Coty Inc. Opens State-of-the-Art Cosmetics Manufacturing Plant in Pudong, China.

NEW YORK--(BUSINESS WIRE)--Oct. 22, 1998--

Television Celebrity Yue-Sai Kan and Coty Inc. team to create the

first globally marketed Chinese cosmetics brand

Coty Inc., one of the world's leading manufacturers and marketers of fragrances and cosmetics, announced the opening of a state-of-the-art fragrance and cosmetics manufacturing facility located in Pudong, an industrial suburb of Shanghai.

The plant will manufacture Yue-Sai brand cosmetics, as well as other Coty brands, to support Coty Inc.'s worldwide expansion. Yue-Sai Kan Cosmetics Ltd. (USA), LP, Coty's joint venture with entrepreneur and award-winning television journalist Yue-Sai Kan, one of China's most famous personalities, will manufacture the first Chinese cosmetics brand that will eventually be marketed on a global basis.

"This plant signifies a major development in Coty's long term strategy to lead the global mass fragrance and cosmetics industry," comments Peter Harf, C EO of Coty Inc. "With the opening of this facility Coty is poised to gain an even greater market share in China, introduce successful regional brands, like Yue-Sai, into new geographic areas and help Coty take the lead in emerging economies throughout Asia and the world."

The $20 million Pudong plant continues Coty's commitment to Asia, with 300,000 square feet, a capacity of 60 million units per year, and 144 employees. Yue-Sai Kan's celebrity status and 95 percent brand recognition enable Coty to enter the Chinese marketplace with the leading prestige brand in the People's Republic of China and provide access to the largest and one of the fastest growing consumer markets in the world. The Yue-Sai brand is the number one cosmetics brand in China in department store sales, overall market share and consumer preference.

"Coty's history of innovation and world-class marketing skill made it the natural choice for a partner in the joint venture. The opening of the Pudong plant demonstrates its commitment to China and Yue-Sai Kan as the first global Chinese cosmetics brand," adds Yue-Sai Kan.

The Pudong facility will produce well known and leading edge Coty brands that are available around the world, including color cosmetics, high-tech hydrating moisturizers, skin toners, hair mascara and long lasting lipsticks. To ensure Coty's high standard of quality and seamless worldwide delivery, the new plant utilizes the same equipment, manufacturing processes, training programs, research and development facilities and distribution systems that define Coty's operations throughout the world.

Yue-Sai Kan Cosmetics was formed in 1992 by Yue-Sai Kan, often referred to as the "Barbara Walters of China," to provide Chinese women with a brand of cosmetics designed especially for their skin tones. The Company offers Chinese consumers hundreds of different sun care, skin care and fragrance products, over 200 new products introduced this year alone. Its products are sold in over 600 department stores throughout the country. The Company operates out of 18 regional offices with 1200 employees.

Coty was founded by Francois Coty in Paris in 1905 when he established the modern fragrance industry. For almost 100 years, Coty has developed hundreds of products that are sold around the world. In 1996, Coty Inc. was made a separate unit of its parent company, Joh. A. Benckiser GmbH, the $3.3 billion consumer products giant, to operate the worldwide fragrance and cosmetics businesses. Today, Coty Inc. is a $1.6 billion global company headquartered in New York City with operations in 28 countries and sales in over 80 markets. It is one of the world's largest manufacturers of women's and men's fragrances, color cosmetics, and skin treatment products in the mass and prestige markets. Leading Coty brands include Davidoff Cool Water, The Healing Garden and Calgon Bath and Body and adidas.