The official start of the construction of Oriflame's new manufacturing and distribution centre took place today in Krasnogorsk, just outside Moscow. The 21,000 sqm facility will encompass not only a manufacturing plant but will also serve as a distribution hub in the CIS region and a service centre in Russia.

The plant will be fully operational in 2005 and the capacity is already planned to reach more than 100 million units annually. Oriflame's total investment exceeds €30m over a three-year period creating over 300 new jobs in Krasnogorsk. The complex will meet the highest modern technological and environmental requirements for producing Oriflame skincare and colour cosmetics products.

Sven Mattsson, CEO of Oriflame Cosmetics comments: "I am very happy to announce the start of the construction of this manufacturing and distribution facility in our largest market. We have had a tremendous development during the last years. Sales in the region were €210m in 2002, up from €51m in 1999. This investment, the largest in the history of Oriflame, will support our 600 000 Sales Consultants in the CIS Region and thereby further strengthen our leading position in the region."

The new facility complements the European operations at the recently expanded Oriflame factory in Warsaw, and the factory outside Stockholm which was acquired in June of this year.

For further information, please contact:
CEO Sven Mattsson , tel. +32 2 357 56 75
Global Supply Director Marco Greidinger , tel +46 70 634 49 27

For high resolution pictures, please contact: kristien.dhont@oriflame.be.

Oriflame Cosmetics is one of the world's fastest growing cosmetics companies, with operations in 54 countries and market leadership in over 30 countries. Oriflame offers a complete range of high-quality skincare, fragrances and colour cosmetics under the concept of "Natural Swedish Cosmetics". The products are marketed through a Sales Force of over 1.4 million independent Sales Consultants.