Kimberly-Clark Announces Actions to Improve Organizational Efficiency and Effectiveness

Global Salaried Workforce Reduction of Approximately 1,600 Positions Expected to Yield Annualized Savings of About $150 Million

Charges Will Total $140 to $150 Million, or Approximately 25 Cents Per Share, Mostly Affecting Second Quarter Results; Related Savings of About 10 Cents Per Share Expected During the 2nd Half of 2009

DALLAS - Kimberly-Clark Corporation (NYSE: KMB) today announced actions designed to improve its competitive position and become a stronger, faster, and leaner organization. The company said it will reduce its worldwide salaried workforce by approximately 1,600 positions by the end of the year.

In light of the challenging business environment, the company previously indicated it was preparing plans to streamline its organization and that it would also accelerate its cost reduction programs, particularly for sourcing and supply chain activities.

It is expected that the organizational changes announced today will generate annualized pre-tax savings of about $150 million, further strengthening Kimberly-Clark’s profitability and cash flow. Anticipated savings of approximately $60 million, or 10 cents per share, will benefit the company’s results during the second half of 2009. Severance and related costs to streamline the organization will be recorded during the second, third and fourth quarters of the year, totaling $140 million to $150 million pre-tax, equivalent to about 25 cents per share. Approximately $110 million of the costs will be recorded in the second quarter.

“These actions, while difficult, are necessary to help us emerge from this demanding economic environment as a stronger company,” said Tom Falk, Kimberly-Clark Chairman and CEO. “Through these changes we will be a more effective organization, with faster decision-making helping to drive efficiency throughout all aspects of our operations. In addition, by increasing our cash generation, we will be in a better position to take advantage of future growth and innovation opportunities.”

Reductions in the workforce will come from all regions and business segments of Kimberly-Clark’s global operations and will primarily affect salaried and non-production jobs. The company does not plan to close any of its manufacturing facilities as part of these actions.

The effects of today’s announcement on 2009 results were not included in the company’s previous earnings guidance. Guidance will be updated in Kimberly-Clark’s second quarter earnings announcement on July 23.

About Kimberly-Clark

Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people - nearly a quarter of the world’s population - trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds the No. 1 or No. 2 share positions in more than 80 countries. To keep up with the latest K-C news and to learn more about the company’s 137-year history of innovation, visit www.kimberly-clark.com.

Certain matters contained in this news release concerning the business outlook, including expected savings, anticipated financial and operating results, strategies, contingencies and anticipated transactions of the company constitute forward-looking statements and are based upon management’s expectations and beliefs concerning future events impacting the company. There can be no assurance that these future events will occur as anticipated or that the company’s results will be as estimated. For a description of certain factors that could cause the company’s future results to differ materially from those expressed in any such forward-looking statements, see Item 1A of the company’s Annual Report on Form 10-K for the year ended December 31, 2008 entitled “Risk Factors.”