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26 September 2008

Flying Brands Limited ('Flying Brands' or the 'Group')

Trading Update 

Flying Brands, the Jersey-based home shopping group, is today providing an

update on its trading performance since its last announcement on 1 August 2008.

The following series of recent adverse events have had a material impact on year-to-date trading and would affect the Group's performance for the twelve months ending December 2008 if no mitigating action is taken:

 

• The poor weather in August has affected gardening activity in the UK and has therefore depressed customers' response to Gardening Direct's Autumn marketing campaign. An improved performance in September has not offset this negative impact.

• The increase in the global prices of grain has adversely impacted our profit margins for our Garden Bird Supplies business

• The increase in stem costs and postal charges for our Flying Flowers business has adversely impacted our margins

To offset the recent adverse trading and to address the year to date trading shortfall the following actions have been taken:

• Selective price increases have been introduced across the Garden Birds and Flying Flowers businesses to compensate for the rising costs of ingredients and stems. Our pricing remains competitive versus others in the marketplace

• New Christmas catalogue campaigns have been developed for non Flying Flowers customers, who would not normally receive Christmas offers from Flying Brands. This is in line with the strategy announced in August of optimising an under-utilised database.

• In addition, the new Chief Executive, Tricia Killen, has undertaken a thorough review of all marketing activities and implemented industry-proven best practices which will enhance future business results.

Performance in the other brands (Listen2, Benham, Greetings Direct) is currently in line with expectations.

For further information, please contact:

Flying Brands Limited                        01245 228300

Patricia Killen, Chief Executive

Graham Norton, Finance Director

Smithfield Consultants                       020 7360 4900

John Kiely

Notes to editors

Jersey based Flying Brands Limited (LSE: FBDU) is a multi brand home shopping group. Founded in 1981, it was admitted to the Official List of the London Stock Exchange in 1993. The Group operates the following divisions:

  * Gifts (Flying Flowers, the UK's largest flowers by post brand,

despatching nearly one million bouquets a year; Greetings Direct, the UK's

only continuity greeting cards business)

  * Garden (Gardening Direct, one of the UK's largest mail order bedding

plants and gardening products operations; Garden Bird Supplies, a leading

provider of food and accessories for birds and other wildlife; Sarah Raven's

Kitchen and Garden for hard to find plants and household accessories)

  * Entertainment (Listen2, the leading mail order audio books, DVD and video publisher and distributor; Benham, the first day cover stamps and

coins collectables specialist;)

More information can be found at: www.flyingbrands.com

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