Profile: Gaiam Inc (GAIA.O)

Gaiam, Inc. (Gaiam), incorporated on July 7, 1988, is a lifestyle media company providing a selection of information, media, products and services to customers, who value personal development, wellness, ecological lifestyles, responsible media and conscious community. The Company's media brand is built around its capability to develop and offer media content, products, lifestyle solutions and community to consumers in the lifestyles of health and sustainability (LOHAS) market and the Conscious Media markets. Its operations are vertically integrated from content creation, through product development and sourcing, to customer service and distribution. Gaiam markets its products and services across three segments: business, direct-to-consumer, and solar. The Company distributes the majority of its products in its business and direct to consumer segments from its fulfillment center or drop-ship products directly to customers. It also utilizes a third party replication and fulfillment center for some of its media distribution in business segment.

The LOHAS market consists of five main sectors: Sustainable Economy, covering renewable energy, energy conservation, recycled goods and environmental management services; Healthy Living, including natural and organic foods, dietary supplements and personal care products; Alternative Healthcare, including Health and wellness solutions and alternative health practices; Personal Development, including solutions, information, products and experiences relating to mind, body and spiritual development, and Ecological Lifestyles, including cleaning and household products, organic cotton clothing and bedding, and eco-tourism. Gaiam participates in all five sectors of the LOHAS market with an emphasis on Personal Development, Ecological Lifestyles and Alternative Healthcare. The Conscious Media market also consists of five sectors: Children’s; Family Entertainment; Documentaries; Inspirational Entertainment, and Personal Development. During the year ended December 31, 2008, Gaiam's home media was carried by approximately 73,000 retail stores in the United States alone, and had approximately eight million direct customers. During 2007, the Company's own products accounted for over 75% of its product sales.

The Company’s business segment customers are primarily national retailers, corporate accounts and the media. It conducts its direct to consumer business through direct response marketing programs, catalogs, the Internet and subscription community sales channels. Gaiam designs and installs solar energy systems and related renewable energy products and sustainable living resources through its solar segment. It develops, produces and licenses information and programming targeted to consumers. The Company uses direct response television (DRTV) marketing to promote LOHAS products and services, particularly those aimed at the fitness/wellness market. DRTV marketing is a distribution channel for segments of its LOHAS product suite, and also provides broad marketing support for our retail partners, as well as creating new direct customers. Its branded products are found in Canada, Mexico, Japan, the United Kingdom and Australia. The Company sells its media products to international accounts primarily under licensing agreements.

The Company conducts operations as a solar energy integrator through its wholly owned subsidiary Real Goods Solar, Inc., offering turnkey services, including the design, procurement, installation, grid connection, monitoring, maintenance and referrals for third-party financing of solar energy systems. The Company also sells renewable energy products and sustainable living resources through Real Goods’ nationally distributed catalog and Website. Gaiam offer a variety of LOHAS products directly to the consumer through its catalogs and through some consumer lifestyle publications. It mailed approximately 16.0 million catalogs during the year ended December 31, 2008. Gaiam uses the Internet to sell its products and to provide information on the LOHAS lifestyle. The Company offers approximately 10,000 stock keeping units on its Websites. It promotes its Website through visual media, catalogs, print publications, product packaging and Internet links. Gaiam provides customer support for Internet sales from its in-house call center as a key component of Internet approach. Gaiam offers a variety of subscription paid services. These services include online communities under various brands and subscription clubs. In 2008, it launched a master site for its community at www.gaia.com.

The Company competes with Warner, Disney, Paramount, Fox, Lions Gate, Liberty Media, Nike and Reebok.