New Profit And Loss Account Structure. Segment Reporting: Profitability By Division Group


Clichy, Thursday, September 1st 2005 – 7.45 p.m.

NEW PROFIT AND LOSS ACCOUNT STRUCTURE
SEGMENT REPORTING: PROFITABILITY BY DIVISION


With the change in accounting standards, and as confirmed on April 28th 2005 at the presentation of the 2004 consolidated financial statements in accordance with IFRS standards, the L'Oréal group is continuing to improve the quality of its financial information by presenting its profit and loss account according to destination, and by publishing the profitability of each of its divisions.
These items have been subjected to an auditing procedure by the Statutory Auditors.
The changes are presented in detail on the www.loreal-finance.com site, which refers in particular to the following points:

- Profit and loss account: new presentation.
- Definition of the items of the profit and loss account.
- Profit and loss account by destination: figures for 2004 and the first half of 2004.
- Pro forma presentation of 2004 net profit (neutralisation of Sanofi-Aventis deconsolidation).
- Presentation of pro forma net profit excluding non-recurrent items.
- Profitability of branches and divisions.
- Profitability of geographic zones.

A detailed presentation of this new profit and loss account structure and of profitability by division (2004 consolidated financial statements), is available in both French and English on the Internet site www.loreal-finance.com. .

"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 [which are also available in English on our Internet site: www.loreal-finance.com].
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'ORÉAL

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

For more information, please contact your bank, broker or financial institution (I.S.I.N. code FR0000120321), and consult your usual newspapers, and the Internet site for shareholders and investors, http://www.loreal-finance.com, or its mobile version on your PDA, at loreal-finance.com mobile edition; alternatively, call +33.1.40.14.80.50.