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FOR IMMEDIATE RELEASE
CONTACT: Lisa A. Witek
FTD.COM
(630) 719-6174
[email protected]
FTD.COM TAKES 4TH QUARTER NON-CASH WRITE-OFF
Downers Grove, IL, July 21, 2000--FTD.COM (NASDAQ: EFTD) will take a non-cash
$4.4 million write-off associated with development work relating to its Web
site. The charge will be recorded in the fourth quarter of the Company's fiscal
year, which ended on June 30, 2000. FTD.COM remains confident that the existing
Web site architecture and processing capabilities will meet the Company's needs
for the foreseeable future.
"While this one-time non-cash write-off will affect FTD.COM's results for its
fiscal fourth quarter, it will not impact our expectations that we will be
profitable and cash-flow positive by the fourth quarter of our next fiscal
year," stated Michael Soenen, president and CEO of FTD.COM.
FTD.COM is currently in discussions with the firm engaged to develop the site to
try and resolve the situation amicably.
FTD.COM is an Internet and telephone marketer of flowers and specialty gifts.
Founded by FTD, the world's largest floral services organization, FTD.COM sells
directly to consumers through its www.FTD.COM Web site and its 1-800-SEND-FTD
telephone number. Utilizing a group of FTD florists who adhere to the highest
quality and service standards, FTD.COM provides same-day delivery of floral
orders to nearly 100 percent of the U.S. population. FTD.COM offers a wide
variety of unique floral arrangements and specialty gifts for holidays and other
occasions. Additional information about FTD.COM, including investor relations,
is available at the company's Web site, www.FTD.COM.
FORWARD-LOOKING STATEMENTS
This press release contains various "forward-looking statements" regarding
future results of operations, including expectations regarding cash flow and
profitability, Web site capabilities, and market opportunities that are based
on FTD.COM's current expectations, assumptions, estimates and projections
about the Company and its industry. Investors are cautioned that actual
results could differ from those anticipated by the forward-looking statements
as a result of the success of FTD.COM's marketing campaign; competition from
existing and potential new competitors; levels of discretionary consumer
purchases of flowers and specialty gifts; FTD.COM's ability to manage or
reduce its level of expenses; actual growth rates for the markets in which
FTD.COM competes compared with forecasted growth rates; FTD.COM's ability to
increase capacity and introduce enhancements to its Web site; and the
existence of system failures. These factors, along with other potential risks
and uncertainties, are discussed in FTD.COM's reports and other documents
filed with the Securities and Exchange Commission.
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