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Use of Proceeds We estimate that our net proceeds from the sale of shares of our common stock being offered by us hereby at an assumed initial public offering price of $ per share, the midpoint of the range set forth on the cover page of this prospectus, after deducting estimated underwriting discounts and estimated offering expenses, will be approximately $ million. We will not receive any proceeds from the sale of the shares of our common stock being offered by the selling stockholders, or the additional shares that would be sold by the selling stockholders if the underwriters exercised their over-allotment option. We intend to use the net proceeds to us from the sale of common stock, together with borrowings under our senior credit facilities, principally to fund the redemption of $70 million in aggregate principal amount of our outstanding 10 3/4% Notes due 2011 and to pay related transaction fees, expenses and taxes. The following table sets forth the estimated sources and uses from this offering (dollar amounts in millions), assuming the sale of the shares of our common stock offered hereby occurred on September 30, 2003. Sources Cash on hand $ Drawings under revolving credit facility Common stock offered by us hereby Total $ Uses Redemption of 10 3/4% Notes $ Estimated fees, expenses and taxes Total $ In addition, prior to the closing of this offering, we expect to make a final liquidating distribution of up to $20 million in cash to shareholders of CDRJ Investments (Lux) S.A. We expect to fund this payment by drawing on the revolving portion of our senior credit facilities. In connection with the May 2003 recapitalization, we used the proceeds from the sale of the 10 3/4% Notes to: (1) redeem or satisfy and discharge all of our then-outstanding 11 3/4% Senior Subordinated Notes due 2008, in an amount equal to 105.875% of the aggregate outstanding principal amount thereof, plus accrued and unpaid interest to the redemption date; (2) repay all amounts outstanding under our then-existing credit facilities concurrently with the termination of all commitments thereunder; (3) make a liquidating distribution of approximately $157.6 million to shareholders of our former parent company, CDRJ Investments (Lux) S.A.; (4) make certain compensatory payments of approximately $10.4 million to holders of options to acquire capital stock of CDRJ Investments (Lux) S.A., including to certain directors and members of management, in connection with such liquidating distribution; and (5) pay related transaction fees, expenses and taxes.