14.5 billions Euros, up by +6.5%
Sharp increase in 4th quarter sales: +12.2%
Growing sales in Western Europe
Strong level of activity continues in North America and in new markets
2005 Results targets confirmed

The sales of the L'Oréal group, at December 31st 2005, amounted to 14.53 billion euros.
Sales grew by +12.2% in the fourth quarter, giving a full-year sales growth rate of +6.5%.

Currency fluctuations had a positive impact of +6.1% in the fourth quarter; their total impact up to December 31st was +1.5%. Excluding currency fluctuations, the sales growth rate was +5% for the full year and +6.1% in the fourth quarter.
The net impact of changes in consolidation amounted to +0.2%, mainly as a result of the acquisition of Skinceuticals in June 2005.

Like-for-like, i.e. based on a comparable structure and identical exchange rates, growth in the group's sales amounted to +5.7% in the fourth quarter, giving a growth rate of +4.8% at December 31st 2005.

Commenting on the figures, Sir Lindsay Owen-Jones, Chairman and Chief Executive Officer of L'Oréal, said: «As we had hoped, the fourth quarter saw an acceleration of our sales growth. Western Europe returned to growth and shows a positive result for the full year. North America and the other regions of the world continued to advance at a rapid pace. Furthermore, the strengthening of the main currencies against the euro led to a positive exchange rate effect in the fourth quarter. In view of these figures, we can confirm our targets for full-year 2005 results».

Cosmetics sales growth by operational division and geographic zone



€ million
Growth Life-for-like

At December 31st 2005 (*)
Growth Reported

At December 31st 2005 (*)
Growth Life-for-like
4th quarter 2005 (*)
Growth Reported

4th quarter 2005 (*)
By operational division
Professional Products 2,061 +6.1% +7.3% +8.5% +14.6%
Consumer Products 7,499 +4.6% +6.4% +4.5% +11.2%
Luxury Products 3,582 +2.7% +3.9% +5.2% +10.6%
Active Cosmetics 986 +13.5% +17.2% +15.3% +25.3%
Cosmetics total 14,215 +4.8% +6.5% +5.6% +12.1%
         
By geographic zone
Western Europe 6,742 +0.1% +0.1% +2.5% +2.7%
North America 3,868 +6.4% +8.3% +5.5% +18.2%
Rest of the world, of which: 3,605 +12.6% +18.4% +11.6% +24.2%
- Asia 1,375 +7.4% +10.6% +5.1% +14.4%
- Latin America 861 +11.3% +23.5% +11.4% +36.3%
- Eastern Europe 682 +28.5% +34.3% +28.7% +36.2%
- Other countries 687 +11.5% +15.0% +9.9% +18.5%
Cosmetics total 14,215 +4.8% +6.5% +5.6% +12.1%
Dermatology(1) 318 +6.3% +8.3% +8.8% +16.9%
Group total 14,533 +4.8% +6.5% +5.7% +12.2%
(provisional, unaudited figures)
(*) All figures are based on IFRS standards
(1) Group share, i.e. 50%

These results will be presented in detail during the financial information meeting on February 16th 2006.
"This news release does not constitute an offer to sell, or a solicitation of an offer to buy, L’Oréal shares. If you wish to obtain more comprehensive information about L’Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers.
This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."

Contacts at L'OREAL

Shareholders and market authorities
Mr Jean-Régis CAROF
Tel. : +33.1.47.56.83.02
http://www.loreal-finance.com

Analysts and institutional investors
Mrs Caroline MILLOT
Tel. : +33.1.47.56.86.82
Fax : +33.1.47.56.80.02

Journalists
Mr Mike RUMSBY
Tel. : +33.1.47.56.76.71
http://www.loreal.com

03/02/06 : Pre-tax Consolidated sales of the L'Oréal group at end-december 2005 (B.A.L.O. 03.02.06) (French)