IPO Profile

Celebrate Express
11220-120th Avenue NE, Kirkland, Washington 98033
Tel: 425-250-1061
Web: www.BirthdayExpress.com
Ticker: BDAY
Amount Raised: $49,600,000.00

Description:
Our business model offers a broad assortment of proprietary products, which we internally design and manufacture or directly source, as well as third-party products which we purchase from market suppliers. Our proprietary products, which currently represent over 55% of our sales, serve to differentiate us from competitors and provide a margin advantage relative to our other products, while third-party products allow us to capitalize on market trends. We complement our product mix with a wide variety of accessories, allowing customers to purchase an entire suite of coordinated products from a single source without having to travel to multiple retail locations. Our centralized inventory management maximizes product availability and allows us to customize our product assortment to meet specific customer needs. Our internal product development, manufacturing and sourcing capabilities allow us to develop creative new products and quickly respond to changes in customer demand. We believe that the combination of these factors creates a more compelling shopping experience than traditional retail stores. We launched our Birthday Express brand in 1994, offering customers a wide selection of high-quality children�s theme-based party supplies in customized assortments. We currently offer more than 100 popular children�s themes, including third-party products such as Spider-Man, Finding Nemo and Disney Princesses, as well as over 40 proprietary themes such as Tony Hawk, Unicorn and Disney�s Home on the Range. Each party theme includes as many as 35 products, such as traditional paper goods complemented by activity kits, whimsical party hats, personalized banners and distinctive favor-filled boxes. We offer our party products individually or in bundled party packages ranging in price from approximately $22 to $160, all of which can be customized for the exact number of guests. As a result, our average Birthday Express order contained 20 items during our fiscal year ended May 31, 2004. In addition, our Birthday Express customers receive detailed party planning advice, including suggestions on age-appropriate party activities, recipes and decorating ideas.