Dear Valued FTD Florists,

We are excited to introduce future plans about how FTD will be routing orders differently after Valentine's Day to further drive mutual benefits with our partner florists. We know that order volume and higher order values are valuable aspects of your FTD membership, and based upon recent trends, are going in the right direction.

First, here are some highlights of the positive impact from several recent order initiatives:

• We are working to send more orders to the FTD network than ever before.
  • FTD and ProFlowers florist orders have grown 25% year-over-year.
  • More than double the amount of ProFlowers.com orders are being sent to florists compared to last year.
• We are committed to sending you the most profitable orders in the industry.
  • FTD.com's average order value has grown by 5% year-over-year and is $76 - the highest in the industry.
  • All florist products on FTD.com are now defaulted to the "Best" version - an update we made to drive even more high value orders to you.
• We are focused on winning more marketing partnerships, like Legacy.com for sympathy orders, with new partner relationships forthcoming.
• We are also planning for Valentine's Day orders to increase by 50% year-over-year due to our marketing plans and continued focus on shifting more ProFlowers orders to be filled by florists.

We are encouraged by our recent progress to drive more orders and higher order values into the FTD Network, and trust many of you are seeing the benefits. Now, let's review how we plan to change order routing after Valentine's Day. Many things will remain the same, including sending orders to the highest quality florists with low order refusal rates in a market. What's different, and what we believe will be mutually beneficial, is rewarding you for your partnership with FTD. Moving forward after Valentine's Day, order routing will factor in the different types of FTD products and services you use and your commitment to maintaining your active FTD membership status.

There are many ways in which you can start to improve your opportunity to receive more orders, starting today:

• Continue to uphold your highest quality standards
• Accept as many orders as you can (limit rejects or ASKs)
• Keep your Mercury system on during peak holiday periods (e.g., Valentine's Day)
• Continuous active membership status and zero requests to terminate will be rewarded
• Purchase or upgrade your Mercury point of sale system and use our mobile delivery tools to confirm deliveries real-time
• Increase your flower purchases from the FTD Flower Exchange

We are looking forward to a New Year filled with continued growth and building a mutually beneficial partnership with you. We have many business-building initiatives on our roadmap that we believe will continue to drive higher quality orders and reaffirm our position as the best florist partner in the industry. We will share more details with you in January.

All the best!

Tom Moeller
Executive Vice President, Florist Division