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Intimate Brands, Inc. and Shiseido Sign Joint Venture Agreement

NEW YORK, Sept. 14 /PRNewswire/ -- Intimate Brands, Inc.'s (NYSE: IBI) Intimate Beauty Corporation and Shiseido Co., Ltd. today announced that they have formed a joint venture to develop, market and sell new lines of prestige beauty products that will be offered for sale in their own free-standing stores. The specific brand concept, product lines and store design will be finalized in the next 12 months. The first store is projected to open in fall 2001.

Leslie H. Wexner, Chairman and CEO of Intimate Brands, said, "This strategic alliance will leverage Shiseido's global expertise in product and package research and development, as well as our company's expertise in retailing and brand development. Together we expect to build a billion-dollar worldwide brand."

Akira Gemma, President and CEO of Shiseido, commented, "This will be a partnership that leverages the strengths of each organization. It supports Shiseido's objective of increasing our penetration in the U.S. market and will also deliver a prestige beauty brand with unique positioning for the Intimate Beauty Corporation."

Robin Burns, President and CEO of Intimate Beauty Corporation and Victoria's Secret Beauty, will function as CEO of the joint venture. "We are pleased to have such a strong partner as we add the second brand to what will be a portfolio of prestige beauty brands for our Intimate Beauty Corporation," added Ms. Burns.

Intimate Brands will provide 50 percent of the initial capital, and Shiseido will provide 50 percent. Intimate Brands said it expects to invest up to $5 million in the joint venture in 2000, up to $10 million in 2001 and a total of approximately $50 million over five years. The joint venture is not expected to impact 2000 earnings and is expected to be neutral to 2001 earnings as well.

About Intimate Brands

Intimate Brands, Inc. is the leading specialty retailer of intimate apparel, beauty and personal care products through the Victoria's Secret and Bath & Body Works brands. As of August 26, 2000, Victoria's Secret products are available through 859 lingerie and 450 beauty stores (of which 51 are stand-alone), the Victoria's Secret Catalogue and online at . The Company offers a broad selection of personal care, home fragrance and decor products through 1,309 Bath & Body Works and 100 White Barn Candle Company stores (of which 13 are stand-alone).

About Shiseido

Shiseido Co., Ltd., founded in 1872, is the leading cosmetics manufacturer in Japan. Its cosmetics for women and for men, sold in approximately 60 countries worldwide, accounted for 74 percent of its revenues for fiscal 2000, ended March 31, 2000. Toiletries accounted for a further 15.3 percent of fiscal 2000 revenues, and salon products, pharmaceuticals, health and beauty foods and other products/operations 10.7 percent. The Shiseido Group consists of the parent company, 80 subsidiaries (seventy-six of which are consolidated) and two affiliates worldwide (as of March 31, 2000). Overseas sales accounted for 14.7 percent of fiscal 2000 revenues.

Safe harbor statement under the private securities litigation reform act of 1995: The forward-looking statements made by the Company in this press release involve material risks and uncertainties and are subject to change based on various important factors which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. The Company does not intend to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

SOURCE Intimate Brands, Inc.

-0- 09/14/2000

/NOTE TO EDITORS: A taped background message on this transaction will be available by dialing 1-800-696-1585 Pass code - 812796 after 1:30 p.m. EDT or by accessing ./

/CONTACT: Debbie J. Mitchell of Intimate Brands, Inc., 614-415-7546; or Takafumi Oba of Shiseido Co., Ltd., 03-3572-5111/

    /Web site: 


CO: Intimate Brands, Inc.; Intimate Beauty Corporation; Shiseido Co., Ltd. ST: Ohio, Japan IN: REA SU: JVN

-0- Sep/14/2000 12:24 GMT EOS (PRN) Sep/14/2000 08:24 85 â -0- (PRN) Sep/14/2000 12:39 GMT

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