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SOUTHRIDGE CAPITAL MANAGEMENT LLC TO REGROW PETALS(TM) AS PREMIER PROVIDER OF HIGH QUALITY FLORAL ARRANGEMENTS AND HOME DECORATIVE ACCENTS

Ridgefield, CT December 19 2003--Southridge Capital Management LLC (“Southridge”), a private investment firm that provides growth capital to public and private small-cap companies, announced today that one of its affiliated entities, Petals Decorative Accents Corporation has acquired the name and assets of Petals, Inc., et al, which has been the subject of a bankruptcy case.

Petals Decorative Accents Corp. plans to launch the new Petals brand in January of 2004 through a new strategic catalog marketing campaign. The new company will offer proprietary imaginative accent products for the home and high-quality permanent botanicals that it will design, manufacture and distribute. Petals’ products will be available through specialized catalog, retail, wholesale and Internet marketing channels. Petals will offer a full line of premium quality products for the home, including floral arrangements, trees and green plant products, lamps, accent furniture and wall art. Click that to browse

“Petals is a nationally recognized premium brand. Customers will continue to look to us for innovative products for the home,” said Phil Schiavoni, CEO of Petals Decorative Accents Corp. “We plan to expand Petals’ product offering and increase sales by developing a creative marketing approach that emphasizes lifestyle enhancement and outstanding design. With Southridge Capital’s financial and managerial commitment, we intend to expand Petals’ distribution channels and to establish Petals as a formidable force in the home decorative accents industry.” Additional channels of distribution being developed by Petals include wholesale, b-to-b corporate sales and affiliate programs with “profile” retailers.

“Through tactical marketing initiatives and product assortment, we intend to diversify Petals’ image and become the major premium provider of decorative accent products for the home,” said Stephen Hicks, founding principal of Southridge Capital Management LLC. “We believe that opening additional channels of distribution for the Petals brand represents one of the single largest opportunities for Petals Decorative Accents in the marketplace and we have very high expectations of success for the new business.”

About Petals Decorative Accents
Petals will offer consumers high-quality permanent botanicals and imaginative accent products for the home. Petals’ products will be widely available through specialized catalog, retail, wholesale and Internet marketing channels.

About Southridge
Since its founding in 1996, Southridge advised funds have provided in excess of $1.0 billion in growth capital to emerging companies. Southridge is committed to funding companies with robust business models in the U.S. and Europe.

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