PRVD Provide Commerce (MM)

Provide Commerce, Inc. (Nasdaq: PRVD), an e-commerce marketplace of websites for perishable goods, today reported record shipments for the Mother's Day shopping period defined as the seven shipping days leading up to Mother's Day, or the immediately prior Saturday to Saturday period. During the period, shipments for the Company's core consumer floral business were more than 770,000, compared to approximately 560,000 in the Mother's Day period a year ago. Commenting on the Mother's Day results, Bill Strauss, Chief Executive Officer of Provide Commerce, stated, "We are extremely pleased with our shipment growth during this Mother's Day period. We credit our record holiday results to our direct business model, our constant focus on the customer experience and our team's execution discipline. During the period, we saw strong results from our marketing efforts and took advantage of incremental marketing opportunities in online channels." Strauss added, "We are also pleased to announce that we recently added our four millionth customer to our database." Based on the year-over-year increase in the core consumer floral business' Mother's Day shipments, management is increasing its previously announced financial guidance for the fiscal year ending June 30, 2005. Management now expects net sales to be between $171.5 and $175.0 million up from between $170.0 and $172.5 million. GAAP net income is expected to be between $7.3 and $7.7 million or $0.53 and $0.56 per fully diluted share, up from between $7.2 and $7.4 million or $0.52 and $0.54 per fully diluted share. The corresponding pro forma earnings are expected to be between $10.1 and $10.5 million or $0.73 and $0.76 per fully diluted share, up from between $10.0 and $10.2 million or $0.72 and $0.74 per fully diluted share. With the exception of corresponding increases to the Company's fourth quarter net sales and earnings expectations, the other metrics of guidance for the 2005 fiscal year remain unchanged. The Company believes that the most accurate measure of year-over-year operating performance is pro forma earnings, defined as: GAAP earnings excluding stock-based compensation expense and the related tax effect. Provide Commerce does not believe the use of pro forma earnings, and the corresponding per share results, lessen the importance of comparable GAAP measures. Pro forma earnings, and its reconciliation to the nearest GAAP measure, will be included in reconciliation tables when financial results for the 2005 fiscal year are announced. About Provide Commerce, Inc. Provide Commerce(SM) operates an e-commerce marketplace of websites for perishable goods that consistently delivers fresh, high-quality products direct from the supplier to the customer at competitive prices. The Company's platform combines an online storefront, proprietary supply chain management technology and established supplier relationships to create a market platform that bypasses traditional supply chains of wholesalers, distributors and retailers. Provide Commerce launched its marketplace in 1998 to sell and deliver fresh cut flowers for everyday and special occasions such as Valentine's Day, Easter, Mother's Day, birthday and anniversary events, through its ProFlowers(R) brand and website, www.proflowers.com. Provide Commerce also offers fresh fruit and premium meat direct from the supplier through its Gourmet Food Business Unit. To date, these offerings consist of Cherry Moon Farms(SM), www.cherrymoonfarms.com, and Uptown Prime(R), www.uptownprime.com. For more information, please visit www.prvd.com. Forward-looking Statements Statements in this press release, other than historical information, may be "forward-looking" in nature within the meaning of Section 21E of the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and assumptions. These statements are based on management's current expectations, estimates and projections about Provide Commerce and its industry and include, but are not limited to, projections of net sales, GAAP net income, pro forma earnings and earnings per share growth, and the continued success of Provide Commerce's business model. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. The risks, uncertainties and assumptions that may affect Provide Commerce, its operating results and your investments, include, but are not limited to: Provide Commerce's ability to meet projected financial results, manage fluctuations in its quarterly and annual results, attain and maintain long-term customer satisfaction, manage the seasonality of its business, scale existing infrastructure expansion of its core floral business within the floral business as well as into other perishable product categories, manage challenges in customer retention and translation of perceived customer loyalty into financial results and maximize leverage in the Company's cost structure, as well as the factors disclosed in the Company's filings with the U.S. Securities and Exchange Commission, available via Provide Commerce's website at www.prvd.com. The Company undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.