Sally Beauty Holdings, Inc. (“Sally”) through its affiliates is the world’s largest distributor of professional beauty supplies. Sally provides the channels that allow manufacturers of beauty supplies to reach customers, both professional and non-professional. Sally Beauty Company, Inc. began as a one-store operation in New Orleans, Louisiana in 1964. The Company expanded slowly until the 1980s, when it began to grow rapidly through acquisition and new store openings. In 1982, Sally moved its corporate headquarters to Denton, Texas following the acquisition of a Denton-based chain. In 1985, Sally acquired a major full-service (professional only) beauty supply distributor servicing the Midwestern United States. The growth of the full-service business led to the formation of the company now known as Beauty Systems Group LLC, focusing on distribution solely to the professional trade. New store openings and acquisitions continue to guide Sally’s expansion. In 1987, Sally became an international company with the acquisition of an affiliate in the United Kingdom. Today, Sally and its affiliates operate over 4500 stores throughout the United States and the world. Our international operations now extend to the United Kingdom, continental Europe, Puerto Rico, Canada, Chile, Peru, Colombia, Mexico. Both Sally Beauty Supply and Beauty Systems Group have successful and growing online (e-commerce) businesses. In 2006, Sally became a publicly held company with its shares traded on the New York Stock Exchange. Sally and its affiliates have long been industry leaders. Expertise in professional product merchandising, distribution and education provides the basis for a commanding presence in the global market. This, combined with strong domestic growth and international development, positions the companies for anticipated continuing success in future years. All subsidiaries and affiliates share Sally’s customer-driven operating philosophy and vision.

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