Contact Information: CONTACTS: Corporate John Thompson AeroGrow International, Inc. (303) 444-7755 Investor Budd Zuckerman Genesis Select Corporation (303) 415-0200
AeroGrow Opens Eastern Distribution Center
Indianapolis Distribution Center Targets 7-Figure Cost Savings
| Source: AeroGrow International, Inc.
BOULDER, CO--(Marketwire - August 27, 2008) - AeroGrow International, Inc. (NASDAQ : AERO )
("AeroGrow" or the "Company"), makers of the AeroGarden® line of indoor
gardening products, announced that it has started shipping products from
its new Distribution Center (DC) in Indianapolis, Indiana.
The 89,000 square foot facility and associated state-of-the-art warehouse
management system were implemented in support of two primary objectives: 1)
to reduce order handling costs; and 2) to decrease package delivery time
and distance, decreasing freight costs.
The new distribution center reduces time in transit by an average of 2.2
days and offers substantial fulfillment, packing and warehouse cost savings
as well. Indianapolis was selected due to its centralized location and
proximity to the majority of our customers. Approximately 65% of AeroGrow's
shipments are made to destinations in the eastern, mid-western and
south-central regions of the United States. Indianapolis was also chosen to
capitalize on the favorable labor and commercial real estate rates
associated with this market.
The Indianapolis DC also supports the Company's rapidly growing Canadian
distribution requirements and complements AeroGrow's existing third-party
distribution center in Chino, California. The Indianapolis DC is fully
managed by AeroGrow employees.
"In the next few months, we're not only rolling out to thousands of new
retailers, we're also starting to deliver our new, multi-SKU product lines
to our 5,100 existing retailers," said Jerry Perkins, CEO of AeroGrow.
"Having the Indianapolis DC up and running to assist with this major
product sell-in will help to dramatically lower our costs. It also gets us
much closer to our customers, enabling us to get orders out the door and
onto retail shelves in a more timely and efficient manner. We're handling
our regional direct response fulfillment out of this facility as well. The
new center also spreads our risk, making us less susceptible to the
potential negative impacts of dock closures, strikes, weather, labor
uncertainties and other factors that may exist with any single location."
"We plan to complete over 600,000 shipments this year, so it makes sense to
operate our own distribution center and take advantage of the labor,
fulfillment and shipping efficiencies," said Mike Wolfe, AeroGrow's Vice
President of Operations. "Manufacturing companies around the globe are
getting hit by wave after wave of higher prices, and this is one of the
simplest things we could do to take control of that. Since we can save
money with every order that we fill out of our Indianapolis DC, we
anticipate that the savings will add up quickly, approaching a million
dollars over the next year."
About AeroGrow International, Inc.
Founded in 2002 in Boulder, Colorado, AeroGrow International, Inc. is
dedicated to the research, development and marketing of the AeroGarden®
line of indoor gardening products. AeroGardens feature dirt-free
technology, allowing anyone to grow farmer's market fresh herbs, salad
greens, tomatoes, chili peppers, flowers and more, indoors, year-round, so
simply and easily that no green thumb is required. See www.aerogrow.com.
FORWARD-LOOKING STATEMENTS
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements by Jerry Perkins, Mike Wolfe, and/or the Company,
statements regarding growth of the AeroGarden product line, optimism
related to the business, expanding sales and other statements in this press
release are forward-looking statements within the meaning of the Securities
Litigation Reform Act of 1995. Such statements are based on current
expectations, estimates and projections about the Company's business. Words
such as expects, anticipates, intends, plans, believes, sees, estimates and
variations of such words and similar expressions are intended to identify
such forward-looking statements. These statements are not guarantees of
future performance and involve certain risks and uncertainties that are
difficult to predict. Actual results could vary materially from the
description contained herein due to many factors including continued market
acceptance of the Company's products or the need to raise additional
capital. In addition, actual results could vary materially based on changes
or slower growth in the kitchen garden appliance market; the potential
inability to realize expected benefits and synergies; domestic and
international business and economic conditions; changes in customer demand
or ordering patterns; changes in the competitive environment including
pricing pressures or technological changes; technological advances;
shortages of manufacturing capacity; future production variables impacting
excess inventory and other risk factors listed from time to time in the
Company's Securities and Exchange Commission (SEC) filings under "risk
factors" and elsewhere. The forward-looking statements contained in this
press release speak only as of the date on which they are made, and the
Company does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this press
release.