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Coty Inc. Signs 5-Year Contract With IBM for Business Transformation Services


NEW YORK, NY - 29 Nov 2005: Coty Inc., a leading global beauty company, today announced that it has signed a 5-year contract with IBM for procurement services across 14 countries in North America and Europe. This partnership is expected to deliver significant cost savings to Coty throughout the life of the contract by leveraging IBM's global economies of scale and optimizing Coty procurement processes.

This initiative is key to Coty's strategy of harmonizing its business processes globally and building on its "Spiral of Success" efficiency program, which aims to realize significant cost savings while optimizing business processes. In recent years, Coty has rapidly developed its core businesses through organic growth and acquisitions. The cost savings from the procurement project are expected to further accelerate Coty's growth by freeing up capital to invest in existing brands and other acquisitions.

IBM will procure goods and services for Coty in areas such as business services, travel, facilities management, technology and telecommunications, marketing and logistics. Core to the project is the implementation of IBM's complete Procure-To-Pay procurement solution which will be integrated into Coty's systems. IBM's solution will enable web-based requisitioning, automated ordering, timely monitoring of order status and efficient supplier payment.

"This agreement with IBM will help enable Coty to transform its business and provide synergies across its brands while improving profitability," says Bernd Beetz, Coty Inc. CEO. "We look forward to working with IBM, which has demonstrated a proven ability to deliver comprehensive procurement services that will benefit the Coty organization."

Elements of the overall IBM procurement solution include IBM commodity experts, a global contact center and accounts payable processing center supporting Coty suppliers and employees in six languages. Coty will have access to the full range of services at IBM's existing procurement service delivery centers.

"Coty is a market leader known for its innovation and we are pleased to be supporting its strategic initiative with our procurement outsourcing capabilities," says Tony Cronin, General Manager, Business Transformation Outsourcing, IBM. "We are experiencing growing market demand for business process outsourcing services, and procurement services in particular. IBM offers a unique value proposition to clients like Coty by combining our sourcing experience, procurement process expertise and applications, and outsourcing capabilities to deliver significant cost reductions and long-term economic benefits."

The project will be rolled out in France, the United Kingdom, Germany, the Netherlands, Austria, Belgium, Italy, Spain, Ireland, Portugal, Switzerland, Monaco, the United States and Canada over the next 15 months.

Contact(s) information

Jenny Galitz
IBM Media Relations
(646) 598-4551
galitz@us.ibm.com

Hitesh Patel
Coty Inc.
(212) 209-6773
hitesh_patel@cotyinc.com

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