Law Firm of Levi & Korsinsky, LLP Announces Investigation into Possible Breaches of Fiduciary Duty by the Board of Physicians Formula Holdings, Inc. in Connection with the Sale of the Company to Swander Pace Capital

Levi & Korsinsky is investigating the Board of Directors of Physicians Formula Holdings, Inc. (“Physicians Formula” or the “Company”)

for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to affiliates of Swander Pace Capital. Under the terms of the transaction, Physicians Formula shareholders will receive $4.25 per share of Physicians Formula stock they own. The transaction has a total approximate value of $65 million. The investigation concerns whether the Physicians Formula Board of Directors breached their fiduciary duties to stockholders by failing to adequately shop the Company before entering into this transaction and whether Swander Pace Capital is underpaying for Physicians Formula shares, thus unlawfully harming Physicians Formula stockholders. In particular, at least one analyst set a price target for Physicians Formula stock at $5.00 per share.