FACE Physicians Formula Holdings, Inc. (MM)

Physicians Formula Holdings, Inc. (Nasdaq:FACE) ("Physicians Formula" or the "Company") announced that it has been informed by NASDAQ that the appointment of Company Board member Mr. Bruce Kanter to the Company's Audit Committee on July 1, 2011 brought it back in compliance with NASDAQ Rule 5605(c)(2). This rule requires at least three independent members to a NASDAQ-listed company's Audit Committee. The Company had become non-compliant with this rule after Mr. Padraic Spence resigned from the Board on May 24, 2011, leaving only two independent members on the Company's Audit Committee.

The Company noted that NASDAQ stipulated in its communications that the matter is now closed. The Company believes this makes it fully compliant with all NASDAQ listing rules.

About Physicians Formula Holdings, Inc.

Physicians Formula is an innovative cosmetics company operating in the mass market prestige, or "masstige", market. Under its Physicians Formula brand name, created in 1937, the Company develops, markets and distributes innovative, premium-priced products for the mass market channel. Physicians Formula differentiates itself by addressing skin imperfections through a problem-solving approach, rather than focusing on changing fashion trends. Currently, Physicians Formula products are sold in 25,700 stores, including those operated by Wal-Mart, Target, CVS and Rite Aid.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, forward-looking statements can be identified by words such as "anticipates," "estimates," "expects," "believes," "plans," "predicts," and similar terms. In particular, this press release may include forward-looking statements about management's expectations regarding the Company's refinancing, strategy, liquidity, financial performance and outlook. These forward-looking statements are based on current expectations, estimates and projections about the Company's business and its industry, based on management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and the Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to: the loss of any significant retailer customers or the degradation of our relationship with our significant retailer customers; the demand for the Company's products, including the new cosmeceutical skin care line; the Company's ability to expand its product offerings; the competitive environment in the Company's business, including the larger competitors the Company will now face in the skin care category; the Company's operations and ability to achieve cost savings; the effect of technological and regulatory changes; the Company's cash needs and financial performance; the Company's ability to comply with the financial covenants in its debt agreements; changes in general economic or market conditions; and other factors discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Risk Factors contained in the Company's filings with the SEC, and available at www.physiciansformula.com and the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements in this release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. Unless otherwise required by law, the Company expressly disclaims any obligation to update publicly any forward-looking statements, whether as result of new information, future events or otherwise.

(FACE/F)

CONTACT: Anne Rakunas
         ICR, Inc.
         (310) 954-1100