SOURCE: AeroGrow International, Inc.

March 03, 2008 08:00 ET

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

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.

Contact Information

  • CONTACTS:
    Corporate
    John Thompson
    AeroGrow International, Inc.
    (303) 444-7755
    Email Contact

    Investor
    Budd Zuckerman
    Genesis Select Corporation
    (303) 415-0200
    Email Contact