Beauty Industry 2010 Review and 2011 Outlook January 2011 2010 Macroeconomic and Capital Markets Review

Home , Clarins, Dermacol, Laura Mercier, Lise Watier, Mandom, OPI Products

A host of economic and financial market factors continue to impact the Beauty industry and the consumer overall Situation Impact ▪ Unemployment ended the year at 9.4%; for adults ▪ The $58.3 billion U.S. Cosmetics & Toiletries under 30, it reached 19.5% market contracted, with a recovery expected by 2014 ▪ Consumer confidence slowly rebounded from − Discretionary categories have been hardest hit historical lows ▪ Near-term winners must take share or create new categories ▪ Home prices remained under pressure; American − “New value shoppers” across all demographic Macro homes have lost ~$9 trillion since housing market’s profiles seem willing to pay higher prices for peak in 2006 quality and efficacy − Foreclosures neared an all-time high in late 2010 − Increase in private label and cover label brands − High rates of negative equity persisted − New, breakthrough categories are emerging based on advanced technology and consumers’ ▪ The consumer continued to deleverage, appetite for perceived value through time-saving restructuring mortgages and credit agreements products while increasing savings ▪ Brands without an online presence are falling behind

▪ Valuations rebounded from 2009 lows ▪ M&A increased in Q3 and Q4 of 2010 highlighted − Market continued to trade off macro sentiment by transformational acquisitions that provided − Valuations were disconnected from business buyers access to new capabilities, channels and fundamentals markets − Although experiencing significant gains, Beauty ▪ Strategics led in both quantity and size of deals; stocks mostly underperformed the S&P 400 for notable transactions include Unilever’s acquisition Capital the two years ended December 31, 2010 of Alberto Culver, Shiseido’s purchase of Bare Markets ▪ Strategic buyers sought growth through Escentuals, and Coty’s acquisition of both OPI and acquisitions Philosophy which dramatically increased Coty’s ▪ Private equity began investing again given presence in the prestige market abundance of funds and maturing investment ▪ More private equity exits than investments in horizons Beauty in 2010 ▪ Debt markets opened, but on a limited basis ▪ No Beauty IPOs last year ▪ IPO market opened, but selectively Source: Euromonitor. 2 2011 Beauty Industry Trends

Trend Commentary

RETAIL Cross-channel collaboration Channel competition is morphing into channel collaboration as beauty retailers realize the synergistic effects of the ever-increasing channel-agnostic consumer Exclusivity Retailers are increasing launches of cover labels (retailer-exclusive brands typically retailer-owned) to drive customer traffic De-stocking Retailers are pushing more inventory risk to brand suppliers as well as expecting them to fill frequent spot buys on fast-moving items New entrants Fashion retailers are adding beauty and personal care to their assortment to capture incremental, hig h-margin bus iness New formats With the decline in department store sales, new open-sell formats are being tested within traditional beauty retailers and specialty retailers are adding services aimed at attracting and keeping the customer in-store more frequently and longer, respectively New models Private, online flash-sale sites are changgging the shopp ppgping paradi gm for presti ge brands, ca pitalizin g on consumer curiosity in discovering designer and indie brands at deep discounts BRANDS & PRODUCTS International expansion Brands are racing to establish themselves in fast-growing regions, mainly Brazil and China

Emerggging categ ories & niche New, breakthrougggh categories are emerg gging based on advanced technology and consumers’ app etite segments for perceived value through time-saving products (i.e., home-use beauty devices, lash enhancers, hair extensions, and a host of multi-functional products across all categories) Do-it-Yourself (“DIY”) Consumers continue to look for ways to curb spending, particularly on professional beauty services; simultaneously, brands are offering at-home solutions to address grooming’s most burdensome tasks (i.e., hair coloring, hair removal, manicures, and microdermabrasion) Product claims Through technological advances and rigorous testing, primarily in Skincare, brands are offering the consumer product claims on purported benefits through advertising, social networking, and packaging

3 U.S. Beauty Industry – Category Outlook & Trends

▪ Color Cosmetics category grew moderately up to 2008, but is expected to remain flat through 2014 ▪ Eye makeup will continue to show growth of 1.6% CAGR through 2014, while lip products decline by 2.5% CAGR Color ▪ Lash products and mascara are the segment winners Cosmetics ▪ Return to vibrant fashion colors for eyes, lips, and nails after several years of a muted palette ▪ New standard in complexion products is high-definition, flawless, natural-looking coverage through use of light-diffusion ingredients

▪ Haircare sales are expected to remain flat through 2014 as consumers trade down on basics ▪ Salon haircare is one of the few segments expecting additional, yet meager growth, at the expense of the conditioner segment Haircare ▪ In the mass, prestige, and professional channels, de-frizzing and smoothing are becoming mainstream, despite the controversy over use of formaldehyde, as Brazilian blow-out treatments and keratin protein promise semi-permanent straightening for textured hair ▪ Increasinggpg use of hair extensions save women time and help achieve the look of volume and length

▪ Skincare category sales expected to increase slightly starting in 2013 ▪ Not surprisingly, facial anti-agers remain the star with expectations for a 3.3% CAGR through 2014 ▪ Mass brands are focusing on technological breakthroughs and efficacy claims to gain traction on launches with prestige Skincare price points ▪ Majority of anti-aging products are now formulated with ingredients intended to replicate professional laser treatments to diminish dark spots, uneven texture, and redness; separately, home-use beauty devices promise incremental results ▪ Three of the top six skincare brands are sold exclusively through Direct-to-Consumer (“DTC”) channels

▪ Fragrance sales are expected to further decline by 2.4% CAGR through 2014, while European sales have recovered ▪ Premium fragrances should decline by 1.8% CAGR whereas mass fragrances are expected to decline by 4.7% CAGR ▪ Brand fragmentation continues to grow as celebrity and designer launches escalate Fragrance ▪ Competition from other scented product categories such as shower gel and body moisturizers are taking share ▪ Studies show consumers purchasing fragrance based on mood, followed by intended activity ▪ Classics continue to represent the top 10 best sellers ▪ New fragrances incorporate ever-exotic ingredients including Szechwan pepper, mahogany vetiver, and absinthe

▪ Bath & Body category is expected to remain flat through 2014 ▪ Bod y was h an d s hower ge l w ill grow by 2. 3% a t the expense o f ba th a dditives, ta lcum pow der, an d liqu id soap Bath & Body ▪ Majority of sales come from the mass channel, with private label and cover label sales accounting for ~25% share ▪ Small increases from branded products for men, mainly shower gels and cleansers

Source: Euromonitor, Mintel, and NPD. 4 Overview of Public Market Comparables in the Global Beauty Industry

Over the last year, public valuationsvaluations deteriorated, reflecting investor pepessimismssimism and expectations of lower growth, however, recently, as economic outlook has improved slightly, public valuations have followed suit

Stock Performance Index Graph – Last 2 Years Median EV/EBITDA

350% Median Today = 9.9x 13.8x Median Jan-2009 = 6.5x 300% Median Aug-2007 = 10.4x 11.3x 10.7x 10.1x 10.5x 250% 8.8x 9.1x 8.2x 200% 6.5x 6.7x 5.3x 5.3x 150%

100%

50% Global Mega-Cap Large and Mid-Cap Small-Cap Specialty Retail Dec-08 Feb-09 Apr-09 Jun-09 Jul-09 Sep-09 Nov-09 Dec-09 Feb-10 Apr-10 May-10 Jul-10 Sep-10 Oct-10 Dec-10 08/01/07 01/31/09 Today Specialty Retail Large and Mid-Cap S&P 400 Small-Cap Global Mega Cap ▪ Global Mega-Cap: Colgate-Palmolive,,, Henkel AG, Johnson & Historical vs. Estimated Revenue Growth CAGRs Johnson, L’Oréal, Procter & Gamble, Unilever NV ▪ Large and Mid-Cap: Alberto-Culver, Amorepacific, Avon Products, Median Change in Last 2 Year to Next 2 Year CAGR = 3.5% Beiersdorf, Church & Dwight, Clorox, Estée Lauder, Kao Corp., 7.3% 7.3% 6.7% Natura Cosmeticos, Oriflame Cosmetics, Shiseido 4.9% ▪ Small-Cap: Elizabeth Arden, FANCL Corp., Helen of Troy, KOSE 3.7% 2.4% Corp., Mandom Corp., Mannatech, Nu Skin Enterprises, Obagi 0.9% Medical Products, Physicians Formula, Prestige Brands, Revlon, Unihair ▪ Specialty Retail: Limited Brands, Regis Corp., Sally Beauty, Ulta (1.9%) Salon Global Mega-Cap Large and Mid-Cap Small-Cap Specialty Retail

Last 2-Year Next 2-Year

Source: Capital IQ; LTM data as of December 30, 2010. 5 Select Public Market Comparables

Stock Price Market Value Valuation Multiples Price % of 52 Market Ent EV / Revenue EV / EBITDA P / E P / E / G LTG Company 12/30/10 Wk Hi Cap Value* LTM CY10 CY11 LTM CY10 CY11 CY10 CY11 CY10 CY11 Rate Global Mega- Cap Colgate-Palmolive Co. $80.30 93.2% $38,760 $41,772 2.7x 2.7x 2.5x 9.9x 10.0x 9.7x 16.7x 15.9x 163% 155% 10% Henkel AG & Co. KGaA 62.06 96.4% 24,085 27,351 1.4x N/A N/A 9.3x N/A N/A N/A N/A N/M N/M N/A Johnson & Johnson 61.94 93.6% 170,103 160,002 2.6x 2.6x 2.5x 8.2x 8.1x 7.6x 13.0x 12.4x 203% 193% 6% L'Oreal SA 111.84 95.8% 65,556 67,779 3.0x N/A N/A 15.4x N/A N/A N/A N/A N/M N/M N/A Procter & Gamble Co. 64.28 98.3% 179,932 211,911 2.7x 2.7x 2.6x 11.1x 10.7x 10.4x 17.4x 16.1x 188% 174% 9% Unilever NV 31.40 98.2% 88,415 97,268 1.7x 1.7x 1.6x 11.0x 9.8x 9.0x 16.0x 14.7x 151% 138% 11%

Mean 95.9% $94,475 $101,014 2.3x 2.4x 2.3x 10.8x 9.6x 9.2x 15.8x 14.8x 176% 165% 9% Median 96.1% 76,986 82,524 2.6x 2.6x 2.5x 10.5x 9.9x 9.3x 16.4x 15.3x 176% 164% 10%

Large and Mid-Cap Alberto-Culver Company $37.07 97.7% $3,672 $3,521 2.2x 2.2x 2.1x 13.5x 13.5x 11.6x 23.5x 20.8x 175% 155% 13% Amorepacific Corp. 1,007.92 93.1% 5,889 5,726 3.4x N/A N/A 16.9x N/A N/A N/A N/A N/M N/M N/A Avon Products Inc. 29.04 80.2% 12,463 14,763 1.4x 1.3x 1.2x 10.7x 10.1x 8.8x 15.3x 13.5x 148% 131% 10% Beiersdorf AG 55. 32 84. 5% 12, 548 9, 684 12x1.2x N/A N/A 79x7.9x N/A N/A N/A N/A N/M N/M N/A Church & Dwight Co. Inc. 69.97 98.5% 4,977 5,186 2.0x 2.0x 1.9x 9.7x 9.5x 8.8x 17.6x 15.9x 147% 133% 12% Clorox Corporation 63.64 92.2% 8,874 11,521 2.1x 2.1x 2.2x 9.3x 9.0x 10.0x 14.9x 16.1x 163% 175% 9% Estee Lauder Companies Inc. 79.67 99.3% 15,598 16,156 2.0x 2.1x 1.9x 13.1x 13.8x 12.3x 28.9x 24.7x 211% 180% 14% Kao Corp. 26.78 90.0% 14,355 14,654 1.0x N/A N/A 6.4x N/A N/A N/A N/A N/M N/M N/A Natura Cosmeticos S.A. 28.64 96.4% 12,338 12,540 4.3x N/A N/A 17.7x N/A N/A N/A N/A N/M N/M N/A Oriflame Cosmetics SA 52.36 71.3% 2,905 3,248 1.6x N/A N/A 13.1x N/A N/A N/A N/A N/M N/M N/A Shiseido Co. Ltd. 21. 71 84. 5% 8, 638 9, 987 13x1.3x N/A N/A 10. 5x N/A N/A N/A N/A N/M N/M N/A

Mean 89.8% $9,296 $9,726 2.0x 1.9x 1.9x 11.7x 11.2x 10.3x 20.0x 18.2x 169% 155% 12% Median 92.2% 8,874 9,987 2.0x 2.1x 1.9x 10.7x 10.1x 10.0x 17.6x 16.1x 163% 155% 12%

Note: $ in Millions, except Per Share Data. *Enterprise Value = Value of Shareholders’ Equity + Debt – Cash. Source: Capital IQ. 6 Select Public Market Comparables (continued)

Stock Price Market Value Valuation Multiples Price % of 52 Market Ent EV / Revenue EV / EBITDA P / E P / E / G LTG Company 12/30/10 Wk Hi Cap Value* LTM CY10 CY11 LTM CY10 CY11 CY10 CY11 CY10 CY11 Rate Small-Cap Elizabeth Arden, Inc. $23.52 98.0% $662 $1,031 0.9x 0.9x 0.9x 11.9x 12.9x 10.2x 30.9x 19.0x 236% 145% 13% FANCL Corp. 14. 92 64. 2% 969 599 05x0.5x N/A N/A 41x4.1x N/A N/A N/A N/A N/M N/M N/A Helen of Troy Limited 30.12 98.9% 923 1,018 1.5x 1.6x 1.4x 8.6x 9.8x 8.1x 13.2x 10.8x 132% 108% 10% KOSE Corp. 25.70 92.6% 1,492 1,065 0.5x N/A N/A 4.6x N/A N/A N/A N/A N/M N/M N/A Mandom Corp. 26.93 77.5% 630 431 0.6x N/A N/A 4.5x N/A N/A N/A N/A N/M N/M N/A Mannatech Inc. 1.80 40.0% 48 29 0.1x N/A N/A 10.3x N/A N/A N/A N/A N/M N/M N/M Nu Skin Enterprises Inc. 30.44 89.6% 1,891 1,839 1.2x 1.2x 1.1x 7.7x 7.5x 6.8x 14.7x 12.9x 98% 86% 15% Obagi Medical Products, Inc. 11.52 80.7% 254 208 1.8x 1.9x 1.7x 9.9x 12.3x 8.2x 29.5x 13.4x 178% 81% 17% Physicians Formula Holdings Inc. 3763.76 88. 7% 51 61 08x0.8x 08x0.8x 08x0.8x 13. 4x 61x6.1x 61x6.1x N/A 36. 3x N/M 363% 10% Prestige Brands Holdings Inc. 11.85 95.4% 593 830 2.8x 2.7x 2.5x 8.2x 8.5x 7.9x 15.3x 14.6x 156% 149% 10% Revlon, Inc. 9.80 52.2% 509 1,691 1.3x N/A N/A 8.0x N/A N/A 9.3x 9.8x N/M N/M N/M Unihair Company Limited 13.34 89.7% 491 313 0.5x N/A N/A N/M N/A N/A N/A N/A N/M N/M N/A

Mean 80.6% $709 $760 1.1x 1.5x 1.4x 8.3x 9.5x 7.9x 18.8x 16.7x 160% 155% 12% Median 89.1% 611 715 0.8x 1.4x 1.2x 8.2x 9.1x 8.0x 15.0x 13.4x 156% 126% 12%

Specialty Retail Limited Brands, Inc. $31.19 87.9% $10,060 $11,637 1.3x 1.4x 1.2x 7.5x 9.8x 7.2x 25.9x 15.8x 169% 104% 15% Regis Corp. 16.77 77.3% 966 1,212 0.5x 0.5x 0.5x 4.9x 4.9x 4.9x 12.8x 12.6x 131% 130% 10% Sally Beauty Holdings Inc. 14.70 97.4% 2,691 4,209 1.4x 1.4x 1.3x 10.7x 10.9x 9.4x 19.7x 15.6x 129% 102% 15% Ulta Salon, Cosmetics & Fragrance, Inc. 34.34 92.2% 2,042 2,033 1.5x 1.7x 1.4x 12.2x 16.2x 11.5x 55.4x 31.5x 238% 136% 23%

Mean 88.7% $3,940 $4,773 1.2x 1.2x 1.1x 8.8x 10.4x 8.2x 28.4x 18.9x 167% 118% 16% Median 90.1% 2,366 3,121 1.4x 1.4x 1.3x 9.1x 10.3x 8.3x 22.8x 15.7x 150% 117% 15%

Overall Mean $21,011 $22,463 1.6x 1.8x 1.6x 10.0x 10.2x 8.9x 20.5x 17.1x 168% 149% 12% Overall Median 3,672 4,209 1.4x 1.7x 1.6x 9.9x 9.8x 8.8x 16.7x 15.7x 163% 138% 11%

Note: $ in Millions, except Per Share Data. *Enterprise Value = Value of Shareholders’ Equity + Debt – Cash. Source: Capital IQ. 7 M&A Trends in the Beauty Industry

Strategics generate the majority of deals in the sector through both bolt-on and transformational acquisitions; valuations in-line with historical highs for performing companies

Median Transaction Multiples Strategic vs. Financial Sponsor Acquisitions

14.9x 13.6x 12.0% 13.1x 21.7% 20.7% 33.3% 34.5% 11.1x 11.2x 41.9% 10.0x

88.0% 78.3% 79.3% 66.7% 65.5% 58.1% 2.0x 1.7x 2.0x 2.0x 1.9x 2.0x

2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010

Median EV/Revenue Median EV/EBITDA Corporate Strategic Financial Sponsor

2005 – 2010 Median EV/Revenue by Category 2005 – 2010 Median EV/EBITDA by Category

Overall Median = 2.0x Overall Median = 11.7x

2.5x 13.6x 2.3x 12.1x 12.1x 2.2x 10.5x 11.0x 1.8x

1.4x

Color Cosmetics Haircare Skincare Bath & Body Oral Care Color Cosmetics Haircare Skincare Bath & Body Oral Care

Source: Public company filings, press releases, Capital IQ, and Demeter Group estimates as of December 31, 2010. 8 Select M&A Comparables – Color Cosmetics

Closed Enterprise Target Enterprise Value/ Date Target Acquirer Value* Revenue EBITDA Revenue EBITDA

Pending OPI Products, Inc. Coty Inc. $950 $413 N/A 2.3x N/A Pending Dr. Scheller Cosmetics AG Coty Inc. N/A 70 N/A N/A N/A Pending Intercos ($69.8 million private placement) Investor Group N/A 285 $29 N/A N/A Dec-10 Avon Products Company Limited Devon Holdings K.K. 54 225 5 0.2x 11.5x Sep-10 Dermacol A.S. McBride plc 14 N/A N/A N/A N/A Jul-10 Smashbox Beauty Cosmetics, Inc. Estée Lauder Companies Companies Inc. 250 80 16 3.1x 16.0x Jun-10 Essie Cosmetics, Ltd. L'Oréal USA, Inc. 100 29 N/A 3.5x N/A Jun-10 Tarte Cosmetics (private placement) Encore Consumer Capital N/A N/A N/M N/A N/M Mar-10 Bare Escentuals, Inc. Shiseido Co. Ltd. 1,741 558 177 3.1x 11.0x Feb-10 Makeup.com Ltd. (nka LC Luxuries Ltd.) L'Oréal SA N/A N/A N/A N/A N/A App09r-09 Stila Corp. Patria rc h Part ne rs, LLC 25 35 NNM/M 0.7x NNM/M Mar-09 Urban Decay Cosmetics, LLC Castanea Partners N/A N/A N/A N/A N/A Feb-09 Pacific World Corporation Levine Leichtman Capital Partners 50 N/A N/A N/A N/A Jul-08 YSL Beauté, Inc. L'Oréal SA 1,680 915 66 1.8x N/M Dec-07 DLI Holding Corp. Coty Inc. 800 450 80 1.8x 10.0x Oct-07 Colorescience VMG Equity Partners N/A N/A N/A N/A N/A Mar-07 Lise Watier Cosmétiques, Inc. Imperial Capital Corporation, Kensington Capital 50 48 7 1.1x 7.1x PtPartners LiLiitdmited Mar-07 Fusion Brands, Inc. Eugene Melnyk 85 N/A N/A N/A N/A Feb-07 Pout Ltd. Catterton Partners 24 20 N/A 1.2x N/A Nov-06 Caleel + Hayden, Inc. (gloProfessional) North Castle Partners N/A N/A N/A N/A N/A Jul-06 Gurwitch Products, LLC (Laura Mercier) Alticor Inc. 100 75 N/A 1.3x N/A Jun-06 Jane & Co. Stone Canyon Venture Partners N/A 50 N/A N/A N/A Apr-06 Stila Corp. Sun Capital Partners 24 60 N/A 0.4x N/A Feb-06 Smashbox Beauty Cosmetics, Inc. TSG Consumer Partners 60 32 1 1.9x N/M Dec-05 Kanebo Cosmetics, Inc. Kao Corp. 3,672 1,800 N/A 2.0x N/A Feb-05 Entrecap Corp. Pacific World Corporation N/A N/A N/A N/A N/A Jan-05 DLI Holding Corp. Kelso & Company 461 381 38 1.2x 12.1x

Mean 1.7x 11.3x Median 1.8x 11.2x

Note: $ in Millions. *Enterprise Value = Value of Shareholders’ Equity + Debt – Cash. Source: Public company filings, press releases, Capital IQ, and Demeter Group estimates as of December 31, 2010. 9 Select M&A Comparables – Haircare

Closed Enterprise Target Enterprise Value/ Date Target Acquirer Value* Revenue EBITDA Revenue EBITDA

Pending Beiersdorf AG - Marlies Möller brand Troll Cosmetics GmbH N/A N/A N/A N/A N/A Pending Alberto-Culver Co. Conopco (Unilever) $3,732 $1,551 $248 2.4x 15.0x Pending Vanart, Pomada de la Campana, Galaflex, Affair and Genomma Lab Internacional SAB de CV 85 42 N/A 2.0x N/A Sante Haircare Brands Oct-10 Hobi Kozmetik A.S. Dabur India Ltd. 69 N/A N/A N/A N/A Mar-10 Innovative Brands, LLC (Pert Plus and Sure brands) Helen of Troy Limited 69 N/A N/A N/A N/A Oct-09 Prell Shampoo, Denorex Dandruff Shampoo and Zincon Ultimark Products 9 N/A N/A N/A N/A DdffDandruff Shampoo Mar-09 Johnson Products Co. St. Cloud Capital/Rustic Canyon/Fontis Partners N/A 23 N/A N/A N/A Mar-09 Infusium 23 Helen of Troy Limited N/A 40 N/A N/A N/A Apr-09 Toni & Guy USA, Inc. Unilever United States, Inc. 412 250 37 N/A 11.1x Sep-08 Samy Companies Hoyu Co. N/A 50 N/A N/A N/A Sep-08 Nioxin Research Laboratories, Inc. Procter & Gamble Co. N/A N/A N/A N/A N/A Jul-08 Dessange International OFI Private Equity Capital 192 84 N/A 2.3x N/A Jul-08 Ceil - Comercio e Distribuidora Ltda. Hypermarcas SA 104 N/A N/A N/A N/A May-08 Luxe Beauty Holdings Inc. (Sexy Hair Concepts) Thoma Cressey Bravo 170 55 8 31x3.1x 21.0 May-08 Pro-Duo NV Sally Beauty Holdings Inc. 34 30 N/A 1.1x N/A Mar-08 Frederic Fekkai & Co, LLC Procter & Gamble Co. 440 126 28 3.5x 16.0x Dec-07 Modern Health Laboratories, Inc. (Scalp Med) Guthy-Renker Corporation 16 N/A N/A N/A N/A Nov-07 Canan Kozmetik A.S. L'Oréal SA N/A 33 N/A N/A N/A Oct-07 C-BONS HairCare Co., Ltd. Beiersdorf AG 453 N/A N/A N/A N/A Jul-07 Ojon Corporation Estée Lauder Companies Companies Inc. 140 61 15 2.3 9.3 Jul-07 Jemella Limited Montagu Private Equity Limited 326 103 N/A 3.2x N/A Jun-07 Ouidad Products Corporation JH Partners LLC N/A N/A N/A N/A N/A May-07 LaBella Beauty, Inc. (Newhall Laboratories) Parallel Investment Partners 25 23 3 1.1 8.0 May-07 PureOlogy Research, LLC L'Oréal USA, Inc. 257 57 35 4.5x 7.3x Apr-07 Beauty Alliance, Inc. L'Oréal SA 575 372 44 1.5x 13.0x Feb-07 Chapelton 21 Limited Sally Beauty Holdings Inc. 62 105 N/A 0.6x N/A Feb-07 Kenra, Ltd. Imperial Capital Corporation N/A N/A N/A N/A N/A Nov-06 Capri International, Inc. BrandQuest Development Group, Inc. N/A N/A N/A N/A N/A Oct-06 Biotech Corporation (Nu Hair and Shen Min brands) Natrol, Inc. 5 N/A N/A N/A N/A Jul-06 Pert Plus (North America) Innovative Brands, LLC (Najafi Companies) N/A N/A N/A N/A N/A Jun-06 Emil Kiessling Gmbh Reichardt Abfüll-Logistik GmbH N/A 102 N/A N/A N/A May-06 Ellin LaVar Textures Woodridge Labs, Inc. 0 N/A N/A N/A N/A May-06 Finesse and Aqua Net Brands Lornamead, Inc. N/A 85 N/A N/A N/A Mar-06 Para Laboratories Inc. (Queen Helene) The Hain Celestial Group, Inc. N/A 20 N/A N/A N/A May-05 Nexxus Products Company Alberto-Culver Co. N/A 40 N/A N/A N/A Apr-05 Alterna Inc. TSG Consumer Partners N/A N/A N/A N/A N/A Mar-05 scunci International, Inc. Conair Corporation N/A N/A N/A N/A N/A Jan-05 Frederic Fekkai & Co., LLC Catterton Partners N/A N/A N/A N/A N/A

Mean 2.3x 12.6x Median 2.3x 12.1x

Closed Enterprise Target Enterprise Value/ Date Target Acquirer Value* Revenue EBITDA Revenue EBITDA

Pending Mantecorp Participações S.A. Hypermarcas SA $1,473 $432 N/A 3.4x N/A Pending Beiersdorf AG - Juvena brand Troll Cosmetics GmbH N/A N/A N/A N/A N/A Pending Paras Pharmaceuticals Ltd. Reckitt Benckiser Group plc 717 88 $24 8.1x 30.1x Pending Tjoy Holdings, Ltd Coty Inc. N/A N/A N/A N/A N/A Pending Philosophy, Inc. Coty Inc. 1,000 200 N/A 5.0x N/A Sep-10 Beauty Source Limited (St. Tropez) PZ Cussons plc 99 33 12 3.0x 8.5x Sep-10 Trilogy Natural Products, Ltd. Ecoya, Ltd. 14 7 N/A 2.0x N/A May-10 Hugo Naturals (private placement) Manhattan Growth Partners N/A N/A N/A N/A N/A Mar- 10 Liz Earle Beauty Co. Avon Products Inc. N/A 50 N/A N/A N/A Mar-10 Natural Products Group (Arbonne, Levlad) Eos Partners N/A N/A N/A N/A N/A Feb-10 Salu, Inc. (skinstore.com) Drugstore.com Inc. 37 41 N/A 0.9x N/A Feb-10 Chattem Inc. Sanofi-Aventis 2,174 463 162 4.7x 13.4x Jan-10 THEFACESHOP Korea Co., Ltd. LG Household and Health Care 336 203 N/A 1.7x N/A Dec-09 BlissWorld, LLC Steiner Leisure Ltd. 100 85 13 1.2x 7.8x Dec-09 Simple Health & Beauty Limited Alberto-Culver Co. 390 105 35 3.7x 11.0x Dec-09 Laboratoire Dr Renaud Valeant Pharmaceuticals International 22 10 N/A 2.1x N/A Oct-09 Prescription and Cosmetic Dermatology Products Valeant Pharmaceuticals International 18 8 N/A 2.3x N/A Jul-09 Kibio S.A.S. Clarins SA N/A 12 N/A N/A N/A Jun-09 ZIRH Holdings, LLC Procter & Gamble Co. 43 20 N/A 2.2x N/A Jun-09 The Art of Shaving, LLC Procter & Gamble Co. 60 30 N/A 2.0x N/A May-09 Fem Care Pharma Ltd. Dabur India Ltd. 59 19 3 3.1x 20.9x Oct-08 Noxzema Alberto-Culver Co. 100 50 11 2.0x 9.1x Sep-08 AGI Dermatics Estée Lauder Companies Companies Inc. N/A N/A N/A N/A N/A Sep-08 Zeezoo Software Corp. Enhance Skin Products, Inc. N/A N/A N/A N/A N/A Sep-08 Clarins SA Founding family of Clarins SA 3,168 1,580 231 2.0x 13.7x Jul-08 Forest Essentials (minority stake) Estée Lauder Companies N/A N/A N/A N/A N/A Jun-08 MyChelle Dermaceuticals, LLC Encore Consumer Capital N/A N/A N/A N/A N/A May-08 RéVive Skincare LLC Gurwitch Products, LLC 50 25 N/A 20x2.0x N/A Feb-08 Pevonia International, Inc. TSG Consumer Partners N/A N/A N/A N/A N/A Jan-08 South Seas Spa Medspas of America, Inc N/A N/A N/A N/A N/A Dec-07 Carol's Daughter Holdings, LLC Pegasus Capital N/A N/A N/M N/A N/M Nov-07 Presperse, Inc. Sumitomo Corporation N/A N/A N/A N/A N/A Oct-07 Terre d'Oc Groupe Yves Rocher N/A 13 N/A N/A N/A Aug-07 Néolia Brands Laboratoire Cosmepro Inc. 10 7 2 1.5x 6.7x Jul-07 Kate Somerville LLC JH Partners LLC 11 3 N/M 4.2x N/M Apr-07 Beijing Dabao Cosmetics Co. Ltd. Johnson & Johnson (China) Investment Co., Ltd. 298 N/A N/A N/A N/A Apr-07 Tiki Hut Holding Co. Playtex Products Inc. 83 110 14 0.8x 6.0x Feb-07 Philosophy, Inc. The Carlyle Group 450 120 45 3.8x 10.0x Jan-07 HDS Cosmetics, Inc. (DDF) Procter & Gamble Co. 90 30 N/A 3.0x N/A Aug-06 Agera Laboratories, Inc. Isolagen Inc. 5 N/A N/A N/A N/A Jun-06 Pfizer consumer products Johnson & Johnson 16,600 3,860 826 4.3x 20.1x Jun-06 Jurlique USA, Inc. JH Partners LLC N/A N/A N/A N/A N/A Mar-06 Vendôme S.A. Johnson & Johnson Consumer France S.A.S. N/A 193 N/A N/A N/A Mar-06 Beauty Source Limited (St. Tropez) Lloyds TSB Development Capital 98 27 6 3.6x 16.3x Mar-06 N.V. Perricone M.D. TSG Consumer Partners 100 25 N/A 4.0x N/A Dec-05 Naomi, LLC Southern Cosmetics Inc N/A N/A N/A N/A N/A May- 05 SkinCeuticals, Inc. LLOréal'Oréal SA 150 32 N/A 47x4.7x N/A Apr-05 Niadyne, Incorporated Catterton Partners N/A N/A N/A N/A N/A

Mean 3.0x 13.4x Median 3.0x 11.0x Note: $ in Millions. *Enterprise Value = Value of Shareholders’ Equity + Debt – Cash. Source: Public company filings, press releases, Capital IQ, and Demeter Group estimates as of December 31, 2010. 11 Select M&A Comparables – Bath & Body

Closed Enterprise Target Enterprise Value/ Date Target Acquirer Value* Revenue EBITDA Revenue EBITDA

Pending Colgate-Palmolive Ind. e Com. Ltda., Pom Pom Soap Hypermarcas SA $50 N/A N/A N/A N/A Oct-10 SSL International plc Reckitt Benckiser Group plc 4,075 $1,253 $211 3.3x 19.4x Dec-10 Sara Lee: Global Body Care and European Detergents Unilever plc 1,877 1,104 188 1.7x 10.0x Business Nov-10 Kiss My Face (private placement) Calitus Equity Partners N/A N/A N/A N/A N/A Oct-10 The King of Shaves Company Ltd. (private placement) Kai Industries Co., Ltd. N/A N/A N/A N/A N/A

Apr-10 Tiny Tillia Avon Products Inc. N/A 5 N/A N/A N/A Jun-09 Edge and Skintimate Shave Preparation Business Energizer Holdings Inc. 275 150 30 1.8x 9.2x Dec-08 Cosmivoire S.A. Unilever plc N/A N/A N/A N/A N/A Nov-08 Calgon & The Healing Garden Ilex Consumer Products Group, LLC N/A 23 14 N/A N/A Oct-08 Ascendia Brands, Inc. (Mr. Bubble) The Village Company, LLC 5 N/A N/A N/A N/A Jun-08 M&A Santé Beauté, SAS L'Occitane S.A. N/A 28 N/A N/A N/A May-08 H2O Plus Inc. Cordova, Smart & Williams and Goldman Sachs Urban N/A 40 N/A N/A N/A May- 08 Cederroth AB CapMan 239 239 15 101.0 16. 0 Apr-08 Pacific Direct Ltd. Primary Capital Limited 40 48 N/A 0.8x N/A Apr-08 Caldrea Co. S.C. Johnson & Son, Inc. N/A N/A N/A N/A 13.0x Jan-08 Les Produits Aromatiques Clair de Lune Inc. GB Merchant Partners, LLC N/A N/A N/A N/A N/A Jan-08 Sanctuary Spa Holdings Ltd. PZ Cussons plc 149 52 12 2.8x 12.1x Nov-07 Burt's Bees, Inc. Clorox Corporation 950 170 51 5.6x 18.5x Oct-07 Gilchrist & Soames Inc. Swander Pace Capital 85 37 7 2.3x 12.5x Jun-07 The Thymes, LLC Goff Management, Inc. N/A N/A N/A N/A N/A Jun-07 L'Occitane SA Managers of L'Occitane SA 1,069 449 N/A 2.4x N/A Feb-07 Healing Garden and Calgon Brands (Coty) Ascendia Brands, Inc. 125 N/A N/A N/A N/A Jan-07 Twincraft, Inc. Langer Inc. 32 27 2 1.2x 15.7x Jan-07 Avalon Natural Products, Inc. The Hain Celestial Group, Inc. 120 40 10 3.0x 12.0x Jan-07 Tri Tech Laboratories, Inc. LEK, Inc. N/A N/A N/A N/A N/A Dec-06 Universal Razor Industries, Inc. KAI USA Ltd. N/A N/A N/A N/A N/A Nov-06 Neways, Inc. Golden Gate Capital N/A N/A N/A N/A N/A Sep-06 Sure Deodorant Innovative Brands,,(j LLC (Najafi Com p)panies) 100 35 N/A 2.8x N/A May-06 Right Guard, Soft & Dri, Dry Idea Brands Dial Corp (Henkel KGaA) 420 275 41 1.5x 10.3 Mar-06 The Body Shop International plc L'Oréal SA 1,272 842 109 1.5x 11.7x Nov-05 Playtex Products, Inc. (10 non core brands) Ascendia Brands, Inc. 57 N/A N/A N/A N/A Oct-05 Gillette Co. Procter & Gamble Co. 54,000 10,000 3,857 5.4x 14.0x Jul-05 Molton Brown Group, Ltd. Kao Corp. 299 57 N/A 5.3x N/A May-05 Lotta Luv, LLC Charles Komar & Sons, Inc. N/A N/A N/A N/A N/A May-05 Slatkin & Company, Inc. Limited Brands Inc. N/A N/A N/A N/A N/A Mar- 05 Surrey, Inc. WOW Holdings, Inc. N/A N/A N/A N/A N/A

Mean 2.7x 13.2x Median 2.3x 12.5x

Closed Enterprise Target Enterprise Value/ Date Target Acquirer Value* Revenue EBITDA Revenue EBITDA

Pending Bitufo Hypermarcas SA $48 N/A N/A N/A N/A Mar-10 Floss and Go, Inc. Dr. Fresh, Inc. N/A N/A N/A N/A N/A Dec- 08 Laclede, Inc. GlaxoSmithKline Consumer Healthcare, L. P. 170 $50 N/A 34x3.4x N/A Oct-08 Ascendia Brands Inc. (Binaca mouthwash and Tek Dr. Fresh, Inc. 3 N/A N/A N/A N/A toothbrush) Jul-08 Del Pharmaceuticals, Inc. (Orajel) Church & Dwight Co. Inc. 380 100 $28 3.8x 13.6x Jun-07 Water Pik, Inc. EG Capital Group, LLC N/A N/A N/A N/A N/A Feb-07 Sunstar, Inc. Nomura Capital Investment Co., Ltd. 340 581 55 0.6x 6.2x Jul-06 Cumberland Swan Holdings, Inc. Vi-Jon Laboratories, Inc. N/A N/A N/A N/A N/A Jul-06 Fresh Breath Ltd Blistex Inc. N/A N/A N/A N/A N/A Apr-06 Water Pik Technologies Inc. The Carlyle Group and Zodiac SA (together, Coast 340 321 35 1.1x 9.8x Acquisition Corporation) Apr-06 OMNII Oral Pharmaceuticals 3M Co. N/A N/A N/A N/A N/A Mar-06 Tom's of Maine, Inc. Colgate-Palmolive Co. 119 50 8 2.4x 14.9 Dec-05 Rembrandt Oral Care Products Personal Products Company, Inc. N/A N/A N/A N/A N/A Nov-05 Procter & Gamble Co. ((pSpinbrush Toothbrush Busienss) Church & Dwigg,ht Co., Inc. 105 110 N/A 1.0x N/A Jun-05 Zila Pharmaceuticals, Inc. (Zilactin Brand OTC Lip and Blairex Laboratories, Inc. 11 N/A N/A N/A N/A Oral Care Products) Apr-05 Natural Dentist, Inc. Great Spirit Ventures, LLC N/A N/A N/A N/A N/A Jun-04 Zooth, Inc. Gillette Co. N/A N/A N/A N/A N/A Oct-03 Pepsodent, Aim, Mentadent, Close Up Brands Church & Dwight Co. Inc. 104 122 N/A 0.9x N/A Sep-03 Glide Dental Floss Procter & Gamble Co. N/A 45 N/A N/A N/A

Mean 1.9x 11.1x Median 1.1x 11.7x

Overall Mean 2.5x 12.7x Overall Median 2.2x 12.0x

Jeff Menashe Michelle Cherrick Jani Friedman Chairman Chief Executive Officer Managing Director [email protected] [email protected] [email protected]

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