Proflowers Achieves Over 50% Revenue Growth for Mother's Day Season; Customer Acquisition and Increased Customer Retention Fuel Sales

Business Wire, May 22, 2002

Business Editors

SAN DIEGO--(BUSINESS WIRE)--May 22, 2002

Proflowers, Inc., the largest direct-from-the-grower flower company in the U.S., today announced Mother's Day revenue jumped 51.2% to $15.5 million for the period of May 4 to May 11, compared with the same period last year.

Key factors that drove growth this holiday season included continued expansion of online customer acquisition channels and partnerships with Amazon.com (NASD: AMZN) and MSN (NASD: MSFT), among others. Additionally, targeted online e-mail campaigns and direct mail efforts performed very well.

The company's successful Mother's Day season follows a strong third quarter, in which revenues rose to $25 million, a 71% increase over the same period in 2001. Of the orders placed during January 1 to March 31, 45% were from repeat customers, and revenue from new customers was over $14 million.

"We are very pleased with the results of our Mother's Day season," said Bill Strauss, Proflowers' chief executive officer. "We anticipate that our growth in new customer acquisition and customer retention will continue to be key factors in our expansion and overall success."

About Proflowers

Proflowers, Inc., headquartered in San Diego, California, is the largest direct-from-the-grower flower company in the U.S. and the first flower retailer to offer a 7-Day Freshness Guarantee. Using its proprietary supply chain compression solution for the floral industry, the company offers customers an ever-growing variety of fresh, affordable flowers and plants through its network of growers. The company's international presence includes shipping capabilities to 25 countries worldwide. Proflowers has earned Forrester Research's number one PowerRankings in the Flower category for two consecutive periods in 2000. Proflowers was launched by Jared Polis in 1998.