Elizabeth Arden Salon Holdings, Inc. Merges With Mario Tricoci Hair Salons & Day Spas; Creating America's Largest Prestige Salon and Day Spa Company

Business Wire, April 4, 2000

Business Editors

PHOENIX/CHICAGO--(BUSINESS WIRE)--April 4, 2000

Elizabeth Arden Salon Holdings, Inc. and Mario Tricoci Hair Salons and Day Spas of Chicago announced today that following a substantial investment by North Castle Partners, they have agreed to merge, creating America's largest national prestige salon and day spa company.

With their combined expertise in both the hair and spa service categories, Elizabeth Arden Salons and Mario Tricoci Hair Salons and Day Spas are now poised to lead the high growth day spa industry to a level of excellence and service never before seen. This new partnership will provide both associates and clientele several major benefits, including expanded resources required to create the most innovative services, as well as the ability to achieve rapid growth. The new company is expected to expand to over 300 locations over the next five years in key markets worldwide. In the year 2000, the combined companies are projected to produce sales of over $160 million.

According to Mario Tricoci, who will serve as President of the combined company, "By combining our expertise, we plan to deliver the world's most innovative salon and spa services to meet the needs of our discerning clients. We'll also be able to offer our employees the most in-depth advanced education programs, combined with state-of-the-art facilities, which will allow them to provide incredible services for our clients across the country."

According to Elizabeth Arden Salon Holdings, Inc. President and CEO, David Stoup, who will lead the new company as its Chief Executive Officer, "In addition to the many growth opportunities for our existing businesses, this partnership signals our intention to pursue other strategic acquisitions in the prestige portion of the beauty services industry."

Founded in 1992, Elizabeth Arden Salon Holdings, Inc. currently owns and operates 120 full service salons and day spas across the United States and in London. This includes 20 Red Door Salons & Spas in freestanding and prestige department store locations, such as Saks Fifth Avenue and Dayton's, plus 100 individual brand-name department store salons located throughout the United States.

The late Elizabeth Arden started her beauty empire in New York City in 1910. With a $6,000 investment, she opened her first Elizabeth Arden Red Door Salon on Fifth Avenue, pioneering what is known today as the "modern day spa."

Founded in 1977 by Mario and Cheryl Tricoci, the Mario Tricoci Hair Salons and Day Spas are the Midwest's premiere destination for quality, upscale salon and day spa services. They currently operate 21 locations in the Midwest, primarily in the Chicago area.

After immigrating from Italy in the 60's, Mario Tricoci quickly became known for his high-fashion, low maintenance hair cuts, which allowed busy women a stylized look in minimal time. In 1986, armed with extensive research on destination spas, Mario and Cheryl entered the day spa business and have built a chain of luxurious urban retreats for their loyal clients.

North Castle Partners of Greenwich, CT and San Francisco, CA is the country's largest investment group that specializes in the booming healthy living and aging market. Their investments include Leiner Health Products, Mountain Sun Organic Juices, Grand Expeditions Travel, Experimental and Applied Sciences (EAS), Mothernature.com, Whole People.com and others.

According to North Castle Partner's Brent Knudsen, "In 1999, we targeted the fast-growing day spa industry as a key area of focus for our healthy living portfolio. All indicators suggest that this is an area that will grow tremendously over the next several years. To that end, we carefully studied the leaders in the industry and identified both Elizabeth Arden Salons/Spas and Mario Tricoci Hair Salons and Day Spas as the leading players in the prestige full-service salon/ day spa area. We are thrilled to help bring together two great companies and anticipate much success in this exciting merger."

The new company's administrative headquarters will be located in Phoenix, AZ at Elizabeth Arden Salon Holdings current corporate offices and the training and education facilities will be operated out of the Mario Tricoci Hair Salons and Day Spas current headquarters in Chicago, IL.