Date: 22nd July 2008

flowersdirect Strengthens its Relay Network

Lancashire based flowersdirect, a leading floral and gifting company, has announced plans to create a larger, stronger Relay Network with greater marketing and fulfilment strength and much improved coverage. Since the acquisition of the Flowergram business in May 2007, Flowergram members have operated as a separate Relay Network to that of flowersdirect.

After the multi-million pound investment by Manchester based Zeus Private Equity in October 2007, the company has been reviewing its strategy, especially in respect of how it could generate more orders for the Florist Member Network. Operating one enlarged Relay Network would be a key driver of greater sales volumes and for this reason it is the company’s plan to press ahead with the integration of the Flowergram Relay Network into the already highly successful flowersdirect Relay Network.

The change will bring many benefits for members and customers alike. Combining the two Relay Networks will give improved coverage in the UK & Ireland, ensuring more orders are delivered by dedicated, experienced local member florists. By simply focussing on one Relay Network the company’s improved efficiencies will greatly assist in providing an even better service.

All members of both Relay Networks are being contacted and will be fully supported throughout the transitional period. The transferring of Flowergram Members to the flowersdirect Network will take place over the coming months in readiness for Christmas and the main floral events.

Commenting on the announcement, Ian Rawlins of flowersdirect said: "This change gives flowersdirect the perfect opportunity to create an extended Network of high quality florists. With more marketing and fulfillment strength we will be able to take our members on an exciting journey towards sales growth and improved profitability. Whilst the market remains highly fragmented, flowersdirect’s e-commerce expertise will greatly assist in ensuring the company is well positioned to take advantage of forecasted online growth. The size and breadth of our newly enlarged Relay Network will allow flowersdirect to provide a high quality service to both its private and corporate client base."

Gary Tipper, Managing Partner of ZPE, added: "The merging of our Relay Networks marks the latest stage in the long term development plan for the company. flowersdirect’s rapid growth has been driven by an innovative approach to online marketing, sustained investment in technology and communication systems, and the quality of it’s Member florists. I am confident that by focussing on these core strengths, the growth will continue in the months ahead."

Since the investment by Zeus the company has made a number of new key management appointments that will greatly assist in realising its potential:

Victor Porter has joined the company as IT Director and has already made great strides in the development and improvement of the award winning flowersdirect Communicator system.

Stephen Hartley has joined the company as Call Centre Manager. Stephen has made rapid improvements within flowersdirect’s call centre and is working on enhancing our service and procedures.

Andrew Gilliver has joined the company as Relay Manager. Andrew has been developing the company’s Relay business, focussing on improving its delivery service throughout the UK and Ireland.

Emma Bowes our most recent appointment joins the company as Brand Manager. Emma will be developing the company’s corporate client base and 3rd party white label brand partners.

website: www.flowersdirect.co.uk