1-800-FLOWERS Expands Its Electronic Commerce Alliance on MSN

REDMOND, Wash., Nov. 17, 1998 — Microsoft Corp. today announced that 1-800-FLOWERS has signed an agreement to be a Premier Merchant on MSN ™ Shopping, continuing its successful relationship with Microsoft. This renewal reflects the high level of satisfaction that online merchants enjoy with MSN Shopping, where visitors find best-of breed online merchants, and merchants have access to a targeted shopping audience.

1-800-FLOWERS has been an online pioneer and has worked with Microsoft through the years. The company’s large and loyal following makes it an asset to MSN Shopping. These two online leaders have strengths that complement each other in the electronic commerce arena, and each looks forward to continuing the ongoing relationship.

“We’ve been working with Microsoft for several years now, and we’re thrilled with the company’s re-emphasis on electronic commerce,” said Chris McCann, senior vice president of
1-800-FLOWERS. “It is clear that MSN will be one of the winners in the game of ‘portal musical chairs,’ and we’re pleased that we can continue our relationship.”

The Microsoft® online sales team is dedicated to helping provide marketers with the ability to effectively reach a desirable targeted audience and benefit from the association with a broad array of award-winning content. The advertising packages to be developed by the MSN network of Internet services for 1-800-FLOWERS are part of a continuing effort to offer promotional benefits to advertisers and consumers. 1-800-FLOWERS Premier Merchant Packages include participation in merchandising opportunities on MSN Shopping, banner placements on MSN and marketing integration opportunities within MSN.

“1-800-FLOWERS is always looking at ways to best serve its customers and to reach new ones. The merchandising and targeting capabilities of MSN Shopping, combined with the broad reach of MSN, help 1-800-FLOWERS achieve its marketing and sales goals,” said Charlotte Guyman, general manager of online sales and marketing at Microsoft.

1-800-FLOWERS

1-800-FLOWERS is the world’s favorite florist, assisting with over 9 million floral purchases last year. In addition to its more than 150 retail stores, 1-800-FLOWERS distributes the world’s freshest flowers 24 hours a day via the Internet, catalogs and telephone at 1-800-FLOWERS.

Microsoft Online Sales and Marketing

MSN offers online advertising and sponsorship opportunities. The integration of the Microsoft portal site and best-of-breed Internet services into a cohesive network establishes MSN.com as one of the most visited sites on the Internet. In addition to this broad consumer reach, properties on MSN deliver a highly qualified audience to businesses, helping them achieve their sales and marketing goals. Offerings on MSN include sponsorships of content and service segments, banner ads, promotions and cross-network packages using rich media advertising.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people

to take advantage of the full power of personal computing every day.

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