4

OMB No. 1545-0052 ~ Return of Private Foundation Form 990-P F or Section 4947(aXl) Nonexempt Charitable Tru st Treated a s a Private Foundatio n 2003 D epartment of the Treasury Note: The organization may be able to use a copy of this return to satisfy state In t ern a l R eve n ue Servic e For calendar year 2003, or tax year be innin 2003, and ending G Check all that a I Initial return Final return Amended return Addres s Use the A Employer Identification numbe r IRS label . THE RONALD S . LAUDER FOUNDATION 13-3 4 4591 0 B Telephone number (see i nstructi ons) Otherwise,print 767 FIFTH AVENUE #420 0 or type. NEW YORK, NY 10153-0185 212-319-6300 See Specific C If exemption application is pending, check here 11" ' Instructions . D 1 Foreign organizations, chec k here . . . 01 H H Chec k type o f organization : U Section 5 01 (c)(3 e xemp t private foun dation 2 Foreign organizations meeting the 85% test, check ❑ OSection 4947(a)(1) nonexempt charitable trust Other taxable private foun d ation here and attach computation . ~ ❑ Fair market value o all assets at end o year J Accounting method . Cash X Accrual E If private foundation status was terminated (from Part 11, column c, line 16) under section 507(b)(1)( A), chec k her e [] Other (specify) F If the foundation is in a 60-month termination 110. ► $ 26 528 342 . Pay :olumn d must be on cash basis. under section 507(b)(1)( B), check here rt Analysis of Revenue and (a) Revenue and (b) Net investment (c) Adjusted net (d) Disbursement s Expenses (The total of amounts i n exp enses per books income inco me for charitable columns b, c, and d may not neces- purp oses sanly equal the amounts in column a .) (cash basis only )

1 Contr ibutions, gifts , grants , etc, rece ived (aft sch) 7,31 Ck "' n if the found is not req to alt Sch B 2 Distributions from split-interest trusts 3 In terest on savings and temporary cash invest ments 11,053 .1 11,053 .1 11,053 . 4 Dividends and interest from securities 5a Gross rents . . . b (Net rental (loss) 6 8 Net pa in / (loss) from sale of assets not on li ne 1Q b Gross sales pr ices for al l assets on line 6a 7 Cap ital ga in net income (from Part IV, line 2) 8 N et short -term ca pital gai n IU 9 Income modifications 10a Gross sales less returns and allowances . . b Less : Cost o f goods sol d c Gross profit/(loss) (att sch) ce 11 Other income (attach sched ule) . . See Statement 1 570,330 . 570,330 . 12 Total . Add lines 1 t hro ugh 1 1 9 ! 01 918 19,058 . 1 3 Compensat ion of offi cers , directors, trustees , etc bbl 14 Other employee salaries and w ages A 15 Pension pl ans, e mployee benefits D M 16a Legal es (a t Accou ling fee x nQ t 3 N b J4 0 c Other of P S E T 17 Inter i/) R R A A 18 Taxes rhh(sa cf~~. ~S~2~~~ t T T 19 Depr afo ttach schedule) an depletio ~ N V 20 Occ an . .- G E 21 Tray I, co r~m~irTgs A E 22 Pnnt 9' 0 N X 0 P 23 Other e xpenses (attach sched ule) E 1,305,270 . 1,312,782 . N E 24 Total operating and adm inistrative S expen ses. Add lines 13 through 23 8, 052, 703 . 5,399 . 570,330 . 6,868,630 . 25 Contributions, gifts, grants paid . P.dT.t . XV 3,184,930 . 3,184,930 . 26 Total expen ses and disbursements. Add lines 24 and 25 11,237,633 . 5,399 . 570 330 . 10,053,560 . 27 Subtract line 26 from line 12: a Excess of revenue over expen ses and disbursements -3 335,715 . b Net Investment I nc ome (if negative, enter -0-) 13,659 . C Adjusted net In come (if negat ive, enter -0-) 19,058 .1 BAA For Paperwork Reduction Act Notice, see the in structions. lEEA0503 L 08/1 8/03 Form 990-PF (2003 Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATIO N 13-3445910 Page 2 ~ Attached schedu les and amounts in the description Beginning of year End of yea r Part it Balance Sheets column should be for end -of - year amounts only (See instructi ons ) (a) B ook Value Book Value (c) Fair Market Valu e 1 Cash - non -interes t•bean n g 2,437,263 . 2,724,124 . 2,724,124 . 2 Savings and temporary cash investment s 15 .390 . 14 .513 . 14,513 . 3 Accounts receivable 0 ------Less : al lowance for doubtful accounts 01 ------4 Pledges receivable 10 ------Less: allowance for doubtful accounts 1~ ------5 Grants receivable . 6 Receivables due from officers, directors, trustees, and othe r disqualified persons (attach schedule) (see instructions) . . . 7 Other notes and loans receivable (attach sch ) A -- - -- ~ 5 Less : allowance for doubtfu l accounts ------s 8 Inventories for sale or use . . . . 127,952 . et 9 Prepaid expenses and deferred charges 127,219 .1 127,952 s 10a Investmen ts - U S and state government obligations (attach schedule ) b Investments - corporate stock (attach schedule) 962,466 .1 1,431,303 1,431 .303 . c Investments - corporate bonds (attach schedule) 11 Investments - land, buil d ings, an d equipment : basis . IN - Less: accumulated depreciation (attach schedule) . . . . ------12 Investments - mortgage loans . . . . . 13 Investments - other (attach schedule d 14 Land, buildings, and equipment : basis . 25 , 1 94 , 16 2 . Less : accumulated depreciation . (attach schedule) See Stmt 7 . ► 2, 985, 765 . 17,720,947 22,208,397 . 22,208,397 15 Other assets (describe', S ee Statement 8 177,866 22,053 . 22,053 . 16 Total assets (to be completed by all filers - see instructions Also, see page 1 , item 21,441,151 26,528,342 . 26,528,342 . L 17 Accounts payable and accrued expenses ...... 683, 97 9 749,245 . i a 18 Grants payabl e . . . . b 19 Deferred revenue . . . . 20 Loans from officers, directors, trustees, & other disqualified persons •• 5,730,000 . 9,230,000 . ~ 21 Mortgages and other notes payable (attach schedule) Stmt . 9 . . 15, 950, 000 . 20,494,616 . t 22 Other liabilities (describe . 155,813 . e s 23 Total liabilities (add lines 17 through 22) 22,519,792 . 30, 473 , 861 . Organizations that follow SFAS 117 , check here X and complete lines 24 through 26 and lines 30 and 31 . N F 24 Unrestricted ...... -1,078,64 1 -3,945,519 . e u t n 25 Temporarily restricte d •• d 26 Permanently restricted ...... A B Organizations that do not follow SFAS 117, check here 5s a and complete lines 27 through 31 . e I t a 27 Capital stoc k, trust prin cip al, or current fund s s n 28 Paid-in or capital surplus, or land, building, and equipment fund c o e 29 R etailed earnings, accumulated income, endowment, or other funds r s 30 Total net a ssets or fund balances (see instructions) -1,078,641 . 45,519 . 31 Total liabilities and net assets/fund balances (see instructions 21,441,151 . 2 28,342 . Part III Analysis of Changes in Net Assets or Fund Balances

1 Total net assets or fund balances at beginning of year - Part II , column (a) , line 30 (must agree with end-of-year figure reported on p rior year's return) . . . . -1,078,641 . 2 Enter amount from Part I , line 27a ...... -3,335,715 . 3 Other increases not included in line 2 (itemized See Statement 10 468,837 . ►------4 Add lines 1, 2, and 3 ...... -3,945,519 . 5 Decreases not included in line 2 (itemize) ------6 Total net assets or fund balances at end of year (l ine 4 minus line 5) - Part II, column (b), line 30 -3,945,519 . BAA TEEA0302L 081 15/03 Form 990-PF (2003) Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATIO N 13-3445910 Page 3 Part IV Capital Gains and Losse s for Tax on Investment Income (a) List and describe the kind(s) of p roper ty sol d (e .g ., real estate, D) H ow acquired (C) Date acquired (0) Da te sol d rick warehouse ; or common stock, 200 shares M LC Company) P - Purchase ( m onth, d a y , year) (month, da y , ye ar) 2-story b D - Donation 1a N/A , b c d e (e) Gross sales price (f) Depreciation allowed I (g) Cos t or other basis (h) Gain or (loss) ~r allo wa ble) plus expense of sale (e) plus (f) minus (g)

b c d e implete only for asse in in column (h) and owned b the foundation on 12/31/ 69 (I) Gains (Column (h ) (I) Fair Market Valu e Q) Adjusted basis (k) Ex cess of colu mn (i) gain minus co lumn (k), but not less as of 12/31/69 as of 12 /31/69 over column Q), if any th an -0-) or L osses (fro m column (h))

a b c d e

2 Cap ital gain net income or (net cap ital loss) If gain, also enter in Part I, line 7 Elf (loss), enter -0- in Part I, line 7 2 3 Net short-term c apital gain or (loss) as defined in sections 1222(5) and (6): If gam, also enter in Part I, line 8, column (c) (see instructions) . If (loss), enter -0- in Part I . line 8 3 I Part V I Qualification Under Sect ion 494U(e) for Reduced Tax on Net investment income (For optional use by domestic private foundations subject to the section 4940(a) ta x on net investment income .)

If section 4940(d)(2) applies, leave this part blank .

Was the organization lia b le for the sec tion 4942 tax on the distributable amo unt of any year in the base period? Yes nX No If 'Yes,' the organization does not qualify un der section 4940(e) . Do not complete this part .

1 E nter the appropriate amount in eac h column for each year ; see instruc tions befor e ma king any entries .

(a) (b) ~ Base period years Adjusted qualifying distributions Net~ value of Distributionu ratio Calendar year (or tax year noncharitable-use assets (column (b) divided by column (c)) beginning in ) 2002 9,695,356 . 3,163,041 . 3 .065201 2001 10 033 292 . 3,973,378 . 2 .525129 2000 9,902 854 . 8,090,933 . 1 .223945 1999 12 331,523 . 8,892,805 . 1 .386685 1998 18,775,596 . 13,432,495 . 1 .39777 4

2 Total of line 1 , column ( d) 2 9 .598734

3 Average distribu tion ratio for the 5-year base period - d ivid e the total on line 2 by 5, or by the nu m ber of years the foundation has been in existence if less than 5 years 3 1 .919747

4 Enter the net value of non chari table-use assets for 2003 from Part X, line 5 4 3,618,593 .

5 Multiply line 4 by line 3 5 6,946,783 .

6 Enter 1 % of net investment income (1 % of Pa rt I, line 27b) 6 137 .

7 Add lines 5 and 6 7 6 .946 .920 .

8 Enter qualifying distributions from Part XII, line 4 1 8 1 10, 053, 560 . If line 8 is equal to or greater than line 7, check the box in Part VI, line 1 b, and complete that part using a 1 % tax rate . See th e Part VI instructions . BAA Form 990-PF (2003) TEEA0303L 08I1 5/ 03 Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATIO N -3445910 Paae 4 ` Part VI Excis e Tax Ba sed on Inve stment In come (Section 4940(a), 4940(b), 4940(e), or 4948 -see i 1 a Exempt operating foundations described in section 4940(d)(2), check here '- and enter'N/A' on Ime i . Date of rulmg,letter: ______(attach copy of ruling le tter if necessa ry - see i nstructions) b Domestic organizations that meet the section 4940(e) requirements in Part V , 137 . chec k here . and enter 1 % of Part I, line 27b c All other domestic organizations enter 2% of line 27b . Exempt foreign organizations enter 4% of Part I, line 12, column (b ) 2 ------2 Tax under section 51 1 (do mestic section 4947(a)(1) trusts and taxabl e foun dations only . Others enter -0-1 0 . 3 Add Imes 1 and 2 . . . 3 137 . 4 Su btitle A (inco me) tax (domestic section 4947(a)(1) trusts and taxable foundations only . Others enter -0- ) 4 0 . 5 Tax based on investment income . Subtract line 4 from line 3 . If zero or less, enter -0 - ...... 5 137 . 6 Credits/Payments : a 2003 estimated tax pmts and 2002 overpayment credited to 2003 . 6a 4,422 . b Exempt foreign organizations - tax withheld at source . . . . 6 b c Tax paid with application for extension of time to file (Form 8868) 6 c d Backup withholding erroneously withheld . 6 d 7 Total credits and payments Add lines 6a through 6 d 7 4 , 422 . 8 E nter any penal ty for und erpay ment of estimated tax. C hec k here if Form 2220 is a ttache d 9 Tax due. If the total of lines 5 and 8 is more than line 7, enter am ount owed . . 10 Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount ove rpaid . . 4 , 28 5 . 11 E nter the amount on line 10 to be: C redited to 2004 estimated tax . 0" 4,285 .1 Refunded

Yes N o 1 a During the tax year, did the organi zation a tte mpt to influence any na tion al, s tate, or local legislation or d id it partici pate or in tervene in any political ca mpaign? la X b Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see instructions for definition)? . lb X If the ans we r is 'Yes' to la or 16, attach a detailed description o f the activities and copies o f any materials published or distributed by the organization in connection with the activities . c Did the organization file Form 1120-POL for this year? . . . . . 1c X d E nter the a mount (if any) of ta x on political e xpenditures (section 4955 ) imposed during th e year (1) On the organization . ► $ 0 . (2) On organization managers I. $ 0 . e Enter the reimbursement (if any) paid by the organization during the year for political expenditure tax imposed on organi zation managers 0- $ 0 . 2 Has th e organization engage d in any activities th at h ave not p reviously b een reporte d t o the I RS? . 2 1 I x If 'Yes,' attach a detailed description of the activitie s 3 Has the organization mad e any changes, not p reviously re ported to the I RS, in its governing instrument, articles of incor poration, or byla ws, or other similar instruments? If 'Yes.' attach a conformed copy of the changes . . . . 3 X 4a D id the organization have unrelate d business gross income of $1,000 or more d uring the ye ar 4a X b If 'Yes,' has it filed a tax return on Form 990-T for this years . . 4b NIA 5 Was there a liquidation, termination, dissolution, or substan tial contraction during the year? ...... 5 X If 'Yes,' attach the statement required by General Instruction T 6 Are the requirements of section 508(e) (rela ting to sections 4941 through 4945) satisfied either: • By language in the governing ins trum ent or • By state legislation that effectively amends the govern ing instrument so that no mandatory directions that conflict ------' with the state law rema in in the governing instrument? ...... 6 X 7 Did the organization have at least $5,000 in assets at any time during the year? If Yes, ' complete Pa rt fl, column (c), and Part XV 7 X 8a Enter the states to which the foundation reports or with which it is registered (see instructions) New York ------b If the answer is 'Yes' to line 7, has the organization furnished a copy of Form 990 -PF to the Attorney General ------(or designate) of each state as required by General Instruction G? If 'No,' attach explanation...... 8b X 9 Is the organization claiming status as a private operating foundation within the meaning of section 4942(j)(3) or 4942(j)(5) for calendar year 2003 or - - - -- ~ the taxable year begin ning in 2003 (see instructions for Part XIV)? H 'Yes,' complete Pa rt Xll( 9 X 10 Did any persons become substantial contributors during the tax year? ...... 10 X If 'Yes, ' attach a schedule listing their names and addresses . 11 Did the organization comply with the public inspection requirements for its annual returns and exemption application? . 11 X web site address ...... 0- rs1foundation_org ______12 The books are in care of ► LEONARD J . BENCIVENGA CPA Telephone no. ► 914 769 5005 - - - Located at ► 420 COLUMBUS AVE, _ STE_ 304, VALHALLA,_ NY _ _ _ _ _ ZIP +4 ► 10017-570 6 13 Section 4947(a)(1) nonexempt cha ritable trusts filing Form 990 •PF in lieu of Form 1041 - Check here N/ A and enter the amount of tax -exempt interest rece ived or accrued during the year ~ I 13 ~ N/A BAA -• Form 990-PF (2003) TEEA03 091 08/ 1 5/03 Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATIO N 13-3445910 Page 5 ` Part VII -B Statement s Regarding Activities for Wh ich Form 4720 May Ben File Form 4720 if any item is checked in the 'Yes' column, unless an exception applies. Yes No 1 a During the year did the organization (either directly or indirectly) : (1) E ngage in th e sale or e xchange, or leasing of property with a dis q ualified person ? Yes lX No

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) a disqualifie d persons . . X Yes No (3) Furnish goods, services, or facilities to (or accept the m fro m) a disq ualifie d person X Yes No (4) Pay compensation to, or p ay or reim b urse the ex penses of, a disqualified person ? X Yes No (5) Transfer any income or assets to a disqualified person (or make any of either available for the benefit or use of a disqualified person) Yes 21 No

(6) Agree to pay money or property to a government o fficial? (Exception. Chec k 'No' if the organization agreed to make a grant to or to employ the official for a period after terminatio n of government service, if termi n ating within 90 days.) . . . . . Yes No b If any answer is 'Yes' to 1a(1)-(6) , did any of the acts fail to quali under the exceptions desc ribed in Regulations section 53.4941 (d)-3 or in a current notice regarding Vaster assistance (see instructions)? 1 b X Organizations relying on a current notice regarding disaster assistance check here ~ ❑ c Did the organization engage in a p rior year in any of the acts desc ribed in 1 a , other than excepted acts , that were not corrected before the first day of the tax year beginning in 2003?...... 1 c X 2 Taxes on failure to d istribute income (section 4942) (does not a p pl for years the organization was a p rivate operating foundation d efined in section 49420(3) or 4942~~(5))- a At the end of tax year 2003, did the organization have any undistributed income (lines 6d and 6e, Part XIII) for tax year(s) beginning before 2003 Yes No If 'Yes,' list the years 01 20 _ , 20 _ , 20 _ , 19 _

b Are there any years listed in 2a for which the organization is not applying the p rovisions of sec tion 4942(a)(2) (relating to incorrec t valuation of assets) to the year's undistributed i ncomes (I f applying section 4942(a)(2) to all years listed, answer 'No' and attach statement - see instructions .) ...... 2b N A c If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here . 11" 20 , 20 , 20 , 19 3a D id the organi zation hold more than a 2% direct or indirect interest in any busines s enter prise at any time d uring the years . [] Yes X No b If 'Yes,' did it have excess business holdings in 2003 as a result of (1) any purchase by the organization or disqualified persons after May 26, 1969 ; (2) the lapse of the 5-year period (or longer period approved by the Commissioner under section 4943(c)(7)) to dispose of holden sacquired by gift or bequest ; o r (3) the lapse of the 10-, 15•, or 20-year first phase holding period? Use Schedule Form 4720, to ------determine if the organization had excess business holdings in 2003.) 3b NIA 4a Did the organization invest during the year any amount in a manner that would jeopardize it s charitable purposes? ...... 4a } b Did the organization make any investment in a prior year (but after December 31, 1969) that coul d jeopardize its charitable purpose that had not been removed from jeopardy before the first day of the tax year beginning in 2003 4b ? 5a During the year did the organization pay or incur any amount to : (1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? ~ Yes N o (2) I nf luence the outcome of any s pecific public election (see sec tion 4955) ; or to carry on, directly or indirec tly, any voter registration drive ? Yes X No (3) Provide a grant to an individual for travel, study, or other similar purposes ? HX Yes No (4) Provide a grant to an organization other than a cha ritable, etc , organization describe d in section 509(a)(1), (2) , or (3), or section 4940(d)(2)? ...... XQ Yes ~ N o (5) Provide for any purpose other than religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animal s Yes No

b If any answer is 'Yes ' to 5a(1)-(5) , did any of the transactions fail to qualify under the exceptions described in Regulations section 53 4945 or in a current notice regarding disaster assistance (see instructions)? ...... 5b X Organizations relying on a current notice regard ing disaster assistance check here El c If the answer is 'Yes' to question 5a(4), does the organization claim exemption from th e tax because it maintained expenditure responsibility for the grant? E] Yes No If 'Yes,' attach the statement required by Regulations section 53.4945 .5(d) See Statement 1 1 6a Did the organization, during the year, receive any funds, directly or indirectly, to pay premium s on a personal benefit contracts Yes ❑x No J b Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? . 6b X If you answered 'Yes' to 6b, also file Form 8870 .

BAA TEEA0305 L 08 /1 5/03 Form 990-PF (2003) Form 990-PF 2003 THE RONALD S . LAUDER FOUNDATION 13-3445910 Page 6 Part VIII Informat ion About Officers, Directors, Trustees, Foundation Manager s, Highly Paid Employees, and Contractors 1 List aL! officerp, directors, trustees, foundation managers and their compensation (see instructions (b) Title and average (c) Compensation (d) Contribution s to (e) Ex pense accoun t, ress hours per w eek pf not paid, enter -0-) employee benefit other allo wances (a) Name and ad d devoted to position p lans an d deferre d compensation ------See Statement 12 661,350 . 76,771 . 0 .

2 Compensation of five highest-paid employe s (other than those i ncluded on line 1 -see i tractions). If none, enter 'NONE.' (a) Name and address of each employee (b) Title and average (c) Compensation (d) Contributions to (e) Expense account, paid more than $50,000 hours per wee k employee benefit other allowances devoted to position plans and deferred

Helise Lieberman E .D .-LM SCH ------Warsaw Poland 40 140,000 . 38,059 . Yale Reisner Archivis t Warsaw, Poland 40 140 000 . 38,059 . Josh Spinner ______Dir . Berlin Berlin, German 40 109,750 . 29,666 . Laura Ross______Ex Asst/Off M Mount Vernon_ New York 40 106,942 . 31,772 . Bini Krauss Dir . Frankfur Hamburg, German 40 107 380 . 28,966 . Total number of other employees said over $50,000 0 3 Five highest-paid independent contractors for profe ssional se rvices - 1 instructions). If none , enter NONE . (a) Name and address of each person paid more than $50,00 0 pe of service Bencivenga Ward & Company ______420 Columbus Ave, #304, Valhalla, NY 1059 5 160 .346 . Tova------Ben Nun Bucharest, Romania Romania or Conslt 62,000 .

Total number of others rece iving over $50,000 for professional services 0 Part IX-A Summa ry of Direct Charitable Activities

List the foundation's four largest direct charitable activities during the tax year . Include relevant statistical information such as the number of I Expenses organizations and other beneficiaries served, conferences convened, research papers produced, etc. .- See Statement_ 16 1 Amount-listed-is------sum of the four largest programs -- for analysis of these programs______8,755,671 . 2 ------

3 ------

4 ------

BAA TEEA0 306 L 08/1 5/03 F orm 990-PF (2003) Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATION 13-3445910 Page 7 Part IX-B Summary of Program-Related Investments (see instructions )

Describe the two largest aroaram•related investments made by the foundation lines 1 and 2 . 1 Amount 1 ------N/A

2 ------

All oth er p rogram-related invest ments. See instructions 3 ------

Total. Add Imes 1 through 3 . . . . 0.1 0 .

Part X Minimum Investment Return (All domestic foundations must com plete this part . Foreign foundations, see instructions .)

1 Fair market value of assets not used (or held for use) directly in carrying out charitable, etc, purposes : a Averag e monthly fair mar ket value of securities la 1,125,252 . b Average of monthly cash balances ...... 1b 2,548,446 . c Fair market value of all other assets (see instructions) ...... 1 c d Total (add lines 1 a, b and c) ...... 1d 3,673,698 . e Reduction claimed for bloc kage or other factors reported on lines 1a and l c (a ttach detaile d exp lan ation) . . . 1 1 e l 0 . 2 Acquisition in debtedness app lica b le to line 1 assets 2 0 . 3 Subtract line 2 from line 1 d 3 3,673,698 . 4 Cash deemed held for charitable activities . Enter 1-1/2% of line 3 (for greater amount, see instructions} . . 4 55,105 . 5 Net value of noncharitable -use assets . Sub tract line 4 f ro m line 3 Enter here and on Part V, line 4 6 Minimum investment return . Enter 5% of line 5 6 180,930 . '81't XI Distributable Amount (see instructions) (Section 49420(3) and 0)(5) p rivate operating founda tions and certai n foreign organi zations chec k here 0' fl and d o not comple te th is par t ) 1 M inimum inves tment return from Part X, line 6 . . . . . 1 180 , 930 . 2a Tax on investment income for 2003 from Part VI, line 5 ga l 137 . b Income tax for 2003 (This does not include the tax from Part VI .) c Add lines 2a and 2b . . 2c 137 . 3 Distributable amount before adjustments . Subtract line 2c from line 1 . . . . . 3 180 793 . 4a Recoveries of amounts treated as qualifying distributions ...... 4a b Income distributions from section 4947(a)(2) trusts . . . c Add lines 4a and 4b 4c 5 Add lines 3 and 4c...... 5 180,793 . 6 Deduction from distributable amount (see instructions ) 7 Distributable amount as adiusted. Subtract line 6 from line 5 . Enter here and on XIII, line 1 . ~17 180,793 . Part XII Qualifying Distributions (see instructions)

1 Amounts paid (including administrative expenses) to accomplish charita b le , etc, purp oses : a Expens es, contribu tions, gi fts, etc - total fro m Part I, column (d), line 26 1 a 10,053,560 . b Program-related investments - Total from Part IX-B ...... 1 b 2 Amounts paid to ac q uire assets used (or held for use) directly in carrying out charitable, etc, pur poses 2 3 Amounts set aside for specific charitable projects that satisfy the : a Suitability test (prior I RS approval re q uired) 3a b Cash distribution test (attach the required schedule) ...... 3 b 4 Qual ifying distri butions . Add lines la through 3b Enter here and on Part V, line 8, and Part XIII, line 4 4 10,053,560 . 5 Orga n izations that qualify und er section 4940(e) for the red uced rate of tax on net investment income . Enter 1 % of Part I, line 27b (see instructions) ...... 5 137 . 6 Adjusted qualifying distributions . Subtract line 5 from line 4 . . 6 10,053,423 . Note : The amount on line 6 will be used in Part V, column (b), in subseq uent years when ca/culating whether the foun datio n qualifies for the sec tion 4940(e) reduction of tax in those years . BAA Form 990-PF (2003)

TEEA0307 L 08/15 /02 Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATION 13-3445910 Page 8 Part XIII Undistributed Income (see instructions )

Corpus Years pno~ to 2002 20cb2 20463

1 Distributable amount for 2003 from Part XI, line 7 ...... 180,793 . 2 Undistributed income, if any, as of the end of 2002 : a Enter amount for 2002 onl y 0 . b Total for prior years : 20 , 20 ,19 0 . 3 Excess distributions carryover, if any, to 2003 : a From 1998 18 775 596 . b From 1999 12,331,523 . c From 2000 9,605,694 . d From 2001 ...... 9,836,027 . e From 2002 ...... 9, 537, 778 . f Total of lines 3a through e . . . . 6 0 086,618 . 4 Qualifying distributions for 2003 from Part XII, line 4: "1 $ 10,053,560 . a A pp lied to 2002, but not more than line 2 a 0 . b Applied to undistributed inco me of prior years (Election required - see instructions) 0 . c Treated as distributions out of corpus (Election re quired - see instructions) 0 . d Applied to 2003 distributable amount 180,793 . e Remaining amount distributed out of corpus . 9,872,767 . 5 Excess distributions carryover applied to 2003 0 . 0 . (If an amount appears in column (d), the same amount must be shown in column (a) )

6 Enter the net total of each column a s indicated below: a Corpus . Add lines 3f, 4c, and 4e . Subtract line 5 69,959,385 . b Prior years' undistributed income Subtract line 4b from line 2 b 0 . c Enter the amount of prior years' undistribut- ed income for which a notice of deficiency has been issued, or on which the section 4942(a) tax has been previously assesse d 0 . d Subtract line 6c from line 6b . Taxable amount - see instruction s 0 . e Undistributed income for 2002 . Subtract line 4a from line 2a. Taxable amount - see instructions 0 .

f Undistributed income for 2003 . Subtract lines 4d and 5 from line 1 . This amount must be distributed in 2004. . . . . 0 . 7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170( )(1)(E) or 4942(g)(3) (see instructions). 0 . 8 Excess distributions carryover from 1998 not applied on line 5 or line 7 (see instructions) 18,775,596 .

9 Ex cess d istri bution s carryover to 2004. Subtract lines 7 and 8 from line 6a 51,183,789 . 10 Analysis of line 9 : a Excess from 1999 . . . 12,331,523 . b Excess from 2000 . . . . 9,605,694 . c Excess from 2001. . . . 9,836,027 . d Excess from 2002 . 9,537,778 . e Excess from 2003 9,872,767 . BAA Form 990-PF (2003)

lEEA0308 L 08 /1 5/03 Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATION 13-3445910 9 Part XIV Private Operating Foundation s (see instructions and Part VII-A, question 9 ) A 1 a If the foundation has received a ruling or determination letter that it is a private operating foundation, and the rulin g is effective for 2003, enter the date of the ruling No . b Check box to indicate whether the organization is a private o eratm foundation described in section 49420)(3) or 2a Enter the lesser of the adjusted net Tax year Prior 3 years income from Part I or the minimum investment return from Part X for a 2003 b 2002 c 2001 d 2000 Total each year listed . . . b 85% of line 2a. . . . c Qualifying distributions from Part XII, line 4 for each year listed . d Amounts included in line 2c not used directl y for active conduct of exempt activities . . . . e Qualifying distributions made directly for active conduct of exempt activities . Subtract line 2d from line 2c 3 Complete 3a, b, or c for the alternative test relied upon : a 'Assets' alternative test - enter : (1) Value of all assets . . . . (2) Value of assets qualifying unde r section 49420)(3)(B)(i) . . . b 'EndowmenY alternative test - Enter 2/3 of minimum investment return shown in Part X, line 6 for each year listed . . . . . c 'SupporY alternative test - enter . (1) Total support other than gross investment income (interest, dividends, rents, payments on securities loans (section 512(a)(5)), or royaltie s (2) Support from general public and 5 or more exempt organizations as provided in section 4942(j)(3)(B)(ni ) (3) Largest amount of support from an exemp t organization (4) Gross investment income this part only if the o rganization had $5,000 or more in assets at any time during the 1 Information Regarding Foundation M anagers : a List any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation before the close of any tax year (but only if they have contributed more than $5,000) . (See section 507(d)(2) .) Ronald S . Laude r

b List any managers of the fo undation who o wn 10% or more of the stock o f a corporation (or an e q ually large portion of the ownershi p of a partnership or oth er entit y) of w hich the foundation has a 1 0% or greater interes t. None

2 Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc, Programs: Check here 11 ❑X if the organization only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds . If the organization makes gifts, grants, etc, (see instructions) to individuals or organizations under other conditions, complete items 2a, b, c, and d . a The name, address, and telephone number of the person to whom applications should be addressed :

b The form in which applications should be submitted and information and materials they should include :

c Any submission deadlines .

d Any restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other factors :

BAA TEEA0309L 08/15/03 Form 990-PF (2003) Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATION 13-3445910 Page 10 Part XV Supplementa ry Information (continued)

BAA TEEA0310L 12/ 10/03 Form 990-PF (2003) Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATION 13-3445910 Page 1 1 Part XVI-A Analysis of Income-Producing Activitie s

Enter gross amounts unless other wise indicated . Unrelated business income Excluded section 512, 513, or 51 4 (a) (b) (c) (d) (e) Business Amount Exclu- Amount Related or exemp t code sion function income 1 P rogram service revenue . cod e a Prgr Rev-Lauder Am Echad 12,264 . b Prgr Rev-Lauder Chorev Ed 1,921 . c Prgr Rev-Lauder Etz Chaim 80,343 . d Prgr Rev-Othe r 23,473 . e Progr Rev Lauder Morasha 452,829 . f g Fees and contracts from government agencies 2 Membership dues and assessments 3 Interest on savings and temporary cash investments 14 11,053 . 4 Dividends and interest from securities 14 8,005 . 5 Net rental income or (loss) from real estate . a Debt-financed property b Not debt-financed property 6 Net rental income or (loss) from personal property 7 Other investment income 8 Gain or (loss) from sales of assets other than inventory 9 Net income or (loss) from special event s 10 Gross profit or (loss) from sales of inventory 11 Other revenue : a b c d e 12 Subtotal. Add colum ns (b), (d), and (e) 19, 058 . 570 330 . 13 Total . Add line 1 2, colu mns (b), (d), and (e~ 13 589, 388 . (See wor ksheet in the instructions for line 13 to verify calculations .) Part XVI-B Relationship of Activities to the Accomplishment of Exempt Purposes

Line No . Explain below how each activity for which income is repor ted in column (e) of Part XVI-A contributed i mportantly to the T accomplishment of the organization's exempt purposes (other than by providing funds for suc h purposes) . (See instructions .) le Lauder Morasha School Tuition from Students & Tuition Subsidy from The Polis h Government lc 165 The Lauder Etz Chaim - Wrocla w la 412 The Lauder Am Echad Program lb 414 The Lauder Chorev Ed Pro ' ld Various Schools and Cams Tuition and Other Revenu e

BAA TEEA0501L 08/ 15 / 03 For m 990-PF (2003 ) Form 990-PF (2003) THE RONALD S . LAUDER FOUNDATIO N 13-3445910 Page 1 2 Part XVII Information Transfers To and Transactions and Relationships With Noncharitable

Yes I No 1 Did the organization directly or indirectly engage in any of the following with any other organization described in section 501(c) of the Code (other than section 501 (c)(3) organizations) or in section 527, relating to political organizations ? a Transfers from the reporting organization to a nonchantable exempt organization of: (1) Cash ...... 1 a 1 X (2) Other assets . 1 a (2) X b Other transactions : (1) Sales of assets to a noncharitable exempt organization 1 b X (2) Purchases of assets from a noncharitable exempt organization ...... 1 b (2) X (3) Rental of facilities, equipment, or other assets 1 b X (4) Reimbursement arrangements ...... 1 b 4 X (5) Loans or loan guarantees ...... 1 b X (6) Performance of services or membership or fundraising solicitations . . . 1 b X c Sharing of facilities, equipment, mailing lists, other assets, or paid employees . 1 C X

d If the answer to any of the above is 'Yes,' complete the following schedule Column (b) should always show the fair market value of the goods, other assets, or services given by the reportm organization If the organization received less than fair market value in any transaction or sharing arran ement, show in column d the value of the goods, other assets, or services rece ived (a) Line no . (b) Amount involved c Name of noncharitable exempt organization (d) Description of transfers, transactions, and sharing arrangemer N/A

2a Is the organization directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 501(c) of the Code (other than section 501 (c)(3)) or in section 527 ? . . . . . [] Yes X No b If 'Yes,' complete the following schedul e Name of of organization of re l N/A

have exami ned this return , including accompanyi ng #wa3aj p &er or fiduc ia ry) is based on all i nformatio n

5 G Signature o icer or t e N Preparer's g Peld signature R Pre- at ak- E pacer's Fum's name (or Bencivenga Ward & ompany , C Use yours if self-e M,. 420 Columbus Avenue, Suite 3 Only ZPdes~seand Valhalla, NY 10595-138 2

BAA

TEEA0502L Schedule B OM B N o 1545 .0047 (Form 990, 990-EZ, or 990- P F) Schedule of Contributors Dep artme nt of the Treasu ry Supplementary information for 2003 Int ernal Revenue S ervice line 1 of Form 990, 990-EZ and 990-PF (see inst Name of organization Employer Identification number THE RONALD S . LAUDE: ION 13-3445910 Organization type (check one) : Filers of: Secti on: Form 990 or 990-EZ 501 (c)( ) (enter number) organi zatio n 4947(a)(1) nonexe mpt charitable trus t not t reated as a private foun dation 527 political organizatio n

For m 990- PF X 501 (c)(3) e xem pt private foun d ation 4947(a)(1) no nexempt charitable trust treated as a private found atio n 501 (c)(3) taxable private found atio n

Check i f your organi zation is covere d by the General Rule or a Special Rule (Note : Only a section 501(c)(7), (8), or (10) organization can check box(es) for both the General Rule and a Sp ecial Rule - see ins tructions .)

General Rule - For organizations filing Form 990, 990-EZ, or 990•PF that received, during the year, $5,000 or more (in money or property) from any one contributor . (Complete Parts I and II )

Special Rule s - For a section 501(c)(3) organization filing Form 990, or Form 990-EZ, that met the 33-1/3% support test of the regulations under sections 509(a)(1)/170(b)(1)(A)(vi) and received from any one contributor, during the year, a contribution of the greater of $5,000 or 2% of the amount on line 1 of these forms (Complete Parts I and II ) For a section 501(c)(1), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from any one contributor, during the year, aggregate contributions or bequests of more than $1,000 for use exclusively for religious, charitable, scientific, literary, or educational purposes, or the prevention of cruelty to children or animals . (Complete Parts I, II, and III .) U For a section 501(c)(7), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from any one contributor, during the year, some contributions for use exclusively for religious, charitable, etc, purposes, but these contributions did not aggregate to more than $1,000 . (If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc, purpose . Do not complete any of the Parts unless the General Rule applies to this organization because it received nonexclusively religious, charitable, etc, contributions of $5,000 or more during the year .) . . . . b. $

Caution : Organizations that are not covered by the General Rule and/or the Special Rules do not file Sch edule B (Form 990, 990- EZ, or 990-PF) but they must check the box in the heading of their Form 990, Form 990-EZ, or on line I of their Form 990-PF, to certify that they do not m eet the filing requirements of S chedule B (Form 990, 990-EZ, or 990-PF). BAA For Paperwork Reduction Act Notice , see the instructions Schedule B (Form 990, 990•EZ, or 990-PFD (2003) for Form 990 and Form 990-EZ.

lEEA070 1 L 12 / 10/03 Schedule B (Form 990 , 990-EZ , 990-PF) (2003) 1 to 1 of Pa rt 1 Name of organization Employer identification numbe r THE RONALD S . LAUDER FOUNDATION 13-344591 0

Part I Contributors (See Specific Instructions .)

(a) (b ) W (d) Number Name , address, and ZIP + 4 Aggregate Type of contribution contribution s I

Person X 1 ------Mrs Estee Lauder Payroll 767 Fifth Avenue ______$___ 6L900L000_ Noncash (Co mplete Par t II if the re New Y or k,-New-York-10153 ______is a noncash contribution .)

Number Name , address, and ZIP + 4 Agg regate Type of cont ribution contributions

Person ------Payroll $ Noncash (Complete Part II if there is a noncash contribution .) ------

Number Name , address, and ZIP + 4 Agg regate Type of contributio n contributions

Person ------Payroll $ Noncash (Complete Part II if there is a noncash contribution .) ------(d) Number Name, address, and ZIP + 4 Aggregate Type of contributio n contributions

Person ------Payrol l $ Noncash (Complete Part II if there is a noncash contribution .)

Number Name, address, and ZIP + 4 Aggregate Type of contribution contributions

Person ------Payrol l $ Nonca sh (Com p lete Part II if th ere is a non cas h contri bution )

(d) N umber Name, address, and ZI P + 4 Aggregate Type of contributio n contributions

Person ------Payroll $ Noncash (Complete Part II if there is a noncash contribution .)

BAA lEEA0702L 08/13/03 Schedule B (Form 990, 990-EZ, 990-PF) (2003) Schedule B (Fo rm 990, 990 -EZ, or 990 -PF) (2003) 1 to 1 of Part I I Name of organizatio n Employer Identification number THE RONALD S . LAUDER FOUNDATION 13-344591 0

Part II Nontesh Prope rty (See Specific Instructions .)

(a) (b) No. from Desc ri ption of noncash prope rty given F MV (or estimate) Date reieived Par (see instructions)

N/A ------

)t (a b c d No. from Description of nonc sh property given FMV (or estimate) Date re eived Part I a (see instructions) c

------[ ------

(a) No. from Description of noncash property given I FMV (orestimate) Date received Part I (see instructions )

------[ ------

(a) (b) W (d) . No. from Description of noncash property given FMV (or estimate) Da te received Part I (see instructions )

------

(a) No. fro m Description of noncash property given I FM V (or estimate) Date receive d Part I (see instructions)

------[ ------

(a) bc dc No. from Description of noncash property given F MV (or estimate) Date (d) Part I (see instructions)

------

Schedu le B (Form 990, 990-EZ, or 990-PF) (2003)

lEEA0703 L 08 /1 3/03 Schedule B (Form 990 or 1 to 1 of Part III Name of organiza tion Employer Identification number THE RONALD S . LAUDER FOUNDATION 13-3445910 Exclusively rel igiou s, charitable, etc, individual contributions to section 501(c)(7), (8), or (10) organizations aggregating more than $1,000 for the year (Com p lete cols (a) through (e) and the follow ing li n e ent ry.) For organizations comp leting Part III, enter total of exclusively religio us, charitable, etc , contributions of $1,000 or less for the year . (Enter this information once - see instructions.) . N/A (a) I (b) (d) No.art from I PurposeUse of gift of gift Description of how gift is hel d P N/A ------

(e) Transfer of gift Transferee's name, address, and ZIP + 4 Relationshi p of transferor to transferee ------(a) (b) (c) (d) No. from Purpose of gift Use of gift Description of how g ift is held Part ------

(e) Transfer of gift Transfe ree's n ame , add ress, and ZIP + 4 Relation sh ip of tran sfe ror to tran sfe ree ------

(a) (b) (c) (d) No. from Pu rpose of gift U se of gift De scription of how gift is held Pa rt ------

(e) Transfer of gift Transferee 's name , add ress, and ZIP + 4 Re lationsh ip of tran sfe ror to t ran sfe re e ------(a) (b) (c) (d) No. from Purpose of gift Use of gift Description of how gift is held Part ------

(e) Transfer of gift Transferee's name, address, and ZIP + 4 Relationship of transferor to transferee ------

BAA Schedule B (Form 990, 990-EZ, or 990-PF) (2003) lEEA07041 08/13/03 Depreciation and Amortization OMB No . 1 545-0 1 72 Form 4562 (Including Information on Listed Property ) 2003 Department of the Treasury Attachment Internal Revenue SeMCe ► See separate Instructions . ► Attach to your tax return . Sequence No 67 Name ( s) shown on return Business or activity to which this form relate s Identifying number THE RONALD LAUDER FDN, INC FORM 990P F 13-344591 0 Part I Election To Expense Ce rtain Prope rty Under Section 179 Note: If you have any listed property, complete Part V before you complete Part 1. 1 Max imum am ount. See page 2 of the instructions for a higher limit for certain businesses ...... 2 Total cost of section 1 79 property placed in service (see page 2 of the instructions) ...... 2 3 Threshold cost of section 179 property before reduction in limitation ...... 3 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, e nter -0- ...... 5 Dollar limitation for tax year. Subtract line 4 from line 1 . If zero or less, e nter -0-. If married filing separately, see page 2 of the instructions ...... 5 (a) Descri ption of property (b) Cost ( busi ness use only) (c) Elected cos t 6

7 Listed property. Enter the amount from line 29 ...... 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 ...... 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 ...... 9 10 Carryover of disa llowed deduction from line 13 of your 2002 Form 4562 ...... 10 11 Business inoorrB lirritalion 6nter the stialler ofbusinessinoorre(not lessthan zero) orlire 5 (see instn~ons) ...... 11 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 ...... 12 13 Cffrymuofcisallataddedxtion m2004.Addlines 9 and 10, lessline 12 ...... ► 1 3 Note: Do not use Part II or Part 111 below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Do not include listed prop( 14 Spe cial depreciation allowance for qualified property (other th an listed property) placed in service during the tax year (see page 3 of the instructions) ...... 14 15 Property subject to section 1680( 1 ) election (see page 4 of the instructions) ...... 15 16 Other depreciation (including ACRS) (see page 4 of the instructions . . T? ...... 16 7 Part III MACRS Depreciation (Do not include listed property.) (See page 4 of the instructions. Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2003 ...... 18 If you are ele cting under section 168 (1)(4) to group any assets placed in service during the tax yea r into one or more genera l asset accounts, check here ...... - 111100E Section B -Assets Placed in Service During 2003 Tax Year Using the General Deprec (b) Month and (c) Basis for depreciation (a) Classification of property year placed in (business/investment use (d) R ecovery (e) Convention (f) Me th o d (g) Depreci ation deductio n service only - see instructions) I period 19a 3-year property b 5-year property c 7-year property d 1 0- ear property e 15-year property f 20-year property 25 , S/L h Residential rental 27.5 MM S2 property 27.5 MM S/L I Nonresidential real 39 , MM S/L property MM S2 Section C - Assets Placed in Se rvice 2003 Tax Year the Alternative Dell iation 20a Class life S/L b 12-year 12 s. S/L c 40 yrs. MM Sit Part IV Summary (see page 6 of the instructions) 21 Listed property. Enter amount from line 28 ...... 21 22 Total. Add amounts from line 12, lines 14 through 1 7, lines 1 9 and 20 in column (g), and line 21 . Enter here and on the appropriate lines of your return . Partnerships and S co orations -see instr . 22 532,378 .0 0 23 For assets s hown above and placed in service during the current year, enter the p ortion of th e b asis attributable to section 263A costs ...... 23 For Paperwork Reduction Act Notice, see separate instructions . IS A Form 4562 (2003) STF FED5085F 1 Federal Statements Page 1

Client 482 THE RONALD S. LADDER FOUNDATIO N 13-3445910 11/11/0 4 1 1 :1 3AM Statement 1 Form 990-PF, Part I, Line 11 Other Income

Program Service Revenue . . . . . $ 570,330 . Total $ 570,330 .

Statement 2 Form 990-PF, Part I, Line 16a Legal Fees

(a) (b) Net (c) (d) Expenses Investment Adjusted Charitable Per Books Income Net Income Purposes Legal - See statement 15 . $ 26,522 . $ 29,664 . Total $ 26,522 . 0 . 0 . $ 29,664 .

Statement 3 Form 990-PF, Part I, Line 16b Accounting Fees

(a) (b) Net (c) (d) Expenses Investment Adjusted Charitable per Books Income Net Income Purpose s Accounting fees - see statement 15 $ 213 078 . $ 1,333 . $ 190 812 . Total 213,078 . $ 1,333 . 0 . 190,812 .

Statement 4 Form 990-PF, Part f, Line 16c Other Professional Fees

(a) (b) Net (c) (d) Expenses Investment Adjusted Charitable per Books Income Net Income Purposes Other professional fees-See Stmt 15 $ 420,938 . $ 372 013 . Total $ 420,938 . 0 . 0 . 372,013 .

Statement 5 Form 990-PF, Part I, Line 18 Taxes

(a) (b) Net (c) (d) Expenses Investment Adjusted Charitable per Books Income Net Income Purpose s Real estate tax ...... $ 55 396 . $ 55,396 . Total 55,396 . 0 . 0 . 55,396 . 2003 Federal Statements Page 2 1

Client 482 THE RONALD S . LAUDER FOUNDATION 13-3445910 1 1 1 /1 1/04 1 1 13AM 1

Statement 6 Form 990-PF, Part I, Li ne 23 Other Expen ses

(a) (b) Net (c) (d) Expenses Investment Adjusted Charitable per Books Income Net Income Purpose s Advertising $ 8,458 . $ 8,458 . Bank fees . . . 428 . 428 . Currency Exchange 1,105 . 1,105 . Equipment Rental & Maint . 105,876 . 106,044 . Insurance . . 90,852 . 90,852 . Miscellaneous ...... 239,630 . 240,665 . Office Supplies . . 70,303 . 70,344 . Other Direct Program Costs . . . 526,309 . 528,594 . Postage , Messengers , and Fed Ex 75,103 . 76,475 . Storage ...... 3,396 . 3,396 . Subscriptions . . 2,787 . 2,787 . Telephon e 156,534 . 158,284 . Temporary Help 24,489 . 25,350 . Total $ 1,305,270 . $ 0 . 0 . $ 1,312,782 .

Statement 7 Form 990-PF, Part II, Line 1 4 Land, Buildings, and Equipment

Accum . Book Fair Market Category Basis Deprec . Value Value Furniture and Fixtures $ 830,764 . $ 733,867 . $ 96,897 . $ 96,897 . Machinery and Equipment 538,723 . 450,874 . 87,849 . 87,849 . Buildings 20,631,069 . 1,338,510 . 19,292,559 . 19,292,559 . Improvements 2,866,837 . 462,514 . 2,404,323 . 2,404,323 . Land 326 769 . 326 769 . 326 769 . Total 25,194,162 . $ 2,985,765 . 22,208,397 . 22,208,397 .

Statement 8 Form 990-PF, Part II, Line 15 Other Assets

Fair Market Book Value Valu e Security deposit s ...... $ 22,053 . $ 22,053 . Total 22,053 . 22,053 .

Statement 9 Form 990-PF, Part II, Line 21 Mortgages and Other Notes Payable

Other Notes Payable Balance Due Lender's Name : J .P . Morgan Chase Relationship of Lender : Bank Date of Note : 11/30/2001 1 2003 Federal Statements Page 3

Cl ient 482 THE RONALD S. LAUDER FOUNDATIO N 13-3445910 11/1 1/04 1 1 :13AM

Statement 9 (continued) Form 990-PF, Part II, Line 21 Mortgages and Other Notes Payabl e

Other Notes Payabl e Balance Due Maturity Date : 7/24/2005 Repayment Terms : Renewed Annually Interest Rate : 2 .87% Security Provided : Guaranteed by Ronald S . Lauder Purpose of Loan : Operating Loa n Desc . of Consideration : Cash FMV of Consideration : 0 . Original Amount : 1,500,000 . Balance Due : $ 11,750,000 .

Lender's Name : Jewish Renaissance FDN Inc . Relationship of Lender : Related non-profit-org . Date of Note : 10/26/200 1 Maturity Date : 12/31/2004 Repayment Terms : Renewed Annually Interest Rate : Security Provided : None Purpose of Loan : Operating Loan Desc . of Consideration : Cash FMV of Consideration : 0 . Original Amount : 4,500,000 . Balance Due : 4,200,000 .

Lender's Name : Bank Austria Creditanstalt AG Date of Note : 10/30/200 3 Maturity Date : 12/31/2006 Repayment Terms : Annually plus interest Interest Rate : 2 .16 % Security Provided : Purpose of Loan : Construction, Lauder Bus Sch Desc . of Consideration : Cash FMV of Consideration : 0 . Original Amount : 4,544,616 . Balance Due : 4 , 544 ,6 16 .

20 494 616 . Total 20,494,616 .

Statement 1 0 Form 990-PF, Part III, Line 3 Other Increases

Unrealized appreciation of Marktbl Sec $ 468 837 . Total 468,837 . 12003 Federal Statements Page 4

Client 482 THE RONALD S . LADDER FOUNDATION 13-344591 0 11/1 1 /04 11 :13AM

Statement 1 1 Form 990-PF, Part VII-B, Li ne 5c Exemption from Tax on Taxable Expenditures

See statement 12 which references Statement # 18

Statement 1 2 Form 990-PF, Part VIII, Line 1 List of Officers, Directors, Trustees, and Key Employee s

Title and Contri- Expense Average Hours Compen- bution to Account/ Name and Address Per Week Devoted sation EBP & DC Othe r Dr George Ban Exe . VP & CEO $ 358,100 . $ 0 . $ 0 . Vaci utca 19/21, Suite 707 5 0 1052 Budapest Hungary,

Joan Braunstein Vice President 198,250 . 51,503 . 0 . 200 Wiston Drive # 1703 5 0 Cliffside Park, NJ 0701 0

Rachel Laufer Vice President 105,000 . 25,268 . 0 . 36 Wedgewood Lane 5 0 Lawrence, NY 1155 9

Ronald S . Laude r Chr/Dir/Pres 0 . 0 . 0 . 767 Fifth Ave, Suite 4200 1 5 New York, NY 10153

See Attached List JT~yr /~ 0 . 0 . 0 . ;Vy None

Total 661,350 . 76,771 . 0 .

~aoTma jr,- AT FNP 0 F STET Iff /!f The Ronald S. Lauder Foundation A Statement Attached to and made a pa rt of Form 990 -PF "Return of Private Foundation " E. I.N. #13-3445910 December 31 , 2002 STATEMENT #1 4

Additional list to Statement 13 for Pa rt VIII, Line 1 Non-paid Officers , Directors, Trustees and Key Employees

Expense Title & average hours Compensation Contribution account, per week (If not paid, to benefit othe r Name & Address devoted to position enter zero) plans allowance

Jo Carole Lauder Director $0 $0 $0 71 East 71st Street 2 Hours New York, NY 1002 8

Richard Parsons Director $0 $0 $0 c/o AOL Time Warner, Inc. 2 Hour s 75 Rockefeller Plaza - 29th floor New York, NY 1001 7

Rabbi Chaskel O . Besser Director $0 $0 $0 767 Fifth Ave. Suite 4600 2 Hours New York, NY 1015 3

Steven Schwager Director $0 $0 $0 c/o JDC, 711 Third Ave. 2 Hours New York, NY 1001 7

Micki Edelsohn Director $0 $0 $0 1106 Berkeley Road 2 Hours Wilmington, DE 19807

Israel Singer Director $0 $0 $0 112-1 4 Jewel Avenue Forest Hills, NY 11375 Kalman Sultanik Director $0 $0 $0 120 East 81st St.- Apt #8C 2 Hours New York, NY 10028

Jacob Z. Schuster Treasurer $0 $0 $0 767 Fifth Ave. Suite 4300 10 Hours New York, NY 10153

Marjorie S. Federbush Vice Chairman & Director $0 $0 $0 1020 Fifth Avenue 2 Hours New York, NY 1002 8

11/11/2004 directors statement FY03 990PF .xls The R onald S. Lauder Foundation A Statement Attached to and made a part of Form 990-PF " Return of Private Foundation" E.I.N. #13-344591 0 December 31, 2002 (Continued) STATEMENT #14

Additional list to Statement 13 for Part VIII, Line I Non-paid Officers, Directors, Trustees and Key Employees

Expense Title & average hours Compensation Contribution account, per week (If not paid, to benefit othe r Name & Address devoted to position enter zero) plans allowance

Lev Leviev Director $0 $0 $0 c/o L.L.D. Diamonds 2 Hours 52 Bezalel Street 52521 Ramat Gan, Israel

Michael Berenbaum Director $0 $0 $0 1124 South Orlando Avenue 2 Hours Los Angeles, CA 9003 5

Menachem Z. Rosensaft Director $0 $0 $0 179 East 70th St 2 Hours New York, NY 10021

Rabbi Jacob Biderman Director $0 $0 $0 Lessinggasse 1/20 2 Hours 1020 Vienna, Austria Rabbi Pinchas Goldschmidt Director $0 $0 $0 c/o Moscow Choral Synagogue 2 Hours Street 8 Moscow, 101 000 Russia Rabbi Irving Greenberg Director $0 $0 $0 c/o Jewish Life Network 2 Hours 6 East 39th Street New York, NY 1001 6 Malcolm Hoenlein Director $0 $0 $0 c/o Conference of Presidents 2 Hours 633 Third Avenue New York, NY 10017

TOTALS $0 $0 $0

The Foundation does not directly pay the salaries of, or maintain or contribute to, the retirement plans for these individuals . Payments are made by the Foundation to another entity that pays the salaries and related employee benefits for these individuals .

11/11/2004 directors statement FY03 990PF.xls The Ronald S. Lauder Foundatio n A Statement Attached to and made a pa rt of Form 990-PF "Return of Private Foundation " E . I.N. #13-344591 0 12/31/2003

STATEMENT #1 5

Part I , Line 16a - Legal Fees Patterson, Belknap, Webb & Tyler LLP $ 17, 064 Legal fees for foreign operations 9, 458 Total Legal Fees $ 26, 522

Part I, Line 16b - Accounting Fees Bencivenga Ward & Company CPA's, P.C. $ 165, 837 Grant Thornton LL P 26, 662 Accounting fees for foreign operations 20, 579 Total Account ing Fees $ 213, 078

Part I, Line 16c - Other Professional Fees Tova Ben Nun 62 ,000 Karen Lavine 30 ,000 Dr. Leo Pavlat 25 ,000 Benjamin Reis 20 ,000 Joshua Spinner 18,600 Becca Lazarova 18,000 Maxim Slutski 10,000 Grazyna Pawlak 9,600 RSL Management Corporation Payroll & Data Processing 8,500 Jaron Engelmaye r 5,670 Sasha Pecaric 5,000 Beverly Epstein 4,000 Other consultants, including foreign , under $4,000 204,568

Total Other Professional Fees $ 420,938 The Ronald S . Lauder Foundation A Statement Attached to and made a pa rt of Form 990 -PF "Return of Private Foundation" E.I .N . #13-344591 0 December 31 , 2003

STATEMENT 1 6 Part IX-A - Summary of Direct Charitable Activitie s

Lauder Morasha School , Warsaw - In September 1994, the Foundation opened the Lauder Morasha School . Its educational program $1,653,190 meets all of the requirements of the Polish Ministry of Education with a special emphasis o n teaching Jewish tradition and culture, as well as the English language . At the end of 2003, it consisted of first through seventh grades with 261 students .

Pol ish Jewish Community Centers and Youth Clubs - The Foundation operates Jewish community centers and youth clubs in Warsaw, Wroclaw, Lodz, 966,530 Gdansk, and Krakow. The center in Warsaw is open seven days a week with a variety o f lectures, dinners, sports events and other cultural and religious activities .

Jewish Community Programs , Germany- The Foundation operates educational outreach programs for Russian Jewish immigrants in 1,241,335 Germany. The programs assist the Russian Jewish immigrants in developing a bette r understanding of Jewish tradition, both at home and in the synagogue . In addition, the programs help to foster unity between the Russian and German Jewish youth .

The Lauder Business School in Vienn a Construction costs for the Lauder Business School in Vienna . The goal of the school is to be a high level Jewish university operating in Europe . Its purpose is to offer an excellent education, a Jewish life for young people while in a university setting, and a means to maintain the Jewis h community in that area . 4,894,61 6

$8,755,67 1

11/11/2004 stat 16 FY03 990PF .xls The Ronald S . Lauder Fo undatio n Statement 1 7, Attached to and made a part of Form 990-PF "Return of Private Foundat ion " E.I.N. #1 3-344591 0 December 31 , 2003 STATEMENT #1 7

Part XV Line 3 - Grants a nd Contributions Paid During the Year or Approved fo r Fu ture Paymen t

Foundation status Purpose of gran t Recipient Name and add ress of re cipient or award Amount

a. Paid during the year

Lauder Chabad School Foreign equivalent of General Support 395,000 Rabbiner-Scneerson-Platz 1 Augarten publicly supporte d A-1090 Vienna, Austria organizatio n (Educational org )

Lauder Javne Jewish Community School Foreign equivalent of General Support 408 ,000 Budakeszi Ut 48 publicly supported H-1121 Budapest, Hungary organization (Educational org )

Jewish Heritage Council Publicly supported General Support 101 ,000 World Monuments Fun d organization 949 Park Avenue New York, NY 1002 8

Sephardic Synagogue Community Center Fo reign equ ivalent of Gene ral Suppo rt 15 ,000 Verein Sfardischer Rabbinat in Wein pub lic ly supported Rauscherstrasse 23/1 3 organization Vienna 1200 (Re ligious org. ) Austria

American Jewish Publicly supported Jewish Camp - Szarvas 28,755 Joint Distribution Committee organization Kindergarten - Mins k 711 Third Avenu e New York, NY 1001 7

Union of Jewish Congregations of Poland Foreign equivalent of General Support 47,000 6 Twarda Stree t publicly supported Warsaw, Poland 00-95 0 organization (Religious org )

Fundatia Ronald S . Lauder Romania Foreign equivalent of Kindergarten - Bucharest 150,000 15 lliu Barasch Street , sector 3 private foundatio n Bucha re st, Roman ia

Irgun Shiurai Torah Publicly supported Lauder L'viv School 75,000 1541 - 41 st Stre et organizatio n B ro oklyn , NY 1121 8

Ronald S Lauder M .O.O. Foreign equivalent of Lauder Schneor School 180,000 22 Kropotkina Stre et private foundation Minsk 220002 , Belarus

Yeshiva & University Students For The Publicly supported Lauder Lech Lecha Youth Center 32,000 Spi ritual Revival ofth e Soviet Jewry, Inc. organizatio n 2525 Amsterdam Avenue - Suite 103 New York, NY 10033

Stowarzyszenie Midrasz Project Grant Support for Monthly Jewish 84,000 6 Twarda Street Magazine 00-104 Warsaw Poland

1 1/1 1/200 4 stet 17 F Y03 9 90PF x is T he Ronald S. Lauder Foun dation Statement 17, Attached to and mad e a part of Form 990-PF " Return of Private Foundation " E.I .N. #13-3445910 December 31, 200 3 STATEMENT #7 7

Pa rt XV Line 3 - Grants and Cont ribut ions Paid During the Year or Approved for Future Payme nt

Foundation status Purpose of grant Recipient Name and add re ss of re cipient or award Amoun t

a. Paid du ring the yea r

Prague Jewish Community Foreign equivalent of Kindergarten - Pragu e 75,000 Maiselova 18, Prague 1 publicly supported Lauder Gur Aryeh 110-00 Czech Republic organization Elementary School, Lauder Oh r (Religious org .) Hadash High School

Havurah Lelimud Jahadut Fo reign equivalent of Jewish School - Wroclaw 59,000 ul Bujwida 43/3 publicly suppo rted General Support Wroclaw 50-345 , Polan d organizatio n (Rel igious org )

Ame rican Friends of Bar Kai Publicly supported Russia Kinderga rtens 207,599 34 Mounta in Avenue organizatio n Monsey , NY 1009 5

Judische Gemeinde in Hamburg Fore ign equ iva lent of Support fo r Lauder K inderga rten , 90,000 Schaferkampasllee 2 7 publicly sup ported Hamburg 20357 Hamburg , Germany organization (Religious org .)

World ORT Union Fo reign equivalent of Grant for ORT Technology Cente rs 98,750 126 Albe rt Stre et publicly suppo rted in Kishniev (Chisinau) Moldova , London , England NW1 7N E organization Riga Lativa , Vilinus Luithuania , and Sofia Bulga ria

Acheinu Bnei Yisroel Foreign equivalent of Grant for Purchase of the New 0 Bratei Sino v publicly supported School Building Lviv, Ukranine Acheinu Lauder Israel Gymnasium organization a/c 7290 L'viv (Religious org . ) 70-79070 Ukraine

American Friends of Kiev Jewish Publicly supported Support for the Lauder Camp 50,000 Commun ity organization Shuva, Ukraine 1726 46th Stre et Brooklyn, NY 11204

Conference of European Rabbis Foreign equ ivalent of Support for Confere nce 0 87 Hodford Roa d publicly supported London NW11 8NH organization England (Religious org .)

Riga Community Center "Aleph" Foreign equ ivalent of Support for Szarvas Program 11 ,000 Skolas 6 publicly supported Riga 1320, Latvi a organization (Religious o rg )

Colel Chabad Publicly s uppo rted Grant for the construction of an 150,000 806 Easte rn Parkway organization educational and relig ious B ro oklyn , NY campus for the Jewish Communi ty in Minsk , Belarus

11 /11 /2004 scat 17 FY03 990PF. xls The Ronald S. Lauder Foundation Statement 17 , Attached to and made a pa rt of Form 990 -PF "Return of Private Foundation " E.I.N. #13-3445910 December 31 , 2003 STATEMENT #1 7

Pa rt XV Line 3 - Grants and Contr ib utions Paid During the Year or Approved for Future Payment

Founda tion status Pu rpose of gran t Re ci pient Name and add re ss of re cip ient or awa rd Amount

a. Paid during the yea r

Yeshiva of Kishinev VLNY - Vaad Publicly supported Hebrew Academy Moldova 20,000 L'Hatzolas Nidchei Yis roel organizatio n 1744 57th St reet B ro oklyn , NY 11204

American Friends of Thorat Chajm, Inc Publicly suppo rted General Support 0 9 Tokay Lane organization Monsey, NY

Synagogen Gemeinde Cologne Foreign equivalent of Support for the Lauder Morijah 305,000 Roonstrasse 50 publicly supported School, Cologn e 50674 Cologne, Germany organization (Religious org )

The Jewish Historical Institute, Warsaw Fo reign equivalent of Suppo rt fo r the Archival 0 ul Tlomackie 3/5 publicly suppo rted Preservation Project 00-0 90 Warsaw, Po land organization (Religious org )

Lithuanian Jewish Commun ity Fo reign equivalent of Kinderga rten- Vilnius 10,200 Pylimo 4 publicly suppo rted 20006 Vi lnius , Lith uania organization (Religious org )

The Jewish Community of Estonia Foreign equivalent of General Support 14,000 16 Karu Street publicly supported Tallinn 120 Estoni a organization (Religious org .)

Central Union of Jewish Religious Foreign equivalent of Kindergarten- Bratislava 10,000 Communities in th e Slovak Republic publicly supported Bratislava , Slovakia organization (Religious org )

Jewish Community of Kaliningrad Fore ign equ ivalent of Jewish Camp- Szarvas 6,200 Saltykov - Schednn 2 publicly su pported Kaliningrad, Russia 236040 organization (Re ligiou s org.)

Lauder Lea Deutsch Schoo l Foreign equivalent of General Support 144 ,924 Petrinjska St 7 publicly supported Zagreb , Croatia organization (Educational org )

The Jewish Museum in Pragu e Foreign equ ivalent of General support 10 ,000 U Stare skoly 1 , Prague , 1 , 11001 publicly sup ported Czech Republ ic organization (Educational org )

Sha lom Euro pa Is raelitische Geme inde Foreign equ ivalent of Support for The Lauder Cho rev 200,000 Wurzburg publicly supported Center in Wurzbu rg Valentin Be cker Stra sse 11 organization Wu rzburg 97072 , Germany (Re ligiou s org .)

1 1 / 1 1/2004 slat 1 7 FY03 990 PF. xls The Ronald S. Lauder Foundation Statement 17, Attached to and made a part of Form 990 - PF " Return of Private Foundation " E.I.N . #13-3445910 December 31 , 2003 STATEMENT #1 7

Part XV Line 3 - Grants and Contributions Paid During the Year or Approved for Future Paymen t

Foundation status Purpose of grant Recip ient Name and address of reci pient or award Amount

Pan stwowe Museum Foreign equivalent of Support for the Auschwitz-Birkenau w O swiecimia publicly supported Auschwitz-Birkenau Preservation 156, 187 32-603 Oswiecim 7 organization Project Poland (Educational org )

Other Various General Support 51 , 31 5

Tota l $3,184,93 0

1 1/ 11 /2004 slat 1 7 FY03 990 PF. xls The Ronald S . Laude r Foundation Statement 17, Attached to and made a part of Form 990-PF "Retu rn of P rivate Foundat ion " E.I.N. #13-3445910 De cembe r 31, 2003 STATE M ENT #17

Pa rt XV Line 3 - Grants and Contributions Paid Du ring the Year or Approved fo r Future Payment

Foundation status Purpose of gran t Recipient Name and add ress of recipient or award Amount

b . App roved fo r fu ture payment

Colel Chabad Publicly supported Grant for the constru ction of an 894 ,000 806 Eastern Parkway organization educational and re ligious Brooklyn , N Y campus for the Jewish Community in Minsk, Belaru s

World ORT Un ion Foreign equivalent of Grant for ORT Technology Cente rs 137,500 126 Albe rt Street publicly supported in Kishniev (Chisinau) Moldova , London , England NW1 7N E organization Riga Lativa, Vilinus Luithuania , and Sofia Bulgaria

Synagogen Gememde Cologne Foreign equivalent of Construction grant for the Lauder 835,000 Roonstrasse 5 0 publicly supported Morijah School in Cologne, 50674 Cologne , German y organization Germany (Religious org .)

Israel itische Gemeinde Wue rzburg Foreign equivalent of Construction grant for The Lauder 800,000 Valentin-Becker Strasse 11 publicly supported Chorev Center in Wurzburg Wuerzburg , Germany organization (Edu c Org )

Ronald S Laude r Verein zur Foreign equivalent of Lauder Business School in Vienna 905,384 Forderung der Jugend in Osterreich a private foundation (capital grant for constructio n Hofze ile 18-20 and renovation ) Vienna , Au stri a

Lauder Lea Deutsch School Fore ign equivalent of Lauder Lea Deutsch Jewish 83,586 PeVinjska St. 7 publicly suppo rted Elementa ry School , Zag re b, Zagreb, Croatia organization (Educ. Croatia O rg)

Total $3,655,470

11/11/2004 slat 17 FY03 990PF .xls The Rona ld S . Laud er Foundation A Stat ement Atta ch ed to and made a pa rt of Form 990 -PF "Retu rn of P riva te Found ation" E.I.N . #13- 3445910 Decembe r 31 , 2003

STATEMENT 1 8

Part VII-B, L ine Sa(4) - Statement required by Regulations sectio n 53.4945-5(d)

For financial reporting purposes, the income/expense items include the operations of four foreign affiliates, Th e Ronald S . Lauder Hungary Foundation (Hungary), the Ronald S . Lauder Verein zur Forderung der Jugend in Osterreich (Austria), the R. S . L. Judisches Lehrhaus GmbH (Germany), and the Lauder Morasha School Foundation (Poland) . The 2003 Form 990-PF has been prepared using the consolidated financial statements of The Ronald S . Lauder Foundation, which include the operations of the four foreign affiliates . Effectively, The Ronald S . Lauder Hungary Foundation, the Ronald S . Lauder Verein zur Forderung der Jugend in Osterreich, the Ronald S . Lauder Judisches Lehrhaus GmbH, and the Lauder Morasha School Foundation operate as extensions of the U .S operations i n Hungary, Austria, Germany and Poland, respectively . Each entity has been established as a separate legal entity in the country in which it operates so as to comply with local rules and regulations regarding real property ownership, etc . The Ronald S .Lauder Foundation receives the appropriate reports from the The Ronald S . Lauder Hungary Foundation, The Ronald S. Lauder Judisches Lehrhaus GmbH, and the Ronald S. Lauder Verein zur Forderung der Jugend in Osterreich, which are private foundation equivalents, in order to satisfy the expenditure responsibility requirements The Lauder Morasha School Foundation is a foreign equivalent of a publicly-supported organization, and thus The Ronald S . Lauder Foundation is not required to exercise expenditure responsibility with respect to "grants" made thereto .

Part V II-B Line Sc - Statement required by Regulations section 53 .4945-5(d)

2002 Grants

NOTE - To date , all funds received in 2002 by the grantees listed below have been expensed , and to the knowledge of The Ronald S . Lauder Foundation , none of the grantees has made a diversion of funds . In addition , to date , The Ronald S . Lauder Foundation has received expenditure responsib ility repo rts from all of the grantees listed below .

Grantee Other consultants, including foreign, Ronald S . Lauder Hunga ry Foundation Addres s Vaci utca 19-21 , Budapest 1052 , Hunga ry Date of grant 12/28/2001 Amount of Grant- $104 ,000 Purpose of grant General suppo rt of Hungarian Foundation du ring 2002 Amount spent by grantee $104 ,000 Date of grantee report 10/6/2003 Expenditure report Yes Verification of grantee reports, if any None Results of verification of grantee report s Not applicable

Grantee Ronald S. Laude r Ve rein z ur Foder ung der Jugend in Osterrei ch Address 767 Fifth Avenue, Suite 4200, New York, NY 1015 3 Date of grant 12/28/2001 Amount of Grant- $ 42,000 Purpose of grant General support for the Lauder Chabad School Amount spent by grantee $ 42,000 Date of grantee report 10/6/2003 Expenditure report Yes Verification of grantee reports, if any None Results of verification of grantee reports Not applicable

Grantee Ronald S . Lauder M.O .O . Address 22 Kropotk ina Street , M insk , 220002, Be larus Date of grant 1ti2si2oo 1 Amount of Grant- $ 180,000 Purpose of grant Suppo rt operat ions of Lauder Schneor Educationa l Center Amount spent by grantee $ 180,000 Date of grantee report 10/6/2003 Expenditure report Yes Verification of grantee reports, if any Non e Results of verification of grantee reports Not app licable

9/13 11/11/2004 slat 18 FY03 990PF .xls T he Ronald S . Lauder Fo undatio n A Statement Attached to and ma de a part of Fo rm 990-PF " Ret ur n of Private Foundat io n" E.I .N. #1 3- 3445910 De cem be r 31 , 2003

Grantee Midrasz Address ul Twarda 6 , 00-104 Warsaw, Poland Date of grant 12/28/2001 Amount of Grant- $ 84,000 Purpose of grant For publication and distribution costs of M idrasz Magazine Amount spent by grantee $ 84,000 Date of grantee report 10/10/2003 Expenditure report Yes Verification of grantee reports, if any Non e Results of verification of grantee reports Not applicable

Grantee Ro nald S . L aude r J ud ische s Lehrhaus GmbH Address Rykestrasse 53, 10405 Berlin, Germany Date of g rant 12/28/200 1 Amount of Grant- $ 250,000 Pu rpose of grant Support for general activities of Lehrhaus Amount spent by grantee $ 250,000 Date of g rantee repo rt 11/18/2003 Expend itu re report Yes Verification of g rantee reports, i f any None Resu lts of verification of grantee repo rts Not applicable

Grantee Fundatia Ronald S . Lauder, Romania Address 15 Iliu Barasch Street, Sector 3, Bucharest, Romania Date of grant 12/28/200 1 Amount of Grant- $ 169,200 Purpose of grant Support operations and renovation costs of Lauder Reut Kindrgrtn in Bucharest for 200 2 Amount spent by grantee $ 169,200 Date of grantee report 10/6/2003 Expenditure report Yes Verification of grantee reports , if any None Results of verification of grantee repo rts Not applicable

10/13 11 /11 /2004 slat 18 FY03 990PF .xls The Ronald S . Lauder Foundatio n A Statement Attached to and made a part of Form 990-PF "Return of Private Foundation" E.I.N. #13-344591 0 December 31 , 2003 2003 Grants Expenditure repo rts for the following grants are to be rece ived in 2004 and to the knowledge of the Foundation there is no diversion of funds :

Grantee Ro nald S . L auder Hunga ry F ound ation Address Vaci utca 19-21, Budapest 1052, Hungary Date of grant 12/20/2002 Amount of Grant- $ 147,50 0 Purpose of grant General support of Hungarian Foundation during 200 3 Amount spent by grantee Date of grantee report Expenditure report Verification of grantee reports, if any Results of verification of grantee reports

Grantee Ro nald S . Lauder Verein zur Fode rung de r Jugend in Osterrei ch Address 767 Fifth Avenue, Suite 4200, New York, NY 1015 3 Date of grant 12/20/2002 Amount of Grant- $ 42,000 Purpose of grant General support for the Lauder Chabad School Amount spent by grantee Date of g rantee repo rt Expenditure report Verification of grantee reports, if any Results of verificat ion of grantee repo rts

Grantee Ronald S. Lauder M.O .O. Address 22 Kropotkina S treet , Minsk, 220002, Belarus Date of grant 12/20/2002 Amount of Grant- $ 180,000 Purpose of grant Suppo rt operations of Lauder Schneor Educa tional Cente r Amount spent by grantee Date of grantee report Expenditure report Verification of grantee reports, if any Results of verification of grantee report s

Gra ntee Midrasz Address u l. Twarda 6 , 00-104 Warsaw, Poland Date of grant 12/20/2002 Amount of Grant- $ 84 ,000 Purpose of grant For publication and distribution costs of Midrasz Magazine Amount spent by grantee Date of grantee report Expenditure repo rt Verification of grantee repo rts , if any Results of verification of grantee reports

11 /13 11 /11 /2004 slat 18 FY03 990PF .xls The Ronald S . Lauder Foundatio n A Stateme nt Attached to and made a pa rt of Fo rm 990 -PF "Ret urn of Private Foundat ion" E.I.N. #13 -344591 0 De cember 31 , 2003 Grantee Ronald S . Lauder Jud isches Lehrhaus GmbH Address Rykestrasse 53, 10405 Berlin, German y Date of grant 12/20/2002 Amount of Grant- $ 293,05 0 Purpose of grant Support the general activities of the Lehrhaus Amount spent by grante e Date of grantee report Expenditure report Verification of grantee reports, if any Results of verification of grantee reports

Grantee Fun datia Ronald S. La uder, Rom ania Address 15 lliu Barasch Street, Sector 3, B ucharest, Romania Date of grant 12/20/2002 Amount of Grant- $ 150,000 Purpose of grant Support the Lauder Reut Kindergarten in Bucharest Amount spent by grantee Date of grantee report Expenditure report Verification of grantee reports, if any Results of verification of grantee reports

12/13 11 /11 /2004 slat 18 FY03 990PF .xls Asset Depreciation Sho rt Report - Sorted by -ASS = f A /C# Page : 1 Company : RSL Foundation & Affiliates Year End : 12/31 /03 Date: 09/13/04 Method : 1 - BOOKS Std Conv Appl ied F ile: F:WK14WINWKDATAIRSL-FDTN Time : 14:24:45 Range: 1800 ,- 1800 - FURNITURE - NY - 1891 - LAUDER MORASHA Include : All assets

r- Inc ludes Section 17 9 Date Acq Description Meth/Life Cost Sec. 179 Depr Basis Bea A/ Dear Curr Depr End A /Depr ASSET A/C#: 1800- 1800 - FURNITURE - N Y 09/20/03 A Furniture - New York SL P/ 5 00 666 .08 0.00 66608 0 .00 44.41 44.41 Gra nd totals : 1800 - 1800 - FURNITURE - NY (1 assets) 666.08 0 .00 666.08 0 .00 44 .41 44.4 1

ASSET A/C#: 1801 - FURNITURE - VIENNA 01 / 0 1/88 Furniture - Vienna SLP/ 5.00 18 ,550.00 0 .00 18 ,550.00 18,550 .00 0 .00 18 ,550.00 01 /01 /89 Fu rniture - Vienna SLP/ 5. 00 3,730 .50 0 .00 3,73050 3,730 .50 0.00 3,730 .50 01 /01 /89 Fu rniture - Vienna SLP/ 5. 00 560 .33 0 .00 560 . 33 560 .33 0.00 560 . 33 01 /01 /89 Furniture - Vienna SLP/ 5 00 532 . 00 0 00 532 00 532 .00 0.00 532 .00 01 /01 /89 Fu rnitu re - Vienna SLP/ 5. 00 1 , 833 .33 0 .00 1,833.33 1 , 8 33 .33 0.00 1 , 8 33 .33 01 /01 /89 Furni tu re - Vienna SLP/ 5.00 260 . 17 0.00 260 . 17 260. 17 0. 00 260. 17 01 /01 / 89 Furniture - Vienna SLP/ 5 .00 2 , 161 .00 0. 00 2 , 16100 2 , 161 . 00 0. 00 2,161 .00 01 /01 /89 Furni tu re - Vienna SLP/ 5 00 1,761 .37 000 1 , 78 1 .37 1 ,761 .37 0.00 1 ,781 .37 01 /01 /89 Furni tu re - Vienna SLP / 5 00 77917 0. 00 779 . 17 779. 17 0. 00 779. 17 01 /01 /89 Furni tu re - Vienna SLP / 5 00 1,466.00 0.00 1,466 .00 1,466 .00 0. 0 0 1, 468 .00 01/01/90 Fu rniture - Vienna SLP/ 5 00 68. 00 0 . 00 68. 00 68 .00 0 .00 680 0 01 /01 /91 Fu rniture - Vienna SLP/ 5.00 522. 00 0 . 00 522. 00 522 .00 0 .00 522. 00 01 /01 /91 Fu rn iture - Vienna SLP/ 5. 00 1 ,609. 00 0 .00 1 ,609.00 1 , 609 .00 0 .00 1,609 .00 01 /01 /92 Furniture - Vienna SLP/ 5 00 630.00 0 .00 630.00 630 .00 0 .00 630 .00 0 1 /0 1 /92 Furniture -Vie nna SIP/500 718 .00 0 .00 718 . 00 718 .00 0. 00 718 .00 07/01/97 Furniture - Vienna SLP/ 5 . 00 6,000 .00 0 .00 6,000 .00 6,000 .00 0. 00 6,000 .00 07/01 /99 Furni ture - Vienna SLP/ 5 . 00 500, 000 .00 0.00 500,000 . 00 350 , 000 .00 1 00 , 000. 00 450, 000.00 Grand totals : 1801 - FURNITURE - VIENNA (17 assets ) 541 , 180 .87 0.00 541 , 180 . 87 391 , 180.87 100 ,000. 00 491 , 180. 87

ASSET A/C# : 1802 - FURNITURE - WARSAW 01/01 /92 Furni ture - Warsaw SlP/ 5 .00 625 .30 0 . 00 625 .30 625.30 0. 00 625 .30 01 /01 /93 Furni tu re - Warsaw SLP/ 5 .00 695 .90 0. 00 695 .90 695. 9 0 0. 00 895.90 01 /01 /93 Furni tu re - Warsaw SLP/ 5 .00 1 , 667 .84 0. 00 1 , 687 .84 1 ,667 . 84 0 . 00 1,667.84 01/01 /93 Furniture - Warsaw SLP/ 5.00 347. 51 0 .00 347.51 347 . 51 0 .00 347. 51 01/01 /93 Fu rnitu re - Warsaw SLP/ 5 .00 122. 38 0 .00 122.38 122 . 38 0 .00 122. 38 01/01 /93 Fu rniture - Wa rsaw SLP/ 5.00 359. 20 0 .00 359. 2 0 359 20 0 .00 359 2 0 01/01/93 Fu rn iture - Wa r saw SLP/ 5.00 1,675.98 0 00 1 ,875. 98 1 , 675 .98 0 .00 1 ,875. 98 01 /01 /94 Fu rn iture - Warsaw SLP/ 5. 00 50294 0 00 50294 502.94 0 .00 502 .94 01 /01 /94 Fu rniture - Warsaw SLP/ 5. 00 1,84759 0 .00 1 ,847 . 59 1 , 847.59 0 .00 1 , 847 .59 07/01/96 Fu rn iture - Warsaw SLP/ 5. 00 8, 161 00 0.00 8, 181 . 00 6,161 .00 0.00 8, 181 .00 01 /01 /00 Fu rn iture - Polish Youth Cl ubs SLP/ 5. 00 5, 474. 1 8 0.00 5,474 . 1 8 3 , 284. 52 1 , 094 .84 4, 379 .36 02/ 12/02 Furniture - Warsaw SLP/ 5 00 715 . 15 0.00 715 . 15 131 . 11 143 .03 274 . 14 0 3/01 /0 2 Furniture - Wa rsaw SLP ! 5 .00 546 .90 0.0 0 54690 91 . 15 109 . 38 200 .53 03/11 /02 Furni tu re - Warsaw SLP/ 5 .00 678 .45 0. 00 678 .45 11 3. 08 135 89 248 .77 Grand totals: 1802 - FURNITURE - WARSAW (14 assets) 21, 420 .32 0.00 2 1, 420 .32 17 ,625.5 0 1 , 482. 94 19 , 1 08 .44

ASSET A/C#: 1803 - FURNITURE - LMS 07/01/99 Furnit ure - Lauder Mora sha Sch ool SLP/ 5.00 5 3 ,95 1 . 99 0 .00 53,951 .99 37, 76 6 . 40 1 0,790 . 40 48,556.80 07 / 01 /99 Fu rn iture Lauder Mo rasha School SLP/ 5. 00 2 ,084.70 0 . 00 2,084.70 1,45929 418 . 94 1 .878. 23 07/01 /99 Fu rn iture Lauder Morasha Schoo l SLP/ 5. 00 1 ,373.50 0 . 00 1,373.50 96 1 . 45 274 . 70 1,236.1 5 07/01 /99 Fu rn iture Lauder Morasha School SLP/ 5. 00 53380 0 .00 53380 37366 106 .76 48 0 .42 07/0 1 /9 9 F urniture Laude r Morash a S c hool SLP/ 5.00 54.131 36 0 .00 54,131 .36 37, 89 1 .95 10,826 .27 48, 7 1 8 . 22 07/01 /99 Fu rniture Lauder Morasha SLP/ 5. 00 11,381 . 8 1 0 .00 11,381 81 7,96726 2,276 .36 10, 243.82 07/01 /99 Fu rniture Lauder Morasha School SLP / 5. 00 33,240 . 49 0 .00 33,240 .49 2 3, 268.35 8 , 848 .10 29,916 .45 07/0 1189 Furni tu re La uder Morasha School SLP! 5 00 7,062 .84 0. 00 7,062 .84 4 ,943. 99 1,4 1 2.5 7 8 . 356 .58 01 101 /00 Furni tu re - Lauder Morasha Schoo l SLP/ 5 .00 5,57 4 .00 0. 00 5,574 .00 3,344. 40 1, 114. 8 0 4, 459 .20 07/0 1/01 Furnitu re Lauder Morasha School SLP / 5 .00 66 8 . 78 0. 00 668 78 200 64 133 78 3 34 .40 08/21 /02 Furni ture - Lauder Morasha School SLP / 5 . 00 1 ,353 . 43 0. 00 1,353 .43 1 12 .79 270.69 383 .48 10/10 /02 Furni ture - Laude r Morasha School SLP/ 5 . 00 1,963 65 0 00 1,963 65 98 1 8 392.73 490 .91 10 / 31 / 02 Furniture - Lauder Morasha Schoo l SLP/ 5 .00 2 .291 30 0 00 2,29130 11 4 .5 7 458 .26 572 .83 12 / 02/02 Furniture - Lauder Morasha Schoo l SLP / 5 .00 2 .10294 0 00 2,10294 35 .05 420 59 455 .64 03/19103 A Sto rage Cab inets SLP / 5 .00 9 31 .78 0 . 00 931 76 0 00 155. 29 1 55 .29 04 / 15/03 A Glass Doors SLP / 5 00 1,37292 0 . 00 1,372 .92 0 .00 205 .94 205 .94 0 9/15/03 A Ch airs SLP/5.00 1,006.9 5 0 00 1,00695 0 .00 67 . 1 3 67 1 3

s1-;?4T .~q i Asset Depreciation S hort Report - Sorted by ASSE . A/C# Page : 2 Company : RSL Foundation & Affiliates Year End: 12/31/03 Method : 1 - BOOKS Date : 09/13/04 r- Inc ludes Section 179 Date Acq Description Meth/Life Coat Sec. 179 Depr Basis Bea A/Denr Curr Depr End A/Depr ASSET A/ C# : 1803- FURNITURE - LM S 12/15/03 A Tables & Chairs SLP/ 5 00 1,073 . 4 3 0 .00 1,073 .43 0.00 17 .89 17 .89 Grand totals : 1 803 - FURNITURE - L M S (1 8 assets) 182 ,099.65 0 .00 182 ,099.65 118 ,537.9 8 35,989 .1 8 154,527.1 6

A SSET A/C# : 1 8 04 - FURNITURE - RSL H U N G ARY 01/01/93 Furniture - RSL Hungary FD SLP/ 5 .00 11 , 49300 000 1 1 ,493. 00 11 , 493 .00 0. 0 0 1 1 ,493. 00 Grand totals : 1 8 04 - FURNITURE - RSL HU NGAR Y (1 assets) 11 ,49300 000 11 , 493 . 00 11 , 493 .00 0 . 00 11 ,493 . 00

ASSE T A /C#: 1 8 05 - FURNITURE - GERMAN Y 07/01/97 Furniture - Germany SLP/ 5 00 30,563.51 0 .00 30,5 6 3 . 51 30 ,5 6 3 .51 0 .00 30,563 .51 Grand totals : 1 805 - FURNITURE - GERMANY (1 assets ) 30 ,563 51 0 00 30 , 563 .51 30 ,563. 51 0.00 30 , 583. 51

ASSET A/C# : 1 806 -1 8 08 - FU RNITURE - G EN EAO 02/25/03 A Furniture - RSL Genealogy SLP/ 5.00 873 .28 0 .00 873. 26 0.0 0 160. 10 1 60. 10 Grand totals: 1 808 -1 806 - F U R NITU RE - GE N E A O (1 assets) 87 3 .26 0 .00 873. 2 6 0 .00 160.10 160 . 1 0

A SSET AIC#: 1 80 8 - FURNITURE - R SL B ULGARIA 07/24/03 A Chairs & Desks SLP/ 5 .00 961 .69 0 00 961 .69 0 .00 96 . 17 96 .17 08/15/03 A Bookcases SLP/ 5 .00 892. 96 0 . 00 892 . 96 0 .00 7441 74 . 4 1 G rand totals : 1 808 • F U RN I TU RE - RS L B U LGAR IA ( 2 assets) 1 ,854. 65 0 . 00 1,854 .65 0.00 170 .58 170 .58

ASSET A/C# : 18110- FURNITURE -KRAKOW 07/01 /97 Furn itu re - Krakow SLP/ 5.00 2, 394 .45 0 .00 2 , 394.45 2 ,394. 45 0 .00 2 , 394. 45 01 /01 /99 Furn iture - Krakow SLP/ 5.00 67884 0 00 678 .84 543. 08 135 .76 678.84 07/01/99 Furniture - Krakow SLP/ 5. 00 2, 103 .42 0.00 2 , 103. 42 1,47238 420. 68 1 ,893. 08 Grand totals : 1810 - FURNITURE - KRAKOW (3 assets) 5,176 .71 0.00 5 , 176. 71 4, 409 91 556. 44 4,966 .35

ASSET A/C#: 1811 - FURNITURE - ETZ CHAI M 07/01 /00 Fu rniture ETZ Chaim SLIP/ 5 .00 5 , 517.93 0. 00 5, 517 . 93 2 , 758 .97 1 , 103. 59 3 ,882 .58 07/01 /01 Fu rniture ER Chai m SLP / 5 00 1 , 595.21 0. 00 1 , 595 . 21 478 .56 31904 797 .60 07/01 /01 Fu rn iture ETZ Chaim SLIP/ 5 .00 509. 45 0. 00 50 9 . 45 152 .84 1 01 .89 254. 73 08/ 15/03 A Cabinets & shelves SLP/ 5 .00 654. 16 0 00 654 .16 0. 00 54.51 54 .51 08 / 15/03 A Furn iture & Flxtu re s SLP/ 5 .00 642 .60 0 .00 842 .80 0. 00 5355 53 .55 Grand totals : 1811 - FURNITURE - ETZ CHAIM (5 assets) 8,919 . 35 0 .00 8 ,919 .35 3 , 390. 37 1,632 .58 5, 022 .95

ASSET A/C# : 1813 - FURNITURE - LEHRHAU S 07/01 /00 Furni tu re - Lehrhaus SLP/ 5. 00 3, 931 .27 0 .00 3 ,931 . 27 7 , 985 . 83 786.25 2 , 751 . 88 Grand totals: 1813 - FURNITURE - LEHRHAUS (1 assets) 3, 931 .27 0 .00 3 ,931 . 27 1,96563 786.25 2 , 751 . 8 8

ASSET A/C#: 1818 - FURNITURE - CHOVREV EDU C 07/01 /00 Furniture - Lauder Chorev Educ . SLP/ 5 .00 8 , 533. 02 0. 00 8, 533 . 02 4,266 .50 1,706 .60 5,973 . 10 07 /01 /01 FURNITURE - CHOVREV EDUC SLP / 5 .00 9,860.54 0. 00 9, 86 0 . 54 2,958 .16 1 ,972 . 11 4, 930 .27 Grand totals : 1818 - FURNITURE - CHOVREV EDUC (2 assets) 18 ,393 56 0.00 18,393 .56 7,224.66 3,678 .71 10,903 .37

ASSET A/C# : 1817 - FURNITURE - FRANK FELLOW S 07/01 /00 Fu rniture - Lauder Frank Fe llows SLP / 5.00 4,192.20 0.00 4,1 92.20 2,096.10 838.44 2 ,934 .54 Grand totals: 1817 - FURNITURE -FRANK FELLOWS (1 assets) 4,192 .20 0.00 4,192.20 2,096 .10 838.44 2 ,934.54

ASSET A/C#: 1820 - EQUIPMENT - NEW YORK 01 /01 /89 Equipment - New York SLP/ 5 . 00 1 , 786. 13 0.00 1,786.13 1 ,78 6 .13 0. 00 1, 786. 13 07 /01 /98 Equi pment - New York SLP/ 5 . 00 328.95 0 00 328.9 5 328 .95 0. 00 328 . 9 5 07/01 /96 Equi pment - New York SLP/ 5 . 00 3 , 121 .00 0. 00 3,121 .00 3,1 2 1 .00 0.0 0 3,1 21 . 00 07 101 /97 Equi pment - New York SLP/ 5 . 00 13 , 885 55 0. 00 13,865 55 13,865 .55 0. 0 0 13 ,885 .55 07/01/98 Equipment - New York SLP / 5 .00 43 ,524. 51 0 . 00 43,524 51 39 ,1 72.05 4 ,352 . 48 43, 524 51 07/01/98 Equipment - New York SLP / 5 .00 26 , 193. 4 2 0 00 26,193.4 2 2 3,57 4 06 2,619 .36 28 ,1 9 3 . 42 01 /01 /99 Equi pment - New York SLP / 5 .00 4,71239 0 00 4,71239 3,769 .92 942 . 4 7 4 ,712 .39 07/01/99 Equi pment - New York SLP / 5 00 25,261 . 09 0 . 00 25,261 09 1 7,682 77 5 ,052 . 22 22,734 . 99 07/01/99 Equ i pment -New York SLP/ 5. 00 1 , 489 . 50 0 . 00 1,489 50 1,042.6 5 297 90 1 ,34 0 .55 07/01 /00 Equ i pment - New York SLP/ 5 00 1 , 915 84 0 . 00 1,915 .84 957.9 2 383 . 1 7 1 ,3 41 .09 0 1/01 101 Equipment - New York SLP/ 5. 00 6, 901 . 18 0 . 00 6,901 18 2 ,760. 48 1 ,380 24 4.14072 Asset Depreciation Short Rep ort - Sorted b y ASSE i AIC# Page : 3 Company: RSL Foundation & Affiliates Year End : 12/31/03 Method : 1 - BOOKS Date : 09/13/04 r - Includes Section 179 ------Date A cq Descrl ptlon Meth/Life Cost Sec . 1 79 Depr Basis Be a A lD ear Curr D epr E n d A/ D e p r ASS E T A/C#: 1 8 20 -E Q UIPM E N T - NE W YO R K 01/01/01 Equipment - New York SLP/ 5 .00 1,189 .53 0.00 1,189 .53 475 .82 237 91 713.73 05/01/03 A Equipment - New York SLP/ 5 00 2,157 .37 0.00 2,157 .37 0 00 287 .65 287.6 5 Grand totals : 1 820 - EQUIPMENT - NEW YO RK (13 assets) 132 ,446 46 0. 00 132, 446 . 46 108 , 537 .30 15 ,553 . 38 124,090 .6 8

ASSET A1C#: 1821 - EQUIPMENT - VIENN A 01/01/88 Equi pment - Vienna SLP/ 5 .00 9 , 100 .00 0 . 00 9 , 100 00 9 , 100 . 00 0. 00 9, 100 .00 01 101 /90 Equipment - Vienna SLP/ 5 00 180. 00 0 .00 180. 00 180 00 0. 00 180. 00 01 101 /90 Equi pment - Vienna SLP/ 5 .00 2 .41500 0 00 2 ,415. 00 2, 415 .00 0. 00 2 , 415. 00 01/01/92 Equi pment - Vienna SLP/ 5 00 1 ,758. 00 0 .00 1 ,758. 00 1 , 758 .00 0. 00 1,75800 0 1101 /92 Equ ipment - Vienna SLP/ 5 00 4,25200 0 .00 4, 252 . 00 4, 252 .00 0 .00 4,25200 07/01/97 Equ ipment - Vienna SLP/ 5 00 4,00000 0. 00 4, 000 . 00 4, 000 .00 0 .00 4 ,000 . 00 Grand totals : 1821 - EQUIPMENT - VIENNA (6 assets ) 21 ,705. 00 0.00 21 , 705 . 00 21 , 705 .00 000 21 ,705 . 00

ASSET A/Cp : 1822 • EQUIPMENT - WARSA W 01 /01 /93 Equ ipment - Warsaw SLP/ 5. 00 2,48000 0 00 2 , 48 0 .00 2 ,480.00 0 .00 2, 48 0 00 01 1 01 /94 Equipment - Warsaw SLP / 3 . 00 1 , 797 .46 0 .00 1 , 797.46 1,797 . 46 0 .00 1,797 .46 07/01/96 Equipment - Warsaw SLP / 500 10,174 .11 0 .00 10,174.11 10,174.11 0 .00 10,174 .11 07/01 /97 Equipment - Warsaw SLP / 5 . 00 5 , 746 .14 0 .00 5 , 746. 14 5, 746 . 14 0. 00 5, 746 . 14 07/01 /97 Equi pment - Warsaw SLP/ 5 .00 7,941 . 15 0.00 7 ,941 . 15 7, 941 . 15 0 . 00 7 ,941 . 15 07/01 /97 Equi pment - Wa rs aw SLP/ 5 .00 9 ,758. 78 0.00 9 ,758 . 78 9, 758 .78 0 . 00 9 ,758. 78 07101 /97 Equi pment - Wa rsaw SLP/ 5 .00 5 ,795. 00 0.00 5,795.00 5 , 795 .00 0 00 5 ,795. 00 07/01 /97 Equipment - Warsaw SLP/ 5 00 2, 093.82 0.00 2, 093 . 82 2,093.82 0 .00 2,093.82 07/01/98 Equ ipment - Warsaw SLP/ 5 00 3, 212 . 37 0. 00 3, 212 . 37 2,891 .1 2 321 .25 3,212 . 37 07/01 /98 Eq uipment - Warsaw SLP/ 5 00 1 , 100 .00 0. 00 1,10000 990.00 110 .00 1 , 100 .00 07/01 /99 Equ ipment - Warsaw SLP/ 5. 00 4, 122 .89 0. 00 4, 122 .89 2,886. 03 824 .58 3, 710 .87 07/01/99 E qui p m ent - Warsaw SLP/ 5 .00 5,611 .59 0. 00 5,611 .59 3,928 . 1 2 1 ,1 22.32 5, 050 .44 02/01 /01 Equ ipment - Warsaw SLP/ 5. 00 1,066 .75 0 . 00 1 , 066 .75 408 . 92 21 3.35 622 .27 07/01/01 Equ ipment - Wars aw SLP/ 5. 00 1 , 498 .00 0 00 1 , 498 .00 449 . 40 299.80 749 .00 03106/ 02 Equi pment - Warsaw SLP/ 5 00 1 ,091 .40 0 .00 1 ,091 . 40 181 . 90 218 . 28 400. 1 8 05/15/02 Equi pment - Wa rs aw SLP/ 5 .00 4,167. 0 5 0 .00 4 .1670 5 555 .6 1 833. 41 1,389.02 05/ 15/02 Equi pment - Wa rsaw SLP/ 5 00 542.90 0 00 542. 90 72 . 39 108 . 58 180. 97 06/06/02 Equ ipment - Warsaw SLP/ 5 .00 1,007. 05 0 00 1 ,007 . 05 117 .49 201 . 41 318 . 90 08/ 15/02 Equ ipment - Wa rsaw SLP/ 5 00 500 60 0 00 500 . 80 58 .40 100 . 12 158 . 52 09/17/02 Equ ipment - Warsaw SLP/ 5 .00 716 .0 0 0 .00 716 . 00 47 .73 143 . 20 190 .9 3 09/23/02 Equ ipment - Warsaw SLP/ 5 00 5, 573 . 75 0 00 5, 573 . 75 371 .58 1 , 114 .75 1,486 .33 05/15/03 A Computer Equi pment SLP/ 5. 00 582 . 40 0. 00 58240 0. 00 77 .65 77 .65 05/15/03 A Computer Equ i pment SLP/ 5. 00 786 .70 0 00 786 .70 0. 00 104 .89 104 .89 06/15/03 A A ir Cond iti oner SLP/ 5 . 00 1 . 088 .45 0 .00 1,068.45 0 . 00 124.85 124.65 Grand totals : 1822 - EQUIPMENT - WARSAW (24 assets) 78 , 4 3 4 36 0 .00 78,434.36 58, 745 . 15 5 ,9 1 8.04 64,663 .1 9

ASSET A/C#: 1823 - EQUIPMENT - RSL MORASH A 01/01194 Equ i pment - RSL Mo rasha SLP / 3 00 1 5 ,453. 77 0 .00 15 ,453. 77 15, 453 77 0. 00 15 ,453 77 07 101 /98 Equ i pment - RSL Morasha SLP / 5 00 9 ,405. 9 0 0 .00 9 ,405. 90 9, 405 .90 0 . 00 9 ,405 90 07/01 /97 Equ ipment - RSL Mo rasha SLP/ 5. 00 5,750 . 8 2 0.00 5 ,750. 8 2 5,75082 0 . 00 5 ,750 . 8 2 07/01 /98 Equ ipment - RSL Mo rasha SLP/ 7. 00 2 52 .60 0.00 252. 60 169 62 36 . 09 205 . 71 07/01/99 Equipment Lauder Morasha School SLP/ 5. 00 5, 279 .00 0.00 5 ,279. 00 3, 695 30 1 , 0 55 . 80 4 ,751 . 10 07/01 /99 Equipment - Lauder Mo rasha Schoo l SLP! 5. 00 43, 2 0 2 .42 0 . 00 43, 2 0 2 .42 30 ,241 . 68 8 ,6 40 48 38,882 .16 07/01/99 Equ ipment - Lauder Morasha School SLP/ 5. 00 47,30 2 .42 0 . 00 47, 302 42 33 , 111 8 8 9,460 .48 42. 5 7 2 . 1 8 07/01/99 Equ ipment - Lauder Morasha Schoo l SLP/ 5. 00 9 52 .20 0 . 00 9 5 2 20 6 66 54 1 9 0 .44 856 .98 01 /01 /00 Equi pment - Lauder Morasha School SLP/ 5 .00 2 , 4 3 7.38 0 . 00 2 , 437 .38 1 ,462 . 44 487.48 1 , 949 .92 01/01/00 Equi pment - Lauder Morasha School SLP/ 5 .00 1 , 125. 4 5 0 . 00 1 , 125 45 675 2 7 225.09 900.36 01 1 01 /00 Equl pement - Lauder Morasha School SLP/ 5 .00 2,736.48 0 . 00 2 , 736 .48 1 ,641 . 90 547 .30 2,189 .20 01/01 /00 Equi pment - Lauder Morasha School SLP/ 5 .00 1,192.77 0 .00 1,192.77 775 65 238 . 55 954. 20 01 101 /00 Equ i pment - Lauder Morasha School SLP/ 5 .00 527. 1 5 0 .00 527 15 31 6 . 29 105. 43 421 . 7 2 01/01/00 Eq uipm en t - La uder Moras ha S chool SLP / 5 00 8,350.7 4 0 00 8 , 350. 74 5, 010 . 45 1 ,670. 15 6,680.60 07/01/00 Eq uipm e nt - Laude r Mora sha S cho ol SLP/ 5.00 7, 447 16 0. 00 7 ,447. 16 3.72358 1,48 9 4 3 5 ,213.01 0710 1/00 Equipmetn - Lauder Mo rasha School SLP/ 5 00 3,608 .6 7 0. 00 3,608 .6 7 1, 8 04 .33 72 1 . 7 3 2,526 .06 07/01/00 Equipment - Lauder Mo rasha Schoo l SLP/ 5 00 575 1 6 0.00 575.16 2 87 .58 115 .03 402 .61 07/01/00 Equipm e nt - Lauder Mo rasha Schoo l SLP/ 5.00 977 .66 0. 00 977.66 488 83 195 .53 68436 07/01/0 1 Equipment - Lauder M ora sha School S LP/ 5.00 1,59257 0 00 1 ,592 .57 4 77 77 318 .5 1 796 .28 0

sTlr,;O9 Asset Depreciation Short Report -Sorted by ASSE , A/C# Page: 4 Company: RSL Foundation & Affiliates Yea r End: 12/31/03 Method : 1 - BOOKS Date: 09/13/04 r- Includes Section 179 - -1 Date Acq Description Met h /L ife Cost Sec. 179 Depr Basle Bea A/Dear Curr Depr End A/Depr

ASSET A/C# : 1823 -EQUIPMENT - RSL MORASH A 07/01 /01 Equ i pment - Lauder Mo rasha School SLP/ 5 00 1 ,498. 75 0 .00 1 ,498 75 449 .63 299 .75 749 . 38 01 / 11 /02 Equ i pment - Lauder Morasha School SLP/ 5 00 1 , 337. 65 0 .00 1 ,337. 65 267 .53 267.53 535 . 06 02/ 14 /02 Equ ipment - Lauder Morasha School SLP/ 5. 00 887. 16 0. 00 88716 162 .65 177. 43 340 .08 08/21 /02 Equipment - Lauder Morasha School SLP/ 5. 00 1,40937 0 00 1 , 409 . 37 117 .45 281 . 87 399 .32 09/02 / 02 Equ ipment - Lauder Morasha Schoo l SLP/ 5 . 00 10,069 .06 0 . 00 10, 069 . 06 671 .27 2 ,013. 81 2,68508 10/31 / 02 Equ ipment -Lauder Morasha Schoo l SLP/ 5 00 674.45 0. 00 674 .45 33 72 134. 89 168 81 11/26/02 Equi pment - Lauder Morasha School SLP / 5 .00 631 .65 0 . 00 631 65 21 08 126 .33 147. 39 03/15/03 A Computer Equ ipment SLP / 5 .00 7, 277 .22 0 . 00 7 , 277 .22 0 00 1 ,212 .87 1 ,212 . 87 03/15/03 A Computer Equipment SLP/ 5 .00 765 . 12 0 . 00 765 . 12 0 .00 127 . 52 127 . 52 09/15/03 A Air Cond iti oner SLP/ 5 .00 1 , 629 .70 0 .00 1 ,629. 70 0. 00 108 .65 108 .85 12/ 15/03 A Securi ty Cameras SLP/ 5 .00 1 , 071 34 0 .00 1 ,071 34 0. 00 17 .86 17 .88 Grand totals : 1823 -EQUIPMENT - RSL MORASHA (30 assets) 185 , 421 . 79 0 .00 185 ,421 79 118 ,822 71 30,266 .03 147, 088 74

ASSET A/C#: 1824 -EQUIPMENT - RSL HUNGARY 01 /01 /93 Equipment - RSL Hunga ry FD SLP/ 5. 00 939. 00 0. 00 939 . 00 939 . 00 0. 00 939. 00 07/01 /96 Equipment - RSL Hunga ry FD SLP/ 5. 00 1 ,000.00 0. 00 1 , 000 . 00 1 , 000 .00 0. 00 1 ,000. 00 07/01/97 Equipment - RSL Hungary SLP/ 5. 00 793. 29 0. 00 793 . 29 793 . 29 0. 00 793.29 07/01 / 00 Equ ipment - RSLF Hungary FD SLP / 5 .00 20 , 733 .34 0 . 00 20 , 733 .34 10 , 366.67 4,146 .67 14 ,513. 34 07/01 1 00 Equipment - RSL Hungary FD SLP / 5 00 1, 183 . 13 0 . 00 1 , 183 . 13 59 1 .57 236 .63 828 2 0 Grand totals : 1824 -EQUIPMENT - RSL HUNGARY (5 assets) 24, 648 76 0 . 00 24,648 .76 13 ,690.53 4,38330 18 ,073. 83

ASSET A/C # : 1825 -EQUIPMENT - RSL BERLI N 07/01 /97 Equi pment - Germany SLP/ 5.00 10 , 381 .91 0 .00 10 ,381 . 91 10 ,381 . 91 0 .00 10,381 .91 07/01 /97 Equi pment -Germany SLP/ 5.00 3 , 354.15 0 .00 3 ,354. 15 3,354.15 0 00 3, 354 . 15 07/01/98 Equipment - Germany SLP/500 1,549.06 0 .00 1,549 . 06 1 , 39 41 5 1 54. 9 1 1,54906 Grand totals: 1825 -EQUIPMENT - RSL BERLIN (3 assets) 15 ,285. 12 0. 00 15 ,285 . 12 15, 130 . 21 154. 91 15, 285 . 1 2

ASSET A/C# : 1828 - EQUIPMENT - GENEALOG Y 07/01 /97 Equipment - Genealogy Project SLP/ 5 . 00 2,263 .80 0.00 2, 26 3 .80 2 , 2 63 .80 0. 00 2,26380 07/01 / 97 Equipment - Genealogy Project SLP/ 5 .00 1 , 4 9 2 . 29 0.0 0 1 , 492 .29 1 , 492 .29 0. 00 1 , 492 .29 07/01 /98 Equipment - Genealogy Proj ect SLP/ 5 00 70437 0 .00 704 . 37 8 33 .92 70. 45 704. 37 07/01/99 Equipment - Genealogy Project SLP/ 5 .00 1 , 936 .00 0 .00 1 ,936.00 1 , 355.20 38720 1 , 742. 40 01 /01 /01 Equi pment - Genealogy Project SLP / 5 .00 2 , 331 . 15 0 .00 2 , 331 . 15 932.46 466 .23 1 , 398 .69 Grand totals : 1828 - EQUIPMENT - GENEALOGY (5 assets ) 8 , 727 .61 0 .00 8 , 727. 61 6 ,677.67 923 .88 7 ,601 .55

ASSET AIC# : 1828 - RSL BULGARIA 07/01 /97 Equ i pment - Bulgaria SLP/ 5. 00 2 ,947. 00 0 .00 2 ,947. 00 2, 947 . 00 0.00 2 , 947 .00 01 /01 /01 Equ i pment - Bulgaria SLP/ 5 00 1 ,060. 00 0.00 1 ,060. 00 424 .00 212. 00 636 .00 01/01 /01 Equ ipment - Bul garia SLP/ 5. 00 895. 00 0. 00 895. 00 358 . 00 179. 00 537. 00 07/01 /01 Equ ipment - Bulgaria SLP/ 5 . 00 732 . 00 0. 00 732 .00 219 .80 146 . 40 366.00 0 7/01/01 Eq uipme nt - Bulgari a SLP/ 5 .00 931 . 00 0.0 0 931 .00 279 30 186. 20 465.50 Grand totals: 1828 - RSL BULGARIA (5 assets ) 6, 565 . 00 0. 00 6,565 .00 4, 227 .90 723. 60 4, 951 .50

A SSET A!C#: 18 30 - EQUIPMENT - RSL H UN G ARY 07/01/98 Equipment - RSL Hungary (Szarvas) SLP/ 5 00 4, 460 00 0 . 00 4, 460 .00 4,014.00 446 .00 4 ,460. 00 07/01/98 Equipment - RSL Hungary (Szarvas) SLP/ 5 00 2 , 900 00 0 . 00 2 , 900 .00 2 ,610.00 290 . 00 2 ,900. 00 01/01/99 Equipment - Krakow Youth Club SLP/ 5 .00 6 , 271 01 0 .00 6 , 271 . 01 5 ,016 . 80 1,254 .21 6,27101 07/01/99 Equipment - Krakow Youth Club SLP/ 5 .00 2 , 215. 31 0 .00 2 , 215 .31 1 ,550. 71 443 .06 1,99377 01101/00 Equipment -Krakow Youth Clubs SLP/ 5 .00 2,00399 0 .00 2 ,003. 99 1 ,202. 40 40080 1,603. 20 07/01/01 Equipment - Krakow Youth Club SLP/ 5 .00 3 ,53 1 . 00 0.00 3 ,531 . 00 1 ,059 . 3 0 70620 1,76550 07/01/01 Equipment - Krakow Youth Club SLP/ 5.00 1 ,398 . 0 0 0.00 1 ,39 8 . 0 0 419 . 40 279. 60 699 .00 02112/02 Equipment - Krakow Youth Club SLP/ 5.00 662 . 41 0. 00 662 . 41 121 . 44 1 32. 48 25392 09/15/03 A Computer Equipment SLP/ 5.00 590 . 78 0. 00 590 . 78 0 00 39 39 39 .39 12/15103 A Computer Equipment SLP/ 5.00 2, 281 .09 0 00 2,28109 0 00 38 0 2 380 2 Grand totals: 1 8 30 - EQUIPMENT - RSL HU NG ARY (10 assets) 26,313 .59 0 00 26,31 3 .59 15,994 05 4,02976 20,02 3. 8 1

A SSET AIC#: 1 831 -EQUIPM E N T - LA U D E R ETZ C .

sT~rAi9 Asset Depreciation Sho rt Report - Sorted by ASSE i A/C# Page : 5 Company: RSL Foundation & Aff iliates Year End : 12/3 1/03 Method: 1 - BOOKS Date : 09/13/04 r- Includes Secti on 17 9 Date Acq Description Meth/Life Cost Sec . 179 Depr Basis Bea A/Depr Curr Depr End A/Depr ASSET A/C# : 1831 -EQUIPMENT - LAUDER ETZ C. 01 /0 1/00 Equi pment - Lauder ETZ Chaim SLP/ 5 .00 1 , 293 .41 0 00 1 ,293. 41 776 .04 258. 68 1 , 034 .72 07/01 /00 Equipment - Lauder ETZ Chaim SLP/ 5 .00 58300 0 . 00 58300 291 . 50 116 60 408 . 10 07/01 /00 Equipment - Lauder ETZ Cha im SLP/ 5 .00 869 95 0 . 00 869. 95 434 .98 173. 99 608 .97 07/01/01 Equi pment- Lauder ETZ Chaim SLP/ 5 .00 549 .73 0 .00 549. 73 164 .92 109. 95 27487 07/01/01 Equipment - Lauder ETZ Chaim SLP/ 5. 00 549. 73 0 .00 549 . 73 164 92 109 95 274. 87 07/01 /01 Equ ipment - Lauder ETZ Chai m SLP/ 5. 00 549. 71 0 .00 549 . 71 164 81 109 94 274. 85 01 / 15/02 Equ ipment - Lauder Etz Cha i m SLP/ 5 00 1 ,315. 19 0 .00 1 , 31519 26304 263 .04 52608 01 / 15/02 Equ ipment - Etz Chai m SLP/ 5. 00 69565 0 .00 69565 139. 13 139 . 13 278 .26 12/10 /02 Equipment - Lauder Etz Cha im SLP/ 5 . 00 2, 141 .1 9 0. 00 2, 141 19 35 . 6 9 428 .24 463 .93 Grand totals: 1831 - EQUIPMENT - LAUDER ETZ C. (9 assets) 8 , 547 . 56 0 00 8,54756 2 ,435 13 1,70952 4,14465

ASSET A/C# : 1832- EQUIPMENT KI NDERGARTEN 01/01/00 Equipment -Kinderga rten SLP/ 5.00 930 . 10 0. 00 930. 10 558 .06 1 86. 02 744 .08 G rand totals : 1832 - EQU I PMENT KINDERGARTEN ( 1 assets) 930 . 10 0 .00 930. 10 558 .06 186 02 744.08

ASSET AIC#: 1 833 - EQUIPMENT LEHRHAU S 07101/00 Equipment Le hrhaus SLP/ 5.00 5 ,249 .32 0 .00 5,249.32 2, 624 .65 1 ,049. 86 3,674.51 07/01/00 Eq uipme nt Lehrhaus SLP/ 5.00 4 , 170. 5 0 0 .00 4,170 .50 2 ,085. 25 834 . 10 2 ,919 . 3 5 07/01/00 Eq uipm e nt Lehrhaus SLP/ 5 .00 951 . 65 0 .00 951 .65 475 83 1 90 . 3 3 688 . 18 Grand tota ls : 1833 - EQUIPMENT LEHRHAUS (3 assets) 10, 371 . 47 0 .00 10,371 47 5 , 185. 73 2,074 . 29 7,260 . 02

ASSET AIC#: 1838 - EQUIPMENT SUMMER CAMP PRO 01/01/99 Equipment - Summer Camp Program SLP/ 5 .00 4, 900 . 00 0 . 00 4, 900 .00 3 ,920 . 00 98000 4,90000 Grand totals: 1838 - EQUIPMENT SUMMER CAMP PRO ( 1 assets) 4, 900 . 00 0 . 00 4, 900 .00 3,920 .00 98000 4 , 900 .00

ASSET AIC#: 1837 - EQUIPMENT LAUDER CHORE V 07/01/99 Equipment - Lauder Chorev Educ SLP/ 5.00 2,859 .00 0 . 00 2 ,859. 00 2, 001 . 30 571 80 2 ,573 10 07/01/00 Equipment - Lauder Chorev Educ . SLP/ 5 00 8,29161 0 .00 8,291 .61 4, 145 .80 1 ,658 . 32 5 ,804. 12 01/01/01 Equipment - Lauder Chorev Educ S LP/ 5 00 3, 274 .93 0 .00 3 ,274. 9 3 1 , 309 .98 654. 99 1,964.97 G rand totals : 1837 - EQUIPMENT LADDER CHOREV (3 a ssets ) 14 ,425.5 4 0 .00 14,425 .54 7 ,457. 08 2, 885 . 11 10,342 .1 9

ASSET A/C# : 1840 - BUILDING - RSL HUNGARY 01 /01 /90 Build ing - RSL Hunga ry SLPf75 .00 597 ,571 . 00 0.00 597, 571 .00 87 ,643. 71 7, 967 .81 95,811 . 32 01/01 /91 Bu ild ing - RSL Hunga ry SLPl75 00 797, 576 . 00 0. 00 797, 576 00 116,977.85 10,634 .35 127, 812 .20 01 /01 /92 Bu ild ing - RSL Hunga ry SLP/75 . 00 245, 928 . 00 0 . 00 245 , 928 .00 38 ,069 . 44 3,27904 39 , 348 .48 01 /01 /93 Bu il d ing - RSL Hunga ry SLP/75 00 150, 000 00 0 . 00 150,000 .00 20,000 . 00 2,000 .00 22,000 .00 01/01/94 Bu il d ing - RSL Hunga ry SLP/75 00 537, 217 . 75 0 . 00 537,217 .75 64 ,468 . 10 7,162 .90 71,629 .00 01 /01 /95 Building - RSL Hunga ry SLPf75 .00 14, 000 .00 0 00 14, 000 .00 1,493.36 188 67 1 , 680 .03 07/01/ 97 Bui lding - RSL Hungary SLP/75.00 47, 599 .98 0 . 00 47 , 599.98 4,442 .68 634. 67 5 , 077.35 07/01/98 Building - RSL H u ngary SLP/75.00 105, 199 .96 0 . 00 105 , 199.96 8,312 .01 1,402.67 7 , 714 .68 07/01 /99 Bui ldi ng - RSL Hungary (Szarvas) SLP/ 75.00 47, 599 98 0 00 47 ,599. 98 2, 221 . 34 634.67 2 , 856 .01 07/01 /99 Bui ldi ng - RSL Hungary (Sza rvas) SLP/75 00 47, 599 .98 0 .00 47 ,599. 98 2, 221 . 34 634.67 2 , 856. 01 07/01 /99 Bu il ding - RSL Hungary (Sza rvas) SLP/75. 00 47 ,599. 98 0.00 47.599 98 2 , 221 .34 63467 2,85601 01 /01 /00 Buil d ing - RSL Hunga ry (Sza rvas) SLP/75. 00 47 ,599 98 0 00 47,599 98 1 , 904 .01 634 .67 2,53868 07/0 1/00 Building - RSL Hunga ry (Sza rvas) SLPf75 .00 47 ,599 . 98 0.00 47, 599 98 1 , 586 87 634 .67 2 ,221 . 34 01 /01 /01 Bu il d ing - RSL Hunga ry (Sza rvas) SLPf75.00 47 ,599 . 98 0.00 47, 599 98 1 , 269 .34 63467 1 ,904 01 07/0 1/01 Building - RSL Hunga ry (Sza rvas ) SLPl75 00 47 ,599 98 0. 00 47, 599 . 98 952 00 634 .67 1,586 .67 01/01/02 Bu il d ing - RSL Hunga ry ( Sza rvas ) SLP/75 00 47 ,599 98 0. 00 47 , 599 .98 634. 67 634 .67 1 , 269 . 34 07/01 /02 Bu il d ing - RSL Hunga ry ( Sza rvas ) SLP/75 00 47 ,599 . 98 0 . 00 47 , 599 .98 317 33 63467 952 .00 01 /01 /03 A Bu il d ing - RSL Hunga ry SLPf 75 00 47 ,599 . 98 0 . 00 47 , 599 .98 0. 00 63467 634 .67 07/01/03 A Bu il d ing - RSL Hunga ry SLP/75 . 00 47 ,599 . 98 0 . 00 47 , 599 .98 0. 00 317 .33 317 . 33 Grand totals: 1840 - BUILDING - RSL HUNGARY (19 assets) 3 ,0 1 8, 692 .47 0 . 00 3, 018 ,692. 47 350 ,733 . 19 39 , 93194 390, 665 . 1 3

ASSET A/C#: 1842 - BUILDING RENOVATIONS 01 /01 /92 Buildi ng Renovati ons - Warsaw SLP/10 .00 23, 045 .00 0 . 00 23,045.00 23 ,045 . 00 0.00 2 3,0 45 00 01 /0 1/93 Buildi ng Renovations - Warsaw SLP/ 10. 00 79 ,958. 04 0 .00 79,958 04 79, 958 .04 0 00 79,958.04 0 1/01 /94 Bui ld i ng Renovations - Warsaw SLP/ 10. 00 149 ,870 21 0 .00 149,870.2 1 134, 883 18 14 , 987. 03 149, 870 .21 01/01/95 Building Renovations - Warsaw SLP/ 10. 00 36 ,818 .33 0 00 36,818.33 29,454 .64 3, 681 83 33,13 6 .47 0 7101/96 Building Renova tions - Warsaw SLP/10.00 50 , 755. 18 0 00 50,75518 32, 990 88 5,07552 3 8 ,0 66. 40 07/0 1/97 Building Renovat ions - Warsaw SLP/1 0 . 00 80 ,680 0 0 0. 00 80,680 00 44, 374 .00 8 ,068 00 5 2 ,442.00 Asset Depreciation Short Report - Sorted by ASSE i A/C# Page: 6 Compa ny: RSL Foundation & Affiliates Year End : 12/31/03 Method: I - BOOKS Date : 09/13/04 Includes Section 17 9 r-- Date Acq Description Meth/Life Cost Sec. 179 Depr Basis Bea AlDeor Curr Depr End AlDepr

ASSET A/C#: 1842 - BUILDING RENOVATION S 07 /01 /98 Buildi ng Renovati on - Lauder Morash SLP/ 10. 00 6,755.90 0 . 00 6 ,755. 90 3, 040 . 16 675.59 3, 715 .75 01101/00 Buildin g Renovati o n SLP/10.00 2 2,395. 42 0 .00 22 ,395. 42 6,718 .62 2 ,239 .5 4 8 , 95 816 07/ 01 /01 Build i ng Renovations - Warsaw SLP/ 10. 00 4,15555 0 .00 4 , 155 . 55 623 .34 415 . 56 1 , 038.90 07/0 1/01 Bui ld ing Renovations - Warsaw SLP/ 10 . 00 1,32255 0 00 1,32255 198. 39 132 .26 330 .65 07/01 /01 Bui ld ing Renovation - Wars aw SLP/10 . 00 1 ,291 . 11 0 00 1 , 2 9 1 . 1 1 193.67 129 . 11 322 . 7 8 Grand totals : 1842 - BUILDING RENOVATIONS (11 assets) 457 ,047 . 29 0.00 457, 047 .29 355 ,479. 92 35, 404 .44 390,884.36

ASSET A/C# : 1843 - BUILDING RENOVATION S 01 /01 /94 Build ing Renovati ons - RSL Morasha SLP/ 3 00 3,34746 0 . 00 3 , 347.46 3,34746 0 00 3,347 .46 07 /01 /97 Build ing Renovations - Morasha SLP/ 3 .00 3, 561 39 0 . 00 3 ,561 .39 3, 561 . 39 0. 00 3, 581 .39 07/01 /99 B uildi ng Renovations - Morasha SLP/ 75 00 2, 001 , 759 75 000 2, 001 , 759. 75 93,41546 26 ,69013 120, 105. 59 07/0 1/99 Bui ldi ng Renovation - Laude r Morash SLP175. 00 1 , 561 ,801 . 49 0 .00 1,561,801 49 72 , 884 .07 20 ,824. 02 93,708 . 09 07/01 /99 Building Renovation - Laude r Morash SLP/ 10. 00 6,67629 0 .00 6,676 .29 2,336 .70 687. 83 3,004. 33 07/0 1/99 Bui ldi ng Lauder Morasha School SLP/ 10. 00 1,22660 0 .00 1,22660 429 31 122 66 551 .97 07/0 1/99 Build ing Renovation - LauderMorash SLP/10.00 2 ,1 42. 40 0.00 2, 142 .40 749. 84 214. 24 964.08 01 /0 1/00 Bu ild ing Renovation SLP/10 .00 30 ,338 82 0. 00 30 , 338 .82 9,101 .64 3, 033 .88 12 , 135 . 52 01 /01 /00 Bu i ld ing Renovation SLP/10 .00 1 ,380. 74 0 00 1 , 380 .74 414. 21 138 .07 552 . 28 07/01 /00 Bu i ld ing Renova tion SLP/10 .00 18 ,324. 30 0. 00 1 8 , 3 24 .30 4 ,581 . 08 1 , 832 .43 8 ,413. 51 Grand totals: 1843 - BUILDING RENOVATIONS (10 assets) 3 ,630, 559 24 0 00 3 ,630 ,559 24 190, 821 16 53,523 .06 244 ,344 .22

ASSET A/C#: 1844 - BUILDING - BUDAPES T 07 /01 /97 Buil di ng - Budapest (Kinderga rten ) SLP/ 75 .00 1 ,500 , 000 .00 0 . 00 1 ,500 .000 00 11 0, 000 .00 2 0 ,000. 00 1 30, 000 .00 Grand totals : 1844 - BUILDING - BUDAPEST (1 assets) 1 , 500 , 000. 00 0 .00 1 , 500, 000 . 00 110 , 000 .00 20 ,000 . 00 130 ,000. 00

ASSET A/C#: 1845 - BUILDING - NEW VIENNA SCH 07/01/99 Building - New Vienna School SLP/75.00 200,000 .00 0 .00 200,000 .00 9,333.34 2,868 .87 12,000.01 07/01/99 Building - New Vienna School SLP1 75 00 8,700,000.00 0.00 8 .700,000 .00 312,666 88 89,333 .33 401,999.99 09/01/03 A Vienna Grant SLP/75 .00 4,855,371 .77 0.00 4,855,371 .77 0 00 2 1, 579 .43 2 1,579.43 Grand totals : 1845 - BUILDING - NEW VIENNA SCH (3 assets) 11,755,371 .77 0.00 11,755,371 77 322,000 .00 113,579 .43 435,579 .4 3

ASSET A/C# : 1848 - BUILDING RENOVATION - LH 07/01/99 B uil ding Renovation - Lehrhaus Reno SLP/75 .00 26, 850 .00 0. 00 26,850.00 1 , 253 . 00 35800 1,61100 07/01/99 B uil ding Renovation - Le hrhaus SLP/ 75 .00 557, 000 .00 0. 00 557 ,000. 00 25, 993 . 34 7 , 426 .67 33,420 .01 07/01/99 B uilding Re novation - Lehrhaus SLP175 .00 346 . 358 91 0. 00 346,358.91 18, 163 . 42 4 ,618 .12 20, 781 .54 01/01/00 B uilding Re novation Lehrhaus SLP/75.00 174 , 939.35 0 00 174 ,939 35 6,997.56 2 ,332. 52 9 , 330 .08 07/01/00 B uilding Renovation Lehrhaus SL P/75.00 54 , 954 .47 0 00 54 ,954 . 47 1 , 831 .82 732. 73 2,56455 01/01/01 B uilding Re novation - Lehrhaus SLP/10.00 1 , 589.50 0 .00 1 ,589 . 50 3 17. 9 0 1 58 . 95 476.85 12123/03 A Building Renovation - Lehrhaus S L P/75.00 2 0,069. 48 0 .00 20,069 . 48 0.00 22 .30 22. 30 Grand total s : 1 848 - BUILDING RENOVATION - LH (7 assets) 1 , 181 ,761 . 71 0 .00 1,181,761 .71 52 ,557. 04 15, 649 . 29 88 , 208. 33

ASSET A/C# : 1 847 - BUIL DI NG - M I N S K, BE LARUS 07/01/97 1 Building - Minsk Elementary School SLP/75 .00 0 . 00 0. 00 0.00 0 00 0 .00 0 .00 Grand totals : 1 84 7 - BUILDING - M INS K, B E LAR US (1 assets ) 0 . 00 0 00 0.00 0 . 00 0 .00 0 .0 0

A SSET A/C#: 1 848 - BUILDING - MO RA SHA SCHOO L 07/01/99 Building - Morasha School SLP/75 .00 1 , 516 , 000 00 0 .00 1 , 516 ,000. 00 70, 746 .66 20 ,213.33 90, 959 .99 07/01/99 Building - Lauder Morasha School SLP/10.00 5 , 793 .00 0 .00 5 ,793. 00 2, 027 .55 579. 30 2,606 .85 01101/00 Building Morasha School SLP/10 .00 1, 1 65 .09 0 .00 1,16509 34953 118. 51 468 .04 Grand totals : 1 848 - BUILDING - M O RASH A SC H OOL (3 assets) 1 , 522 , 95809 0 .00 1 , 522 ,958. 09 73, 123 .74 20 ,90914 94, 032 .88

ASSET A/C# : 1849 - BUILDING RE N OV A TION -K W 07/01/99 Building Renovation - Kindergarten SLP/10 .00 1 , 160. 48 0 .00 1,16048 406. 17 118 . 05 522. 22 12/31/99 Building Renovation - Kindergarten SLP/10 00 117 11 0 .00 1 1 7 . 11 36 11 11 71 47. 82 01/01/00 Building Renovation Kindergarten - SLP/10 00 150 00 0. 00 1 50 .00 4500 1 5 .00 80 00 07/01/00 Building Renovation - Kindergarten SLP/10 .00 20212 0 00 202 . 12 50 . 53 20 . 21 70 74 01/01/01 Building Renovation - Kindergarten SLP/10 00 800 . 00 0 00 800 00 160 . 00 8 0 .00 2400 0 Grand totals : 1 84 9 - B UILDI N G RENOVA TION -K W (5 assets) 2, 429 71 0 0 0 2 ,429 71 697 . 81 24297 940 78

sT~4rjl 9 Asset Depreciation Sho rt Report - Sorted by ASSN . A/C# Page: 7 Company: RSL Foundation & Affi liates Year End : 12/31/03 Method : 1 - BOOKS Date : 09/13/04 r- Includes Secti on 179 --~ Date Acq Description Meth/Life Cost Sec . 179 Depr Basis Bea A/Deur Curr Depr End A/Depr ASSET A/C# : 1850 -BUILDING RENOVATION - LM S 07/01 /99 Bui ldi ng Renovati on - Lauder Morash SLP/10.00 891 41 0. 00 891 41 311 99 89.14 401 . 13 07/ 01 /99 Bui ldi ng Renovation - Lauder Morash SLP/10. 00 11 , 185. 00 0 . 00 11 , 18500 3, 91475 1 , 118. 50 5, 033.25 07/01 /99 Buildi ng Renovation - Lauder Morash SLP/ 10 00 8,52051 0 00 8 , 520 .51 2.98218 852. 05 3, 834. 23 07/01 /99 Bui ldi ng Renovati on - Lauder Mo rash SLP/ 10. 00 4 ,4 1 8. 77 0 00 4 , 418 .77 1 , 546 .58 441 . 88 1 , 988. 48 12/3 1/99 SLP/1 0 00 0 0 0 0 . 00 0. 00 0 00 0 . 00 0. 00 1 2/31 /99 SLPl 10 . 00 0 .00 0 .00 0 . 00 0. 00 0 .00 0 . 00 01 /01 /0 1 Bu ild i ng Renovation - Lauder Morash SLP/ 10 . 00 17, 594. 29 0 .00 17 ,594. 29 3,518.86 1 ,759 .43 5,27829 01 /01 /01 Bu i ld i ng REnovatlon -Laude r Morash SLP/ 10 .00 1 , 635 . 10 0 .00 1 ,835. 10 327. 02 163 .51 490 .53 0 1 /0 1 /01 Build ing Ren ova tion - Lauder MOra sh SLP/10 .00 2,90 2 .87 0 .00 2 ,902 .67 580. 54 2 90 .27 870 .81 01 /01 /01 Bu ild ing Renovation - Lauder Morash SLP/10 .00 1 , 955 .38 0. 00 1 , 955 . 38 391 . 08 195. 54 586 .62 07/01 /01 Bu ilding Renovat ion - Lauder Morash SLP/10 .00 26,271 .52 0. 00 26,271 .52 3,940 . 73 2 , 627. 15 8 , 587. 88 07/01 /01 Build ing Renovat ion - Lauder Morash SLP/10 00 28 , 298 .71 0. 00 28 , 298 . 71 4, 244 . 8 1 2 , 829. 87 7,074.68 07 /07 /01 Bu il d ing Renovat ion - Lauder Morash SLPHO 00 4,865 .48 0 00 4, 865 .48 729 . 82 486. 55 1 . 218. 37 07/01 /01 B uil ding Renovati on - Lauder Morash SLP/ 10 00 67095 0 00 670. 95 1 0 0 .65 67.1 0 167.75 07/01 /01 Buil di ng Renovati on - Lauder Mo rash SLP/ 10. 00 3 ,801 . 54 0 . 00 3 ,801 . 54 570 .23 380 . 15 950 38 07/01 /01 B uildi ng Renovati on - Lauder Morash SLP/ 10. 00 9 ,921 . 00 0 .00 9 ,921 00 1 , 488 15 992 . 10 2 .48025 09/ 15/03 A Roof & W indow Repl acement SLP/ 10 00 17,715. 49 0 00 17 , 715. 49 0.00 590 . 52 590. 52 12/ 15/03 A Bui ldi ng Sign SLP/ 10 00 1 , 731 11 0 .00 1 ,731 . 1 1 0. 00 14 .43 1 4. 43 Grand totals : 1850 - BUILDING RENOVATION - LMS (18 assets) 142 , 378 .93 0. 00 142, 378 93 24 ,647 . 39 12 , 898 . 19 37, 545 .58

ASSET AIC# : 1851 - BUILDING RENOVATION - ETZ 07/01 /00 Bu ilding Renovation ETZ Cha im SLP/10 .00 14, 856 30 0. 00 14, 858 . 30 3, 714 . 08 1,485.63 5 , 199 .71 11 /15 /03 A Renovation SLP/1 0. 00 947. 11 0. 00 94711 0 00 15. 79 15 79 11 /15 /03 A Renovation SLP/ 10 00 713 74 0 . 00 713.74 0 .00 11 . 90 11 . 90 1 Z7 5 /03 A Renovation SLP/ 10 00 790. 19 0 .00 790. 19 0 00 8 . 58 6.58 Grand totals : 1851 - BUILDING RENOVATION - ETZ (4 assets) 17 ,307 34 0 00 17 , 307. 34 3 , 714.08 1 ,519 . 90 5,2339 8

ASSET AIC #: 18 55 .1 855 - CI P-LA UDE R B US SC H 12/31/02 C-I-P Lauder Business School SLP/75 .00 173,073 .47 0 .00 1 73,073. 47 0 .00 2,307 .65 2,307 .65 G rand totals : 1 8 55 .1 855 - C I P-LAU DE R B US SC H (1 asse ts) 173,073 47 0 .00 173,073.47 0 .00 2,307 .65 2,30765

A SSET A IC#: 1890 - LAND - HUNGARY S ZARVA S 01/01/90 I SLP/10 .00 321,769.00 0.00 0 .00 0 .00 0.00 0 .00 07/01/98 I Land -RSL Hungary Fd (Szarvas) SLP/75 .00 5,000.00 0.00 0 .00 0 .00 0. 00 0 .00 Grand totals : 1 890 - LAND - HUNGARY SZARVAS (2 assets) 326,769 00 0 00 0 .00 0 .00 0.00 0.00

ASSET AIC# : 1891 - LADDER MORASHA APARTMENTS 07/0 1/0 1 L ADDER MORASHA APARTMENTS SLP/75. 00 48,162 .67 0 00 48,162.6 7 0.00 642 .1 7 642 . 17 07/01/01 LADDER MORASHA APARTMENTS SLP/75 .00 48, 1 6 2 . 66 0 .00 48,162.66 0.00 642 .17 642 .17 G rand totals : 1891 - LADDER MORASHA APARTMENTS (2 assets) 96,325 .33 0 .00 96,325 33 0.00 1,28 4 .34 1,284 .3 4

i9 r

Asset Depreciation Sho rt Report - Sorted by ASSE . AIC# Page: 8 Company: RSL Foundation & Affiliates Year End: 12/31/03 Method : 1 - BOOKS Date: 09/13/04 - Inc l r udes Sec tion 179 Date Acq Descri pti on Meth/Life Cost Sec . 179 Depr Basis Bea Al Dear Curr Depr End A/ Depr

Grand totals for all accounts : (272 assets) 25,194,161 .14 0.00 24 , 867,392 .1 4 2 ,4 53,348.38 532,37 7 .82 2,9 8 5, 728 . 2 0

Cod es that may appear ne xt to the date acquire d Include: A - Addition, D - Disposal, T -Trad ed, MQ - Mid Q uarter Ap plied

Additional Summary Statistics for Assets : Current Ye ar Depreciable Beginnin g Curre nt En d in g N et Cost Section 179 B a s i s Accum. D epr. Depreciation Accum . De p r. Boo k Value Grand Totals for all ass ets 25,194,161 .14 0 .00 24,867,392 14 2,453,348 38 532,377 82 2,985,728 .20 22,208,434 .94 Less : Inactive Assets 326,769 .00 0 00 0 00 0 .00 0 .00 0 00 328,789 00 Dis posed Assets 0 .00 0 .00 0 00 0.00 0 00 0 .00 0.00 Traded Assets 0 .00 0 .00 0 00 0.00 0 .00 0 .00 0.0 0 N et Totals (Active Assets) 24,867,392 .14 0 .00 24,867,392 .14 2,453,348.38 532,377.82 2,985,728 .20 21, 88 1,685.9 4

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Application for Extension of Time to File an Form 88 6 8 Exempt Organization Return (December 2000) OMB No . 1545-1709

Departmentrn of the Treasury Inte al Revenue Service 10 . for each return . • If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box ...... ► LX] ~ If you are filing for an Additional (not automatic) 3-Month Extens ion, complete only Part II (on page 2 of this form) . Note: Do not complete Pert// unless you have e%ady been granted en automat/c 3-month extension on a previously ///ed Form 8869. Automatic 3-Month Extension of Time - Only submit original (no copies needed ) Note: Form 990-T corporations requesting an automatic 6-month extension - check this box and complete Part I only...... ► All other corporations (including Form 990-C filers) must use Form 7004 to request an extension of to file income tax returns. Partnerships, REMICs and trusts must use Form 8736 to request an extension of time to file Form 1065, 1 or 1041 . Name of Exempt organization Type or print File by the THE RONALD S . LAUDER FOUNDATION 13-344591 0 due date for Numbe r, street and room or suit e number. If a P.O.box , see Instructions filing your return . See 767 FIFTH AVENUE #4200 instructions. City, town or post office . For a foreign address , see state ZIFCode NEW YORK, NY 10153-018 Check type of return to be fl ied (file a separate application for each return) : Form 990 Form 990-T (corporation) Form 4720 Form 990-BL Form 990-T (Section 401(a) or 408(a) trust) Form 5227 Form 990-EZ Form 990-T (trust other than above ) Form 6069 Form 990-PF Form 1041-A , check this box ...... • If the organization does not have an office or place of business in the United States ► II • If this is for a Group Retu rn, enter the organization 's four digit Group Exemption Number (GEN) . If this is for the whole group , check this box . ► F] . If it is for pa rt of the group , check this box. and attach a list with the names and EINs of all members the extension will cover . 1 I request an automatic 3-month (6-month , for 990-T corporation) extension of time until 8/15 , 20 04 , to file the exempt organization return for the organization named above . The extension is for the organization 's return for : 1,. BX calendar year 20 03 or 01 tax year beginning , 20 _, an ending , 20 2 If this tax year is for less than 12 months , check reason : L] Initial return Final return Change in accounting perio d 3a If this app lication is for Form 990 -BL, 990-PF, 990-T, 4720, or 6069 , enter the tentative tax, less any nonrefundable cred its. See instructions ...... $ 160 . b If this appl ication is for Form 990-PF or 990-T, enter any refundab le credits and estimated tax payments made . Include any prior year overpayment allowed as a credit ...... $ 4,422 . c Balance Due. SulZtract line with this form , or if required deposit with FM coupon or. if reaifired. bv r vment Svstem) . See instructions...... 0 . Signature and Verlflcatlo n of er~u declare t I h~/e fxa ed thi s return, Inc luding accompanying s Medu les and sta teme nts, an d to the best of my knowl edge a nd belief, it Is true , correct, and gat am rized prepa~9ils

l Signature Title No. odDate 0' ~ / BAA For i see Instructions. Form

F IFZ050 1L 01/05/04 Form 8868 (12-2000) Page 2 • If you are filing for an Additional (not automatic) 3 -Month Exten sion, complete only Pa rt II and check this box . . . . 110. X Note: FormOn/ comp/ete Part//ityou have already been granted an automatic 3-month extension on a previously filed 88F8 • If you are filing for an Automatic 3-Month Extension, complete only Pa rt I (on oaae 1). Additional (not auto on - Must File Original and One C Name of Exempt Organization Employer [den num ber

Type or print THE RONALD S . LAUDER FOUNDATION 13-344591 0 N umbe r, scree ,and room or suite number I f a P 0. box, see instructions . ",,~•:~ `~. For IRS Use Only File by the extended due dtf a e or ~~. •„ w. •.-. . . . ni nq the 767 FIFTH AVENUE #4200 ~~~'~~•, ~ ~.~r. , ' '~=~' • return See , mshudwns Cary, town or post office, state, and ZIP code . For a foreign address, see instructions ^ NEW YORK, NY 10153-018 5 Check type of return to be filed (file a separate application for each return) : A Form 990 n Form 990-EZ n Form 990•T (Section 401(a) or 408(a) trust) Form 1041-A Form 5227 Form 8870 Form 990-BL n Form 990-PF n Form 990•T (trust other than above) I Form 4720 Form 6069 Sto : Do not complete Part II if you were not already granted an automatic 3-month extension on a previously filed Form 8868. • If the organization does not have an office or place of business in the United States, check this box ...... • If this is for a Group Return, enter the organizations four digit Group Exemption Number (GEN) . . If this is for the whole group, check this box ~ ~ . If it is pa rt of the group , check this box . . ► ~ and attach a list with the names and EINs of all members the extension is for 4 I request an additional 3-month extension of time until 11/15 , 20 04 . 5 For calendar year 2003 , or other tax year beginnin~,s ending _ , 20 6 If this tax year is for less than 12 months , check reason: 0 Initial return [T-inal return ChangeTI in accounting period 7 State in detail why you need the extension . - Additional-time is-needed-to Complete- the- audit and close-the-books for 2003 . ------8a If this applicat ion is for Form 990 -BL, 990•PF, 990-T, 4720, or 6069 , enter the tentative tax , less any nonrefundable cred its. See instructions...... $. . 160 .

b If this application is for Form 990 -PF, 990-T , 4720, or 6069, enter any refundable credits and estimated tax payments made . Include any prior year overpayment allowed as a credit and any amount paid previously wit h Form 8868 ...... $ 4,422 . c Balance due. Sut line 8b from line 8a Include your payment with this form, or, i f required, deposit with FTD coupon or, i f red, usin EFTPS (Electronic Federal Tax Payment System) . See instructions 0 . 14 Signature and Ver ification Unde r pen a lties of 3minedthis form, including accompanying schedules and statements, and to tty LbeSt of my knowledge and belief, it is correct, an d com p prepare this form

I 110, 1 ~ Title v `/ D ate 10' el-I 11 1-11" ► Notice to Applicant - To be Completed IR We have approved this application . Please attach this form to the organization's re C We have not approved this application . However, we have granted a 10•day grac, ~rT fro,~`nfit 4he date shown below or the due date of the orgarnzation's return (including any pnor extensions) . This grace peub is cb~si fj5e a valid extens ion of time for elections otherwise required to be made on a timely filed return . Please attach jthorm to the i ion's return . We have not approved this application . After considering the reasons stated in item-7, we'cann( your request for an extension o f time to file We are not granting a 10-day grace period . .i We cannot consider this application because it was filed after the due date bf the return for ~n extension was requested . B Other------~•~ ~~ ~` ay: Director Date

Alternate Ma ili ng Address - Enter the address if you want the copy of this application for an additional 3-month extension returned to an address different than the one entered above . Name Benciven a Ward & Company, CPAs, PC (Include suite, or ~ISIONAPPRpVEp Ty pe or Number and street room, apartment number) or a P. O . box number print 420 Columbus Avenue, Suite 30 4 City or town, province or state , and country (Including postal or ZIP code ) AUG 1 7 2004 Valhalla, NY 10595-138 2 Bea FIFZ0502L 01 /05/04 rjElDUU1Et►TOR, S118MlSS0PROCESM.OQOE1d