SAN FRANCISCO, March 6 /PRNewswire-FirstCall/ -- On March 3, 2006, RedEnvelope, Inc. (referred to herein as "RedEnvelope" or the "Company") granted Frank Buettner an option to purchase 125,000 shares of the Company's common stock in connection with the hiring of Mr. Buettner as its Chief Operating Officer, as announced by the Company on February 23, 2006. The stock option was granted without stockholder approval as an inducement grant pursuant to Nasdaq Marketplace Rule 4350(i)(1)(A)(iv). Mr. Buettner's stock option has an exercise price of $9.56 per share, which was the closing price of the Company's common stock on the date of grant as reported on the Nasdaq National Market. Mr. Buettner's stock option will vest as to 25% of the shares subject to the option six months after the commencement of his employment with RedEnvelope, with the balance of the shares subject to the option to vest in equal monthly installments over the 42-month period thereafter so long as Mr. Buettner is employed by the Company. In the event Mr. Buettner's employment is terminated by the Company without cause, or by Mr. Buettner for certain specified reasons, within 12 months following a change of control of the Company, the stock option will immediately vest as to 100% of any remaining unvested portion of the stock option.
About RedEnvelope, Inc.
RedEnvelope, Inc. is an online retailer of upscale gifts for every occasion, every day. RedEnvelope offers a unique assortment of imaginative gifts through its catalog and website, http://www.redenvelope.com/.
Whether a gift is a token of gratitude or a grand gesture of love, we consider its giving and receiving a cherished occasion in itself. In Asian traditions, gifts are often presented in a simple red envelope -- a timeless symbol of love and appreciation. In the spirit of this tradition, gifts purchased from RedEnvelope are accompanied by a personalized message in a red envelope. We offer an extensive collection of imaginative, original gifts for every occasion, recipient and budget through our website and catalog, as well as customized corporate gift services. Several unique features help guide customers to the gift they want, including: GiftSearch, GiftReminder, ExpressGifts (guaranteed overnight delivery), online customer service, multiple addressing and an inventory system that tracks in real-time to ensure that every item featured on the site is available. Our goal is to make gift giving -- no matter what the occasion -- easy and fun.
MEDIA CONTACT:
Susan Hook
RedEnvelope, Inc.
415-512-6193
INVESTOR CONTACT:
Jordan Goldstein
Financial Dynamics
415-439-4500
