Guthy-Renker Acquires 'Scalp Med' Hair Restoration System for Men and Women

Guthy-Renker Acquires 'Scalp Med' Hair Restoration System for Men and Women

Acquisition Unites Direct Response Industry Giant with Modern Health Labs, Inc.

PALM DESERT, Calif., Jan. 16 /PRNewswire/ -- The world's largest direct response television company, Guthy-Renker today announced that it has acquired Scalp Med, a hair restoration system for men and women from Modern Health Labs, Inc. Guthy-Renker, known for delivering quality products through award-winning shows that feature some of today's biggest stars, will manage all aspects of marketing and distribution to position Scalp Med as the leading hair re-growth brand in the U.S. The deal closed on December 31, 2007.

"The quality of Scalp Med's patented formulations and innovative products led us to seize this opportunity," said Guthy-Renker principal Greg Renker. "We are very pleased to acquire Scalp Med and help establish the brand as the nation's prominent hair restoration system. Furthermore, we believe this acquisition will accelerate the expansion of our growing health and beauty category."

For more than 20 years, Guthy-Renker has developed and created infomercials for some of the most profitable and well-known health and beauty products of Direct Response Television, including a host of successes such as America's best-selling skin care system Proactiv(R) Solution acne treatment with Vanessa Williams. Additional skin care brands include Principal Secret(R) developed with partner Victoria Principal; Meaningful Beauty(R) developed with partner Cindy Crawford; Sheer Cover(R) mineral makeup with Leeza Gibbons; Natural Advantage(R) with Jane Seymour and Youthful Essence(R) with Susan Lucci. Fitness brands include Winsor Pilates(R) featuring Daisy Fuentes and Core Secrets(R) with celebrity fitness trainer Gunnar Peterson, among others.

"We're very excited to join forces with Guthy-Renker," said Vicky Sroloff, Executive Vice President of Marketing for Modern Health Labs. "We hope that Guthy-Renker's business insight in the areas of media distribution and strategic brand planning will elevate Scalp Med's positioning and recognition and take the company's high quality products to the next level."

About Modern Health Labs

Modern Health Labs was established in 2000 with the purpose of researching and developing new, comprehensive health and beauty products that are safe and effective. By working with some of the top researchers and scientists in the health and beauty field, Modern Health Labs has created a unique line of new and exciting products that really work, all for a great price.

About Guthy-Renker

Established in 1988, Guthy-Renker is one of the world's largest direct response television companies with annual sales of $1.5 billion. It is known as the leading producer of high-quality infomercials and products designed for direct response television sales, with offices in Palm Desert, CA; Santa Monica, CA; London; Beijing; Tokyo; New Zealand; and Sydney, Australia. Guthy-Renker has a superior track record of customer satisfaction for 18 years.

Originally launched as a television direct marketer by Co-CEOs Bill Guthy and Greg Renker, the independently-owned, vertically-integrated company has since broadened its focus into every area of electronic retailing, making quality products available to U.S. and international consumers through broadcast television, cable and satellite, as well as internet, telemarketing, direct mail and retail channels.

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