Steiner Leisure Limited Agrees to Acquire Greenhouse Day Spas

Steiner Leisure Limited (Nasdaq:STNR)--the leading provider of spa services to cruise industry plans to expand into the land-based luxury day spa business through the purchase of the Greenhouse chain of eleven spas. The spas are located throughout the U.S., including New York City; Beverly Hills; Houston; Greenwich, Connecticut; and Troy, Michigan.

In a recent press release, Leonard Fluxman, President and Chief Executive Officer confirmed that Steiner Leisure Limited will pay for the Greenhouse Day Spas $24.7 million in cash and $3.0 million in Steiner Leisure stock. In addition, $3.0 million and 200,000 options in Steiner Leisure stock can be earned if certain EBITDA thresholds are obtained.

The terms of the deal call for the continued operational involvement of Gerald and Lee Katzoff, the current owners and senior executives of the Greenhouse Day Spa group. In addition, Steiner will license the right to use the 'Greenhouse' name to the Katzoff's, who will continue to own and operate the Greenhouse luxury destination spa in Arlington, Texas, which is excluded from the Steiner transaction.

'We are very excited by the acquisition of this well known and well respected brand, which offers a full range of the most modern beauty services including facial and body treatments, expert manicures and pedicures and non-evasive laser procedures for skin resurfacing and hair removal,' said Fluxman. 'It reflects our continued diversification into high quality land-based operations with ideal settings for daily luxuries and exceptional guest services, and will assist us in opening new channels for distributing our Elemis product line in the U.S. Additionally, we will selectively offer this well respected brand to our luxury maritime and resort partners.'

Steiner Leisure Limited is the leading world-wide provider of spa services in the world. The company operates the spas and salons on 104 cruise ships, including Carnival Cruise Line, Royal Caribbean Cruise Lines, Princess Cruises, Disney Cruises, Celebrity Cruises, and Holland America Lines. Elemis Ltd., a dedicated spa therapy company, manufactures its Elemis brand for use on board Steiner cruise ships spas. This top quality European line of beauty products is also distributed worldwide to some of the most exclusive five star hotels, salons, health clubs and destination spas. Elemis, as well as other Steiner private label products, including La Therapie, Ionithermie, and Steiner Hair Care, are available at

Steiner Leisure is also on the cutting edge of spa education--owning and operating three post secondary schools (comprised of nine campuses) located in Miami, Fort Lauderdale, Orlando, Sarasota, Virginia and Baltimore. Offering degrees in massage, advanced therapy and skin care, these schools train and qualify spa professionals for health and beauty positions within the Steiner family of companies or other industry entities.

Steiner expects to open a luxury spa at a major resort and casino in Las Vegas, by the end of 2001.