Contact Information: CONTACTS: Corporate John Thompson AeroGrow International, Inc. (303) 444-7755 Investor Budd Zuckerman Genesis Select Corporation (303) 415-0200
AeroGrow Reaches Major Sales Milestone -- 1,000,000 Seed Kits Shipped
400,000 AeroGardens Shipped During Same Period; Recurring Revenues Approaching 20% of Gross Sales
| Source: AeroGrow International, Inc.
BOULDER, CO--(Marketwire - March 3, 2008) - AeroGrow International, Inc. (NASDAQ : AERO )
("AeroGrow" or the "Company"), makers of the AeroGarden® line of indoor
gardening products, announced that it has now shipped more than one million
seed kits since launching the AeroGarden in March 2006. During that same
time, AeroGrow also surpassed 400,000 AeroGardens shipped.
"Every time we ship an AeroGarden, the opportunity is there for lifetime
sales of seed kits and accessories," said Michael Bissonnette, Founder and
Chairman of AeroGrow. "Our customers are demonstrating this with a
passionate, ongoing acceptance of the product line that results in
significant reorders. We've found that returning customers have so far
spent an average of $150 after their original orders. This highlights the
dedication of our user-base, so we're giving intense focus to the creation
of new products and accessories that will deepen that level of interest and
engagement."
"The recurring revenue portion of the business is substantial in terms of
both gross revenue and contribution to the bottom line," said Jerry
Perkins, CEO and President of AeroGrow. "Results at retail, in our catalog,
and on our website are demonstrating that people are embracing the benefits
of growing fresh produce and flowers as an ongoing part of their lives. In
fact, in our first year of sales, which just ended last March, recurring
revenues accounted for just over 8% of our business. This year, they're
approaching 20% of sales. That's an amazing achievement in just two years,
and a great measure of the success and acceptance of this new product
category."
Seed kits are used in AeroGardens to deliver a Plug & Grow™ foolproof
gardening experience. Consumers can choose from more than 20 seed kits
including six different Herb kits, six different Salad kits, Cherry
Tomatoes, Chili Peppers, Green Beans, Petunias and more. Seed kits, which
retail for $19.95, are replaced in the gardens every three to six months
and grow lights, also $19.95, are replaced twice a year. A variety of new
grow lights and seed kits, including an increased focus on flowers for home
and office décor, are in development.
About AeroGrow International, Inc.
Founded in 2002 in Boulder, Colorado, AeroGrow International, Inc. is
dedicated to the research, development and marketing of the AeroGarden®
line of indoor gardening products. AeroGardens feature NASA-proven,
dirt-free aeroponic technology, allowing anyone to grow farmer's market
fresh herbs, salad greens, tomatoes, chili peppers, flowers and more,
indoors, year-round, so simply and easily that no green thumb is required.
See www.aerogrow.com.
FORWARD-LOOKING STATEMENTS
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements by Michael Bissonnette, Jerry Perkins, and/or the
Company, statements regarding growth of the AeroGarden product line,
optimism related to the business, expanding sales and other statements in
this press release are forward-looking statements within the meaning of the
Securities Litigation Reform Act of 1995. Such statements are based on
current expectations, estimates and projections about the Company's
business. Words such as expects, anticipates, intends, plans, believes,
sees, estimates and variations of such words and similar expressions are
intended to identify such forward-looking statements. These statements are
not guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Actual results could vary
materially from the description contained herein due to many factors
including continued market acceptance of the Company's products or the need
to raise additional capital. In addition, actual results could vary
materially based on changes or slower growth in the kitchen garden
appliance market; the potential inability to realize expected benefits and
synergies; domestic and international business and economic conditions;
changes in customer demand or ordering patterns; changes in the competitive
environment including pricing pressures or technological changes;
technological advances; shortages of manufacturing capacity; future
production variables impacting excess inventory and other risk factors
listed from time to time in the Company's Securities and Exchange
Commission (SEC) filings under "risk factors" and elsewhere. The
forward-looking statements contained in this press release speak only as of
the date on which they are made, and the Company does not undertake any
obligation to update any forward-looking statement to reflect events or
circumstances after the date of this press release.