Corporate Transformation Generates $1.9 Billion of Proceeds

Under CD&R Ownership, Sally’s Revenue Increased 49%; EBITDA

Increased 101%; and Margins Expanded 430 Basis Points

Clayton, Dubilier & Rice (together with its affiliates, “CD&R”) today announced total proceeds of $1.9 billion from its 2006 investment in Sally Beauty Holdings, Inc. (NYSE:SBH) (“Sally”). Including a secondary offering completed today, CD&R affiliated funds sold all of their 86 million Sally common shares in four underwritten offerings in October 2011, February 2012, May 2012 and July 2012, and a share repurchase by Sally in May 2012, at an average price of $22.68.

Under CD&R’s ownership, revenues and EBITDA for Sally increased 49% and 101%, respectively, while margins expanded 430 basis points. Sally pursued a number of initiatives to drive earnings growth, including initiatives focused on improving sales productivity at the Company’s 4,400-store network, accelerating new store openings, augmenting profitability, growing internationally, and strategically making acquisitions.

In November 2006, CD&R invested $571 million to acquire approximately 47.5% of Sally Beauty Holdings, Inc., valued at $6.66 per share, from The Alberto-Culver Company in an innovative leveraged spin-off transaction. All remaining shares were spun off to then-current Alberto-Culver shareholders. Post-initial investment, CD&R became the largest single shareholder. CD&R Partners Richard J. Schnall and Kenneth A. Giuriceo served as Directors of Sally Beauty, and CD&R Operating Partner James G. Berges served as Chairman.

“Sally Beauty involved the complex carve-out of a non-core distribution business,” said Mr. Schnall. “The company’s strong performance during our ownership was underpinned by solid execution of key operational improvement initiatives, including increasing customer traffic, expanding gross margins and growing the business internationally.”

Mr. Giuriceo added: “We are very proud of our association with Sally Beauty and wish the very talented management team continued success as it continues to drive earnings through a combination of top line growth and efficiency initiatives.”