Physicians Formula Holdings, Inc. (NASDAQ: FACE) (“Physicians
Formula” or the “Company”)
today announced that in light of the unanticipated change in the volume
limitation under Rule 10b-18 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), the Company has terminated its Rule 10b5-1
trading plan dated September 12, 2008. Physicians Formula gave notice of
termination under the Plan to the broker on October 9, 2008, which
notice will take effect on October 10, 2008.
As of the close of trading on October 9, 2008, approximately $6.5
million remained authorized for repurchases under the Company’s
previously announced stock repurchase program for up to $10.0 million of
the Company’s common stock (The “Repurchase
Program”). Under the Repurchase Program, the
Company may continue to repurchase shares of its common stock in the
open market or in privately negotiated transactions, in compliance with
the safe harbor provisions of Rule 10b-18 under the Exchange Act. The
window for such discretionary repurchases is currently closed and will
reopen two full trading days after Physicians Formula announces its
third fiscal quarter results. The Repurchase Program does not obligate
the Company to repurchase any dollar amount or number of shares of its
common stock, and the program may be extended, modified, suspended or
discontinued at any time.
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, Rite Aid, 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 and ability to achieve cost savings; 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 filings with the SEC, 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)
Integrated Corporate Relations, Inc.
John Mills / Anne Rakunas
310-954-1100
