The Estee Lauder Companies Inc. Agrees to Acquire Ojon Corporation; Natural-Based Brand Strengthens Hair Care Offerings

The Estée Lauder Companies Inc. (NYSE:EL) announced today it has agreed to acquire the Ojon Corporation, a privately held prestige hair care company based in Canada. The closing of the acquisition, which is subject to certain conditions, including regulatory approval, is expected to occur in July 2007. Terms of the deal were not disclosed. Ojon markets and sells products made with ingredients collected by the Tawira, an indigenous community living in the Central American rainforest. In their native language, Tawira translates to "the people of beautiful hair.” Ojon, incorporated in 2003, markets its naturally-derived shampoos, conditioners, styling products and treatments through QVC, specialty retailers--including Sephora, Ulta and Nordstrom--and approximately 300 high-end salons. The Ojon products are also available in limited distribution overseas. Ojon products are made with palm nut oil produced by the Tawira and help improve hair’s strength, moisture, shine, and reduce breakage. In late 2006, Ojon also successfully launched Rare Harvest Tawaka Collection, a 3-SKU skin and hair care treatment line based on a wild-crafted blend of anti-oxidant rich cacao harvested in the Honduran rainforest. "The acquisition of Ojon strengthens our position in hair care and further broadens our distribution. It should enable us to expand in the rapidly growing direct response television and specialty retailing channels,” said Philip Shearer, Group President of The Estée Lauder Companies. "Natural and organic products are among the fastest growing areas in the beauty industry and Ojon has a compelling story that we believe should resonate with consumers globally.” "Ojon is a terrific strategic fit in our portfolio,” William P. Lauder, President and Chief Executive Officer of The Estée Lauder Companies, said. "It’s a socially responsible, innovative company with potential for rapid and sustained world-wide growth. We envision Ojon eventually becoming a global brand of wild-crafted, natural products made with ingredients found in indigenous communities around the world.” To source its ingredients, Ojon has partnered with the Mosquitia Pawisa Agency for the Development of the Honduras Mosquitia (MOPAWI Organization), a local non-profit group that works on behalf of indigenous communities in the region. Through its contract with the MOPAWI, Ojon purchases wild-crafted palm nut oil and other ingredients from thousands of Tawira producers, who collect the ingredients in a hand-crafted process consistent with ancestral practices. The ingredients, largely palm oil and cacao, are then sent to Originitalia, a plant in northern Italy, where they are purified and blended into Ojon products. Ojon has earmarked a portion of profits from the sale of Ojon products to help the Tawira preserve its traditional lifestyle and protect and sustain the rainforest. It has established safety standards, scholarship funds and environmental protection measures. Founder Denis Simioni will remain as President of Ojon reporting to Philip Shearer. The Estée Lauder Companies will appoint a General Manager to the brand and plans to keep the company’s existing management team and headquarters in Canada and continue to operate Ojon as a stand alone business. Additionally, Ojon is expected to maintain its relationship with its current manufacturer, Originitalia. "I have been in the business 18 years and have always looked at Estée Lauder as the most prestigious cosmetic company,” said Denis Simioni. "Ojon is like my child that grew up too fast and now needs a great university to take it to the next stages of its life. We believe that Estée Lauder will do that for Ojon by educating us and giving us what we need to take us to the next level. It doesn’t get any better than this!” The forward-looking statements in this press release, including those containing words like "expected,” "should,” "plans,” "believe,” "envision,” and those in Mr. Lauder’s, Mr. Shearer’s and Mr. Simoni’s remarks involve risks and uncertainties. Factors that could cause actual results to differ materially from those forward-looking statements are contained in the Company’s filings with the SEC, including those detailed in the "forward-looking statements” section of the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2007 and Annual Report on Form 10-K for the fiscal year ended June 30, 2006. They include, among others, competition, changes in the retail industry, foreign currency fluctuations and other risks related to doing business abroad, shifts in consumer preferences as to where and how they shop for beauty products, the Company’s ability to develop products on which future results may depend, changes in product mix to ones which are less profitable and the Company’s ability to integrate acquired businesses and realize value therefrom. The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 130 countries and territories under well-recognized brand names , including Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M.A.C, Bobbi Brown, Tommy Hilfiger, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, Good Skin, Grassroots, Sean John, Missoni, Daisy Fuentes and Tom Ford Beauty. An electronic version of this release can be found at the Company’s website, www.elcompanies.com.