April 8th, 2010

It is not typically our practice to publicly discuss private business matters, but because of the misperceptions that circulated this week on the message boards, we believe it is appropriate to share a brief statement to clarify the facts about the development of Cricut Cake.

In 2009, Linda McClure approached Provo Craft about a method of cutting gum paste, a method with which Provo Craft was already familiar and whose documented development dates as far back as 2007. We reached an informal agreement that provided for Ms. McClure to be compensated at fair market value for her time and consulting services as we prepared to launch Cricut Cake in 2010. She accepted, performed certain activities, and was compensated accordingly.

More recently, Provo Craft and Ms. McClure discussed the possibility of extending a formal consulting agreement. We believe that some of her requests, including both financial and non-financial terms, were unrealistic. Further, Linda was adamant that her requests were non-negotiable. As a result we chose not to enter a long term agreement with her, and unfortunately our relationship deteriorated.

Provo Craft’s initial research and development for Cricut Cake began in 2007. Since then, Provo Craft has conducted extensive market research and consulted with industry leaders, and both professional and aspiring cake decorators. We’re grateful for the valuable input and the enthusiastic support of these individuals, and we look forward to our continued relationship with them. We also hope you share our excitement for the fun possibilities that Cricut Cake will bring to creative kitchens everywhere.