Important Company Annoucement
8.01.06

Dear Friends,

We are pleased to announce that we have sold our interests of Sunshine Holdings, Inc. to our current sales executives, and a local area investor, MH Equity. It is a natural transition for all companies to eventually turn over the reigns of business to someone that can provide more resources and potential. By selling to our known team, supported by an excellent business group, we are confident that your success in the industry will continue.

This new team will enable the dream that we started in 1984 to continue to grow, with new energy. Although this is a very bittersweet moment for us, we know that your future with the new Sunshine Holdings ownership is very bright. We chose this buyer group for many reasons, some of the most important being their overwhelming support to the tanning industry; and their goal of continuing the legacy of Australian Gold, ETS, Helios and First Line.

Steve and Tomisue Hilbert of MH will join the Sunshine executive group. Steve will be the Chairman of Sunshine Holdings and will oversee all individual companies. The Hilbert’s have been longtime users of ETS equipment and Australian Gold lotion, and they truly love the tanning industry. We also happen to be very good friends. They are very excited to capitalize on the growth opportunities in tanning and skin care and to work with each of you to improve the industry.

Leslie Hartlieb, Bill Pipp and John Keiffner have also invested into the new Sunshine Holding group. They will continue to manage the Sunshine companies as they did before this transaction. Our goal is for this to be as seamless as possible to each of you, as business will continue as usual and the executive team will continue operating the organizations as they have done over the past few years.

We know that your support of our companies is the reason for our success, and we want to thank you for everything. We especially cherish your friendship, advice and the hard work that we have shared over the past 22 years. We love the companies and the industry and our decision to move on has not come without much consideration. The tanning industry continues to become more professional each day, and the cottage industry we started in has become a viable, profitable industry because of what we all have done. As many of you know, I have worked up to the last day, in an effort to strengthen not only our business but also the industry that I love so much. We will continue to be involved in the industry as Creative Founders and look forward to seeing you at the trade show.

We wish all of you the best of luck and are excited to watch the success of the companies and the tanning industry continue to grow.

Sincerely,
Trevor and Edna