2006 a successful fiscal year

New salon openings planned in 2007

Strong sales growth in Q1 2007

Düsseldorf, April 25, 2007 – At today’s annual accounts press conference in Düsseldorf, the Management Board of Essanelle Hair Group commented on the financial statements for 2006 and presented the sales and earnings projections for the current fiscal year 2007.

Positive development in fiscal 2006
In fiscal year 2006 the company moved forward with its growth strategy. With the previous year’s positive development continuing across all sections of its operations, Essanelle Hair Group recorded a 3.5% increase in sales to EUR 117.5 million. The HairExpress concept achieved particularly strong growth of 28.5% to EUR 17.6 million. TOP TEN, which is still a young concept, was also expanded further, with 10 new salons opened in the fiscal year. At EUR 1.9 million, up from the previous year’s EUR 0.3 million, TOP TEN made the first significant contribution to sales. Climbing 22.5% to EUR 5.3 million, pre-tax earnings exceeded the target of EUR 4.3 million. Apart from good operations, the company also benefited from a non-recurrent effect in an amount of EUR 0.8 million from the sale of the mod’s hair franchise rights.

“2006 saw us achieve the turnaround in sales. The fourth quarter was particularly strong, with sales growing by 6.7%. We expect to continue this trend in the first quarter of 2007. According to preliminary figures, sales growth in the first three months exceeded 6%,“ said Uwe Grimminger, Chairman of the Management Board of Essanelle Hair Group.

Outlook on 2007
To continue the growth strategy initiated in 2005, the Essanelle Hair Group plans to push ahead the expansion of its salon network also in the current fiscal year. 50 new salons are to be opened in 2007, with the main focus on the fast-growing HairExpress, TOP TEN and Super Cut concepts.

“Should our sales and earnings projections be met, we will pay out the first dividend for the fiscal year 2007 subject to the approval of the Supervisory Board and the Shareholders’ Meeting. Our minimum target is pre-tax earnings at the adjusted 2006 level of EUR 4.5 million. Unless the general conditions change to the negative, we also believe that earnings may rise ahead of sales,” said Achim Mansen, Board Director of the Essanelle Hair Group.

The company expects sales to grow by 5% to 10% in 2007 and projects an earnings performance that is at least on a par with the year 2006.

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