SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549-1004
                             ______________________

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

               Date of Report (Date of earliest event reported) :
                                January 30, 2003


                         The Estee Lauder Companies Inc.
             (Exact name of registrant as specified in its charter)


         Delaware                                         11-2408943
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

767 Fifth Avenue, New York, New York                        10153
(Address of principal executive offices)                  (Zip Code)


                         Commission File Number: 1-14064

                                  212-572-4200
              (Registrant's telephone number, including area code)

                                 Not Applicable
          (Former name or former address, if changed since last report)

ITEM 5.  OTHER EVENTS.

On January 30, 2003, The Estee Lauder Companies Inc. issued a press release
reporting its fiscal 2003 second-quarter results.  A copy of the press release
is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.


                                            THE ESTEE LAUDER COMPANIES INC.

Date:  January 30, 2003                     By:    /s/Richard W. Kunes
                                               ----------------------------
                                                     Richard W. Kunes
                                                   Senior Vice President
                                                and Chief Financial Officer
                                                 (Principal Financial and
                                                   Accounting Officer)
<PAGE>
THE                                                                         News
ESTEE                                                                   Contact:
LAUDER                                                       Investor Relations:
COMPANIES INC.                                                   Dennis D'Andrea
                                                                  (212) 572-4384


767 Fifth Avenue                                                Media Relations:
New York, NY  10153                                                 Sally Susman
                                                                  (212) 572-4430
--------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE:

          ESTEE LAUDER COMPANIES REPORTS STRONG SECOND QUARTER RESULTS;

               SALES GROWTH OF 9% DRIVES 26% GROWTH IN EPS TO $.44


New York, NY, January 30, 2003 - The Estee Lauder Companies Inc. (NYSE: EL)
today reported net sales for the fiscal second quarter ended December 31, 2002
of $1.41  billion, a 9% increase from $1.30 billion in the prior-year period.
Excluding the impact of foreign currency translation, net sales increased 6%.

The Company achieved net earnings of $109.6 million for the quarter, a 22%
increase over the $90.1 million reported in the same period last year. Diluted
earnings per common share for the quarter ended December 31, 2002 grew 26% to
$.44 compared with $.35 reported in the prior-year quarter.

Fred H. Langhammer, President and Chief Executive Officer, said, "Our
performance this quarter against the soft retail backdrop in the United States
and certain international markets demonstrates the strength of our brands and
the appeal of our products around the world, and validates our strategy to
invest in marketing activity to generate growth. At the same time, working the
levers of cost containment in all areas of our business contributed to our
strong operating performance. Additionally, our ongoing asset management efforts
generated solid cash flow results. I am confident that, short of unforeseen
events, our new product pipeline, distribution growth, and cost savings will
enable us to meet our objectives for the fiscal year."

Results by Product Category
---------------------------

Net sales of skin care products for the quarter rose 5% before foreign
currency translation and reported sales increased 8% to $479.3 million. The
higher sales reflect the current quarter launches of the Repairwear treatment
collection by Clinique and Perfectionist Correcting Serum for Lines and Wrinkles
from Estee Lauder. Recently launched and existing products such as Advanced Stop
Signs and Moisture Surge Extra from Clinique and Resilience Lift OverNight Face
and Throat Creme and Re-Nutriv Ultimate Lifting Creme by Estee Lauder, as well
as A Perfect World White Tea Skin Guardian by Origins also contributed to the
skin care sales growth. These increases were partially offset by lower sales of
certain existing products.
<PAGE>
Makeup sales for the quarter rose 9% before the impact of foreign currency
translation. Reported sales increased 11% to $476.8 million, fueled by
double-digit growth from the Company's makeup artist brands, M.A.C, Bobbi Brown
and Stila. During the quarter, the Company launched Eye Defining Duo by Clinique
and Virtual Youth from Prescriptives. Recently launched makeup products like
Dewy Smooth Anti-Aging Makeup from Clinique and So Ingenious Multi-Dimension
Liquid Foundation and So Ingenious Multi-Dimension Loose Powder, as well as new
and existing products in the Pure Color Lips and Nails line by Estee Lauder also
contributed positively to makeup sales growth. Lower sales of certain existing
products partially offset these positive results.

Fragrance sales rose 3% compared to the prior-year quarter excluding the impact
of foreign currency translation. On a reported basis, fragrance sales increased
7% to $386.3 million. The increase reflects solid growth from the recovery in
the Company's travel retail business, which depends substantially on fragrance
products. Fragrance sales benefited from the recent launches of T girl by Tommy
Hilfiger, Estee Lauder pleasures intense, Lauder Intuition for Men and Donna
Karan Black Cashmere. Classic fragrances, Aromatics Elixir from Clinique and
Beautiful from Estee Lauder, also posted strong sales growth during the quarter.
Fragrance results were impacted by the overall softness in the fragrance
business in the 2002 holiday season, which is reflected in lower sales of
Intuition from Estee Lauder, as well as certain Tommy Hilfiger fragrances.

Sales of hair care products for the quarter rose 3% to $60.2 million. The
increase is primarily attributable to growth at Aveda and Bumble and bumble.

Operating income increased in skin care and makeup primarily due to the higher
sales, while fragrance operating income rose reflecting improved results in the
travel retail business. Hair care operating results decreased reflecting planned
spending to build retail distribution and product infrastructure to support
future growth as well as advanced costs of developing certain international
markets.

Results by Geographic Region
----------------------------

In the Americas region, net sales for the quarter increased 4% to $783.5
million. The increase is primarily due to the success of new and certain
existing  products, strong growth from virtually all developing brands and
higher sales from the Estee Lauder brand. Partially offsetting these results
were the continued soft retail environment in the United States. Operating
income in the Americas rose due to improved sales and benefits from the
Company's prior restructurings and ongoing cost containment efforts.

In Europe, the Middle East & Africa, net sales increased 10% over last year's
second quarter, excluding the impact of foreign currency translation. The region
posted a 19% increase in reported net sales from the prior-year period to $438.0
million, reflecting the impact of the strength of most European currencies
against the U.S. dollar. The Company's travel retail business, reported in this
region, continues to recover as worldwide travel increases, with sales growing
substantially in the current quarter compared with the prior-year period. In
constant currency, most markets experienced sales growth, led by strong results
in the United Kingdom, Spain, France and Switzerland. Operating profitability
increased primarily due to sharply higher results in the travel retail business,
as well as improved results in several other markets led by the United Kingdom
and France.
<PAGE>

On a local currency basis, Asia/Pacific net sales rose 5% compared with last
year's quarter. Net sales in the region of $191.2 million on a reported basis
grew 7% over the prior-year quarter, primarily reflecting the strength of the
Korean Won and Australian dollar during the quarter. The local currency sales
increase is primarily due to strong double-digit growth in Korea and Thailand,
as well as higher sales in Taiwan. Sales in Japan increased modestly in the
current quarter. Operating profit in the region declined as higher results in
Australia, Korea and Thailand were offset by lower results in Taiwan.

Six-Month Results
-----------------

For the six months ended December 31, 2002, the Company reported net sales of
$2.66 billion, a 7% increase from $2.49 billion in the comparable prior-year
period. Excluding the impact of foreign currency translation, net sales rose 4%.
The Company achieved net earnings of $183.0 million for the six months compared
with $187.2 million in the same period last year. Diluted earnings per common
share for the six months ended December 31, 2002 were $.73, equal to $.73
reported in the prior-year period. The prior year net earnings and diluted
earnings per share are before the cumulative effect of a change in accounting
principle of $20.6 million and $.09, respectively, related to the adoption of
Statement of Financial Accounting Standards No. 142, "Goodwill and Other
Intangible Assets."

For the six months ended December 31, 2002, the Company generated $370.0 million
in cash flow from operating activities, a 41% increase over the prior-year
period. The increase resulted from higher net earnings and improvements in the
Company's net working capital components, particularly accounts receivable,
accounts payable and an increase in accrued advertising, sampling and
merchandising. Operating cash flow was utilized primarily to repurchase shares
of the Company's Class A Common Stock and for capital investments.

Estimates of Fiscal 2003 Full-Year and Second Half Results
----------------------------------------------------------

The Company's estimates reflect some degree of economic uncertainty however,
unforeseen global political events could adversely impact the Company's
performance in the second half. Based on present conditions, the
calendarization of the Company's programs and business building activities, the
Company believes it will achieve sales and earnings growth in the remaining six
months of the fiscal year, in line with previous guidance.

At this time, for the full fiscal year, the Company expects to grow sales
approximately 5% on a constant currency basis versus the prior fiscal year. The
positive effect of changes in exchange rates in Europe and Asia could increase
reported sales growth for the fiscal year by approximately 2.5 to 3 percentage
points. The Company expects to achieve diluted earnings per share of between
$1.28 and $1.33 for the fiscal year.
<PAGE>

Net sales for the second half of fiscal 2003 are expected to grow between 5% and
6% on a constant currency basis versus last fiscal year's second half.
Geographic region net sales growth in constant currency is expected to be led by
Europe, the Middle East & Africa, followed by Asia/Pacific and the Americas. On
a product category basis, in constant currency, hair care and skin care are
expected to be the leading sales growth categories, followed by makeup and
fragrance. The positive effect of changes in exchange rates in Europe and Asia
could increase reported sales growth for the fiscal second half by
approximately 2.5 to 3 percentage points. As a result, the Company expects to
achieve diluted earnings per share of between $.55 and $.60 for the second half.

Forward-looking Statements
--------------------------

The forward-looking statements in this press release, including those containing
words like "will," "believe," "expect," "anticipate," "could," "plan," and
"estimate," those in Mr. Langhammer's remarks and those in the "Estimate of
Fiscal 2003 Full-Year and Second Half Results" section involve risks and
uncertainties. Factors that could cause actual results to differ materially from
those forward-looking statements include the following:
      (i)  increased competitive activity from companies in the skin care,
           makeup, fragrance and hair care businesses, some of which have
           greater resources than the Company does;
     (ii)  the  Company's ability to develop, produce and market new products on
           which future operating results may depend;
    (iii)  consolidations, restructurings, bankruptcies and reorganizations in
           the retail industry causing a decrease in the number of stores that
           sell the Company's products, an increase in the ownership
           concentration within the retail industry, ownership of retailers by
           the Company's competitors and ownership of competitors by the
           Company's customers that are retailers;
     (iv)  shifts in the preferences of consumers as to where and how they shop
           for the types of products and services the Company sells;
      (v)  social, political and economic risks to the Company's foreign or
           domestic manufacturing, distribution and retail operations, including
           changes in foreign investment and trade policies and regulations of
           the host countries and of the United States;
     (vi)  changes in the laws, regulations and policies, including changes in
           accounting standards, tax laws and regulations, trade rules and
           customs regulations, and the outcome and expense of legal or
           regulatory proceedings, that affect, or will affect, the Company's
           business;
    (vii)  foreign currency fluctuations affecting the Company's results of
           operations and the value of its foreign assets, the relative prices
           at which the Company and its foreign competitors sell products in
           the same markets and the Company's operating and manufacturing costs
           outside of the United States;
   (viii)  changes in global or local economic conditions that could affect
           consumer purchasing, the financial strength of our customers, the
           cost and availability of capital, which the Company may need for new
           equipment, facilities or acquisitions, and the assumptions underlying
           our critical accounting estimates;
     (ix)  shipment delays, depletion of inventory and increased production
           costs resulting from disruptions of operations at any of the
           facilities which, due to consolidations in the Company's
           manufacturing operations, now manufacture nearly all of the Company's
           supply of a particular type of product (i.e., focus factories);
      (x)  real estate rates and availability, which may affect the Company's
           ability to increase the number of retail locations at which the
           Company's products are sold;
     (xi)  changes in product mix to products which are less profitable;
    (xii)  the Company's ability to acquire or develop e-commerce capabilities,
           and other new information and distribution technologies, on a timely
           basis and within the Company's cost estimates;
   (xiii)  the Company's ability to capitalize on opportunities for improved
           efficiency, such as globalization, and to integrate acquired
           businesses and realize value therefrom; and
    (xiv)  consequences attributable to the events that took place in New York
           City and Washington, D.C. on September 11, 2001, including further
           attacks, retaliation and the threat of further attacks or
           retaliation.

<PAGE>

The Estee Lauder Companies Inc. is one of the world's leading manufacturers and
marketers of quality skin care, makeup, fragrance and hair care products.
The Company's products are sold in over 130 countries and  territories under
well-recognized brand names, including Estee Lauder, Clinique, Aramis,
Prescriptives, Origins, M.A.C, Bobbi Brown, Tommy Hilfiger, La Mer, jane,
Donna Karan, Aveda, Stila, Jo Malone, Bumble and bumble and kate spade beauty.

An electronic version of this release can be found at the Company's Website,
www.elcompanies.com.

                                                 - Tables Follow -
<PAGE>

                         THE ESTEE LAUDER COMPANIES INC.

                         SUMMARY OF CONSOLIDATED RESULTS
                      (In millions, except per share data)
<TABLE>
<CAPTION>

                                                              Three Months Ended                   Six Months Ended
                                                                  December 31       Percent         December 31    Percent
                                                                  -----------       -------         -----------    -------
                                                                2002       2001     Change        2002       2001   Change
                                                                ----       ----     ------        ----       ----   ------
<S>                                                                <C>        <C>     <C>         <C>         <C>     <C>

Net Sales.................................................     $1,412.7   $1,298.2   8.8%      $2,655.2   $2,493.0    6.5%

Cost of sales.............................................        371.4      343.3                728.5      688.6
                                                                -------    -------              -------    -------
Gross Profit..............................................      1,041.3      954.9   9.0%       1,926.7    1,804.4    6.8%
                                                                -------    -------              -------    -------
       Gross Margin.......................................         73.7%      73.6%                72.6%      72.4%

Operating expenses:
   Selling, general and administrative....................        865.5      806.6              1,631.9    1,499.2
   Related party royalties................................          5.8        4.8                 10.4        8.8
                                                                 ------     ------              -------    -------
                                                                  871.3      811.4   7.4%       1,642.3    1,508.0    8.9%
                                                                 ------     ------              -------    -------
       Operating Expense Margin...........................         61.7%      62.5%                61.9%      60.5%

Operating Income..........................................        170.0      143.5  18.5%         284.4      296.4   (4.0)%
              Operating Income Margin.....................         12.0%      11.1%                10.7%      11.9%

Interest expense, net.....................................          2.2        1.9                  5.1        5.7
                                                                 ------     ------               ------     ------

Earnings before Income Taxes, Minority Interest
 and Accounting Change....................................        167.8      141.6  18.5%         279.3      290.7   (3.9)%

Provision for income taxes................................         56.1       48.9                 93.5      100.3
Minority interest, net of tax.............................         (2.1)      (2.6)                (2.8)      (3.2)
                                                                 ------     ------               ------     ------

Net Earnings before Accounting Change.....................        109.6       90.1  21.7%         183.0      187.2   (2.2)%
Cumulative effect of a change in accounting
   principle (a)..........................................          -          -                    -        (20.6)
                                                                 ------     ------               ------     ------
Net Earnings .............................................        109.6       90.1                183.0      166.6

Preferred stock dividends.................................          5.8        5.8                 11.7       11.7
                                                                 ------     ------               ------     ------

Net Earnings Attributable to Common Stock.................     $  103.8   $   84.3             $  171.3   $  154.9
                                                                 ======     ======               ======     ======

Basic net earnings per common share:
   Net earnings attributable to common stock before
     accounting change....................................     $   .45    $   .35   25.8%       $   .73    $   .74   (0.6)%
   Cumulative effect of a change in accounting principle..         -           -                    -         (.09)
                                                                ------     ------                ------     ------
   Net earnings attributable to common stock..............     $   .45    $   .35   25.8%       $   .73    $   .65   12.6%
                                                                ======     ======                ======     ======

Diluted net earnings per common share:
   Net earnings attributable to common stock before
     accounting change....................................     $   .44    $   .35   26.2%       $   .73    $   .73   (0.2)%
   Cumulative effect of a change in accounting principle..         -           -                   -          (.09)
                                                                ------     ------                ------     ------
   Net earnings attributable to common stock..............     $   .44    $   .35   26.2%       $   .73    $   .64   13.1%
                                                                ======     ======                ======     ======

Weighted average common shares outstanding:
   Basic..................................................        233.1      238.1                234.2      238.5
   Diluted................................................        235.0      240.7                236.2      241.5
</TABLE>

(a)  The six months ended December 31, 2001 included a one-time charge of $20.6
     million, or $.09 per diluted common share, attributable to the cumulative
     effect of adopting Statement of Financial Accounting Standards No. 142,
     "Goodwill and Other Intangible Assets."
<PAGE>

                         THE ESTEE LAUDER COMPANIES INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In millions)
<TABLE>
<CAPTION>


                                                                        December 31         June 30       December 31
                                                                        -----------         -------       -----------
                                                                            2002              2002            2001
                                                                            ----              ----            ----
                                                   ASSETS
<S>                                                                          <C>              <C>              <C>

Current Assets
Cash and cash equivalents..............................................   $   654.8         $  546.9        $   442.4
Accounts receivable, net...............................................       694.8            624.8            663.8
Inventory and promotional merchandise, net.............................       534.6            544.5            560.8
Prepaid expenses and other current assets..............................       201.0            211.4            198.9
                                                                            -------          -------          -------
     Total Current Assets..............................................     2,085.2          1,927.6          1,865.9
                                                                            -------          -------          -------

Property, Plant and Equipment, net.....................................       581.2            580.7            564.0
Other Assets  .........................................................       899.2            908.2            927.0
                                                                            -------          -------          -------
     Total Assets......................................................    $3,565.6         $3,416.5         $3,356.9
                                                                           ========         ========          =======

                                       LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term debt........................................................    $   84.0         $    6.6        $     5.5
Accounts payable.......................................................       202.5            216.4            153.4
Other current liabilities..............................................       907.6            736.6            709.9
                                                                            -------          -------          -------
     Total Current Liabilities.........................................     1,194.1            959.6            868.8
                                                                            -------          -------          -------

Noncurrent Liabilities
Long-term debt.........................................................       323.7            403.9            407.2
Other noncurrent liabilities...........................................       255.1            231.1            257.5
$6.50 Cumulative Redeemable Preferred Stock, at redemption value.......       360.0            360.0            360.0
Total Stockholders' Equity.............................................     1,432.7          1,461.9          1,463.4
                                                                            -------          -------          -------
     Total Liabilities and Stockholders' Equity........................    $3,565.6         $3,416.5         $3,356.9
                                                                           ========         ========         ========

</TABLE>

                                              SELECTED CASH FLOW DATA
                                                   (In millions)
<TABLE>
<CAPTION>
                                                                                                 Six Months Ended
                                                                                                    December 31
                                                                                                    -----------
                                                                                                 2002        2001
                                                                                                 ----        ----
<S>                                                                                              <C>           <C>

Cash Flows from Operating Activities
   Net earnings.........................................................................         $183.0       $166.6
   Depreciation and amortization........................................................           85.1         77.4
   Deferred income taxes................................................................           17.8         10.0
   Cumulative effect of a change in accounting principle................................            -           20.6
   Other items..........................................................................            1.2          1.4
   Changes in operating assets and liabilities:
       Increase in accounts receivable, net.............................................          (56.9)       (75.7)
       Decrease in inventory and promotional merchandise, net...........................           17.0         74.5
       Increase in accounts payable and other accrued liabilities.......................          114.8          3.2
       Other operating assets and liabilities, net......................................            8.0        (16.5)
                                                                                                  -----        -----
         Net cash flows provided by operating activities................................         $370.0       $261.5
                                                                                                  =====        =====

   Capital expenditures.................................................................          (71.1)       (98.1)
   Dividends paid.......................................................................          (23.6)       (35.6)
</TABLE>

                                                        # # #
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SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549-1004
                             ______________________

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

               Date of Report (Date of earliest event reported) :
                                January 30, 2003

                         The Estee Lauder Companies Inc.
             (Exact name of registrant as specified in its charter)

         Delaware                                         11-2408943
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

767 Fifth Avenue, New York, New York                        10153
(Address of principal executive offices)                  (Zip Code)

                         Commission File Number: 1-14064

                                  212-572-4200
              (Registrant's telephone number, including area code)

                                 Not Applicable
          (Former name or former address, if changed since last report)

ITEM 5.  OTHER EVENTS.

On January 30, 2003, The Estee Lauder Companies Inc. issued a press release
reporting its fiscal 2003 second-quarter results.  A copy of the press release
is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.

                                            THE ESTEE LAUDER COMPANIES INC.

Date:  January 30, 2003                     By:    /s/Richard W. Kunes
                                               ----------------------------
                                                     Richard W. Kunes
                                                   Senior Vice President
                                                and Chief Financial Officer
                                                 (Principal Financial and
                                                   Accounting Officer)
THE                                                                         News
ESTEE                                                                   Contact:
LAUDER                                                       Investor Relations:
COMPANIES INC.                                                   Dennis D'Andrea
                                                                  (212) 572-4384

767 Fifth Avenue                                                Media Relations:
New York, NY  10153                                                 Sally Susman
                                                                  (212) 572-4430
--------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE:

          ESTEE LAUDER COMPANIES REPORTS STRONG SECOND QUARTER RESULTS;

               SALES GROWTH OF 9% DRIVES 26% GROWTH IN EPS TO $.44

New York, NY, January 30, 2003 - The Estee Lauder Companies Inc. (NYSE: EL)
today reported net sales for the fiscal second quarter ended December 31, 2002
of $1.41  billion, a 9% increase from $1.30 billion in the prior-year period.
Excluding the impact of foreign currency translation, net sales increased 6%.

The Company achieved net earnings of $109.6 million for the quarter, a 22%
increase over the $90.1 million reported in the same period last year. Diluted
earnings per common share for the quarter ended December 31, 2002 grew 26% to
$.44 compared with $.35 reported in the prior-year quarter.

Fred H. Langhammer, President and Chief Executive Officer, said, "Our
performance this quarter against the soft retail backdrop in the United States
and certain international markets demonstrates the strength of our brands and
the appeal of our products around the world, and validates our strategy to
invest in marketing activity to generate growth. At the same time, working the
levers of cost containment in all areas of our business contributed to our
strong operating performance. Additionally, our ongoing asset management efforts
generated solid cash flow results. I am confident that, short of unforeseen
events, our new product pipeline, distribution growth, and cost savings will
enable us to meet our objectives for the fiscal year."

Results by Product Category
---------------------------

Net sales of skin care products for the quarter rose 5% before foreign
currency translation and reported sales increased 8% to $479.3 million. The
higher sales reflect the current quarter launches of the Repairwear treatment
collection by Clinique and Perfectionist Correcting Serum for Lines and Wrinkles
from Estee Lauder. Recently launched and existing products such as Advanced Stop
Signs and Moisture Surge Extra from Clinique and Resilience Lift OverNight Face
and Throat Creme and Re-Nutriv Ultimate Lifting Creme by Estee Lauder, as well
as A Perfect World White Tea Skin Guardian by Origins also contributed to the
skin care sales growth. These increases were partially offset by lower sales of
certain existing products.
Makeup sales for the quarter rose 9% before the impact of foreign currency
translation. Reported sales increased 11% to $476.8 million, fueled by
double-digit growth from the Company's makeup artist brands, M.A.C, Bobbi Brown
and Stila. During the quarter, the Company launched Eye Defining Duo by Clinique
and Virtual Youth from Prescriptives. Recently launched makeup products like
Dewy Smooth Anti-Aging Makeup from Clinique and So Ingenious Multi-Dimension
Liquid Foundation and So Ingenious Multi-Dimension Loose Powder, as well as new
and existing products in the Pure Color Lips and Nails line by Estee Lauder also
contributed positively to makeup sales growth. Lower sales of certain existing
products partially offset these positive results.

Fragrance sales rose 3% compared to the prior-year quarter excluding the impact
of foreign currency translation. On a reported basis, fragrance sales increased
7% to $386.3 million. The increase reflects solid growth from the recovery in
the Company's travel retail business, which depends substantially on fragrance
products. Fragrance sales benefited from the recent launches of T girl by Tommy
Hilfiger, Estee Lauder pleasures intense, Lauder Intuition for Men and Donna
Karan Black Cashmere. Classic fragrances, Aromatics Elixir from Clinique and
Beautiful from Estee Lauder, also posted strong sales growth during the quarter.
Fragrance results were impacted by the overall softness in the fragrance
business in the 2002 holiday season, which is reflected in lower sales of
Intuition from Estee Lauder, as well as certain Tommy Hilfiger fragrances.

Sales of hair care products for the quarter rose 3% to $60.2 million. The
increase is primarily attributable to growth at Aveda and Bumble and bumble.

Operating income increased in skin care and makeup primarily due to the higher
sales, while fragrance operating income rose reflecting improved results in the
travel retail business. Hair care operating results decreased reflecting planned
spending to build retail distribution and product infrastructure to support
future growth as well as advanced costs of developing certain international
markets.

Results by Geographic Region
----------------------------

In the Americas region, net sales for the quarter increased 4% to $783.5
million. The increase is primarily due to the success of new and certain
existing  products, strong growth from virtually all developing brands and
higher sales from the Estee Lauder brand. Partially offsetting these results
were the continued soft retail environment in the United States. Operating
income in the Americas rose due to improved sales and benefits from the
Company's prior restructurings and ongoing cost containment efforts.

In Europe, the Middle East & Africa, net sales increased 10% over last year's
second quarter, excluding the impact of foreign currency translation. The region
posted a 19% increase in reported net sales from the prior-year period to $438.0
million, reflecting the impact of the strength of most European currencies
against the U.S. dollar. The Company's travel retail business, reported in this
region, continues to recover as worldwide travel increases, with sales growing
substantially in the current quarter compared with the prior-year period. In
constant currency, most markets experienced sales growth, led by strong results
in the United Kingdom, Spain, France and Switzerland. Operating profitability
increased primarily due to sharply higher results in the travel retail business,
as well as improved results in several other markets led by the United Kingdom
and France.
On a local currency basis, Asia/Pacific net sales rose 5% compared with last
year's quarter. Net sales in the region of $191.2 million on a reported basis
grew 7% over the prior-year quarter, primarily reflecting the strength of the
Korean Won and Australian dollar during the quarter. The local currency sales
increase is primarily due to strong double-digit growth in Korea and Thailand,
as well as higher sales in Taiwan. Sales in Japan increased modestly in the
current quarter. Operating profit in the region declined as higher results in
Australia, Korea and Thailand were offset by lower results in Taiwan.

Six-Month Results
-----------------

For the six months ended December 31, 2002, the Company reported net sales of
$2.66 billion, a 7% increase from $2.49 billion in the comparable prior-year
period. Excluding the impact of foreign currency translation, net sales rose 4%.
The Company achieved net earnings of $183.0 million for the six months compared
with $187.2 million in the same period last year. Diluted earnings per common
share for the six months ended December 31, 2002 were $.73, equal to $.73
reported in the prior-year period. The prior year net earnings and diluted
earnings per share are before the cumulative effect of a change in accounting
principle of $20.6 million and $.09, respectively, related to the adoption of
Statement of Financial Accounting Standards No. 142, "Goodwill and Other
Intangible Assets."

For the six months ended December 31, 2002, the Company generated $370.0 million
in cash flow from operating activities, a 41% increase over the prior-year
period. The increase resulted from higher net earnings and improvements in the
Company's net working capital components, particularly accounts receivable,
accounts payable and an increase in accrued advertising, sampling and
merchandising. Operating cash flow was utilized primarily to repurchase shares
of the Company's Class A Common Stock and for capital investments.

Estimates of Fiscal 2003 Full-Year and Second Half Results
----------------------------------------------------------

The Company's estimates reflect some degree of economic uncertainty however,
unforeseen global political events could adversely impact the Company's
performance in the second half. Based on present conditions, the
calendarization of the Company's programs and business building activities, the
Company believes it will achieve sales and earnings growth in the remaining six
months of the fiscal year, in line with previous guidance.

At this time, for the full fiscal year, the Company expects to grow sales
approximately 5% on a constant currency basis versus the prior fiscal year. The
positive effect of changes in exchange rates in Europe and Asia could increase
reported sales growth for the fiscal year by approximately 2.5 to 3 percentage
points. The Company expects to achieve diluted earnings per share of between
$1.28 and $1.33 for the fiscal year.
Net sales for the second half of fiscal 2003 are expected to grow between 5% and
6% on a constant currency basis versus last fiscal year's second half.
Geographic region net sales growth in constant currency is expected to be led by
Europe, the Middle East & Africa, followed by Asia/Pacific and the Americas. On
a product category basis, in constant currency, hair care and skin care are
expected to be the leading sales growth categories, followed by makeup and
fragrance. The positive effect of changes in exchange rates in Europe and Asia
could increase reported sales growth for the fiscal second half by
approximately 2.5 to 3 percentage points. As a result, the Company expects to
achieve diluted earnings per share of between $.55 and $.60 for the second half.

Forward-looking Statements
--------------------------

The forward-looking statements in this press release, including those containing
words like "will," "believe," "expect," "anticipate," "could," "plan," and
"estimate," those in Mr. Langhammer's remarks and those in the "Estimate of
Fiscal 2003 Full-Year and Second Half Results" section involve risks and
uncertainties. Factors that could cause actual results to differ materially from
those forward-looking statements include the following:
      (i)  increased competitive activity from companies in the skin care,
           makeup, fragrance and hair care businesses, some of which have
           greater resources than the Company does;
     (ii)  the  Company's ability to develop, produce and market new products on
           which future operating results may depend;
    (iii)  consolidations, restructurings, bankruptcies and reorganizations in
           the retail industry causing a decrease in the number of stores that
           sell the Company's products, an increase in the ownership
           concentration within the retail industry, ownership of retailers by
           the Company's competitors and ownership of competitors by the
           Company's customers that are retailers;
     (iv)  shifts in the preferences of consumers as to where and how they shop
           for the types of products and services the Company sells;
      (v)  social, political and economic risks to the Company's foreign or
           domestic manufacturing, distribution and retail operations, including
           changes in foreign investment and trade policies and regulations of
           the host countries and of the United States;
     (vi)  changes in the laws, regulations and policies, including changes in
           accounting standards, tax laws and regulations, trade rules and
           customs regulations, and the outcome and expense of legal or
           regulatory proceedings, that affect, or will affect, the Company's
           business;
    (vii)  foreign currency fluctuations affecting the Company's results of
           operations and the value of its foreign assets, the relative prices
           at which the Company and its foreign competitors sell products in
           the same markets and the Company's operating and manufacturing costs
           outside of the United States;
   (viii)  changes in global or local economic conditions that could affect
           consumer purchasing, the financial strength of our customers, the
           cost and availability of capital, which the Company may need for new
           equipment, facilities or acquisitions, and the assumptions underlying
           our critical accounting estimates;
     (ix)  shipment delays, depletion of inventory and increased production
           costs resulting from disruptions of operations at any of the
           facilities which, due to consolidations in the Company's
           manufacturing operations, now manufacture nearly all of the Company's
           supply of a particular type of product (i.e., focus factories);
      (x)  real estate rates and availability, which may affect the Company's
           ability to increase the number of retail locations at which the
           Company's products are sold;
     (xi)  changes in product mix to products which are less profitable;
    (xii)  the Company's ability to acquire or develop e-commerce capabilities,
           and other new information and distribution technologies, on a timely
           basis and within the Company's cost estimates;
   (xiii)  the Company's ability to capitalize on opportunities for improved
           efficiency, such as globalization, and to integrate acquired
           businesses and realize value therefrom; and
    (xiv)  consequences attributable to the events that took place in New York
           City and Washington, D.C. on September 11, 2001, including further
           attacks, retaliation and the threat of further attacks or
           retaliation.
The Estee Lauder Companies Inc. is one of the world's leading manufacturers and
marketers of quality skin care, makeup, fragrance and hair care products.
The Company's products are sold in over 130 countries and  territories under
well-recognized brand names, including Estee Lauder, Clinique, Aramis,
Prescriptives, Origins, M.A.C, Bobbi Brown, Tommy Hilfiger, La Mer, jane,
Donna Karan, Aveda, Stila, Jo Malone, Bumble and bumble and kate spade beauty.

An electronic version of this release can be found at the Company's Website,
www.elcompanies.com.

                                                 - Tables Follow -
THE ESTEE LAUDER COMPANIES INC.

                         SUMMARY OF CONSOLIDATED RESULTS
                      (In millions, except per share data)
Three Months Ended                   Six Months Ended
                                                                  December 31       Percent         December 31    Percent
                                                                  -----------       -------         -----------    -------
                                                                2002       2001     Change        2002       2001   Change
                                                                ----       ----     ------        ----       ----   ------
Net Sales.................................................     $1,412.7   $1,298.2   8.8%      $2,655.2   $2,493.0    6.5%

Cost of sales.............................................        371.4      343.3                728.5      688.6
                                                                -------    -------              -------    -------
Gross Profit..............................................      1,041.3      954.9   9.0%       1,926.7    1,804.4    6.8%
                                                                -------    -------              -------    -------
       Gross Margin.......................................         73.7%      73.6%                72.6%      72.4%

Operating expenses:
   Selling, general and administrative....................        865.5      806.6              1,631.9    1,499.2
   Related party royalties................................          5.8        4.8                 10.4        8.8
                                                                 ------     ------              -------    -------
                                                                  871.3      811.4   7.4%       1,642.3    1,508.0    8.9%
                                                                 ------     ------              -------    -------
       Operating Expense Margin...........................         61.7%      62.5%                61.9%      60.5%

Operating Income..........................................        170.0      143.5  18.5%         284.4      296.4   (4.0)%
              Operating Income Margin.....................         12.0%      11.1%                10.7%      11.9%

Interest expense, net.....................................          2.2        1.9                  5.1        5.7
                                                                 ------     ------               ------     ------

Earnings before Income Taxes, Minority Interest
 and Accounting Change....................................        167.8      141.6  18.5%         279.3      290.7   (3.9)%

Provision for income taxes................................         56.1       48.9                 93.5      100.3
Minority interest, net of tax.............................         (2.1)      (2.6)                (2.8)      (3.2)
                                                                 ------     ------               ------     ------

Net Earnings before Accounting Change.....................        109.6       90.1  21.7%         183.0      187.2   (2.2)%
Cumulative effect of a change in accounting
   principle (a)..........................................          -          -                    -        (20.6)
                                                                 ------     ------               ------     ------
Net Earnings .............................................        109.6       90.1                183.0      166.6

Preferred stock dividends.................................          5.8        5.8                 11.7       11.7
                                                                 ------     ------               ------     ------

Net Earnings Attributable to Common Stock.................     $  103.8   $   84.3             $  171.3   $  154.9
                                                                 ======     ======               ======     ======

Basic net earnings per common share:
   Net earnings attributable to common stock before
     accounting change....................................     $   .45    $   .35   25.8%       $   .73    $   .74   (0.6)%
   Cumulative effect of a change in accounting principle..         -           -                    -         (.09)
                                                                ------     ------                ------     ------
   Net earnings attributable to common stock..............     $   .45    $   .35   25.8%       $   .73    $   .65   12.6%
                                                                ======     ======                ======     ======

Diluted net earnings per common share:
   Net earnings attributable to common stock before
     accounting change....................................     $   .44    $   .35   26.2%       $   .73    $   .73   (0.2)%
   Cumulative effect of a change in accounting principle..         -           -                   -          (.09)
                                                                ------     ------                ------     ------
   Net earnings attributable to common stock..............     $   .44    $   .35   26.2%       $   .73    $   .64   13.1%
                                                                ======     ======                ======     ======

Weighted average common shares outstanding:
   Basic..................................................        233.1      238.1                234.2      238.5
   Diluted................................................        235.0      240.7                236.2      241.5
(a)  The six months ended December 31, 2001 included a one-time charge of $20.6
     million, or $.09 per diluted common share, attributable to the cumulative
     effect of adopting Statement of Financial Accounting Standards No. 142,
     "Goodwill and Other Intangible Assets."
THE ESTEE LAUDER COMPANIES INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In millions)
December 31         June 30       December 31
                                                                        -----------         -------       -----------
                                                                            2002              2002            2001
                                                                            ----              ----            ----
                                                   ASSETS
Current Assets
Cash and cash equivalents..............................................   $   654.8         $  546.9        $   442.4
Accounts receivable, net...............................................       694.8            624.8            663.8
Inventory and promotional merchandise, net.............................       534.6            544.5            560.8
Prepaid expenses and other current assets..............................       201.0            211.4            198.9
                                                                            -------          -------          -------
     Total Current Assets..............................................     2,085.2          1,927.6          1,865.9
                                                                            -------          -------          -------

Property, Plant and Equipment, net.....................................       581.2            580.7            564.0
Other Assets  .........................................................       899.2            908.2            927.0
                                                                            -------          -------          -------
     Total Assets......................................................    $3,565.6         $3,416.5         $3,356.9
                                                                           ========         ========          =======

                                       LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term debt........................................................    $   84.0         $    6.6        $     5.5
Accounts payable.......................................................       202.5            216.4            153.4
Other current liabilities..............................................       907.6            736.6            709.9
                                                                            -------          -------          -------
     Total Current Liabilities.........................................     1,194.1            959.6            868.8
                                                                            -------          -------          -------

Noncurrent Liabilities
Long-term debt.........................................................       323.7            403.9            407.2
Other noncurrent liabilities...........................................       255.1            231.1            257.5
$6.50 Cumulative Redeemable Preferred Stock, at redemption value.......       360.0            360.0            360.0
Total Stockholders' Equity.............................................     1,432.7          1,461.9          1,463.4
                                                                            -------          -------          -------
     Total Liabilities and Stockholders' Equity........................    $3,565.6         $3,416.5         $3,356.9
                                                                           ========         ========         ========
SELECTED CASH FLOW DATA
                                                   (In millions)
Six Months Ended
                                                                                                    December 31
                                                                                                    -----------
                                                                                                 2002        2001
                                                                                                 ----        ----
Cash Flows from Operating Activities
   Net earnings.........................................................................         $183.0       $166.6
   Depreciation and amortization........................................................           85.1         77.4
   Deferred income taxes................................................................           17.8         10.0
   Cumulative effect of a change in accounting principle................................            -           20.6
   Other items..........................................................................            1.2          1.4
   Changes in operating assets and liabilities:
       Increase in accounts receivable, net.............................................          (56.9)       (75.7)
       Decrease in inventory and promotional merchandise, net...........................           17.0         74.5
       Increase in accounts payable and other accrued liabilities.......................          114.8          3.2
       Other operating assets and liabilities, net......................................            8.0        (16.5)
                                                                                                  -----        -----
         Net cash flows provided by operating activities................................         $370.0       $261.5
                                                                                                  =====        =====

   Capital expenditures.................................................................          (71.1)       (98.1)
   Dividends paid.......................................................................          (23.6)       (35.6)
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