OVERSIGHT

ELC Global Operations continuously works to ensure compliance with all applicable international, national and local standards and regulations. To enhance compliance, ELC maintains an ongoing system of regular inspections, internal audits and independent third-party auditing of our Global Operations, retail stores and supply chain.

All of our major manufacturing facilities have been independently assessed and registered by Underwriters Laboratories to have Environmental and Safety Management Systems in accordance with the ISO 14001 Environmental Management System standards and The Estée Lauder Companies' own occupational safety and health standards. Additionally, the environmental health and safety program has been expanded to include visits to our retail stores to ensure their compliance with all regulations, thereby assuring our employees a safe workplace.

For more information on ISO 14001, please visit http://www.iso.org/

For more information on The Estée Lauder Companies' environmental initiatives, please go to www.elcompanies.com/citizenship/environmental_health_safety.asp

UPCOMING CHALLENGES
REACH is the Regulation for Registration, Evaluation, Authorization and Restriction of Chemicals. It entered into force on June 1, 2007, to streamline and improve the former legislative framework on chemicals of the European Union (EU). REACH places greater responsibility on industry to manage the risks that chemicals may pose to health and the environment. http://reach.jrc.it/about_reach_en.htm

At The Estée Lauder Companies, we strongly believe that the health of our consumers and the environment is our top priority, and we are actively participating in the industry effort for the preparation and implementation of REACH.

As a global Company, we adhere to the product testing and safety regulations of the countries in which our products are produced and sold. We continue to cooperate with the efforts of the EU to develop effective tests for ingredient and product toxicity.

NANOTECHNOLOGY

The Estée Lauder Companies continues to develop products that maximize the use of innovation and the technology available, but not without regard for the safety of our consumers.

There is a growing interest in the use of nanotechnology to enhance the benefits and performance of personal care products. Consumers should understand that this is a broadly used term that has a wide range of applications. The nanoparticles used in biomedical science, where the bulk of this cuttingedge technology is used, are of a much different caliber than the micronized particles commonly used in cosmetics. Substantial research is still being done to assess the use of these particles in personal care products.

For more information on The Estée Lauder Companies' product safety initiatives, please go to www.elcompanies.com/citizenship/product_safety_testing.asp