Class Action Litigation – Law Firm Announces Class Action Lawsuit Against Ulta Salon, Cosmetics & Fragrance, Inc.

HARTFORD, Conn., Jan. 15, 2008 LAWFUEL – Legal Newswire — The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the Northern District of Illinois on behalf of all
persons who purchased the common stock of Ulta Salon, Cosmetics &
Fragrance, Inc. (“Ulta” or the “Company”) (Nasdaq:ULTA) pursuant or
traceable to the Company’s October 25, 2007 Initial Public Offering
(the “IPO” or the “Offering”) through December 10, 2007 inclusive (the
“Class Period”).

The Complaint charges that Ulta and certain of its officers and
directors violated federal securities laws. On October 25, 2007, the
Company conducted its IPO through a Registration Statement and
Prospectus which failed to disclose any material information about
third quarter 2007 earnings, despite the fact that the third quarter
was to end nine days after the filing of the Registration Statement.
Specifically, the Registration Statement failed to disclose the
following facts: (i) Ulta was unable to effectively manage inventory,
resulting in a 40% increase of inventory; (ii) that the Company’s
selling, general, and administrative expenses (“SG&A”), as a percentage
of net sales, had increased in the third quarter, largely a result of
previously undisclosed increased advertising expenses; and (iii) that
the Company lacked adequate internal and financial controls.

On December 11, 2007, Ulta released its third quarter 2007 fiscal
results. The Company revealed that it had an additional $15 million of
seasonal inventory, and that its SG&A had increased 36% to $55.6
million, due largely to increased expenditure for advertising. On this
news, shares of Ulta declined $6.59 per share, or 23.96 percent, to
close at $20.91 per share.

If you are a member of the class, you may, no later than February 19,
2008, request that the Court appoint you as lead plaintiff of the
class. A lead plaintiff is a class member that acts on behalf of other
class members in directing the litigation. Although your ability to
share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members,
including decisions concerning settlement. The securities laws require
the Court to consider the class member(s) with the largest financial
interest as presumptively the most adequate lead plaintiff(s).

While Schatz Nobel Izard P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at [email protected], or visit our website:
www.snilaw.com.

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