Harry & David Holdings Amends Plan

Harry & David Holdings filed a Second Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement with the US Bankruptcy Court on June 27, 2011. The amended plan seeks the elimination of the PBGC Claims and the Debtors' Senior Notes in exchange for the issuance of new stock and a rights offering allowing the PBGC and the certain Noteholders to purchase 74.9% the new stock contingent for $55 million upon emergence from chapter 11. Noteholders participating in backstop agreement requiring $55 million in new equity financing upon emergence from bankruptcy will receive 50,000 shares in Reorganized Holdings.