Essanelle Hair Group presents Q1 figures

• Sales revenues at EUR 31.0 million compared to EUR 31.3 million in prior-year period

• Slightly positive earnings before taxes of EUR 0.2 million

• Outlook remains uncertain

Düsseldorf, 19 May 2009 – Sales revenues of the Essanelle Hair Group AG in the first quarter of 2009 did not quite match the strong first quarter of the previous year. Total sales revenues amounted to EUR 31.0 million, down by 0.9% on the previous year’s EUR 31.3 million. This development is due to three reasons: The very weak retail environment, the closure of ten salons in Hertie department stores as well as the fact that the traditionally strong Easter business was booked only in April.

Achim Mansen, CEO of the Essanelle Hair Group AG, said: “Of course, we are not satisfied with the current sales development. As expected, we had a difficult start into 2009. Although we saw strong sales in April due to the postponement of the Easter business, we cannot forecast a clear trend for the full year yet.”

The breakdown by salon concepts was as follows: Sales revenues of the TOP TEN and HairExpress concepts continued to grow. Sales revenues of HairExpress rose by 18.3% to EUR 7.3 million (previous year: EUR 6.2 million), while the TOP TEN brand generated a slight sales increase by 1.6% to EUR 1.3 million (previous year: EUR 1.3 million). Sales revenues of Super Cut fell by 2.6% from the previous year’s EUR 5.1 million to EUR 5.0 million, while sales revenues of the essanelle Ihr Friseur concept, which was most affected by the closure of salons in Hertie department stores, dropped by 8.8% to EUR 15.8 million, after EUR 17.3 million in the first quarter of 2008. The Beauty Hair Shops, which specialise exclusively in the sale of salon products, boosted their sales revenues by 17.4% to EUR 1.5 million (previous year: EUR 1.3 million).

Earnings figures reflect the trend in sales revenues
Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined from the previous year’s EUR 2.4 million to EUR 1.6 million. At EUR 0.2 million, earnings before taxes (EBT) in the first quarter of 2009 remained positive, but fell clearly short of the very good previous year’s result of EUR 1.0 million. Earnings per share amounted to EUR 0.02, after EUR 0.13 in the previous year.

Mansen explained: “Especially in the first quarter, which is traditionally characterised by weak earnings, our figures clearly reflected the development of our sales revenues. We will, however, significantly improve our earnings in the course of the year. Our target remains to reach the previous year’s result. In order to achieve this, we do, however, need at least a moderate increase in sales revenues. Given that the general economic development is difficult to predict, any forecast of our sales revenues and earnings remains subject to a considerable degree of uncertainty.”

For more details of the first quarter of 2009, please refer to the First Quarter Report 2009 on the company’s website at www.essanelle-hair-group.com. The Interim Report 1/2009 will be published on May 29, 2009.

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