1368457--11/23/2010--Alberto-Culver

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{acquisition, growth, future}

{operation, natural, condition}

{financial, litigation, operation}

{investment, property, distribution}

{cost, operation, labor}

{operation, international, foreign}

{customer, product, revenue}

{condition, economic, financial}

{product, market, service}

{cost, regulation, environmental}

{competitive, industry, competition}

{property, intellectual, protect}

{stock, price, share}

{personnel, key, retain}

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{product, liability, claim}

Risks Related to the Unilever Transaction The Unilever Transaction is subject to a number of conditions and termination events which if not satisfied or waived would adversely impact the company s ability to complete the transaction. The outcome of legal proceedings that have been instituted or may be instituted in the future against the company in connection with the Unilever Transaction could have a material adverse effect on the company s business. The announcement and pending nature of the company s agreement to be acquired by Unilever could have a material adverse effect on the company s business. The failure to complete the Unilever Transaction could have a material adverse effect on the company s business. Risks Related to the Company s Business and Operations The failure of the company to effectively anticipate and respond to market trends and changes in consumer preferences could have a material adverse effect on its business, financial condition and results of operations. The loss of one or more key employees could have a material adverse effect on the company s business, financial condition and results of operations. The company faces intense competition in its markets, and the failure to compete effectively could have a material adverse effect on its business, financial condition and results of operations. The company depends on a limited number of customers for a large portion of its net sales, and the loss of any of these customers or a material reduction in sales to any of these customers could have a material adverse effect on the company s business, financial condition and results of operations. Large sophisticated customers may take actions that adversely affect the company s margins and results of operations. The failure of the company to improve its margins through efficiency initiatives, as well as cost increases for or availability of raw materials and/or packaging, could materially affect the company s business, financial condition and results of operations. The disruption of the company s normal business activities as a result of the implementation of a new worldwide ERP system could have a material adverse effect on the company s business, financial condition and results of operations. The company s business is exposed to domestic and foreign currency fluctuations that could have a material adverse effect on the company s business, financial condition and results of operations. The company s business could be adversely affected by a prolonged downturn or recession in the United States and/or the other countries in which it conducts business. If the company is unable to protect its intellectual property rights, specifically its trademarks, its ability to compete could be negatively impacted. The failure of the company to expand in existing geographic locations or enter new geographic locations could have a material adverse effect on the growth of the company s business, sales and results of operations. Any future acquisitions and strategic alliances may expose the company to additional risks. Product liability and other types of product claims could adversely affect the company s business, financial condition and results of operations. The company s ability to conduct business in or import products from international markets may be affected by legal, regulatory, political and economic risks. Environmental matters create potential liability risks. Changes to the legal and regulatory requirements could materially and adversely affect the company s financial condition and results of operations. The company is a holding company with no operations of its own and depends on its subsidiaries for cash. Risks Related to the Separation If the distribution of New Alberto Culver shares as part of the Separation does not constitute a tax-free distribution under Section 355 of the Internal Revenue Code, then New Alberto Culver or New Sally (pursuant to a tax allocation agreement entered into in connection with the Separation) and Alberto Culver stockholders may be responsible for payment of significant U.S. federal income taxes. The distribution of New Alberto Culver shares may be taxable to New Sally and New Alberto Culver if there is an acquisition of 50% or more of New Alberto Culver s or New Sally s outstanding common stock. Actions taken by the Lavin family stockholders or by Investor could adversely affect the tax-free nature of the New Alberto Culver share distribution. Under U.S. federal bankruptcy laws or comparable provisions of state fraudulent transfer laws, stockholders could be required to return all or a portion of the cash and shares received in the distributions.

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1368457--11/23/2010--Alberto-Culver_CO