The Estée Lauder Companies Inc. Completes Planned Senior Management Succession

The Estée Lauder Companies Inc. (NYSE:EL) announced today that it has completed its senior management succession plan first announced in November 2007. Completion of the plan was approved by the Company’s Board of Directors this week. These appointments will be effective July 1, 2009, the start of the Company’s fiscal year 2010.

As President and Chief Executive Officer, Fabrizio Freda, 51, who is currently President and Chief Operating Officer, will be responsible for developing the Company’s overall vision, strategy, financial objectives and investment priorities. He will be accountable for the achievement of the Company’s overall corporate performance objectives, including revenue, profit, and return on invested capital goals. Mr. Freda will also become a member of the Company’s Board of Directors as of July 1, 2009.

William P. Lauder, 48, the Company’s current Chief Executive Officer, will become Executive Chairman and will serve as Chairman of The Estée Lauder Companies’ Board of Directors. As Executive Chairman, Mr. Lauder will partner with Mr. Freda to create significant long-term shareholder value for the Company’s investors. Together with Mr. Freda, Mr. Lauder will help drive and support the Company’s brand and global expansion opportunities in addition to his day-to-day management responsibilities.

Leonard Lauder, the current Chairman of the Board, will remain on the Board and become Chairman Emeritus.

Mr. Freda has been a key architect of the Company’s long-term strategic plan, which is focused on gaining market share in the global prestige beauty industry and improving profitability. The Company is committed to successfully executing its multi-pronged plan, particularly in the face of the current challenging economic climate. The Company will also make further investments in consumer knowledge and global research and development to drive innovation and creativity, which have been hallmarks of its 63-year history.

The four-year strategy prioritizes the Company’s most promising opportunities, including its core brands, most profitable categories, high-growth distribution channels, expanding markets, and important countries and regions. The strategy’s other critical elements are designed to reduce expenses, integrate brands and regions to improve efficiency and leverage scale, and turn around underperforming brands.

“It is a great honor to lead this fantastic Company to even greater heights of success,” Mr. Freda said. “I’m pleased to have gained the confidence of the Lauder family, the Board and, most of all, the Company’s greatest asset, its more than 30,000 employees worldwide. As we embark on this next chapter, guided by our new corporate vision to imagine, integrate and innovate, we expect to deliver unparalleled creativity, improve efficiency and unite the brands and regions into a cohesive whole.”

“Fabrizio is a superb leader. In just one year, he has done a tremendous job in leading the implementation of our Company’s long-term strategic plan,” William Lauder said. “Fabrizio expertly balances the need for greater efficiencies and financial discipline while fostering innovation and creativity.” He continued, “I believe we have great potential to continue to develop groundbreaking, innovative products, grow market share, and find new avenues of distribution as the leading prestige beauty player worldwide.”

Leonard Lauder said, “Fabrizio is a perfect fit with The Estée Lauder Companies’ culture. His strategic vision and ability to keep the consumer at the center of our business model will be instrumental in continuing to take us forward. I have every confidence that Fabrizio and William will make this leadership transition seamlessly, and together they will lead the Company to new heights.”

“I am extremely proud of how far William has taken the Company during his tenure as CEO. During his watch, the Company accelerated its international growth significantly, particularly in China and Russia, and successfully expanded its global reach by entering new countries such as India and Vietnam. William was the driving force in expanding distribution into new channels, including Company-owned free-standing stores and the fast growing direct response television channel. He also led the Company’s e-commerce initiative, which today is our fastest growing channel. Included in his many accomplishments, he led the creation of BeautyBank, the Company’s entrepreneurial think tank, founded the Origins Brand and served as President of the Clinique brand earlier in his career,” said Leonard Lauder.

Prior to joining The Estée Lauder Companies, Mr. Freda had a 20-year career at Procter & Gamble, where he was responsible for various operating, marketing and key strategic efforts. Most recently, Mr. Freda was President, Global Snacks. In this role he led the business and managed employees, factories and research and development centers around the world. Previously, Mr. Freda spent more than a decade in positions of increasing responsibility in the Health and Beauty Care division at P&G. Earlier in his career he directed marketing and strategic planning for Gucci SpA. Mr. Freda earned degrees in Economics and Business Administration from the University of Naples, Italy. He is married and has two children.

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 140 countries and territories under the following brand names: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M•A•C, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, Good Skin™, Grassroots Research Labs, Sean John, Missoni, Daisy Fuentes, Tom Ford, Mustang, Coach, Ojon and Eyes by Design.

An electronic version of this release can be found at the Company’s website, www.elcompanies.com.

The forward-looking statements in this press release, including those containing words like “expect,” “plan,” “believe” and those in Mr. W. Lauder’s, Mr. L. Lauder’s and Mr. Freda’s remarks, involve risks and uncertainties. Factors that could cause actual results to differ materially from those forward-looking statements include current economic and other conditions in the global marketplace, shifts in the preferences of consumers as to where and how they shop for the types of products the Company sells, competition, the Company’s ability to successfully implement its long-term strategic plan and those described in this press release and the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2008.