## FORWARD-LOOKING INFORMATION 

We and our representatives from time to time make writ- ten or oral forward-looking statements, including state- ments contained in this and other filings with the Securities and Exchange Commission, in our press releases and in our reports to stockholders. The words and phrases “will likely result,” “expect,” “believe,” “planned,” “will,” “will continue,” “may,” “could,” “anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the mean- ing of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, our expec- tations regarding sales, earnings or other future financial performance and liquidity, product introductions, entry into new geographic regions, information systems initia- tives, new methods of sale and future operations or oper- ating results. Although we believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, actual results may differ materially from our expectations. Factors that could cause actual results to differ from expectations include, without limitation: 

(1) increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses, some of which have greater resources than we do; 

(2) our ability to develop, produce and market new products on which future operating results may depend; 

(3) consolidations, restructurings, bankruptcies and reor- ganizations in the retail industry causing a decrease in the number of stores that sell our products, an increase in the ownership concentration within the retail industry, ownership of retailers by our competitors and ownership of competitors by our customers that are retailers; 

(4) shifts in the preferences of consumers as to where and how they shop for the types of products and services we sell; 

(5) social, political and economic risks to our foreign or domestic manufacturing, distribution and retail opera- tions, including changes in foreign investment and trade policies and regulations of the host countries and of the United States; 

(6) changes in the laws, regulations and policies that affect, or will affect, our business, including changes in accounting standards, tax laws and regulations, trade rules and customs regulations, and the outcome and expense of legal or regulatory proceedings; 

(7) foreign currency fluctuations affecting our results of operations and the value of our foreign assets, the rela- tive prices at which we and our foreign competitors sell products in the same markets and our operating and manufacturing costs outside of the United States; 

(8) changes in global or local economic conditions that could affect consumer purchasing, the willingness of con- sumers to travel, the financial strength of our customers, the cost and availability of capital, which we may need for newequipment, facilities or acquisitions, and the assump- tions underlying our critical accounting estimates; 

(9) shipment delays, depletion of inventory and increased production costs resulting from disruptions of operations at any of the facilities which, due to consolidations in our manufacturing operations, now manufacture nearly all of our supply of a particular type of product (i.e. focus factories); 

(10) real estate rates and availability, which may affect our ability to increase the number of retail locations at which we sell our products and the costs associated with our other facilities; 

(11) changes in product mix to products which are less profitable; 

(12) our ability to acquire or develop e-commerce capa- bilities, and other new information and distribution tech- nologies, on a timely basis and within our cost estimates; 

(13) our ability to capitalize on opportunities for improved efficiency, such as globalization, and to integrate acquired businesses and realize value therefrom; and 

(14) consequences attributable to the events that are currently taking place in Iraq and that took place in NewYork City and Washington, D.C. on September 11, 2001, including further attacks, retaliation and the threat of further attacks or retaliation. 

We assume no responsibility to update forward-looking statements made herein or otherwise. 

