The Experiential Agency Signs Letter of Intent to Acquire Alice's Garden, a Chicago Floral and Event Decor Firm XA to Open Floral and Decor Design Centers in Chicago and New York CHICAGO, July 22 /PRNewswire-FirstCall/ -- The Experiential Agency, Inc. ("XA") (OTC BB: EXAG), a major national event marketing firm that serves many Fortune 500 companies, reported that it has signed a letter of intent to acquire Alice's Garden, one of Chicago's most prestigious providers of floral and event decor. The acquisition, which is expected to close in mid-August, is immediately accretive to earnings. In business more than 13 years, Alice's Garden is an award-winning Chicago retail florist as well as a provider of floral and event decor. Alice's Garden has provided floral arrangements and decor for the Four Seasons, Ritz Carlton and Peninsula Hotels as well as visual display services for such distinguished retail stores as Van Cleef & Arpels and Lalique. Jointly, XA and Alice's Garden produced the decor for clients such as The NBA, Six Continents Hotels, W Hotels, AstraZeneca, ABN AMRO and McDonalds Corporation. Darren Andereck will lead a team of eight floral and decor experts that will also be joining XA subsequent to the closing of the acquisition. Coinciding with the addition of the retail floral business, XA announced that it plans to open a state-of-the-art Design Center in Chicago. The center will house the retail store featuring a wide assortment of premium floral and display items as well as a facility to showcase XA's design and fabrication capabilities to clients in an exciting environment. The center will further enable XA's ability to fabricate decor and environmental design elements for its prestigious roster of corporate clients and highly visible brands. The Design Center is expected to open in September. Chairman and CEO Frank Goldstin of XA said, "With Alice's Garden, XA expects to add more than $1 million in revenue in the next 18 months. In addition to acquiring a successful retail business, XA will, most importantly, gain the capability of producing event decor and design elements that we have had to outsource in the past, making each event more profitable. In fact, XA will be the only national event-marketing firm with this strategic, in-house capability." In addition, Goldstin said XA plans to open a flagship Design Center in New York within the course of the next year to complement its already strong New York event marketing presence. Darren Andereck, who recently joined XA as executive vice president and creative director, said, "I am excited about working directly with XA's great management team and its high-profile clients. By combining talents and expertise, we have the capability to create and showcase cutting edge environments in both our design center and retail store. Everyday we will put our creativity on display." The event marketing industry generates nearly $80 billion a year in direct spending, according to a study by Deloitte & Touche LLP. Moreover, corporate spending on event marketing has been growing; it rose 15% in 2003 and it is predicted to generate an additional 15%-to-20% growth in 2004. (Source: PROMO Magazine) About The Experiential Agency, Inc. The Experiential Agency (XA) has full service offices in Chicago, New York and Los Angeles from which it provides corporations and highly visible brands with comprehensive event marketing, design and production services. Since 1989, Chairman and CEO Frank Goldstin and his team have been the creative force behind prestigious, national projects for such clients as The NBA, McDonald's, Song Airlines, Eurex, Olympus, Salvatore Ferragamo, Vogue, W Hotels, ABN AMRO and Emirates Airline. In 2003, Special Events magazine ranked XA as one of the "Top 50 Powerhouse Event Companies in the World." This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. The Experiential Agency, Inc. (OTC BB: EXAG) takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties that is not paid for by the Company. For more information, please contact: Company Investor Relations Media Relations Lara Shipp Truc N. Nguyen Stan Froelich XA Stern & Co. Stern & Co. 312-397-9100 ext. 2399 VP, Investor Relations VP, Media Relations 212-888-0044 212-888-0044 DATASOURCE: The Experiential Agency, Inc. CONTACT: Company, Lara Shipp of XA, +1-312-397-9100 ext. 2399, ; Investor Relations, Truc N. Nguyen, VP, Investor Relations, , or Media Relations, Stan Froelich, VP, Media Relations, , both of Stern & Co., +1-212-888-0044 Web site: http://www.expagency.com/

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