2 December 2004
Regis Corporation to Acquire Hair Club(R) for Men and Women

MINNEAPOLIS, Dec 2, 2004 /PRNewswire-FirstCall via COMTEX/ -- Regis Corporation (NYSE: RGS), the global leader in the $150 billion hair care industry, today announced that it has completed the acquisition of Hair Club for Men and Women for $210 million in cash. The transaction closed December 1, 2004. Previously, on November 15, 2004, the Company announced the signing of a definitive purchase agreement for Hair Club for Men and Women.

Acquisition Expected to Add $0.06 Per Diluted Share to Fiscal 2006 Net Income

MINNEAPOLIS, Nov. 15 /PRNewswire-FirstCall/ -- Regis Corporation (NYSE: RGS), the global leader in the $150 billion hair care industry, today announced that it has signed a definitive purchase agreement to acquire Hair Club for Men and Women, the leader in hair loss solutions. The $210 million transaction is scheduled to close in December 2004 and will be financed with debt. Hair Club for Men and Women will operate as a wholly-owned subsidiary of Regis Corporation, and will retain the existing successful management team to operate the business.

"We are pleased to announce the acquisition of Hair Club for Men and Women, the market leader in the hair loss industry." commented Paul D. Finkelstein, chairman and chief executive officer of Regis Corporation. "Similar to our salon operations, this business model generates strong, predictable cash flow. We anticipate Hair Club will create significant shareholder value by continuing to deliver double-digit revenue and earnings growth for many years to come."

Mr. Finkelstein continued, "This is a very exciting time for Regis Corporation. Eight years ago, we made a similar announcement when we acquired Supercuts. That acquisition provided us with a platform to expand our salon model to achieve the consistent growth we have realized over the last several years. Today's announcement provides us with a similar platform in the hair loss industry."

The acquisition is expected to add approximately $50 million in revenue and to be modestly accretive to earnings during the second half of the current fiscal year. In fiscal year 2006, Hair Club is projected to add $115 million in revenue and $2.8 million in net income, or $0.06 per diluted share. The projected 2006 earnings accretion includes $8 million to $10 million, or $0.11 to $0.14 per share, of expense related to the amortization of intangible assets.

The acquisition will not impact the previously communicated growth expectations of the Company's salon and beauty school businesses. Including this acquisition, the Company expects to end fiscal year 2005 with total debt of approximately $580 million and a debt to capitalization ratio in the low 40 percent range.

Regis Corporation will discuss this acquisition during a conference call to be broadcast live on the internet, Monday, November 15, 2004 at 9:00 a.m. Eastern Time. Interested parties are invited to listen by logging onto http://www.regiscorp.com . An archive of the conference call will be available at this website shortly after the conclusion of the live broadcast.

Banc of America Securities is acting as exclusive financial advisor to Regis Corporation in connection with this transaction.

Hair Club is the only company that offers a comprehensive menu of hair loss solutions ranging from Extreme Hair Therapy(TM) to the ground breaking non-surgical Bio-Matrix(R) Process and the latest advancements in hair transplantation. It is Hair Club's philosophy to provide the most objective analysis and recommendations for what is best for each individual's situation. Depending on age, level of hair loss and client expectations, Hair Club will personally customize a solution that works.

Regis Corporation, a Fortune 1000 company, is the largest owner, operator and franchisor of hair and retail product salons and beauty schools in the world. As of September 30, 2004, the Company owned or franchised 10,262 salons and beauty schools operating under concepts such as Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade Secret, SmartStyle and Cost Cutters. These salons are located in the United States and in ten other countries throughout North America and Europe.

Regis Corporation is headquartered in Minneapolis, Minnesota. The Company's common stock is traded on the New York Stock Exchange under the symbol RGS. For additional information about the Company, including a reconciliation of non-GAAP financial information and current financial outlook, please visit the Investor Information section of the corporate website at http://www.regiscorp.com.