18.1 MISSION & PURPOSE

18.1.1 THE L’ORÉAL FAMILY OF BRANDS

L’Oréal is a leading global consumer products company serving the needs of consumers around the world with 23 brands in five different segments. L’Oréal has 68,900 employees and its products are available for purchase online and in stores and outlets in over 130 countries.

L’Oréal content is available across a range of TLDs, including but not limited to: .COM, .CA, .CZ, .CO.UK, .FI, .FR, .DE, .IT, .NL, .NO, .PL, .RU, .ES, .TR, .HU, .EU, .AR, .BR, .MX, .HK, and .COM.AU.

L’Oréal has an extensive global family of brands and business units that prominently incorporate and make use of various L’Oréal trademarks. These brands are listed below. For more information, see http:⁄⁄www.loreal-finance.com⁄eng⁄annual-report.

I. Consumer Products

L’Oréal Paris
Garnier
Maybelline New York
SoftSheen-Carson
CCB Paris

II. Professional Products

L’Oréal Professional
Kérastase
Redken
Matrix
Mizani
Pureology
Shu Uemura Art of Hair

III. Luxury Products

Lancôme
Biotherm
Helena Rubinstein
Kiehl’s
Shu Uemura
Giorgio Armani
Ralph Lauren
Cacharel
Viktor & Rolf
Diesel
YSL Beauté
Maison Martin Margiela
Stella McCartney

IV. Active Cosmetics

Vichy
La Roche Posay
Innéov
Skinceuticals
Sanoflore
Roger&Gallet

V. The Body Shop

Through the richness of its portfolio of international brands, and its expertise in all major distribution channels, L’Oréal has always aimed to offer the widest possible choice to consumers. 2010 marked the beginning of a new phase of conquest to ensure that the greatest number of people have access to its 23 global brands.

As the Internet continues to connect consumers with brands in the global digital marketplace, an innovative digital strategy will lie at the epicenter of L’Oréal’s mission to reach two billion customers in the coming years. The .KERASTASE gTLD has the potential to be a central part of this strategy, and will allow L’Oréal to deliver information, goods, and services to the online marketplace in a secure environment.

18.1.2 MISSION AND PURPOSE OF THE .KERASTASE GTLD

Through a unified corporate approach, L’Oréal intends to submit 9 gTLD applications for the branded strings .LOREAL, .欧莱雅, .GARNIER, .KERASTASE, .KIEHLS, .LANCOME, .MAYBELLINE, .MATRIX and .REDKEN.

The intended future mission and purpose of the .KERASTASE gTLD is to serve as a trusted, hierarchical, and intuitive namespace provided by L’Oréal and its qualified subsidiaries and affiliates, to L’Oréal customers, consumers, and Internet users. L’Oréal will be the entity to file this application and bring the .KERASTASE gTLD to market.

Although ICANN has not specifically recognized a .BRAND gTLD specification in the current round, it is widely anticipated in the brand community that this will become a specialty subset of gTLDs. The .KERASTASE gTLD is intended to be one of those .BRAND gTLDs, with the goal of protecting L’Oréal’s online presence and identity, expanding its marketing and promotion efforts, providing a secure channel for online products and services, and offering a platform through which to consolidate many of the intellectual property activities of L’Oréal.

L’Oréal intends to initially limit registration and use of domain names within the .KERASTASE gTLD to L’Oréal and its qualified subsidiaries and affiliates. This initial limited use will allow L’Oréal to establish its operations and achieve full sustainability. This limited distribution coupled with the other requirements set forth in Specification 9 of the template Registry Agreement is intended to exempt L’Oréal from its annual Code of Conduct Compliance requirements.

L’Oréal currently plans a four-stage rollout for the .KERASTASE gTLD. The dates of these stages are subject to change depending upon business, strategic, and industry factors.

1. Stage One

The initial stage of implementation of the gTLD will involve L’Oréal registering a limited number of .KERASTASE second-level domain names.

This initial use will provide L’Oréal’s IT and security personnel the time to run a number of tests to ensure seamless and secure access using the .KERASTASE gTLD domain names, interoperability with various software and Web-based applications, and unbroken and secure use of all names. This initial allocation will also allow the appropriate L’Oréal staff to coordinate with the internal and external staff responsible for the delegation and setup phases of the .KERASTASE gTLD to ensure a proper transition from delegation to full operation.

2. Stage Two

Once all testing has been successfully completed, L’Oréal will begin allocating domain names in .KERASTASE for more widespread internal corporate use. During this same period of time, L’Oréal will begin evaluating strategies to potentially migrate traffic away from its current patchwork network of second-level domain names, which are registered in a variety of TLDs, to L’Oréal’s new family of gTLDs.

It is in Stage Two that L’Oréal will evaluate expanding the operations of the gTLD to permit registration by other registrants such as licensees or other strategic partners. Should an assessment of its expansion strategy lead to a decision to extend registration rights to other parties, this expansion is currently planned to take place during Stage Three, and likely after the first three years of operation. However, any expansion would be conditioned upon a review of the Specification 9 (Registry Code of Conduct) set forth in the template Registry Agreement to ensure compliance with L’Oréal’s business model.

3. Stage Three

Depending upon the analysis of the evaluations undertaken in Stage Two, L’Oréal may begin to implement the permanent migration of Internet traffic away from the TLDs in which L’Oréal’s domain names are currently registered, and toward the new L’Oréal family of gTLDs. It is in this stage that L’Oréal also may implement its decision to extend registration rights to licensees or strategic partners, depending upon compliance with Specification 9 as noted above.

After consideration of the following factors: analysis of L’Oréal’s existing domain name portfolio; internal analysis of marketing initiatives; and the fact that L’Oréal will have full control over the number of registrations in the .KERASTASE gTLD namespace, L’Oréal expects that the number of domain name registrations will be less than 10,000 in the first five years of operation.

4. Stage Four

Based on its experience during the initial stages of operation, and based on its experience with any expansion implemented in Stage Three, L’Oréal will assess whether its business plan and expansion strategy should be augmented by extending registration rights to a broader class of licensees, including potential customers of L’Oréal. It is anticipated by L’Oréal that changes to the domain name industry, and particularly the impact of .BRAND gTLDs, may take approximately five years to be realized and assessed. Any decision to expand the gTLDs beyond corporate, qualified subsidiary⁄affiliate, and licensee use will take into account this experience as well as the technical analysis of potential expansion.

The potential use of the .KERASTASE gTLD will also be driven by L’Oréal’s future business strategies as identified in its annual report and investor filings, see http:⁄⁄www.loreal-finance.com⁄eng⁄key-figures.