Contact: Sam Dhatt
(510) 489-8896

September 5, 2006

DermaQuest, Inc., Allure Cosmetic Inc., and Sam Dhatt have appealed a judgment that was entered against them and others last fall in a lawsuit that was brought by Jan Marini Skin Research, Inc. Mr. Dhatt and his companies believe that critical evidence potentially affecting the outcome of the trial was precluded. They have bonded the entire judgment and have commenced the appeal. Mr. Dhatt is optimistic that the judgment will be reversed and he and his companies will ultimately be vindicated.

In the same trial, Allure Cosmetic USA prevailed on some of its claims against Sam Dhatt’s former business partner Gurpreet Sangha. Mr. Sangha is an owner of G.S. Cosmeceutical USA, Inc., which manufactured products for Jan Marini Skin Research, Inc. The jury found that Gurpreet Sangha breached his fiduciary duty to Allure Cosmetic USA and intentionally interfered with its customer relationships. The jury also found that Mr. Sangha had acted with malice, oppression, or fraud. The jury awarded Allure Cosmetic USA $427,000 in compensatory damages and $210,000 in punitive damages against Mr. Sangha.