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Industry Leader Teleflora Acquires Stems & Bunches and Secures Proprietary Grower Relationships

Local Florists & Wholesalers Gain Significant Advantage

LOS ANGELES (May 24, 2005) – Teleflora, the world’s leading floral services and product company, announced today that it has acquired leading-flower ordering software company Stems and Bunches, and unveiled its plans to leverage new proprietary grower relationships to benefit local florists and wholesalers nationwide. This new initiative will deliver cost savings to florists and provide the freshest flowers available.

The acquisition was made as part of Teleflora’s ongoing growth strategy, and is a critical step in helping the industry overall, particularly local florists. Worcester, Massachusetts-based Stems and Bunches will be available to all Teleflora member florists free of charge. This proprietary tool gives florists direct access to the freshest and highest quality flowers, an expanded selection of flowers and prices traditionally not available to neighborhood flower shops. Product rollout is expected for later this year.

Teleflora’s new program embraces the entire industry value chain, partnering with all key players including wholesalers and growers. Teleflora has partnered with the best growers in the world and continues to work closely with the Wholesale Florists & Florists Supplier Association, of which Stems and Bunches has been a member for years. This move is intended to help strengthen and preserve the health of the industry overall. Unlike the company’s competition, including those who now offer non-floral gift options, Teleflora is committed to just flowers and just the floral industry.

This move further cements Teleflora’s technology and industry leadership position. Teleflora continues to be the only major industry player that drives 100% of its orders through local florists. The company has in the past, and will continue to in the future, seek out ways to protect and promote local florists and ensure their business remains robust and competitive.

About Teleflora

Teleflora is the world’s leading floral service and products company. Headquartered in Los Angeles, California, Teleflora has approximately 25,000 member florists throughout the U.S. and Canada, with an additional 20,000 affiliated florists outside North America. Teleflora offers industry-leading floral arrangements and gifts, technology, marketing and education services. Through its extensive member florists’ network, Web sites including www.teleflora.com and www.findaflorist.com, and its toll-free line 1-800-TELEFLORA, the company offers consumers fast, convenient and high-quality flowers and keepsake products.

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