, the Board of Directors approved a new stock repurchase program of 150,000 common shares. The Company also paid dividends of 2 cents per share in the first quarter of 2005 amounting to $74,000.

ACME UNITED CORPORATION is a specialized supplier of cutting devices, measuring instruments, and safety products for school, home, office and industrial 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 2005

                                                Quarter     Quarter
                                                Ended       Ended
                                                March 31,   March 31,
                                                2005        2004
Amounts in $000's except per share data        (Unaudited) (Unaudited)
----------------------------------------------------------------------


Net Sales                                          $10,583    $ 8,567
Gross Profit                                         4,861      3,719
Selling, General, and Administrative Expenses        3,719      2,969
Other (Income) Expense                                  62         40
Pre-Tax Income (loss)                                1,080        710
Income Tax Expense                                     430        318
Net Income                                             650        392
Earnings Per Share Basic                              0.19       0.12
Earnings Per Share Diluted                            0.17       0.11




                       ACME UNITED CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEET
                      FIRST QUARTER REPORT 2005
                             (Unaudited)

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

Assets                                             March 31, March 31,
------                                               2005      2004
                                                  --------------------

Current Assets:
 Cash                                             $  1,006  $     709
 Accounts Receivable, Net                            8,013      6,687
 Inventories                                         9,207      8,336
 Prepaid and Other current Assets                      843        873
                                                  --------------------
Total Current Assets                                19,069     16,605

 Property and Equipment, Net                         2,068      2,361
 Other Assets                                          769        456
                                                  --------------------
Total Assets                                      $ 21,906  $  19,422
                                                  ====================

Liabilities and Stockholders' Equity
Current Liabilities
 Accounts Payable                                 $  2,150  $   1,721
 Other Current Liabilities                           2,995      1,870
 Current Portion of Long Term Debt                   1,991      1,745
                                                  --------------------
Total Current Liabilities                            7,136      5,336
Long-Term debt                                          58      2,542
Other Non Current Liabilities                          550        759
                                                  --------------------
                                                     7,744      8,637
Total Stockholders' Equity                          14,162     10,785
                                                  --------------------
Total Liabilities and Stockholders' Equity        $ 21,906  $  19,422
                                                  ====================

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

    SOURCE: Acme United Corporation