The 1-800-FLOWERS brand is one of the most recognized brands in the floral and gift industry. We believe our brand is characterized by convenience, high-quality products, a broad selection of merchandise and superior customer service. Our customers purchase our products online at our website (www.1800flowers.com) via our portal partners (AOL keywords: flowers, garden, gift); by calling us toll-free at 1-800-flowers, or by visiting our Company owned or franchised retail stores. We were one of the first companies to market products online beginning in 1992 through CompuServe and on America Online in 1994. In 1995, we opened our own Web site and since then have expanded our online presence through strategic marketing relationships with key interactive services companies, including AOL and its major brands, MSN, Yahoo, and others. Our online partnerships also include approximately 30,000 members of our online affiliate program.

Along with the development of our online business, we have expanded our product offerings to include gourmet foods, giftware, jewelry and gifts for home and garden. As a result, we are developing relationships with customers who purchase products for a growing number of traditional and personal gifting occassions. Our product line reflects thoughtful gifts that accommodate our customers' needs to celebrate a special occasion, convey a sentiment or indulge a casual lifestyle.

Many of our products must be handled delicately and delivered promptly to ensure freshness and customer satisfaction. We fulfill our products through our "BloomNet" network of approximately 1,500 independent local florists, our Company owned and franchised stores, third party suppliers, as well as our own advanced fulfillment centers. We offer same day, next day and future date delivery and back our products and services with a "100% Satisfaction Guarantee." Our technology, which is anchored by our proprietary order processing system, is designed to support the high volume of transactions processed through our online and telephonic sales channels. Our systems are scalable, redundant and have demonstrated their reliability during periods of peak demand.

Our Web site (www.1800flowers.com) is continuously updated and designed to ease the order processing cycle by incorporating sophisticated search capabilities and personalization features. The site is content rich to include the presentation of our broad array of products, seasonal promotions, gift ideas, and related topics of interest. It is secure and supported 24 hours a day, seven days a week through a dedicated customer service staff located in our state-of-the-art service centers, which feature 24 x 7 live customer service, real-time online keyboard-to-keyboard chat messaging, “click-to-talk” capability and e-mail.

As a company, we are well positioned and posses a solid balance sheet with which to pursue an aggressive growth strategy. In doing so, we believe we can grow our business cost effectively and thereby enhance stockholder value.