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  • 8/6/2019 InvestorUpdate (1)

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    NASDAQ: FLWS

    The WorldThe Worlds Leading Florist and Gift Shops Leading Florist and Gift Shop12/14/10

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    Setting FLWS Investment ApartSetting FLWS Investment Apart

    Strong Brand Equity: Leading Florist and Gift Retailer

    Lower Capital Requirements vs. Most Other Retailers

    Proven Ability to Leverage Business Platform to Reduce OPEX

    Growing Market Share in $16B Gourmet Food and Gift Baskets

    BloomNet Wire Service: Increasing Market Penetration

    Strong Balance Sheet: Generating Cash; Low Debt Ratio

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    Business PlatformBusiness Platform

    FloralGourmet

    Food & Gift

    Baskets

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    Floral CategoryFloral Category

    Direct to Consumer

    Market Leadership

    Powerful Brand

    Deepening Customer

    Relationships

    Innovative Merchandising

    Good, Better, Best Strategy

    Expanded Gift Offering Repeat Order Rate >50%

    Same-Day, Next-Day, Any-Day

    Delivery Capabilities

    B-2-B Wire Service

    Quality & Innovation Leader

    Growing Market Penetration

    Strong Contribution Margin

    BloomNet Advantages:

    Largest Directable Order

    Volume

    Better Value Proposition for

    Florists

    Expanded Products & Services

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    Gourmet Food & Gift Baskets CategoryGourmet Food & Gift Baskets Category

    Leading Gift Brands Strategy:

    Fragmented Market >$16bn

    Multi-channel/ E-commerce focus

    Revenue Approaching $250mm

    Strong Contribution Margin

    Cross-Brand Leveraging:

    Customer Database

    Manufacturing Capabilities

    Unique Distribution

    Product Design & Sourcing

    Broaden National Recognition for Regional Brands

    Launched New Brand: 1-800-Baskets.com

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    11--800800--BASKETS.COM StrategyBASKETS.COM Strategy

    Deliver On Vision and Rationale for DesignPac Acquisition Leverage:

    1-800-FLOWERS.COM Brand Equity and Web Traffic with

    DesignPacs Low-Cost, High-Value Design & Assembly Platform. 1-800-FLOWERS.COM customers, Marketing, IT and Operational

    infrastructures to build new brand and drive gift basket sales.

    Create New Website and Build New Consumer Brand in theGourmet Food Gift Segment

    Capture Larger Share of Customers Gift Wallet

    Longer-term: Attract Entirely New Customer Base Interested inGift Baskets and Gourmet Food Gifts

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    Key Strategic PrioritiesKey Strategic Priorities

    Know and Take Care of Our Customers: Provide the right products and services with consistent,

    excellent quality and value, to help our customers send

    smiles everyday.

    Maintain our Financial Strength and Flexibility: Aggressively reduce our operating costs; Strengthen

    our balance sheet and add flexibility to our capitalstructure.

    Continue to Innovate and Invest for the Future: Invest in Technology; Invest in our Brands; and Invest

    in New Growth areas that position us for enhanced

    future results.

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    Social Networking:Social Networking: Reaching Our CustomersReaching Our Customers

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    Customer EngagementCustomer Engagement

    Customergener

    atedcontent;

    Keep-sakebookseri

    es

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    Maintain Financial Strength & FlexibilityMaintain Financial Strength & Flexibility

    Proven Operating Cost Leverage

    FY06- FY08: Reduced OPEX ratio 290 bps, or $25M

    FY09: Achieved targeted $50M in cost savings

    Continued focus on OPEX cost reduction opportunities

    Strong Balance Sheet

    Paid down ~ $70 million of long-term debt over past 24 months.

    Amended bank facility: extended term, reduced quarterly payments

    Reduced inventory and capital expense requirements

    Strong free cash flow: > $15 million from continuing operations in FY10

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    Innovate & Invest for the FutureInnovate & Invest for the Future

    DPACAward

    s2010BestEcommer

    ceMobileApp

    AndRetailInf

    oSystems201

    0BestShopping

    MobileA

    ppofTheYea

    r

    Mobile:Mobile: The Next WaveThe Next Wave

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    Historical Revenue & EBITDAHistorical Revenue & EBITDA

    $ Millions

    $800

    $600

    $400

    $200

    FY05 FY06 FY07 FY08 FY09

    $498$585

    $726$739

    $21.7

    $18.1

    $57.2 $57.1

    Revenue EBITDA

    $714

    $36.4

    $668

    $28.6

    FY10

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    TopTop-- and Bottomand Bottom--Line Growth StrategiesLine Growth Strategies

    Seek Organic Growth in Key Business Categories Grow Multi-Channel Gourmet Food & Gift Baskets Business

    Leverage Strong Brand Equity

    Increase Cross Marketing/ Merchandising

    Deepen Customer Relationships/ Interaction Increase BloomNet Wire Service Market Penetration

    New Business Development 1-800-Baskets.com; Social Commerce; Mobile Commerce

    Acquisition Opportunities Gourmet Food & Gift Baskets Category

    Provide e-Commerce Platform & Expertise

    Broaden National Recognition for Regional Brands

    Enhance Profitability Increase Gross Profit Margins

    Continue to Leverage Operating Platform

    Drive Free Cash Flow

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    Safe Harbor StatementSafe Harbor Statement

    Special Note Regarding Forward-Looking Statements

    A number of statements contained in this presentation are forward-lookingwithin 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 theapplicable statements. For a detailed description of these risk factors,please refer to the Companys Securities and Exchange Commissionfilings including the Companys Annual Reports on form 10-K and

    quarterly reports on form 10Q. The Company expressly disclaims anyintent or obligation to update any of the forward looking statementsincluded in this presentation.

    (*A Reconciliation of Net Income to EBITDA is available at the InvestorRelations section of the Companys website at www.1800flowers.com as

    part of the Companys tables attached to its quarterly filings with the SEC

    on forms 10Q and 10K as well as its quarterly results press releases.)

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    Contact:

    Joseph D. PitittoVP Investor Relations

    Phone: 1-(516)-237-6131E-mail: [email protected]

    NASDAQ: FLWS