1-800-flowers.com today announced a new five-year agreement with America Online Inc. that effectively extends and enhances their e-commerce partnership for two additional years, through August 2005. The new agreement, which is effective October 1, 2000, replaces an existing four-year contract that was announced a year ago. Under the terms of the new agreement, 1-800-flowers.com will continue as the exclusive marketer of fresh-cut flowers across six AOL properties including AOL, AOL.com, CompuServe, Netscape Netcenter, Digital City, and ICQ and receive increased promotions across several AOL properties; AOL will also receive increased cross-promotion in 1-800-flowers.com marketing channels. 1-800-flowers.com said the new agreement provides significant cost savings over the life of the contract, thereby enhancing its ability to attain its stated goal of returning to positive EBITDA in the fourth quarter of fiscal 2001 and for full-year fiscal 2002. Jim McCann, CEO of 1-800-flowers.com, said in a statement released today: "Our company has had eight years of experience in the e-commerce arena, and we know which relationships result in the best return for our marketing spending. AOL is clearly one of the most effective partners we have, and we are extremely pleased to be able to cost effectively extend our relationship and enhance it with increased promotions that we believe will drive more traffic to our web site."
A new 1-800-flowers.com and AOL agreement
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