TRENDSPOT: LIFESTYLE FRAGRANCES INFUSE THE AIR

Soft and sexy; light and floral; elegant and crisp; warm and luxurious; bold and woodsy, or fruity and fresh... no matter what the moment calls for, today's fragrances are helping to set the mood. A fragrance is as individual and personal as the intimate pulse points it touches. It is the memory that lingers in the room and ignites the senses. Each year, more than 300 new prestige fragrances are introduced.

For The Estée Lauder Companies, where we have a long heritage of creating fragrances that endure and mature into classics, the fragrance category has evolved from personal fragrances for men and women to lifestyle fragrances, aromatherapy fragrances and accessory fragrances that are an integral part of any personal signature. Four of our women's fragrances rank among the top 12 fragrances in U.S. prestige department stores. Classics like Beautiful, Estée Lauder pleasures and Clinique Happy endure year after year. Pure White Linen brought a fresh new air to the classic White Linen line from Estée Lauder, attracting a new generation of devotées.

A classic with a cult following, Calyx by Prescriptives celebrates 25 years of being a much-loved fragrance. Tommy Girl 10 celebrates the brand's 10th anniversary with a lush and voluptuous fresh floral fragrance that incorporates notes hand-picked from the American designscape.

Launching new fragrances is as much of an art as creating the fragrance itself. Category breaker Sean John Unforgivable launched with a dramatically different marketing campaign in 2006 and went on to capture a 2007 FiFi Award as Fragrance of the Year in Men's Luxe Category, as well as a 2007 Cosmetic Executive Women CEW Award for Best Men's Launch of 2006. No longer limited to the fragrance bar, Unforgivable has found a place alongside Sean John's stylish menswear and accessories, making it available to a new generation of style-conscious men.

Our portfolio of fragrance brands expanded this year with four new additions. Coach launched a new fragrance for exclusive distribution in its free-standing stores. Designed to reflect the classic elegance of its renowned leather goods and accessories, the fragrance has the true smell of success. Mustang, a new fragrance that brings to life the spirit of the iconic sports car, exemplifies the allure of the Mustang man-bold, daring and legendary. Daisy Fuentes launched her fragrance line at Kohl's with Dianoche Eau de Parfum, followed by So Luxurious.

Tom Ford Beauty unveiled its first fragrance line with an ultraluxe note. Black Orchid, a sensuous and daring fragrance made from the rare black orchid, is sold in limited distribution in U.S. specialty stores, Tom Ford's new Madison Avenue boutique, in limited doors in Europe and in select travel retail locations. From the far corners of the Earth comes Tom Ford's Private Blend Collection, a breathtaking line of 12 highly individual fragrances made from a rare and exotic blend of ingredients. Tom Ford for Men is a new, innovative take on the classic woods category, with an original and distinctive combination of ingredients, some never before used in fragrance.

DKNY Be Delicious continues to be a global favorite. A best seller in travel retail, DKNY Red Delicious is the newest addition. The new Donna Karan Gold collection reflects the designer's passion for design and fragrance in a sensuous new scent inspired by the light of a woman. We are pleased to congratulate Donna Karan on her FiFi Hall of Fame Award from the Fragrance Foundation this year.

Jo Malone fragrances and candles strike a chord synonymous with chic. The brand's philosophy of layering fragrances from your body to your room to the menu for tonight's dinner party elevates the role of fragrance to a new level. New to the line this year is the Latin-inspired Blue Agava and Cacao with notes of blue agava and cardamom. Pomegranate Noir is a sultry fragrance for men and women. It received a prestigious FiFi Award from the U.K. for Best New Fragrance in Limited Distribution for Men and was also recognized by the British Society of Perfumers with the 2006 McCorkey Award for Best Female Fragrance. Jo Malone arrived on the fashionably chic and elegant avenues of Cannes this year with its first free-standing store in France.

Aerin Lauder debuted her luxurious new fragrance, Private Collection Tuberose Gardenia, an homage to the aspirational elegance that the Estée Lauder brand has always represented.

There's a new scent in the air at Missoni Profumi with the introduction of acqua, a luxe scent drenched in "la bella vita" and inspired by the crystal blue waters of the Mediterranean Sea. Island Michael Kors Hawaii is the third Island fragrance from the designer, who bottled his passion for a jet-set lifestyle and exotic travels around the globe with his first destination fragrance, Island Michael Kors, in 2005.

Our commitment to the fragrance category is strong. With more than 50% of our fragrance sales embedded within our core brands, we look to optimize the benefits of our strong, classic line-up and continue to look for ways to create newness.