BSW

BSW CURRENTLY OPERATE 4 LOCATIONS IN LAS VEGAS, NEVADA, 3 LOCATIONS IN SAN DIEGO, CA, 1 LOCATION IN AURORA, CO, AND 1 LOCATION IN BATON ROUGE, LA. OUR CORPORATE OFFICE IS LOCATED IN TORRANCE, CA, AT THE DEL AMO FINANCIAL CENTER. WE CURRENTLY LEASE AND OWN OVER 200,000 SQUARE FEET OF RETAIL SPACE, WITH AN AVERAGE STORE SIZE OF APPROXIMATELY 20,000 SQUARE FEET (TYPICAL BEAUTY SUPPLY STORES NATIONWIDE RANGE BETWEEN 1,000 AND 2,000 SQ. FT.). EACH LOCATION ALSO HAS A FULL SERVICE BEAUTY SALON WITHIN THE FACILITY, WHICH WE TYPICALLY LICENSE OUT TO INDEPENDENT CONTRACTORS.

THE GRAND OPENING OF OUR FIRST LOCATION WAS A HUGE AND IMMEDIATE SUCCESS, WHICH GAVE WAY TO THE GRAND OPENING OF OUR SECOND STORE IN LESS THAN 6 MONTHS. BSW #2, LOCATED IN THE HEART OF LAS VEGAS, IMMEDIATELY BECAME THE "TALK OF THE TOWN", AND MORE IMPORTANTLY THE "TALK OF THE INDUSTRY", AS A PHENOMENON IN THE BEAUTY SUPPLY INDUSTRY. BY OPENING A 20,000 SQ. FT. RETAIL FACILITY DEDICATED ONLY TO BEAUTY PRODUCTS(A WIG DEPARTMENT WITH MORE THAN 10,000 WIGS IN STOCK, THOUSANDS OF SQUARE FEET PACKED WITH HAIR EXTENSIONS, ALMOST EVERY BRAND NAME IN HAIR CARE, A COSMETICS DEPARTMENT SECOND TO NONE, AND EVEN A FULL SERVICE BEAUTY SALON), BEAUTY SUPPLY WAREHOUSE HAD REINVENTED THE BEAUTY SUPPLY STORE. WITH 2 VERY SUCCESSFUL LOCATIONS UNDER OUR BELT, WE OPENED OUR 3RD, 4TH, 5TH, AND 6TH LOCATION IN 2004, ALL OF WHICH HAVE SHARED A SIMILAR SUCCESS TO OUR FIRST 2 LOCATIONS.

AFTER LEASING AND OPENING OUR 7TH STORE IN EARLY 2005, WE DECIDED WE WOULD PURCHASE THE REAL ESTATE ON ANY FUTURE SITES. WITH THAT IN MIND, WE PURCHASED OUR FIRST PIECE OF REAL ESTATE (AN 8,000 SQ. FT. FREESTANDING BUILDING IN SAN DIEGO), AND OPENED BSW#8 BEFORE THE YEAR WAS UP. ALSO, WE CLOSED ESCROW ON A 25,000 SQ. FT. FREESTANDING BUILDING IN AURORA, COLORADO JUST BEFORE THE END OF THE YEAR. THE COLORADO STORE OPENED IN OCTOBER OF 2006, AND HAS SINCE PROVEN TO BE ONE OF OUR HIGHEST VOLUME STORES. WE CURRENTLY HAVE SEVERAL LOCATIONS IN THE SOUTH THAT ARE IN VARIOUS STAGES OF DEVELOPMENT (A 40,000 SQ. FT. FACILITY IN BATON ROUGE, LA THAT OPENED IN JUNE 2007, TWO 45,000 SQ. FT. FACILITIES IN JACKSON, MS, BOTH OPENED IN 2008, AND SEVERAL OTHER SITES THAT ARE UNDER CONSIDERATION). WE ARE ALSO ACTIVELY WORKING ON EXPANDING OUR MARKET SHARE IN THE MARKETS IN WHICH WE ALREADY OPERATE, AND WILL BE OPENING ADDITIONAL LOCATIONS IN THOSE MARKETS.