• Sales Increase 9% on Strong Growth Across All Three Brand Groups
• EPS Rises at Double-Digit Rate on Share Gains and Lower Cost Structures
• Company Raises Targets for 2010 Earnings and Free Cash Flow

Deerfield, Illinois, July 30, 2010 - Fortune Brands, Inc. [NYSE: FO], the company behind leading consumer brands including Jim Beam, Titleist and Moen, today reported results for the second quarter of 2010. Net sales increased 9% on double-digit sales growth for home and security products and strong gains for the company's spirits and golf brands. Operating income once again grew faster than sales, reflecting the benefit of share gains and lower cost structures. Diluted earnings per share were $1.48 and included gains related to the favorable resolution of routine income tax audits. Diluted EPS before charges/gains was $0.98, up 40% from the year-ago quarter. The company also announced that it increased its target for 2010 diluted EPS before charges/gains to be in the range of $2.60-2.90, up from $2.50-2.80.

"Fortune Brands delivered strong second-quarter sales growth and double-digit growth in earnings, and we're on track for strong full-year results," said Bruce Carbonari, chairman and chief executive officer of Fortune Brands. "In the quarter, we achieved broad-based share gains and leveraged our lower cost structures, while also benefiting from pull-forward of sales by customers in our home and spirits segments as well as favorable comparisons. Each of our three brand groups grew sales faster than our markets, delivered operating margins at or near the top of our consumer segments, and outperformed our expectations in the quarter.

"Fortune Brands has executed well in delivering compelling new products, global expansion initiatives and successful brand investment programs. Our consistently high quality and strong customer service are also helping us expand key customer relationships. In spirits, we grew both net sales and case volumes at a mid-single-digit rate in the quarter as brands such as Maker's Mark bourbon, Courvoisier cognac, Hornitos tequila, Cruzan rum and Red Stag by Jim Beam helped fuel growth. Our home and security brands grew sales 13%, benefiting from share gains fueled by new products, new offerings across price points and expanded relationships with key customers. Strong growth in international markets and double-digit sales gains for the Titleist Pro V1 golf ball and FootJoy shoes helped drive our performance in golf," said Carbonari.

For the second quarter of 2010:

• Net income was $227.4 million, or $1.48 per diluted share, compared to $0.66 in the year-ago quarter.
  
• Comparisons were favorably impacted by gains from the resolution of routine income tax audits ($0.44 per share), a gain on the sale of the Cobra golf brand assets ($0.07) and lower year-over-year charges.
  
• Excluding charges and gains in both the current and prior-year periods, diluted EPS was $0.98, up 40% from $0.70 in the year-ago quarter.
  
• Net sales were $1.90 billion, up 9%.
  
• On a comparable basis - excluding excise taxes, foreign exchange and acquisitions/divestitures - total net sales would have been up 9%.
  
• Comparable net sales by business unit were: spirits up 5%; home & security up 12%; golf up 8%.
  
• Operating income was $273.5 million.
  
• Operating income before charges/gains was $263.7 million, up 29%.
  
• Return on equity before charges/gains was 8%.
  
• Return on invested capital before charges/gains was 6%.

Targeting Full-Year EPS before Charges/Gains in Range of $2.60-2.90

"Consistent with the view we've discussed throughout the year, the pace of economic recovery continues to be gradual and uneven," said Carbonari. "We're pleased with the success of our share-gain initiatives and the momentum we've built with new products, new customer business and strong operating leverage. Our strategies are delivering and we remain confident that Fortune Brands will produce strong earnings growth in 2010. As a result, we plan to continue investing behind our brands, including higher year-over-year support for long-term growth initiatives in the second half of 2010."

The company estimates that pull-forward in home products demand due to expiration of the U.S. homebuyer tax credit, plus the timing of spirits orders, benefited the second quarter at the expense of the third quarter by approximately $0.10-0.15 per share. "In addition to the pull-forward of sales into the second quarter," Carbonari continued, "we anticipate the back half of the year will be impacted by certain headwinds we've previously discussed, including higher costs for raw materials and transportation, the stronger U.S. dollar, annualizing cost savings and increasingly challenging comparisons to last year's improving results.

"However, even with these headwinds, we continue to believe that the markets for each of our three brand groups will grow at a low-single-digit rate for the year. Factoring in our strong year-to-date results, as well as the challenging dynamics we anticipate in the second half, we are raising our full-year earnings target. We're now targeting that Fortune Brands will deliver diluted EPS before charges/gains in the range of $2.60 to $2.90 for 2010. We're aiming to outperform our markets and believe that Fortune Brands is well positioned as we benefit from our strategic investments, share gains, lower cost structures and enhanced productivity," Carbonari concluded.

The company's previous full-year earnings target was for diluted EPS before charge/gains to be in the range of $2.50-2.80. Fortune Brands reported EPS before charges/gains of $2.43 in 2009.

The company also announced that it has raised its free cash flow target. The company is now targeting to generate free cash flow for 2010 in the range of $525-600 million. The target includes the company's anticipated higher earnings and improved cash flow management, and the increase reflects the benefit of asset sales.

About Fortune Brands

Fortune Brands, Inc. is a leading consumer brands company. Its operating companies have premier brands and leading market positions in distilled spirits, home and security, and golf products. Beam Global Spirits & Wine, Inc. is the company's premium spirits business. Major spirits brands include Jim Beam and Maker's Mark bourbon, Sauza tequila, Canadian Club whisky, Courvoisier cognac, Cruzan rum, Teacher's and Laphroaig Scotch, EFFEN vodka and DeKuyper cordials. The brands of Fortune Brands Home & Security LLC include Moen faucets, Aristokraft, Omega, Diamond and Kitchen Craft cabinetry, Therma-Tru door systems, Simonton windows, Master Lock security products and Waterloo storage and organization products. Acushnet Company's golf brands include Titleist and FootJoy. Fortune Brands, headquartered in Deerfield, Illinois, is traded on the New York Stock Exchange under the ticker symbol FO and is included in the S&P 500 Index and the MSCI World Index.

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Forward-Looking Statements

This press release contains statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these forward-looking statements speak only as of the date hereof, and the company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date of this release. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: general economic conditions, including the U.S. housing and remodeling market; the impact of changes in U.S. government stimulus programs; competitive market pressures (including pricing pressures); customer defaults and related bad debt expense; consolidation of trade customers; successful development of new products and processes; ability to secure and maintain rights to intellectual property; risks pertaining to strategic acquisitions and joint ventures, including the potential financial effects and performance of such acquisitions or joint ventures, and integration of acquisitions and the related confirmation or remediation of internal controls over financial reporting; ability to attract and retain qualified personnel; weather; risks associated with doing business outside the United States, including currency exchange rate risks; commodity and energy price volatility; costs of certain employee and retiree benefits and returns on pension assets; dependence on performance of distributors and other marketing arrangements; the impact of excise tax increases on distilled spirits; the status of the U.S. rum excise tax cover-over program; changes in golf equipment regulatory standards and other regulatory developments; potential liabilities, costs and uncertainties of litigation; impairment in the carrying value of goodwill or other acquired intangibles; historical consolidated financial statements that may not be indicative of future conditions and results; interest rate fluctuations; volatility of financial and credit markets, which could affect access to capital for the company, its customers and consumers; any possible downgrades of the company's credit ratings; as well as other risks and uncertainties described from time to time in the company's Securities and Exchange Commission filings.

Use of Non-GAAP Financial Information

This press release includes measures not derived in accordance with generally accepted accounting principles ("GAAP"), such as diluted earnings per share before charges/gains, operating income before charges/gains, comparable net sales, return on equity before charges/gains, return on invested capital before charges/gains, and free cash flow. These measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP, and may also be inconsistent with similar measures presented by other companies. Reconciliation of these measures to the most closely comparable GAAP measures, and reasons for the company's use of these measures, are presented in the attached pages.

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(847) 484-4410