Regis Sells Ownership Interest in Hair Club for Men and Women

Regis Corporation (NYSE:RGS), a leader in the haircare industry, today announced the completion of the sale of its ownership interest in Hair Club for Men and Women for $163.5 million.

"The completion of the Hair Club transaction along with the previously completed sale of Regis' stake in Provalliance represents significant progress Regis has made towards simplifying our business. We continue to focus on improving the guest experience in our salons and enhancing shareholder value," said Dan Hanrahan, President and Chief Executive Officer. On July 16, 2012, the Company announced the signing of a definitive agreement to sell its ownership interest in Hair Club for Men and Women to Aderans Co., Ltd.

The pro forma effect of the sale on the December 31, 2012 balance sheet as reported in our Form 10-Q for the quarter ended December 31, 2012 would be to increase cash for $163.5 million, excluding closing adjustments and transaction fees, remove current and long-term assets held for sale of $16.8 and $180.0 million, respectively, and current and long-term liabilities held for sale of $16.5 and $28.8 million, respectively, resulting in an after-tax gain of $12 million. The actual after-tax gain to be recognized by the Company during the three months ended June 30, 2013 will be adjusted by the closing adjustments and transaction fees.

Regis Corporation (NYSE:RGS) is the beauty industry's global leader in beauty salons and cosmetology education. As of December 31, 2012, the Company owned, franchised or held ownership interests in approximately 10,000 worldwide locations. Regis' corporate and franchised locations operate under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle, Cost Cutters and Cool Cuts 4 Kids. Regis maintains ownership interests in Empire Education Group in the U.S. and the MY Style concepts in Japan. For additional information about the company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com.