FTD, Inc. Announces Acquisition of Flowers USA

Business Wire, Oct 2, 2002

Business Editors

DOWNERS GROVE, Ill.--(BUSINESS WIRE)--Oct. 2, 2002

FTD, Inc. (NASDAQ:FTDI), a leading provider of floral services and products to FTD member florists and consumers, today announced the acquisition of Flowers USA.

Flowers USA is a quality direct marketer of floral products and specialty gifts, including everyday and special occasion floral arrangements, green and blooming plants and gourmet food items.

"We are very excited about the acquisition of Flowers USA," stated Chairman of the Board, President and CEO, Robert L. Norton. "The synergies between FTD's Consumer Business segment, FTD.COM, and Flowers USA will enable us to integrate Flowers USA's operations with FTD.COM's existing floral and specialty gift business, as we continue to focus on increasing profitability and shareholder value."

About FTD, Inc.

FTD, Inc., supported by its worldwide FTD brand, is a leading provider of floral services and products to member florists and consumers. Through its florist business, FTD, Inc. provides products and services to approximately 20,000 quality member florists in the U.S. and Canada and through affiliated or related organizations, connects approximately 28,000 additional florists in 152 countries outside of North America. FTD, Inc.'s consumer business is a direct marketer of flowers and specialty gifts, primarily through the www.FTD.COM Web site and 1-800-SEND-FTD telephone number. FTD, Inc.'s Class A Common Stock is quoted on the NASDAQ National Market under the symbol "FTDI". Additional information about FTD, Inc., including investor relations, is available at its Web sites, www.FTD.COM and www.FTDI.com.

Forward-Looking Statements

This press release contains various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future results of operations, including expectations regarding synergies between FTD's Consumer Business segment, FTD.COM, and Flowers USA, profitability and market opportunities in the floral and specialty gift business that are based on FTD's current expectations, and assumptions, estimates and projections about FTD and its industry. Investors are cautioned that actual results could differ from those anticipated by the forward-looking statements as a result of: FTD's ability to integrate the Flowers USA business with its existing floral and specialty gift business; the success of FTD's marketing campaigns; FTD's ability to retain customers and increase average order value; competition from existing and potential new competitors; levels of discretionary consumer purchases of flowers and specialty gifts; FTD's ability to manage or reduce its level of expenses; actual growth rates for the markets in which FTD competes compared with forecasted growth rates; FTD's ability to increase capacity and introduce enhancements to its Web site; the Company's ability to integrate additional partners or acquired businesses, if others are identified, and the existence of system failures. These factors, along with other potential risks and uncertainties, are discussed in FTD, Inc.'s reports and other documents filed with the Securities and Exchange Commission.