Market Overview

Sally Beauty Launches Exclusive Hair Color Kits in a Box

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Better at-home color with the revolutionary kits that produce
stunning professional results with DIY ease for gorgeous, silky hair

Sally Beauty Holdings, Inc. (NYSE:SBH) ("the Company") today announced
that Sally Beauty has launched exclusive box hair color kits in their
private label brand, ion, and in one other national brand.

ion™, the professional hair color line trusted by stylists, now delivers
professional hair color to homes with the game changing Intensive Shine®
color kit. The kits leave hair radiant and luxurious in four easy steps,
providing shine and smoothness through a unique blend of precious oils.
Initially available in ten ravishing shades, the kits make hair
instantly look and feel healthier with the added convenience of DIY
application at an exceptional value launch value of $9.99.

"We are excited to introduce the ion Intensive Shine hair color kits
that make gorgeous, salon-quality hair possible in the comfort of your
home," said Carrie McDermott, President of Sally Beauty. "This
initiative is grounded on recent consumer research conducted that shows
a high percentage of our loyal Sally Beauty customers still rely heavily
on the simplicity and ease of box color. Up until now, Sally Beauty has
only sold professional color, separate from developer and separate from
the accessories needed to complete the task. If our customers desire a
box color option, we now have provided that option."

The ion Intensive Shine kits are permanent hair color kits that include
everything needed to achieve salon-grade hair at home. The kits include
hair color, a pre-filled applicator bottle with developer, pre-color
treatment, after-color treatment, gloves, and step-by-step instructions.
The naturally conditioning oils, an amalgam of Moroccan Argan, Tahitian
Tamanu, Camellia, and Coconut oils, combine with superior quality dyes
to transform weak, dull hair to hair that is smooth and healthy looking.
The easily applied non-drip formula boasts a pleasant fragrance and 100%
fade resistant gray coverage. Each application adds vibrancy and shine
-- up to 2.5 times more shine on untreated hair.

McDermott commented, "ion is known for its luxurious formulas that are
incredibly gentle and protect against damage, and is proudly a preferred
hair color line by the industry's top stylists. With the Intensive Shine
hair color kits, we've made it easy to have healthy looking, lustrous
hair by delivering pro color in a box. The DIY convenience allows you to
have salon-quality hair on your own schedule, something our customers
are sure to love."

The ion Intensive Shine Hair Color Kits are now available in all Sally
Beauty locations in the US and Puerto Rico, and sallybeauty.com.

About Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc. (NYSE:SBH) is an international specialty
retailer and distributor of professional beauty supplies with revenues
of approximately $3.9 billion annually. Through the Sally Beauty Supply
and Beauty Systems Group businesses, the Company sells and distributes
through 5,170 stores, including 184 franchised units, and has operations
throughout the United States, Puerto Rico, Canada, Mexico, Chile, Peru,
the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain and
Germany. Sally Beauty Supply stores offer up to 8,000 products for hair,
skin, and nails through professional lines such as OPI®,
China Glaze®, Wella®, Clairol®, Conair®
and Hot Shot Tools®, as well as an extensive selection of
proprietary merchandise. Beauty Systems Group stores, branded as
CosmoProf or Armstrong McCall stores, along with its outside sales
consultants, sell up to 10,500 professionally branded products including
Paul Mitchell®, Wella®, Matrix®,
Schwarzkopf®, Kenra®, Goldwell®, Joico®
and Aquage®, intended for use in salons and for resale by
salons to retail consumers. For more information about Sally Beauty
Holdings, Inc., please visit sallybeautyholdings.com.

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