The L'OREAL Annual General Shareholders meeting was held on Tuesday May 26, 1998 under the chairmanship of Mr. Lindsay OWEN-JONES, Chairman and CEO.

The Shareholders meeting approved the corporate accounts and reviewed consolidated accounts for 1997. Consolidated sales totalled 69.12 billion Francs. Net operating profits for the group share reached 4.2 billion Francs with a net profit per share and investment certificate of 62.21 Francs, up by 12.8%.

The meeting approved the payment of a net dividend of 16 Francs per share and investment certificate, up by 14.3% against 1996.

The meeting also renewed the appointments of Messrs Lindsay OWEN-JONES, Pascal CASTRES SAINT MARTIN, Marc LADREIT de LACHARRIERE and Olivier LECERF, for a duration of four years expiring at the Annual General Shareholders meeting called to approve accounts for year 2001. A new Director, Mr. Francisco CASTANER was appointed for a four year period to replace Mr. Jose DANIEL.

The Shareholders meeting also renewed the mandate of Mr. Pierre FEUILLET as statutory auditor, for six years. Mr. Pierre COLL was appointed as his new substitute statutory auditor. The appointments of a new statutory auditor Mr. Patrice de MAISTRE and of his substitute Mr. Etienne JACQUEMIN were approved for a six year period.

The Annual General Shareholders meeting also renewed the authorization granted to L'OREAL to purchase its own shares up to a limit of 1% of its capital.

Following the Shareholders meeting, the Board of Directors reappointed Mr. Lindsay OWEN-JONES as Chairman and CEO, and Mr. Pascal CASTRES SAINT MARTIN as Group executive Vice President. It also set the date of payment of dividend for Friday, June 12, 1998 at all French financial intermediaries