• Essanelle Hair Group presents results of the first half-year

• Sales revenues registered at EUR 62.3 million after EUR 63.7 million in the previous year

• Earnings before taxes reach EUR 1.2 million

Düsseldorf, 23 August 2010 – The Essanelle Hair Group AG generated sales revenues of EUR 62.3 million in the first half year of 2010, being 2.2% behind the previous year's results of EUR 63.7 million. Reasons for this are a rather slowly improving situation of the retail industry and a weak department store environment.

Achim Mansen, Chief Executive Officer (CEO) of Essanelle Hair Group AG, stated: "We have already opened 27 new salons in the first six months, but this cannot just yet compensate completely for the lost sales revenues of the salons we had to close last year. This applies especially with respect to the situation at our department store locations as well as against the background of a generally weak retail industry environment, which, despite an upward trend, registered less sales revenues in real terms in the first half year compared to last year."

Looking at the individual salon concepts, HairExpress shows the largest growth with an increase of 10.6% to EUR 16.9 million (previous year: EUR 15.3 million). Super Cut was able to increase its sales revenues by 1.6% to EUR 10.3 million after EUR 10.1 million in the previous year. The ‘essanelle Ihr Friseur’ concept, which was affected the most by the closure of 19 salons, reached sales revenues of EUR 29.3 million after EUR 32.3 million (-9.4%). The brand TOP TEN totalled sales revenues of EUR 2.5 million after EUR 2.7 million. The Beauty Hair Shops, which specialise in the retail of products exclusive to hairdressers, registered sales revenues of EUR 3.2 million, thus reaching the same level as the previous year.

Earnings below previous year's level

The declining sales revenues also affected the earnings of Essanelle Hair Group AG in the first half year. The earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased from EUR 4.6 million to EUR 3.9 million compared to the previous year. The earnings before taxes (EBT) are registered at EUR 1.2 million after the first six months of 2010 after EUR 1.7 million in the previous year. The earnings per share amount to EUR 0.17 after EUR 0.22 in the previous year.

"An improved development of sales revenues compared to the first half year still remains a prerequisite for an earnings increase for the full year. We will contribute our share to improve sales revenues and earnings with the opening of about 60 new salons this year and a strict cost management. However, in consideration of the developments in the retail industry and a difficult department store environment, we are still cautious in giving short term prognoses – but in the medium-term we are optimistic to show a continuous growth again," Mansen commented.

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