Essanelle Hair Group AG
Ad Hoc Announcement

Essanelle Hair Group parts company with mod’s hair
Focus on growth with proprietary salons

Düsseldorf, 31 May 2006 – Essanelle Hair Group AG will part company with its franchise salons operating under the mod’s hair brand and has accordingly terminated the master franchise agreement. The salons will be operated by ICF International Coiffeure Franchising GmbH from 1.7.2006.

The company will rather focus in full on its expansion with proprietary salons, given that these are expected to harbour greater sales and earnings potential. The franchising revenues accounted for around 1% of total sales in the 2005 financial year. The disposal of the franchise rights will generate extraordinary income of around Euro 0.8 million for the Essanelle Hair Group in this financial year.Contact:

Contact:
Haubrok Investor Relations
Michael Müller
+49-21 56-49 65 195
M.Mueller@haubrok.de