Dear Madame, Dear Sir, Dear Shareholder,

Once agin, I reiterate my complete confidence in the development of our Group, and do this for 4 essential reasons:

1/ ULRIC DE VARENS is the only creator brand at an attractive price, I emphasie this is the only one on the market.
ULRIC DE VARENS is pleasure and emotion at prices resolutely accessible for everyone.
This is a unique position that is the main strength of our brand.

2/ ULRIC DE VARENS controls its markets throught its subsidiaries. This is an important development axis. This strategy, which gives us the means of direct access to important acohol perfume markets, has allowed us to become the leader in ladies's perfumes in our market in France and very recently to become the leader in Germany in the drugstore markets (source AC Nielsen 2006). Strenghtened by success, I do not see why, in time, we cannot obtain similar results in other countries.

3/ ULRIC DE VARENS has known and reconized know-how in the creation of its products (ULRIC DE VARENS was one of the eleven nominees for the Audace Créatrice prize 2006 awarded by the President of the Republic, JAcques Chirac).

4/ ULRIC DE VARENS is one of the most profitable economic models. In August 2006 the mnthly magazine l'Entreprise classed us nationally as the 36th most profitable SME.

ULRIC DE VARENS thus has all the keys for futur success.
We expectto continue the development of our activities at a hight rate of growth and that they will be value creators in the same way as they have been up to now.

ULRIC VIELLARD Chairman and CEO