NEW YORK, June 19, 2006 - 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 make an investment for 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 $575 million from a fund the firm manages for its equity stake. The transaction value, including $1.85 billion of debt arranged by Merrill Lynch & Co., is approximately $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 $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 $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 & Co. 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 $6 billion in 38 U.S. and European businesses with revenues exceeding $40 billion, representing an aggregate transaction value of over $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.