- Declares Quarterly Dividend -

    NEW YORK, April 29 /PRNewswire/ -- The Estee Lauder Companies Inc.
(NYSE: EL) today reported net sales for the third quarter ended March 31, 1997
of $791.4 million, a 4% increase from $763.9 million in the prior-year
quarter.  Excluding the impact of foreign currency translation, net sales
increased 7% during the quarter.
    For the third quarter of fiscal 1997 the Company reported that net
earnings increased 36% to $38.3 million, from $28.2 million in the comparable
prior-year period, and net earnings per common share rose 42% to $.27 from
$.19 in the current-year quarter versus the same year-earlier period.
    Leonard A. Lauder, Chairman and Chief Executive Officer, commented, "The
Company's third quarter results reflect the worldwide strong appeal and
continuing demand for our products and the ability to generate superb results
through operating efficiency initiatives."
    Mr. Lauder added, "While retail was challenging, we viewed it as an
opportunity for us to gain market share which is an essential component of our
growth strategy.  We believe the vitality of Estee Lauder's businesses will
propel us to meet our fiscal year objectives and enjoy future success."
    In the Americas region, the Company reported a 6% increase in net sales,
to $465.0 million, versus the prior-year quarter.  Gains were attributable to
sales from new product launches across all categories, growth from existing
products, particularly "tommy" and "tommy girl," and solid performances from
M.A.C. and Bobbi Brown essentials in the United States.  These increases were
achieved despite the Company experiencing a soft overall retail environment in
the U.S. and were partially offset by lower sales in Canada.  Operating income
in this region experienced a modest decline principally because of increased
advertising and promotional expenditures incurred to support new launches and
build existing product momentum.
    In Europe, the Middle East & Africa, net sales increased 9% over the
comparable prior-year period excluding the impact of foreign currency rate
changes.  Due to the strengthening of the U.S. dollar against most European
currencies, the Company posted a 2% increase in reported net sales during the
quarter over the prior-year period to $207.6 million.  Net sales growth was
led by a strong performance in the United Kingdom, increased sales in South
Africa and Italy, as well as the inclusion of sales in the current quarter
from the Company's European joint venture.  These sales increases were
partially offset by lower sales in Germany and France resulting from a
continuing difficult economic environment in those countries.  Operating
results in the region increased significantly over the prior-year quarter
primarily due to improved operating profitability in Italy, the United
Kingdom, France, Eastern Europe and the distributor and travel retail
businesses.
    On a local currency basis, Asia/Pacific net sales grew 7% over the prior-
year quarter driven by sales increases in every market in the region, except
Hong Kong, with particularly strong sales in Korea, Australia, Thailand,
Taiwan and Singapore.  Due to the continued strength of the U.S. dollar versus
the yen, reported net sales in the region decreased 1% over the prior-year
quarter, to $118.8 million.  Operating profit in the region increased sharply
over the prior-year period primarily from higher results in Korea, Singapore,
Japan, New Zealand, Malaysia and Thailand.
    Sales in the fragrance category grew 10% over the prior-year quarter led
by strong worldwide sales of "tommy" and the continued success of "tommy girl"
in the U.S.  Fragrance growth was also fueled by the international debut of
White Linen Breeze and the European introduction of Kiton, while Estee Lauder
pleasures also generated significant sales during the third quarter despite a
difficult comparison with last year's international rollout.  Sales of makeup
products grew 8% during the third quarter, due to the success of new products
such as Clinique's Long Last Soft Shine Lipstick and Estee Lauder's Indelible
Lipstick.  Higher sales from M.A.C. and Bobbi Brown essentials products
benefited the makeup category for the current quarter.  Also contributing to
increased makeup sales were the launches of Clinique's Stay The Day Eyeshadow
and Estee Lauder's Double Wear Stay-in-Place Makeup in the current quarter,
and the continued success of Prescriptives' Virtual Skin.  Skin care product
sales decreased 3% primarily due to the adverse impact of currency translation
given the concentration of skin care sales in the Asia/Pacific region and
difficult comparisons with certain launches in the prior fiscal year.
Excluding the impact of foreign currency translation, net sales of skin care
products for the current-year quarter would have increased 1%.
Notwithstanding the difficult comparisons with prior year launches, skin care
sales growth was attributable to Clinique's Moisture On-Line and All About
Lips, and Estee Lauder's Fruition Extra and Advanced Sun Care products.
    For the nine months ended March 31, 1997, the Company reported net sales
of $2.6 billion, up 6% from $2.5 billion in the comparable prior-year period.
Excluding the impact of foreign currency translation, net sales would have
increased 9% during the nine-month period.  Net earnings for the nine-month
period increased to $160.9 million, or $1.20 per common share, up 21% over the
$133.1 million reported in the same period last year.
    The Company also announced that at the end of the current quarter it
acquired an additional equity interest in M.A.C., increasing its majority
ownership position.
    In addition, the Company declared a quarterly dividend of $.085 per share
on the Company's Class A and Class B common stock, payable on June 27, 1997 to
stockholders of record at the close of business on June 12, 1997.
    The Estee Lauder Companies Inc. is one of the world's leading
manufacturers and marketers of prestige 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. and Bobbi Brown essentials.
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 1O-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    Nine Months Ended
                                           March 31             March 31
                                       1997       1996      1997       1996

    Net Sales                         $791.4     $763.9   $2,605.7   $2,457.8
    Cost of Sales                      167.3      163.4      584.7      567.1
    Gross Profit                       624.1      600.5    2,021.0    1,890.7
    Selling, General and Administrative
     Expenses:
    Selling, General and
     Administrative                    547.5      535.4    1,700.2    1,602.4
    Related to Party Royalties           7.7        6.8       24.7       28.1
    Total                              555.2      542.2    1,724.9    1,630.5
    Operating Income                    68.9       58.3      296.1      260.2
    Interest Income, Net                 2.3        0.4        1.2        1.7
    Earnings Before Income Taxes and
     Minority Interest                  71.2       58.7      297.3      261.9
    Provision for Income Taxes          29.9       26.4      124.9      117.8
    Minority Interest                   (3.0)      (4.1)     (11.5)     (11.0)
    Net Earnings                        38.3       28.2      160.9      133.1
    Preferred Stock Dividends            5.9        5.9       17.6       51.7
    Net Earnings Attributable to Common
     Stock (a)                         $32.4      $22.3     $143.3      $81.4
    Net Earnings Per Common Share       $.27       $.19      $1.20        n/a
    Weighted Average Common Shares
     Outstanding                       119.4      118.2      119.0        n/a
    Pro Forma Net Earnings Per Share(a):
    Net Earnings                         n/a        n/a        n/a     $133.1
    Pro Forma Preferred Stock
     Dividends                           n/a        n/a        n/a       17.6
    Pro Forma Net Earnings Attributable
     to Common Stock                     n/a        n/a        n/a     $115.5
    Pro Forma Net Earnings Per Common
     Share                               n/a        n/a        n/a       $.99
    Pro Forma Weighted Average Common
     Shares Outstanding                  n/a        n/a        n/a      116.3

    (a)   As a result of a recapitalization and the issuance of common stock
in the Company's initial public offering (the "Offering") in November 1995,
net earnings per share for the nine months ended March 31, 1996, have been
computed on a pro forma basis assuming the recapitalization occurred at the
beginning of fiscal 1996, and includes the amount of shares issued by the
Company in the Offering from the date of issuance plus the effect of common
shares contingently issuable, primarily from stock options, from that same
date.  Pro forma preferred stock dividends for the nine months ended
March 31, 1996 reflect only recurring dividends on the Company's $6.50
Cumulative Redeemable Preferred Stock.

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