1-800-FLOWERS.COM Expects Revenue Growth of Approximately 22 Percent to $197 Million for its Fiscal Second Quarter Ended December 29, 2002.

Business Editors

WESTBURY, N.Y.--(BUSINESS WIRE)--Jan. 6, 2003

1-800-FLOWERS.COM (NASDAQ: FLWS)

- Company anticipates achieving fully diluted earnings per share (EPS) of approximately $0.15, a 400 percent increase compared with fully diluted EPS of $0.03 in the same period last year

- Company expects to report online sales growth of 25 percent compared with the prior year period

- Strong gross profit margin, expected to exceed 45 percent, reflects increased sales of higher margin non-floral gifts and benefits from the Company's continued focus on operating efficiencies and customer service

1-800-FLOWERS.COM(R) (NASDAQ: FLWS), a leading multi-channel retailer of thoughtful gifts for all occasions, today said the Company anticipates achieving record total revenue of approximately $197 million in its fiscal second quarter, which included the year-end holiday shopping period.

The revenue figure represents growth of 22 percent compared with total revenue of $162 million in the prior year period. The Company said it expects to report online sales growth of 25 percent to approximately $75 million compared with $60.5 million in the same period last year, while telephonic sales are expected to rise 22 percent to approximately $114 million compared with $93.6 million a year ago. The Company's fiscal 2003 second quarter ended December 29, 2002.

Based on the sales growth - combined with a strong gross profit margin that is expected to exceed 45 percent and a continued focus on managing operating expenses - the Company anticipates achieving EBITDA (earnings before income taxes, depreciation and amortization) growth of more than 150 percent to approximately $14 million and fully diluted EPS growth of 400 percent to approximately $0.15 compared with EBITDA of $5.2 million and EPS of $0.03 in the prior year period.

Jim McCann, CEO of 1-800-FLOWERS.COM, said, "Throughout our fiscal second quarter - which included the year-end holiday shopping period - we felt the impact of the weaker than expected consumer and corporate demand reported throughout the retail sector. Despite this challenging environment, we were able to achieve our largest quarter ever in terms of both top and bottom line. While our record revenue of $197 million was below expectations for the quarter, it represents solid growth of more than 20 percent compared with the second quarter last year. Most important, this growth, combined with strong gross profit margins and our focus on managing operating expenses, enabled us to increase our bottom line approximately 400 percent compared with the prior year period."

McCann noted that the Company was able to enhance its gross profit margins during the fiscal second quarter by avoiding the aggressive promotional pricing that characterized much of the retail sector this past holiday quarter. "As we have stated in the past, we continue to leverage our well-established operating infrastructure to continually enhance our bottom-line results," he said.

As it heads into the second half of its fiscal year, which ends June 29, 2003, McCann said the Company believes the overall economy will remain unsettled and consumers will continue to be cautious in their spending. Based on this outlook, the Company said that it expects to grow revenues during the second half of its fiscal year in a range of 7-to-9 percent compared with the same period in fiscal 2002.

"Despite the uncertain state of the economy, we anticipate continued success in our efforts to profitably grow our business - with a strong and trusted brand name, a growing database with more than 10 million customers, increasing acceptance of our higher margin non-floral gifts, and a unique fulfillment system that includes same-day delivery capability. We believe we are well positioned to further enhance our revenue growth rate and operating results when the economy and consumer demand improves," said McCann.

The Company expects to issue a press release announcing full financial results for its fiscal 2003-second quarter ended December 29, 2002 on January 22, 2003. A conference call will be held on the same day at approximately 11:00 a.m. (ET). The conference call will be web cast live from the Investor Relations section of the Company's website.

About 1-800-FLOWERS.COM(R)

For more than 25 years, 1-800-FLOWERS.COM has helped millions of customers connect to the people they care about with a broad range of thoughtful gifts, award-winning customer service and its unique technology and fulfillment infrastructure. The Company's product line - including flowers, plants, gourmet foods, candies, gift baskets and other unique gifts - is available to customers around the world via: the Internet (www.1800flowers.com); by calling 1-800-FLOWERS(R) (1-800-356-9377) 24 hours a day; or by visiting one of the Company-operated or franchised stores. The Company's collection of thoughtful gifting brands includes home decor and garden merchandise from Plow & Hearth(R) (phone: [phone] and web: www.plowandhearth.com), premium popcorn and other food gifts from The Popcorn Factory(R)(phone: [phone] and web: www.thepopcornfactory.com), gourmet food products from GreatFood.com(R) (www.greatfood.com), and children's gifts from HearthSong(R) (www.hearthsong.com) and Magic Cabin(R) (www.magiccabin.com). The Company's Class A common stock is listed on the NASDAQ National Market (ticker symbol "FLWS").

Special Note Regarding Forward-Looking Statements:

A number of statements contained in this press release, other than statements of historical fact, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the Company's ability to achieve solid, cost efficient growth; its ability to maintain and enhance its online shopping web sites to attract customers; its ability to successfully introduce new products and product categories; its ability to maintain and enhance profit margins for its various products; its ability to provide timely fulfillment of customer orders; its ability to cost effectively acquire and retain customers; its ability to continue growing revenues; its ability to compete against existing and new competitors; its ability to manage expenses associated with necessary general and administrative and technology investments; its ability to cost efficiently manage inventories; its ability to improve its bottom line results and build long-term shareholder value; its ability to leverage its operating infrastructure; its ability to achieve its stated results guidance for fiscal 2003, and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company's products. For a more detailed description of these and other risk factors, please refer to the Company's SEC filings including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.