Launching on the heels of our successful Valentine's Day holiday, when FTD consumer orders sent to FTD Florists grew 30%*, our new Better Homes and Gardens collection is already an exciting success. Sales volume is running well above our expectations and we are grateful for all of the positive feedback you have shared with us about the collection's performance.

Consumers have responded favorably to the new collection as it combines the power of two of America's most trusted brands. We expect that as Mother's Day approaches and our extensive marketing investment promoting this partnership takes off, more consumers will learn about FTD's exclusive arrangement with Better Homes & Gardens, accelerating sales even further for our member florists.

When securing any great brand partnership through an exclusive licensing arrangement, licensing fees are standard. They provide us with exclusive use of the Better Homes & Gardens name and image to drive sales of the collection so that everyone benefits - FTD, our member florists and our customers. Rest assured that as of May 1, these fees are already factored into each Better Homes and Gardens product suggested retail price (SRP), so that your margin dollars received for these orders is not adversely impacted, provided that you fill to order recipe. Accordingly, effective May 1, 2010, you will see a licensing fee included in your monthly Clearinghouse statement. The line item will be labeled as Better Homes & Gardens and only impacts the Better Homes & Gardens orders that are ordered and fulfilled from May 1, 2010 and thereafter.

FTD is proud to bring the Better Homes & Gardens collection to your shop in time for Mother’s Day. We are glad you share our enthusiasm for this exclusive arrangement and are looking forward to its continued success.