NEW YORK--(BUSINESS WIRE)--May 24, 2005--The Estee Lauder Companies Inc. (NYSE: EL) announced that it has agreed to purchase 1,872,000 shares of Class A Common Stock from Ronald S. Lauder, a member of the Board of Directors and Chairman, Clinique Laboratories, Inc. The purchase price is $39.25 per share (the closing price of the Class A Common Stock on May 24, 2005). The purchase, which was approved by the Company's independent directors, is consistent with the Company's previously announced share repurchase program. The closing is set for May 27, 2005. After the sale to the Company and the sale to William P. Lauder discussed below, Ronald S. Lauder will hold directly 16,043,019 shares of Class B Common Stock and 57,553 shares of Class A Common Stock. He is also the beneficiary of certain trusts that own indirectly additional shares of Class B Common Stock and beneficially owns additional shares of Class A Common Stock underlying outstanding stock options.

In a separate transaction, William P. Lauder, President and Chief Executive Officer of the Company, has agreed to purchase from Ronald S. Lauder 128,000 shares of Class B Common Stock at $39.25 per share. The closing is set for May 27, 2005. Upon completion of his purchase, William P. Lauder will own directly, 2,392,038 shares of Class B Common Stock and 1,168,240 shares of Class A Common Stock. He also owns a number of shares of Class A Common Stock and Class B Common Stock indirectly (including shares underlying outstanding stock options).

Upon completion of the transactions, the Lauder family will own directly or indirectly shares of Common Stock having approximately 88.2% of the outstanding voting power of the Common Stock.

The Estee 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 Estee Lauder, Clinique, Aramis, Prescriptives, Origins, M--A--C, Bobbi Brown, Tommy Hilfiger, La Mer, Donna Karan, Aveda, Stila, Jo Malone, Bumble and bumble, Darphin, Michael Kors, Rodan + Fields, American Beauty, Flirt!, Good Skin(TM) and Donald Trump, The Fragrance.

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

    CONTACT: Investor Relations:
             Dennis D'Andrea, 212-572-4384
             or
             Media Relations:
             Sally Susman, 212-572-4430

    SOURCE: The Estee Lauder Companies Inc.