BE YOUR OWN BOSS AND PART OF THE PHENOMENON THAT EMPLOYS MORE THAN EIGHT MILLION PEOPLE

With an estimated one of every 12 retail businesses in the U.S. part of a franchised network, it is estimated that Franchising impacts up to one trillion dollars in the U.S. economy and employs over eight million people. The Franchise phenomenon isn't just in the United States; it covers more than 70 industries and 100 countries around the world.

It seems that many people see the value of franchising - being one's own boss with a built-in system of support. The people flocking to franchising vary from teachers to executives who have been recently laid off and are looking to make a new start in a new industry. The Financial Times recently acknowledged that franchising conditions are very good in the United States, and with the Federal government working to buoy the consumer, the U.S. economy is expected to grow by two to three percent.

Be Your Own Boss - With a Built-In Support System.

"I'm convinced there is no better business format available than franchising for those who want to be in business for themselves, but not by themselves," said International franchise Association President Don De Bolt. "In today's challenging economic environment, starting out with a proven system, lots of support and training, plus knowing you can turn to fellow franchisees for guidance is a much greater choice than trying to start a business from square one. Plus you get instant brand recognition, high visibility and the comfort of knowing that others have succeeded using the same model you're buying."

Nearly eight times larger than its nearest competitor, Minnesota-based Regis Corporation (NYSE:RGS), the largest owner, operator, and franchisor of hair and retail product salons and beauty schools in the world, offers a successful, proven system for people investigating franchise opportunities. On behalf of its franchisees, the multi-national, $3 billion company has the power to negotiate critical items including real estate, products and marketing - all vital in an industry that has to offer cutting edge style, design and convenience. To ensure the continued success of franchisees, Regis Corporation (Regis Corp.) also provides ongoing state-of-the-art stylist education, operations and mentoring programs to help owners navigate the roads of business.

The Move to Franchising.

Regis Corp. is expanding four of its franchise concepts in the United States. Supercuts, one of the franchise concepts geared to men, pioneered the concept of the affordable haircut 30 years ago. Today, nearly 2,000 Supercuts salons perform three million haircuts every month in 1,000 cities across North America.

Roy Phelan of Shaker Heights, Ohio (a suburb of Cleveland), was a partner in a business consulting firm when he made the move to franchising and chose Supercuts. "I wanted to be my own boss and create something new," said Phelan. "Franchising gave me the lowest risk way to accomplish both my goals."

Phelan turned to Regis Corp. with an interest in Supercuts. "Supercuts provides an established brand, a formula for success and a very strong network of help," he continued. "The support from the Regis network has been tremendous. They have helped me find locations, develop my financial model and provide general consultation. Real estate has been very active so far, and my management trainer has been most helpful. I have also consulted with a number of Supercuts franchisees, and their assistance has been crucial."

Phelan opened his first Supercuts store in the fall of 2003 and another two by the end of that year. He plans to open 24 Supercuts stores over the next eight years.

Ensure the Parent Company is Strong.

In franchising, scout out a "recession-proof" concept and company for the best chance at a good return on investment. The hair care industry is considered a growing market with lots of opportunity; everyone needs a haircut no matter what the economy. And while numbers often look good, analysts - and existing franchisees - recommend that anyone looking for a franchise investment opportunity study the parent company's resources and efficiencies.

"Regis Corp. has a reliable business model as customers return for haircuts during both good and bad times," commented Jeff Stein, senior research analyst for specialty retailing at McDonald Investments in Cleveland, Ohio. "And, Regis is unique because they have segmented the marketplace by developing concepts to serve all niches. The higher end is covered with Vidal Sassoon and Jean Louis David, while value concepts like Supercuts, Cost Cutters and SmartStyle continue to expand."

Where to Find Support and Resources.

A franchisee purchases not only the use of the trademarked brand of a franchise, but also resources such as marketing, training and real estate support. Yet, many find the community of people inside the franchise one of the greatest assets of their investment.

"When I opened our Beloit, Wisconsin store, other franchisees in the Regis system helped tremendously," said Kyle Hovey, owner of two Cost Cutters stores in eastern Wisconsin.

Another Regis Corp. concept, Cost Cutters salons are dedicated to providing families with convenient hair care services by professional stylists in nearly 900 locations across the United States. Hovey continued, "I've relied on franchise networking more than anything - at least once a week I talk with a colleague from another Cost Cutters." While franchisees rely heavily on each other for advice, ideas and solutions, parent companies must offer resources. Regis Corp. offers a structure that include an annual $16 million commitment to education and stylist training, which ensures customers are getting the latest in hair care and styles. The franchisees also have access to award-winning educational videos and DVDs and nationwide seminars.

Most franchisees will say it's all about location, location, location. In this fast-moving real estate market, the assets of a big company are helpful - especially when you may have only two or three stores under your belt. A national-credit tenant, Regis Corp.'s real estate department supports franchisees every step of the way, choosing salon locations in high traffic regional malls and open-air centers and signing leases with the franchisee.

The Future. Industry experts believe the 78 million aging Baby Boomers will contribute to the growing hair care market as they continue to look for youth-enhancing tools such as hair coloring. Supercuts and Cost Cutters franchisees are in a position to meet the needs of each Boomer as well as their families and friends.

About Regis Corporation

Regis Corporation (RGS) is the industry leader in three distinct, but related, hair service businesses: beauty salons, hair restoration centers and beauty schools. As of December 31, 2004, the Company owned or franchised 10,412 hair salons, 91 hair restoration centers and 15 beauty schools operating under concepts such as Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade Secret, SmartStyle, Cost Cutters and Hair Club for Men and Women. These concepts are located in the US and in ten other countries throughout North America and Europe.