I know we have hired the best people when I apply my simple elevator test. Whenever I ride in the elevator at any of our office locations around the world, I pick out those people who will step off the elevator at  our floor. I distinguish them by all of the qualities we’ve mentioned here — that burning passion, that style, that desire to be the best. In addition to our people, it is ideas that keep our vision alive. We exchange new concepts between headquarters and the more than 130 countries and territories where our products are sold around the world. Both our packaging concepts and our technology in makeup and skin care reflect the influence of global teams. In the last year alone, I have traveled more than 200 days to make the point that we must learn from people  around the world. MRS. EST{E LAUDER’S ORIGINAL VISION — OF WHO WE ARE AND WHAT WE STAND FOR — HAS PROVEN TO BE RESILIENT AND TIMELESS.  Finally, we define leadership in our industry. Leadership doesn’t just mean sales leadership, but  thought leadership. We have an outstanding Board of Directors to whom we look for unbiased guidance and leadership. We are particularly delighted that Rose Marie Bravo, Chief Executive of Burberry, joined us this year. Ms. Bravo  herself is a leader, currently in charge of one of the world’s most prestigious brands, and is an expert at retailing, having led Saks Fifth Avenue and I. Magnin. As we now face the future of the Company, we are certain to grow and expand globally as the world presents more opportunity. But one thing is certain — that we will evolve and grow by holding on to the original vision of Mrs. Estée Lauder to “Keep Your Own Image Straight in Your Mind,” and to “Hire the Best People.” It is to all of these people that I now extend my thanks for persisting in their pursuit of excellence. My thanks, as well, to our stockholders, customers and consumers for continuing to believe in our vision. May our vision burn as brightly over the next 50 years as it has over the last 57 years. Sincerely, Leonard A. Lauder Chairman of the Board 09