Florafax International Reports Fourth Quarter/Year End Results; Revenue, Operating Income At 15-Year Highs.

VERO BEACH, Fla.--(BUSINESS WIRE)--Oct. 20--Florafax International, Inc., (NASDAQ: FIIF), a leading flowers-by-wire provider, today reported their highest revenue and operating income results in 15 years for the year ended August 31, 1998.

Revenue for the year ended August 31, 1998 rose to $13,391,000, a 15 percent increase from the prior fiscal year's revenues of $11,609,000. Operating income for the year also climbed 15 percent, to $2,209,000 for fiscal 1998 from $1,918,000 for fiscal 1997. Net income for the most recent fiscal year was $1,996,000, or 23 cents per diluted share on 8,665,000 diluted shares outstanding, versus $3,433,000, or 39 cents per diluted share 8,715,000 diluted shares outstanding for the same period of the prior year.

Fourth quarter revenue rose four percent to $2,679,000 from $2,586,000 for the same period in the prior year. Operating income for the three months ended August 31, 1998 was $406,000, down four percent from fiscal 1997's operating income of $423,000. Net income for the fourth quarter was $778,000, or nine cents per diluted share, on 8,665,000 diluted shares outstanding, compared with $895,000, or 10 cents per diluted share, on 8,715,000 diluted shares outstanding for the same period in 1997. In determining net income for the last three months of fiscal 1998, the company recorded an income tax benefit of $382,000, compared with an income tax benefit of $521,000 for the same quarter in the prior year.

Andrew W. Williams, Florafax International's chairman and CEO, commented, "We are pleased to report that we have reached the goal we set this time last year: to have our after-tax income exceed the prior year's operating income. For fiscal 1997, our earnings per share included $1,041,000 from a litigation settlement. No such benefit was recorded for fiscal 1998. This fiscal year's results include an income tax expense of $339,000 versus a benefit in fiscal 1997 of $519,000. We are extremely satisfied with our financial results for fiscal 1998.

"We are cautiously optimistic that our earnings per share will grow by at least 30 percent in fiscal 1999, as a result of our acquisition of Marketing Projects Incorporated (MPI), carefully orchestrated strategic planning and current momentum. The acquisition of MPI in fiscal 1998 has strengthened our relationships with our Flower Club partners, which we anticipate will yield financial benefits that will be increasingly visible as we move further into fiscal 1999. In addition, we have several new corporate partners for fiscal 1999 that are already proving successful."

Florafax International, Inc. is principally engaged in the business of generating floral orders from consumers and providing floral placement services to retail florists. The company is also a third party processor of credit cards. -0-

                     FLORAFAX INTERNATIONAL, INC.
                   Financial Highlights (Unaudited)

                       For the Three Months Ended  For the Year Ended
                        8/31/98      8/31/97      8/31/98    8/31/97

Net Revenues           $2,679,000   $2,586,000  13,391,000  $11,609,000
Operating income          406,000      423,000   2,209,000    1,918,000
Pre-tax income (expense)  396,000      374,000   2,335,000    2,914,000
Litigation settlement         ---          ---         ---   (1,041,000)
Pre-tax income (expense)  396,000      374,000   2,335,000    1,873,000
 excluding litigation
 settlement
Income tax benefit
 (expense)                382,000      521,000    (339,000)     519,000
Net income                778,000      895,000   1,996,000    3,433,000
Earnings per share:
   Basic                     $.10         $.11        $.25        $.43
   Diluted                   $.09         $.10        $.23        $.39
Weighted average shares
 outstanding:
   Basic                 7,833,000    8,076,000   7,833,000   8,076,000
   Diluted               8,665,000    8,715,000   8,665,000   8,715,000


     When used in this report, the words "plan(s)," "intends(s),"
"expect(s)," "feel(s)," "will," "may," "believe(s)," "anticipate(s)"
and similar expressions are intended to identify forward-looking
statements. The events described in such statements are subject to
certain risks and uncertainties which could cause actual results to
differ materially from those projected. Readers are cautioned not to
place undue reliance on these forward-looking statements which speak
only as of the date hereof. The company undertakes no obligation to
republish revised forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. Readers are also urged to carefully review and
consider the various disclosures made by the company which attempt to
advise interested parties of the factors which affect the company's
business, including the disclosures made under the caption
"Management's Discussion and Analysis or Plan of Operation" in the
annual report, as well as the company's periodic reports of Form
10-KSB, 10-QSB and 8-K filed with the Securities and Exchange
Commission. The events described in such statements, and the success
of the management strategies described by those statements, are
subject to certain risks and uncertainties which could cause actual
results to differ from those discussed. Among those risks and
uncertainties which are particular to the company are: continued
consumer spending on discretionary items such as flowers and gifts,
the success of the company in maintaining relationships with its
corporate marketing partners, the success of the company in
maintaining a strong membership base, the continued use of credit
cards as a preferred method of payment by customers of members,
increased labor costs, constant competition and the health of the
retail flower industry as a whole.