Cosmetic Group U.S.A. Inc. announces initial shipments of Zegarelli products; expects revenues of new line up to $10 million or more for initial 12 months.

LOS ANGELES--(BUSINESS WIRE)--May 31, 1995--Cosmetic Group U.S.A. Inc. (NASDAQ:CUSA,CUSAU;BSE:CGU) Wednesday announced that its Arnold Zegarelli Products Inc. subsidiary has commenced shipments of Zegarelli professional hair care products to Sally Beauty Co. Inc. (a subsidiary of Alberto-Culver Co., NYSE:ACV).

Alfred E. Booth Jr., chief executive officer of Cosmetic Group stated: "We are very excited about the reception to our new Zegarelli line. Our initial order from Sally's was in excess of $800,000 and we believe that we will generate up to $10 million or more in revenues for the first 12 months."

Booth added: "We are pleased with our exclusive arrangements with Sally Beauty Company which included them receiving an option to purchase 10% of our common stock at $2.25 per share. We believe that this demonstrates their confidence in the success of the Zegarelli product line and the opportunity to benefit from an equity investment in Cosmetic Group."

Cosmetic Group custom develops, formulates and manufactures a wide range of color cosmetics and other personal care products for customers that market products for sale under their own brand names and its own line of professional hair care products under the name "Zegarelli."

CONTACT: Cosmetic Group U.S.A. Inc., Sun Valley, Calif.

Jack Brehm, Chief Financial Officer, 818/767-2889

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Investor Relations

Donald Radcliffe, 212/605-0348