NEW YORK, Sept. 25 /PRNewswire/ -- The Estee Lauder Companies Inc.
(NYSE: EL) announced today that it has signed an agreement to acquire 100% of
California-based Sassaby, Inc., owner of the fast-growing color cosmetics
brand jane, targeted to the growing young consumer market and sold in more
than 9,000 outlets throughout the United States.
    The transaction is subject to certain notices and waiting periods such as
Hart-Scott-Rodino and is expected to be completed by the end of October.
Terms of the transaction are not disclosed.
    Founded in 1994, jane has become -- in three years -- one of the top ten
color cosmetics brands in its distribution in the U.S., with a complete line
of products in the face, lip, eye and nail categories.  The brand is sold in
all 50 states in major outlets including Wal-Mart, Target, K-Mart and major
drug chains such as Rite Aid, Eckerds, American Drug and Longs Drug.  Its
unique market position as value priced, quality and fun has captured a loyal
following among the growing young consumer market in the U.S. which is
estimated to be 55 million people today, expected to grow at a rate of 13%
over the next ten years.  jane's unique marketing and communications programs
specifically appeal to young consumers, using modern media outlets, edgy
advertisements, and unique in-store displays which predominate in the young
consumer section of retail outlets.
    Commenting on the acquisition, Leonard A. Lauder, Chairman and Chief
Executive Officer, The Estee Lauder Companies Inc., said, "We are pleased to
add jane to our growing portfolio of highly focused, distinctive brands.  It
clearly meets our criteria for brands we acquire, namely a unique,
complementary market position, rapid sales growth, long-term worldwide
potential and first-rate entrepreneurial management.  Even more importantly,
it will give us added appeal to the very exciting and growing young consumer
market.  We have already seen the potential of this consumer group, with
Clinique, Origins, MAC and most recently with our highly successful 'tommy'
and 'tommy girl' fragrances.  With jane, we will have another quality brand at
a different price point and distribution channel to attract this growing
consumer group.
    "We are particularly pleased to welcome jane's excellent management team
to the Estee Lauder Companies.  Led by Howard Katkov and Don Pettit, they
bring years of industry experience as well as their impressive record of
success with jane.  We look forward to working with their team to maintain
jane's unique identity which has been critical to its success."
    Howard Katkov, President of Sassaby, Inc. said, "As part of the Estee
Lauder Companies we will benefit enormously from their huge international
presence and their well known technological expertise.  This will allow us to
pursue our growth strategies, both in terms of expanding into international
markets and accelerating and increasing our new product development."
    Sassaby, Inc., which is headquartered in Cardiff by the Sea, California,
maintains marketing and distribution operations in Hunt Valley, Maryland.
    The Estee Lauder Companies Inc. is one of the world's leading
manufacturers and marketers of prestige skin care, makeup and fragrance
products.  Its brands are sold in more than 100 countries and territories
under well-recognized names including Estee Lauder, Clinique, Aramis,
Prescriptives, Origins, MAC, Bobbi Brown essentials and Tommy Hilfiger.  For
the fiscal year ended June 30, 1997, the Estee Lauder Companies had annual
revenues of $3.4 billion and net earnings of $198 million.
    Estee Lauder press releases are available at no charge through Estee
Lauder Companies News On-Call fax service.  For a menu of Estee Lauder press
releases or to retrieve a specific release, call 800-758-5804, extension
251850, or use the Internet via
http://www.prnewswire.com/cnoc/exec/menu?251850/

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