FTD Group, Inc. Reports Second Quarter Fiscal Year 2008 Results
 

DOWNERS GROVE, IL. – January 30, 2008 –  FTD Group, Inc. (NYSE:FTD):

-- Consolidated Revenue Increased to $155.5 Million from $151.5 Million
-- Diluted EPS Grew 43% to $0.30 from $0.21
-- Increased Fiscal Year 2008 Diluted EPS Target to $1.35 from $1.23

FTD Group, Inc. (NYSE:FTD), a leading international provider of floral related products and services, today announced second quarter fiscal year 2008 financial results for the period ended December 31, 2007.

SECOND QUARTER FISCAL YEAR 2008 RESULTS

Second quarter fiscal year 2008 consolidated revenue grew $4.0 million, or 2.6%, to $155.5 million, compared to consolidated revenue of $151.5 million for the same period of fiscal year 2007. Foreign currency rate changes accounted for approximately $3.3 million of the revenue growth. Resulting net income for the second quarter of fiscal year 2008 was $9.0 million, or $0.30 per diluted share, compared to net income of $6.1 million, or $0.21 per diluted share, in the prior year quarter.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA, excluding other (income) expense, net), increased $2.5 million, or 11.8%, to $23.4 million for the second quarter of fiscal year 2008, compared to $20.9 million for the same period of the prior fiscal year.

A table reconciling net income to Adjusted EBITDA is included with the attached consolidated financial statements. The Company believes Adjusted EBITDA provides useful supplemental information related to the Company's operations and results.

Michael J. Soenen, Chairman, President and Chief Executive Officer of FTD commented, "We are pleased with our financial performance as we continue to focus on profitability and delivering EPS growth."

Domestic Consumer Segment

The Domestic Consumer Segment achieved revenue of $64.6 million in the second quarter of fiscal year 2008, compared to revenue of $69.5 million in the same period of fiscal year 2007, representing a 7.0% decline. Second quarter operating income in the Domestic Consumer Segment was $6.1 million, or 9.5% of Domestic Consumer Segment revenue, compared to $3.8 million in the prior year quarter, or 5.4% of Domestic Consumer Segment revenue. Operating margin during the period increased due to more efficient marketing spend as well as reduced general and administrative costs.

Domestic Consumer orders during the second quarter of fiscal year 2008 totaled 998,000 compared to 1,136,000 orders in the same period of fiscal year 2007. Average order value increased to $63.23 in the current quarter from $60.01 in the prior year's quarter.

Domestic Florist Segment

The Domestic Florist Segment achieved revenue of $44.6 million in the second quarter of fiscal year 2008, consistent with the $44.6 million of revenue achieved in the same period of the prior fiscal year. Second quarter fiscal year 2008 operating income for the Domestic Florist Segment was $14.1 million, or 31.5% of Domestic Florist Segment revenue, compared to $14.4 million in the prior year quarter, or 32.3% of Domestic Florist Segment revenue. This slight decline is related to a change in product mix during the quarter.

International Segment

For the second quarter of fiscal year 2008, the International Segment, primarily comprised of the Interflora U.K. business, achieved revenue of $46.3 million compared to revenue of $37.5 million in the second quarter of the prior fiscal year, representing a 23.4% increase. This increase includes $3.3 million, or 7.8%, related to favorable foreign currency movement between the U.S. dollar and the pound sterling. The International Segment achieved operating income of $4.1 million, or 8.8% of revenue, in the second quarter of fiscal year 2008 compared to $2.7 million, or 7.2% of revenue, in the second quarter of fiscal year 2007.

The International Segment continues to experience strong demand as consumer order volume totaled 542,000 for the second quarter of fiscal year 2008, compared to 473,000 orders in the same period of the prior fiscal year. Average order value in the International Segment was $69.66 in the current quarter, an 8.7% increase, primarily attributable to favorable foreign currency movement, compared to $64.07 for the same period of the prior fiscal year. Internet orders increased to 71.8% in the current quarter, from 69.3% for the same period of fiscal year 2007.

BALANCE SHEET AND OTHER HIGHLIGHTS

As of December 31, 2007, the Company's cash and cash equivalents totaled $27.5 million. The Company's debt balance totaled $302.0 million, including notes payable of $1.7 million related to the Interflora U.K. acquisition, compared to total debt of $313.4 million as of September 30, 2007. As of December 31, 2007, the Company had $72.0 million available under its revolving credit facility.

In addition to the $11.4 million debt repayment made during the second quarter of fiscal year 2008, the Company paid a quarterly cash dividend of $0.1625 per share on January 7, 2008 to shareholders of record on December 24, 2007, in an amount totaling $4.8 million.

OUTLOOK

"As we look to the second half of our fiscal year, Valentine's Day, U.K. Mother's Day and Easter all fall during the fiscal third quarter this year and Mother's Day in the U.S. occurs in the fiscal fourth quarter. We believe we are well positioned for the remainder of the fiscal year, and are reconfirming our revenue and Adjusted EBITDA targets for the year and increasing our annual EPS target," concluded Soenen.

For fiscal year 2008, the Company is reaffirming, without change, its previously announced annual revenue target of approximately $645 million and targeted Adjusted EBITDA of approximately $98 million (as adjusted for items that management does not consider reflective of core operations), with targeted annual Adjusted EBITDA as a percentage of revenue of approximately 15%. The Company's targeted Adjusted EBITDA includes approximately $4 million of expense related to stock compensation associated with Statement of Financial Accounting Standards No. 123(R) and a deferred compensation plan at Interflora U.K. The Company is increasing its targeted net income for the fiscal year to $40 million, or $1.35 per diluted share, from $37.1 million, or $1.23 per diluted share. The above targets are only estimates, which may be exceeded or alternatively may not be achieved.

CONFERENCE CALL

A conference call has been scheduled for January 30, 2008 at 11:00 a.m., ET, to review results for the second quarter of fiscal year 2008. To listen to the call over the Internet, go to the investor relations portion of the Company's Web site, www.ftd.com. Please allow at least 15 minutes to register, download and install any necessary audio software. To listen to the call by phone, dial (866) 616-5574 for North American callers or (706) 634-6652 for International callers; mention Conference ID #21372777. A replay of the conference call will be available through February 13, 2008 beginning one hour after the completion of the live call by phone at (800) 633-8284 for North American callers or (402) 977-9140 for International callers and on the Web at www.ftd.com. The conference call contains time-sensitive information that is accurate only as of January 30, 2008, the date of the live broadcast. The call is the property of FTD Group, Inc. Any redistribution, retransmission or rebroadcast of the conference call in any form without the express written consent of FTD Group, Inc. is strictly prohibited.

ABOUT FTD GROUP, INC.

FTD Group, Inc. is a leading provider of floral related products and services to consumers and retail florists, as well as other retail locations offering floral products, in the U.S., Canada, the U.K. and the Republic of Ireland. The business utilizes the highly recognized FTD and Interflora brands, both supported by the Mercury Man logo, which is displayed in approximately 45,000 floral shops worldwide. The consumer businesses operate primarily through the www.ftd.com Web site in the U.S. and Canada and the www.interflora.co.uk Web site in the U.K. and are complemented by the florist businesses which provide products and services to the Company's independent members.

FORWARD-LOOKING STATEMENTS

This press release contains various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements may include statements regarding the Company's outlook, anticipated revenue growth and profitability; anticipated benefits of its acquisition of Interflora Holdings Limited ("Interflora U.K."), anticipated benefits of investments in new products, programs and offerings and opportunities and trends within both the domestic and international floral businesses, including opportunities to expand these businesses and capitalize on growth opportunities or increase penetration of service offerings. The international business reflects the operations of Interflora U.K. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the Company's industry. Investors are cautioned that actual results could differ from those contained in any forward-looking statements as a result of: the Company's ability to acquire and retain FTD and Interflora U.K. members and continued recognition by members of the value of the Company's products and services; the acceptance by members of new or modified service offerings recently introduced; the Company's ability to sell additional products and services to FTD and Interflora U.K. members; the Company's ability to expand existing marketing partnerships and secure new marketing partners within the domestic and international consumer businesses; the success of the Company's marketing campaigns; the ability to retain customers and maintain average order value within the domestic and international consumer businesses; the ability to manage foreign currency exchange rate risk; the Company's performance during key holiday selling seasons such as Christmas, Valentine's Day and Mother's Day; the existence of failures in the Company's computer systems; competition from existing and potential new competitors; levels of discretionary consumer purchases of flowers and specialty gifts; the Company's ability to manage or reduce its level of expenses within both the domestic and international businesses; actual growth rates for the markets in which the Company competes compared with forecasted growth rates; the Company's ability to increase capacity and introduce enhancements to its Web sites; and the Company's ability to integrate Interflora U.K. and additional partners or acquisitions, if any are identified. These factors, along with other potential risks and uncertainties, are discussed in the Company's reports and other documents filed with the Securities and Exchange Commission. The Company expressly disclaims any obligation to update its forward-looking statements.

Financial statements follow...



                                              FTD GROUP, INC.
                        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                             (Unaudited)
                                           (In thousands)

                            Three Months Ended     Six Months Ended
                               December 31,          December 31,
                           --------------------- ---------------------
                              2007       2006       2007       2006
                           ---------- ---------- ---------- ----------

Revenues:
   Consumer segment        $  64,634  $  69,475  $ 110,354  $ 116,868
   Florist segment            44,601     44,578     87,422     88,399
   International segment      46,254     37,487     81,458     55,044
                           ---------- ---------- ---------- ----------
      Total revenues         155,489    151,540    279,234    260,311

Costs of goods sold and
 services provided:
   Consumer segment           45,530     50,040     77,449     83,487
   Florist segment            14,146     13,064     29,328     27,528
   International segment      31,811     25,716     55,400     37,712
   Corporate                     474        498        953      1,014
                           ---------- ---------- ---------- ----------
      Total costs of goods
       sold and services
       provided               91,961     89,318    163,130    149,741

Gross profit:
   Consumer segment           19,104     19,435     32,905     33,381
   Florist segment            30,455     31,514     58,094     60,871
   International segment      14,443     11,771     26,058     17,332
   Corporate                    (474)      (498)      (953)    (1,014)
                           ---------- ---------- ---------- ----------
      Total gross profit      63,528     62,222    116,104    110,570

Advertising and selling:
   Consumer segment            7,470      8,855     12,234     13,741
   Florist segment            11,215     12,774     20,363     23,249
   International segment       4,251      3,226      6,991      4,429
                           ---------- ---------- ---------- ----------
      Total advertising and
       selling                22,936     24,855     39,588     41,419

General and administrative:
   Consumer segment            4,473      5,747      8,878     10,225
   Florist segment             2,179      2,031      4,278      4,296
   International segment       6,103      5,843     11,979      9,002
   Corporate                   7,677      6,733     14,368     13,241
                           ---------- ---------- ---------- ----------
      Total general and
       administrative         20,432     20,354     39,503     36,764

Operating income (loss)
 before corporate
 allocations:
   Consumer segment            7,161      4,833     11,793      9,415
   Florist segment            17,061     16,709     33,453     33,326
   International segment       4,089      2,702      7,088      3,901
   Corporate                  (8,151)    (7,231)   (15,321)   (14,255)
                           ---------- ---------- ---------- ----------
      Total operating
       income before
       corporate
       allocations            20,160     17,013     37,013     32,387
                           ---------- ---------- ---------- ----------

Corporate Allocations:
   Consumer segment            1,042      1,053      2,028      1,870
   Florist segment             2,991      2,331      5,560      4,723
   International segment           -          -          -          -
   Corporate                  (4,033)    (3,384)    (7,588)    (6,593)
                           ---------- ---------- ---------- ----------
      Total corporate
       allocations                 -          -          -          -

Income (loss) from
 operations:
   Consumer segment            6,119      3,780      9,765      7,545
   Florist segment            14,070     14,378     27,893     28,603
   International segment       4,089      2,702      7,088      3,901
   Corporate                  (4,118)    (3,847)    (7,733)    (7,662)
                           ---------- ---------- ---------- ----------
      Total income from
       operations             20,160     17,013     37,013     32,387
                           ---------- ---------- ---------- ----------

Other income and expenses:
   Interest income              (319)      (339)      (621)      (637)
   Interest expense            6,155      7,009     12,542     15,235
   Other (income) expense,
    net                         (138)       249       (348)    (1,295)
                           ---------- ---------- ---------- ----------

      Total other income
       and expenses            5,698      6,919     11,573     13,303
                           ---------- ---------- ---------- ----------

      Income before income
       tax                    14,462     10,094     25,440     19,084

Income tax expense             5,496      3,987      8,318      7,534
                           ---------- ---------- ---------- ----------

      Net income           $   8,966  $   6,107  $  17,122  $  11,550
                           ========== ========== ========== ==========

Net income per common share
 - basic                   $    0.30  $    0.22  $    0.58  $    0.41
                           ========== ========== ========== ==========
Net income per common share
 - diluted                 $    0.30  $    0.21  $    0.58  $    0.39
                           ========== ========== ========== ==========

Weighted average common
 shares outstanding - basic   29,509     28,335     29,287     28,283
                           ========== ========== ========== ==========
Weighted average common
 shares outstanding -
 diluted                      29,758     29,762     29,653     29,479
                           ========== ========== ========== ==========

                           FTD GROUP, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)

                ASSETS                 December 31, 2007 June 30, 2007
-------------------------------------- ----------------- -------------
Current Assets:                           (Unaudited)
   Cash and cash equivalents             $       27,548   $    25,462
   Accounts receivable, less allowance
    for doubtful accounts of $6,329 at
    December 31, 2007 and $5,431 at
    June 30, 2007                                41,071        32,416
   Inventories, net                               5,802         3,694
   Other current assets                          14,253         9,500
                                       ----------------- -------------
      Total current assets                       88,674        71,072

Property and equipment:
   Property and equipment                        37,082        35,791
   Less accumulated depreciation                 13,257        11,018
                                       ----------------- -------------
      Property and equipment, net                23,825        24,773

Other assets:
   Computer software, net                        12,441        12,699
   Other noncurrent assets                       23,038        21,085
   Other intangible assets, less
    accumulated amortization of
    $10,757 at December 31, 2007 and
    $9,154 at June 30, 2007                      11,848        13,454
   Trademarks                                   187,598       187,816
   Goodwill                                     417,734       418,001
                                       ----------------- -------------
      Total other assets                        652,659       653,055
                                       ----------------- -------------
      Total assets                       $      765,158   $   748,900
                                       ================= =============

 LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------

Current liabilities:
   Accounts payable                      $       64,473   $    52,009
   Other accrued liabilities                     37,858        28,511
   Current maturities of long-term
    debt                                          1,318         8,475
   Dividends payable                              4,843         4,707
                                       ----------------- -------------
      Total current liabilities                 108,492        93,702

Senior secured credit facility                  128,832       133,418
Senior subordinated notes                       170,117       170,117
Post-retirement benefits, accrued
 pension obligations and other
 liabilities                                      3,509         4,535
Deferred income taxes                            78,666        85,350

Stockholders' equity:
   Common stock: $0.01 par value,
    75,000 shares authorized; 29,818
    shares issued as of December 31,
    2007 and 29,482 shares issued as
    of June 30, 2007                                298           295
   Additional paid-in capital                   236,577       235,589
   Retained earnings                             29,159        20,952
   Accumulated other comprehensive
    income                                        9,706         9,933
   Treasury stock, at cost, 20 shares
    as of December 31, 2007 and 519
    shares as of June 30, 2007                     (198)       (4,991)
                                       ----------------- -------------
      Total stockholders' equity                275,542       261,778
                                       ----------------- -------------
      Total liabilities and
       stockholders' equity              $      765,158   $   748,900
                                       ================= =============

                           FTD GROUP, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Unaudited)
                            (In thousands)

                                                   Six Months Ended
                                                     December 31,
                                                 ---------------------

                                                    2007       2006
                                                 ---------- ----------

Cash flows from operating activities:
   Net income                                    $  17,122  $  11,550
   Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization                  6,419      7,201
      Stock-based compensation expense               1,314        959
      Amortization and write-off of deferred
       financing costs                                 470      2,294
      Provision for doubtful accounts                1,862      1,481
      Deferred income taxes                         (6,575)       753
      Excess tax benefit from stock-based
       compensation                                 (2,308)      (654)
      (Decrease) increase due to changes in
       operating assets and liabilities, net of
       acquisition:
         Accounts receivable                       (10,499)    (9,072)
         Inventories                                (2,112)    (1,531)
         Prepaid expenses and other                 (4,102)    (6,052)
         Other noncurrent assets                    (2,550)    (1,133)
         Accounts payable                           11,753     12,373
         Other accrued liabilities                  11,432        794
                                                 ---------- ----------

                   Net cash provided by
                    operating activities            22,226     18,963
                                                 ---------- ----------

Cash flows from investing activities:
   Capital expenditures                             (3,622)    (4,849)
   Acquisition of business, net of cash acquired         -    (96,717)
                                                 ---------- ----------

                   Net cash used in investing
                    activities                      (3,622)  (101,566)
                                                 ---------- ----------

Cash flows from financing activities:
   Repayments of long-term debt                    (11,743)   (50,375)
   Dividends paid                                   (9,515)         -
   Proceeds from exercise of stock options           2,156        422
   Excess tax benefit from stock-based
    compensation                                     2,308        654
   Proceeds from issuance of long-term debt, net
    of financing costs                                   -    148,536
   Proceeds from issuance of common stock                6          -
                                                 ---------------------

                   Net cash (used in) provided
                    by financing activities        (16,788)    99,237
                                                 ---------- ----------

   Effect of foreign exchange rate changes on
    cash                                               270      3,172
                                                 ---------- ----------

Net increase in cash and cash equivalents            2,086     19,806

Cash and cash equivalents at beginning of period    25,462     10,954
                                                 ---------- ----------

Cash and cash equivalents at end of period       $  27,548  $  30,760
                                                 ========== ==========

                           FTD GROUP, INC.
                         SEGMENT INFORMATION
                             (Unaudited)
                            (In thousands)

                 Three Months Ended           Three Months Ended
                  December 31, 2007            December 31, 2006
             ---------------------------- ----------------------------
               Gross    Elimi-  Consoli-    Gross    Elimi-  Consoli-
              Segment  nations    dated    Segment  nations    dated
             --------- -------- --------- --------- -------- ---------

Revenues:
Consumer
 segment     $ 67,441  $(2,807) $ 64,634  $ 72,551  $(3,076) $ 69,475
Florist
 segment       44,727     (126)   44,601    44,701     (123)   44,578
International
 segment       46,137      117    46,254    37,422       65    37,487
             --------- -------- --------- --------- -------- ---------
     Total    158,305   (2,816)  155,489   154,674   (3,134)  151,540
             --------- -------- --------- --------- -------- ---------

Costs of
 Goods Sold
 and Services
 Provided:
Consumer
 segment       45,656     (126)   45,530    50,163     (123)   50,040
Florist
 segment       14,146        -    14,146    13,064        -    13,064
International
 segment       31,852      (41)   31,811    25,740      (24)   25,716
Corporate         474        -       474       498        -       498
             --------- -------- --------- --------- -------- ---------
     Total     92,128     (167)   91,961    89,465     (147)   89,318
             --------- -------- --------- --------- -------- ---------

Gross Profit:
Consumer
 segment       21,785   (2,681)   19,104    22,388   (2,953)   19,435
Florist
 segment       30,581     (126)   30,455    31,637     (123)   31,514
International
 segment       14,285      158    14,443    11,682       89    11,771
Corporate        (474)       -      (474)     (498)       -      (498)
             --------- -------- --------- --------- -------- ---------
     Total     66,177   (2,649)   63,528    65,209   (2,987)   62,222
             --------- -------- --------- --------- -------- ---------

Advertising
 and Selling:
Consumer
 segment        7,470        -     7,470     8,855        -     8,855
Florist
 segment       14,022   (2,807)   11,215    15,850   (3,076)   12,774
International
 segment        4,234       17     4,251     3,296      (70)    3,226
             --------- -------- --------- --------- -------- ---------
     Total     25,726   (2,790)   22,936    28,001   (3,146)   24,855
             --------- -------- --------- --------- -------- ---------

General and
 Administrative:
Consumer
 segment        4,473        -     4,473     5,747        -     5,747
Florist
 segment        2,179        -     2,179     2,031        -     2,031
International
 segment        6,110       (7)    6,103     5,722      121     5,843
Corporate       7,677        -     7,677     6,733        -     6,733
             --------- -------- --------- --------- -------- ---------
     Total     20,439       (7)   20,432    20,233      121    20,354
             --------- -------- --------- --------- -------- ---------

Operating
 Income
 (Loss)
 before
 Corporate
 Allocations:
Consumer
 segment        9,842   (2,681)    7,161     7,786   (2,953)    4,833
Florist
 segment       14,380    2,681    17,061    13,756    2,953    16,709
International
 segment        3,941      148     4,089     2,664       38     2,702
Corporate      (8,151)       -    (8,151)   (7,231)       -    (7,231)
             --------- -------- --------- --------- -------- ---------
     Total     20,012      148    20,160    16,975       38    17,013
             --------- -------- --------- --------- -------- ---------

Corporate
 Allocations:
Consumer
 segment        1,042        -     1,042     1,053        -     1,053
Florist
 segment        2,991        -     2,991     2,331        -     2,331
International
 segment            -        -         -         -        -         -
Corporate      (4,033)       -    (4,033)   (3,384)       -    (3,384)
             --------- -------- --------- --------- -------- ---------
     Total          -        -         -         -        -         -
             --------- -------- --------- --------- -------- ---------

Operating
 Income
 (Loss):
Consumer
 segment        8,800   (2,681)    6,119     6,733   (2,953)    3,780
Florist
 segment       11,389    2,681    14,070    11,425    2,953    14,378
International
 segment        3,941      148     4,089     2,664       38     2,702
Corporate      (4,118)       -    (4,118)   (3,847)       -    (3,847)
             --------- -------- --------- --------- -------- ---------
     Total   $ 20,012  $   148  $ 20,160  $ 16,975  $    38  $ 17,013
             ========= ======== ========= ========= ======== =========

Depreciation and
 Amortization:
Consumer
 segment     $    862  $     -  $    862  $    993  $     -  $    993
Florist
 segment          644        -       644       797        -       797
International
 segment        1,037        -     1,037     1,129        -     1,129
Corporate         655        -       655       966        -       966
             --------- -------- --------- --------- -------- ---------
     Total   $  3,198  $     -  $  3,198  $  3,885  $     -  $  3,885
             ========= ======== ========= ========= ======== =========

                           FTD GROUP, INC.
                         SEGMENT INFORMATION
                             (Unaudited)
                            (In thousands)

                  Six Months Ended             Six Months Ended
                  December 31, 2007            December 31, 2006
             ---------------------------- ----------------------------
               Gross    Elimi-  Consoli-    Gross    Elimi-  Consoli-
              Segment  nations    dated    Segment  nations    dated
             --------- -------- --------- --------- -------- ---------

Revenues:
Consumer
 segment     $115,377  $(5,023) $110,354  $122,193  $(5,325) $116,868
Florist
 segment       87,652     (230)   87,422    88,613     (214)   88,399
International
 segment       81,257      201    81,458    54,946       98    55,044
             --------- -------- --------- --------- -------- ---------
     Total    284,286   (5,052)  279,234   265,752   (5,441)  260,311
             --------- -------- --------- --------- -------- ---------

Costs of
 Goods Sold
 and Services
 Provided:
Consumer
 segment       77,679     (230)   77,449    83,701     (214)   83,487
Florist
 segment       29,328        -    29,328    27,528        -    27,528
International
 segment       55,468      (68)   55,400    37,752      (40)   37,712
Corporate         953        -       953     1,014        -     1,014
             --------- -------- --------- --------- -------- ---------
     Total    163,428     (298)  163,130   149,995     (254)  149,741
             --------- -------- --------- --------- -------- ---------

Gross Profit:
Consumer
 segment       37,698   (4,793)   32,905    38,492   (5,111)   33,381
Florist
 segment       58,324     (230)   58,094    61,085     (214)   60,871
International
 segment       25,789      269    26,058    17,194      138    17,332
Corporate        (953)       -      (953)   (1,014)       -    (1,014)
             --------- -------- --------- --------- -------- ---------
     Total    120,858   (4,754)  116,104   115,757   (5,187)  110,570
             --------- -------- --------- --------- -------- ---------

Advertising
 and Selling:
Consumer
 segment       12,234        -    12,234    13,741        -    13,741
Florist
 segment       25,386   (5,023)   20,363    28,574   (5,325)   23,249
International
 segment        6,956       35     6,991     4,542     (113)    4,429
             --------- -------- --------- --------- -------- ---------
     Total     44,576   (4,988)   39,588    46,857   (5,438)   41,419
             --------- -------- --------- --------- -------- ---------

General and
 Administrative:
Consumer
 segment        8,878        -     8,878    10,225        -    10,225
Florist
 segment        4,278        -     4,278     4,296        -     4,296
International
 segment       11,947       32    11,979     8,745      257     9,002
Corporate      14,368        -    14,368    13,241        -    13,241
             --------- -------- --------- --------- -------- ---------
     Total     39,471       32    39,503    36,507      257    36,764
             --------- -------- --------- --------- -------- ---------

Operating
 Income
 (Loss)
 before
 Corporate
 Allocations:
Consumer
 segment       16,586   (4,793)   11,793    14,526   (5,111)    9,415
Florist
 segment       28,660    4,793    33,453    28,215    5,111    33,326
International
 segment        6,886      202     7,088     3,907       (6)    3,901
Corporate     (15,321)       -   (15,321)  (14,255)       -   (14,255)
             --------- -------- --------- --------- -------- ---------
     Total     36,811      202    37,013    32,393       (6)   32,387
             --------- -------- --------- --------- -------- ---------

Corporate
 Allocations:
Consumer
 segment        2,028        -     2,028     1,870        -     1,870
Florist
 segment        5,560        -     5,560     4,723        -     4,723
International
 segment            -        -         -         -        -         -
Corporate      (7,588)       -    (7,588)   (6,593)       -    (6,593)
             --------- -------- --------- --------- -------- ---------
     Total          -        -         -         -        -         -
             --------- -------- --------- --------- -------- ---------

Operating
 Income
 (Loss):
Consumer
 segment       14,558   (4,793)    9,765    12,656   (5,111)    7,545
Florist
 segment       23,100    4,793    27,893    23,492    5,111    28,603
International
 segment        6,886      202     7,088     3,907       (6)    3,901
Corporate      (7,733)       -    (7,733)   (7,662)       -    (7,662)
             --------- -------- --------- --------- -------- ---------
     Total   $ 36,811  $   202  $ 37,013  $ 32,393  $    (6) $ 32,387
             ========= ======== ========= ========= ======== =========

Depreciation and
 Amortization:
Consumer
 segment     $  1,768  $     -  $  1,768  $  1,933  $     -  $  1,933
Florist
 segment        1,310        -     1,310     1,631        -     1,631
International
 segment        2,031        -     2,031     1,705        -     1,705
Corporate       1,310        -     1,310     1,932        -     1,932
             --------- -------- --------- --------- -------- ---------
     Total   $  6,419  $     -  $  6,419  $  7,201  $     -  $  7,201
             ========= ======== ========= ========= ======== =========

                           FTD GROUP, INC.
                     NON-GAAP FINANCIAL MEASURES
                      EBITDA and Targeted EBITDA
                             (Unaudited)
                            (In thousands)

Reconciliation of certain financial measures reported in accordance
 with Generally Accepted Accounting Principles ("GAAP") to those
 presented on the basis of methodologies other than in accordance with
 GAAP ("non-GAAP").

The Company defines EBITDA as net income before net interest expense,
 income tax expense, depreciation and amortization. The Company
 defines Adjusted EBITDA as EBITDA plus expenses and minus income
 items that are not considered reflective of the Company's core
 operations. For the period ended December 31, 2007, the only item not
 considered part of the Company's core operations was other (income)
 expense, net, which was not significant. EBITDA and Adjusted EBITDA
 are calculated as follows for the periods presented:

                             Three Months Ended    Six Months Ended
                                December 31,         December 31,
                            -------------------- ---------------------
                               2007      2006       2007       2006
                            ---------- --------- ---------- ----------

   Net income, as reported
    (GAAP basis)            $   8,966  $   6,107 $  17,122  $  11,550
   plus: Interest expense,
    net                         5,836      6,670    11,921     14,598
   plus: Depreciation and
    amortization                3,198      3,885     6,419      7,201
   plus: Income tax expense     5,496      3,987     8,318      7,534
                            ---------- --------- ---------- ----------
   EBITDA (1)                  23,496     20,649    43,780     40,883
   Other (income) expense,
    net                          (138)       249      (348)    (1,295)
                            ---------- --------- ---------- ----------
   Adjusted EBITDA (1)      $  23,358  $  20,898 $  43,432  $  39,588
                            ========== ========= ========== ==========

Targeted Adjusted EBITDA is calculated below for the year ending June
 30, 2008. The other (income) expense, net presented below reflects
 the Company's actual other (income) expense, net for the six-month
 period ended December 31, 2007. The Company is not projecting any
 additional other (income) expense, net for the year ending June 30,
 2008. Targeted EBITDA includes approximately $4 million of expense
 related to stock compensation associated with SFAS No. 123(R) and a
 deferred compensation plan related to Interflora.

                            Forecasted
                             Targets
                               Year
                              Ending
                             June 30,
                               2008
                            ----------

   Net income (GAAP basis)  $  40,200
   plus: Interest expense,
    net                        22,650
   plus: Depreciation and
    amortization               13,100
   plus: Income tax expense    22,400
                            ----------
   EBITDA (1)               $  98,350
                            ==========
   less: Other (income)
    expense, net                 (348)
                            ----------
   Adjusted EBITDA (1)      $  98,002
                            ==========

(1)The Company uses EBITDA and Adjusted EBITDA as supplemental
    measures of performance. The Company presents Adjusted EBITDA
    because it considers it an important supplemental measure of
    performance, as it is used as a performance measure under the
    senior credit facility entered into in connection with the
    acquisition of Interflora Holdings Limited, the indenture
    governing the Notes and the Company's executive compensation plan.
    The adjustment made in the calculation of Adjusted EBITDA, as
    described above, is an adjustment that would be made in
    calculating the Company's performance for purposes of coverage
    ratios under the senior credit facility and the indenture
    governing the Notes, and the Company's executive compensation plan
    bases incentive compensation payments in significant part on the
    Company's performance measured using Adjusted EBITDA as presented
    above. Measures similar to EBITDA and Adjusted EBITDA are also
    widely used by the Company and by others in the Company's industry
    to evaluate and price potential acquisition candidates.

   The Company believes EBITDA and Adjusted EBITDA facilitate
    operating performance comparisons from period to period and
    company to company by backing out potential differences caused by
    variations in capital structure (affecting relative interest
    expense), tax positions (such as the impact on periods or
    companies of changes in effective tax rates or net operating
    losses), the age and book depreciation of facilities and equipment
    (affecting relative depreciation expense), other (income) expense,
    net (including foreign currency transactions) and other expenses
    or income items that are not considered reflective of the
    Company's core operations. The Company also presents EBITDA and
    Adjusted EBITDA because it believes they are frequently used by
    investors and other interested parties in the evaluation of high
    yield issuers, many of which present EBITDA and/or Adjusted EBITDA
    when reporting their results.

   EBITDA and Adjusted EBITDA have limitations as analytical tools,
    and should not be considered in isolation, or as a substitute for
    analysis of the Company's results as reported under GAAP. Some of
    the limitations of EBITDA and Adjusted EBITDA are that they do not
    reflect the Company's cash expenditures for capital expenditures,
    they do not reflect the significant interest expense or the cash
    requirements necessary to service interest or principal payments
    on the Company's debt, they do not reflect changes in, or cash
    requirements for, the Company's working capital requirements, they
    do not reflect other expenses or gains excluded above and other
    companies in the Company's industry may calculate these measures
    differently than presented above. The Company compensates for
    these limitations by relying primarily on GAAP results and using
    EBITDA and Adjusted EBITDA only supplementally.

###

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