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L'Oreal USA Acquires Beauty Alliance LLC

Introduction - L'Oreal USA Acquires Beauty Alliance LLC

Forms New Business Unit Of Its Professional Products Division

L'Oreal Hair Color Dye L'Oreal Hair Color Dye

New York, NY (April 12, 2007) – L’Oréal USA, Inc., a subsidiary of L’Oréal S.A., the world’s largest beauty company, has acquired 100% of Beauty Alliance L.L.C., in which it had taken a 30% minority interest last July.

Beauty Alliance is one of the largest and fastest growing professional salon distributorships in the U.S. selling to 125,000 salons through 870 Distributor Sales Consultants and through 400 professional outlets.

Beauty Alliance, a privately-held company headquartered in Clearwater, Florida, will operate as a separate unit within L’Oréal’s Professional Products Division.

“The acquisition of Beauty Alliance allows L’Oréal USA to further strengthen our position in a market which is strategic for us,” said Laurent Attal, President and CEO of L’Oréal USA.

“We have a large and vibrant salon business in the United States. The consolidation that has taken place in parts of the U.S. distribution system makes this an appropriate time for L’Oréal to take a greater interest in the distribution process for the benefit of all stakeholders in the professional hair salon industry. This is a strategic investment in the future of salon professionals.”

“After studying the needs and buying habits of professional hairdressers for a very long time, we have determined that the best way to develop our business in the United States is to take this interest in the distribution process in certain territories,” said David Craggs, President of L’Oréal USA’s Professional Products Division.

L'Oreal Lipcolors L'Oreal Lip Colors

“In doing this we can meet the needs of both small and large salon owners by providing them with unsurpassed service and education through our extensive store and sales consultant networks. The economic equation associated with vertical integration will also allow us to increase our investments, and the acquisition of Beauty Alliance is one way to achieve that goal.”

Beauty Alliance will continue to be led by Jamie Cheek, its current President. “We are very enthusiastic about the growth opportunities this business combination offers both our companies,” noted Mr. Cheek. “L’Oréal and Beauty Alliance share a passion for the professional hairdresser business, and L’Oréal recognizes that we are the premier distributor in the country.

To that end, Beauty Alliance will continue as a full service distributor offering a broad range of L’Oréal and other high quality brands both through the distributor sales consultants and the store network.”

More About L'Oreal

L'Oréal USA, based in New York, NY, is a subsidiary of L'Oréal, headquartered in Paris, France. L'Oréal develops and manufactures haircare, haircolor, skincare, color cosmetics and fragrances for the consumer and professional markets.

Established in 1909 by visionary scientist, Eugene Schueller, L'Oréal is committed to: progressive research and development, state-of-the-art manufacturing, quality products, and making beauty accessible to everyone around the world.

L'Oreal Nail Polish L'Oreal Nail Polish

L'Oreal Acquisitions

Over the years, L’Oréal has experienced consistent growth with existing brands as well as strategic acquisitions.

The acquisitions - like Maybelline in 1996, SoftSheen in 1998, Matrix, Kiehl's Since 1851 and Carson in 2000, SkinCeuticals in 2005, essie Cosmetics in 2010, Clarisonic in 2011 and Urban Decay in 2012 - allow us to penetrate new markets rapidly, and reposition the brand essence of these products to gain new international audiences.

Through a diverse brand portfolio and unparalleled marketing expertise, growth is also achieved by expanding our portfolio to address the needs of the new target audiences, from the very young, to more mature consumers, and everyone in between.

Breaking down the barriers to beauty by making our products accessible around the world, L'Oréal USA embraces the future with the same passion and commitment that has characterized the group for over a century.

Product Brands:

Cacharel, Clarisonic, Dermablend, Diesel, Drakkar Noir, essie Cosmetics, Garnier, Giorgio Armani Parfums and Cosmetics, Kérastase, Kiehl's Since 1851, La Roche-Posay, Lancôme, L'Oréal Paris, L'Oréal Professionnel, Maison Martin Margiela , Matrix, Maybelline New York, Mizani, Paloma Picasso, Pureology, Ralph Lauren Fragrances, Redken 5th Avenue NYC, Roger & Gallet, Shu Uemura Art of Hair, SkinCeuticals, SoftSheen-Carson, Stella McCartney, The Body Shop, Urban Decay, Vichy, Viktor&Rolf, YSL Beauté

US Headquarters:

L'Oréal USA, Inc.

575 Fifth Avenue

New York, NY 10017 All product division headquarters and operation departments are located in New York City.   In 2009, L’Oréal USA opened a second headquarters in Berkeley Heights, New Jersey.

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