Closure of Growing and Live Dispatch Business

01 August 2012

Flying Brands Limited (the "Company")

Closure of Growing and Live Dispatch Business

The Company announces that further to the sale of the assets of the retail business of Gardening Direct announced on 9th July 2102, and following a process of consultation with affected staff, it has closed its Growing and Live Despatch Business ("GLD") with effect from 31st July 2012. The closure of the GLD has resulted in the redundancy of sixteen Jersey-based staff.

The Company is in advanced negotiations with Jersey Choice Limited in connection with the proposed lease of the greenhouses and despatch centre at its Retreat Farm property and anticipates that a lease will be concluded in the near future.

The Board is continuing to consider strategic options for the Company and for the maximization of the long-term value of Retreat Farm and will update shareholders at its interim announcement.

For further information, please contact:

Smithfield Consultants 020 7360 4900

John Kiely

James McFarlane