Modern Beauty Salon Announces Operational Update Plans to Add Six Service Centres by the End of FY2006

Modern Beauty Salon Announces Operational Update Plans to Add Six Service Centres by the End of FY2006

April 24, 2006

Continued Service Enhancements to Expand Market Share in Hong Kong

    HONG KONG, April 24 /Xinhua-PRNewswire/ -- Modern
Beauty Salon Holdings Limited ("Modern Beauty" or
"the Company"; HKSE stock code: 919), one of the
leading providers of comprehensive beauty and healthcare
services in Hong Kong, announced official opening of two
new beauty salons in Tuen Mun and Tai Wai, adding the total
number of service centres operated by the Company to 17.  

    Network Expansion

    Modern Beauty also plans to invest approximately HK$30
million to HK$40 million in opening new service centres and
renovating existing branches in FY2006-07 (i.e. April 1,
2006 to March 31, 2007).  The Company plans to open six new
service centres in FY2006-07 which is expected to have the
capacity of increasing the sales from the provision of
additional beauty and healthcare services by 15%. 
Including the service centres in Tuen Mun and Tai Wai,
Modern Beauty will operate a total of 23 service centres by
the end of this financial year. 

    In response to customers' requests for quality beauty
and healthcare services, the Company is proactively looking
to expand its network and evaluating its service quality and
operational systems with the aim of providing the best
customer services to maintain its leading position in Hong
Kong's beauty and healthcare market. The major developments
of the Company include:

    Operational Update

    Modern Beauty reported good progress in its operations
and business development.  The Company recorded
satisfactory growth in its customer base, from 149,000
customers as at January 17, 2006 to 151,000 customers as at
February 17, 2006.  In response to customers' requests for
quality beauty and healthcare services, the Company is
proactively looking to expand its network and evaluating
its service quality and operational systems with the aim of
providing the best customer services to maintain its leading
position in Hong Kong's beauty and healthcare market. 

    Service Enhancement Program

    As of July 31, 2005, the Company's service centres
recorded an average idle capacity of approximately 25%.  To
further enhance operational efficiency and customer service,
the Company has launched a "service enhancement
program" which includes the following initiatives:-

     -- Extending the validity period for prepaid packages:
Effective 
        immediately, the validity period of new prepaid
packages to be sold 
        is extended from two years to three years so as to
provide additional 
        flexibility to customers to enjoy these services. 

     -- Online booking: Modern Beauty plans to launch a new
online booking 
        system.  Apart from making their bookings via
telephone, fax, e-mail 
        and in person, customers can now book services
through the Modern   
        Beauty website directly.  The new online booking
system is expected 
        to come online in June this year.

     -- Enhanced customer service: To more effectively
handle customer 
        enquiries, Modern Beauty will establish a special
IVRS customer 
        service hotline ((852) 2688-0919) and has a
dedicated customer 
        service team to promptly process all enquiries. 

    Notes to the Editor:

    About Modern Beauty Salon Holdings Limited  (HKSE stock
code: 919)
    Established in 1991, Modern Beauty Salon Holdings
Limited provides comprehensive beauty and healthcare
services which can be broadly categorized into beauty and
facial services, spa and massage services, slimming
services and fitness services under tradenames of
"Modern Beauty Salon", "be Sanctuary
Spa", "Slim Express", "Modern
Fitness", "be homme" and "Moment of
Serenity".

    Modern Beauty now operates 17 service centres in Hong
Kong and has approximately 151,000 customers.  The Company
was listed on the main board of the Hong Kong Stock
Exchange in February 2006.

    For further information, please contact:

    Modern Beauty Salon Holdings Limited
     Investor Relations Manager
     Priscilla Ip
     Tel:   [phone]
     Fax:   [phone]
     Email: [e-mail]

    Hill & Knowlton Asia Ltd
     Gary Li 				
     Tel:   [phone] or [phone]
     Email: [e-mail]

     Angie Tang				
     Tel:   [phone] or [phone]
     Email: [e-mail]

SOURCE  Modern Beauty Salon Holdings Limited