An Open Letter from Sterling Scott, CEO, GrowLife, Inc., Regarding the DOJ Position Change Regarding Marijuana

growlifeWOODLAND HILLS, Calif., Sept. 11, 2013 /PRNewswire/ — GrowLife, Inc. (PHOT), a provider of highly effective indoor growing technologies and unique lifestyle brands, is pleased to provide its investors with an open letter from Sterling Scott, CEO, GrowLife, Inc.

Dear Investors,

Throughout its history, GrowLife has taken a very measured and conservative approach to the scope of our core business activities, focusing on manufacturing and retail marketing of the sophisticated “picks and shovels” required for the indoor gardening market–including the marijuana market in the U.S.A.  I believe that the recent statement by the Department of Justice (DOJ) represents the most dramatic policy change for the medical and recreational marijuana industry in its history and requires comment by the CEO of the largest fully reporting marijuana related public company in the country.

At GrowLife we do not traffic in hyperbole but I cannot underscore the importance of this paradigm shift by the DOJ.  This is the watershed event that GrowLife, among other public companies, has been awaiting.

Briefly, in layman’s terms, the DOJ position paper released August 29, 2013 gives all 50 states the green-light to implement reasonable marijuana programs, either medical or recreational (or both.)   No doubt this will accelerate activities in the 21 states that already have such programs on the books without fear of federal intervention or reprisal. Moreover, it is likely to reduce the resistance to similar initiatives in the remaining states.  A state legislator who wishes to introduce a cannabis friendly bill now is empowered with the understanding that his law, his state, can set the rules to govern themselves as long as they respect the DOJ’s stated eight federal interest priorities.  In my estimation, this is a catalyst the likes of which the industry has never seen before.

In its position paper, the DOJ has identified the specific federal interests that are vital in such programs.  For the U.S. marijuana industry, this may well be the equivalent of the removal of a major section of the “Berlin Wall.” Information and knowledge should begin now to flow freely, and the misguided stereotypes are likely to fade.  Major media forces are already active in correcting the misinformation analogs of the “iron curtain” with notable persons like Dr. Sanjay Gupta acknowledging to a national audience the value of a much closer look at the medicinal properties of marijuana. We thank these honest souls for their pioneering reporting.

Importantly, for major participants in the equipment and expendables supply to the marijuana industry such as GrowLife, which expects to book over $5,450,000 million in revenue in 2013, the DOJ’s position paper has two almost immediate benefits.  First, it very positively affects our core business opportunities, as I will detail below.  Second, it affords several new opportunities for expansion of GrowLife and its revenue producing activities.

GrowLife’s Core Business

GrowLife’s core business of retail merchandising of company brands along with the thousands of other products that we sell which constitute the sophisticated “picks and shovels” of the marijuana gold rush, may be uniquely and dramatically enhanced by the DOJ position paper.  The reasons are very simple.  (1) The DOJ has removed the major obstacle to the infrastructure investment and build cycles, which was the threat of some unrestrained federal interference with the industry.  (2)  As a result of lowered risk, many cannabis industry infrastructure build plans became active and funded almost within days of the DOJ publication of its position.  (3) Even sectors of the industry that were already growing rapidly such as Colorado, suddenly went into overdrive as evidenced by the recent near doubling of commercial real estate prices and rental rates in many areas around Denver that are suitable for large scale grow operations.  It is a trend that we expect to see repeated in emancipated states across the country.  (4) For the first time, the DOJ position has made it very clear that marijuana produced in legal operations that are “…demonstrably in compliance with a strong and effective state regulatory system” and produced in one state will not in the near term be permitted to cross state lines.   This determination has the desired effect of making marijuana related programs almost purely a state issue, while retaining flexibility in the position of the federal government.

Taken together, the DOJ clarifications on policy and practice are expected to have the very desirable effect of allowing the required infrastructure to be built in each and every state.  In that GrowLife is primarily in the supply business for that infrastructure and sustainment, it is unlikely that a more favorable scenario is possible for the Company and its shareholders.  The DOJ position validates GrowLife’s laser focus on infrastructure and supplies.  In our view, the DOJ position statement has kicked off the largest infrastructure build cycle in the history of the cannabis industry.  GrowLife is very well positioned for the start of that build cycle as it grows across the country and does so with company brands and infrastructure established prior to this catalytic event.

GrowLife’s Business Expansion Opportunities

The DOJ position clarification also appears to have opened a host of new related business opportunities for GrowLife’s focus on “operations” that are fully permitted, licensed and taxed in states across the country.  Like almost all businesses, the legal marijuana business in the U.S. is about relationships that have been cultivated for many years with growers, dispensers, advocates and critics.  GrowLife has many competitive advantages in this regard because our core customers and relationships are the regional growers and dispensers in legal states through our network of retail stores, on-line stores and subject matter experts.  Specifically, we are pre-positioned to participate in cultivation operations with our customers and have abundant opportunities to extend our wholesale and retail operations to every form of permissible and fully permitted, licensed and taxed cannabis oriented business.  Our expanding network of stores (GrowLife has announced expansion plans for more than doubling its store footprint in the next 18 months) may be readily redeployed to support more than simply retailing of grow gear.

Announcement of Advisory Board

In order to ensure that the best minds are actively involved in guiding our business on a continuing basis, and in light of the industry expansion heralded by the DOJ’s recent policy statement, GrowLife is pleased to announce the formation of an Advisory Board to guide the expansion of GrowLife into new business opportunities.  The Advisory Board will specifically advise the Company on acceptable types of new operations and will include legal, medical, political, financial and industry specific advisors with the initial membership acceptances to be announced in groups over the next several weeks.

In my tenure with GrowLife and as an industry advocate in this great country, I have never been more excited. I look forward to the challenge of effectively stewarding GrowLife through this tremendous opportunity.


Sterling Scott
CEO, GrowLife, Inc.

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About GrowLife, Inc.

GrowLife, Inc. (PHOT) ( is a company with core holdings in innovative technology-based products and services for the indoor gardening industry and specialty markets. These brands include, the online hydroponics superstore (, Phototron, producer of hydroponic grow containers, which are designed to grow vegetables, herbs, flowers and fruits in any environment ( as well as bricks and mortar retailers Urban Garden, Rocky Mountain Hydroponics and Evergreen Garden Center ( .

Cautionary Language Concerning Forward-Looking Statements

This release contains “forward-looking statements” that include information relating to future events and future financial and operating performance.  The words “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved.  Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for GrowLife’s products, the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in GrowLife’s filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include statements regarding future sales, costs and market acceptance of products as well as regulatory actions at the State or Federal level.  For a more detailed description of the risk factors and uncertainties affecting GrowLife, Inc. please refer to the Company’s Securities and Exchange Commission filings, which are available at  GrowLife, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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