Bare Escentuals, Inc. Signs Letter of Intent to Purchase European Distributor.

SAN FRANCISCO -- Bare Escentuals, Inc. (Nasdaq:BARE) today announced it has signed a non-binding letter of intent to purchase U.K.-based Cosmeceuticals Limited, which distributes Bare Escentuals' bareMinerals, MD Formulations and MD Forte brands to the European cosmetics market. Terms of the transaction were not disclosed.

Consistent with Bare Escentuals' goal of distributing directly in key international markets, the acquisition positions Bare Escentuals to control its existing distribution in the U.K. to QVC U.K. as well as to over 1,500 spa accounts. Longer term, the Company expects that the acquisition will allow Bare Escentuals to enter new sales channels in the U.K. including infomercials, web/catalog and premium wholesale, and provide an opportunity to more efficiently expand its presence in the broader European market.

Cosmeceuticals Limited will divest assets not related to the distribution of Bare Escentuals' brands prior to completion of the transaction.

The parties intend to complete the transaction on or around April 2, 2007, subject to due diligence and approval by Bare Escentuals' Board of Directors, which would allow for product sales and shipments to begin during Bare Escentuals' second fiscal quarter.

About Bare Escentuals, Inc.

Bare Escentuals, Inc. is one of the fastest growing prestige cosmetic companies in the United States and a leader in mineral-based cosmetics. The Company utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market and sell cosmetics, skin care, and body care products under its i.d. bareMinerals, i.d., RareMinerals and namesake Bare Escentuals brands, and professional skin care products under its md formulations brand through infomercials, home shopping television, specialty beauty retailers, company-owned boutiques, spas and salons, and online shopping. (BARE-F)

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives and future operations and estimates of our financial results and capital expenditures for future periods. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. Factors that could affect future performance include, but are not limited to our dependence on sales of our mineral-based foundation; our dependence on significant customers with whom we do not have long-term purchase commitments; the highly competitive nature of the beauty industry, and the adverse consequences if we are unable to compete effectively; the possibility that we might not manage our growth effectively or sustain our growth or profitability; the possibility that we might not be able to retain key executives and other personnel and recruit additional executives and personnel; the possibility that we might not be able to open and operate new boutiques successfully; our dependence on our suppliers to produce and deliver our products in a timely and cost-effective manner; the possibility that our media spending might not result in increased net sales or generate the levels of product and brand name awareness we desire; the possibility that we may be unable to repay or refinance our indebtedness, which was $339.3 million as of December 31, 2006; changes in general economic or market conditions; and other risk factors detailed in our Quarterly Report on Form 10-Q for the quarterly period ended October 1, 2006, which is available at the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.