Physicians Formula Holdings, Inc. (NASDAQ: FACE) (“Physicians
Formula” or the “Company”)
today announced that Physicians Formula, Inc., the Company’s
wholly-owned subsidiary, has entered into an amendment to its existing
senior credit agreement with Union Bank of California, N.A. (the “Agreement”).
The amendment, entered into on July 8, 2008, lowers the applicable
interest rates on its term loan and revolving credit facilities by 25
basis points to LIBOR plus 1.75% and Base Rate plus 0.25%, with
retroactive effect to July 1, 2008.
“We are very pleased with the strong
relationship we enjoy with Union Bank of California, N.A. and believe
this credit agreement improvement during a tough credit environment is a
testament to the long-term opportunities ahead for our company,”
said Joseph Jaeger, Chief Financial Officer of Physicians Formula.
About Physicians Formula Holdings, Inc.
Physicians Formula is one of the fastest growing cosmetics companies
operating in the mass market prestige, or "masstige", market. Under its
Physicians Formula brand name, created in 1937, the Company develops,
markets and distributes innovative, premium-priced products for the mass
market channel. Physicians Formula differentiates itself by addressing
skin imperfections through a problem-solving approach, rather than
focusing on changing fashion trends. Currently, Physicians Formula
products are sold in approximately 27,000 stores throughout the U.S.
including stores operated by Wal-Mart, Target, CVS, Walgreens and Kroger.
Safe Harbor Statement
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. In some
cases, forward-looking statements can be identified by words such as
"anticipates," "estimates", "expects," "believes," "plans," "predicts,"
and similar terms. These forward-looking statements are based on current
expectations, estimates and projections about the Company's business and
its industry, based on management's beliefs and assumptions.
Forward-looking statements are not guarantees of future performance and
the Company's actual results may differ significantly from the results
discussed in the forward-looking statements. Factors that might cause
such differences include, but are not limited to: the demand for the
Company's products; the Company's ability to expand its product
offerings; the competitive environment in the Company's business; the
Company's operations; the effect of technological and regulatory
changes; the Company's cash needs and financial performance; changes in
general economic or market conditions; and other factors discussed in
the Company's filings with the Securities and Exchange Commission (the
"SEC"), including the Risk Factors contained in the Company's Annual
Report on Form 10-K for the year ended December 31, 2007, filed March
11, 2008, and available at www.physiciansformula.com
and the SEC's website at www.sec.gov.
You are urged to consider these factors carefully in evaluating the
forward-looking statements in this release and are cautioned not to
place undue reliance on such forward-looking statements, which are
qualified in their entirety by this cautionary statement. Unless
otherwise required by law, the Company expressly disclaims any
obligation to update publicly any forward-looking statements, whether as
result of new information, future events or otherwise.
(FACE/F)
ICR, Inc.
John Mills / Anne Rakunas, 310-954-1100
