NPD REPORTS STRONG SALES OF STRIVECTIN-SD, DESPITE LOW AWARENESS

New Study Shows Women Using Stretch Mark Cream Primarily on Their Faces

PORT WASHINGTON, NEW YORK, July 19, 2004 - Move over Botox; women are embracing StriVectin-SD, a stretch mark cream that has quickly become one of the top sellers in U.S. department stores in the prestige skincare industry. According to Beyond Botox: Understanding the StriVectin-SD Consumer, a recent study by The NPD Group, a marketing information company, StriVectin-SD achieved over $13 million in department store sales between its launch date in May 2003 and December 2003. In the first five months of 2004, sales of StriVectin-SD has already generated $30 million, compared to successful new skincare products that generally sell between $20-$30 million their first year in U.S. department stores.

Originally developed by Klein-Becker as a product to reduce the appearance of stretch marks on the body, the StriVectin-SD phenomenon began when women used the product on their faces and, according to Klein-Becker, reported a reduction of wrinkles, crows feet and fine lines. According to NPD, approximately 75 percent of StriVectin-SD buyers are using the cream to battle facial wrinkles and fine lines. Introduced and initially sold exclusively in health food stores, StriVectin-SD has since been successful in selling across multiple distribution channels, including the Internet, department stores, specialty stores and directly from the manufacturer.

"Since its arrival in U.S. department stores in May of last year, StriVectin-SD has become an important player in the prestige skincare industry," said Timra Carlson, president, NPD Beauty. "In a short period of time, StriVectin-SD has managed to surpass blockbuster prestige skincare products in terms of dollar volume."

So, what’s responsible for such success? NPD’s study explores factors such as consumer satisfaction, their likes and dislikes about the product and whether or not they intend to buy the product again. Current hype about StriVectin-SD’s surprising anti-aging benefits has undoubtedly boosted awareness. Its advertising campaign, with the tagline "Better Than Botox?" has helped spark interest in the product by creating a sense of urgency and leading consumers to the counter.

Despite strong sales, however, awareness and ownership of StriVectin-SD remains low, with fewer than five percent of women aware of the product and only 12 percent of those owning the product. Most of these women hear about the product from newspapers or magazines, in-store displays, the Internet, word of mouth and infomercials. Of women who own the product, the majority use it for reasons other than the manufacturer’s original intended purpose as a stretch-mark cream.

"What’s interesting is that the number of women using this stretch mark treatment to combat the effects of aging on the face is similar to the number of women getting collagen or Botox treatments," said Carlson. "Since a large portion of women currently using StriVectin-SD on their faces would be interested in other StriVectin facial products, it will become more important than ever for Klein-Becker and its competitors to stay in touch with consumers and listen to their needs."

About the Report
Beyond Botox: Understanding the StriVectin-SD Consumer Study was conducted via the Internet among a geographically and demographically balanced nationwide sample of over 45,000 women in May 2004. Respondents were screened using a nationally represented, demographic profile of females between the ages of 18 and 64 years old.

For more information on purchasing results of the Beyond Botox: Understanding the StriVectin-SD Consumer Study, contact Arabella Greystoke at 516-625-6102 or arabella_greystoke@npd.com.

About The NPD Group, Inc.
Since 1967, The NPD Group has provided reliable and comprehensive sales and marketing information for a wide range of industries. NPD provides critical knowledge on what is selling, where, to whom and why to help our clients make more successful, fact-based business decisions. Today more than 1,300 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business and positively impact sales and revenues. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, cellular, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys and video games.

About NPD Beauty
NPD Beauty, the beauty-tracking division of The NPD Group is the authority on - and leading marketing information provider for - the prestige beauty industry in the United States. The BeautyTrends® retail point-of-sale service tracks sales of prestige fragrances, makeup and skincare products sold in U.S. department stores. FragranceTrack® is an annual attitude and usage study that tracks consumer behavior. A key component of FragranceTrack is the scent database and monthly blind scent testing that is based on responses from NPD’s consumer online panel.

For more information:
Dora Radwick
dora_radwick@npd.com
516-625-6190

or

Cristina Hilsenrath
cristina_hilsenrath@npd.com
516-625-2443