PRESS RELEASE- FOR IMMEDIATE RELEASE, April 4, 2004

Farmington Hills, Michigan – October, 2004 – In a September 8th article, The Detroit News reported on the financially troubled Frank’s Nursery line of retail stores. This chain has been in the news since being forced into Chapter 11 bankruptcy in 2001, due to weak sales. In fact, same-store sales, often cited as a key barometer of a company’s health, have decreased 4.2 percent since last year.

Despite taking such actions as changing inventory, and laying off as much as 80 to 90 percent of the company’s corporate staff, stores are still closing, and the company’s stock is in free-fall. The company is behind on payments with many creditors, and its future looks uncertain, according to the News article.

Kenneth J. Dalto, principal consultant of Dalto & Associates commented on the issue, and feels that filing for Chapter 11 for a second time may not be a viable option for the troubled company, since it would require the company to have sufficient resources to repay at least some of their debt to creditors.   Dalto is quoted as saying “You can’t lay off (this much) staff and be a niche player,” adding that the financially-troubled company does not have the resources to go up against the competition from mega-retailers such as Home Depot and Wal-Mart.   Therefore, Dalto says that Frank’s may find it difficult to remain in business.

About Kenneth J. Dalto & Associates

Kenneth J. Dalto & Associates is a business management and financial consulting firm based in Farmington Hills, Michigan. The firm specializes in assisting companies to overcome the most challenging phases of their business life: financial distress; access to capital investment; issues related to business development, growth, market downturn, corporate crisis, restructuring, turnaround, and return to profitability.

Contact: Kenneth J. Dalto & Associates, (248) 855-4090

30777 Northwestern Highway, Suite 200 -- Farmington Hills, MI 48334