Essanelle Hair Group presents definitive Q1 figures

Pre-tax earnings rise by around 70% to Euro 0.9 million

Superb start to new financial year

Düsseldorf, 18 May 2007 – Based on its definitive figures for the first quarter of 2007, the Essanelle Hair Group has successfully maintained the positive performance reported for the 2006 financial year, achieving further substantial improvements in its sales and earnings. Sales grew by 6.3% to Euro 29.4 million (previous year: Euro 27.6 million), thus clearly illustrating the positive impact of the expansion strategy upheld in 2006. The Group’s salons have also more than compensated for the increase in VAT since 1 January.

“This sales growth represents the seamless continuation of our performance in the previous quarters,” commented Uwe Grimminger, Chairman of the Management Board of Essanelle Hair Group AG. “The salons opened in the past year are now making a substantial contribution to our sales. This development will continue throughout the year.” Essanelle Hair Group opened more than 50 new salons in 2006. A further 14 salons, most of which in the high-growth TOP TEN, HairExpress and Super Cut concepts, were opened in the first quarter of the current financial year.

The key earnings figures also provide clear proof of the company’s positive performance. EBITDA (earnings before interest, tax, depreciation and amortisation) improved by 28.1% from Euro 1.8 million to Euro 2.3 million. Pre-tax earnings rose by 70.1% to Euro 0.9 million, as against Euro 0.5 million in the first quarter of the previous year. “This represents a superb start, even if we are not able to maintain these figures for the year as whole,” added company CFO, Achim Mansen. “We are confident that we will reach our targets of achieving sales growth of 5% to 10% and at least matching the adjusted pre-tax earnings reported for 2006”. The Essanelle Hair Group plans to press ahead with the continuous expansion of its salon network in the current financial year as well, thus maintaining the growth course already launched in 2005.

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