Salon City Files Form 15 to Terminate SEC Reporting Obligations

BEVERLY HILLS, CA--(Marketwire - May 18, 2009) - Ewire -- Salon City, Inc. (OTCBB: SALN), an emerging media company, lifestyle brand and independent marketing network, announced today that on May 14, 2009 it voluntarily filed a Form 15 with the United States Securities and Exchange Commission to terminate the company's SEC reporting obligations.

Upon the filing of the Form 15, the company's obligation to file periodic and current reports with the SEC, including Forms 10-K, 10-Q and 8-K, will be immediately terminated. As a result of deregistration, the company's securities will not be eligible for trading on any national exchange or the OTC Bulletin Board; however, the company's securities may be eligible for quotation on the Pink Sheets by broker dealers.

Salon City's Board of Directors voted unanimously to file the Form 15 after careful consideration of the advantages and disadvantages of continued reporting to the SEC. Terminating the company's SEC reporting obligations will allow it to avoid the substantial expenses associated with reporting compliance and make those savings available for continued investment in the business, while also enabling management to focus more of its time and efforts on operating the company and enhancing shareholder value. Salon City intends to update its shareholders with annual financial information and interim communications covering important developments.

Steven G. Casciola, Salon City's President and Chief Executive Officer, said, "These decisions are extremely difficult but both appropriate and necessary given the company's current financial condition and status as a young public company. The extraordinary nine-month delay and eventual termination of an exclusive funding relationship, along with the chain reaction of challenges the delays created, directly impacted our actions. It is our opinion that terminating our reporting status will lower our overhead and provide the company with 'breathing room' while we adjust and continue to focus on executing our business plan."

In straightforward language, Casciola stated, "After the delay, I simply could not allow shareholder value and the company to be drowned with regulatory accounting and legal debt. We had to stop the bleeding to move ahead."

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Contact Information: CONTACT: Investor Relations 310-402-2801 Media Relations 888-522-3263 www.saloncity.com