REPEAT/Hispania Capital Invests in the Samy Companies, the Leading Hair Care Brand Sold on the Home Shopping Network and Major Hair Product Retailer Throughout the Americas

Business Wire, March 15, 2004

Business Editors

REPEATING...

CHICAGO--(BUSINESS WIRE)--March 15, 2004

Hispania Capital Partners announced today its investment in the Samy Companies, a leading brand of salon hair care products, sold through direct market channels in the U.S. and Europe, and major retail outlets throughout the Americas.

Hispania's investment will enable the company to expand its retail distribution, increase its marketing expenditures to build brand and consumer awareness as well as solidify its working capital structure. The new entity remains Hispanic owned and operated.

The Samy Companies manufacture and market two principal lines of salon-quality hair care products, Samy Salon Systems and Samy Salon Collections. Together they comprise over 120 different products. Samy Salon Collections, the #1 selling hair care brand on the Home Shopping Network, is sold exclusively "on-air" in the U.S. and Europe. Samy Salon Systems, the retail brand, is sold at leading drugstores, food and mass-market retailers in the U.S. and Puerto Rico including Target, Wal-Mart, Eckerd, CVS and many others. Samy Salon Systems is also sold in Mexico and distribution will commence in Central America the second half of this year.

Victor L. Maruri, a Partner at Hispania Capital Partners, commented, "In the U.S. Hispanic Market, there are numerous companies with significant name or brand recognition, yet limited resources. The Samy Companies is one such example. Our investment will enable Samy to broaden its distribution amongst major retail outlets serving consumers already well acquainted with the Samy brand."

Luis Delgado, President and CEO of Samy Companies, believes the company is well poised for significant growth in the coming years. "First, the Samy brand is a household name in the Hispanic market where above average consumption of beauty products and brand loyalty will drive sales in that segment. However, our brand is unique in that it also appeals and sells as well in the general market as is evidenced by our success in non-Hispanic areas and the Home Shopping Network. The partnership with Hispania will allow us to substantially increase our marketing expenditures thereby increasing our brand awareness and expand upon our customer base."

The U.S. hair care market is a $6.6 billion industry. The market is comprised of shampoo, hair color, conditioner, gel and mousse accessories, and hair sprays. From 1997 through 2002, shampoo and conditioner sales grew 19%, driven largely by the sales of conditioner, which grew 26% in that time period. Through 2007, shampoo sales are expected to grow 15% and conditioner 20% with salon brands growing faster than the overall market

Samuel "Samy" Suarez, the company's Creative Director and the face and spirit of the Samy hair care brand, is recognized by USA Today as one of the ten best hairstylists in the U.S. As a principal shareholder, Mr. Suarez will serve on the company's Board of Directors and will continue as the company's principal spokesman, and marketing personality.

The U.S. Hispanic population currently stands at over 39 million and is growing at close to four times the rate for the rest of the population. Hispanic's purchasing power today stands at over $650 billion and has increased 30% since 2001, double the pace for the rest of the U.S. population.

Carlos L. Signoret, a Partner at Hispania Capital Partners, added, "Samy's strong brand and expertise in targeting Hispanic consumers was a strong attraction for our group. Hispania's investment in Samy fits well with our investment strategy of providing growth capital and management support to companies whose products and services are favorably positioned to take advantage of these strong demographic trends."

Hispania Capital Partners is a Chicago based private equity fund focusing on investment opportunities in later-stage companies serving the U.S. Hispanic market in the areas of media, business services, consumer products, financial services, information technology, education and food manufacturing and distribution.

For additional information on Hispania Capital Partners please visit http://www.hispaniapartners.com and/or http://www.samysalon.com.