NEW YORK, NY – May 17, 2010 – The Estée Lauder Companies Inc. (NYSE: EL) announced today that it has signed a definitive agreement to acquire Smashbox Beauty Cosmetics, Inc., a privately held, photo studio-inspired prestige cosmetics company based in Los Angeles, California. The acquisition is expected to close in July 2010, subject to certain conditions, including regulatory approval. While terms of the deal were not disclosed, the Company said that the transaction is expected to be accretive to earnings in fiscal year 2011, before transaction and integration costs.

The Smashbox brand, with its unique equity positioning, is a strategic complement to The Estée Lauder Companies’ portfolio of leading prestige cosmetic brands. Smashbox’s significant presence in assisted open-sell environments and specialty distribution channels will expand The Estée Lauder Companies’ product offerings and reach new and younger consumers in these high-growth prestige channels. Additionally, The Estée Lauder Companies will leverage its extensive international experience as it seeks to grow the brand and engage Smashbox’s expertise in digital and social media to advance its current capabilities, an important and growing competency for the Company.

Smashbox Beauty Cosmetics was founded in 1996 by brothers Dean and Davis Factor, great-grandsons of the makeup legend Max Factor, who were inspired by photo studio celebrities to create a unique makeup brand that met the highly demanding needs of a professional photo shoot. Since that time, Smashbox has established itself as a highly successful prestige cosmetics brand and a top performer in specialty channels. Currently, the majority of Smashbox’s sales are based in North America.

William P. Lauder, Executive Chairman of The Estée Lauder Companies, said, “One of the enduring strengths of The Estée Lauder Companies is our ability to identify brands with unique positioning and nurture those brands to accelerate their momentum and realize their full growth potential. The addition of Smashbox to our portfolio continues this 64-year legacy. We expect that with our strong cultural synergies and shared appreciation for family heritage, this will be a wonderful union.”

“Smashbox, like The Estée Lauder Companies, is a creativity-driven, consumer-inspired organization with great talent,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies. “Adding Smashbox to our portfolio of brands will help strengthen our presence in prestige specialty channels worldwide, increase our product offerings in this important category and enhance our capabilities in digital media and direct response television. We are energized by the promising momentum of Smashbox and believe the brand will help attract new and younger consumers to The Estée Lauder Companies all over the world.”

“The Estée Lauder Companies is the ideal home for Smashbox,” said Dean Factor, co-founder and Chief Executive Officer, Smashbox Beauty Cosmetics, Inc. “The Company possesses the scale and vision to help transition Smashbox into its next phase of growth, and its track record of nurturing and growing prestige brands is second to none. Moreover, we share a similar cultural heritage and dedication to consumer-inspired innovation and creativity. We expect to benefit greatly from The Estée Lauder Companies’ extensive knowledge in product development, operational execution, and international marketing and distribution, and we look forward to the next great period of growth for the brand.”

“Smashbox is the leading Hollywood photo studio-inspired cosmetics brand with a devoted following and timeless appeal,” said John Demsey, Estée Lauder Companies’ Group President, responsible for the Estée Lauder, M•A•C, Tom Ford, Prescriptives, Bobbi Brown, Jo Malone, La Mer brands and after closing, Smashbox. “We are excited to be acquiring a uniquely positioned cosmetics brand with true talent well known for engaging consumers across prestige channels and in the digital media space. Smashbox fits perfectly within our DNA, and we look forward to continuing to delight our consumers together.”

The Estée Lauder Companies will collaborate with the Smashbox organization to develop a comprehensive integration plan to transition Smashbox into The Estee Lauder Companies’ family after closing. Dean Factor, co-founder and Chief Executive Officer, Davis Factor, co-founder, Chief Creative Office and celebrity photographer, and Budd Taylor, President, will each play key roles with respect to these activities and the continued success of Smashbox. Smashbox will continue operating out of its Los Angeles, California office.

The forward-looking statements in this press release, including those in the quoted remarks and those relating to the expectations for closing the acquisition, the impact on the Company’s financial results and the benefits of the acquisition, 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, actions by retailers, suppliers and consumers, competition, the Company’s ability to successfully integrate the acquired business and/or implement its long-term strategic plan, and those described in the Company’s annual report on Form 10-K for the year ended June 30, 2009.

The Estée Lauder Companies’ Breast Cancer Awareness Campaign announces creation of the “World Pink Mosaic”. Simply follow THIS LINK  sign in, upload your photo, and join all others who survived breast cancer, touched by it, or support the Breast Cancer Awareness Campaign!

Building on the success of its first comprehensive digital marketing effort in 2008, people from around the world can submit their photo into this virtual mosaic as a simple means of donning a virtual pink ribbon and lending their participation and support to this global cause. Participants can distinguish themselves within the mosaic as either “supporter,” “survivor” or one “touched” by this disease, through photo frames in different shades of pink or white. As submissions are uploaded, they become part of a virtual tapestry that will take the shape of a giant Pink Ribbon. Individuals can, in turn, share their participation with friends and family by posting it to their social networking profiles, sending a link to Twitter or emailing it.The Estée Lauder Companies’ Breast Cancer Awareness Campaign’s is launching an unprecedented “World Pink Mosaic” on October 1, 2009 – the centerpiece of its 2009 global online effort – to kick off Breast Cancer Awareness Month. In keeping with the theme of the Company’s Breast Cancer Awareness Campaign: “World Pink. World Without Breast Cancer.” the Company is planning to create the world’s largest online photo mosaic in the shape of a Pink Ribbon, with participants from around the world sharing their support for breast health and the desire for a world without breast cancer. The online campaign will reach an estimated 200 million people worldwide.

Mrs. Evelyn H. Lauder, Senior Corporate Vice President of The Estée Lauder Companies and Founder and Chairman of The Breast Cancer Research Foundation stated, “I’m thrilled that we will be extending The Estée Lauder Companies’ Breast Cancer Awareness Campaign to new lengths this October by reaching millions of women and men worldwide with the lifesaving message of the importance of breast health and early detection through the World Pink Mosaic in the shape of the ubiquitous Pink Ribbon. The Estée Lauder Companies’ Breast Cancer Awareness Campaign has now distributed more than 100 million Pink Ribbons and this online initiative allows us to reach people on every corner of the earth. Join Us! Knowledge is power and early detection saves lives.”

The World Pink Mosaic will be accessible through multiple locations on the web, including The Breast Cancer Research Foundation’s official website, Brickfish.com, the social media platform provider of the campaign, and 15 Estée Lauder Companies brands’ websites (a complete list is below).

Banner ads calling attention to the World Pink Mosaic are expected to deliver upwards of 200 million impressions, running across a range of publisher sites, ad networks, mobile networks and social networking sites.

The Estée Lauder Companies’ 2009 Online Breast Cancer Awareness Campaign is being made possible through the generous support of several key online media and agency partners: Brickfish, Tender Creative, phd Media, Attention! Social Media Marketing and Range Online Media. In addition, numerous online media sites, and networks donated advertising inventory to help support the cause and drive World Pink Mosaic participation.

The following Estée Lauder Companies Inc. brand websites will be hosting the 2009 World Pink Mosaic:

www.aveda.com
www.bobbibrowncosmetics.com
www.bumbleandbumble.com
www.clinique.com
www.darphin.com
www.dknyfragrances.com
www.donnakaranbeauty.com
www.esteelauder.com
www.jomalone.com
www.labseries.com
www.lamer.com
www.ojon.com
www.prescriptives.com
www.seanjohnfragrances.com

It’s Breast Cancer Awareness month aka BCA and the Estée Lauder Companies has many of your favorite beauty products designed especially to raise funds for the Estée Lauder Companies’ Breast Cancer Research Fund. Last month during my visit to New York City during Fashion Week Spring 2010 I was given an incredible opportunity to participate in an Estée Lauder special Breast Cancer Awareness event. Listening to Evelyn Lauder’s speech and the rest of the Estée Lauder team I can’t tell you enough how passionate they are about the Breast Cancer cause!!

Here are highlights of some of the people involved in the Estée Lauder Breast Cancer Awareness Campaign and And Fundraising, and the beauty products you can purchase where portions of their proceeds go towards the Breast Cancer Research Foundation.

Actress Elizabeth Hurley and Evelyn Lauder:

From Left: Steven Plofker, Elizabeth Hurley, Elton John, Evelyn Lauder, and Bobbi Brown

From left: Arun Nayar, Elizabeth Hurley, Elton John, and Evelyn Lauder

Elizabeth Hurley and Marisa Acocella, Bloomingdale

Elizabeth Hurley pretty in a pink top

The Products:

Aveda hand relief hand cream

Bobbi Brown Pink Ribbon Collection Glitter Lip Balm and Creamy Lip color

Darphin Paris Arovita C

Darphin Paric Arovita C

Bumble and Bumble Bb Classic Hairspray laque

Clinique Dramatically Different Moisurizing Lotion

Clinique great lips, great cause: Long Last Glosswear SPF 15 in air kiss, kissyfit, and whispar

DKNY Be Delicious fresh blossom

Donna Karan Cashmere Mist

Estée Lauder Adnanced Night repair Synchronized Recovery Complex

Estée Lauder Beautiful perfume

Estée Lauder Elizabeth Hurley Lip design Collection

Estée Lauder Evelyn Lauder Lip design Collection

Jo Malone Red Roses Cologne

La Mer Moisturizing Cream

Lab Series Skincare For Men Daily Moisure Defenze Lotion SPF15 Treat

Ojon Hair Revitlizing Mist

Origins Sensory Therapy

Prescriptives PX Pink Ribbon Palette For Eyes And Cheeks

I Am King Sean John cologne

Estée Lauder Pink Ribbon Pin

Estée Lauder Mirror