News from the Wire

Sally Beauty provides security investigation update

Friday, May 29, 2015 — 10:45:29 (EDT)

Denton, Texas, May 28, 2015 -- Sally Beauty Holdings, Inc. (the “Company”) updated its customers today on its ongoing investigation of the illegal intrusion into its payment card systems and efforts to provide support to customers who may have been affected by the incident.

As previously announced, the Company began an investigation into a possible security incident shortly after it received reports in late April of unusual activity involving payment cards used at some of its U.S. Sally Beauty stores. Since then, the Company has been working diligently with the help of law enforcement and leading third-party forensics experts to seek to ensure that its customers are protected.

The Company can now confirm criminals used malware believed to have been effectively deployed on some of its point-of-sale systems at varying times between March 6th and April 17th, 2015. Accordingly, the payment card information of customers that used cards at affected U.S. Sally Beauty stores during this time may have been put at risk. In addition:

• Sally Beauty does not collect or store PIN data. Therefore, the Company has no reason to believe, and has received no information to suggest, that debit card PINs may have been impacted
• The Company has eliminated this malware from all Sally Beauty point-of-sale systems

“We regret any inconvenience this incident may have caused our customers, and we want to reassure them that protecting our customers is our priority,” said Chris Brickman, President and CEO. “Because we cannot pinpoint exactly which cards might have been affected during our reported date range, we are offering credit monitoring services to any customer who used their payment card at a U.S. Sally Beauty store between March 6th and April 17th of 2015. Customers who wish to take advantage of these free identity protection services can learn more through our website, sallybeautyholdings.com , or by contacting us at 1-866-234-9442 or customerserviceinquiry@sallybeauty.com .”

About Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc. (NYSE: SBH) is an international specialty retailer and distributor of professional beauty supplies with revenues of $3.8 billion annually. Through the Sally Beauty Supply and Beauty Systems Group businesses, the Company sells and distributes through 4,900 stores, including approximately 200 franchised units, throughout the United States, the United Kingdom, Belgium, Chile, Colombia, Peru, France, the Netherlands, Canada, Puerto Rico, Mexico, Ireland, Spain and Germany. Sally Beauty Supply stores offer up to 10,000 products for hair, skin, and nails through professional lines such as Clairol, L’Oreal, Wella and Conair, as well as an extensive selection of proprietary merchandise. Beauty Systems Group stores, branded as CosmoProf or Armstrong McCall stores, along with its outside sales consultants, sell up to 10,000 professionally branded products including Paul Mitchell, Wella, Sebastian, Goldwell, Joico, and Aquage which are targeted exclusively for professional and salon use and resale to their customers. For more information about Sally Beauty Holdings, Inc., please visit sallybeautyholdings.com .

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Source: Company press release.