1. 2009 Inventory Reduction Plan Second Half Tactics

2. Objectives Reduce discontinued proprietary inventory by 54% or $150,000 Reduce discontinued exclusive inventory that cannot be returned by 33% or $10,000 Reduce financial impact of carrying inventory Free up warehouse space Offer our customers the opportunity to increase profits Increase turns of slow moving products Based on report of 6 months or more on hand as of 12/11/08

3. Strategies Utilize discontinued items to provide increased “value” to our customers Price Reductions “Free” on-pack promotions Target specific accounts for items with large quantities on hand Quantity breaks for larger accounts to take all the inventory Telemarketing incentives for smaller accounts Build Company image through donations to appropriate organizations and industry events Review in fourth quarter to look at additional opportunities

4. Projections and Value as of 12/31

5. Updated Inventory as of 8/31/09 Proprietary and Exclusive Discontinued Items

6. Tactic Overview Focus opportunities: Trade Shows Hot Sheet Brochure Full Service Accounts Sales Support Telemarketing Incentives International e-commerce Promotions Will-call Customers Employee Promotions Public Relations/Donations

7. Trade Shows Les Nouvelles Esthetiques September 12–14, 2009 – Long Beach, CA Professionals Only Sold Hive of Beauty product at 10% over cost The Salon & Spa Buyers Bazaar November 8–9, 2009 – Pomona, CA “Cash & carry” show open to the public Opportunity to move “retail” items Sell appropriate products at 10% over cost

8. Focus Products for Spa Buyers Bazaar Sell below-listed products at 10% over cost. Additional products may be added to list. Pricing being finalized.

9. Hot Sheet Brochure Hot Sheets offer the widest customer exposure to discontinued and slow moving items Select highest volume items for inclusion Include in brand section to highlight quality Include in July/August; September/October; November/December

10. Focus List – July/August 20 page book – packed with July catalog

11. Focus List – September/October MEHAZ Discount MC010 MEH CUTICLE NIPPER SMALL HANDS 1/4 JAW 25% MC011 MEH CUTICLE NIPPER SMALL HANDS 1/2 JAW 25% MC0702RD MEH COMFORT GRIP NIPPER SS 700 1/2 RED 30% MC0704RD MEH COMFORT GRIP NIPPER SS 700 1/4 RED 30% MC2222 MEH SS CS LAP CUTICLE CN222 1/2" 50% MC2224 MEH SS CS LAP CUTICLE CN222 1/4" 50% MC0445 MEH SS LAP ACRYLIC NIP AN445 CHR 4.25" 45% MC0120 MEH SS PUSHER/CLEANER CP120 6" 15% 9MC0125 CP 125 SS 4.5 PTERYGIUM RMVR 50% 9MC0121 PE 121 SS 5" 2 SIDE INGROWN 15% MC0095BK MEH SS SLANT DEPIL TWZR DT095 BLK 4" 40% MC0093 MEH BENT TWEEZER STAINLESS SLANTED 40% MC0043 MEH TWEEZER 043 SS STRAIGHT TIP 40% MC0130HB MEH RUBIS 1K102MH HEART BEAT TWEEZER SS 10% FCF-HHD FLO FILE CATTY HEART HEALTH 10% Smaller book mailed on its own resulted in fewer items being featured

12. Focus List – November/December

13. Full Service Accounts Can take advantage of larger quantities Provide updated target list to sales department with deeper discounts than published for quantity orders on 10/1/09

14. Focus List Price at 10% over cost for quantity purchases. Detailed items dependent upon inventory available as of 9/30/09.

15. Focus List - Mehaz & Signature Detail Discount amounts (10% over cost) and quantity breaks to be determined by inventory levels as of 9/30/09.

16. Sales Support Activities Customer Service Week Program running 10/12-10/16 Provide target list of items to customer service reps for upsell Prizes to be awarded for various sales levels Most items sold Highest dollars sold Utilize discontinued items to support in- store events as requested New store openings Anniversary celebrations

17. Focus List Discount amounts (at 10% over cost) and quantity breaks to be determined by inventory levels as of 9/30/09.

18. Focus List –Signature Implements Discount amounts (at 10% over cost) and quantity breaks to be determined by inventory levels as of 9/30/09.

19. Small Accounts (under $10,000 annually) Communicate selected special values and promotional opportunities to Small Accounts via flyers Target date – Available November 1, 2009 for Holiday selling Provide to telemarketing, customer service and sales reps for presentation to accounts

20. Focus List Discount amounts (at 10% over cost) and quantity breaks to be determined by inventory levels as of 9/30/09.

21. Second Half Telemarketing Incentive Hit ‘N Run Events Short term (1 week) promotions to encourage focus and excitement on specific items Minimum sales goal must be met to win Weeks of 10/5; 10/26; 11/16; 12/7

22. Focus List

23. Second Half Telemarketing Incentive Shear Madness Telemarketers focus on discontinued shears August 17 - 31, 2009 $5.00 Spiff on specific kit October 19 – 31, 2009 Build your own spiff Provide price for sale Telemarketers get to keep the difference

24. Focus List Discounted price (at 10% over cost) and quantity breaks to be determined by inventory levels as of 9/30/09.

25. International Continue to offer close out items to appropriate customers Products and prices tailored to specific customers

26. e-commerce promotions Discontinued items marked with “While Supplies Last” icon discounted price points Effective with activation of B2B site in August 2009

27. Will-call Customers Continue to utilize will call area for displaying close out items Focus on low inventory products to move out entire amount – items dependent on inventory levels Offer at 10% over cost

28. Second Half Employee Promotions Quarterly $1.00 Sale Select items at $1.00 each September 30, 2009 and December 11, 2009

29. Employee Promotions Sale Table in Warehouse Expand offerings to customers and employees at low, low prices Combine products in “kits” to offer greater value Monthly email and flyer on bulletin boards through end of year reminding employees to check what’s new on the sale table 10/14/09 11/13/09 12/15/09

30. Public Relations Product Giveaway Programs Support charitable organizations Charity Event Gift Bags Delancy Street and other non-profit organizations/shelters Support industry competitions and events July Nails Magazine Freebie of the Month AACS Show Visitors Gift Silent Auction Gift Basket

31. Tactic Calendar