BEAR Vermont Teddy Bear (MM)

Vermont Teddy Bear Co.(R) Reports 68% Increase in Mother's Day Orders SHELBURNE, Vt., May 12 /PRNewswire-FirstCall/ -- The Vermont Teddy Bear Company(R) today reported a 68% increase to orders booked in the two-week period leading up to Mother's Day. The Vermont Teddy Bear Company received approximately 112,000 orders for its BearGram, PajamaGram, TastyGram and Calyx & Corolla gift products, as compared to approximately 66,500 orders taken in the same two-week period last year. The additional 45,500 orders included 39,000 orders for the Calyx & Corolla floral gift segment, the Company's newest business segment acquired in August 2003. The Company also received approximately 10,000, or 46%, more PajamaGram orders and 3500, or 8%, fewer BearGram orders for Mother's Day this year as compared to last. Mother's Day, traditionally The Vermont Teddy Bear Company's second largest holiday for orders, was expected to be a strong holiday for the Calyx segment. The Company's largest holiday, Valentine's Day, was also very successful this year, resulting in a 27% increase in orders, as the Company shipped approximately 140,000 orders versus 110,000 last year. The 30,000 additional Valentine's Day orders included approximately 12,500 orders in the new Calyx segment, and approximately 10,000 more BearGram orders and 7,500 more PajamaGram orders than in the prior year period. "I'm thrilled with our Mother's Day sales increase," said Vermont Teddy Bear President and CEO Elisabeth Robert. "For Mother's Day this year, we pushed advertising dollars to Calyx taking a big, successful step in rebuilding the catalog circulation for Calyx that had been curtailed last year under prior ownership. In addition, we reallocated advertising dollars from local radio to nationally syndicated radio, TV and print in an effort to diversify our marketing efforts for both PajamaGrams and BearGrams. The theme, consistent with what I have said in the past, is our Company is transitioning from being a one-note song of radio driven BearGrams to being a symphony with multiple gift brands marketed through multiple channels." The Company typically reports its Mother's Day results with the release of its third quarter earnings. Because Mother's Day was early this year in relation to the Company's filing schedule, the results are being reported separately. The Company plans to report its third quarter earnings on May 17th. The Vermont Teddy Bear Company's ability to offer consumers personalized last minute gifts helps to set the Company apart from competitors. BearGram orders that included teddy bear outfits personalized with embroidery or artwork taken until 6 p.m. EDT the Friday before Mother's Day were guaranteed for delivery the next day. Over 30,000 teddy bear outfits were personalized in the two-week period. "This Mother's Day holiday went more smoothly than any holiday I can remember," said Robert. "That is particularly impressive given the sheer volume as well as the number of personalized orders and the fact that we have added Calyx to our operations." The Vermont Teddy Bear Company acquired the net assets and the business of Calyx & Corolla on August 29, 2003. In November 2003, the Company completed the first phase of its plan to integrate certain operations of Calyx & Corolla into its operations in Shelburne, VT. The Company successfully eliminated Calyx's California operations and transitioned Calyx's Florida based information technology, accounting and finance, and human resources functions to Vermont, leaving only the merchandising and brand related marketing functions in the downsized Vero Beach, Florida offices. A Vermont Teddy Bear Company Bear-Gram gift includes a customized Vermont Teddy Bear delivered with a personal greeting card and candy treat, in a colorful gift box with an air hole. Orders are placed by calling 1-800-829- BEAR or by shopping at http://www.vermontteddybear.com/. The PajamaGram Company is a gift delivery service where customers can pamper their loved ones by sending pajamas and spa products in a keepsake hatbox by calling 1-800-GIVE-PJS or shopping at http://www.pajamagram.com/. The TastyGram Company specializes in the delivery of deliciously presented gourmet foods and sweets by calling 1-800-82-TASTY or shopping at http://www.tastygram.com/. Calyx & Corolla delivers premium direct-from-the-grower floral gifts through its catalog, by phone at 1-800-800-7788 or online at http://www.calyxandcorolla.com/. The foregoing can be interpreted as including forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested by the statements above. Contact: Nicole L'Huillier 802-985-1362 DATASOURCE: The Vermont Teddy Bear Company CONTACT: Nicole L'Huillier of The Vermont Teddy Bear Company, +1-802-985- 1362, Web site: http://www.vermontteddybear.com/

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