Further Improvement in Key Earnings Figures in 2005
Positive Start to the 2006 Financial Year
50 New Salon Openings and Sales Growth Planned

Düsseldorf, 9 May 2006 – In the 2005 financial year, Essanelle Hair Group AG succeeded in maintaining the positive developments seen in the previous year. Earnings before taxes calculated pursuant to the German Commercial Code (HGB) amounted to Euro 2.6 million, equivalent to an increase of 44% on the 2004 financial year. The annual net surplus rose by 53% in the 2005 financial year to reach Euro 2.3 million (2004: Euro 1.5 million). Based on the first-time application of IFRS accounting standards, the Essanelle Hair Group reported year-on-year improvements both in its pre-tax earnings, which amounted to Euro 4.3 million (previous year: Euro 3.5 million), and in its annual net surplus, which amounted to Euro 2.6 million (previous year: Euro 2.0 million).

“The EBITDA of Euro 10.1 million also underlines the strength of our liquidity,” commented Board Director Achim Mansen. “This will enable us to achieve an optimal structure for the financing of our planned growth.”

The sales of the consolidated group amounted to around Euro 113.5 million in 2005 (2004: Euro 114.7 million). Of the company’s concepts, Super Cut, which generated sales growth of 3.9% to Euro 18.5 million in 2005, was particularly convincing, as were the Beauty Hair Shops, whose sales with exclusive hairdressing products increased by around 23% to Euro 3.2 million. Moreover, 2005 also witnessed the opening of the first salons in the new TOP TEN concept. This brand, which is tailored to the needs of young and price-conscious customers, is expected to make a key contribution to the growth of the Essanelle Hair Group in the coming years.

Positive start to the 2006 financial year

The current financial year has also begun positively for the Essanelle Hair Group. “Our first quarter sales will exceed those in the equivalent period of the previous year, thus providing the desired positive start. This development should then be maintained over the whole financial year”, remarked Uwe Grimminger, Chairman of the company’s Management Board.

The Essanelle Hair Group plans to maintain the growth course initiated in the previous year. A total of 50 new salons are to be opened and consolidated sales are budgeted to rise by 5% to 10%. In terms of key earnings figures, the company is aiming at least to match the level of pre-tax earnings reported for the previous year.

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