SOURCE: Easy Gardener Products, Ltd.

July 27, 2005 15:04 ET

Easy Gardener Products, Ltd. Announces Preliminary 12-Month Results at June 30, 2005

WACO, TX -- (MARKET WIRE) -- July 27, 2005 -- Easy Gardener Products today announced preliminary twelve-months results at June 30, 2005 (AMEX: EZY_pa), (AMEX: EZY.pr.a), (AMEX: EZY/PA) (AMEX: EZYPRA).

The Company has completed a preliminary review of its financial performance for the quarter and twelve months ended June 30, 2005. This review is before completion of its annual independent audit.

During the year ended June 30, 2005, the Company had increased sales levels of 7.1% from new products and new distribution, when compared to the twelve months ended June 30,2004, which includes four months of its Predecessor's operations (July through October of 2004). However, cool and wet spring weather negatively impacted the current gardening season. Increased petrochemical costs resulted in increased product cost and increased fuel costs, which negatively impacted freight costs. These events resulted in the Company exceeding the Maximum Senior Leverage Ratio and being below the minimum EBITDA levels contained in its senior loan agreements at June 30, 2005. EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization.

The Company has notified the senior lenders of this event and is working with them to resolve this matter.

The Company believes that the changes it has and is continuing to make in its operations and its new product development activities will allow it to grow more profitably in the future.

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