1. 2006 Lawn & garden Market Data GREEN CIRCLE GROWERS -AN Analysis of industry, product, Consumer & marketplace Trends-

2. Industry Trends Although 2005 Floriculture sales leveled off (Up 1.48%), industry growth has been steady for the past few years with sales growing 77% since 1995. Source: USDA Floriculture Crops Summary Despite aggressive industry growth over the past 10 years, numbers of growers decreased 7% from 2004 to 2005 (11,385 in 2004 – 10,563 in 2005) Combination of above data is indicative of gradual centralization of consumer purchases... NET >>> Industry formerly built on Ma & Pa outlets is now dominated by high-traffic mass merchants with consistent execution of programs & products...

3. Floriculture Growth 2005 - $4.65 Billion1995 - $3.074 Billion Bedding & Garden category experiencing most aggressive growth over last 10 years.

4. Floriculture Growth – cont’d Overall Floriculture sales grew 51.1% over 10 year time period... NET >>> Bedding & Garden has seen most aggressive growth in this time frame: B & G accounted for 44.1% of total in 1995...By 1998 B & G took over a majority share of the market as sales accounted for 51.4% of the total... By 2005, B & G sales were reported at $2.613 Billion, an increase of $92.6% fro 1995, and they accounted for 56.3% of the pie... Cut flower, cut greens, and potted flowering plant segments have all relinquished share to the B & G plant slice over the last decade...

5. 2005 - $4.65 Billion1995 - $3.074 Billion Category Analysis

6. Category Analysis – cont’d Biggest fluctuation in sub-categories has occurred in flats. Impact on the overall mix has dropped 67.5% over the past decade. NET >>> Decreased flat business has been spread over many segments of the business, including Potted Annuals, Hanging Baskets, and Mums & Perennials. Significant growth represented in each of these segments indicative not only of market trends, but also rising price points and overall product sizes (i.e. 16” Coco HB’s, 14” Mums, 10” Poinsettias). Although not shown, much of the flat business today is comprised of multi-packs, handle-packs, etc. Consumer is still planting, but ease of purchase and success with project is essential going forward.

7. What’s Selling? Geraniums-seed Geraniums-Vegetative Marigolds 3.3% Impatiens 8.0% 2.3% New Guinea Impatiens 4.2% Pansies & Violas 8.7% Begonias 5.3% 9.0% Petunias 8.7% Vegetables 7.4% Other Flowering Annuals 43% While breeding and plant innovation will continue to be important, product ideas and packaging will become paramount. Development of alternative packaging and price points is crucial as competition is fierce for these top items.

8. Consumer Trends Unity Marketing Survey Gardening Results “Simple is in, clutter is out” Implication: Implication: Simple, big blocks of color in stores is key to attract customer & drive sales “Do some of it for me” is in, “Do it all yourself “ is out Implication: Implication: More “Garden-Ready” material is required Implication: Implication: Instant gratification is key, consumer needs early success to believe Implication: Implication: Make it easier for consumer to find success

9. Consumer Trends October 2005 Garden Writer’s Survey: Consumer’s primary purchase goal is color & decoration Implication: Implication: Consistent product presentation is critical Critical Factor’s in Consumers’ plant selections: Color: Color: 51% Size: Size: 30% Cost: Cost: 31% Brand: Brand: 7% Source: Garden Writer’s Fall 2005 Survey Wall Street Journal Survey: Consumer is looking for “upscale experience with downscale prices”

10. Consumer Trends - Continued Container Gardening continues to grow at fast pace Growing at nearly a 20% annual rate Ease of designing and planting an entire flower garden in an afternoon Includes lower income demographic also...Great item for smaller yards, porches and apartment balconies Much less maintenance (weeding, watering, etc) than conventional flower beds Consistent growth in container components More avid gardener creates their own combinations Strong sales of component plants in color (Gerbera Daisy, Dahlia, New Guinea, etc) and accents (Spikes, Bacopa, Vinca Vine, Coleus, etc)

11. Marketplace Trends Home Depot – Pay By Scan initiative continues to produce varied results across country Strong move away from OPP strategy and to higher end material Very container driven in percentages of Hanging Baskets & Patio Pots Lowe’s – Continues to be favored destination of female consumer Economic downturn worked to their advantage OPP strategy supplemented by big baskets and containers Nursery was one of Top 5 categories in 2 nd Quarter 2005

12. Marketplace Trends - Continued Wal-Mart – Continues low price push Continues to go after narrow selection and large levels of stock Mainly OPP driven with some markets experimenting with higher – ticket items Independent Garden Centers – Continue to lose overall market share I.G.C.’s have dropped from 14% of market in 1997 to less than 10% in 2004 Large chain retailers hold 71.2% share of live goods market in U.S. (and growing) Overall business philosophy of attempting to include higher demographics slowly moving to Garden Center

13. Marketplace Trends - Continued Gardening will continue to grow as the #1 Outdoor Leisure Activity in the U.S. Over 60 crowd – fastest growing demographic – Gardens at 46% level!! 80% of consumers report some involvement in Lawn & Garden Home ownership is up to 68% (from 62% in 1997) Largest outdoor leisure activity in U.S. (34% participate regularly) In 2004, 86 Million households worked in their gardens, up from 67 Million in 1997 Home owners garden at 4 times the rate of non–home owners!!

14. Marketplace Trends - Continued Consumers spent an average of $461 on Lawn & Garden supplies in 2004 – Double the 1994 figure 2000$6.3 Billion 2004$11.1 Billion Landscaping/Gardening is the 3 rd highest ranked home improvement project Professional landscaping and garden installation in last four years has grown nearly 80% Consumers are willing to spend on their gardening needs rather than their lawns

15. Marketplace Trends - Continued 57% of women plant gardens themselves vs only 32% of men Women lead the buying and implementation of most Home Garden designs #1 use for a garden by consumers is “relaxation” (55% of consumers) #2 use for a garden by consumers is “entertainment” (32% of consumers) Source: Home Channel News Trend Surveys Where do you buy your outdoor garden supplies? Consumers are looking to Chain Store Retailers as their primary destination for Lawn & Garden needs Source: National Garden Association Survey 79% say they have bought at large chain retailers

16. Marketplace Trends - Continued 2004 Floral Purchases for Mother’s Day Gifts: As of 2O04 Outdoor Garden items are now #1 gift for Mother’s Day – FIRST TIME EVER!!! 40%Outdoor Garden Item (i.e. Hanging Basket) 37%Cut Flowers 23%Flowering or Green Foliage Houseplants

17. Keys to Success... High Foot – Traffic areas drive impulse... High Visibility & Display are critical to grab customer... 80% of Floral Purchases are impulse driven...