SOURCE: Hines Horticulture, Inc.

March 27, 2007 20:37 ET

Hines Horticulture, Inc. Delays Earnings Release

IRVINE, CA -- (MARKET WIRE) -- March 27, 2007 -- Hines Horticulture, Inc. (NASDAQ: HORT), a leading operator of commercial nurseries in North America, today announced that it is delaying the release of its financial results for the three months and year ended December 31, 2006, previously scheduled for issuance tomorrow after the close of business. Accordingly, the related conference call previously scheduled for tomorrow is also being delayed.

The earnings release and related conference call are being delayed in order to provide additional time for the completion of the audit of the Company's financial statements for the fiscal year ended December 31, 2006. Pending the completion of the audit, the Company thought it was prudent to postpone the announcement of its results.

The company will announce the new details of its earnings release and conference call at a later time.

New Senior Credit Facility

As previously disclosed, on March 8, 2007, the syndication of the $100 million senior credit facility of Hines Nurseries, Inc., a direct subsidiary of the Company was completed.

As a result of the completion of the syndication of the senior credit facility, pursuant to the terms of the loan agreement, we are able to borrow revolving loans in an aggregate amount equal to $100 million, subject to the borrowing base and other availability reserves determined in accordance with the loan agreement.

Claudia Pieropan, Chief Financial Officer, reported: "On March 26, 2007, we had $28.4 million of borrowings under our revolving credit facility, resulting in unused borrowing capacity of $48.6 million after applying the borrowing base limitations and letters of credits to our available borrowings. We typically draw down our revolving credit facility in the first and fourth quarters to fund our seasonal inventory buildup and seasonal operating expenses. Approximately 75% of our sales occur in the first half of the year, generally allowing us to reduce borrowing under our revolving credit facility in the second and third quarters."

Miami Land Sale

As previously disclosed, effective March 1, 2007, the Company entered into a contract to sell its one remaining parcel of land located in Miami, Florida. The contract, which included a fifteen day due diligence period, contains closing and other customary conditions, provides for the sale of approximately 79 acres of land in Miami, Florida. This transaction is expected to close on, or around, April 16, 2007, with an anticipated sales price of approximately $7.2 million.

About Hines Horticulture

Hines Horticulture is a leading operator of commercial nurseries in North America, producing one of the broadest assortment of container grown plants in the industry. Hines Horticulture sells nursery products primarily to the retail segment, which includes premium independent garden centers, as well as leading home centers and mass merchandisers, such as Home Depot, Lowe's and Wal-Mart.

Forward-Looking Statements

Certain statements and information contained in this press release constitute forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Hines Horticulture to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Among the important factors or risks that could cause actual results or events to differ materially from those in the forward-looking statements in this release include general economic trends and seasonality, our substantial leverage and ability to service our debt, restrictive covenants under our debt facilities, competitive practices in the industry in which we compete, fluctuations in our operating costs, revenues and cash flows from operations, our dependence on a limited number of key customers, litigation and other factors. Additional detailed information concerning a number of important factors that could cause actual results to differ materially from the forward-looking information contained in this release is publicly available in Hines Horticulture's filings with the Securities and Exchange Commission, including Hines Horticulture's annual report on Form 10-K for the year ended December 31, 2005, quarterly report on Form 10-Q for the quarter ended March 31, 2006, quarterly report on Form 10-Q for the quarter ended June 30, 2006 and the quarterly report on Form 10-Q for the quarter ended September 30, 2006.