SOURCE: Easy Gardener Products, Ltd

April 26, 2005 15:27 ET

Easy Gardener Products, Ltd. Announces Preliminary Nine Month Results at March 31, 2005

WACO, TX -- (MARKET WIRE) -- April 26, 2005 -- Easy Gardener Products today announced preliminary nine months results at March 31,2005, (AMEX: EZY_pa) (AMEX: EZY.pr.a) (AMEX: EZY/PA) (AMEX: EZYPRA).

The nine months ended March 31, 2005 had improved sales levels of 10% from new products and new distribution, when compared to the nine months ended March 31,2004, which includes four months of its Predecessor's operations (July through October of 2004). However, cool and wet spring weather delayed the beginning of the 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 contained in its senior loan agreements at March 31, 2005.

The Company has notified the senior lenders of this event and is working with them to resolve this matter. The senior lenders have not, at this time, provided any indication as to the course of action they will take on 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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