Gerald Stevens, Inc. Acquires Seven Leading Florists; Georgia, Michigan, Florida and Pennsylvania Florists Added to Expanding National Retail Chain

Business Wire, May 6, 1999

FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--May 6, 1999--

Gerald Stevens, Inc. (Nasdaq:GIFT), the leading retailer and marketer of flowers and floral-related merchandise and gifts, today announced the acquisition of seven floral retailers in the Georgia, Michigan, Florida and Pennsylvania markets, including two of the largest chains in the United States.

The acquisitions make Gerald Stevens the largest floral specialty retailer in the country with a distribution network of 124 retail locations in 18 markets.

"By acquiring stores in these major metropolitan areas, which include a number of the largest and fastest growing markets in the country, we are implementing our strategy to build a national merchandising and distribution network that enables us to deliver the highest quality floral products and services with same-day order fulfillment," said Gerry Geddis, president and chief executive officer of Gerald Stevens.

"As with all our prior deals, each of these acquisitions brings us talented management and thousands of established and extremely loyal customers."

Atlanta's Anemones

Included in the latest group of acquisitions are two of Atlanta's leading flower and gift retailers. In the Atlanta market, Weinstock's Flowers and Gifts and Flowers from Holland had combined revenues of nearly $4 million during the 1998 calendar year.

Weinstock's Flowers and Gifts, Atlanta's oldest and best-known florist, has provided the finest quality floral and gift products to Atlanta since 1917, serving approximately 40,000 corporate and residential customers yearly in Atlanta and around the United States. In 1939, Weinstock's provided all of the flowers for the set of Gone with the Wind.

Flowers from Holland, Atlanta's singular European-style flower market, has been Atlanta's only full-service florist delivering seven days a week since it opened in 1982. In 1999, Flowers from Holland was voted "Best Florist in Atlanta" by an Atlanta Journal-Constitution poll, as well as by Inside Buckhead Magazine and Creative Loafing Newspaper.

Detroit's Delphinium

Gerald Stevens has extended its reach into the Detroit flower and gift market by acquiring the 13 retail locations of the Thrifty's Flowers chain as well as two Country Lane Flowers locations. These 15 Detroit locations compliment the already existing 7 locations Gerald Stevens has acquired throughout Michigan, including Eastern Floral & Gift and Norton's Flowers & Gifts, making Gerald Stevens the largest floral retailer in the state.

Founded in 1990, Thrifty's Flowers is one of the top 20 floral chains in the United States. By providing reasonably priced, fresh flowers in convenient, high-traffic locations, Thrifty's has established itself as the leading convenience retailer of flowers in the United States. The chain's 13 locations reported revenues for 1998 of approximately $8 million.

Country Lane Flowers, which opened in 1974 as a hospital gift shop florist, has expanded into two retail shops and services 20 hospital gift shops, serving the majority of Michigan's gift and flower market. In 1998, Country Lane Flowers reported revenues of nearly $2 million.

Florida's Freesia

With their Florida acquisitions, Gerald Stevens becomes the largest floral retailer in the state. Adding to its already massive presence in Florida, including shops in Tampa, Lakeland, Gainesville and Jacksonville, Gerald Stevens has concluded a combined deal for the acquisition of the state's top flower and gift vendors, Kuhn Flowers and Exotic Gardens. Together, Kuhn Flowers and Exotic Gardens reported 1998 revenues of approximately $11 million.

Founded in 1914, The Exotic Gardens and Kuhn Flowers together have grown into one of the top ten florists nationwide and are the oldest florist in Florida. The Exotic Gardens has three locations in South Florida, specifically Boca Raton, Miami and Ft. Lauderdale; while Kuhn Flowers operates four locations in Jacksonville.

Allentown's Azalea

A provider of greenhouse-direct flowers for more than 50 years, Allentown's Phoebe Floral Shop broadens Gerald Stevens' presence in Pennsylvania, making it the largest floral retailer in the state. Started in a run-down greenhouse, Phoebe Floral Shop has grown significantly through its intense focus on value and customer satisfaction. The company reported revenues of nearly $4 million for 1998.

About Gerald Stevens, Inc.

Gerald Stevens, Inc. (Nasdaq:GIFT) is the leading retailer and marketer of flowers and floral-related merchandise and gifts. The company currently owns 124 stores in 18 markets in the United States, including 92 free-standing retail florists and 32 supermarket locations; two of the largest floral order generation businesses, The Flower Club and National Flora; the FloraFax wire service, the fourth largest flowers-by-wire service in the United States; and a number of Internet floral businesses.

Gerald Stevens has strategic alliances to fill floral orders for numerous Fortune 500 companies, including several major oil companies, airlines, department stores and banking institutions.