The Estée Lauder Companies Inc. (ticker: EL, exchange: New York Stock Exchange (.N))
News Release -
Estee Lauder Companies Announces Stock Transactions
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
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
Sally Susman, 212-572-4430
SOURCE: The Estee Lauder Companies Inc.