Dear Stakeholders,

We are proud to present The Estée Lauder Companies' first Corporate Social Responsibility Report. We are one of the world's premier marketers and manufacturers of prestige beauty products; our products are sourced and sold in the four corners of this world. Since Estée and Joseph Lauder founded this Company in 1946, we have focused on Bringing the Best to Everyone We Touch. We take our responsibilities to our consumers, employees, shareholders and our planet seriously. We strive to be good corporate-and global-citizens.

Sustainability crosses many avenues in our Company. We strive to optimize our use of natural resources and reduce our carbon footprint. We assess our ingredient sourcing and safety standards policies regularly. Our commitment to the communities in which we work and the health and wellness of our consumers and employees is engrained in our corporate culture. Among the information highlighted in this report is our commitment to the safety and health of our consumers and employees, bio-diversity, energy conservation and good corporate ethics.

• We installed one of the largest non-utility solar energy systems in the United States.
• We are a founding member of the Sustainable Packaging Coalition. In fact, our Origins brand developed a line of packaging that is manufactured, printed and folded using 100% renewable energy resources.
• In Fiscal Year 2006, we reduced our total waste generated and disposal costs.
• We recently implemented an array of smart transportation initiatives to combine shipments and reduce the amount of outgoing materials shipped via air freight.
• Our Last Resort Program distributes excess materials and personal care products to people in need.

We are focused on the need for us to do our part to ensure a healthy future for our consumers, our employees and the communities in which we live and work-and we are committed to doing our part.

Sincerely,

William P. Lauder
President and
Chief Executive Officer