Mosaic Expands into Cosmetic Category Through Acquisition of Channel Source; Reginald ``Reggie'' Lyon named Vice President, Client Services

Business Wire, March 30, 2005

DALLAS -- Mosaic, the leading field sales and marketing company whose people are changing the way brands connect with consumers, recently acquired the assets of Atlanta-based Channel Source Inc., a retail service company exclusively dedicated to the cosmetics industry. Channel Source will consolidate and move operations to Dallas while retaining its field presence of over 400 representatives nationally.

Founded in 1999, Channel Source services cosmetic distributors, manufacturers and service companies through a broad range of retail activities, including cosmetic resets, updates, coverage, data collection and promotional support. Mosaic will continue to work with Channel Source clients including Del Laboratories, Inc., maker of product lines such as Sally Hansen, Miss Kiss, N.Y.C. Cosmetics and Healing Beauty Cosmetics; Revlon Corp., which produces the Revlon and Almay product lines; L'Oreal's brands Maybelline & L'Oreal; and Neutrogena Cosmetics.

"Combining Channel Source's cosmetic expertise with Mosaic's extensive, scalable resources will allow us to provide cosmetic retailers and brand manufacturers with a strong alternative for managing and servicing brands at retail," said Jim Rose, CEO of Mosaic.

In addition, Channel Source founder, president and CEO Reginald "Reggie" Lyon has joined Mosaic as vice president, client services. Lyon will oversee the cosmetics business unit.

"Mosaic's ability to lead in a trend-oriented category is exemplified by its leadership in the entertainment business," said Lyon. "Both companies share a client-oriented approach, and as a part of Mosaic we can now provide exceptional retail information on customer trends, sales and consumption."

Lyon brings to Mosaic a diverse business background with more than 20 years in the consumer products industry. He has worked with major cosmetic Fortune 500 companies to formulate product launch and brand development strategies. His extensive experience in sales, management, marketing and strategy includes tenure with Proctor & Gamble (NYSE:PG), Schering-Plough (NYSE:SGP) and Revlon (NYSE:REV), where he served as Vice President of the Revlon Retail Operations Group and was responsible for all in-house merchandising activities. He holds a BA from Duke University and an MBA from the University of Chicago.

About Mosaic

For forward-thinking companies intent upon optimizing their brand investment, Mosaic (www.mosaic.com) is the field sales and marketing company whose people are changing the way brands connect with consumers. Mosaic provides "people-facing" solutions in consumer and business-to-business environments through dedicated client teams in merchandising, selling, customer acquisition and event marketing service areas. Mosaic's field specialists embody the image and soul of the brands they represent, providing clients a solution for the last three feet of the sale that maximizes ROI.