This move marks a first for both. It’s the first time that the Estée Lauder brand itself has partnered with an outside fashion designer, while this is the first time since leaving Gucci that the renowned designer goes back to the fashion business.

“I am delighted to be working with Aerin (Lauder) and John (Demsey) on the creation of the TOM FORD beauty brand. This has been a long time plan of mine and I am very excited to have Estée Lauder, the world's expert in the field of beauty and prestige fragrance, as my partner,” said Tom Ford.

The multi-year alliance is divided into two phases. The first phase is the creation of a limited ‘Tom Ford for Estée Lauder’ line to be sold at Estée Lauder counters to be in time for the Holiday 2005 season. A more extensive collection is expected to be in stores by Spring 2006.

For the second phase, Mr. Ford will launch a separate, stand-alone ‘Tom Ford Beauty’ brand to create and market fragrance and other related products. The line is expected to launch in Fall 2006.

“Tom Ford is a true visionary who instinctively knows what consumers want and how to communicate a strong, style-driven image,” said Aerin Lauder, Senior Vice President, Global Creative Directions, Estée Lauder about Tom Ford.

The alliance represents Mr. Ford's first announcement as a result of the formation of his new company, TOM FORD, and is the first major business initiative from newly appointed Estée Lauder Global Brand President John Demsey.

Terms of the deal were not disclosed.