TRENDSPOT: MAKEUP...NATURALLY

Nothing says "me" more than a woman's touch with makeup. For many, makeup is the ultimate form of self-expression. This year, the U.S. prestige makeup category took the lead over prestige skin care and fragrance. Our M·A·C artists create 22 million consumer experiences a year, selling 35 eye shadows and 21 lip glosses per minute in the United States, alone. M·A·C is number one in lip gloss, pressed powder and eye shadow in U.S. department stores.

The makeup artist brands are keeping a younger audience attracted and involved in the playfulness of the category. Bobbi Brown's philosophy to help a woman feel her prettiest and most confident is resonating with women around the world. The "mystique" of Bobbi Brown has made the brand an international best seller- especially in the celebrity-driven Asian markets. Bobbi Brown recently unveiled Bobbi Brown Living Beauty, her fourth book, which is dedicated to redefining beauty for women over 40.

When it comes to being playful, M·A·C goes right to the source. M·A·C teamed up with Barbie this year to produce the limited edition Barbie Loves M·A·C collection. With its bright candy pinks, buttercup yellows and warm greens, it was the largest color collection in the history of M·A·C. The brand's first micro-site, barbielovesmac.com, launched the collection.

Foundation fosters loyalty among women and is often the gateway to a woman's makeup table for our brands. Estée Lauder Doublewear Long Lasting Foundation with 20 shades that promise 15-hour power is the top-selling liquid foundation for the brand in many international markets. Bobbi Brown Luminous Foundation, the brand's first liquid foundation launch in five years, is now the number-one foundation in Korea, selling 2.5 times as much as the next foundation in the region. Custom Blend Makeup from Prescriptives provides an exact match for every skin tone utilizing Prescriptives' Colorprinting analysis for women of all races and shades. Custom Blend Makeup was joined this year by Custom Concealer, an under-eye cream that brings the concept of customization to a new level by giving women the option to select multiple benefits, optics, moisturization and coverage.

One out of every three foundations sold in North American department stores is a Clinique foundation. Best- selling Clinique Perfectly Real Foundation boasts 26 shades geared to every skin tone from very fair to moderately fair to medium to olive dark. Micro-mirrored technology optically resurfaces skin to create a naturally perfect look.

Flirty eyes have it this year, as the wink and blink sector grew aggressively. Projectionist High Definition Volume Mascara from Estée Lauder promises lashes with 2.5 times the volume in a non-clumping, long-wearing formula. Clinique High Definition Lashes Mascara combines the latest in technology with a brush that combs, then brushes lashes for maximum volume. New Lash Envy Volumizing Mascara from Prescriptives frames eyes with voluptuous, luscious lashes delivered by the brand's signature elegant, ergonomically-designed silver wand. Flirt! Far Out Lengthening Mascara, with its innovative molded brush, exceeded expectations as it quickly achieved best-seller status for Kohl's. M·A·C LiquidLast Eyeliner was the top eye launch in U.S. department stores.

Lip plumpers designed for the perfect pout are boosting the lips category. Sales of lip plumpers surged 287% in the United States between 2001 and 2006. Clinique Full Potential Lips Plump and Shine is a super gloss that instantly creates a fuller, lusher, more kissable look, making lips appear smoother and more defined over time.

Plushglass, the lip plumper from M·A·C, moisturizes, soothes and visibly plumps the lips to make them look luxuriously healthy and well-conditioned. Vitamin E adds environmental protection.

Understanding what is important to our consumers extends beyond our product innovation. Our brands not only make our consumers look good... they help them feel good. One hundred percent of the selling prices of M·A·C Viva Glam, the lipstick created to raise money for the M·A·C AIDS FUND, and Lipglass is donated to the M·A·C AIDS Fund. Since the Fund was established in 1994, M·A·C Cosmetics has raised more than $100 million to support organizations working with underserved regions and communities worldwide that provide programs, services and care for people infected and affected by HIV/AIDS. In Fiscal 2007, the M·A·C AIDS Fund distributed over $16 million in grants globally and continued to set funding trends by addressing emerging issues in HIV prevention.

Bobbi Brown partnered with QVC to make a $25,000 donation to Dress for Success, an organization with which she has long been associated.

Origins is committed to promoting beauty and wellness through good-for-you-products and feel-good experiences. As part of this commitment, Origins teams up with a different not-for-profit organization annually, during holiday time, to help save animals from extinction and harm. A one-of-a-kind plush animal is created for Origins and sold alongside its makeup and skin care products. Proceeds from the sale are given to the designated charity.