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Non-Tech : Garden Botanika (GBOT) -- Ignore unavailable to you. Want to Upgrade?

To: AV8R who wrote (33)	2/2/1999 7:01:00 PM
From: Bill Brown	Read Replies (1) \| Respond to of 44

TO ALL, NEWS RELEASE: Tuesday February 2, 6:05 pm Eastern Time Company Press Release Garden Botanika Announces Staff Reductions, January Sales Cuts Linked to Company's Ongoing Reorganization Effort REDMOND, Wash.--(BUSINESS WIRE)--Feb. 2, 1999--Garden Botanika, Inc. (NASDAQ NM:GBOT - news) today announced it will reduce the work force at its Redmond headquarters by approximately one-third. As part of an ongoing reorganization effort first announced last week, the Redmond-based cosmetics and personal care products company is eliminating approximately 30 positions at its corporate office, as well as approximately 20 full and part-time positions at its California-based manufacturing and distribution center facilities. Once the layoffs are complete, approximately 65 employees will remain in the corporate office with another 2,500 remaining in manufacturing, distribution and retail operations nationwide. Today's action closely follows the Company's prior announcement of a number of changes effecting both senior management and its Board of Directors. Arlee Jensen, formerly Vice President for Marketing, replaced Company founder Michael Luce as chief executive officer. A new executive management committee was formed to assist Jensen in making day-to-day decisions. The investment banking firm of McDonald Investments, Inc. was also hired to assist in the development of strategic alternatives. According to Jensen, the decision to eliminate jobs is a regrettable but necessary part of Garden Botanika's broader reorganization efforts aimed at bringing operating expenses in line with current revenues. Jensen thanked all Garden Botanika employees affected by the change for their hard work and commitment over the past several years. She also reassured the remaining employees that all changes currently underway are aimed at helping the Company achieve profitability. (a) ''This is a very difficult decision, but it is an essential step in getting the Company back on track,'' Jensen said. ''The employees affected have been loyal and committed members of the Garden Botanika team. We appreciate their efforts and deeply regret that this action is necessary.'' Garden Botanika today also reported sales for January (the four-week fiscal period ended January 30, 1999). Sales decreased 15% to $4.97 million from $5.87 million in January 1998. Store sales decreased by 22% compared to the prior period primarily due to a decline of 16% in comparable store sales (for the 218 stores open at least one complete fiscal year) and to a decrease of 29 stores from the comparable prior period. During the month, the Company completed the process of closing 22 store locations. These stores have been excluded from the comparable store sales results. For the fifty-two weeks ended January 30, 1999, sales decreased 10% to $102.97 million from $114.57 million in the comparable prior period. Store sales declined 11% due to a 13% decline in comparable store sales. Included in total sales for the period are mail order and Internet sales of $3.19 million and direct commercial sales of $850,000. Garden Botanika markets botanically based cosmetic and personal care products through its 253 stores across the U.S. and its own catalog. The Company's headquarters are located at 8624-154th Avenue NE, Redmond, Washington 98052; its investor relations telephone number is (425)883-GBOT; and its website address is www.gardenbotanika.com. (a) Forward-Looking Statements: When used in the above discussion in the context of future events, the words ''expects,'' ''anticipates,'' ''estimates,'' ''plans,'' ''believes,'' ''intends'' and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results or trends to differ materially from those trends in comparable store sales, the effectiveness of the company's mailings in generating sales and the Company's ability to introduce new products, to close selected stores in a cost effective manner and/or to exploit commercial sales opportunities. See also the ''Risk Factors and Forward-Looking Statements'' section of the Company's annual report on form 10-K/A dated May 29, 1998, which has previously been filed with the undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly release the result of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Contact: Garden Botanika Arlee Jensen, 425/881-9603