Gerald Stevens, Inc. Announces Profitable Second Quarter.

Business Editors

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 11, 2000

Gerald Stevens, Inc. (Nasdaq:GIFT), the nation's largest specialty retailer and marketer of floral products, today announced financial results for the second quarter ended February 29, 2000.

Revenue for the second fiscal quarter increased to $81.6 million from $26.8 million in the same period last year. The Company reported net income for the second quarter of $3.3 million or $0.07 per share compared to a net loss of $6.1 million or $0.18 per share a year ago. Revenue for the six-month period ended February 29, 2000 increased to $130.8 million from $40.0 million in the same period last year. The net loss for the six-month period ended February 29, 2000 was $1.0 million or $0.02 per share compared to a net loss of $6.5 million or $0.21 per share a year ago. All operating results are on a combined basis, retroactively reflecting the merger of Gerald Stevens, Inc. and Florafax International, Inc. on April 30, 1999. The results were in line with analyst estimates.

Gerald R. Geddis, president and chief executive officer, stated, "We're thrilled with our performance during the second quarter. A number of factors contributed to our success including quality acquisitions, solid organic revenue growth in both our retail and order generation businesses, particularly on the Christmas and Valentine's Day holidays, and continued gross margin improvement in our retail operations. Florafax, our wire service and private label corporate partnership business, had a terrific quarter, highlighted by the addition of several new members to The Flower Club marketing program and significant volume growth from existing accounts.

"During the quarter we expanded our retail network into Los Angeles, Chicago, Philadelphia, Las Vegas, Minneapolis and Omaha, giving us a retail presence in 35 markets in the United States and Toronto," Geddis added. "On the operations front, our integration efforts began to have a meaningful impact on both the top and bottom line. Operational improvements, especially noticeable on the two major holidays during the quarter, allowed us to take and fill more orders in the retail stores. Same-store sales - sales for the stores we owned in the second quarter of last year - were up 11% for the quarter. And continued improvements in our buying programs led to a lower cost of goods on all of our orders."

Geddis continued, "We introduced the Gerald Stevens brand in each of our markets during the quarter with co-branded catalogs and direct mail pieces. And our two branded stores, one in Boca Raton, Florida, and the second, opened in Atlanta, Georgia, in late-February, continue to perform well. Our principal web site, www.geraldstevens.com, continues to generate significant growth in order volume despite the significant cutback in advertising for the site. We believe this performance is attributable to the quality of the shopping experience available on the site and the outstanding customer service and support provided by our call centers, our wire service and our retail network."

Gerald Stevens will host its quarterly earnings conference call at 10 am EST on Wednesday, April 12, 2000. Domestic Dial-in (U.S.) 800-966-6502.

Gerald Stevens, Inc. (Nasdaq:GIFT) (www.geraldstevens.com) is the largest specialty retailer and marketer of floral products in the country. The Company currently operates the largest network of floral specialty retail stores in the United States with over 300 locations across the country and in Toronto, Canada. It also operates Florafax, a national wire service with over 5,000 member florists covering all 50 states, four regional call centers and Internet businesses that take orders 24 hours a day, 7 days a week. Additionally, Gerald Stevens owns National Flora, a leading national floral marketing company with premium-placed advertisements in over 1,000 Yellow Page directories; the Flower Club, a leading corporate affinity marketer with over 50 corporate partners; and upscale floral company, Calyx & Corolla, Inc., the leading direct marketer of floral products and the largest direct-from-grower operation in the United States. Gerald Stevens also owns its own import and sourcing operation in Miami, Florida.

This announcement contains "forward-looking" information. Future results may differ from those discussed in this announcement. Some of the factors that could cause such differences can be found under the headings "Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 24, 1999.

                             GERALD STEVENS, INC.        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)                  (In thousands, except per share data)                              Three Months Ended      Six Months Ended                             ------------------      ----------------                             Feb. 29,   Feb. 28,    Feb. 29,   Feb. 28,                               2000       1999        2000      1999                             ------------------      ----------------  REVENUE:      Product sales, net     $63,186    $19,678     $100,643   $28,373      Service and other       revenue                18,393      7,094       30,140    11,622                             --------    -------    ---------   ------                              81,579     26,772      130,783    39,995                             --------    -------    ---------   ------  OPERATING COSTS AND EXPENSES:      Cost of product sales   22,545      8,896       36,552    12,744      Operating expenses      27,716      9,023       47,355    13,356      Selling, general and       administrative        expenses              27,353      8,901       46,814    14,260      Merger expenses              -      3,966            -     4,051                              ------     -------    --------    -------                              77,614     30,786      130,721    44,411                              ------     -------    --------    -------         Operating income          (loss)               3,965     (4,014)          62    (4,416)                              ------     -------    --------    -------  OTHER INCOME (EXPENSE):      Interest expense          (531)      (115)        (925)     (183)      Interest income             13         66           29       173      Other income               179         66          160        96                              ------     -------    --------     ------                                (339)        17         (736)       86                              ------     -------    --------     ------         Income (loss) before          provision for income           taxes               3,626     (3,997)        (674)   (4,330)  PROVISION FOR INCOME TAXES      345      2,127          345     2,127                              ------      ------     -------     ------         Net income (loss)    $3,281    $(6,124)     $(1,019)  $(6,457)                              ======     =======     =======     ======  BASIC INCOME (LOSS) PER SHARE $0.07     $(0.18)      $(0.02)   $(0.21)                              ======     =======     ========    ======  DILUTED INCOME (LOSS)  PER SHARE                    $0.07     $(0.18)      $(0.02)   $(0.21)                              ======     =======      =======    ======  WEIGHTED AVERAGE COMMON AND COMMON  EQUIVALENT SHARES OUTSTANDING:         Basic                45,323     33,532       44,844    31,198                              ======     =======      =======   ======         Diluted              46,293     33,532       44,844    31,198                              ======     =======      =======   =======