Salon City Inks Sexy Hair Ad Campaign Featuring American Idol Star Katharine McPhee

Business Wire, July 23, 2007

WEST HOLLYWOOD, Calif. -- First graph, second sentence of release should read: The Sexy Hair[R] ads feature 2006 American Idol star Katharine McPhee in a celebrity campaign alongside the company's most popular products (sted The Sexy Hair[R] ads feature 2006 American Idol winner Katharine McPhee in a celebrity campaign alongside the company's most popular products).

The corrected release reads:

SALON CITY INKS SEXY HAIR AD CAMPAIGN FEATURING AMERICAN IDOL STAR KATHARINE MCPHEE

Salon City, Inc. (OTC:SLON), publisher of Salon City magazine, reported today that one of the fastest-growing beauty care companies in the world, Sexy Hair[R], has inked a Q3 and Q4 2007 advertising contract with the beauty/entertainment publication. The Sexy Hair[R] ads feature 2006 American Idol star Katharine McPhee in a celebrity campaign alongside the company's most popular products.

Says SCI President and CEO Steven Casciola, "Sexy's co-owner and CEO, Jim Morrison, is one of the beauty industry's most outstanding marketers, and Salon City, Inc. is delighted to work with this leading company in our magazine. Since he has taken up Sexy's reins, their sales and brand awareness have been skyrocketing. And we see eye-to-eye on the opportunities available in aligning bright young stars like Ms. McPhee to media and products like Salon City and Sexy Hair."

Mr. Casciola met with Mr. Morrison at the recent Cosmoprof North America 2007 trade show in Las Vegas, where Mr. Morrison committed to the ad campaign and praised Salon City for its new, more sophisticated look and enhanced exposure from its worldwide distribution. Noted Mr. Casciola, "It is advertising commitments such as the one from Sexy Hair[R] that will not only help make Salon City first in beauty entertainment, it will also make it a competitive choice in terms of prestige marketing."

ABOUT SALON CITY, INC.

Salon City, Inc. publishes Salon City magazine, where Life is Beautiful(SM). It is distributed nationally by Time Warner Retail, a Time Warner Company (NYSE:TWX), and internationally by Kable Distribution Services, an AmRep company (NYSE:AXR), in 30 countries around the world.

For more information about SCI, please visit www.saloncity.com or e-mail SLON's Investors Relations Department at info@saloncity.com. And listen in on the weekly conference call Thursdays at 4 PM ET (605-725-1900, Code: 010405).

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the Company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.