Calloway's And 3K Reach Settlement Agreement

FORT WORTH, Texas, July 30, 2013 /PRNewswire/ -- Calloway's Nursery, Inc. (PK:CLWY) (or the "Company") and 3K Limited Partnership ("3K") jointly announced today that the Company and 3K have entered into a settlement agreement regarding their proxy contest related to the Company's 2013 Annual Meeting of Shareholders.

Under the terms of the agreement, the Board of Directors will be expanded from five to eight members. Two 3K nominees, Peter H. Kamin and Alan B. Howe, will join the Board, along with David Straus, President and CEO of Sloat Garden Center, Inc. They will join the five Company nominees, James C. Estill, John T. Cosby, John S. Peters, Dr. Stanley Block and Daniel R. Feehan.

Mr. Estill, Chairman of the Board of the Company, said, "We welcome Peter Kamin, Alan Howe and David Straus, major shareholders, to assist the incumbent directors in the continuing effort to create shareholder value."

Mr. Kamin added, "We are pleased to put this disagreement behind us and look forward to working productively with Jim Estill and his colleagues.  We believe that the company has developed a uniquely merchandised store operating format which can position the business for growth both within and outside its core markets.  On behalf of myself and the two other newly nominated Directors, we expect to be able to contribute our experiences in developing high return business models as part of the new Calloway's board."

The Company's Annual Meeting will proceed as scheduled on Wednesday, August 7, 2013 at 8:30 a.m. (CDT) at the Fort Worth Botanic Garden.  Shareholders may still attend and participate in the Annual Meeting.

Founded in 1986, Calloway's Nursery, Inc. www.calloways.com is an 18-store garden center chain serving the Dallas - Fort Worth (as Calloway's Nursery) and Houston (as Cornelius Nursery) markets. The company strives to make gardening fun, easy and successful for customers by offering expert advice from Texas Certified Nursery Professionals; store environments that are educational and easy to shop; weekly gardening clinics that serve both novice and expert gardeners; displays and instructions to aid gardeners with design and color development in their yards; and a product selection of the best plant varieties available.

SOURCE Calloway's Nursery, Inc.