Coty Inc. Announces Acquisition of Dr. Scheller Cosmetics AG

By Coty Inc., PRNE
Thursday, November 11, 2010

Beauty Company Acquires Leading Cosmetic Producer in Germany Furthering its Expansion in Color Cosmetics

NEW YORK, November 12, 2010 - Coty Inc., one of the world's largest fragrance and leading global beauty
companies, and Kalina Group, a leading Russian cosmetic company, today
announced that Coty has entered into an agreement with Kalina to acquire 100%
of the shares of Dr. Scheller Cosmetics AG and its subsidiaries (DSC), which
are currently detained by Kalina.

The acquisition further enhances Coty Beauty's flourishing color
portfolio through the addition of DSC's leading German makeup brand,
Manhattan and its anti-acne cosmetic brand, Manhattan Clearface. With the
addition of DSC's Manhattan products, Coty becomes the second largest player
in the German color market.

Coty will leverage DSC's current distribution channels for its existing
products including Astor, Rimmel and Esprit Cosmetics. With this acquisition,
Coty's market share in the color cosmetics category in Germany will increase
from 7 percent to 17 percent. Globally, the color cosmetics pillar will
represent 25 percent of Coty's total portfolio. It also paves the way for
Coty to achieve its goal of becoming a $7 billion beauty company by 2015.

"The acquisition of Dr. Scheller Cosmetics is a natural extension of our
strategy to offer a well balanced portfolio of brands, representing some of
the leading consumer products in Germany," said Bernd Beetz, CEO, Coty Inc.
"Their well established brand, high-quality products, market presence and
loyal consumers will complement and add value to Coty's existing offerings."

"We are proud of what we've been able to accomplish since acquiring Dr.
Scheller Cosmetics AG, restructuring the company and bringing it to
profitability," said Alexander Petrov, CEO of OJSC Concern "KALINA". "We are
confident that the company will continue to grow under Coty's leadership.
However, we will continue to maintain ownership of Dr. Scheller Das
Naturkonzept product line, which we intend to grow as an international

Financial terms of the transaction were not disclosed. The transaction is
also subject to certain merger control approvals

About Coty Inc.

Coty was created in Paris in 1904 by Francois Coty who is credited with
founding the modern fragrance industry.

Today, Coty Inc. is a recognized leader in global beauty with annual net
sales of nearly $4 billion. Driven by an entrepreneurial spirit, passion,
innovation and creativity, Coty Inc. has developed an unrivaled portfolio of
notable brands and delivers its innovative products to consumers in 90
markets worldwide.

The Coty Prestige brand portfolio is distributed in prestige and
ultra-prestige stores and includes Balenciaga, Bottega Veneta, Calvin Klein,
Cerruti, Chloe, Chopard, Davidoff, Jennifer Lopez, Jil Sander, JOOP!, Karl
, Kenneth Cole, L.A.M.B. fragrance by Gwen Stefani, La Voce by Renee
, Lancaster, Marc Jacobs, Nikos, Sarah Jessica Parker, Vera Wang,
Vivienne Westwood and Wolfgang Joop.

The Coty Beauty brand portfolio is more widely distributed and includes
adidas, Astor, Baby Phat, Beyonce Knowles, Celine Dion, Chupa Chups, David
and Victoria Beckham
, Esprit, Exclamation, Faith Hill, GUESS?, Halle Berry,
Jovan, Kate Moss, Kylie Minogue, La Cross, Miss Sixty, Miss Sporty, Nautica,
N.Y.C. New York Color, Pierre Cardin(1), Playboy, Rimmel, Sally Hansen,
Shania Twain, Stetson, Tim McGraw, and Tonino Lamborghini.

Coty and Puig Fashion and Beauty S.A. have a strategic partnership for
the distribution of the perfume lines of Nina Ricci, Carolina Herrera, Prada,
Paco Rabanne, and Antonio Banderas in the United States and Canada.

For additional information about Coty Inc., please visit

(1) Not available in North America

About Kalina Group

JSC Concern "Kalina" is one of the leading Russian perfumery and
cosmetics producers. The leading brands of the company are "Black Pearl",
"Clean Line", and "Dr. Scheller" - among skin-care products; "32" and "Forest
Balsam"- among oral care products.

Concern "Kalina" consists of its parent enterprise in Ekaterinburg and
several subsidiaries, including "Pallada Ukraine" (Ukraine), "Glavskazka
International" (Russia), "Dr. Scheller Beauty Center" (Russia), Kalina
Overseas Holding B. V. (Netherlands) and Kalina International SA

Cysette Burset, +1-212-479-4549, Cysette_Burset at, or Lindsay Wooten, +1-202-828-8829, Lindsay.Wooten at

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