NEW YORK--(BUSINESS WIRE)--Sept. 22, 2006--Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, and BeautyBank, a division of The Estee Lauder Companies Inc. (NYSE:EL), announced today that they have signed an exclusive agreement to create fragrances and related products to be sold in Coach US retail stores.

Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, "I'm extremely pleased to announce this agreement with BeautyBank, which will allow Coach to enter an entirely new and complementary product category. Over time, we have noted our consumers' desire to give us trial in new categories, and we believe that fragrance will provide additional reasons for our customers to visit and purchase in Coach stores. Importantly, we're delighted to be working with such an outstanding group with a long history of success in this arena."

"Coach is an outstanding brand," stated William P. Lauder, President and Chief Executive Officer, The Estee Lauder Companies. "We are thrilled to work with a talented management team in an endeavor which enhances our corporate strategy to associate ourselves with the best upscale brands in the world."

Jane Hudis, President, BeautyBank, agreed, adding that "Coach is one of the hottest, most inventive brands today. This is a great creative collaboration between two innovative teams and we're excited to be working with such a dynamic company."

The first fragrance, set to launch in Spring 2007, will be the vision of Coach creative head Reed Krakoff working in close collaboration with Hudis and the BeautyBank creative team. "I wanted to create a fragrance that embodies the many personalities of the Coach woman," commented Krakoff, President, Executive Creative Director of Coach. "Together with BeautyBank, we have developed a fragrance that is fresh and sophisticated."

For more than sixty-five years, Coach has been a classic part of the landscape of American design. Coach began with twelve eloquently simple bag designs with classic, well-balanced proportions. Over the years, they have expanded with each collection representing a unique synthesis of magic and logic that stands for quality, authenticity, value and a truly aspirational, distinctive American style.

BeautyBank is the entrepreneurial think tank division of The Estee Lauder Companies whose mission is to develop brands for consumers shopping outside of the traditional department store channel on a worldwide basis. BeautyBank brands include American Beauty, FLIRT!, Good Skin, Grassroots and Daisy Fuentes Beauty.

The Estee Lauder Companies Inc. is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company's products are sold in over 130 countries and territories under well-recognized brand names, including Estee Lauder, Aramis, Clinique, Prescriptives, Origins, MAC, Bobbi Brown, Tommy Hilfiger, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, Rodan + Fields, American Beauty, Flirt!, Good Skin(TM), Donald Trump the Fragrance, Grassroots, Sean John, Missoni and Daisy Fuentes.

Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leather goods, business cases, weekend and travel accessories, footwear, watches, outerwear, sun wear, and related accessories.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Coach and The Estee Lauder Companies intend forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause the two companies' actual results to differ materially from those anticipated by the forward-looking statements. Future results may differ materially from management's current expectations, based upon risks and uncertainties such as expected economic trends, the ability to anticipate consumer preferences, the ability to control costs, etc. For complete lists of risk factors, please refer to Coach's latest Annual Report on Form 10-K and the "Forward-Looking Information" section of Item 7 of The Estee Lauder Companies' annual report on Form 10-K, each of which is expressly incorporated herein by reference, and other factors as may periodically be described in the two companies' filings with the SEC.

CONTACT: For BeautyBank/The Estee Lauder Companies Media: Kathleen Pierce, 212-277-2278 or Investors: Dennis D'Andrea, 212-572-4384 or For Coach Media: Raina Penchansky, 212-615-2167 or Investors: Andrea Shaw Resnick, 212-629-2618 SOURCE: The Estee Lauder Companies Inc.