Exhibit 99.1

HARRY & DAVID HOLDINGS, INC. REPORTS THIRD QUARTER FISCAL 2010 RESULTS

MEDFORD, Oregon, May 5, 2010 – Harry & David Holdings, Inc., announced today financial results for the third fiscal quarter ended March 27, 2010.

Net sales for the 13-week period ended March 27, 2010 decreased 11.6% to $66.2 million, compared to $74.9 million for the same period last year. During the third fiscal quarter, the Company experienced lower sales in all three of its operating segments.

For the third fiscal quarter of this year, consolidated gross profit decreased 24.9% to $17.1 million, compared to last year at $22.7 million on lower sales. Consolidated gross profit margin was 25.8% in fiscal 2010, a 450 basis point decrease from 30.3% in the same period in fiscal 2009. The 450 basis point decline was primarily due to higher delivery unit costs, and higher inventory write-offs, partially offset by the effect of lower overhead costs.

Inventory was $30.9 million at March 27, 2010, versus $41.4 million last year. The 25.4% decrease in inventory was the result of continued efforts by management to optimize the Company’s inventory position.

Cash and short-term investment balances at March 27, 2010 were $46.6 million versus $33.6 million in the same period last year, an increase of 38.7%. As of March 27, 2010 the Company was in compliance with all of its debt covenants.

“We have continued to improve our cash position during a still challenging retail environment by better management of our inventories, reducing expenses and tighter control of capital spending,” said Steven Heyer, Chairman and Chief Executive Officer. “We remain focused on our primary mission of delivering high quality products to our customers for any occasion as we strive to be known for helping people deliver happiness.”

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For the third quarter of fiscal 2010, SG&A expenses were $53.0 million versus $48.8 million last year. SG&A as a percentage of sales increased to 80.1% from 65.1% versus the third quarter of fiscal 2009. The increase was primarily due to increased non-cash stock option compensation expense and higher severance costs, partially offset by lower advertising, payroll and lease expenses. Excluding the increased compensation and severance expenses, SG&A would have been $38.5 million, a reduction of 16.4% versus the prior year.

For the third quarter of fiscal 2010, EBITDA loss from continuing operations (as defined in the “Non-GAAP Financial Measures” section below) was $31.2 million, compared to a loss of $20.9 million in the same period of fiscal 2009. The decrease in EBITDA was primarily attributable to the stock option expense and severance costs incurred in the quarter discussed above.

Operating loss increased $9.8 million to $35.9 million in the third quarter of fiscal 2010, compared to $26.1 million in the same period last year. The pre-tax loss for the third quarter of fiscal 2010 was $40.5 million, compared to pre-tax loss from continuing operations of $30.9 million reported in the same period of fiscal 2009.

The Company’s consolidated net loss for the third quarter of fiscal 2010 was $28.0 million, reflecting an effective tax rate of 31.0%, compared to net loss, which included discontinued operations, of $18.1 million and an effective tax rate of 41.1% for the quarter ended March 28, 2009.

Capital expenditures were $0.1 million for the quarter ended March 27, 2010 versus $1.6 million reported in the same period last year.

Net sales for the thirty-nine week period ended March 27, 2010 were $379.5 million, a decrease of $55.7 million, or 12.8% versus fiscal 2009. EBITDA from continuing operations for the thirty-nine week period ended March 27, 2010 was $20.9 million, a decrease of $5.4 million, versus the prior year inclusive of the stock option expense and severance costs set forth above.

Pre-tax loss from continuing operations for the thirty-nine week period ended March 27, 2010 was $7.5 million, compared to $5.9 million in the thirty-nine week period ended March 28, 2009. Net loss for the year-to-date period in fiscal 2010 was $18.0 million, compared to a net loss of $2.9 million reported in the same period in fiscal 2009.

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The Company’s full interim results for the third fiscal quarter ended March 27, 2010 are expected to be filed with the SEC on its quarterly report on Form 10-Q on May 5, 2010 and will be available on the SEC’s website at www.sec.gov. The Form 10-Q and this third quarter press release is also available on the Company’s corporate website, www.hndcorp.com. Beginning with these results for the third quarter of fiscal 2010, the Company no longer intends to hold quarterly conference calls.

Non-GAAP Financial Measures

This press release presents EBITDA, which we define as earnings before net interest expense, income taxes, depreciation and amortization, is a non-GAAP financial measure within the meaning of applicable SEC rules and regulations. The Company believes that EBITDA is a useful financial measure for assessing operating performance and liquidity. For an explanation of why management believes EBITDA is a useful measure for understanding the Company’s results of operations, a discussion of the limitations of using such measure and a reconciliation of EBITDA to the most comparable GAAP measure, see the discussion following the attached financial information.

Forward-Looking Statements

Certain of the statements in this document constitute forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, projections of earnings, revenues or financial items, statements of the plans, strategies and objectives of management for future operations, statements related to the future performance and growth potential of our brands, statements related to litigation matters, statements related to introducing new core and seasonal merchandise assortments, statements related to reducing returns, replacements and damages, statements related to new marketing initiatives and expanding electronic direct marketing initiatives, statements related to transportation costs, statements related to costs and availability of raw materials, statements related to macroeconomic and retail trends, statements related to our plans to open new retail stores, statements related to implementing new e-commerce functionality, statements related to future comparable store sales, statements related to our income tax provision and effective tax rate, statements related to government regulation, statements related to the use of our available cash, statements related to our project capital expenditures, statements related to the impact of new accounting pronouncements, statements related to the impact of acquisitions, statements related to indemnifications under our agreements, and statements of belief and statements of assumptions underlying

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any of the foregoing. You can identify these and other forward-looking statements by the use of words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of those terms or other comparable terminology.

Risk factors that may affect our results include risks related to market demand for the Company’s products, production capabilities, relationships with customers, implementation of the Company’s business and marketing strategies, competition, fluctuations in energy and other commodity costs, financial leverage, postal rate increases, loss of key management, disruptions in IT, increase in labor costs and the availability of a seasonal workforce and changes in federal and state tax laws, potential effect of extreme weather and pests on crops, government regulation by the FDA and USDA, protection of intellectual property, compliance with environmental regulations and natural disasters, terrorism and acts of war, as well as the other risks included in the Risk Factors set forth in Item 1A of Harry and David’s Annual Report on Form 10-K for the year ended June 27, 2009 filed with the SEC.

You should keep in mind that any forward-looking statements made by the Company in this press release speaks only as of the date on which we make it. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We have no duty to, and no not intend to, update or revise the forward-looking statements after the date of the earnings release except required by law.

About Harry & David Holdings, Inc.

Harry & David Holdings, Inc., headquartered in Medford, Oregon, is a leading multi-channel specialty retailer and producer of branded premium gift-quality fruit and gourmet food products and gifts marketed under the Harry & David®, Wolferman’s® and Cushman’s® brands. Harry and David is a leading lifestyle and gourmet gift company. With a 75-year history of genuine farm-to-table freshness and unsurpassed artisanal quality, Harry and David is legendary for gifts such as the Fruit-of-the-Month Club® packs, featuring top-quality fruit, pampered on the tree, picked at its peak; Royal Riviera® Pears, Oregold® Peaches and Moose Munch® gourmet caramel popcorn made exclusively in our own confectionery. Gifts from Harry and David, Cushman’s Fruit Company and Wolferman’s are designed for festive occasions, entertaining and self enjoyment throughout the year. You can shop our products in our 126 stores and online at www.harryanddavid.com, www.wolfermans.com, and www.honeybell.com.

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— Financial Tables Follow —

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Harry & David Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in Thousands)

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Harry & David Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in Thousands)

(Unaudited)

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Harry & David Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in Thousands)

(Unaudited)

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Harry & David Holdings, Inc. and Subsidiaries

(in Thousands)

(Unaudited)

Reconciliation of EBITDA from Continuing Operations to Net Cash Provided by (Used in) Operating Activities

In the thirteen-week period ended March 27, 2010, net loss and EBITDA from continuing operations included:

In the thirteen-week period ended March 28, 2009, net loss and EBITDA from continuing operations included:

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In the thirty-nine week period ended March 27, 2010, net loss and EBITDA from continuing operations included:

In the thirty-nine week period ended March 28, 2009, net loss and EBITDA from continuing operations included:

(1) Our measure of EBITDA meets the definition of a non-U.S. GAAP financial measure.

EBITDA is defined as earnings before net interest expense, income taxes, depreciation and amortization and is computed on a consistent method from quarter to quarter and year to year.

We use EBITDA, in conjunction with U.S. GAAP measures such as cash flows from operating activities, cash flows from investing activities and cash flows from financing activities, to assess our liquidity, financial leverage and ability to service our outstanding debt. For example, certain covenant and compliance ratios under our revolving credit facility and the indenture governing the outstanding notes use EBITDA, as further adjusted for certain items as defined in each agreement. If we are not able to comply with these covenants, we may not be able to borrow additional amounts, incur more debt to finance our ongoing operations and working capital or take other actions. In addition, the lenders could accelerate the outstanding amounts, which could materially and adversely affect our liquidity and financial position.

We use EBITDA, in conjunction with the other U.S. GAAP measures discussed above, to assess our debt to cash flow leverage, to plan and forecast overall expectations and to evaluate actual results against such expectations; to assess our ability to service existing debt and incur new debt; and to measure the rate of capital expenditure and cash outlays from year to year and to assess our ability to fund future capital and non-capital projects. We believe that, like management, debt and equity investors frequently use (and expect to be able to continue to use) EBITDA to compare debt to cash flow leverage among companies.

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EBITDA, when used as a liquidity measure, has limitations as an analytical tool. These limitations include:

To compensate for these limitations, we analyze EBITDA in conjunction with other U.S. GAAP financial measures impacting liquidity and cash flow, including depreciation and amortization, capital spending and net income in terms of the impact on depreciation and amortization, changes in net working capital, other non-operating income and losses that affect cash flow and liquidity, interest expense and taxes. Similarly, EBITDA should not be considered in isolation or as a substitute for these U.S. GAAP liquidity measures.

We also use EBITDA, in conjunction with U.S. GAAP measures such as operating income and net income, to assess our operating performance and that of each of our businesses and segments. Specifically, we use EBITDA, alongside the U.S. GAAP measures mentioned above, to measure profitability and profit margins and to make budgeting decisions relating to historical performance and future expectations of our segments and business as a whole, and to make performance comparisons of our company compared to other peer companies. We believe that, like management, debt and equity investors frequently use (and expect to be able to continue to use) EBITDA to assess our operating performance and compare it to that of other peer companies.

Furthermore, we use EBITDA (in conjunction with other U.S. GAAP and non-U.S. GAAP measures such as operating income, capital expenditures, taxes and changes in working capital) to measure return on capital employed. EBITDA allows us to determine the cash return before taxes, capital spending and changes in working capital generated by the total equity employed in our company. We believe return on capital employed is a useful measure because it indicates the total returns generated by our business, which, when viewed together with profit margin information, allows us to better evaluate profitability and profit margin trends.

As a performance measure, we also use return on capital employed to assist us in making budgeting decisions related to how debt and equity capital is being employed and how it will be employed in the future. Historical measures of return on capital employed, which include EBITDA, are used in estimating and predicting future return on capital trends. Combined with other U.S. GAAP financial measures, historical return on capital information helps us make decisions about how to employ capital effectively going forward.

However, because EBITDA does not take into account certain of these non-cash items, which do affect our operations and performance, EBITDA has inherent limitations as an operating measure. These limitations include:

To compensate for these limitations we analyze EBITDA alongside other U.S. GAAP financial measures of operating performance, including, operating income, net income and changes in working capital, in terms of the impact on other non-operating income and losses that affect profitability and return on capital. You should not consider EBITDA in isolation or as a substitute for these U.S. GAAP measures of operating performance.

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