SALN Salon City Inc (CE)

Salon City, Inc. (OTCBB: SALN) announces that it has filed a Form 8-K today with the Securities and Exchange Commission. The filing reports that on February 2, 2009, the Company entered into an exclusive Placement Agent Agreement with Capital Growth Resources, Inc. ("CGR") of El Cajon, California, to act as its placement agent with respect to raising funds for Salon City, Inc.

The Financing consists of a $500,000 bridge loan offered to accredited investors that will provide the Company with operating capital. The term of this best efforts financing will be 180 days with an option to lengthen the term an additional 90 days. It is expected that a second stage of financing will occur with CGR that is contingent upon (1) the successful completion of the minimum raise of $75,000 in stage one and (2) the execution of a subsequent agreement between and Salon City and CGR (and affiliated entities) that is expected to raise up to $2 million dollars and will feature secured financing from accredited institutional investors by and through purchased memberships in the Salon City LIBAC Fund, LLC. There is no guarantee that the second stage financing will occur without the satisfaction of those items noted above.

CGR has a demonstrated record for assisting companies attempting to raise capital from institutional investors. Steven G. Casciola, SCI's President and CEO, stated, "The opportunity to become a viable participant in the institutional investor capital markets represents a positive move this year. We are excited and expect an enthusiastic ramp up for production of our new media, technology, products and licensing of our network of independent salons."

ABOUT SALON CITY, INC.

Salon City, Inc. is an emerging media company, lifestyle brand and independent marketing network for products, distribution and services. It publishes its flagship consumer publication, Salon City magazine, and produces the award-winning web show, Hollywood CeleBeauty, online media, licensed events and awards shows.

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the Company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.

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CONTACT: Media Relations 888-522-3263 Email Contact www.saloncity.com