Calloway's Nursery Announces Planned Acquisitions: Cornelius Nurseries and Wolfe Nursery.

FORT WORTH, Texas--(BUSINESS WIRE)--June 7, 1999--

Calloway's Nursery, Inc. (Nasdaq:CLWY) announced today that it has entered into definitive agreements to acquire Cornelius Nurseries of Houston, and Wolfe Nursery of San Antonio and Austin.

These are two of Texas' leading garden center chains. Both acquisitions are subject to completion of due diligence, financing, approval of the company's Board of Directors, and other conditions.

Mr. Sterling Cornelius will continue to provide the leadership for his Cornelius management team, and Mr. George Wechsler will also continue to provide the leadership for his Wolfe management team. Both represent leadership, extensive talents, and proven ability to succeed in the nursery industry over many decades. Jim Estill, Calloway's President and CEO, stated, "The combination of the highly qualified nursery professionals in our three companies will yield unlimited opportunities going forward."

Cornelius Nurseries currently owns and operates four retail garden centers in the Houston market, together will a large nursery growing/wholesale division. The wholesale division operates two facilities in Houston and one in Austin. Total annual sales for the Cornelius operation are approximately $20 million.

Wolfe Nursery currently operates eight garden centers in the San Antonio market and five retail garden centers in the Austin market. Total annual sales for the Wolfe operation are also approximately $20 million.

"The planned acquisitions of Cornelius and Wolfe will place us in the top five retail markets in Texas (Dallas, Fort Worth, Houston, San Antonio and Austin) with highly respected, well known nurseries in each of those markets. Each of these markets is enjoying robust economic growth, and we will be in an excellent position to take advantage of the opportunities that represents," said Estill.

A further benefit of the planned acquisitions is that the greater geographic diversification of the combined companies will moderate Calloway's seasonal peaks. The more southern markets of Houston, San Antonio and even Austin have peak selling periods that are somewhat different than those we experience in Dallas and Fort Worth.

Estill noted that, "George Wechsler, Sterling Cornelius and I have been involved together in various industry associations over the years. Joining our businesses in transactions such as these strengthens us all and creates more opportunities than we had as separate companies. We look to the future with eager anticipation."

Calloway's Nursery, Inc. is a leading specialty retailer of lawn and garden products, with headquarters in Fort Worth, Texas. Founded in 1986, Calloway's currently operates sixteen retail stores in the Dallas/Fort Worth metroplex, as well as a nursery growing division near Tyler, Texas.

This press release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The reader is cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Calloway's Nursery, Inc., Cornelius Nurseries, and Wolfe Nursery.