these offerings were used to pay down debt. Concurrently, we also were able to successfully modify our existing debt covenants. These transactions effectively re-equitized our balance sheet, improved our leverage ratios and significantly reduced the risk associated with our debt covenants.”

In connection with the modification of debt covenants and the pre-payment of debt, the Company will report in the first quarter of fiscal 2010, a pre-tax charge of approximately $18 million for make-whole premiums and other fees. In addition, the Company also expects to record lease termination and professional fees of approximately $3.4 million, on a pre-tax basis, related to the Company’s previously announced plan to close up to 80 underperforming locations in the United Kingdom.

Regis Corporation will host a conference call discussing fourth quarter results today, August 20, 2009 at 10 a.m., Central time. Interested parties are invited to listen by logging on to www.regiscorp.com or dialing 877-941-1848. A replay of the call will be available later that day. The replay phone number is 800-406-7325, access code 4119600#.

About Regis Corporation

Regis Corporation (NYSE:RGS) is the beauty industry’s global leader in beauty salons, hair restoration centers and cosmetology education. As of June 30, 2009, the Company owned, franchised or held ownership interests in over 12,900 worldwide locations. Regis’ corporate and franchised locations operate under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle, Cost Cutters, Cool Cuts 4 Kids and Hair Club for Men and Women. In addition, Regis maintains an ownership interest in Provalliance, which operates salons primarily in Europe, under the brands of Jean Louis David, Franck Provost and Saint Algue. Regis also maintains ownership interests in Empire Education Group in the U.S. and the MY Style concepts in Japan. System-wide, these and other concepts are located in the U.S. and in over 30 other countries in North America, South America, Europe, Africa and Asia. Regis also maintains a 49 percent ownership interest in Intelligent Nutrients, a business that provides a wide variety of certified organic products for health and beauty. For additional information about the company, including a reconciliation of non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com. To join Regis Corporation’s email alert list, click on this link:
http://www.b2i.us/irpass.asp?BzID=913&to=ea&Nav=1&S=0&L=1

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward—looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate” and “plan.” In addition, the following factors could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include competition within the personal hair care industry, which remains strong, both domestically and internationally; price sensitivity; changes in economic conditions, and in particular, continued weakness in the U.S. and global economies; changes in consumer tastes and fashion trends; the ability of the Company to implement its planned spending and cost reduction plan and to continue to maintain compliance with the financial covenants in its credit agreements; labor and benefit costs; legal claims; risk inherent to international development (including currency fluctuations); the continued ability of the Company and its franchisees to obtain suitable locations and financing for new salon development and to maintain satisfactory relationships with landlords and other licensors with respect to existing locations; governmental initiatives such as minimum wage rates, taxes and possible franchise legislation; the ability of the Company to successfully identify, acquire and integrate salons that support its growth objectives; the ability of the Company to maintain satisfactory relationships with suppliers; the ability of the Company to consummate the planned closure of salons and the related realization of the anticipated costs, benefits and time frame; or other factors not listed above. The ability of the Company to meet its expected revenue target is dependent on salon acquisitions, new salon construction and same-store sales increases, all of which are affected by many of the aforementioned risks. Additional information concerning potential factors that could affect future financial results is set forth in the Company’s Annual Report on Form 10-K for the year ended June 30, 2008. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new

REGIS CORPORATION (NYSE: RGS)
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
as of June 30, 2009 and 2008
(In thousands, except per share data)

	June 30,
	2009		2008
ASSETS
Current assets:
Cash and cash equivalents	$	42,538	$	127,627
Receivables, net	44,935		37,824
Inventories	158,570		212,468
Deferred income taxes	22,086		15,954
Income tax receivable	47,164		12,512
Other current assets	37,693		38,766
Total current assets	352,986		445,151

Property and equipment, net	391,538		481,851
Goodwill	764,422		870,993
Other intangibles, net	126,961		144,291
Investment in and loans to affiliates	211,400		247,102
Other assets	45,179		46,483

Total assets	$	1,892,486	$	2,235,871

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Long-term debt, current portion	$	55,454	$	230,224
Accounts payable	62,394		69,693
Accrued expenses	156,638		207,605
Total current liabilities	274,486		507,522

Long-term debt and capital lease obligations	578,853		534,523
Other noncurrent liabilities	236,287		217,640
Total liabilities	1,089,626		1,259,685

Shareholders’ equity:
Common stock, $0.05 par value; issued and outstanding 43,881,364 and 43,070,927 common shares at June 30, 2009 and 2008, respectively	2,194		2,153
Additional paid-in capital	151,394		143,265
Accumulated other comprehensive income	50,477		101,973
Retained earnings	598,795		728,795

Total shareholders’ equity	802,860		976,186

Total liabilities and shareholders’ equity	$	1,892,486	$	2,235,871

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REGIS CORPORATION (NYSE: RGS)

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

(In thousands, except per share data)

	(Unaudited) Three Months Ended June 30,						Year Ended June 30,
	2009			2008			2009			2008
Revenues:
Service	$	466,544		$	491,731		$	1,833,958		$	1,862,490
Product	128,438			137,703			523,968			551,286
Product sold to Premier (1)	19,641			—			32,237			—
Royalties and fees	10,123			11,104			39,624			67,615
	624,746			640,538			2,429,787			2,481,391
Operating expenses:
Cost of service	261,339			278,799			1,044,719			1,062,559
Cost of product	58,483			65,683			250,801			264,391
Cost of product sold to Premier (1)	19,641			—			32,237			—
Site operating expenses	44,570			43,853			190,456			184,769
General and administrative	71,774			77,422			291,661			321,563
Rent	87,946			95,374			347,792			361,476
Depreciation and amortization	33,484			29,798			115,655			113,293
Goodwill impairment	—			—			41,661			—
Lease termination costs	2,896			—			5,732			—
Total operating expenses	580,133			590,929			2,320,714			2,308,051

Operating income	44,613			49,609			109,073			173,340

Other income (expense):
Interest expense	(8,986		)	(10,784		)	(39,768		)	(44,279		)
Interest income and other, net	2,948			2,099			9,461			8,173
Income from continuing operations before income taxes and equity in (loss) income of affiliated companies	38,575			40,924			78,766			137,234
Income taxes	(12,942		)	(16,501		)	(41,950		)	(54,182		)
Equity in (loss) income of affiliated companies, net of income taxes	(29,988		)	159			(29,846		)	849
(Loss) income from continuing operations	$	(4,355	)	$	24,582		$	6,970		$	83,901

(Loss) income from discontinued operations, net of tax	(199		)	(1,501		)	(131,436		)	1,303

Net (loss) income	$	(4,554	)	$	23,081		$	(124,466	)	$	85,204

Net income per share:
Basic:
(Loss) income from continuing operations	$	(0.10	)	$	0.58		$	0.16		$	1.94
(Loss) income from discontinued operations, net of tax	(0.00		)	(0.04		)	(3.06		)	0.03
Net (loss) income per share, basic (2)	$	(0.11	)	$	0.54		$	(2.90	)	$	1.97
Diluted:
(Loss) income from continuing operations	$	(0.10	)	$	0.57		$	0.16		$	1.92
(Loss) income from discontinued operations, net of tax	(0.00		)	(0.03		)	(3.05		)	0.03
Net (loss) income per share, diluted (2)	$	(0.11	)	$	0.54		$	(2.89	)	$	1.95

Weighted average common and common equivalent shares outstanding:
Basic	43,000			42,709			42,897			43,157
Diluted	43,000			43,073			43,026			43,587

Cash dividends declared per common share	$	0.04		$	0.04		$	0.16		$	0.16

(1) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation will supply product to Premier at cost for a transition period of approximately six months following the date of the sale, with possible extension to not more than eleven months.

(2) Total is a recalculation; line items calculated individually may not sum to total.

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REGIS CORPORATION (NYSE: RGS)

Salon / School / Hair Restoration Center Counts and Revenues

SYSTEM-WIDE LOCATIONS:	June 30, 2009	June 30, 2008

Company-owned salons	7,981	8,582
Franchise salons	2,045	2,163
Company-owned hair restoration centers	62	57
Franchise hair restoration centers	33	35
Ownership interest locations	2,804	2,714
Total, system-wide	12,925	13,551

SALON LOCATION SUMMARY

NORTH AMERICAN SALONS:	June 30, 2009		June 30, 2008
REGIS SALONS
Open at beginning of period	1,078		1,099
Salons constructed	20		14
Acquired	23		4
Less relocations	(14	)	(11	)
Salon openings	29		7
Conversions	—		1
Salons closed	(36	)	(29	)
Total, Regis Salons	1,071		1,078

MASTERCUTS
Open at beginning of period	615		629
Salons constructed	14		7
Acquired	—		—
Less relocations	(10	)	(6	)
Salon openings	4		1
Conversions	—		—
Salons closed	(17	)	(15	)
Total, MasterCuts Salons	602		615

TRADE SECRET (4)
Company-owned salons:
Open at beginning of period	674		613
Salons constructed	10		16
Acquired	—		65
Franchise buybacks	—		5
Less relocations	(4	)	(11	)
Salon openings	6		75
Conversions	—		5
Salons sold	(655	)	—
Salons closed	(25	)	(19	)
Total company-owned salons	—		674

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	June 30, 2009		June 30, 2008

Franchise salons:
Open at beginning of period	106		19
Salons constructed	1		2
Acquired	—		93
Less relocations	—		(1	)
Salon openings	1		94
Franchise buybacks	—		(5	)
Divisional reclassification (4)	(43	)	—
Salons sold	(57	)	—
Salons closed	(7	)	(2	)
Total franchise salons	—		106

Total, Trade Secret Salons	—		780

SMARTSTYLE/COST CUTTERS IN WAL-MART
Company-owned salons:
Open at beginning of period	2,212		2,000
Salons constructed	71		207
Acquired	—		—
Franchise buybacks	24		12
Less relocations	(2	)	(3	)
Salon openings	93		216
Conversions	—		—
Salons closed	(5	)	(4	)
Total company-owned salons	2,300		2,212

Franchise salons:
Open at beginning of period	146		151
Salons constructed	1		7
Acquired	—		—
Less relocations	—		—
Salon openings	1		7
Conversions	—		—
Franchise buybacks	(24	)	(12	)
Salons closed	(1	)	—
Total franchise salons	122		146

Total, SmartStyle/Cost Cutters in Wal-Mart Salons	2,422		2,358

SUPERCUTS
Company-owned salons:
Open at beginning of period	1,132		1,094
Salons constructed	27		33
Acquired	—		3
Franchise buybacks	6		38
Less relocations	(2	)	(6	)
Salon openings	31		68
Conversions	(2	)	—
Salons closed	(47	)	(30	)
Total company-owned salons	1,114		1,132

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	June 30, 2009		June 30, 2008
Franchise salons:
Open at beginning of period	997		990
Salons constructed	51		71
Acquired (2)	—		—
Less relocations	(7	)	(6	)
Salon openings	44		65
Conversions	1		—
Franchise buybacks	(6	)	(38	)
Salons closed	(14	)	(20	)
Total franchise salons	1,022		997

Total, Supercuts Salons	2,136		2,129

PROMENADE
Company-owned salons:
Open at beginning of period	2,399		2,223
Salons constructed	36		33
Acquired	71		135
Franchise buybacks	53		95
Less relocations	(16	)	(8	)
Salon openings	144		255
Conversions	1		(5	)
Salons closed	(94	)	(74	)
Total company-owned salons	2,450		2,399

Franchise salons:
Open at beginning of period	914		1,008
Salons constructed	40		49
Acquired	—		—
Less relocations	(7	)	(5	)
Salon openings	33		44
Conversions	—		—
Divisional reclassification (4)	43		—
Franchise buybacks	(53	)	(95	)
Salons closed	(36	)	(43	)
Total franchise salons	901		914

Total, Promenade	3,351		3,313

INTERNATIONAL SALONS (1)
Company-owned salons:
Open at beginning of period	472		481
Salons constructed	4		15
Acquired	—		25
Franchise buybacks	—		—
Less relocations	(1	)	(1	)
Salon openings	3		39
Conversions	—		1
Affiliate joint ventures (3)	—		(40	)
Salons closed	(31	)	(9	)
Total company-owned salons	444		472

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	June 30, 2009		June 30, 2008
Franchise salons:
Open at beginning of period	—		1,574
Salons constructed	—		50
Acquired (2)	—		—
Less relocations	—		—
Salon openings	—		50
Conversions	—		3
Franchise buybacks	—		—
Affiliate joint ventures (3)	—		(1,587	)
Salons closed	—		(40	)
Total franchise salons	—		—

Total, International Salons	444		472

TOTAL SYSTEM-WIDE SALONS:
Company-owned salons:
Open at beginning of period	8,582		8,139
Salons constructed	182		325
Acquired	94		232
Franchise buybacks	83		150
Less relocations	(49	)	(46	)
Salon openings	310		661
Conversions	(1	)	2
Affiliate joint ventures (3)	—		(40	)
Salons sold	(655	)	—
Salons closed	(255	)	(180	)
Total company-owned salons	7,981		8,582

Franchise salons:
Open at beginning of period	2,163		3,742
Salons constructed	93		179
Acquired (2)	—		93
Less relocations	(14	)	(12	)
Salon openings	79		260
Conversions	1		3
Franchise buybacks	(83	)	(150	)
Affiliate joint ventures (3)	—		(1,587	)
Salons sold	(57	)	—
Salons closed	(58	)	(105	)
Total franchise salons	2,045		2,163

Total Salons	10,026		10,745

HAIR RESTORATION CENTERS:
Company-owned hair restoration centers:
Open at beginning of period	57		49
Salons constructed	8		3
Acquired	—		—
Franchise buybacks	2		6
Less relocations	(5	)	(1	)
Salon openings	5		8
Conversions	—		—
Sites closed	—		—
Total company-owned hair restoration centers	62		57

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	June 30, 2009		June 30, 2008
Franchise hair restoration centers:
Open at beginning of period	35		41
Salons constructed	—		2
Acquired	—		—
Less relocations	—		(2	)
Salon openings	—		—
Franchise buybacks	(2	)	(6	)
Sites closed	—		—
Total franchise hair restoration centers	33		35

Total Hair Restoration Centers	95		92

Ownership interest locations	2,804		2,714

Grand Total, System-wide	12,925		13,551

(1) Canadian and Puerto Rican salons are included in the Regis Salons, MasterCuts, Supercuts, and Promenade concepts and not included in the International salon totals.

(2) Represents primarily the acquisition of franchise networks.

(3) Represents European operating subsidiaries contributed to Franck Provost Salon Group.

(4) On February 16, 2009, the Company announced the completion of the sale of its Trade Secret retail product division to Premier Salons Beauty, Inc. As a result of this transaction, the Company reports the Trade Secret operations as discontinued operations for all periods presented. Forty-three franchise salons were not included in the sale of Trade Secret to Premier Salons Beauty, Inc. and are not reported as discontinued operations. These franchise salons are now included in Promenade.

Relocations represent a transfer of location by the same salon concept.

Conversions represent the transfer of one salon concept to another concept.

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REVENUES BY CONCEPT:

	For the Periods Ended June 30,
	Three Months						Twelve Months
(Dollars in thousands)	2009			2008			2009			2008
North American salons:
Regis	$	114,198		$	127,379		$	474,964		$	514,219
MasterCuts	41,587			43,752			170,338			175,974
SmartStyle	134,729			132,590			529,782			507,349
Supercuts (1)	80,537			79,964			310,913			305,104
Promenade (1)(6)	171,745			157,362			631,701			581,542
Other (2)	—			—			—			5,558
Total North American salons (5)	542,796			541,047			2,117,698			2,089,746

International salons (1)(3)	45,975			63,753			171,569			256,063
Hair restoration centers (1)	35,975			35,738			140,520			135,582
Consolidated revenues	$	624,746		$	640,538		$	2,429,787		$	2,481,391

Percent change from prior year	(2.5		)%	3.6		%	(2.1		)%	4.6		%

Same-store sales (decrease) increase (4)	(4.0		)%	1.7		%	(3.1		)%	1.5		%

(1) Includes aggregate franchise royalties and fees of $10.1 and $11.1 million for the three months ended June 30, 2009 and 2008, respectively, and $39.6 and $67.6 million for the twelve months ended June 30 2009 and 2008, respectively. North American salon franchise royalties and fees represented 93.8 and 91.2 percent of total franchise revenues in the three months ended June 30, 2009 and 2008, respectively, and 93.7 and 58.6 percent of total franchise revenues in the twelve months ended June 30, 2009 and 2008, respectively.

(2) On August 1, 2007, the Company contributed 51 of its accredited cosmetology schools to Empire Education Group, Inc. Accordingly, revenue growth was negatively impacted as a result of the deconsolidation. For the twelve months ended June 30, 2008, the results of operations for the month ended July 31, 2007 for the accredited cosmetology schools are reported in the North American salons segment. The Company retained ownership of its one North America and four United Kingdom Sassoon schools. Subsequent to August 1, 2007 results of operations for the Sassoon schools are included in the respective North American and international salon segments.

(3) On January 31, 2008, the Company deconsolidated the results of operations of its European franchise salon operations. Accordingly, revenue growth was negatively impacted as a result of the deconsolidation.

(4) Salon same-store sales increases or decreases are calculated on a daily basis as the total change in sales for company-owned salons which were open on a specific day of the week during the current period and the corresponding prior period. Quarterly and year-to-date salon same-store sales increases are the sum of the same-store sales increases computed on a daily basis. Relocated salons are included in same-store sales as they are considered to have been open in the prior period. International same-store sales are calculated in local currencies so that foreign currency fluctuations do not impact the calculation. Management believes that same-store sales, a component of organic growth, are useful in order to help determine the increase in salon revenues attributable to its organic growth (new salon construction and same-store sales growth) versus growth from acquisitions.

(5) Beginning with the period ended December 31, 2008, the operations of the Trade Secret concept within the North American reportable segment were accounted for as a discontinued operation. All comparable periods reflect Trade Secret as a discontinued operation.

(6) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation will supply product to Premier at cost for a transition period of approximately six months following the date of the sale, with possible extension to not more than eleven months. For the three and twelve months ended June 30, 2009, the Company generated revenue of $19.6 and $32.2 million, respectively, in product sold to Premier, which represented 3.1 and 1.3 percent of consolidated revenues, respectively.

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FINANCIAL INFORMATION BY SEGMENT:

Financial information concerning the Company’s salon, school and hair restoration businesses is shown in the following tables.

	For the Three Months Ended June 30, 2009(1)(3)
	Salons					Hair Restoration		Unallocated
(Dollars in thousands)	North America		International			Centers		Corporate			Consolidated
Revenues:
Service	$	416,503	$	33,584		$	16,457	$	—		$	466,544
Product	97,156		12,391			18,891		—			128,438
Product sold to Premier (2)	19,641		—			—		—			19,641
Royalties and fees	9,496		—			627		—			10,123
	542,796		45,975			35,975		—			624,746
Operating expenses:
Cost of service	234,908		17,424			9,007		—			261,339
Cost of product	47,560		5,526			5,397		—			58,483
Cost of product sold to Premier (2)	19,641		—			—		—			19,641
Site operating expenses	40,106		3,218			1,246		—			44,570
General and administrative	27,728		4,224			8,245		31,577			71,774
Rent	72,465		12,619			2,295		567			87,946
Depreciation and amortization	17,988		7,698			2,950		4,848			33,484
Goodwill impairment	—		—			—		—			—
Lease termination costs	2,154		742			—		—			2,896
Total operating expenses	462,550		51,451			29,140		36,992			580,133

Operating income (loss)	80,246		(5,476		)	6,835		(36,992		)	44,613

Other income (expense):
Interest expense	—		—			—		(8,986		)	(8,986		)
Interest income and other, net	—		—			—		2,948			2,948
Income (loss) from continuing operations before income taxes and equity in (loss) income of affiliated companies	$	80,246	$	(5,476	)	$	6,835	$	(43,030	)	$	38,575

(1) Beginning with the period ended December 31, 2008, the operations of the Trade Secret concept within the North American reportable segment were accounted for as a discontinued operation. All comparable periods reflect Trade Secret as a discontinued operation.

(2) Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis Corporation on February 16, 2009. The agreement included a provision that Regis Corporation will supply product to Premier at cost for a transition period of approximately six months following the date of the sale, with possible extension to not more than eleven months.

(3) On January 31, 2008, the Company merged its continental European franchise operations with the Franck Provost Salon Group.

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	For the Three Months Ended June 30, 2008(1)(2)
	Salons				Hair Restoration		Unallocated
(Dollars in thousands)	North America		International		Centers		Corporate			Consolidated
Revenues:
Service	$	428,518	$	46,954	$	16,259	$	—		$	491,731
Product	102,402		16,799		18,502		—			137,703
Royalties and fees	10,127		—		977		—			11,104
	541,047		63,753		35,738		—			640,538
Operating expenses:
Cost of service	245,195		24,700		8,904		—			278,799
Cost of product	52,132		8,302		5,249		—			65,683
Site operating expenses	38,605		3,884		1,364		—			43,853
General and administrative	30,922		6,000		8,407		32,093			77,422
Rent	76,195		16,667		2,005		507			95,374
Depreciation and amortization	18,646		3,698		2,613		4,841			29,798
Goodwill impairment	—		—		—		—			—
Lease termination costs	—		—		—		—			—
Total operating expenses	461,695		63,251		28,542		37,441			590,929

Operating income (loss)	79,352		502		7,196		(37,441		)	49,609

Other income (expense):
Interest expense	—		—		—		(10,784		)	(10,784		)
Interest income and other, net	—		—		—		2,099			2,099
Income (loss) from continuing operations before income taxes and equity in income of affiliated companies	$	79,352	$	502	$	7,196	$	(46,126	)	$	40,924

(2) On January 31, 2008, the Company merged its continental European franchise operations with the Franck Provost Salon Group.

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	For the Twelve Months Ended June 30, 2009(1)(3)
	Salons					Hair Restoration		Unallocated
(Dollars in thousands)	North America		International			Centers		Corporate			Consolidated
Revenues:
Service	$	1,646,239	$	122,664		$	65,055	$	—		$	1,833,958
Product	402,103		48,905			72,960		—			523,968
Product sold to Premier (2)	32,237		—			—		—			32,237
Royalties and fees	37,119		—			2,505		—			39,624
	2,117,698		171,569			140,520		—			2,429,787
Operating expenses:
Cost of service	944,782		64,326			35,611		—			1,044,719
Cost of product	203,283		25,855			21,663		—			250,801
Cost of product sold to Premier (2)	32,237		—			—		—			32,237
Site operating expenses	173,457		11,762			5,237		—			190,456
General and administrative	117,673		15,720			33,924		124,344			291,661
Rent	292,253		44,492			8,887		2,160			347,792
Depreciation and amortization	73,395		12,492			11,327		18,441			115,655
Goodwill impairment	—		41,661			—		—			41,661
Lease termination costs	4,990		742			—		—			5,732
Total operating expenses	1,842,070		217,050			116,649		144,945			2,320,714

Operating income (loss)	275,628		(45,481		)	23,871		(144,945		)	109,073

Other income (expense):
Interest expense	—		—			—		(39,768		)	(39,768		)
Interest income and other, net	—		—			—		9,461			9,461
Income (loss) from continuing operations before income taxes and equity in income(loss) of affiliated companies	$	275,628	$	(45,481	)	$	23,871	$	(175,252	)	$	78,766

(3) On January 31, 2008, the Company merged its continental European franchise operations with the Franck Provost Salon Group.

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	For the Twelve Months Ended June 30, 2008(1)(2)(3)
	Salons				Hair Restoration		Unallocated
(Dollars in thousands)	North America		International		Centers		Corporate			Consolidated
Revenues:
Service	$	1,635,238	$	165,379	$	61,873	$	—		$	1,862,490
Product	414,909		67,078		69,299		—			551,286
Royalties and fees	39,599		23,606		4,410		—			67,615
	2,089,746		256,063		135,582		—			2,481,391
Operating expenses:
Cost of service	939,242		89,617		33,700		—			1,062,559
Cost of product	208,705		35,702		19,984		—			264,391
Site operating expenses	165,185		14,410		5,174		—			184,769
General and administrative	121,345		37,143		30,941		132,134			321,563
Rent	295,659		56,571		7,313		1,933			361,476
Depreciation and amortization	73,755		10,969		10,289		18,280			113,293
Goodwill impairment	—		—		—		—			—
Lease termination costs	—		—		—		—			—
Total operating expenses	1,803,891		244,412		107,401		152,347			2,308,051

Operating income (loss)	285,855		11,651		28,181		(152,347		)	173,340

Other income (expense):
Interest expense	—		—		—		(44,279		)	(44,279		)
Interest income and other, net	—		—		—		8,173			8,173
Income (loss) from continuing operations before income taxes and equity in income of affiliated companies	$	285,855	$	11,651	$	28,181	$	(188,453	)	$	137,234

(1) On August 1, 2007, the Company contributed substantially all of its accredited cosmetology schools to Empire Education Group, Inc. For the year ended June 30, 2008 the results of operations for the month ended July 31, 2007 are reported in the North American salons segment. The Company retained ownership of its one North America and four United Kingdom Vidal Sassoon schools. Subsequent to August 1, 2007 results of operations for the Vidal Sassoon schools are included in the respective North American and international salon segments.

(2) Beginning with the period ended December 31, 2008, the operations of the Trade Secret concept within the North American reportable segment were accounted for as a discontinued operation. All comparable periods reflect Trade Secret as a discontinued operation.

(3) On January 31, 2008, the Company merged its continental European franchise operations with the Franck Provost Salon Group. For the year ended June 30, 2008, the results of operations for the seven months ended January 31, 2008 are reported in the International salon segment.

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REGIS CORPORATION (NYSE: RGS)

NON-GAAP FINANCIAL MEASURES (Unaudited)

The Company’s press release announcing results of operations for the three month period ended June 30, 2009 includes references to the following “non-GAAP financial measures” as defined by Regulation G of the Securities and Exchange Commission:

· The Company reported a fourth quarter loss of $0.11 per diluted share. However, these results included several non-operational items which, on a net overall basis, reduced the reported earnings per diluted share by $0.70.

· Absent non-operational items, the Company’s fourth quarter operational earnings were $0.59 per diluted share, up from the $0.55 per diluted share of operational earnings in the comparable period a year ago.

Non-GAAP Diluted Net Income per Share

The table below is provided to assist the reader’s understanding of the three month period ended June 30, 2009. The Company believes that adjusted net income per diluted share from operations, a non-GAAP financial measure, is a useful basis to compare the Company’s results against, because unusual items during the three month period ended June 30, 2009, impacted the Company’s reported net income (see “Adjustments” in table below). The presentation below reconciles as reported net income per diluted share (U.S. GAAP amounts) to adjusted net income per diluted share from operations. The adjusted net income per diluted share information should not be construed as an alternative to reported results under U.S. GAAP.

	Three Months Ended			Three Months Ended
	June 30, 2009			June 30, 2008
	(Dollars)			(Dollars)
Diluted net (loss) income per share, as reported (U.S. GAAP)	$	(0.106	)	$	0.536

Adjustments:
Provalliance impairment (1)	$	0.647		$	—
Lease termination costs (2)	0.045			—
Fixed asset write-offs (3)	0.045			0.019
Workers’ compensation (4)	(0.050		)	(0.045		)
Trade Secret discontinued operations (5)	0.005			0.035

Diluted net income per share from operations, adjusted	$	0.586		$	0.545

(1) The three month period ended June 30, 2009 included a $27.8 million pre-tax non-cash impairment charge related to the Company’s investment in Provalliance.

(2) The three month period ended June 30, 2009 included a $2.9 million pre-tax expense associated with lease termination costs as part of the July 2008 store closing plan of up to 160 underperforming company-owned salons and the June 2009 store closing plan of up to 80 underperforming company-owned salons in the United Kingdom.

(3) The three month periods ended June 30, 2009 and 2008 included $2.9 and $1.4 million, respectively, in pre-tax non-cash fixed asset write-offs associated with the planned store closures of up to 80 and 160 underperforming salons, respectively.

(4) Each of the three month periods ended June 30, 2009 and 2008 included a $3.2 million benefit related to an unplanned adjustment to prior years’ workers’ compensation and insurance claim reserves.

(5) The three month period ended June 30, 2009 included a $0.2 million pre-tax charge primarily related to a write-off of inventory. The three month period ended June 30, 2008 included a $3.2 million pre-tax non-cash fixed asset write-off associated with the planned Trade Secret store closures, a $0.2 million benefit related to Trade Secret’s portion of the unplanned adjustment to prior years’ workers’ compensation and insurance claim reserves, and a $1.5 million net loss from Trade Secret operations.

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CONTACT:		REGIS CORPORATION:
	Mark Fosland – Vice President, Finance
	952-806-1707
	Alex Forliti – Director, Finance-Investor Relations
	952-806-1767

	Year Ended June 30,
	2009			2008

Net cash provided by operating activities	$	188,064		$	222,383
Net cash used in investing activities	(115,511		)	(266,029		)
Net cash used in financing activities	(148,307		)	(11,004		)
Effect of exchange rate changes on cash and cash equivalents	(9,335		)	(2,508		)
Decrease in cash and cash equivalents	(85,089		)	(57,158		)
Cash and cash equivalents:
Beginning of year	127,627			184,785
End of year	$	42,538		$	127,627