1980 This is the year it all begins. Peter and Peggy Rice and Michael Burns found Problem Solvers as a small retail store located on Route 29 in Madison, Virginia. The store, "a center for self-sufficient living," uses an unusual solar design to supplement one wood stove as the primary heat source.

Original merchandise includes wood stoves, chain saws, rototillers, country kitchen items, food preparation and preservation equipment, bird watching items, lawn and garden tools and accessories, and a library of back-to-basics "how-to" books.

Our Catalog Headquarters, 1980.

1981 Problem Solvers launches catalog operations in the fall. 100,000 catalogs are printed and mailed with products selected mostly from the store. Catalog orders are filled by Peggy Rice and her sister Marty from the old granary on the Rice's farm.

Sales results from that first catalog are mixed, but it is the beginning of the future for us. We close our first complete financial year with $228,000 in sales.

1982 Catalog fulfillment moves out of the granary and into the back of the retail store.

1983 As the popularity of our catalog grows, catalog fulfillment moves again, this time into the old Farmers' Cooperative building in downtown Madison.

Looking ahead, we begin to computerize our operations.

1984 We open a second retail store in Ivy, Virginia.

1985 Our flagship store in Madison is decommissioned.

1986 Problem Solvers receives the INC. 500 award as one of America's fastest growing private companies (#301 with a five-year growth rate of 723%!).

1987 Problem Solvers again makes the INC. 500 list of fastest growing companies (#202 at 1,217% five-year growth rate!).

1988 For a third consecutive year, Problem Solvers is listed in the INC. 500 list (#275).

1989 Expanding again, we move our catalog operations into a renovated textile mill in neighboring Orange County. Joining an elite handful of companies, Problem Solvers makes the INC. 500 list for the fourth year (#454 with 624% in sales growth).

1990 We move our retail store from Ivy into the Barracks Road Shopping Center located in Charlottesville, Virginia. The new store is 5,000 square feet and has a unique sidewalk selling area.

In order to preserve what is best about being a small, responsive, family-oriented business, we begin to institute the Quality Improvement Process (QIP) that has become a way of life for us.

1992 Our president and founder, Peter Rice, is selected by Target Marketing magazine as one of America's 100 Most Influential Direct Marketers.

1993 Quality initiatives are implemented throughout the company. Problem solving teams become the cornerstone of our quality efforts.

Needing to expand again, we realize that the Orange facility lacks expansion room even at 80,000 square feet. Land is purchased in Madison, plans drawn, and construction begins on our new 120,000 square foot, state-of-the-art distribution center.

1994 Problem Solvers is selected as a Finalist for the 1993 United States Senate Productivity and Quality Award (USSPQA) for the state of Virginia.

We join with the Direct Marketing Association in the Corporate Environmental Stewardship Challenge.

We enter in a partnership with Madison County Schools to show students how their studies apply in the real world and to develop marketable job skills.

Construction is completed on our new facility and our business moves back to Madison.

1995 Problem Solvers is selected as a Medallist Winner for the 1994 USSPQA. This is the highest award for quality organizations.

Peter Rice is selected Retailer of the Year by the Virginia Retail Merchants Association.

1996 Problem Solvers is selected to host the Federal Executive Institute to train federal executives from across the country in quality management principles.

Our Business/Education Alliance is selected by Governor Allen as a recipient of the 1996 Governor's Award for Educational Partnership.

The company also receives a formal Commendation from the Virginia General Assembly for work in promoting business/educational partnerships throughout Virginia.

1997 Problem Solvers was awarded the Industry Excellence Award by the United States Postal Service in recognition of progressive mailing practices in the mail-order industry.

The Country Store in Madison Virginia

1998 Problem Solvers launches its first Web site with secure ordering and commerce capabilities.

Problem Solvers shareholders sell a majority interest in the company to 1-800-FLOWERS.COM (NASDAQ: FLWS).

A 60,000 square foot addition to the Problem Solvers fulfillment center is completed.

1999 Problem Solvers receives the prestigious Award for Continuing Excellence (ACE) from the Virginia U.S. Senate Productivity and Quality Award Board. The ACE award is awarded to past Medallion recipients demonstrating sustained exemplary performance in quality and productivity. An organization is eligible to apply for the ACE three years after receiving the Medallion.

Problem Solvers launches its second mail order catalog, Problem Solvers Country Home, which specializes in home furnishings and decorative accents. Over 3 million catalogs are printed and mailed, and first-year sales exceed $4 million.

An additional expansion of 115,000 square feet to the Madison Fulfillment center is completed, bringing the total to almost 300,000 square feet.

2000 Problem Solvers celebrates its 20th Anniversary.

Our warehouse is completely re-engineered and a state-of-the-art materials handling system was added to further improve service to our customers.

2001 Two top U.S. children's catalog companies, HearthSong and Magic Cabin Dolls, joined our team. These two catalogs strive to enrich the lives of children and strengthen family relationships by being the trusted source of safe, enduring products, which inspire creativity and imaginative play, teach cooperation and respect, and support the celebration of life.

Our second outlet store opens in Williamsburg, Virginia

2002 Problem Solvers Problem Solvers catalog debuts.

In less than four years since our website's inception, Problem Solvers is the recipient of the Gold I.Merchant Award which recognizes excellence in website marketing.

HearthSong operations are fully integrated into Problem Solvers's corporate headquarters in Madison, Virginia.

2003 Problem Solvers receives the Madison Chamber Award, recognizing the company's contribution to economic growth and stability and commitment to improving the quality of life in Madison and the Commonwealth of Virginia.