WEST HOLLYWOOD, Calif., Aug. 1, 2006 (PRIMEZONE) -- Salon City, Inc. (Pink Sheets:SLON) has retained the Pittsburgh, PA investment firm of Fountain Capital Fund, Inc. in connection with its initial listing of common stock on the Pink Sheets. Fountain Capital has agreed to, among other things, (1) assist Salon City with public relations and introductions to third-party public relations service providers; (2) assist with investor relations functions and responsibilities; (3) assist with capital acquisition strategies; (4) assist with business development planning; and (5) make a firm commitment promise to purchase $20.0 million worth of sponsorship advertising and licensing in Salon City's media products and projects over a two year period of time, with a minimum purchase of $500,000 during the first eight weeks and $1.0 million per month thereafter, which purchases shall consist, by way of example, of sponsorship of a television show or a live event, or other advertising buys in which Salon City has complete control over the advertising content.
As compensation for these services, a significant shareholder has agreed to transfer 8.0 million free trading shares of Salon City to Fountain Capital, against reimbursement by Salon City in an amount of shares of restricted common stock equal to 150% of the free trading shares delivered to Fountain Capital. Steven G. Casciola, President and CEO of Salon City, stated that "the participation of our shareholder enabled us to hire Fountain Capital to undertake all of these projects that should increase shareholder values." Garland E. Harris, President of Fountain Capital, said that "this is a tremendous opportunity to work with a great company to build shareholder value and educate the market about the many business opportunities at Salon City."
For example, Harris noted that "Salon City Star magazine is already the fastest growing and most influential beauty entertainment magazine in the industry, with current readership estimated at a quarter million readers per issue. Salon City, Inc. already owns a broad base of media franchises and intellectual properties, including magazines, tradeshow events and seminars, as well as an existing distribution network. It also includes the organization of a cooperative alliance under the "Salon City" brand that attracts top-tiered professionals, salons and distributors. We strongly believe in what Casciola is doing with his company."
Casciola noted that "Salon City has enjoyed the same level of respect in its industry relationships, but is even better positioned because the company is able to brand the entire industry's people, products and programs to the consumer."
For more information on the Company, please visit the Company's website at http://www.saloncity.com.
To be added to Salon City's investor e-mail list, please send an e-mail to our Investors Relations Department at info@saloncity.com. Salon City, Inc. provides content, media and product distribution services for the worldwide beauty industry, including professional and consumer beauty salons as well as spas, most notably through our Salon City Star Magazine. Salon City also has a network for distributing beauty products to these salons and spas.
The Salon City, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2772
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.