Physicians Formula Holdings, Inc. Announces the Launch of Physicians Formula Cosmeceutical Skin Care Exclusively at Wal-Mart

The New Line Marks the Company's Entrance Into the Skin Care Category

AZUSA, Calif., June 16, 2011 (GLOBE NEWSWIRE) -- Physicians Formula Holdings, Inc. ("Physicians Formula" or the "Company") today announced that the Company has developed a new skin care line, under its Physicians Formula brand name. Starting at the beginning of August, the line will be carried exclusively in approximately 2,500 Wal-Mart doors, with the potential to expand to other retailers in 2012. It will initially be shelved in Wal-Mart's skin care department next to other cosmeceutical skin care lines. The line will include 14 SKUs, which the Company will begin shipping to Wal-Mart this month.

Physicians Formula cosmeceutical skin care is a major strategic development for the Company, which had been previously focused on color cosmetics. The Company believes that its seventy-four year legacy as a doctor-founded, problem/solution brand makes skin care a natural extension of its efforts. Expanding into this new category will increase awareness of the brand, which is one of the Company's main strategic objectives, as well as increase revenue potential and diversify the Company's sales and risks.

The Physicians Formula cosmeceutical skin care line was developed in-house by the Physicians Formula R&D and product development teams. It is formulated to create visible results for the consumer with innovative technology and ingredients, while also simplifying the process of choosing the correct skin care for one's individual needs. The line includes three regimens focused on the most common skin concerns, including Aging, Moisture Balance and Sensitivity & Redness. Each regimen includes three steps: cleanse, moisturize and treat, and incorporates best-in-class cosmeceutical ingredients at the clinically-tested level.