Clayton, Dubilier & Rice Signs Definitive Agreement to Acquire 47.5% Interest In Alberto-Culver's Professional Beauty Supply Distribution Business

New York (ots/PRNewswire) -

- Transaction Valued At Approximately US$3 Billion

Clayton, Dubilier & Rice, Inc. (CD&R), a leading global private
equity firm, and Alberto-Culver Company (NYSE: ACV) announced today
that they have reached a definitive agreement for a CD&R-managed fund
to acquire a 47.5% equity interest in Sally Beauty Company (Sally),
Alberto-Culver's beauty supplies distribution business and the
world's number one marketer of professional beauty supplies. CD&R,
which has made several investments in distribution and branded
businesses operating in multi-location formats, will invest US$575
million from a fund the firm manages for its equity stake. The
transaction value, including US$1.85 billion of debt arranged by
Merrill Lynch and Company, is approximately US$3.0 billion.

Sally includes two segments: (1) Sally Beauty Supply (Sally), a
domestic and international chain of cash-and-carry stores offering
professional beauty supplies to both salon professionals and retail
consumers; and (2) Beauty Systems Group (BSG), a full service beauty
supply distributor offering professional brands directly to salons
through its own sales force and professional-only stores in exclusive
geographical territories in North America.

The transaction will include a special cash dividend of US$25 per
share for each Alberto-Culver shareholder and the tax free spin-off
of the company's consumer business to shareholders. Alberto-Culver's
consumer business distributes and markets leading personal care
products. Alberto-Culver shareholders also will retain a 52.5% equity
interest in Sally, which will become a new public company listed on
the New York Stock Exchange. Sally will continue to be headquartered
in Denton, Texas.

With approximately 3,290 stores and 1,200 professional sales
consultants, Sally is the largest marketer of professional beauty
care products in the world. In the twelve months ended March 31,
2006, the business generated revenue of approximately US$2.3 billion.

"The beauty supplies market has an impressive history of stable
growth and a favorable outlook," commented Donald J. Gogel, President
and Chief Executive Officer of CD&R. "Sally has demonstrated a
consistently attractive growth track record and we believe the
prospects for the company as a free-standing enterprise are
outstanding."

"Sally has many compelling strengths, including a talented
management team and an extensive store footprint throughout North
America," said Richard J. Schnall, the CD&R financial partner leading
the transaction. "The company's geographic reach, skilled sales force
and broad product offering are highly valued both by beauty
professionals and retail consumers."

Gary Winterhalter will continue as President of Sally and will
assume the Chief Executive Officer role upon completion of the
transaction. CD&R will appoint six of the 12 directors of the Sally
board, including the Chairman.

The transaction is expected to be completed in the fourth quarter
of 2006 and is subject to the approval of Alberto-Culver
shareholders, as well as regulatory approvals.

Merrill Lynch and Company is acting as CD&R's financial advisor
and Debevoise & Plimpton LLP serves as legal counsel.

About Clayton, Dubilier & Rice

With more than a quarter century of history, Clayton, Dubilier &
Rice is one of the most experienced and successful private-equity
investment firms in the world. Since 1978, CD&R has invested over
US$6 billion in 38 U.S. and European businesses with revenues
exceeding US$40 billion, representing an aggregate transaction value
of over US$40 billion. CD&R is recognized as the private-equity firm
that pioneered the strategy of improving the operating performance of
portfolio businesses as the foundation for generating consistent and
superior financial returns. The firm focuses on large corporate
divestitures, including several investments in distribution and
branded businesses operating in multi-location formats. CD&R led a
group of investors in the purchase of The Hertz Corporation from Ford
Motor Company in December 2005. The firm's investments have included
Kinko's, which was sold to FedEx in February 2004, and Lexmark
International, which CD&R acquired from IBM Corporation and
subsequently brought public. CD&R is based in New York and London.
For more information about CD&R, visit http://www.cdr-inc.com.

About Sally Beauty Company

Alberto-Culver's beauty supplies distribution business is the
world's number one marketer of professional beauty care products
through its chain of domestic and international Sally stores. The
Sally store footprint includes the U.S., Canada, Mexico, Puerto Rico,
the U.K., Ireland, Germany and Japan. Beauty Systems Group is a
network of stores and professional sales consultants selling
exclusive professional beauty care brands such as Matrix, Redken,
Paul Mitchell, Wella, L'Oreal, Graham Webb and Sebastian exclusively
to salon owners, salon professionals and franchisees. More
information can be found at http://www.alberto.com.

Web site: http://www.alberto.com
http://www.cdr-inc.com

ots Originaltext: Clayton, Dubilier & Rice
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Thomas C. Franco for Clayton, Dubilier & Rice, Inc., +1-212-407-5225;
Dan Jacobs or Bob Cavosi, both for Sally Beauty Company,
+1-212-232-2222