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

-- Consolidated Revenue Increased to $123.7 Million from $108.8 Million


-- Fully Diluted EPS Grew to $0.28 (Including $0.05 from a Change in the U.K. Statutory Tax Rate) from $0.18


DOWNERS GROVE, IL. – November 9, 2007 – FTD Group, Inc. (NYSE:FTD), a leading global provider of floral related products and services, today announced first quarter fiscal year 2008 financial results for the period ended September 30, 2007.

FIRST QUARTER FISCAL YEAR 2008 RESULTS
First quarter fiscal year 2008 consolidated revenue grew $14.9 million, or 13.8%, to $123.7 million, compared to revenue of $108.8 million for the same period of fiscal year 2007. Resulting net income
for the first quarter of fiscal year 2008 was $8.2 million, or $0.28 per diluted share, compared to net income of $5.4 million, or $0.18 per diluted share, in the prior year quarter. The current year period
includes the benefit of an enacted tax rate change in the U.K., which resulted in a $0.05 EPS benefit.

Earnings before interest, taxes, depreciation and amortization ("EBITDA"), excluding other income, increased $1.4 million, or 7.4%, to $20.1 million for the first quarter of fiscal year 2008, compared to $18.7 million for the same period of the prior fiscal year. Other income primarily consists of net foreign currency gains.

The first quarter of fiscal year 2007 included two months of results for the Company's International segment, as a result of its acquisition of the Interflora U.K. business on July 31, 2006.

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

"We are pleased with our first quarter performance," said Michael J. Soenen, President and Chief Executive Officer of FTD. "We were able to effectively manage revenue performance and marketing expenses across our domestic and international businesses resulting in EPS growth of 56% vs. the prior year, which includes $0.05 in the current fiscal year related to a tax rate change in the U.K. Excluding the benefit of the tax rate change, EPS grew 25% vs. the prior year."

Domestic Consumer Segment
The Domestic Consumer Segment achieved revenue of $45.7 million in the first quarter of fiscal year 2008, compared to revenue of $47.4 million in the same period of fiscal year 2007, representing a 3.5% decrease. The decline in revenue was driven by an 8.4% decrease in order volume, which was partially offset by a 4.7% increase in average order value during the quarter. First quarter operating income in the Domestic Consumer Segment was $3.6 million, or 8.0% of Domestic
Consumer Segment revenue, compared to $3.8 million in the prior year quarter, or 7.9% of Domestic Consumer Segment revenue. Operating margin during the period remained stable due to management's focus on profitability.

Domestic Consumer orders during the first quarter of fiscal year 2008 totaled 703,000 compared to 768,000 orders in the same period of fiscal year 2007. Average order value increased to $63.36 in the
current quarter from $60.52 in the prior year's quarter. The percentage of Internet orders increased slightly to 89.4% from 88.1% in the first quarter of fiscal year 2007.

Domestic Florist Segment
The Domestic Florist Segment achieved revenue of $42.8 million in the first quarter of fiscal year 2008, compared to revenue of $43.8 million in the same period of the prior fiscal year. The decline in
Florist Segment revenue was driven by a decrease in clearinghouse order volumes and other services. First quarter fiscal year 2008 operating income for the Domestic Florist Segment was $13.8 million,
or 32.3% of Domestic Florist Segment revenue, compared to $14.2 million in the prior year quarter, or 32.5% of Domestic Florist Segment revenue. Despite a modest decline in revenue, margins remained
relatively stable in the current year.

International Segment
For the first quarter of fiscal year 2008, the International Segment, primarily comprised of the Interflora U.K. business, achieved revenue of $35.2 million compared to revenue of $17.6 million in the
first quarter of the prior fiscal year. The first quarter of the prior fiscal year includes only two months of financial results for Interflora U.K., due to the timing of the acquisition. The International Segment achieved operating income of $3.0 million, or 8.5% of revenue in the first quarter of fiscal year 2008 compared to $1.2 million, or 6.8% of revenue in the first quarter of fiscal year 2007.

The International Segment continues to experience strong demand as the consumer order volume totaled 407,000 for the first quarter of fiscal year 2008, compared to 229,000 orders in the two-month period of the prior fiscal year (fiscal year 2008 first quarter order volume represents an increase of 9.1% over Interflora U.K.'s order volume for a like three-month period of the prior year). Average order value in the International Segment was $70.12 in the current quarter, compared
to $62.84 for the two-month period of the prior fiscal year. Internet orders increased to 71.7% in the current quarter, from 69.7% for the two-month period of fiscal year 2007.

BALANCE SHEET AND OTHER HIGHLIGHTS
As of September 30, 2007 the Company's cash and cash equivalents totaled $13.7 million. The Company's debt balance totaled $313.4 million, including notes payable of $1.8 million related to the
Interflora U.K. acquisition, compared to total debt of $313.7 million as of June 30, 2007. As of September 30, 2007, the Company had $72.0 million available under its revolving credit facility.
In addition, the Company paid a quarterly cash dividend of $0.1625 per share on October 4, 2007 to shareholders of record on September 20, 2007, in an amount totaling $4.8 million.

OUTLOOK
For fiscal year 2008, the Company reaffirmed, without change, its previously announced annual revenue target of approximately $645 million and targeted EBITDA of approximately $98 million, excluding other income, net, which has historically primarily related to net foreign currency gains, with targeted annual EBITDA as a percentage of revenue of approximately 15%. The Company is increasing its targeted net income for the fiscal year to $37.1 million, or $1.23 per diluted
share, from $35.7 million, or $1.18 per diluted share, due to the tax rate change in the U.K. enacted during the first quarter of fiscal year 2008. Company's targeted 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 above targets are only estimates, which may be exceeded or alternatively may not be achieved.

CONFERENCE CALL
A conference call has been scheduled for November 9, 2007 at 11:00 a.m., ET, to review results for the first 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 (877) 381-6199 for North American callers or (706) 679-4384 for International callers; mention Conference ID #21354386. A replay of the conference call will be available through November 23, 2007 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 or on the Web at www.ftd.com. The conference call contains time-sensitive information that is accurate only as of November 9, 2007, 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 include statements regarding the Company's outlook, anticipated revenue growth and profitability; anticipated benefits of its acquisition of 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 Holdings Limited. 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 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
                                                     September 30,
                                                 ---------------------
                                                    2007       2006
                                                 ---------- ----------

Revenues:
     Consumer segment                            $  45,720  $  47,393
     Florist segment                                42,821     43,821
     International segment                          35,204     17,557
                                                 ---------- ----------
            Total revenues                         123,745    108,771

Costs of goods sold and services provided:
     Consumer segment                               31,919     33,447
     Florist segment                                15,182     14,464
     International segment                          23,589     11,996
     Corporate                                         479        516
                                                 ---------- ----------
            Total costs of goods sold and
             services provided                      71,169     60,423

Gross profit:
     Consumer segment                               13,801     13,946
     Florist segment                                27,639     29,357
     International segment                          11,615      5,561
     Corporate                                        (479)      (516)
                                                 ---------- ----------
            Total gross profit                      52,576     48,348

Advertising and selling:
     Consumer segment                                4,764      4,886
     Florist segment                                 9,148     10,475
     International segment                           2,740      1,203
                                                 ---------- ----------
            Total advertising and selling           16,652     16,564

General and administrative:
     Consumer segment                                4,405      4,478
     Florist segment                                 2,099      2,265
     International segment                           5,876      3,159
     Corporate                                       6,691      6,508
                                                 ---------- ----------
            Total general and administrative        19,071     16,410

Operating income (loss) before corporate
 allocations:
     Consumer segment                                4,632      4,582
     Florist segment                                16,392     16,617
     International segment                           2,999      1,199
     Corporate                                      (7,170)    (7,024)
                                                 ---------- ----------
            Total operating income before
             corporate allocations                  16,853     15,374
                                                 ---------- ----------

Corporate allocations:
     Consumer segment                                  986        817
     Florist segment                                 2,569      2,392
     International segment                               -          -
     Corporate                                      (3,555)    (3,209)
                                                 ---------- ----------
            Total corporate allocations                  -          -

Income (loss) from operations:
     Consumer segment                                3,646      3,765
     Florist segment                                13,823     14,225
     International segment                           2,999      1,199
     Corporate                                      (3,615)    (3,815)
                                                 ---------- ----------
            Total income from operations            16,853     15,374
                                                 ---------- ----------

Other income and expenses:
     Interest income                                  (302)      (298)
     Interest expense                                6,387      8,226
     Other income, net                                (210)    (1,544)
                                                 ---------- ----------

            Total other expenses                     5,875      6,384
                                                 ---------- ----------

            Income before income tax expense        10,978      8,990

Income tax expense                                   2,822      3,547
                                                 ---------- ----------

            Net income                           $   8,156  $   5,443
                                                 ========== ==========


Net income per common share - basic              $    0.28  $    0.19
                                                 ========== ==========
Net income per common share - diluted            $    0.28  $    0.18
                                                 ========== ==========

Weighted average common shares outstanding -
 basic                                              29,066     28,232
                                                 ========== ==========
Weighted average common shares outstanding -
 diluted                                            29,549     29,469
                                                 ========== ==========



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

                                           September 30,   June 30,
                  ASSETS                        2007          2007
------------------------------------------ -------------  ------------
Current Assets:                             (Unaudited)
    Cash and cash equivalents              $      13,678  $    25,462
    Accounts receivable, less allowance
     for doubtful accounts of $5,913 at
     September 30, 2007 and $5,431 at June
     30, 2007                                     37,941       32,416
    Inventories, net                               4,226        3,694
    Other current assets                          11,402        9,500
                                           -------------  ------------
        Total current assets                      67,247       71,072

Property and equipment:
    Property and equipment                        36,528       35,791
    Less accumulated depreciation                 12,120       11,018
                                           -------------  ------------
        Property and equipment, net               24,408       24,773

Other assets:
    Computer software, net                        12,404       12,699
    Other noncurrent assets                       21,979       21,085
    Other intangible assets, less
     accumulated amortization of $9,956 at
     September 30, 2007 and $9,154 at June
     30, 2007                                     12,675       13,454
    Trademarks                                   189,264      187,816
    Goodwill                                     419,780      418,001
                                           -------------  ------------
        Total other assets                       656,102      653,055
                                           -------------  ------------
        Total assets                       $     747,757  $   748,900
                                           =============  ============

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

Current liabilities:
    Accounts payable                       $      43,247  $    52,009
    Other accrued liabilities                     28,497       28,511
    Current maturities of long-term debt           8,475        8,475
    Dividends payable                              4,804        4,707
                                           -------------  ------------
        Total current liabilities                 85,023       93,702

Senior secured credit facility                   133,060      133,418
Senior subordinated notes                        170,117      170,117
Post-retirement benefits, accrued pension
 obligations and other liabilities                 2,779        4,535
Deferred income taxes                             82,923       85,350

Stockholders' equity:
    Common stock: $0.01 par value, 75,000
     shares authorized; 29,796 shares
     issued as of September 30, 2007 and
     29,482 shares issued as of June 30,
     2007                                            298          295
    Additional paid-in capital                   235,695      235,589
    Retained earnings                             25,040       20,952
    Accumulated other comprehensive income        12,822        9,933
    Treasury stock, at cost, 519 shares as
     of June 30, 2007                                  -       (4,991)
                                           -------------  ------------
        Total stockholders' equity               273,855      261,778
                                           -------------  ------------
        Total liabilities and
         stockholders' equity              $     747,757  $   748,900
                                           =============  ============



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


                                                   Three Months Ended
                                                      September 30,
                                                   -------------------

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


Cash flows from operating activities:
    Net income                                     $  8,156  $  5,443
    Adjustments to reconcile net income to net
     cash used in operating activities:
        Depreciation and amortization                 3,221     3,316
        Stock-based compensation expense                721       393
        Amortization and write-off of deferred
         financing costs                                217     2,077
        Provision for doubtful accounts                 735       764
        Deferred income taxes                        (3,060)     (601)
        Excess tax benefit from stock-based
         compensation                                (2,282)     (654)
        (Decrease) increase due to changes in
         operating assets and liabilities, net of
         acquisition:
            Accounts receivable                      (6,110)   (5,924)
            Inventories                                (524)      327
            Prepaid expenses and other               (1,833)      829
            Other noncurrent assets                  (1,133)     (428)
            Accounts payable                         (5,030)   (8,812)
            Other accrued liabilities, unearned
             revenue, customer deposits and other    (2,640)   (2,216)
                                                   --------- ---------

                Net cash used in operating
                 activities                          (9,562)   (5,486)
                                                   --------- ---------

Cash flows from investing activities:
    Acquisition of business, net of cash acquired         -   (96,717)
    Capital expenditures                             (1,558)   (1,935)
    Dividends received                                    -       146
                                                   --------- ---------

                Net cash used in investing
                 activities                          (1,558)  (98,506)
                                                   --------- ---------

Cash flows from financing activities:
    Dividends paid                                   (4,707)        -
    Proceeds from exercise of stock options           2,091       422
    Excess tax benefit from stock-based
     compensation                                     2,282       654
    Repayments of long-term debt                       (358)  (50,000)
    Proceeds from issuance of long-term debt, net
     of financing costs                                   -   148,556
    Proceeds from issuance of common stock                6         -
    Net proceeds from revolving credit facility           -     6,000
                                                   -------------------

                Net cash (used in) provided by
                 financing activities                  (686)  105,632
                                                   --------- ---------

    Effect of foreign exchange rate changes on
     cash                                                22       708
                                                   --------- ---------

Net (decrease) increase in cash and cash
 equivalents                                        (11,784)    2,348

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

Cash and cash equivalents at end of period         $ 13,678  $ 13,302
                                                   ========= =========



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

                    Three Months Ended         Three Months Ended
                     September 30, 2007         September 30, 2006
                 -------------------------- --------------------------
                  Gross    Elimi-  Consoli-  Gross    Elimi-  Consoli-
                 Segment  nations   dated   Segment  nations   dated
                 -------- -------- -------- -------- -------- --------

Revenues:
Consumer segment $47,936  $(2,216) $45,720  $49,642  $(2,249) $47,393
Florist segment   42,925     (104)  42,821   43,912      (91)  43,821
International
 segment          35,120       84   35,204   17,524       33   17,557
                 -------- -------- -------- -------- -------- --------
         Total   125,981   (2,236) 123,745  111,078   (2,307) 108,771
                 -------- -------- -------- -------- -------- --------

Costs of Goods
 Sold and
 Services
 Provided:
Consumer segment  32,023     (104)  31,919   33,538      (91)  33,447
Florist segment   15,182        -   15,182   14,464        -   14,464
International
 segment          23,616      (27)  23,589   12,012      (16)  11,996
Corporate            479        -      479      516        -      516
                 -------- -------- -------- -------- -------- --------
         Total    71,300     (131)  71,169   60,530     (107)  60,423
                 -------- -------- -------- -------- -------- --------

Gross Profit:
Consumer segment  15,913   (2,112)  13,801   16,104   (2,158)  13,946
Florist segment   27,743     (104)  27,639   29,448      (91)  29,357
International
 segment          11,504      111   11,615    5,512       49    5,561
Corporate           (479)       -     (479)    (516)       -     (516)
                 -------- -------- -------- -------- -------- --------
         Total    54,681   (2,105)  52,576   50,548   (2,200)  48,348
                 -------- -------- -------- -------- -------- --------


Advertising and
 Selling:
Consumer segment   4,764        -    4,764    4,886        -    4,886
Florist segment   11,364   (2,216)   9,148   12,724   (2,249)  10,475
International
 segment           2,722       18    2,740    1,246      (43)   1,203
                 -------- -------- -------- -------- -------- --------
         Total    18,850   (2,198)  16,652   18,856   (2,292)  16,564
                 -------- -------- -------- -------- -------- --------

General and
 Administrative:
Consumer segment   4,405        -    4,405    4,478        -    4,478
Florist segment    2,099        -    2,099    2,265        -    2,265
International
 segment           5,837       39    5,876    3,023      136    3,159
Corporate          6,691        -    6,691    6,508        -    6,508
                 -------- -------- -------- -------- -------- --------
         Total    19,032       39   19,071   16,274      136   16,410
                 -------- -------- -------- -------- -------- --------

Operating Income
 (Loss) before
 Corporate
 Allocations:
Consumer segment   6,744   (2,112)   4,632    6,740   (2,158)   4,582
Florist segment   14,280    2,112   16,392   14,459    2,158   16,617
International
 segment           2,945       54    2,999    1,243      (44)   1,199
Corporate         (7,170)       -   (7,170)  (7,024)       -   (7,024)
                 -------- -------- -------- -------- -------- --------
         Total    16,799       54   16,853   15,418      (44)  15,374
                 -------- -------- -------- -------- -------- --------

Corporate
 Allocations:
Consumer segment     986        -      986      817        -      817
Florist segment    2,569        -    2,569    2,392        -    2,392
International
 segment               -        -        -        -        -        -
Corporate         (3,555)       -   (3,555)  (3,209)       -   (3,209)
                 -------- -------- -------- -------- -------- --------
         Total         -        -        -        -        -        -
                 -------- -------- -------- -------- -------- --------

Operating Income
 (Loss):
Consumer segment   5,758   (2,112)   3,646    5,923   (2,158)   3,765
Florist segment   11,711    2,112   13,823   12,067    2,158   14,225
International
 segment           2,945       54    2,999    1,243      (44)   1,199
Corporate         (3,615)       -   (3,615)  (3,815)       -   (3,815)
                 -------- -------- -------- -------- -------- --------
         Total   $16,799      $54  $16,853  $15,418     $(44) $15,374
                 ======== ======== ======== ======== ======== ========

Depreciation and
 Amortization:
Consumer segment    $906       $-     $906     $940       $-     $940
Florist segment      666        -      666      834        -      834
International
 segment             994        -      994      576        -      576
Corporate            655        -      655      966        -      966
                 -------- -------- -------- -------- -------- --------
         Total    $3,221       $-   $3,221   $3,316       $-   $3,316
                 ======== ======== ======== ======== ======== ========



                           FTD GROUP, INC.
                     NON-GAAP FINANCIAL MEASURES
                                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 that are not
 considered reflective of the Company's core operations. For the
 period ended September 30, 2007, the only item not considered part of
 the Company's core operations was other income, which primarily
 consists of net foreign currency gains. EBITDA and Adjusted EBITDA
 are calculated as follows for the periods presented:

                                                   Three Months Ended
                                                     September 30,
                                                  --------------------
                                                    2007       2006
                                                  ---------  ---------


    Net income, as reported (GAAP basis)          $  8,156   $  5,443
    plus: Interest expense, net                      6,085      7,928
    plus: Depreciation and amortization              3,221      3,316
    plus: Income tax expense                         2,822      3,547
                                                  ---------  ---------
    EBITDA (1)                                      20,284     20,234
    Other income, net                                 (210)    (1,544)
                                                  ---------  ---------
    Adjusted EBITDA (1)                           $ 20,074   $ 18,690
                                                  =========  =========

(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) and currency
     fluctuations (resulting from our Interflora business in the
     U.K.). 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.



                           FTD GROUP, INC.
                     NON-GAAP FINANCIAL MEASURES
                           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. 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. Targeted EBITDA is
 calculated as follows for the period presented:

                                                      Year Ending
                                                     June 30, 2008
                                                  (Forecasted Targets)
                                                  --------------------
    Revenues                                       $           645,000

    Net income (GAAP basis)                        $            37,050
    plus: Interest expense, net                                 24,200
    plus: Depreciation and amortization                         15,300
    plus: Income tax expense                                    21,450
                                                  --------------------
    EBITDA (1)                                     $            98,000
                                                  ====================

(1) The Company uses EBITDA as a 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. Measures similar
     to 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 facilitates 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) and the age and book
     depreciation of facilities and equipment (affecting relative
     depreciation expense). The Company also presents EBITDA because
     it believes it is frequently used by investors and other
     interested parties in the evaluation of high yield issuers, many
     of which present EBITDA when reporting their results.

    EBITDA has limitations as an analytical tool, 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 are that it does not reflect the Company's cash
     expenditures for capital expenditures, it does not reflect the
     significant interest expense or the cash requirements necessary
     to service interest or principal payments on the Company's debt,
     it does not reflect changes in, or cash requirements for, the
     Company's working capital requirements 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 only
     supplementally.

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