U.S. CONSUMER PRODUCT SAFETY COMMISSION
WASHINGTON. DC 20207

CPSC Document #6001
                                     
              Report and Proceedings: Safety Sells Conference

                             Washington, D.C. 
                          Tuesday, March 28, 1995


                             Sponsored by the
                  U.S. Consumer Product Safety Commission
                                     
 
                                 Foreword
 
 
     On March 28, 1995, the U.S. Consumer Product Safety
 Commission (CPSC) sponsored a conference on the theme of
 "Safety Sells."  Approximately 175 people, representing a broad
 spectrum of consumer product businesses and industries, took
 part in the one-day event in Washington, D.C.
 
     Chairman Ann Brown, in welcoming the conferees, pointed
 out that the conference marked the very first time that CPSC
 had brought together industry senior executives to talk about
 business profitability and safety as mutual objectives.
 
     The Safety Sells program featured presentations by top
 executives of eight consumer product companies -- Hasbro,
 Binney & Smith, Toys "R" Us, Procter & Gamble, Volvo, Evenflo,
 Rollerblade and Whirlpool.  Each was asked to present a case
 study of a safe product or approach to safety in his company
 and to discuss how the company had benefited and profited from
 it.
 
     The speakers' remarks, which are reprinted in this
 publication, emphasized each company's commitment to safety, as
 well as the competitive advantages of its safety innovations. 
 The presentations demonstrated an extraordinary range of new
 and creative approaches taken by these companies to make and
 sell safer products.
 
     CPSC Chairman Ann Brown underscored the Commission's
 interest in maintaining the creative partnership reflected by
 the Safety Sells Conference. She urged industry to continue the
 dialogue with government on the best ways to achieve the goal
 of making products that are both safe and profitable.  
 
  
                            Table of Contents
 
SPEAKER                                                      PART
 
Ann Brown
Chairman
U.S. Consumer Product Safety Commission........................ 1
 
Case Study Presentations
 
Alan Hassenfeld
President and Chief Executive Officer
Hasbro, Inc.................................................... 2


Richard S. Gurin
President and Chief Executive Officer
Binney & Smith, Inc............................................ 3

  
Michael Goldstein 
Vice Chairman and Chief Executive Officer
Toys "R" Us ................................................... 4

 
Gordon F. Brunner
Senior Vice President
The Procter & Gamble Company .................................. 5

                              
Albert R. Dowden
President and Chief Executive Officer 
Volvo North America Corporation ............................... 6

 
George A. Harris
President
Evenflo Juvenile Furniture Company ............................ 7

                                             
John Hetterick
President and Chief Executive Officer
Rollerblade, Inc. ............................................. 8

                                     
J. C. Anderson
Corporate Vice President
Whirlpool Corporation ......................................... 9

 PART 1
                                ANN BROWN
 
                                 Chairman
              U.S. Consumer Product Safety Commission (CPSC)
                                     
 Opening Remarks
 
     Welcome to the Consumer Product Safety Commission's Safety
 Sells Conference.  This is a momentous occasion.  This
 conference marks the very first time that CPSC has brought
 together industry chief executive officers and other senior
 executives to talk about business profitability and safety as
 common goals.
 
     We are here today because we recognize your legitimate
 need to be profitable.  And as chairman, I want you to know
 that we understand and applaud that need.
 
     The business of CPSC is saving lives and preventing
 injuries.  I know that you understand and applaud our efforts. 
 Today, in a first for the agency, we will combine our efforts
 with industry so that we can both succeed.
 
     In the past, government stood over industry and told it to
 incorporate safety into its products because it was "the right
 thing to do."  Today, as an agency of the '90s, we want to work
 with you to help you find a way to market safety in order to
 increase your company's profits.  It makes perfect sense that
 the best incentive for you to make products safe is to make
 them profitable.  It's just common sense that the most
 appropriate agency to promote this idea is CPSC, the one
 charged with saving lives and reducing injuries.
 
     While common sense may be a new concept for government,
 it's surely not new for CPSC.  CPSC has operated using common
 sense since I arrived as chairman one year ago this month. 
 Common sense means working voluntarily with industry towards
 market-driven solutions.  We will continue to do so, especially
 when it results in such important developments as this new
 trend of safety as a profit center.   
 
     Today, we've assembled an incredible slate of innovative
 companies who foresaw that marketing safety was a smart
 business decision.  You will hear how your industry colleagues
 have put their exciting ideas into action.  You will hear how
 Rollerblade's safety program creates awareness about safety and
 simultaneously creates a market for safety gear.  You will hear
 how packaging of Procter & Gamble's product Aleve helped the
 company crack a very competitive painkiller market. 
 
 
     I know you will find these presentations enlightening and
 challenging.  I hope you will come away with your own creative
 ideas on how to market safety and make money.
 
     I look forward to hearing your comments and your ideas
 about safety sells during the day.
 
 Midday Remarks 
 
     I hope you enjoyed this morning's presentations as much as
 I have.  These companies, like all companies, are in business
 to make a profit.  But what is so innovative about these
 companies is their bold and creative use of safety as a
 marketing strategy.  Today, business must be creative to
 succeed in a competitive, global economy.
 
     CPSC also must be creative to find ways to save lives in a
 time of streamlined, reinvented government.  In the past,
 industry and government each have gotten a bum rap.  People saw
 business as rigid and stodgy.  People saw government as
 antiquated and excessively bureaucratic.  Well, it's not true
 of the companies here today and it's not true of this agency.
 
     In fact, this agency is a model for reinventing
 government.  It is 
 
      *  an agency based on common sense, dedicated to its
 mission of saving kids' lives and making families safer;
 
      *  an agency that already practices risk assessment,
 provides cost-benefit analysis and does peer reviews; and
 
      *  an agency that succeeds in its mission on the same
 budget it had in 1979 -- that means the same dollar amount,
 with no increase for inflation and about half the staff it had
 in 1980.
     
     I don't believe there is another federal agency that does
 its job as well with so little.  We are an agency that is truly
 reinventing government, that fulfills its mission through
 cooperation far more than regulation.
 
     When I came to this agency, I knew that we had to reinvent
 ourselves -- not just to survive, but to succeed.  And I knew
 that we had to involve not just consumers, but business as
 well.  Unless you take us seriously, and are willing to work
 with us, we cannot do our job.  So, we're here today to harness
 a new energy to work together in a creative partnership.
 
     Just as industry uses creativity to increase profits, CPSC
 uses creativity to find solutions to product problems.  Most of
 the time, these creative solutions are faster and cheaper than
 the labor-intensive, mandatory alternatives.  And, as I have
 stated many times before, I always prefer voluntary solutions
 that solve the problems of product hazards.
 
     CPSC is a scientific and technical agency that has
 numerous tools to give and collect data on deaths and injuries. 
 We receive data from physicians, coroners, fire departments,
 our Hotline, and from our NEISS hospital emergency room
 reporting system.       
 
     Since I began as chairman, CPSC has added more hospitals
 to NEISS and is linking it to additional sources of data,
 making a good system even better.  And we have used this system
 creatively to anticipate injuries and to share this information
 with industry.  Last June, we used our NEISS data to project a
 dramatic increase in injuries from in-line skating -- from
 37,000 hospital emergency room-treated injuries in 1993 to
 about 80,000 in 1994.  Then we came out with a warning urging
 consumers to use all of the necessary protective padding and
 helmets when they skate.
 
     Rollerblade may have even benefitted from our warning,
 since they had a campaign already in place to market safety
 gear.  This is an example of how CPSC can strengthen creative
 partnerships with industry by helping it profit from marketing
 safety.
 
     In the past, when you would receive a call from CPSC, you
 immediately assumed there was trouble.  Now we may call you for
 many reasons. We may call to give you information.  We may call
 if we have an idea for you.  Or, we may call to invite you to
 come to CPSC to meet with our technical experts and other
 interested parties to find a voluntary solution to a product
 problem.
 
     Here's how one call to industry has helped to address a
 particular product hazard.  Twenty-one children were killed and
 hundreds injured when movable soccer goals weighing over 600
 pounds tipped over and crushed them.  These children were
 playing in parks and fields where soccer goals were not
 permanently anchored.  CPSC brought together sporting-goods
 manufacturers, soccer coaches, school officials, and soccer
 enthusiasts to address this hazard.  Together, we developed
 guidelines for local jurisdictions to prevent the deaths and
 injuries of other children from movable soccer goals.  These
 are creative solutions, not mandatory ones.
 
     CPSC utilizes technologies that could be of use to you.  
 For example, we are on the Internet.  We have expanded our
 Hotline to get and give information directly to consumers. 
 These resources and our safety expertise are available to help
 you build safer products so that you can then market your
 products for safety.
 
     This afternoon, you will see several more presentations by
 creative companies that have made safety profitable.  Our first
 presenter, Volvo, changed the auto industry standard for
 marketing safety.  At CPSC, we believe that this is more than
 an emerging trend.   
 
     We believe that marketing safety is here to stay.  We are
 here to help you make that happen. 
  
 Closing Remarks
 
     This has been an incredible event that far exceeded my
 expectations.  I want to thank all of you for making this a
 tremendous success.  I also want to thank and recognize the
 conference participants:
 
               Alan Hassenfeld of Hasbro
               Richard Gurin of Binney & Smith 
               Michael Goldstein of Toys "R" Us
               Gordon Brunner of Procter & Gamble
               Albert Dowden of Volvo
               George Harris of Evenflo
               John Hetterick of Rollerblade
               J.C. Anderson of Whirlpool
 
     Their presentations exemplify that safety is not just good
 for CPSC and the American people but for business as well. 
 When we envisioned the idea for this Safety Sells Conference,
 we established several goals.  We wanted to make the point that
 safety sells, and we certainly have.  But we wanted that point
 to be made by your industry colleagues, those who are the most
 qualified to speak about what sells.
 
     We also wanted to continue, and in some cases establish, a
 face-to-face dialogue with you so we could talk about merging
 our missions.  For so long, it seemed that government and
 industry might have been at cross purposes.  But in fact, as
 we've seen today, our goals are actually in sync.  In the past,
 you may have come to Washington only to hear some esoteric,
 think-tank analyses of business.  Instead, today you've heard
 real-life examples of business successes.  We're delighted that
 you heard it here first.  We hope you will implement the idea
 that safety can be a profitable marketing strategy in your own
 companies.  
 
     So please, call us, talk to us, keep the dialogue going. 
 Let us know how we can help you sell safety.  In the meantime,
 we at CPSC issue this friendly challenge:  be even more
 profitable by making even safer products.
 
     Be the first in your industry to market safety and watch
 the others follow.  And when these products sell, we'll invite
 you to be a headliner at our next Safety Sells Conference.
 
     Thank you for coming.
 
 
                                ##########
 
 Ann Brown became Chairman of the U.S. Consumer Product Safety
 Commission on March 10, 1994.  She was nominated by President
 Clinton and confirmed by the U.S. Senate as a Commissioner and
 the seventh Chairman of CPSC. 

 Part 2                               
                             ALAN HASSENFELD
                                        
                   Chairman and Chief Executive Officer
                               Hasbro, Inc.
 
     When Hasbro decided to become a major player in the
 juvenile furniture area, it designed a high chair based on what
 mothers said they wanted:  a safe chair that wouldn't let
 children slide out and one that could be used by infants as
 well as older toddlers.  In less than a year, Playskool's 
 1-2-3 High Chair was the best-selling one on the market.
 
     Thank you for inviting me to come here to talk about how
  safety sells.   Being chairman of one of the world s largest
 consumer products companies for children, you can bet that our
 top priority has always been and will continue to be to sell
 fun, affordable and, most importantly, safe products for
 children the world over.  
 
     Hasbro s philosophy of making great products didn t start
 with me.  Back in 1923, when three Hassenfeld brothers started
 a business, they followed a simple philosophy:  sell a good,
 safe product that people want, and your business will grow. 
 And grow it has.  That simple family philosophy that my
 grandfather and his brothers began was passed along first to my
 dad, Merrill, then to my brother, Stephen, and to me.  I now
 carry that torch.
 
     It may have been the Gallo brothers who said they will
 sell no wine before it s time, but I can assure you, it is the
 Hassenfeld brothers who will sell no product before it passes
 our very rigorous safety standards.
 
     We have state-of-the-art testing facilities where we
 constantly evaluate all aspects of a product.  The safety crew
 and our talented and creative team of designers and engineers
 know what they have to do before they can put the Hasbro name
 on a product.  
 
     Sometimes, however, even the most tested products can
 develop a problem.  Let me talk about one recent example.  We
 began selling our Colorblaster 3-D in August of 1994.  It went
 through extensive testing before it was sold, but we started to
 hear about a potential problem when the cap, if overpumped,
 could fly off and strike a child.
 
     We immediately alerted the CPSC and began a voluntary
 recall.  Fortunately, there were only a small number in
 distribution.  Even so, we took our efforts one step further
 and produced a video news release that we transmitted by
 satellite to  television stations around the country.  Our
 results were phenomenal.  In just one day, we reached almost 23
 million viewers when 153 stations in 101 markets carried our
 message.  
 
     This is just one way we are trying to be responsive to the
 people who put their trust in us when they buy one of our
 products.  The most important thing if you have a problem is to
 nip it in the bud, so that it stays a small problem.  Don t be
 indecisive -- move on it right away.  By the way, when we have
 done recalls in the past, the response rate to our 800 number
 averaged about 300-500 calls.  For the Colorblaster 3-D, our
 video news release generated some 6,100 calls -- a very
 impressive number.
 
     Here s a question for all of you.  How many of you have
 children?  I m sure each of you who does has a story or two
 about how your child found a creative way to turn the safest
 toy into a potentially dangerous one by the way they used it. 
  No, Johnny, that Tinkertoy is not something to whack your
 brother with.   In that regard, we as parents have to take some
 responsibility for how our children play with their toys.  We
 need to be there at the beginning to explain what s right and
 what s not.
 
     Another way to be responsive to your consumer is through
 consumer education.  At Playskool, we do it two ways.  One is
 through our packaging.  All of our products feature our
 innovative ages and stages icons.  It takes the guesswork out
 of choosing toys by organizing them into four stages of
 development:  newborn, infant, toddler and pre-school.     
 
     The other way is by including a letter from Playskool s
 president in many of our Playskool products bought by Mom and
 Dad for their children.  The letter talks about the proper uses
 of the product they have just purchased.  It also includes an
 important safety tip unrelated to that product that we hope is
 helpful to parents.  For example, in our spin-around train
 product, we alert parents to the dangers of window screens and
 advise them to keep furniture away from windows, because the
 screens are not designed to keep children from accidentally
 falling out.
 
     The issue of consumer education is a critical one.  Where
 possible, we should all try to go above and beyond, because it
 not only helps you, by showing your consumers that you care,
 but also because it is the responsible and right thing to do. 
 That is why we also mold our 800 number into all of our
 Playskool products: to let parents know we are there if they
 need us.
 
     But enough of an overview.  Chairman Ann Brown has asked
 me to talk to you about one specific example of a product that
 has safety as a key component,  where  safety really does
 sell.   
 
     I can think of none better than our award-winning 1-2-3
 High Chair; award-winning because of the design and the safety
 elements that are built into it.  We were fortunate enough last
 August to receive the Chairman's commendation for significant
 contributions to product safety from Ann.  We designed and
 built a high chair with a restraint system that helps protect
 our youngest citizens from tragic consequences.   
 
     But let s step back for a second and look at the history
 of high chairs.  The first high chair was made in the 16th
 century in Europe but didn t become common in the U.S. until
 the mid-19th century.  Today some 1.5 million are sold each and
 every year.  We roughly estimate that some 10 million high
 chairs are in use every day in the U.S. alone.
 
     To look at them, you wouldn t think that some high chairs
 have the potential to be dangerous.  But according to the CPSC,
 since 1988, 20 children have died while being in high chairs. 
 Children have slid down the seat and strangled, either on the
 tray or on the waist strap. 
 
     We made the decision to become a major player in the
 juvenile furniture area as result of many internal meetings in
 1992.  At the time, we were not really involved in the
 business.   We did license our name out in a small number of
 categories within juvenile furniture, but quite honestly, the
 result had been a disappointment in terms of both sales and the
 type of product that we were putting our name on.
 
     We decided then that the best approach would be to put
 together a design team that would develop exciting new features
 and meet our lofty goal of designing a line of innovative, high
 quality, durable and, of course, as always, safe products for
 the juvenile furniture market, products we would be proud to
 put the Playskool name on.
 
     Once the team was put together, we began researching the
 various juvenile product categories, because we wanted to enter
 the business in a big way with just the right product.  With
 our success in newborn, infant and toddler feeding products, we
 decided to tackle an area where we already had expertise, and
 so we chose high chairs.
 
     However, we have never been a me-too company.  If we were
 going to enter the market, we had to have a point of
 difference.  Who better to help us identify that point of
 difference than mothers of infants and toddlers?  We brought in
 all the top- selling high chairs to a research session and
 listened intently as the mothers took us through their likes
 and dislikes.
 
     Two interesting facts came to the surface.  One was that
 while high chairs have been equipped with the three-point
 safety belt restraint, parents often admitted to not buckling
 up their children.  Many of them referred to their rather
 active children as  sliders."  These were often kids who were
 too difficult to buckle in, or their parents admitted to just
 not having time to buckle them in.  These kids would find new
 and clever ways to slide down their seats, sometimes even out
 of their seats, and, as we discovered from the 20 deaths,
 sometimes with tragic consequences.
 
     The second thing we picked up on was that high chairs
 could only be used by parents once the child was able to sit
 up, somewhere in the five- to six-month range.
 
     We talked also to the trade.  They were looking for a high
 chair with an extra point of difference, but also one that
 would cost less.  Surprise, surprise!
 
     After our research team recognized the opportunities
 before us, we explored a variety of design solutions that would
 allow younger infants to be placed in our chairs while more
 securely restraining them.  We looked at a variety of ways to
 design a high chair with an advanced restraint system that
 would not be easily circumvented by parents.  We also wanted to
 develop one that would cover a wider age range than those
 currently on the market.
 
     For how to broaden the age range, we looked at some of our
 own products.  We have become quite proficient in developing
 product that grows right alongside the child.  Our line of 1-2-
 3 products, including our steady step walkers, the 1-2-3 bike
 and our in-line skates, all follow that principle:  build a
 great product that has the ability to grow with the child.  We
 have done it again this year with a product called 1-2-3
 baseball.  
 
     We took our product winning 1-2-3 philosophy and applied
 it to the high chair. I first saw the fruits of our research
 team s labor at a management line review early in 1993.  The
 team showed how they incorporated a reclining seat so that
 newborns could now use the high chair.  They also included a
 height adjustment system with six different possibilities. 
 This would allow for extended use on the upper end of the age
 range.
 
     The team also showed a high chair with a rigid crotch
 restraint that had to be in place in order for the tray to be
 attached.  We felt that even the busiest or most forgetful
 parent would appreciate this feature.  The team recommended,
 however, that the seat belt still be used along with the rigid
 restraint.
 
     We were all blown away at the meeting, because the team
 had come up with not one, but at least two innovative points of
 difference.  We gave them the green light and encouraged them
 to go full speed ahead.
 
     Partnerships played a big role in this product s genesis
 as well.  We realized that we did not have the expertise to
 manufacture this product, so we teamed up with Troxel, a
 company based in Tennessee that had previous experience with
 high chairs.  
 
     We worked with their engineering and production people to
 fine-tune the product.  Each step of the way our internal
 quality assurance people guided the team through to make sure
 we met or exceeded all rules regarding high chairs.  We also
 wanted to make sure that we had JPMA (Juvenile Products
 Manufacturers Association) certification.
 
     Nineteen months from the beginning of this project, in the
 second quarter of 1994, we launched Playskool s 1-2-3 High
 Chair.  We spent three quarters of a million dollars in tooling
 alone to ensure that every part of the product would be made
 with the highest standards.
 
     I should also add that our high chair was not going to be
 cheap.  The cost to include all these new features was fairly
 substantial.  We knew it would be expensive ... but worth it.
 
     We launched the product with a healthy print advertising
 and public relations campaign.  Point-of-purchase pieces were
 developed and attached to each tray  and footrest to convey our
 message.  The response was -- and continues to be --
 phenomenal.  
 
     Clearly we hit a chord with parents.  By the third
 quarter, we had the best selling high chair in dollar volume. 
 By January of this year, we had the best-selling high chair in
 both units sold and dollar volume.  In the case of the 1-2-3
 High Chair, we proved that safety does sell -- and it sells
 very well.
 
     We believe that we may have changed the way high chairs
 will be built in the future.  At this year s juvenile products
 merchandising show, two of our competitors had adapted the
 crotch restraint idea into their products. 
 
     Let me assure you, we are not sitting still.  We are
 already looking at new innovative, fun and safe ways to drive
 our competition batty and bring a new level of safety to the
 global marketplace.
 
     You, too, can do it, and with organizations like the CPSC
 recognizing the work of companies like Hasbro and partnering
 with us, the future of safety is very bright indeed. 
 
     We ve talked a lot about safety today.  Let me show you
 how serious I am.  It is imperative that I safety test each
 product we make.  Take a look at me hard at work with the high
 chair.  (Video shown to audience.)
 
     Seriously, while I couldn't really personally test each
 product, I continually challenge our people to make sure that
 what we do bring to market is something we would all be proud
 to put our name on.  So, too, can you make a difference, and as
 you saw from our 1-2-3 High Chair, a profitable one at that. 
 Thank you.
 
 
                                ##########
 
 Alan Hassenfeld has been Chairman and CEO of Hasbro since 1989. 
 He is a third-generation member of the family that founded the
 company.

 Part 3
                             RICHARD S. GURIN
                                     
                  President and Chief Executive Officer
                           Binney & Smith, Inc.
 
     Although Binney & Smith complied with all safety
 standards, some consumers perceived that the food scents of its
 new Crayola "Magic Scent" crayons would encourage children to
 put the crayons in their mouths.  Mr. Gurin describes how
 Binney & Smith responded to those consumer concerns.
 
     Good morning!
 
     I'm sure some of you are wondering how many issues
 regarding product safety can be challenging the makers of
 Crayola crayons.
 
     Most moms and dads and even we grandparent types remember
 from our own Crayola experiences that our products are non-
 toxic -- even if you eat a few Crayola crayons, there are no
 harmful side effects.  We don't encourage it and they don't
 taste good, but they are harmless if ingested.
 
     So why is Crayola concerned?  Quite simply, our company,
 Binney & Smith, has been a leader in advocating product safety
 in the art materials and stationery product categories for
 nearly 100 years.  We were a founding member of the Crayon,
 Water Color & Craft Institute in 1936.
 
     Today, this industry organization -- known as the Art &
 Creative Materials Institute, or ACMI -- is most recognized for
 its certification program for children s art, fine art and
 creative product materials.
 
     If you reach for a Crayola package today, you will see a
 CP or AP -- certified product or approved product -- seal,
 meaning that the product is safe, has gone through
 toxicological evaluation by medical experts and, according to
 the ACMI Manual of Procedures,  contains no materials in
 sufficient quantities to be toxic or injurious to humans or
 cause any acute or chronic health problems. 
 
     Each package also acknowledges compliance with hazard
 labeling and performance standards mandated by federal law.
 
     These certification seals on product packages are a vital
 tool to reassure consumers about a product's safety.
 
     Crayon safety generated national attention last spring
 when the CPSC requested the recall of private-label crayons
 imported from China because they contained levels of lead found
 by CPSC to be hazardous. Lead is found in some pigments used as
 colorants in crayons. None of the crayon packages carried the
 ACMI safety seals.
 
     CPSC did announce in press statements that Crayola
 crayons were the industry standard, virtually lead-free, 
 following tests of Crayola crayons, which confirmed our own
 test results.  Lead-free may be great for gasoline, but it's
 not exactly a positive coloring benefit even for Crayola 
 products.
 
     At Binney & Smith, we make it easy for consumers to get
 information about our products and share their thoughts on
 product quality, packaging and our new product innovations.  On
 every box, we invite questions and comments to our consumer
 affairs department via the l-800-CRAYOLA telephone line.  Last
 year alone, we listened to more than 100,000 Crayola consumers. 
 Many of the calls were positive!
 
     Based on consumer input, we have also developed
 standardized consumer information panels on all packages for
 our activity kits and art sets. These panels make it easy for
 parents to find pertinent product information, safety data and
 washing instructions, of great importance when working with
 non-washable art products.
 
     Last year, our 800 number proved to be an invaluable
 resource with the launch of a new Crayola crayon product: 
 Crayola Magic Scent crayons.
 
     Faced with the challenge of building consumer excitement
 into a 90-year-old product category, our crayon marketing team
 worked on creative ways to enhance the play value of the crayon
 -- add some glitter, make them glow in the dark, or better yet,
 have them change color.
  
     All of these product concepts tested well with consumers
 and were in the works for launch.  The team, however, decided
 to develop a whole new crayon concept -- one in which crayons
 would emit familiar scents -- a very popular idea with parents
 and kids in focus group research.
 
     The first challenge was developing the technology. 
 Fortunately, we had experience in color-mixing, so scented
 products seemed pretty straight-forward.
 
     Initial smells ranged from chocolate to marshmallow to
 skunk, and even included marigold and dirty sneakers.  As we
 began our field testing with mothers and kids, food scents
 consistently ranked among their favorites.
 
     But we were unhappy with the crayons we made and those
 already in the marketplace, where the crayon smelled like fruit
 for example.  We wanted to develop a technological breakthrough
 that would give this idea a new twist.
 
     Several months later we did.  The technology involved
 micro-encapsulated fragrances that we jointly developed with
 our partner, 3M.  These fragrances do not smell or break open
 until the crayon is used to color on a surface.
 
     In the box, the crayons don't smell any different than
 regular crayons -- the scents are only released on paper
 surfaces and therefore are unlikely to encourage kids to eat
 them any more than any other crayon.
 
     Since industry statistics on ingestion or aspiration from
 art materials, which include crayons, paint and paper, are
 relatively small compared to other children's products, we felt
 confident in giving our marketing team the green light to
 finalize and launch the product.
 
     This was a long process, but we had a real breakthrough in
 terms of kids' safety and more fun coloring.
 
     Shipments of product to selected accounts began in January
 of last year, while we ran controlled panel tests.  We launched
 a national public relations campaign in July, complete with
 television advertising.
 
     By this time, we had seven months of in-market experience
 without a single recorded incident of ingestion from a Magic
 Scent crayon called in to our 800 center.
 
     Despite glowing coverage in the press and on TV, within
 days the New York State Consumer Protection Board was calling
 for the immediate removal of Magic Scent crayons from the
 retail marketplace.
 
     Acknowledging that the crayons were in total compliance
 with all of the safety and regulatory laws, New York officials
 were concerned that food-scented crayons would increase the
 likelihood of a child coloring on paper and then putting the
 good- smelling paper in his mouth -- raising the risk of a
 choking hazard.  Despite the fact that the crayons didn't
 smell, some also thought the likelihood of ingestion or
 aspiration was greater because of the food scents.
 
     In short order, the company learned that others felt the
 same way.  Connecticut's State Consumer Protection Board and
 eventually Chairman Ann Brown at CPSC expressed similar
 concerns about food-scented children's products.
 
     Newspaper headlines cast doubt and fear among some of our
 consumers.  In the three months after the media got into this
 ingestion debate, our 800 center logged 10,000 calls with
 inquiries regarding the safety of the product.
 
     Of course, we assured them that all Crayola crayons remain
 100% non-toxic.  In the marketplace, the scented crayons were
 selling well in all of our major national accounts like  Wal-
 Mart, Toys "R" Us and K-Mart.  Scented crayons were fast
 becoming one of our biggest sellers!
 
     After carefully reviewing the Crayola consumer statements
 called into our 800 center and weighing the opinions of child
 safety advocates, I came to -- what was at the time -- a very
 unpopular decision at Binney & Smith.  I made the decision to
 phase out the food scents and to develop a line of non-food
 fragrances.
 
     In my mind, the reputation of the Crayola brand name and
 our 90-year history of providing safe, quality products was not
 worth jeopardizing in the long-term, even if it was just a
  perception  and the product was in fact as safe as any other
 Crayola crayon.
 
     By mid-September, I advised CPSC of our company's
 decision, explaining that it would take about six months of
 effort by 3M and our technical people to develop a line of new
 non-food scents.
 
     At today's "Safety Sells" conference, I m pleased to share
 publicly for the very first time the line-up of the new Magic
 Scent crayons from Crayola.
 
     Here they are -- first the floral scents:  daffodil,
 eucalyptus, tulip and lilac.  Next, we have the non-floral
 scents:  new car, soap, leather jacket, smoke, cedar chest,
 shampoo, lumber, baby powder and dirt.  There are also three
 non-food staples from the original package:  pine, rose and
 fresh air.
 
     Even at a cost well in excess of a half-million dollars to
 develop and phase the new scents into our production, we feel
 it was a good idea to preserve the reputation of the Crayola
 brand for safety.
 
     Beginning April 1, the new Magic Scent crayons will be
 shipped to customer warehouses and stores all over the country. 
 Binney & Smith will be awaiting consumer feedback to determine
 just how well safety sells.  Color us enthusiastic about the
 prospects.
 
     Thank you.
 
                                ##########
 
 Richard Gurin joined Binney & Smith in 1984 as President and
 Chief Operating Officer and in 1987 was named President and
 Chief Executive Officer.  He serves on the President's
 Committee on the Arts and Humanities as co-chair of the
 subcommittee on Arts, Humanities and Our Youth.  He also is
 Vice Chair of the American Council for the Arts and a
 participant in the Goals 2000 Art Education Action Planning
 process.
                                     
 PART 4
                            MICHAEL GOLDSTEIN
                                     
                Vice Chairman and Chief Executive Officer
                               Toys "R" Us
 
     Toys "R" Us has established several programs to protect
 its customers from unsafe products.  These programs include
 comprehensive safety assurance testing, and educating vendors,
 buyers, employees and consumers.  
 
     Four years ago, Toys "R" Us implemented a comprehensive
 safety assurance testing program.  Our program is unique
 because, as a retail operation, our requirements are vastly
 different from those of a manufacturer, although we share the
 same regulatory responsibilities.  Our strengths lie in
 increasing vendor awareness to new and evolving regulations and
 standards and in keeping potentially hazardous and
 non-compliant products from our shelves and the hands of the
 Toys "R" Us customer.
 
     Toys "R" Us has consistently sought to offer for sale only
 those products that meet rigorous safety standards.  All
 merchandise must conform with current U.S. Consumer Product
 Safety Commission regulations, Food and Drug Administration
 requirements, all U.S. federal, state and local laws, and
 industry voluntary standards.
 
     Testing is required to be performed at least once a year
 on all direct import and private label products.  Additional
 testing is required (every shipment) for items appropriate for
 children under three years old or when there is a change in
 country of origin, factory, design or component materials.
 
     In 1994, more than 7,700 product safety tests were
 performed on merchandise purchased by Toys "R" Us.  Most of
 this testing was completed "off shore" on products made for the
 U.S. but before they were accepted by our overseas
 consolidators for shipment.  No direct import merchandise is
 accepted for shipment unless it is accompanied by a valid Toys
 "R" Us certificate of compliance issued by our testing
 laboratory.  
 
     Testing parameters are specified by Toys "R" Us, not the
 vendor.  In this way, we are sure all items are tested to the
 same regulatory requirements and specifications.  Of the 7,700
 tests performed, 494 products failed to comply with all of the
 applicable regulations and standards.  Over the years, the
 release of small parts during the testing procedures has been
 the most frequent reason for failures.  In 1994, 14 percent of
 the total failures were due to small parts. 
 
     However, these findings were eclipsed by failures to
 comply with various labeling requirements.  Thirty-two percent
 of the year's failures resulted from incorrect or missing
 labeling.  This extraordinarily high failure rate was a direct
 result of the 1993 Connecticut small parts labeling act
 requiring warning statements on toys intended for children ages
 three- to seven-years-old and containing small parts.  Eighteen
 percent of the year's failures were attributable to
 non-compliance with this one state law.
 
     An additional 14 percent of the year's failures were due
 to other labeling issues, including improper manufacturer's
 identification and warnings required on electrical toys and
 toys that would come in contact with food.
 
     Heavy metals and lead content account for another 17
 percent of the failure results. Although not required by law,
 Toys "R" Us has been testing crayons for total lead content for
 several years.  With the Consumer Product Safety Commission's
 increased surveillance on children's art materials, including
 crayons, we have extended this testing to chalk, paints and
 similar art materials.  Other failures resulted from
 unsubstantiated toxicity claims, string/loop length, sharp
 points, polybag thickness, FDA food additives, stuffing
 material contamination, sharp edges and other miscellaneous
 reasons.
 
     While our safety assurance program uncovered 494 products
 with compliance problems, not all of these items were lost to
 us.  Manufacturers are offered the opportunity to correct
 non-complying product by resubmitting new production samples to
 a series of re-tests.  As a result, only 41 products from 31
 suppliers had to be canceled because they could not be brought
 into compliance.  This translates into over $3 million worth of
 product at retail that did not reach our shelves.  As a
 comparison, in the first year of our safety assurance program,
 144 products from 57 suppliers were canceled, with a retail
 value in excess of $10 million.
 
     Prior to establishing our safety assurance program, Toys
 "R" Us relied on its suppliers to perform all safety testing. 
 We believed they, as responsible manufacturers, would perform
 all applicable tests ensuring regulatory compliance and deliver
 only safe product to our stores.  As Toys "R" Us grew in size,
 it was obvious we could no longer rely or depend solely on our
 manufacturers.  
 
     Regulatory issues and pressures coupled with an increased
 awareness of our corporate responsibilities as the world's
 largest toy store, demanded we do more.  We set out to create a
 safety assurance program that addressed our immediate goals. 
 Our immediate goals were simple:
 
     * Select toys that meet our high standards of quality,
 safety and value.
     * Minimize any adverse exposure in the market place.
     * Demonstrate our ability to properly and effectively
 address all regulatory concerns and matters.
 
     Our approach was to find a qualified, approved testing
 laboratory that would understand our goals and could further
 offer the staffing, equipment, logistical and systemic
 expertise our program was going to demand.  Toys "R" Us chose
 ACTS Testing Labs, Inc., as its program partner in 1989.   
 
     We also needed Toys "R" Us staff to create and administer
 the program.  We needed people who knew toys, understood our
 import business and could grasp the technical and regulatory
 subjects.  Since our product development department manages our
 line of private label brands, is heavily involved with imports
 and familiar with Pacific Rim suppliers and has a working
 knowledge of many of the safety factors, they were selected to
 develop and manage the program.  
 
     Phase I of the testing program began with the examination
 of all private label toys, 670 in all, to determine whether
 each product complied with the requirements of the CPSC.  A
 significant criteria applied to the entire testing procedure
 was established at that time, an ingredient that, to this day,
 makes the Toys "R" Us program unique.  Toys "R" Us and ACTS
 Testing Labs, Inc., elected to classify all products into two
 major categories:  toys that pose a high risk of hazard, toys
 that pose a low risk of hazard.
 
     High-risk toys are generally defined as those intended for
 children from birth through 36 months.  These include rattles,
 teethers, crib toys, toddler toys and brightly decorated toys. 
 All high-risk toys are tested prior to every shipment made to
 Toys "R" Us.  Low-risk toys are generally defined as those
 intended for children 37 months and older.  These include
 construction sets, battery-operated toys, school items and
 science toys.  Low-risk toys are tested once every calendar
 year prior to shipment.  
 
     In 1990, the program was expanded to include all direct
 import toys.  Implementation of Phase II began in early 1991. 
 During this 18-month period, customized systems and computer
 programs were created allowing us to constantly monitor the
 flow of product through the testing process and analyze the
 results of every product and vendor test.  Toys "R" Us knows on
 any given day which toys have been received at the lab for
 testing and has immediate access to test results on any
 product.  Additionally, quarterly and annual recaps are done on
 each vendor's performance.  Poorly performing vendors are
 advised of their status and dealt with accordingly.
 
     The Toys "R" Us safety assurance program has increased its
 scope and expanded on its original goals.  Today, our safety
 assurance program reaches beyond the basics of just testing
 products.  We have a corporate safety committee that meets
 quarterly to discuss safety and compliance issues.  The
 committee consists of eight members from various reference
 points within the company.  
 
     A key event each year is the schedule of safety seminars
 arranged for our buyers.  ACTS Testing Lab representatives
 prepare safety-related information based on each buyer's
 categories.  A general overview is also presented for the
 newest members of the buying staff.  The staff is brought up-
 to-date on the latest issues in their categories.  A review is
 done on testing data, CPSC recalls and vendor performance.  
 
     Also, each year we sponsor a vendor seminar during our
 January import buying trip held in Dallas.  Our import
 suppliers learn of any recent developments in the safety area,
 review the provisions and requirements of our program, and
 discuss any other topics relative to toy safety.  This year we
 were fortunate to have Mike Gidding of the CPSC at our vendor
 seminar to outline the provisions of the recently enacted Child
 Safety Protection Act.  
 
     A successful program needs to do more that protect Toys
 "R" Us and its customers from unsafe products.  A successful
 program must be responsive to its customers, keep them informed
 and let them know we are responsible.  Toys "R" Us has
 instituted several programs that convey this message.  
 
     In 1994 our safety assurance department independently
 investigated skateboards, teethers, bath rings, travel cups,
 strollers, window shades, costumes, toy boxes and others as a
 result of direct customer inquires.  An investigation includes
 contacting the supplier for current safety testing information. 
 Where the information is incomplete or inadequate to satisfy
 our inquiry, we have ACTS test samples from our store
 inventory.  Normally, we find the item to be in compliance with
 the regulations.  The consumer is then contacted directly with
 the results of our findings.  
 
     Every Toys "R" Us store has a consumer safety bulletin
 board located in the store lobby where our customers can learn
 of recall notices and other important safety information.  Toys
 "R" Us, in conjunction with the Consumer Product Safety
 Commission, prints a pamphlet of safety facts that is made
 available at every Toys "R" Us and Kids "R" Us outlet.  This
 free publication contains the most current product safety
 alerts issued by the CPSC.  The booklet is now in its second
 edition, with a distribution of approximately 1,000,000 copies. 
 
     In 1994, Toys "R" Us published another consumer-oriented
 booklet called, The Toy Guide for Differently-Abled Kids.  The
 national parent network, the national Lekotek centers and Toys
 "R" Us collaborated to produce this very special toy guide
 containing everyday toys from our regular selection that were
 selected through a very tough focus group exercise.  The focus
 group consisted of children with various types of disabilities. 
 Although each toy met all applicable safety standards and
 regulations, not every toy met the focus group evaluation
 criteria.  
 
     The surviving toys were identified for appropriateness to
 meet the needs of special children with one or more specific
 disabilities.  In-store and targeted direct mail distribution
 is made available free to our customers.  
 
     It is always a challenge to prevent recalled or hazardous
 products from being sold right off our shelves.  We have
 created a fail-safe within our cash register system.  Once a
 product is identified as being hazardous, our inventory control
 department changes the retail price of that product to
 $9,999.00. If, by chance, our store personnel misses a single
 piece of inventory, we can catch it at the register.  It is
 very unlikely that any customer would pay $10,000 for any toy.
 
     Further systemic enhancement at store level allows any
 customer to file a safety report right in the store.  If one of
 our customers has reason for any safety concern, a report can
 be filed advising us of that concern.  The report, completed in
 front of the customer on a computer terminal, is transmitted
 directly to our headquarters.  An investigation, as I explained
 earlier, is then initiated, if needed.    
 
     An example of how effective our customer complaint system
 works resulted in Toys "R" Us halting sale of an unsafe product
 two weeks before it was recalled by the Commission.  The
 product was the Just Toy "quick n' easy micro-bake" cake set. 
 Toys "R" Us had received a few complaints from customers who
 had various problems while using this product in their
 microwave ovens.  Most complaints were limited to the product
 getting too hot or somehow causing damage to the  microwaves. 
 There were no injuries reported with any of these complaints,
 and all issues were brought to the attention of the
 manufacturer.  However, in early December, we received another
 complaint.  This time, a customer suffered hand burns while
 trying to take the product out of her microwave.  Toys "R" Us
 immediately issued a hazardous stop-sale, in accordance with
 our corporate standard operating procedure.  Next, we notified
 the manufacturer and the Commission of our actions.  On
 December 20, the CPSC announced the Just Toy recall. 
 Incidentally, the microwave was right in the middle of a
 national TV campaign at the time of the Toys "R" Us stop-sale.  
 
     Another important function of the safety program is the
 testing of promotional or premium items.  Testing on these
 items is quite important, since we do not control or
 necessarily know the end-user.  Much larger sample sizes are
 used because of the larger quantities being ordered and the
 nature of the event itself.  Toy safety is an integral part of
 our product development and private label endeavors.  Products
 considered for any of our private brands are submitted to the
 testing lab prior to final buyer acceptance.  Problems that are
 easily correctable are brought to the manufacturer's attention. 
 This procedure allows us to evaluate the product for compliance
 with regulations before spending too much energy or resources
 on concepts and packaging.  
 
     Our biggest challenge in 1995 will be to ensure compliance
 with the new Child Safety Protection Act.  Basically, the act
 requires a very specific warning statement on toys and certain
 other articles for children three to six years of age that are,
 or contain, small parts. The required warning statement
 indicates that the article contains small parts that pose a
 choking hazard to children under three years of age.  The act
 also mandates similar warning statements for marbles, small
 balls and balloons and for toys that contain marbles, small
 balls or balloons.  It should be noted that Toys "R" Us has had
 in place a policy requiring that all latex balloons contain a
 warning label either on the package or on the balloon display
 stand itself.
 
     The Child Safety Protection Act has had greater publicity
 than the Connecticut small parts labeling law which it now
 preempts.  We do, however, anticipate similar compliance
 problems by our suppliers, as those we experienced when the
 Connecticut law went into effect.
 
     By mid-year, we will be testing products against the
 revised industry toy standard, ASTM F963-95.  Again, we
 anticipate delays in shipping the product while our suppliers
 come to terms with the new requirements.
 
     Where do we go from here?
 
     One long-term project, currently in the works, is the
 initial investigation of a proposal to create a Toys "R" Us
 worldwide testing standard. The standard would consist of a
 basic core program supplemented by country-specific needs.  A
 worldwide standard would be advantageous to our U.S. division
 and our international division, while offering economies to our
 suppliers.  There are still many hurdles to overcome before we
 can even contemplate implementation of a worldwide program.
 
     In conclusion, we believe that safety sells.  By having
 comprehensive safety assurance programs in place, we have
 reduced our internal operating costs, particularly the high
 administrative costs involved with recalls.  Furthermore, we
 have improved our customer service by making sure that only
 "safe" toys are being sold in our stores.  Last, but not least,
 we improve our relationship with the CPSC and illustrate how
 companies can work with the government to improve child safety. 
     
     Again, I would like to thank Ann Brown and the Commission
 for inviting me here today and for encouraging industry and
 government to work as partners in making products safe for
 consumers.    
 
                                ##########
 
 Michael Goldstein, Vice Chairman and CEO of Toys "R" Us and a
 member of its Board of Directors, has been with the company
 since 1983.  He is also a Director of the National Retail
 Federation.   
 
 PART 5
                            GORDON F. BRUNNER
 
                          Senior Vice President
                       The Procter & Gamble Company
 
     Procter & Gamble developed and patented a new bottle
 closure, "Safety SquEase," that  meets government requirements
 for child-resistance.  It also adds value and consumer
 satisfaction to a new P&G over-the-counter analgesic by making
 it easy to open for most adults, including senior citizens. 
 
     My case study concerns Procter & Gamble's patented new
 child-resistant closure, which we have named the "Safety
 SquEase."  One year ago this Thursday we were honored to
 receive the CPSC Chairman's first-ever "Commendation for
 Significant Contributions to Consumer Product Safety" for our
 invention and marketing of this new closure.
 
     The "Safety SquEase" closure has been used on bottles of
 Aleve, our new, long-lasting, over-the-counter analgesic drug,
 since its introduction last year.  We have also begun using it
 on our Scope mouthwash product and will introduce it on our
 Vicks NyQuil and DayQuil cough relief products this coming
 fall.
 
     To really convey how we developed the "Safety SquEase," I
 need to give you the context.  Two long-standing corporate
 policies had a major influence.  The first was Procter &
 Gamble's policy regarding the human and environmental safety of
 its products and packages.  The second was P&G's stated
 corporate purpose to create and deliver products of superior
 quality and value that best satisfy consumer needs.
 
     Procter & Gamble's human and environmental safety policy
 is very straightforward.  It is our policy that our products
 shall be safe for humans and the environment, either used as
 intended or under conditions of reasonably foreseeable
 accidental misuse.  We want such safety during manufacturing,
 distribution, warehousing, presentation for sale, consumer
 storage, consumer use, and ultimately, when products and
 packages find their way into the environment, either in total
 or in part.
 
     I should comment that these safety requirements are not
 niceties that we incorporate simply to increase product appeal. 
 Rather, they are corporate mandates, a non-negotiable part of
 every project.  We do think that, in the long term, safety is
 good business, but that is not the fundamental reason for our
 safety policy.  Basically, we have our safety policy because we
 believe it is the right thing to do.
 
     Please note that the term "safe," as used in our policy,
 does not mean absolute safety.  It means relative or practical
 safety, as most consumers and safety professionals would
 understand the term.  This is because there really is no such
 thing as absolute safety for any material in every situation. 
 For example, as you know, both water and table salt can be
 quite lethal if consumed in excessive amounts in improper ways. 
 Similarly, what is considered best safety practice can change
 with time.  Automobile models at the forefront of safety in
 1920 wouldn't be allowed on the road today.
 
     Given that what we are after is relative or practical
 safety, P&G goes to great lengths to ensure that its products
 and packages fully meet this standard.  Some one in eight of
 our R&D staff worldwide, nearly 1,000 people in all, have the
 safety of our products and packages as their only
 responsibility.  Many others contribute to safety also as part
 of their activities.  Among our 1,000 safety specialists in R&D
 are over 250 Ph.D. scientists, including a number of world
 leaders in various aspects of human and environmental
 toxicology.  Since we're at the leading edge of science in
 every area we operate, we believe this expertise is critical.
   
     The kinds of safety issues we consider and test for are
 many.  For example, here are the various potential human
 toxicity issues that we typically address [Exhibit A]. 
 Similarly, here are some of the many questions we ask about new
 chemicals and chemical mixtures regarding their fate in and
 possible effects on the environment [Exhibit B].
 
     We also ask special questions and run special tests to
 address safety issues very specific to particular products. 
 These include, for example, tests of products used in clothes
 dryers to confirm no potential for fires and tests of small
 package parts to confirm no child-choking hazards.
 
     Our commitment to safety assurance doesn't end with market
 introduction but continues as long as a product is sold.  For
 example, we were among the pioneers back in the 1970's in the
 use of 800-lines for consumers and continue to use them
 extensively today.  We also undertake initiatives aimed at
 supporting good safety practices in a general sense.  A recent
 example is our new free guide on home management and use of
 medicines specifically written for parents of young children
 and other caregivers.  It is available free from P&G, courtesy
 of our Vicks and Aleve brands.  
 
     The second pillar upon which the "Safety SquEase"
 development was built is P&G's commitment to selling superior
 products and packages.  We are simply not content to sell "me-
 too" offerings.  Instead, our strategy for success is to have
 product and package superiority, built on innovative science
 and technology.
 
     The development of the "Safety SquEase" cap for P&G's
 Aleve brand analgesic is an excellent illustration of our drive
 for product and package superiority.  For those of you who
 haven't heard about it, Aleve is the result of a joint venture
 between Procter & Gamble and Syntax Labs.  The aim was to
 introduce an over-the-counter version of Anaprox, a fast-acting
 sodium form of the medicine in Naprosyn.  Naprosyn, sold by
 Syntax, had been the leader in the Rx non-steroidal anti-
 inflammatory drug market for a decade.  The thinking was to do
 what had been done in the early '80's when Rx ibuprofen, led by
 Motrin, was converted into the Advil's and Nuprin's of today.
 
     When used at over-the-counter (OTC) dosages, sodium
 Naproxen has advantages over acetaminophen, ibuprofen and
 aspirin.  It's longer lasting than acetaminophen, provides a
 higher level of pain relief than ibuprofen long after the
 medication is taken, and is gentler to the stomach than
 aspirin.  Our research indicated that many consumers, such as
 arthritis sufferers, would find these advantages appealing.  At
 the same time, we knew that our competitors in the highly
 contested OTC analgesics business would not take Aleve's entry
 lightly.  Consequently, we wanted to increase Aleve's margin of
 superiority with consumers if at all possible.
 
     Our packaging people thought they had an answer -- develop
 a truly user-friendly child-resistant package.  Child-resistant
 packages are required for products like Aleve to help prevent
 very young children from consuming toxic amounts out of
 curiosity.  Personal experience, feedback from family and
 friends, and consumer research, however, told us that adults
 regarded existing child-resistant packages as hard to open.
 
     Some consumers, in fact, believe they must choose between
 having a drug package that they can open and one that is child-
 resistant.  This is a terrible dilemma if children live in the
 house or grandchildren visit.  Some adults, unfortunately, cut
 corners.  They buy child-resistant packages but leave the caps
 loose or off after opening the bottle the first time. 
 Obviously, this defeats the purpose entirely.
 
     The reason why most current child-resistant packages are
 difficult to open is straightforward.  Their child-resistance
 is primarily based upon requiring a higher level of strength to
 open the package than a small child can exert.  What was needed
 was some entirely new principle for achieving a consumer-
 preferred child-resistant closure.
 
     This was what our packaging people set out to do.  It was
 not an easy task.  In fact, it took five years.  The first two
 years were spent inventing the design.  Several alternatives
 were conceived and evaluated during this period.  We now hold
 four patents relating to Aleve's Safety SquEase design alone. 
 The next year-and-a-half were spent fine-tuning the package
 design, with heavy emphasis on testing to confirm child-
 resistance, ease of adult use, and product protection.  The
 final one-and-a-half years were spent scaling up to full
 production.
 
     The "Safety SquEase" child-resistant closure is based upon
 the principle of hand-to-hand coordination.  By that I mean the
 ability to do two different things with two hands at one time. 
 This is an ability that children do not develop until around
 age five.  By that time they should be mature enough to
 understand and follow instructions to leave dangerous items
 alone.  But virtually all adults, of course, have this degree
 of hand coordination.
 
     To open the "Safety SquEase" package, you simply squeeze
 the two tabs on the sides of the package lightly while twisting
 off the cap with the other hand.  Closing is even simpler.  You
 just turn the cap until you hear a click.  This click, which
 can be both felt and heard, is a positive signal that the cap
 is fully closed and in a locked position -- fully child-
 resistant again.  We call this a "safety click."
 
     You may find it surprising that small children find it
 very difficult to do two different things with their hands at
 once but I can assure you it is true.  A case in point is the
 old game of simultaneously patting your head and rubbing your
 tummy or vice-versa.  Here is some footage of two real charmers
 trying to do this for us.  We also asked them to try to open a
 bottle with the "Safety SquEase" closure, with similar results.
 
     Of course, we didn't rely on just those two young ladies
 for all our research, helpful as they were.  In fact, we had
 the "Safety SquEase" package tested for child-resistance by
 more than 1,000 children at an independent qualified
 laboratory.  We also had "Safety SquEase" tested by seniors at
 this same laboratory, using the senior-testing protocol that
 was being considered at the time by CPSC.  We further tested
 the package among hundreds of people with arthritis and among
 thousands of typical adult consumers of analgesics nationwide. 
 The new "Safety SquEase" closure -- and, I might add, our Aleve
 product as well -- passed all these tests with flying colors.
 
     Before I go any further, let me openly acknowledge that
 the "Safety SquEase" closure is not the total solution to
 either child-resistance or user-friendliness.  No package that
 is reasonably usable is completely childproof, and all
 medicines should be kept out of the reach of small children. 
 Turning to user-friendliness, there is unfortunately a small
 segment of the population whose hands are very impaired.  Even
 opening the "Safety SquEase" closure is too difficult for this
 small group.  To better meet their needs, we are considering
 marketing the allowed one size of a non-child-resistant
 package.
 
     But even with these caveats, we believe the "Safety
 SquEase" is a real step forward in terms of both product safety
 and consumer satisfaction.  Importantly, consumers seem to
 think so, too.  In just the few months that Aleve has been on
 the market, it is now the #4 brand of analgesic.  This is well
 ahead of what other highly successful analgesic brands achieved
 at the same stage of their existence.
 
     Obviously, I can't tell you how much of Aleve's success is
 due to the "Safety SquEase" closure and how much to its
 outstanding pain-fighting properties.  The two go hand-in-hand,
 so to speak, to create a superior brand entry.  What I can tell
 you, however, is that in less than a year we have already
 received more than 2,500 unsolicited testimonials from
 consumers about Aleve, including more than 300 about the
 "Safety SquEase" package.  That is a very impressive number for
 a package feature.  Let me read to you from one of the more
 touching letters [Exhibit C].  We are certainly pleased that
 the "Safety SquEase" closure has been such a help in many
 peoples' lives.
 
     In summary, Procter & Gamble's new "Safety SquEase"
 closure is providing a high level of product safety, along with
 consumer satisfaction and strong business results.  We think it
 is a clear example that "safety sells."
 
 
                                ##########
 
 Gordon Brunner, Senior Vice President and Member of the Board
 of Directors of Procter & Gamble, has been with the corporation
 for over three decades.  He also serves on the National
 Advisory Committee for the University of Michigan, College of
 Engineering, and is a member of the Government-Industry-
 Research Roundtable.
 
 
         _______________________________________________________
 
 
                                EXHIBIT A
 
                  POTENTIAL TOXICITIES TO BE CONSIDERED
 
 
      1. Acute oral
      2. Acute dermal
      3. Acute inhalation
      4. Acute eye irritation
      5. Primary skin irritation
      6. Skin sensitization
      7. Phototoxicity
      8. Mutagenicity/carcinogenicity
      9. Subchronic toxicity
      10. Developmental/reproductive toxicity (oral or dermal)
      11.     Neurotoxicity
      12. Absorption, distribution, elimination
 
 
 
                                EXHIBIT B
                                     
                      ENVIRONMENTAL SAFETY QUESTIONS
 
 
      1.    How much chemical will be used?
      2.    Is it biodegradable?
      3.    Is it removed by sewage treatment?
      4.    What is its environmental fate?
      5.    What is its effect on sewage treatment plants?  On   

    
              septic systems?
      6.    What concentrations are toxic to fish, algae, and    
              other aquatic life?
      7.    What levels will be present in the environment and   
              in what "compartments?"
      8.    What will happen if the chemical is spilled?
      9.    Are there potential long-term effects of the         
              chemical on the environment? 
      10.   What levels will be present in surface waters?  In   
              drinking water?
 
 
                                EXHIBIT C
 
                             CONSUMER LETTER
 
 
 Dear Sirs,
 
      I would like to thank you so very much for the wonderful
 package -- I should say, packaging of Aleve.  Not only is the
 medication very very helpful!  You can get into the bottle
 easy.
 
      I am sight-impaired and also have brain tumors along with
 arthritis in my knees and various parts of my body.
 
      When you are in pain the last thing you want or need is
 the difficult caps.
 
      You have helped so very much with this inventive cap.  I
 thank you so much.  I really wish I could put into words how
 much.
 
      Thank you for your time in reading my letter.
 
                                                            
 Very truly yours,
   
 
 PART 6
                             ALBERT R. DOWDEN
 
                  President and Chief Executive Officer 
                     Volvo North America Corporation
 
      As part of its decades-long commitment to safety, Volvo
 developed a side impact protection system (SIPS) for use in its
 passenger cars to reduce the severity of injuries from side-
 impact collisions. 
 
      For us at Volvo, the chance to speak today is a bit like
 an invitation to come in from the wilderness -- for it has
 always been Volvo s demonstrated philosophy that not only is
 safety a proper and necessary product element, but it makes
 good business sense as well.  In my business, this has
 certainly not been viewed -- at least until quite recently --
 as  revealed truth,  and even now I wonder to what extent some
 of our competitors are publicly embracing safety more to
 produce a dynamic commercial than a responsible product.  
 
      I want to use this opportunity to discuss Volvo's side
 impact protection system (SIPS).
 
      To put this issue into context, I first need to talk about
 how Volvo thinks about safety.  Here is the central idea I want
 to leave you with:  Safety doesn't result from devices. 
 Putting an airbag in a tin box doesn't make a safe car.  After
 all, the airbag may function perfectly, but that is scant
 protection if the engine is in your lap.  Safety results from
 an overall approach to product conception, design and
 construction.
 
      Volvo learned its way into safety.  Back in 1927 when we
 began, "safety" was one of the original design criteria.  That
 commitment has never wavered.
 
      Safety in the 1920s equaled reliability and durability. 
 This was important.  Driving in the middle of a Scandinavian
 winter, your car's reliability can literally be a matter of
 life and death.
 
      In the 1940s, the same thinking about safety led to unit
 body construction, the precursor of today's passenger cage.  As
 Volvo evolved, so did the science of safety.  Many of our
 advances were learned by feel and experience, not by computer
 modeling.
 
      And what we learned was that everything is a safety issue: 
 where you put the gas tank, the angle of the windshield, the
 size of the door support column, and literally thousands of
 other aspects of auto design.
 
     In 1975, when the US Department of Transportation was
 conducting tests to establish its guidelines for safety, they
 bought 25 Volvo cars.  Then they scientifically demolished
 them.  They wanted the sturdiest, safest cars they could find. 
 Volvo was on the leading edge of safety in the 1970s, with
 features such as collapsible steering columns (we did this by
 intentionally misaligning the joints of the column), a cage
 structure for the cab with front and rear crumple zones to
 absorb the impact of the crash, and three-point safety belts
 designed to be comfortable to encourage use, a safety
 innovation that Volvo invented.
 
      In the 1980s, the leading edge of safety consisted of
 driver-side airbags, followed by passenger-side airbags and
 anti-lock brake systems.
 
      This is a very brief tour, omitting many additional safety
 developments, but I think it is sufficient to set the stage for
 the 1990s and the Volvo side impact protection system.  Let me
 explain to you how this system evolved.
 
      In the late 1980s, the US Department of Transportation
 announced that it would establish side-impact performance
 standards by 1997.  Meanwhile, however, Volvo, having made
 great strides in reducing injuries from frontal and rear
 collisions, had already begun to look into side-impact
 collisions, especially in the development of our 800 and 900
 model series.  We had resolved to learn everything we could
 about side-impact collisions.
 
      This is what we learned:
 
         *  Side impacts are the second most serious of all
          collisions.  The impact is not six feet away from the
          occupants, as in front-end collisions.  It is only six
          inches away.  The transfer of energy occurs almost
          instantaneously.
      
         *  Compensating for close proximity to the occupants    
           and the necessary minimal response time are the       

           overriding requirements in safety design.
 
         *  The front seat is the primary issue.  The rear of    
           the car can be made stronger; the front cannot.  
 
      Considering this knowledge, we developed two goals:  to
 make the energy go somewhere else, not toward the driver and
 passenger, and to protect the driver and passenger from the
 energy that could not be diverted.
 
      Volvo's side impact protection system has several aspects. 
 To deal with the first goal -- to divert the energy of the
 impact away from the driver and passenger -- we stiffened the
 sides of the car.  This has the effect of transferring the
 energy upward and downward, letting the car's frame, especially
 the roof and the floor, absorb much of the energy.  The public
 first saw Volvos with stiffened sides in 1992.
 
      But we didn't stop there.  We still had to find a way to
 meet our second goal: to protect the driver and passenger from
 the energy that could not be diverted.
 
      After seeing the mechanics of side impacts, we knew that
 the most important thing was to lower the rate of acceleration
 of the people inside after a crash.  In a side impact, the
 occupants are instantly accelerated -- at a much higher g-force
 than any fighter pilot or astronaut experiences.  This can
 cause massive internal damage.
 
      We discovered that a side-impact bag -- just the size of a
 loaf of bread when fully inflated -- between the person and the
 impact site would lower the rate of acceleration and prevent or
 lessen the seriousness of injuries.  
 
      The problem is the hair-trigger response time.  The bag
 needs to detect the impact and inflate within 12/1,000ths of a
 second.  And the bag needs to be attached to the seat so that
 it is close to the driver at all times.  Working with AutoLiv
 in Lincoln, Michigan, we did it.  
 
      In the 1995 model year, we introduced the world s first
 side-impact airbag on our 850 series.  We introduced the side
 impact protection system with airbags in print and media
 campaigns in September 1994, and it immediately catalyzed
 people's thinking about safety in this area.  The side impact
 protection system is highly effective, reducing the seriousness
 of side-impact collisions by 50 percent.  I'm proud to say that
 we will roll it out across all model lines now -- even though
 it is not a current requirement.
 
      Let's turn to why we did it.  There are three related
 reasons:  
 
      1)  Safety is a core value for Volvo the company.  When we
 think about a car, or a truck, or another product, safety is
 central to our thinking.  Once we knew side impacts were a
 problem and that the problem could be addressed, we had to
 address it. 
 
      2)  Safety is a core value for Volvo the brand.  It is the
 attribute people think of first when they think of Volvo.  We
 would never dilute the equity of the  brand by ignoring a
 safety issue.
 
      3)  Safety does, in fact, sell.  The presence of safety
 features does help to sell cars, or at least Volvos.  And
 consumers are increasingly attentive to the safety rankings
 that are published by various public and private agencies.
 
      What are the results of the side impact protection system? 
 How do we evaluate this program?  
 
      As I mentioned earlier, we know that the combination of
 side reinforcement and airbags reduces serious injury from
 side-impact collisions by 50 percent.  People really do let us
 know when one of our safety features helps them in a collision. 
 That s one measure -- and certainly the most important.  
 
      But there are other important measures of success.  We
 believe the results of our extensive testing, our engineering
 solutions and our advertising campaign have helped raise the
 awareness of side impacts as a safety issue for the entire
 industry.
   
      We hope that this may help to "raise the bar" on car
 safety requirements.   And in doing so, we have reinforced the
 essential element of Volvo s philosophy:  that safety is
 paramount and Volvo is still the safety leader.  It may be too
 early to tell if this translates directly into sales -- but
 it's bound to help.
 
      Let me tell you where we go from here.
 
      The mainstream car buyer is now more highly attuned to
 safety issues.  The mainstream buyer now wants safety plus
 performance, safety plus style, safety plus fun.  This is in
 contrast to yesterday s buyer, who prioritized but seldom
 demanded everything.  We are working hard to respond to these
 customers, and we believe that our 800 and 900 models
 successfully combine these factors of safety, performance,
 style and fun. 
 
      In looking ahead, we also need to expand our definition of
 safety.  In the past, safety has meant reliability, durability,
 and survivability.  In the coming years, safety is going to
 continue being defined in many different ways.  For example,
 safety may be defined in terms of personal security, which may
 result in panic buttons that automatically make 911 calls.  We
 may also see safety defined as intelligent car network systems
 that help drivers avoid traffic blockages or warn them about
 hazardous road conditions.
 
      But perhaps most importantly in looking ahead, we also
 need to recognize that today s car outperforms the driver. 
 Equipment is now so good on both the performance and safety
 fronts that the most critical auto safety issue is driver
 inadequacy.  This is partly an issue of alcohol, drug and
 substance abuse.  But it is also an issue of driver training in
 how to use properly the new safety systems and technology.    
 
      What do I mean by this?  How many of you who have cars
 equipped with anti-lock brake systems still pump the brakes if
 your car is sliding on ice or gravel rather than apply
 continual pressure, as you should?
 
      My point?  Simple.  We need to "raise the bar" not only on
 automotive hardware safety, but also on the  software,  the
 driver -- not only as to basic driving skills, but also as to
 how to most effectively use the developments that manufacturers
 are now engineering into their products.
 
      While I am proud of the work we have done with our side
 impact protection system, it's important to recognize that
 safety can only emerge from a total design orientation.  The
 public is increasingly attuned to safety as an essential
 attribute of a desirable car.  Our strength at Volvo is not
 measured in the safety of individual features but in the safety
 of the overall product.  This philosophy will continue to drive
 us into a successful, and safe, 21st century.  And not only
 with our cars, but with all our products:  heavy duty trucks,
 marine propulsion systems, earthmoving and construction
 equipment, aircraft engines, and any other products which we
 may, over the years, develop.
 
      Again, my thanks for the invitation to speak with you
 today and my very best wishes to all of you.
 
 
                                ##########
 
 Albert Dowden became President and CEO of Volvo North America
 Corporation on January 1, 1991.  He also serves as Senior Vice
 President of the worldwide Volvo parent company, AB Volvo.  He
 has been with Volvo since 1974.
  

 PART 7
                             GEORGE A. HARRIS
 
                                President
                 Evenflo Juvenile Furniture Company, Inc.
 
      Baby walkers have come under increased criticism by
 pediatricians and consumer safety groups due to the large
 number of accidents each year involving walkers.  Research led
 Evenflo to develop an alternative -- the Evenflo Exersaucer --
 that offers the desirable features of walkers but eliminates
 the mobility that created much of the controversy.
 
      Imagine developing products where the end users cannot
 verbalize what they want, where the actual consumer is
 obsessively concerned about quality and safety, where product
 liability would scare away most investors, and where retailers 
 demands leave very little room for error.  That s the juvenile
 products industry, where Evenflo has been a major player for 75
 years.
 
      It s not enough today to merely develop products that meet
 the demands of the marketplace.  We also spend a tremendous
 amount of time designing the expected quality and safety
 features to meet federal, state and industry standards, as well
 as analyzing how a consumer might misuse the product. 
 Remember, we are dealing with infants who don t read
 instructions and often with parents who read them even less. 
 This ongoing process is known as hazard analysis review.  It
 involves not only our legal, marketing, and engineering staffs,
 but also groups of consumers who help us analyze possible
 hazardous features, such as pinch points, and potential misuse,
 which we then try to design out of the product.  As a
 responsible company with a name that parents have trusted for
 75 years, we realize we must earn that trust every day.
 
      Sometimes safety issues can actually create opportunity. 
 For many years, walkers have been under a tremendous amount of
 criticism in the U.S. from various regulatory agencies, as well
 as professional and consumer groups.  The reason for the
 criticism is that walkers account for over 20,000 accidents a
 year, according to CPSC, due mainly to the fact that they allow
 the child to be mobile, often putting them in harm's way.  It
 should be pointed out that many of these accidents are not
 necessarily the fault of the walker.  No product can be
 designed to relinquish the responsibility of the caregiver to
 use it in a safe and responsible manner.  
 
      In spite of the number of accidents and negative
 publicity, there are still over 1.5 million walkers sold every
 year.  Why?  Because a walker allows a child to sit upright,
 keep an eye on Mom or Dad, and offers play value that
 entertains a child for long periods of time.  The challenge was
 to develop a product that provided all of the positive
 attributes of the walker, particularly play value, but which
 eliminated the mobility.
 
      In December 1992, the idea of developing a non-mobile
 walker with seat- spin motion surfaced at a new-product
 brainstorming session.  Within 45 days, one of Evenflo s
 designers showed us a rough mock-up of the product idea.  We
 immediately recognized it as a potentially innovative
 breakthrough -- a walker that doesn t walk -- and rapidly
 assigned a full development team to refine the concept and get
 the product to market.
 
      But how do you give pre-toddlers the energy outlet,
 stimulation and entertainment they need without true mobility? 
 That was one major design question addressed by the Exersaucer
 development team that refined the original concept.  Consisting
 of marketing, quality assurance, engineering, manufacturing and
 design personnel, the team had one critical thing in common: 
 each was the parent of an infant.  As consumers and parents,
 team members understood first-hand the features such a product
 must have.  Our basic challenge was to provide children with
 activity and entertainment in a safer environment.  
 
      The polling of parents in consumer focus groups yielded
 the unanimous opinion that the Exersaucer should be comfortable
 physically as well as emotionally.  That meant designing in not
 only a cushioned, supportive seat, but also the Exersaucer s
 niftiest function -- spinning -- which enables the child to
 keep Mom and Dad in view at all times.  In addition, live
 observations of how children use walkers and doorway jumpers
 led the team to include two added features:  rocking and
 bouncing.
 
      After children burn off energy through spinning, rocking
 and bouncing, the Exersaucer provides less intense forms of
 entertainment and stimulation.  Based on observations of
 children at play and on feedback provided by professional child
 caregivers, the team selected various visual and tactile
 stimuli -- a spinner ball, plastic sliding toys, and a mirror -
 - and designed them to attach to the Exersaucer s outer rim. 
 The team added another parent-friendly feature to the
 Exersaucer:  a lock to stop the spinning and rocking motions so
 parents can feed their children without removing them from the
 Exersaucer.  
 
      Along with the desired product features, the team worked
 concurrently on an equally important requirement -- the safety
 aspects of the Exersaucer.  Government safety standards do not
 yet exist for the Exersaucer because it is a new product type. 
 So, as a starting point, the Evenflo team designed to standards
 established for walkers.  Other standards designed and tested
 to included the Consumer Product Safety Commission
 specification for toys and the appropriate federal regulations
 for small parts, sharp edges, etc.
 
      The hazard analysis review process drove the team to
 review all potential hazards that could be associated with the
 product, paying special attention to opportunities for misuse.
 
      Based on the intensive development effort, Evenflo began
 production of the Exersaucer with first shipments in February
 1994.  Has the Exersaucer been successful?  In 1994 it won the
 following awards:
 
         *      New Products Award from the Juvenile Products
 Manufacturers Association 
 
         *   Bronze award from the Industrial Design Society of
 America 
 
              *   Product of the Year Award from the National
 Independent Nursery Furniture Retailers Association
 
      In addition, Evenflo and the Exersaucer have garnered a
 tremendous amount of publicity. But the truest test of all is
 whether the product sells and meets consumer satisfaction.  In
 the fourth quarter of 1994, the Exersaucer captured 36 percent
 of the walker/exerciser category and was the top-selling single
 product.  In addition, we have received thousands of cards from
 satisfied parents not only telling us how happy they and their
 child are with the product, but also thanking us for providing
 them with an alternative.  
 
      In closing, only through carefully conducted customer
 research and an extremely detailed examination of all safety-
 related design concerns could Evenflo have created the
 Exersaucer, a revolutionary alternative to the walker.  By
 satisfying the youngsters who use it, the parents who buy it,
 and the retailers who sell it, the Exersaucer can truly be
 called a winning product alternative to walkers.
 
 
                                ##########
 
 George Harris has been the President of Evenflo Juvenile
 Furniture Company, Inc., since 1990.  He is a member of the
 Board of Directors of the Juvenile Products Manufacturers
 Association.
 
 
 PART 8  
                              JOHN HETTERICK
 
                  President and Chief Executive Officer
                            Rollerblade, Inc.
 
      In-line skating is one of the fastest growing sports in
 America.  To attract new customers and keep the old,
 Rollerblade has used safety messages as an important marketing
 strategy to make people aware of safety precautions they should
 take.  Rollerblade uses several safety-specific marketing tools
 to partner its safety messages with its marketing image. 
 
      It's an honor and a pleasure to be here today to talk
 about Rollerblade's safety programs and their role in the
 marketing of our products.  I'd like to start today by showing
 a segment from our latest point-of-sale video.  See if you can
 pick out our safety messages.  (Video shown to audience.)
 
      That's the kind of image and excitement that has made our
 products so successful.  But what stands out as a "safety
 message?"  Every single skater is outfitted from head to toe in
 protective gear, which is mandatory for all Rollerblade 
 promotional photography and video.  I'll review more safety-
 specific marketing tools later.  This is one of the more subtle
 examples of how our marketing image can partner successfully
 with our safety messages.
 
      Let me also give you a brief overview of our company and
 our position in the in-line skating industry.  To start with,
 many people are unaware that there are more than 30 companies
 making in-line skates today.  Rollerblade started it all back
 in the 1980s -- and we still maintain a 50 percent market share
 -- but  we have lots of competition these days.
 
       Contrary to popular belief, "rollerblading" is not the
 name of the sport.  The correct term for the sport is "in-line
 skating." "Rollerblade" is a trademarked brand, much like
 "Kleenex" and "Xerox."  And we go to great lengths to protect
 our trademarked name.
  
      Rollerblade is in a unique position because we founded an
 industry and played an essential role in every aspect of its
 development.  Today there is the International In-line Skating
 Association that is supported by the industry and helps promote
 safety.  But the forerunner to this organization was the
 Rollerblade In-line Skating Association, which we created in
 1987 to help promote safe skating.
 
      Safety messages have been an important marketing strategy
 for Rollerblade from the very beginning.  In-line skating is an
 action sport that requires certain gear and precautions before
 starting out.  Making people aware of and responsible for their
 safety while in-line skating ensures a fun experience -- and
 keeps people in the sport.  Encouraging a safe, fun experience
 also ensures that people will keep entering our sport.  Our
 current instructional video, "Ready, Set, Roll!," helps people
 get started.
 
      Because we enjoy the benefits of a cool, edgy and exciting
 image, we have to make certain our safety messages don't
 conflict or confuse people about our products and sport.       
 That's why Rollerblade's early safety programs had themes like
 "Don't Skate Naked" and "Skate Smart."   We wanted to get
 people's attention and create awareness about safety -- and
 still be cool.
 
      The tremendous growth in our sport -- participation has
 increased more than 500 percent over the past four years --
 makes it even more important to get out the message that safety
 enhances the skating experience.
 
      There are two key reasons why Rollerblade emphasizes
 safety in our marketing efforts:
 
      1)  Concerns about safety can keep people from trying our
 sport -- and that, of course, translates into fewer sales
 opportunities.
 
      2)  People who have had a bad experience need a very good
 reason to try in-line skating again -- and this time without
 fear!   
 
      Rollerblade produces a lot of traditional consumer safety
 information, such as instructional videos, consumer brochures,
 media materials and in-box handbooks.  I'd like to highlight
 just two programs that best illustrate our approach to
 marketing safety.
 
 Automated Brake Technology (ABT)
 
      Our most significant new technology and safety tool, all
 rolled into one, is the ABT brake, which we introduced last
 year.
 
      How to stop on in-line skates has been the single biggest
 obstacle keeping people from entering our sport.  ABT offers
 consumers a whole new way to stop while keeping all eight
 wheels on the ground.  And it's much easier for beginners to
 learn with the ABT brake.
  
      The introduction of the ABT brake was supported by
 television advertising that reinforced the consequences of
 skating recklessly.  And it did so in a hip, humorous way that
 both entertains and educates our largely young audience.        

 ABT was also supported by print ad, major public relations      

 efforts and in-store merchandising.
 
      The results have been phenomenal.  We sold 650,000 pairs
 of ABT skates last year and one of the ABT models is our
 number-one seller. 
 
      ABT was named to several "Product of the Year" lists,
 including Business Week and Popular Science.  In addition, our
 Aeroblade ABT skate was selected for an exhibit on integrating
 technology and design at the Museum of Modern Art in New York
 this spring.
  
      The success of the ABT and its safety theme tell us that
 consumers want to participate in the fun of in-line skating --
 but they most definitely want a safe ride. So this year, we are
 introducing a children's skate with the ABT brake and a
 moderately priced skate with ABT.  We expect the popularity of
 this family of skates to continue to grow dramatically.
 
 "Asphalt Bites" Campaign
 
      In 1995, we also are taking our consumer safety messages
 to a new level by introducing a national consumer awareness
 campaign.
 
      Our thinking was that if we could come up with something
 hip and humorous to remind people about the importance of
 wearing protective gear, we'd not only get attention for the
 campaign itself, we'd attract more people to the sport and sell
 more skates and gear.
 
      In keeping with our image, we wanted a theme for our
 safety campaign that would appeal to the average 14-year-old. 
 Younger kids aspire up to what this age group thinks is cool,
 and we older folks often aspire down to this group as well. 
 Well, maybe not as far down as 14 in my case!
 
      With that in mind, we selected this theme:   "Asphalt
 Bites. Wear the Gear."
 
      We had a very funky logo designed and introduced the
 campaign to national media at an event in New York attended by
 more than 45 consumer publications.
 
      "Asphalt Bites" is a multi-year campaign that includes the
 following components:
 
         *  promotional items, such as T-shirts and
          stickers;
           
         *  a consumer safety brochure; 
           
         *  an instruction information headline; 
           
         *  school programs; and 
         *  incorporation of the "Asphalt Bites" logo into 
          ad, packaging and point-of-sale materials.
 
      The cornerstone of Rollerblade's "Asphalt Bites" campaign
 is a public service announcement -- or PSA -- for television. 
 As most of you know, a PSA is unbranded and is broadcast by
 media outlets as information to consumers.  Given our
 objectives, see what you think of the safety message in our
 PSA.  (PSA shown to audience.)
 
      Pretty wild, huh?  But it got your attention, didn't it? 
 And by the way, no cat was hurt in this spot.  We had a
 professional cat wrangler and an ASPCA cop on hand making sure.
 
      The PSA will run on MTV this summer, and we plan to offer
 it to TV stations around the country.  By the way, MTV will run
 the PSA spot free right after we run our paid TV spot.  It
 won't say Rollerblade, but the connection will be clear.  We
 are also developing a print PSA and posters with the "Asphalt
 Bites" theme for schools, hospitals and community centers.
 
      Rollerblade's "Asphalt Bites" campaign has been very well
 received so far and we hope to expand on the program in the
 future. 
 
      Before I answer your questions, let me underscore why
 safety and marketing go hand-in-hand for Rollerblade.  Safety
 is obviously an important component for an action sport like
 in-line skating.  The difference for us is how we look at
 safety and how we present it to consumers ... and that message
 is:
 
      "Being safe just makes skating even more fun!"
 
      Thanks.  I'd be happy to answer any questions you have.
 
 
                                ##########
 
 John Hetterick has been President and CEO of Rollerblade, Inc.
 since March 1992.  He was previously with the Tonka Toy
 Corporation and Pepsico.
  

 PART 9
                              J. C. ANDERSON
 
                         Corporate Vice President
                          Whirlpool Corporation
 
      Whirlpool is taking an increasingly proactive approach to
 potential product safety concerns and views all its activities
 -- from training to design evaluation to early and frequent
 product testing   --  as integral to what consumers expect in
 their home appliances:  safety and quality.   
 
      Good afternoon.  I appreciate this opportunity to
 represent Whirlpool Corporation at this conference.  It is my
 pleasure to be in the company of the other speakers, the
 Commission, and all of you in the very positive pursuit of
 providing ever-higher levels of product safety for our
 consumers.  I hope to offer you another perspective on how
 safety sells.
 
      Safety has always held an important position for us at
 Whirlpool.  It stands at the center of our company's culture. 
 Our culture is best expressed in the values all of our
 employees share regarding how we seek to operate:
 
      *  business with integrity ... no right way to do a wrong
 thing;
 
      *  quality as a quest ... lift the quality and the value
 of our products above the expectations of those who receive
 them;
 
      *  customer as focus;
 
      *  commitment to the common good;
 
      *  power of trust;
 
      *  learning to lead; and
 
      *  a spirit of winning.
 
      It would be difficult to articulate these values, and we
 do, and then to permit safety issues to occupy less than the
 highest priority within our company.  As a result, we look at
 providing product safety, not only as good business, but as our
 way of doing business. 
 
      Product safety at Whirlpool closely parallels our
 relentless pursuit of quality.  In fact, I'm privileged to
 chair both the quality and safety committees within our North
 American Appliance Group.  As a result, I can tell you without
 reservation that the same individuals who define safety also
 define the quality of our products:   consumers.  Their
 definition is quite simple.  They expect appliances to operate
 safely.  Period.  Therefore, we consider developing,
 manufacturing and marketing safe products as the standard for
 entry into our home appliance industry, rather than as a
 competitive advantage.
 
      Let me hasten to add, however, that although consumers
 expect our products to be safe, they may not always treat them
 or use them in ways that are safe.  In fact, they sometimes do
 what we least expect with them.  That's particularly true as
 younger and younger consumers participate in household tasks.
 
      Whirlpool has always dealt with product safety as a key
 concern, from product concept to delivery.  We've reacted
 quickly to potential consumer safety issues, whether they arose
 from normal use or through misuse.  We continue today to work
 aggressively and proactively to prevent safety issues from even
 arising in the first place.
 
      Let me illustrate one of the changes that has taken place. 
 Many of you are old enough to remember a challenge our industry
 faced in the '50s.  The challenge was youngsters at play using
 the refrigerator in the garage for a "jail" of sorts for
 playmates.  The combination of playmates' forgetfulness and a
 latched door handle sometimes meant that play turned to
 tragedy.
 
      A group of Whirlpool engineers, however, working with
 other industry, consumer and government groups, looked intently
 for a way to provide a refrigerator closure strong enough to
 assure properly chilled foods, yet one from which a youngster
 could free himself if the refrigerator were put to this
 unintended "jailhouse" use.  And they found it:  an industry
 first that Whirlpool developed in 1958, and later shared with
 industry -- the now-familiar magnetized refrigerator-freezer
 door gasket in each of our kitchens.  A specific situation, a
 focused response.
 
      Contrast this scenario with one which occurred much more
 recently.  In fact, it's a real hometown story.  The fire chief
 in Benton Harbor, Michigan, where Whirlpool world headquarters
 is located, came to the company with some concerns following
 three mysterious home fires in the area.  In each of the fires,
 clothes recently dried but removed from the dryer had suddenly
 ignited.  There was no evidence of dryer involvement and, in
 fact, none of the dryers were manufactured by Whirlpool.
 
      Clearly, neither our product nor our competitors' was the
 "culprit," yet Whirlpool aggressively underwrote and undertook
 a study targeted at finding the fires' origin.  In doing so, we
 learned that lifestyle changes can pose as great a threat to
 safety as misuse.  The change in this case was from the use of
 saturated to unsaturated cooking fats, the unsaturated fats
 being more volatile.  It seems that in each case, the consumer
 had used vegetable oil and, in the process of cleaning up
 afterwards, soiled a dishtowel or piece of clothing. 
 Subsequently, the soiled article was tossed into the washer for
 cleaning and from there into the dryer.
 
      What our study revealed was that vegetable-oil soiling
 requires hot water and suds cleaning instead of the warm water
 washes typically specified for today's fabrics, and that
 without that cleaning, fabrics soiled with oil catch fire if
 heated, whether in a hamper, by a dryer, or near a space
 heater.  Whirlpool provided this information to allied industry
 groups, the soap and detergent organizations, the Association
 of Home Appliance Manufacturers, and, of course, to the CPSC. 
 The CPSC then made a public announcement warning consumers. 
 Whirlpool continues to warn dryer users with our product
 labeling and literature.
 
      Our proactive approach to safety today, however, goes far
 beyond any single action we might take with regard to an
 isolated, potential area of concern.  Instead, our approach has
 really become a continuum of activities, from training to
 retrieval, if necessary, weaving safety across a broad spectrum
 of functions and contacts with consumers.
 
      A very important activity in this continuum is the
 training and education of our product designers, developers and
 marketers.  Over the past year, we completed extensive analysis
 into the root causes of product failures that we've experienced
 historically at our operations worldwide.  We then took that
 analysis and turned it into focused, intensive and required
 training for our people.  This training includes a series of
 detailed design checklists for every product in every product
 category we manufacture.
 
      In addition to training, we established aggressive design
 criteria targeting safety and the way in which those criteria
 are employed throughout our design and development process. 
 For example, we place great emphasis on robust product design;
 we integrate early and frequent testing into the way consumers
 use our products as an important part of our design evaluation;
 and we maintain constant communication with consumers to enable
 us to refine our designs, if necessary.
 
      Once a design has received approval for the marketplace,
 we stress aggressive, continuous process improvement to deliver
 products with ever-increasing levels of quality and that
 operate as intended for safe use.  During the past couple of
 years, we've drilled our folks on statistical process control
 to greatly diminish product variation.  We're covering the same
 ground today with design of experiments to enable us to achieve
 dramatic improvements more quickly.
 
      Let me note that, as we're improving our product quality
 and safety from the  "micro" perspective -- that of individual
 interactions with products -- we're also contributing to the
 broad, "macro" safety concern we share for the environment. 
 With less variation comes less rework, less scrap, with the
 result that we're using up fewer materials and expending less
 energy.
 
      Even with this strong emphasis on prevention, we must
 still be ready to respond should a safety issue arise.
 
      There is not just a single program on which we, and
 ultimately the consumer, depend if a safety issue arises, but
 rather, an interweaving of a number of programs.  Several years
 ago, it became apparent that the first factor affecting our
 ability to respond would be the existence of a plan for rapid
 response.  It's obvious, I think, that the worst time to try to
 plan is when you're faced with a crisis.  Therefore, people
 from a broad spectrum of the functions within our company who
 would be involved in any such response sat down to define
 carefully what their roles were, how to coordinate those roles
 and what steps each must follow should a consumer safety issue
 arise.  This defined process enables each member of our
 response team, whether in marketing, communications, consumer
 affairs or engineering to take the appropriate actions
 immediately upon alert.
 
      Continual monitoring and contact with consumers provide us
 the data to mount such alerts if a safety issue arises. 
 Concerns may surface from a variety of sources -- testing, our
 service network, our distribution network, or our consumer 800
 number.  Any consumer complaint targeting potential safety
 issues that arrives via our 800 number reaches the desk of
 Whirlpool's director of product safety each morning.  This
 daily monitoring enables him, and our company as a whole, to
 get on top of whatever potential issue has arisen just as soon
 as it comes to light.  It enables us to make judgments and act
 faster to protect consumers.
 
      If we determine that there is a potential for failure that
 will affect consumers, then we move aggressively, and in a
 number of areas to protect them.
 
      We make every effort to intercept a product before it ever
 reaches the market by putting a "hold" on the model in question
 through the distribution system.  In some cases, the product
 may already have reached consumers.  In those situations, our
 extensive consumer data bank proves invaluable by making it
 possible for us to move quickly to reach that product.  Once
 we've identified consumers who own the model in question, we
 relentlessly pursue them.
  
      In order to make the product right and to make the owner
 feel comfortable and confident in its use, the earlier in the
 product's life we identify a problem, the easier it is to
 retrieve.  But regardless, we never stop looking for a product
 that has the potential for failure related to consumer risk.
 
      We're getting very good at it, in fact.  In 1988, we
 experienced a problem with some of our dishwashers.  It took us
 some 20 months to retrieve 85 percent of the product in
 question.  During 1993, by contrast, when some of our
 microwaves surfaced with a potential problem, we were able to
 retrieve 90 percent of the product in just four months.  And
 last year, when we raised a concern regarding a compressor
 issue with our suppliers, we were able to retrieve 95 percent
 of the compressors in question in three short months!  So our
 process, our responsiveness has greatly improved.
 
      Today, the emphasis we place on safety throughout our
 company underscores the fact that safety truly is at the center
 of our culture.  Regardless of publicity, government agencies
 or the courts, Whirlpool will continue to pursue and produce
 the same appliances with the same level of concern for users'
 safety.
 
      In closing, I offer that Whirlpool believes in
 aggressively pursuing safety because it's "the right thing to
 do," and because we feel our consumers expect, even demand,
 safe home appliances.
 
 
                                ##########
 
 J. C. Anderson was named Corporate Vice President for
 Manufacturing and Technology, North American Appliance Group,
 in March 1995.  He has been with Whirlpool since 1968.