The SAD Facts*

• 2007 Sales of diverted salon products sold through mass-market retailers was just under $1 Billion Dollars.

• During the second quarter of 2007, overall diversion sales grew over 7% over the prior quarter and 10.10% over the same quarter last year.

• The Top 3 diverted brands MATRIX, TIGI and Sebastian account for 51% of all diverted product sold in unauthorized outlets. Over half the volume of diverted products comes from only 3 manufacturers!

• Of the Top 5 brands: 4 (Matrix, American Crew, TIGI, Redken) diverted product sales grew over 30% from Q2 2006 to Q2 2007. Their average 12 month growth rate is 2 times faster than the overall diversion market growth for the same period.

• Diversion and consolidation are now the 2 major factors that are impacting the professional salon industry -causing year after year, of sub 3% growth. This is the lowest growth rate the industry has seen in decades.