Salon City, Inc. Begins Independent Audit in Preparation for SEC Filing of 10-KSB

WEST HOLLYWOOD, Calif.--(BUSINESS WIRE)--Salon City, Inc. (OTC:SLON) announced today that independent auditors Lake and Associates CPA’s LLC, with offices in Schaumburg, IL, and Boca Raton, FL, have begun auditing Salon City, Inc.’s 2007 year-end financials in preparation for the company’s filing of a Form 10-KSB with the Securities and Exchange Commission.

SCI’s accountants submitted financial statements this week and are working with the auditors to provide the necessary information for the audit to be completed so that the Form 10-KSB can be filed. The audit should be finalized within a few weeks.

Steven Casciola, SCI’s president and CEO, stated, "In early December, after our Form 10-SB/A had been approved by the SEC, and a market maker filed a 211 application, we believed that trading would soon begin. However, we were then informed that FINRA, the agency responsible for regulatory oversight of all securities firms that do business with the public, needed SCI to file a Form 10-KSB before they (FINRA) could consider approving OTCBB trading to commence. So although we were surprised, we are still well ahead of schedule in terms of filing requirements."

SCI anticipates that being listed on the OTCBB will serve as a more stable platform from which to pursue opportunities to raise additional capital for increased growth and expansion.

ABOUT SALON CITY, INC.

Salon City, Inc., the leading media company for beauty entertainment and the first to brand the genre, publishes Salon City magazine, where Life is Beautiful(SM). It is distributed nationally by Time Warner Retail, a Time Warner Company (NYSE:TWX), and internationally by Kable Distribution Services, an AmRep company (NYSE:AXR), in over 30 countries around the world.

For information about SCI, visit www.saloncity.com or e-mail SLON’s Investor Relations Department at [e-mail]. Join the weekly conference call every Thursday at 4pm EST. (605/475-6300, Code: 010405)

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the Company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.