Worldwide Net Sales For Second Quarter Up 11% on Constant Currency Basis;
                             Net Earnings Up 22%

    NEW YORK, Jan. 27 /PRNewswire/ -- The Estee Lauder Companies Inc.
(NYSE: EL) today reported net sales for the second quarter ended December 31,
1997 of $1.0 billion, the first one billion dollar sales quarter in the
Company's history.  The record net sales for the current quarter represents a
6% increase from $941.5 million in the prior year quarter.  Excluding the
impact of foreign currency translation, net sales increased 11% during the
quarter.
    The Company reported record net earnings of $85.3 million for the quarter,
up 22% from $69.9 million in the same prior year period.  Basic earnings per
common share for the fiscal 1998 second quarter rose 24% to $.67 from $.54 in
the comparable prior year period, and diluted earnings per common share
increased 22% to $.66 from $.54 reported in the same period a year ago.
    Leonard A. Lauder, Chairman and Chief Executive Officer, said, "I am
thrilled that we achieved our first one billion dollar sales quarter, a new
milestone for our Company which helped fuel our strong earnings growth.  Each
of our brands experienced strong retail sales this holiday season,
particularly in the prestige fragrance category where we had the top four
fragrances and six of the top ten in the U.S."
    Mr. Lauder continued, "Regarding our recent acquisitions, we have begun to
effectively integrate our new brands jane and Aveda into the Company and are
very excited about their growth prospects in the U.S. and international
markets."
    In the Americas region, the Company reported an 11% increase in net sales,
to $584.6 million, versus the prior year quarter.  The increase was primarily
due to significantly higher fragrance sales, including the current year
launches of Lauder Pleasures For Men and Clinique Happy and the continuing
strong growth of "tommy" and "tommy girl," as well as the inclusion of sales
from jane and Aveda, both of which were acquired in the current quarter.
These increases were partially offset by lower sales in Canada.  Operating
income in the region increased as a result of the higher sales and the
positive impact of operational efficiencies.
    In Europe, the Middle East & Africa, net sales increased 14% over the
prior year quarter excluding the impact of foreign currency rate changes.  On
a local currency basis, most markets delivered strong double-digit sales
growth, driven by strong performances in the United Kingdom, Italy, Spain, and
the travel retail business.  Including the impact of the strong U.S. dollar
against European currencies, the Company posted a 6% increase in reported net
sales over the prior year quarter to $283.2 million.  Second quarter operating
profitability increased compared to the prior year quarter principally due to
improved results in the United Kingdom, France, Italy and the travel retail
business.
    On a local currency basis, Asia/Pacific net sales increased 2% versus the
prior year quarter.  Double-digit sales increases in most markets were
partially offset by lower sales in Japan, Hong Kong and Taiwan because of
difficult economic and retail environments.  Due to the recent further
weakening of Asian currencies against the U.S. dollar, reported net sales in
the region decreased 11% to $133.1 million.  Operating profit increased on a
local currency basis primarily due to higher operating income in Japan,
reflecting savings in operating expenses.  However, reported operating income
in this region decreased modestly.
    From a product category standpoint, the strongest sales increases were
generated in the fragrance category, where second quarter net sales increased
23% excluding the impact of foreign currency translation.  Reported fragrance
sales grew 19% over the prior year quarter to $351.6 million, fueled by the
highly successful current year launches of Lauder Pleasures For Men and
Clinique Happy, the ongoing successful rollout of "tommy girl" and continued
strong worldwide sales of "tommy." Sales in the makeup category were up 7%
excluding the impact of foreign currency translation.  Reported makeup sales
increased 3% during the quarter to $330.1 million, due to the recent
introduction of new products such as Clinique's Superbalanced Makeup and
Quickliner For Lips and Estee Lauder's Minute Makeup and Blush All Day.  Net
sales of skin care products for the current quarter increased 1% excluding the
impact of foreign currency translation.  Reported skin care product sales
decreased 4% to $308.2 million, due to the adverse impact of currency
translation given the relative concentration of skin care sales in the Asian
and European markets, as well as difficult comparisons with certain prior year
launches.  Sales of hair care products increased to $11.0 million, reflecting
the inclusion of the Aveda product line, the majority of which is hair care
products.
    For the six months ended December 31, 1997, the Company reported net sales
of $1.9 billion, up 5% from $1.8 billion in the comparable prior year period.
Excluding the impact of foreign currency translation, net sales would have
increased 9% during the period.  Net earnings for the six month period
increased to $147.1 million, up 20% over the $122.6 million reported in the
same period last year.  Basic earnings per common share for the six months
ended December 31, 1997 rose 21% to $1.14 from $.94 in the comparable prior
year period, and diluted earnings per common share increased 20% to $1.13 from
$.94 reported in the same period a year ago.
    The Estee Lauder Companies Inc. is one of the world's leading
manufacturers and marketers of quality skin care, makeup and fragrance
products.  The Company's products are sold in over 100 countries and
territories under well-recognized brand names, including Estee Lauder,
Clinique, Aramis, Prescriptives, Origins, M-A-C, Bobbi Brown essentials, Tommy
Hilfiger, jane and Aveda.
    The forward-looking statements in this press release involve risks and
uncertainties some of which are detailed in Exhibit 99.1 to the Company's
report on Form 10-Q for the quarter ended December 31, 1996, previously filed
with the SEC.

                       THE ESTEE LAUDER COMPANIES INC.

                       SUMMARY OF CONSOLIDATED RESULTS
                     (in millions, except per share data)

                           Three Months Ended          Six Months Ended
                              December 31                 December 3l
                            1997        1996          1997          1996


    Net Sales             $1,000.9        $941.5     $1,901.5      $1,814.3

    Cost of Sales            229.3         217.6        433.7         417.4
    Gross Profit             771.6         723.9      1,467.8       1,396.9


    Selling, general and
    administrative expenses:
     Selling, general
    and administrative       618.1         589.0      1,200.3       1,152.7
     Related party royalties   8.6           9.0         16.6          17.0
    Total                    626.7         598.0      1,216.9       l,169.7

    Operating Income         144.9         125.9        250.9         227.2

    Interest (expense)
     income, net             (0.1)           0.1          0.9         (1.1)
    Earnings before
     Income Taxes and
     Minority Interest       144.8         126.0        251.8         226.1

    Provision for income
     taxes                    57.9          50.5        100.7          95.0
    Minority interest:       (1.6)         (5.6)        (4.0)         (8.5)
    Net Earnings              85.3          69.9        147.1         122.6

    Preferred stock
     dividends                 5.8           5.8         11.7          11.7
    Net Earnings Attributable
     to Common Stock         $79.5         $64.1       $135.4        $110.9

    Net earnings per
     common share (A):
      Basic                   $.67         $ .54        $1.14          $.94
      Diluted                  .66           .54         1.13           .94

    Weighted average
     common shares
     outstanding (A):
      Basic                  118.4         117.4        118.4         117.4
      Diluted                119.5         118.3        119.4         118.2

    (A)  For the periods ended December 31, 1997, the Company adopted
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per
Share." Consistent with the requirements of SFAS No. 128, net earnings per
common share and weighted average common shares outstanding for the three and
six months ended December 31, 1996, have been restated to conform with the
provisions of SFAS No. 128.

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