Kimberly-Clark Increases Ownership in Brazilian and Peruvian Affiliates

DALLAS, August 7, 2003 - Kimberly-Clark Corporation (NYSE: KMB) today announced it has increased its ownership in two key affiliates in Latin America, Klabin Kimberly S.A. in Brazil and Kimberly-Clark Peru S.A. In both transactions, Kimberly-Clark's partners exercised their rights to tender their shares to the company under terms of the joint venture agreements.

The purchases, totaling approximately US$200 million, were paid in cash. The transactions are expected to be slightly accretive to earnings in the second half of 2003. Other terms of the transactions were not disclosed.

With these transactions, Kimberly-Clark now owns 100 percent of Klabin Kimberly S.A., Brazil's leading tissue manufacturer, and approximately 88 percent of Kimberly-Clark Peru S.A., that country's leader in personal care and consumer tissue products.

"Our increased ownership of these affiliates enhances K-C's presence in two important markets and gives us greater flexibility to implement our cost savings and productivity initiatives," said Thomas J. Falk, chairman and chief executive officer of Kimberly-Clark. "Brazil remains the largest business opportunity in Latin America. Near term forecasts are for a more stable economic environment, with the consumer tissue market expected to grow 4 to 5 percent per year.

"Peru has one of the stronger economies in the region, with GDP growth of 3 to 5 percent and low single-digit inflation. Consumer markets in both countries have low penetration and ample room to grow."

About Klabin Kimberly S.A. and Kimberly-Clark Peru S.A.

Klabin Kimberly S.A. makes bath and facial tissue, towels and napkins for both retail and institutional markets. Brands include Neve, Nice, Chifon, Kimberly-Clark and Lalekla. Klabin Kimberly S.A. holds the No. 1 position in consumer tissue with an approximately 30 percent share of Brazil's estimated US$1 billion retail market. It also is one of the leading marketers in the institutional sector. Klabin Kimberly S.A. has four manufacturing facilities and employs nearly 1,650 people.

Kimberly-Clark Peru S.A. is the market leader in consumer tissue, diapers and feminine care, with shares exceeding 50 percent in each of these categories. Brands include Suave, Mimi and Amiga. The company has two manufacturing facilities and employs approximately 600 people.

About Kimberly-Clark Corporation

Kimberly-Clark and its well-known brands are an indispensable part of life for people in more than 150 countries. Every day, one in four people around the world trust K-C's brands to enhance their health, hygiene and well-being -- brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend. For the second consecutive year, Kimberly-Clark has been named to Fortune magazine's list of "100 Best Companies to Work For In America." With nearly 64,000 employees worldwide, the company has received similar recognition in Argentina, Australia, Czech Republic, Korea, Thailand and the U.K. To keep up with the latest K-C news and to learn more about the company's 131-year history of innovation, visit www.kimberly-clark.com.

Certain matters contained in this news release concerning the business outlook, including new product introductions, cost savings and acquisitions, anticipated financial and operating results, strategies, contingencies and transactions of the company constitute forward-looking statements and are based upon management's expectations and beliefs concerning future events impacting the company. There can be no assurance that these future events will occur as anticipated or that the company's results will be as estimated. For a description of certain factors that could cause the company's future results to differ materially from those expressed in any such forward-looking statements, see the section of Part I, Item 1 of the company's Annual Report on Form 10-K for the year ended December 31, 2002 entitled "Factors That May Affect Future Results."