Youth Enhancement Systems, Inc Participates In Electronic Retailing Self-Regulation Program

New York, NY – June 2, 2005 – The Electronic Retailing Self-Regulation Program (“ERSP”), the electronic direct-response industry’s self-regulatory forum supervised by the National Advertising Review Council (“NARC”), announced that direct response marketer Youth Enhancement Systems, Inc has provided a reasonable basis for general performance and safety claims communicated for its ProCede Hair Thickening System product in a 2-minute television advertisement, and will discontinue comparative performance claims. The truth and accuracy of the marketer’s claims came to the attention of ERSP through its ongoing monitoring program.

ERSP requested that the marketer provide substantiation for several core claims communicated in its advertising for the ProCede Hair Thickening System, including: performance claims “All it takes is one application every 90 days, and the change in your hair’s appearance will likely astound you!”); comparative claims (““No other cosmetic hair thickening system has been proven to produce results as dramatic as ProCede™.”) and safety claims (“Safety tests and a clinical trial have been conducted by independent laboratories to verify the safety and effectiveness of ProCede.”).

ERSP determined that the studies on ProCede submitted by Youth Enhancement provided a reasonable basis for its core product performance and safety claims but recommended that the marketer discontinue its comparative performance claims.

In response to the ERSP decision, Youth Enhancement Systems, Inc. stated that it “… appreciates ERSP’s consideration of this matter, and its agreement that Youth Enhancement provided a reasonable basis for both its core performance claims and safety claims.” Although the marketer disagreed with ERSP’s determination regarding comparative claims, “… in deference to ERSP, Youth Enhancement will discontinue the comparative performance…”