Source:          Lumene Press Release

Lumene to increase exports through online shopping from October

Lumene is launching an online shop today, October 8, 2007, aimed particularly at consumers in EU countries in which Lumene products are not yet sold.

User experiences of the logistics of the online shop will be collected in Finland first before extending deliveries to all EU countries in November.

Extensive range available safely over the Internet

There will be a direct link to the online shop at the www.lumene.com website.  User-friendliness and ease of ordering were key factors in planning the online shop.  Even the most inexperienced internet user will easily be able to find the products best suited to them.

The shop website is visually appealing and structurally clear. There are various search functions: users can search for products by product group or for products meant for a certain age group.  There is an extensive range of Lumene skin care products and cosmetics available.  Lumene for Men products are of course also prominently displayed.  The ordering process is safe: payment is made through online banking over a secure connection.

Online shop is an additional service for consumers

The popularity of online shopping has increased, and Lumene is offering its online shop as an additional service for consumers who for whatever reason are unable to buy Lumene products in an ordinary shop or are unable to go shopping at all.  Busy employees can order their cosmetics to be delivered directly to their workplace, parents at home with children can make their purchases quickly and easily online, and users can even have Christmas presents delivered straight to the recipient’s doorstep.

Source:          Lumene Press Release

Lumene is By Far The Most Trusted Colour Cosmetics Brand in Finland

The Reader’s Digest Trusted Brand study has, for the seventh time, found Lumene to be Finland’s most trusted colour cosmetics brand.  Lumene received 52% of the mentions in its own category in Finland.

People who trust the Lumene brand tend on average to be more satisfied with their lives, more optimistic, perceptive and modern.  About 24,000 respondents took part in the study, the seventh of its kind, carried out in 15 European countries.  In Finland over 1,300 subscribers to Readers’ Digest took part in the study.  The study investigated the respondents’ most trusted brands in 38 different product groups.

Respondents explained what their most trusted brand was and then assessed four of its characteristics on a scale of 1-5.  The characteristics were: quality, reasonable price, powerful brand image and understanding of consumer needs.  The study used open-ended questions to find the trusted brands.

The product development of Lumene colour cosmetics and skin care products is inspired by the Nordic climate and its changing seasons.  Lumene products use raw materials from the Nordic wilderness combined with advanced technology.  Lumene is the clear market leader in Finland with about a 30% market share in cosmetics products in Finland.

Source:          Lumene Press Release

Lumene To Cooperate With One Of The Largest Department Store Chains In The USA

Lumene and the American department store chain Target have developed a partnership.  Target is one of the largest department store chains in the USA and is listed on the New York Stock Exchange (NYSE).  This agreement will increase the number of outlets where Lumene products are sold in the USA to over 7,000.  LUMENE Group products have the widest distribution of all Finish consumer goods sold in the USA.  Last year, sales of Lumene products in the USA grew by almost 30%.

Lumene products will be available at about 1,500 Target stores from March.  The Target store network covers almost all of the states in the USA.  As a pilot project, Lumene products have been on sale in 30 Target stores in the USA over the past 6 months.

According to Target, Lumene products enhance the chain’s cosmetics selection, as the store’s business concept is to offer its customers high-quality cosmetics products under the slogan "Expect more, pay less".  Surveys show that Target is the second most popular retail chain in the USA.

"American consumers have welcomed Lumene.  Lumene cosmetics offer a unique combination of advanced technology and natural raw materials from the Arctic.  The pilot clearly demonstrated that Lumene products provide added value for Target customers," explains Joe Pastorkovich, Vice President of LUMENE North America.

Lumene on sale at two national chain stores

American consumers can now buy Lumene products at two national chain stores in the USA, CVS/pharmacy and Target.  Lumene launched its cooperation with the CVS retail chain over three years ago, and Lumene products are now available in over 6,000 CVS stores. Lumene set up its own North American subsidiary in 2006.

"The USA plays a significant role in our growth strategy.  We are extremely satisfied with our comprehensive chain of distribution in the USA.  Our partners recognize our assets, which are the Lumene products containing effective Arctic raw materials and the enthusiastic response from American consumers and also that our company is able to listen to and meet the needs of American consumers explains Tapio Pajuharju, President and CEO of the LUMENE Group.

FACTS: Lumene in the USA

·         Available at over 7,000 stores all over the USA

·         Products on sale at CVS/pharmacy and Target stores

·         Lumene set up a subsidiary in the USA last year

·         LUMENE North America is headed by Joe Pastorkovich

·         Sales of Lumene products in the USA grew by almost 30% in 2006

·         The best-selling Lumene products in the USA are Lumene Time Freeze Targeted Wrinkle Treatment and Lumene Vitamin+ Radiant C-Energy Age-Defying Intensive Care

Source:          Lumene Press Release

Lumene Distribution In Russia To Expand by almost 300 sales points

Lumene’s distribution channels on the Russian market will expand considerably following the contract made with the Kurs Group which owns the L’Etoile and Sephora retail chains.  The Lumene cosmetics brand will be included in the selections at 260 L’Etoile stores and 12 Sephora stores.  The first Lumene distribution at 50 L’Etoile sales points in Russia will start on November 15, 2006, and it will expand into the other sales points of the chain between January and March 2007.

In addition, Lumene products will be sold at 100 new stores in the L’Etoile and Sephora chains that will be opened in Russia in 2007.

Lumene has strong distribution channels on the Russian market

Lumene will expand its distribution in Russia in cooperation with the rapidly developing trade in all the largest cities in the country.

L’Etoile and Arbat Prestige are the two largest cosmetics retailers in Russia, both competing for market leadership and expanding their businesses rapidly.  In Russia, Lumene is one of the Arbat Prestige chain’s key brands in cosmetics with an annual growth of 51%.

Growth and expansion in the organized modern trade is proceeding rapidly in Russia.  Retail trade chains are expanding into regional growth centres.  At the same time, society is becoming more middle class and, owing to the low income tax, purchasing power is increasing rapidly.

After including the L’Etoile and Sephora chains in its distribution channels, Lumene will have a total of approximately 6,000 sales points in Russia.

In Finland, Lumene cosmetics are sold at approximately 650 sales points.  Lumene is widely distributed in the US as well and its products are sold at over 6,000 stores in the CVS/pharmacy drugstore chain.

Source:          Lumene Press Release

35 Years Of Hair Cosmetics Brand Cutrin

Finnish hair cosmetics brand Cutrin - the only publisher of Scandinavian hair fashion news - will celebrate its 35-year history as spokesperson and expert for Nordic hair fashion and design on May 23 at the Kamppi Event Center in Helsinki.  The anniversary fashion show held at the Kamppi Event Center will present Cutrin hair fashion over the decades (1970-2000) accompanied by music, fashion clothes and spectacular dance routines to bring back memories of each particular decade.  The gala will culminate in a presentation of the Cutrin Sweet Drama Look for the coming fall.  The Sweet Drama Look takes hair fashion back to the stylish elegant 1940s with deliciously seductive shades of chocolate and violet.

Success both at home and abroad

"35-year-old Cutrin really deserves this celebration - it is one of the leading hair cosmetics brands in the Nordic countries and it has carried out long-term work to promote Finnish hair and hair design since the 1970s.  It is the only real expert in its field on the Scandinavian hair-type and climate.  As a result of this, the company has experienced strong growth - last year the profits for the Cutrin Business Unit developed favourably and grew 22%.  Cutrin now operates in the entire area that surrounds the Baltic - in Finland, the Nordic countries, the Baltic states and Russia.  For many years Cutrin was the distributor for the largest brand on the market in this sector and this historic competitive status has made Cutrin better known internationally that it is in Finland.  Today, approximately 80% of its business comes from the Finnish, Norwegian and Russian markets.  We have been focusing strongly on globalization while humbly recognizing the importance of our domestic market.  Consumers have probably already noticed that we have taken up the challenge of rising to the top of the Finnish market, too," explains LUMENE Group President and CEO Tapio Pajuharju.

"We have 10 active export countries and almost 300 professionals working full time to promote the Cutrin brand and there is enormous international potential.  For example, in Norway, we are already among the most popular hair cosmetics brands.  Our aim is to continue our successful growth and to make the Cutrin brand into a successful business unit worth approximately €50m.  We have a good team and we are proud to be the only publisher of Scandinavian hair fashion news - we publish Cutrin Look twice a year.  In addition to launching hair trends and new products, Cutrin also carries out important work to promote Scandinavian hair design by providing continuous training for hair styling professionals," explains Pasi Anttila, Vice President of the Cutrin Business Unit.

35 years of promoting Scandinavian hair design

High-quality product development technology and over thirty years of expertise in the Scandinavian hair-type and scalp go into Cutrin products.  All Cutrin products have been developed and produced in Finland especially for the Scandinavian hair-type and the demanding Scandinavian climate.  The product range comprises lines for both professional hairstylists and for consumers.

Cutrin products are sold in Finland at hair salons and in the hairstyling departments of large department stores.

The force behind Cutrin is the LUMENE Group, an innovative and rapidly globalizing producer of top-quality products in beauty care and hygiene.  Lumene Cosmetics and Farmos are also LUMENE Business Units.

Source:          Lumene Press Release

LUMENE Group Founds A Subsidiary In The USA

Cosmetics and hygiene product manufacturer LUMENE Group has founded a subsidiary in Boston, USA.  American Joe Pastorkovich has been appointed the head of the new company LUMENE North America.  LUMENE Group’s cooperation with CVS/pharmacy, America’s largest drugstore chain, will increase further, the goal being to conquer the US beauty care markets.

LUMENE North America LLC officially started operations on February 1 2006.  The company is headed by the American Joe Pastorkovich who has broad experience in the US beauty care markets, at Beiersdorf and Kao Brands Inc.  In addition, the US business and the Lumene brand will be built by Export manager Merja Paavolainen from Finland who has been appointed Key Account Manager with responsibility for CVS.

"The subsidiary is our next step in the American market.  We believe that in order to achieve international success we need to be present and close to our customers.  In this way we can also ensure the building of the Lumene brand and quick reactions to any changes in the market.  The USA plays a major role in our strategy of profitable growth and internationalization.  With our own organization we can better influence brand building in accordance with the Lumene concept and development of a product mix that responds to the wishes of American consumers.  Close cooperation with CVS is a tremendous opportunity for us", says Tapio Pajuharju, President and CEO of LUMENE Group.

"The Lumene brand has a unique position in the US cosmetics market, and our growth potential is really great.  According to a survey, nearly 70% of our American customers like Lumene products very much.  Our successful cooperation with CVS will expand in the future", says Joe Pastorkovich, Vice President of LUMENE North America.

The number of Lumene retail outlets in the USA has tripled in a little over two years

LUMENE Group has collaborated with CVS/pharmacy in the USA since 2003.  During a good two years of cooperation with CVS/pharmacy, the number of retail outlets carrying Lumene cosmetics has tripled.  Lumene products are available in 5,400 CVS stores, of which 3,500 offer the full Lumene product range:  skin care, makeup and body care.  The latest launches are the Lumene for Men range and the Lumene Premium Beauty range for demanding 50+ skin care.

There is plenty of growth potential, as CVS has some 65 million Extra Care regular customers and conducts very frequent direct marketing to its regular customers.  CVS/pharmacy strengthened its position by acquiring 700 Av-on and Osco stores from Albertsons Inc; after the acquisition CVS/pharmacy has a total of 6,100 stores.

In addition to the USA the greatest growth is sought in the Russian market

LUMENE Group has already previously announced that it will focus on fewer business areas and extend its operations to the international markets.  The greatest growth is sought in the American and Russian markets.  The goal of the company is to double its turnover over the next five years.  LUMENE Group strengthened its position in Russia last year by acquiring the company’s long-time partner Multilink Trading LLC’s business operations related to Lumene cosmetics and Farmos.

Source:          Lumene Press Release

Lumene - The Most Highly Rated Cosmetics Brand Among Finns

Lumene has risen to a position among the 50 brands that Finns rank the highest.  This is evident from a survey on rating product brands conducted in 2005 by market research company Taloustutkimus Oy and Markkinointi & Mainonta (a Finnish magazine for professionals in marketing and advertising) measuring how Finns ranked a total of 876 brands.

Lumene is the only cosmetics brand among the 50 most highly ranked brands, making it the cosmetics brand that Finns value the most.  Lumene is also a longstanding market leader in the Finnish cosmetics sector (Source:  AC Nielsen Scan Track).

Up by more than 100 places

For Lumene, the climb is significant, rising by more than 100 places from 187^th position last year to 47^th this year.

"In February, we launched a redesigned world and look for the Lumene brand, and the name of the entire company was changed to LUMENE Group, which in accordance with our strategy has reinforced the brand’s status among Finns.  We are extremely pleased with the vote of confidence the brand has received, and will continue to invest heavily in developing the brand," says Tapio Pajuharju, CEO of LUMENE Group.

This year, Fazer (a brand for bakery products and confectionery) dropped down to 10^th place after reigning at number one for a number of years, and Arabia, Fiskars, Hackman, Nokia and Fairy stole the top-five slots.

The sample for the survey on rating product brands carried out by Taloustutkimus and Markkinointi & Mainonta magazine was taken from the population register, and corresponds to the 15-79 year-old population in terms of sex, age and domicile, with the exception of Aland.  The survey was carried out in the form of a questionnaire which was sent by post and contained further information for the respondents.  The survey was carried out for the ninth time, and the results were published in Markkinointi & Mainonta magazine (No. 28/2005) at the end of September 2005.

Source:          Lumene Press Release

A new radiant brand image for Lumene

In 2005, Lumene cosmetics’ 35 year old position as prestigious quality brand will be crowned with new exciting product launches and a new radiant brand image.

The new Lumene communicated radiance, which ever person has inside.  The unique radiance and personal features are easily emphasized and highlighted with Lumene cosmetics products.

Lumene - The Secret of Nordic Beauty

Along with the new brand image, Lumene has launched its new signature slogan "The Secret of Nordic Beauty."  This sentence wraps up the special character of Lumene cosmetics: expertise in Nordic beauty and the traditional scientific knowledge behind the natural raw materials of skin care and colour cosmetics products.

Innovative and up-to-date product development combined with technical knowledge of skin and climate are a good explanation for the continuing success of Lumene cosmetics.