Avon (AVP) and IBM Announce Strategic Business Partnership to Strengthen Avon's Human Resources Organization

Avon Products, Inc. (NYSE: AVP) and IBM (NYSE: IBM) today announced a strategic multi-year business partnership by which IBM Global Services will provide Avon with a portfolio of specialized human resources services and technologies. Financial terms were not disclosed.

Under the partnership, IBM will provide Avon with support for certain
key HR processes, including compensation, payroll, benefits, and
performance management. IBM also will maintain HR call center support for Avon employees in a select number of Avon countries worldwide.

In addition, IBM will provide Avon with specialized technologies,
including a Global Human Resources Information System, as well as compensation planning, performance management and workforce analytic tools to standardize processes and make Avon's HR function more streamlined and efficient.

"We are pleased to partner with IBM as we continue to build a leaner, faster and more strategic human resources organization," said Lucien Alziari, Avon's Senior Vice President, Human Resources. "IBM's world-class capabilities will enable Avon's HR professionals to serve our employees with leading-edge services, and at the same time, to focus more fully on implementing our strategic talent management and organizational development
initiatives."

Mary Sue Rogers, Vice President, Human Resources Business Process Services, IBM, added: "Leading companies such as Avon are increasingly using business transformation outsourcing as a tool to drive strategic value, allowing them to become more flexible and adaptive while focusing employees on the company's core competencies. IBM's extensive experience in human resources services and the consumer products industry will bring innovation and new efficiencies to Avon and its employees."

Avon, the company for women, is a leading global beauty company, with over $8 billion in annual revenue. As the world's largest direct seller, Avon markets to women in well over 100 countries through over five million independent Avon Sales Representatives. Avon's product line includes beauty
products, fashion jewelry and apparel, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Avon Solutions, Advance Techniques, Avon Naturals, Mark, and Avon Wellness. Learn more about Avon and its products at http://www.avoncompany.com