Coty Inc. Reports 2006 Fiscal Year Record-Breaking Sales

NEW YORK, Oct. 6 /PRNewswire/ -- Coty Inc. announced today that 2006 fiscal year sales were $2.9 billion, up 38 percent from the previous year. In the five years since Bernd Beetz was named chief executive officer, Coty Inc. has doubled in size. Today, Coty Inc. is the largest fragrance company in the world and an emerging leader in the global beauty industry.

"By fueling creativity, our truly cosmopolitan management team continues to develop relevant products that drive our fragrance and beauty lines," said Beetz. "Specifically, we have created a formula to develop and market high- caliber products faster than anyone else."

This accelerated performance stems from a combination of organic internal growth, acquisitions, line extensions, new licenses and consistent top-line growth. Moreover, Coty Inc. has a high rate of successful product launches, reinforcing the company's reputation globally as an innovator.

With fragrance as the largest segment of its business, Coty Inc. is the No. 3 prestige fragrance company in the U.S. and is quickly gaining market share globally with blockbuster fragrance lines, including Calvin Klein, Jennifer Lopez and Sarah Jessica Parker. Additionally, the company's color cosmetic business is the No. 2 in Europe led by Rimmel, which is experiencing double-digit growth.

Going forward, Coty Inc. aims to be a top-five beauty company globally. Currently the eighth largest beauty company in fragrances, color, cosmetics, skin care, sun care and toiletries, Coty Inc. is positioned for growth by segmenting its portfolio into designer, celebrity and lifestyle brands, while continuing to work on distribution, media and innovation. The company's recent alliance with Kose Corporation to develop the Rimmel color cosmetics brand in Japan establishes a platform for successful expansion in Asia.

About Coty Inc.

Coty Inc. was created in Paris in 1904 by Francois Coty who is credited with founding the modern fragrance industry. Coty Inc. delivers innovative products to consumers in 91 markets worldwide.

Today, Coty Inc. is the world's largest fragrance company and a recognized leader in global beauty with annual net sales of $2.9 billion. Driven by an entrepreneurial spirit, passion, innovation and creativity, Coty Inc. has developed an unrivaled portfolio of over 35 designer, celebrity and lifestyle brands.

The Coty Prestige brand portfolio is distributed in prestige and ultra- prestige stores and includes designer brands -- Calvin Klein, Cerruti, Chloe, Jette Joop, Jil Sander, JOOP!, Kenneth Cole, Marc Jacobs, Nikos, Vera Wang and Vivienne Westwood; celebrity brands -- Desperate Housewives, Jennifer Lopez and Sarah Jessica Parker; and lifestyle brands -- Baby Phat, Chopard, Davidoff, Lancaster, and Nautica.

The Coty Beauty brand portfolio is more widely distributed and includes designer brand -- Pierre Cardin*; celebrity brands -- Celine Dion, David and Victoria Beckham, Isabella Rossellini, Kylie Minogue, mary-kateandashley and Shania Twain; and lifestyle brands -- adidas, Aspen, Astor, Calgon, Chupa Chups, Esprit, Exclamation, Jovan, Miss Sixty, Miss Sporty, Rimmel, Stetson, the healing garden and Vanilla Fields.

For additional information about Coty Inc., please visit http://www.coty.com/ .

*European license only.