| X      | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 FOR THE QUARTERLY PERIOD ENDED June 2, 2007                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                |
|   | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 FOR THE TRANSITION PERIOD FROM ______ TO                _____ |

| Delaware                                                                      | 06-0868496                                          |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (state                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification Number) |
|                                                                          |                                                |
| One                Rockefeller Plaza, New York, New York                      | 10020                                               |
| (Address                of principal executive offices)                       | (Zip                Code)                           |
|                                                                          |                                                |
| Registrant’s                Telephone Number including Area Code        | (212)                218-7910                       |
|                                                                          |                                                |
|                                                                          |                                                |

----

| Yes                x | No                 ̈ |
|----------------------|--------------------------|

| Large                accelerated filer  ̈ | Accelerated                filer x  | Non-accelerated                filer  ̈  |
|-----------------------------------------------|------------------------------------------|---------------------------------------------------|

| Yes                 ̈ | No                x |
|---------------------------|---------------------|

----

| *PART                I -*  |                     | FINANCIAL                INFORMATION                                                        |   |
|----------------------------|--------------------------|---------------------------------------------------------------------------------------------|--------|
|                       |                     |                                                                                        |   |
|                       | *ITEM                1*  | Financial                Statements                                                         |   |
|                       |                     |                                                                                        |   |
|                       |                     | Consolidated                Statements of Operations (unaudited)                            |   |
|                       |                     | 13                and 26 Weeks Ended June 2, 2007 and June 3, 2006                          | 3      |
|                       |                     |                                                                                        |   |
|                       |                     | Consolidated                Balance Sheets (unaudited)                                      |   |
|                       |                     | June                2, 2007 and December 2, 2006                                            | 4      |
|                       |                     |                                                                                        |   |
|                       |                     | Consolidated                Statements of Changes in Stockholders’ Equity (unaudited) |   |
|                       |                     | 26                Weeks Ended June 2, 2007 and June 3, 2006                                 | 5      |
|                       |                     |                                                                                        |   |
|                       |                     | Consolidated                Statements of Cash Flows (unaudited)                            |   |
|                       |                     | 26                Weeks Ended June 2, 2007 and June 3, 2006                                 | 6      |
|                       |                     |                                                                                        |   |
|                       |                     | Notes                to Consolidated Financial Statements (unaudited)                       | 7-19   |
|                       |                     |                                                                                        |   |
|                       | *ITEM                2*  | Management’s                Discussion and Analysis of                                |   |
|                       |                     | Financial                Condition and Results of Operations                                | 20-31  |
|                       |                     |                                                                                        |   |
|                       | *ITEM                3*  | Quantitative                and Qualitative Disclosures About Market Risk                   | 31     |
|                       |                     |                                                                                        |   |
|                       | *ITEM                4*  | Controls                and Procedures                                                      | 31-32  |
|                       |                     |                                                                                        |   |
| *PART                II -* |                     | OTHER                INFORMATION                                                            |   |
|                       |                     |                                                                                        |   |
|                       | *ITEM                1*  | Legal                Proceedings                                                            | 32-33  |
|                       |                     |                                                                                        |   |
|                       | *ITEM                1A* | Risk                Factors                                                                 | 33     |
|                       |                     |                                                                                        |   |
|                       | *ITEM                4*  | Submission                of Matters to a Vote of Security Holders                          | 33-34  |
|                       |                     |                                                                                        |   |
|                       | *ITEM                6*  | Exhibits                                                                                    | 34-36  |
|                       |                     |                                                                                        |   |
|                       |                     | SIGNATURES                                                                                  | 37     |

----

| **PART                I** | **FINANCIAL                INFORMATION** |
|---------------------------|------------------------------------------|
|                      |                                     |
| ITEM                1.    | FINANCIAL                STATEMENTS      |

|                                                                 |   | *For                  the 13 Weeks Ended,* |   | *For                  the 26 Weeks Ended,* |   |
|----------------------------------------------------------------------|--------|--------------------------------------------|--------|--------------------------------------------|--------|
|                                                                 |   | June                  2, 2007              |   | June                  3, 2006              |   | June                  2, 2007 |   | June                  3, 2006 |   |
| Landscape                  nursery net sales                         |   | $                                          | 18,866 |                                       | $      | 21,687 |   | $ | 19,433 |   | $ | 22,362 |   |
| Rental                  revenue and property sales                   |   |                                       | 13,030 |                                       |   | 2,906 |   |   | 17,049 |   |   | 5,920 |   |
| Total                  revenue                                       |   |                                       | 31,896 |                                       |   | 24,593 |   |   | 36,482 |   |   | 28,282 |   |
|                                                                 |   |                                       |   |                                       |   |   |   |   |   |   |   |   |   |
| Costs                  of landscape nursery sales                    |   |                                       | 16,162 |                                       |   | 19,338 |   |   | 16,787 |   |   | 20,020 |   |
| Costs                  related to rental revenue and property sales  |   |                                       | 4,335  |                                       |   | 2,179 |   |   | 7,107 |   |   | 4,732 |   |
| Total                  costs of goods sold                           |   |                                       | 20,497 |                                       |   | 21,517 |   |   | 23,894 |   |   | 24,752 |   |
|                                                                 |   |                                       |   |                                       |   |   |   |   |   |   |   |   |   |
| Gross                  profit                                        |   |                                       | 11,399 |                                       |   | 3,076 |   |   | 12,588 |   |   | 3,530 |   |
| Selling,                  general and administrative expenses        |   |                                       | 3,927  |                                       |   | 3,419 |   |   | 6,865 |   |   | 5,915 |   |
| Operating                  profit (loss)                             |   |                                       | 7,472  |                                       |   | (343 | ) |   | 5,723 |   |   | (2,385 | ) |
| Gain                  on sale of Centaur Media common stock          |   |                                       | 2,397  |                                       |   | - |   |   | 2,397 |   |   | - |   |
| Interest                  expense                                    |   |                                       | (808   | )                                          |   | (762 | ) |   | (1,546 | ) |   | (1,527 | ) |
| Investment                  income                                   |   |                                       | 486    |                                       |   | 589 |   |   | 913 |   |   | 987 |   |
| Income                  (loss) before income tax provision (benefit) |   |                                       | 9,547  |                                       |   | (516 | ) |   | 7,487 |   |   | (2,925 | ) |
| Income                  tax provision (benefit)                      |   |                                       | 3,574  |                                       |   | (183 | ) |   | 2,802 |   |   | (1,090 | ) |
| Net                  income (loss)                                   |   | $                                          | 5,973  |                                       | $      | (333 | ) | $ | 4,685 |   | $ | (1,835 | ) |
|                                                                 |   |                                       |   |                                       |   |   |   |   |   |   |   |   |   |
| Basic                  net income (loss) per common share            |   | $                                          | 1.16   |                                       | $      | (0.07 | ) | $ | 0.91 |   | $ | (0.36 | ) |
| Diluted                  net income (loss) per common share          |   | $                                          | 1.13   |                                       | $      | (0.07 | ) | $ | 0.89 |   | $ | (0.36 | ) |
|                                                                 |   |                                       |   |                                       |   |   |   |   |   |   |   |   |   |

*.*

----

|                                                                                                                 |   | June                  2, 2007 |    | December                  2, 2006 |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|-----------------------------------|--------|
| ASSETS                                                                                                               |   |                          |    |                              |   |
| Current                  Assets:                                                                                     |   |                          |    |                              |   |   |   |
|                     Cash and cash equivalents                                                              |   | $                             | 3,594   |                              | $      | 2,265 |   |
|                     Short-term investments, net                                                            |   |                          | 23,014  |                              |   | 35,973 |   |
|                     Accounts receivable, less allowance of $148                  and                  $143 |   |                          | 13,389  |                              |   | 2,559 |   |
|                     Inventories, net                                                                       |   |                          | 27,668  |                              |   | 30,579 |   |
|                     Deferred income taxes                                                                  |   |                          | 2,227   |                              |   | 2,331 |   |
|                     Other current assets                                                                   |   |                          | 4,112   |                              |   | 7,226 |   |
| Total                  current assets                                                                                |   |                          | 74,004  |                              |   | 80,933 |   |
| Real                  estate held for sale or lease, net                                                             |   |                          | 104,476 |                              |   | 101,544 |   |
| Property                  and equipment, net                                                                         |   |                          | 8,790   |                              |   | 9,144 |   |
| Investment                  in Centaur Media, plc                                                                    |   |                          | 15,877  |                              |   | 18,592 |   |
| Other                  assets                                                                                        |   |                          | 13,325  |                              |   | 6,402 |   |
| Total                  assets                                                                                        |   | $                             | 216,472 |                              | $      | 216,615 |   |
|                                                                                                                 |   |                          |    |                              |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                |   |                          |    |                              |   |   |   |
| Current                  Liabilities:                                                                                |   |                          |    |                              |   |   |   |
|                     Current portion of long-term debt                                                      |   | $                             | 1,248   |                              | $      | 1,197 |   |
|                     Accounts payable and accrued liabilities                                               |   |                          | 7,690   |                              |   | 7,813 |   |
|                     Deferred revenue                                                                       |   |                          | 5,772   |                              |   | 6,245 |   |
| Total                  current liabilities                                                                           |   |                          | 14,710  |                              |   | 15,255 |   |
| Long-term                  debt                                                                                      |   |                          | 50,021  |                              |   | 50,631 |   |
| Deferred                  income taxes                                                                               |   |                          | 5,739   |                              |   | 6,990 |   |
| Other                  noncurrent liabilities                                                                        |   |                          | 4,478   |                              |   | 4,125 |   |
| Total                  liabilities                                                                                   |   |                          | 74,948  |                              |   | 77,001 |   |
|                                                                                                                 |   |                          |    |                              |   |   |   |
| Commitments                  and contingencies (Note 8)                                                              |   |                          |    |                              |   |   |   |
|                                                                                                                 |   |                          |    |                              |   |   |   |
| Stockholders'                  Equity:                                                                               |   |                          |    |                              |   |   |   |
| Common                  stock, par value $0.01 per share, 10,000,000 shares                                          |   |                          |    |                              |   |   |   |
|                     authorized, 5,306,732 and 5,177,709                  shares issued,                    |   |                          |    |                              |   |   |   |
|                     respectively, 5,149,049 and 5,132,663 shares                                           |   |                          |    |                              |   |   |   |
|                     outstanding, respectively                                                              |   |                          | 53      |                              |   | 52 |   |
| Additional                  paid-in capital                                                                          |   |                          | 101,329 |                              |   | 98,549 |   |
| Retained                  earnings                                                                                   |   |                          | 37,062  |                              |   | 32,377 |   |
| Accumulated                  other comprehensive income, net of tax                                                  |   |                          | 8,509   |                              |   | 9,942 |   |
| Treasury                  stock, at cost, 157,683 and 45,046 shares, respectively                                    |   |                          | (5,429  | )                                 |   | (1,306 | ) |
| Total                  stockholders' equity                                                                          |   |                          | 141,524 |                              |   | 139,614 |   |
| Total                  liabilities and stockholders' equity                                                          |   | $                             | 216,472 |                              | $      | 216,615 |   |
|                                                                                                                 |   |                          |    |                              |   |   |   |

**.**

----

|                                                                  |   | **Shares                  of Common Stock Issued** |      | **Common                  Stock** |   | **Additional                  Paid-in Capital** |   | **Retained                  Earnings** |    | **Accumulated                  Other Comprehensive Income** |   | **Treasury                  Stock** |   | **Total** |   | **Total                  Comprehensive Income (Loss)** |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------------|-----------|-----------------------------------|--------|-------------------------------------------------|--------|----------------------------------------|---------|-------------------------------------------------------------|--------|-------------------------------------|--------|-----------|--------|--------------------------------------------------------|--------|
| Balance                  at December 3, 2005                          |   |                                               | 4,999,604 |                              | $      | 50                                              |   | $                                      | 95,339  |                                                        | $      | 32,809                              |   | $         | 4,659  |                                                   | $      | - |   | $ | 132,857 |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Exercise                  of stock options                            |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                     including tax benefit of $806           |   |                                               | 98,672    |                              |   | 1                                               |   |                                   | 1,563   |                                                        |   | -                                   |   |      | -      |                                                   |   | - |   |   | 1,564 |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Stock-based                  compensation expense                     |   |                                               | -         |                              |   | -                                               |   |                                   | 54      |                                                        |   | -                                   |   |      | -      |                                                   |   | - |   |   | 54 |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                             |   |                                               | -         |                              |   | -                                               |   |                                   | -       |                                                        |   | (1,835                              | )      |      | -      |                                                   |   | - |   |   | (1,835 | ) | $ | (1,835 | ) |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income                           |   |                                               | -         |                              |   | -                                               |   |                                   | -       |                                                        |   | -                                   |   |      | 1,500  |                                                   |   | - |   |   | 1,500 |   |   | 1,500 |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Balance                  at June 3, 2006                              |   |                                               | 5,098,276 |                              | $      | 51                                              |   | $                                      | 96,956  |                                                        | $      | 30,974                              |   | $         | 6,159  |                                                   | $      | - |   | $ | 134,140 |   | $ | (335 | ) |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 2, 2006                          |   |                                               | 5,177,709 |                              | $      | 52                                              |   | $                                      | 98,549  |                                                        | $      | 32,377                              |   | $         | 9,942  |                                                   | $      | (1,306 | ) | $ | 139,614 |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Exercise                  of stock options,                           |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                     including tax benefit of $931,          |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                     and shares tendered related to          |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                     stock options exercised                 |   |                                               | 129,023   |                              |   | 1                                               |   |                                   | 2,715   |                                                        |   | -                                   |   |      | -      |                                                   |   | (2,568 | ) |   | 148 |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Stock-based                  compensation expense                     |   |                                               | -         |                              |   | -                                               |   |                                   | 65      |                                                        |   | -                                   |   |      | -      |                                                   |   | - |   |   | 65 |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Repurchase                  of common stock                           |   |                                               | -         |                              |   | -                                               |   |                                   | -       |                                                        |   | -                                   |   |      | -      |                                                   |   | (1,555 | ) |   | (1,555 | ) |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Net                  income                                           |   |                                               | -         |                              |   | -                                               |   |                                   | -       |                                                        |   | 4,685                               |   |      | -      |                                                   |   | - |   |   | 4,685 |   | $ | 4,685 |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Reclassification                  adjustment for                      |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                     gains on the sale of Centaur Media, plc |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                     included in net income                  |   |                                               | -         |                              |   | -                                               |   |                                   | -       |                                                        |   | -                                   |   |      | (1,559 | )                                                      |   | - |   |   | (1,559 | ) |   | (1,559 | ) |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income                           |   |                                               | -         |                              |   | -                                               |   |                                   | -       |                                                        |   | -                                   |   |      | 126    |                                                   |   | - |   |   | 126 |   |   | 126 |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| Balance                  at June 2, 2007                              |   |                                               | 5,306,732 |                              | $      | 53                                              |   | $                                      | 101,329 |                                                        | $      | 37,062                              |   | $         | 8,509  |                                                   | $      | (5,429 | ) | $ | 141,524 |   | $ | 3,252 |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                               |      |                              |   |                                            |   |                                   |    |                                                        |   |                                |   |      |   |                                                   |   |   |   |   |   |   |   |   |   |
| See                  Notes to Consolidated Financial Statements.      |   |

----

|                                                                                                                |   | *For                    the 26 Weeks Ended,* |    |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                                                |   | June                    2, 2007              |    | June                    3, 2006 |   |
| **Operating                    activities:**                                                                        |   |                                         |    |   |   |
| Net                    income (loss)                                                                                |   | $                                            | 4,685   |   | $ | (1,835 | ) |
| Adjustments                    to reconcile net income (loss) to net cash                                           |   |                                         |    |   |   |   |   |
| provided                    by operating activities:                                                                |   |                                         |    |   |   |   |   |
|                       Depreciation and amortization                                                       |   |                                         | 2,861   |   |   | 2,652 |   |
|                       Gain on sales of properties                                                         |   |                                         | (8,409  | ) |   | - |   |
|                       Gain on sale of common stock in Centaur Media, plc                                  |   |                                         | (2,397  | ) |   | - |   |
|                       Deferred income taxes                                                               |   |                                         | (1,213  | ) |   | (15 | ) |
|                       Taxes in other comprehensive income reclassified into net                    income |   |                                         | 853     |   |   | - |   |
|                       Provision for inventory losses                                                      |   |                                         | 350     |   |   | 40 |   |
|                       Unrealized loss (gain) on trading securities                                        |   |                                         | 301     |   |   | (147 | ) |
|                       Stock based compensation expense                                                    |   |                                         | 65      |   |   | 54 |   |
|                       Amortization of debt issuance costs                                                 |   |                                         | 50      |   |   | 41 |   |
|                       Provision for bad debts                                                             |   |                                         | 10      |   |   | 71 |   |
|                       Equity income from investment in agricultural cooperative                           |   |                                         | (7      | ) |   | (151 | ) |
| Changes                    in assets and liabilities:                                                               |   |                                         |    |   |   |   |   |
|                       Short-term investments                                                              |   |                                         | 12,658  |   |   | 12,294 |   |
|                       Accounts receivable                                                                 |   |                                         | (10,840 | ) |   | (12,068 | ) |
|                       Inventories                                                                         |   |                                         | 2,561   |   |   | 4,264 |   |
|                       Other current assets                                                                |   |                                         | 3,652   |   |   | (825 | ) |
|                       Accounts payable and accrued liabilities                                            |   |                                         | 328     |   |   | 943 |   |
|                       Payment of employee withholding taxes on stock options                    exercised |   |                                         | (994    | ) |   | - |   |
|    Mortgage                    escrow accounts                                                       |   |                                         | (576    | ) |   | 75 |   |
|                       Deferred revenue                                                                    |   |                                         | (167    | ) |   | 293 |   |
|                       Other, net                                                                          |   |                                         | (311    | ) |   | (209 | ) |
| Net                    cash provided by operating activities                                                        |   |                                         | 3,460   |   |   | 5,477 |   |
|                                                                                                                |   |                                         |    |   |   |   |   |
| **Investing                    activities:**                                                                        |   |                                         |    |   |   |   |   |
| Proceeds                    from sales of properties, net of expenses                                               |   |                                         | 9,295   |   |   | - |   |
| Increase                    in cash held in escrow by a third party                                                 |   |                                         | (6,325  | ) |   | - |   |
| Additions                    to real estate held for sale or lease                                                  |   |                                         | (6,105  | ) |   | (4,651 | ) |
| Proceeds                    from sale of common stock in Centaur Media, plc                                         |   |                                         | 2,348   |   |   | - |   |
| Additions                    to property and equipment                                                              |   |                                         | (344    | ) |   | (265 | ) |
| Net                    cash used in investing activities                                                            |   |                                         | (1,131  | ) |   | (4,916 | ) |
|                                                                                                                |   |                                         |    |   |   |   |   |
| **Financing                    activities:**                                                                        |   |                                         |    |   |   |   |   |
| Repurchase                    of common stock                                                                       |   |                                         | (1,555  | ) |   | - |   |
| Tax                    benefit of stock options exercised                                                           |   |                                         | 931     |   |   | 806 |   |
| Payments                    of debt                                                                                 |   |                                         | (587    | ) |   | (470 | ) |
| Exercise                    of stock options                                                                        |   |                                         | 211     |   |   | 758 |   |
| Net                    cash (used in) provided by financing activities                                              |   |                                         | (1,000  | ) |   | 1,094 |   |
| Net                    increase in cash and cash equivalents                                                        |   |                                         | 1,329   |   |   | 1,655 |   |
| Cash                    and cash equivalents at beginning of period                                                 |   |                                         | 2,265   |   |   | 1,207 |   |
| Cash                    and cash equivalents at end of period                                                       |   | $                                            | 3,594   |   | $ | 2,862 |   |

----

----

----

|                                                                 |   | *For                  the 13 Weeks Ended,* |   | *For                  the 26 Weeks Ended,* |   |
|----------------------------------------------------------------------|--------|--------------------------------------------|--------|--------------------------------------------|--------|
|                                                                 |   | June                  2, 2007              |   | June                  3, 2006              |   | June                  2, 2007 |   | June                  3, 2006 |   |
| Total                  revenue:                                      |   |                                       |   |                                       |   |   |   |   |   |   |   |   |   |
| Landscape                  nursery net sales                         |   | $                                          | 18,866 |                                       | $      | 21,687 |   | $ | 19,433 |   | $ | 22,362 |   |
| Rental                  revenue and property sales                   |   |                                       | 13,030 |                                       |   | 2,906 |   |   | 17,049 |   |   | 5,920 |   |
|                                                                 |   | $                                          | 31,896 |                                       | $      | 24,593 |   | $ | 36,482 |   | $ | 28,282 |   |
| Operating                  profit (loss):                            |   |                                       |   |                                       |   |   |   |   |   |   |   |   |   |
|                     Landscape nursery                      |   | $                                          | 796    |                                       | $      | 551 |   | $ | (205 | ) | $ | (414 | ) |
|                     Real estate                            |   |                                       | 7,963  |                                       |   | 97 |   |   | 8,509 |   |   | (164 | ) |
|                     Industry segment totals                |   |                                       | 8,759  |                                       |   | 648 |   |   | 8,304 |   |   | (578 | ) |
|                     General corporate expense              |   |                                       | (1,287 | )                                          |   | (991 | ) |   | (2,581 | ) |   | (1,807 | ) |
| Operating                  profit (loss)                             |   |                                       | 7,472  |                                       |   | (343 | ) |   | 5,723 |   |   | (2,385 | ) |
| Gain                  on sale of Centaur Media common stock          |   |                                       | 2,397  |                                       |   | - |   |   | 2,397 |   |   | - |   |
| Interest                  expense                                    |   |                                       | (808   | )                                          |   | (762 | ) |   | (1,546 | ) |   | (1,527 | ) |
| Investment                  income                                   |   |                                       | 486    |                                       |   | 589 |   |   | 913 |   |   | 987 |   |
| Income                  (loss) before income tax provision (benefit) |   | $                                          | 9,547  |                                       | $      | (516 | ) | $ | 7,487 |   | $ | (2,925 | ) |
|                                                                 |   |                                       |   |                                       |   |   |   |   |   |   |   |   |   |

|                                                                   |   |   |                          |   |   |
|------------------------------------------------------------------------|--------|--------|-------------------------------|--------|--------|
| Identifiable                  assets:                                  |   |   | June                  2, 2007 |   |   | December                  2, 2006 |   |
| Landscape                  nursery                                     |   | $      | 50,520                        |   | $      | 42,065 |   |
| Real                  estate                                           |   |   | 118,643                       |   |   | 110,384 |   |
| Industry                  segment totals                               |   |   | 169,163                       |   |   | 152,449 |   |
| General                  corporate (consists primarily of investments) |   |   | 47,309                        |   |   | 64,166 |   |
| Total                  assets                                          |   | $      | 216,472                       |   | $      | 216,615 |   |
|                                                                   |   |   |                          |   |   |   |   |

----

|                                                         |   | June                      2, 2007 |   | December                      2, 2006 |   |
|--------------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------------|--------|
| Nonrecourse                      mortgages:                  |   |                              |   |                                  |   |   |   |
|                         8.54%, due July 1, 2009    |   | $                                 | 7,631  |                                  | $      | 7,681 |   |
|                         6.08%, due January 1, 2013 |   |                              | 8,935  |                                  |   | 9,042 |   |
|                         6.30%, due May 1, 2014     |   |                              | 1,144  |                                  |   | 1,208 |   |
|                         5.73%, due July 1, 2015    |   |                              | 20,865 |                                  |   | 20,983 |   |
|                         8.13%, due April 1, 2016   |   |                              | 5,394  |                                  |   | 5,497 |   |
|                         7.0%, due October 1, 2017  |   |                              | 7,063  |                                  |   | 7,139 |   |
| Total                      nonrecourse mortgages             |   |                              | 51,032 |                                  |   | 51,550 |   |
| Capital                      leases                          |   |                              | 237    |                                  |   | 278 |   |
| Total                                                        |   |                              | 51,269 |                                  |   | 51,828 |   |
| Less:                      current portion                   |   |                              | (1,248 | )                                     |   | (1,197 | ) |
| Total                      long-term debt                    |   | $                                 | 50,021 |                                  | $      | 50,631 |   |
|                                                         |   |                              |   |                                  |   |   |   |

|                                           | *For                        the 26 Weeks Ended,* |
|------------------------------------------------|--------------------------------------------------|
|                                           | June                        2, 2007              |   | June                        3, 2006 |
|                                           |                                             |   |   |
| Expected                        volatility     | 43.43%                                           |   | 43.31% |
| Risk                        free interest rate | 4.65%                                            |   | 5.03% |
| Option                        term             | 8.8                        years                 |   | 8.8                        years |
| Dividend                        yield          | none                                             |   | none |

----

|                                                    |   | *For                      the 26 Weeks Ended,* |     |
|---------------------------------------------------------|--------|------------------------------------------------|----------|
|                                                    |   | June                      2, 2007              |     | June                      3, 2006 |   |
| **Vested                      Options**                 |   | Number                      of Shares          |     | Weighted                      Avg. Exercise Price |   | Number                      of Shares |   | Weighted                      Avg. Exercise Price |   |
| Outstanding                      at beginning of period |   |                                           | 347,300  |   | $ | 13.84 |   |   | 503,857 |   | $ | 12.65 |   |
| Exercised                                               |   |                                           | (129,023 | ) |   | 13.84 |   |   | (98,672 | ) |   | 7.69 |   |
| Vested                                                  |   |                                           | 14,601   |   |   | 19.71 |   |   | 16,736 |   |   | 14.19 |   |
| Outstanding                      at end of period       |   |                                           | 232,878  |   |   | 14.21 |   |   | 421,921 |   |   | 13.87 |   |
|                                                    |   |                                           |     |   |   |   |   |   |   |   |   |   |   |

| Range                        of Exercise Prices for Vested Options |   | Outstanding                        at June                        2, 2007 |    | Weighted                        Avg. Exercise Price |   | Weighted                        Avg. Remaining Contractual Life (in                        years) |   | Total                        Fair Value (in                        thousands) |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|-----------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|
| $9.00-$18.00                                                       |   |                                                                      | 219,392 |                                                | $      | 13.54                                                                                             |   |                                                                          | 2.6    |   | $ | 1,191 |   |
| Over                        $24.00                                 |   |                                                                      | 13,486  |                                                |   | 25.21                                                                                             |   |                                                                          | 7.5    |   |   | 83 |   |
|                                                               |   |                                                                      | 232,878 |                                                |   | 14.21                                                                                             |   |                                                                          | 2.9    |   | $ | 1,274 |   |
|                                                               |   |                                                                      |    |                                                |   |                                                                                              |   |                                                                          |   |   |   |   |   |

|                                                |   | *For                    the 26 Weeks Ended,* |    |
|-----------------------------------------------------|--------|----------------------------------------------|---------|
|                                                |   | June                    2, 2007              |    | June                    3, 2006 |   |
| **Nonvested                    Options**            |   | Number                    of Shares          |    | Weighted                    Avg. Exercise Price |   | Number                    of Shares |   | Weighted                    Avg. Exercise Price |   |
| Nonvested                    at beginning of period |   |                                         | 28,741  |   | $ | 25.27 |   |   | 36,816 |   | $ | 17.78 |   |
| Granted                                             |   |                                         | 4,208   |   |   | 38.00 |   |   | 5,140 |   |   | 31.13 |   |
| Vested                                              |   |                                         | (14,601 | ) |   | 19.71 |   |   | (16,736 | ) |   | 14.19 |   |
| Nonvested                    at end of period       |   |                                         | 18,348  |   |   | 32.62 |   |   | 25,220 |   |   | 22.89 |   |
|                                                |   |                                         |    |   |   |   |   |   |   |   |   |   |   |

| Range                        of Exercise Prices for Nonvested Options |   | Outstanding                        at June                        2, 2007 |   | Weighted                        Avg. Exercise Price |   | Weighted                        Avg. Remaining Contractual Life (in                        years) |   | Total                        Fair Value (in                        thousands) |   |
|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|
| Over                        $24.00                                    |   |                                                                      | 18,348 |                                                | $      | 32.62                                                                                             |   |                                                                          | 9.3    |   | $ | 332 |   |
|                                                                  |   |                                                                      |   |                                                |   |                                                                                              |   |                                                                          |   |   |   |   |   |

| Number                    of option holders at June 2, 2007 |   |   | 19     |   |
|-------------------------------------------------------------|--------|--------|--------|--------|
|                                                        |   |   |   |   |

----

|                                                                     |   | *For                            the 13 Weeks Ended,* |      | *For                            the 26 Weeks Ended,* |   |
|--------------------------------------------------------------------------|--------|------------------------------------------------------|-----------|------------------------------------------------------|--------|
|                                                                     |   | June                            2, 2007              |      | June                            3, 2006              |   | June                            2, 2007 |   | June                            3, 2006 |   |
|                                                                     |   |                                                 |      |                                                 |   |   |   |   |   |
| Net                            income (loss) as reported for computation |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |
| of                            basic and diluted per share results        |   | $                                                    | 5,973     |                                                 | $      | (333 | ) | $ | 4,685 |   | $ | (1,835 | ) |
|                                                                     |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |
| Weighted                            average shares outstanding for       |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |
| computation                            of basic per share results        |   |                                                 | 5,150,000 |                                                 |   | 5,097,000 |   |   | 5,141,000 |   |   | 5,058,000 |   |
|                                                                     |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |
| Incremental                            shares from assumed exercise      |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |
| of                            Griffin stock options (a)                  |   |                                                 | 133,000   |                                                 |   | - |   |   | 143,000 |   |   | - |   |
|                                                                     |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |
| Weighted                            average shares outstanding for       |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |
| computation                            of diluted per share results      |   |                                                 | 5,283,000 |                                                 |   | 5,097,000 |   |   | 5,284,000 |   |   | 5,058,000 |   |
|                                                                     |   |                                                 |      |                                                 |   |   |   |   |   |   |   |   |   |

| (a)  | Incremental                            shares from the assumed exercise of Griffin stock options                            are not included                            in periods where the inclusion of such shares would be                            anti-dilutive. For                            the thirteen and twenty-six weeks ended June 3, 2006,                            the incremental                            shares from the assumed exercise of stock options would                            have been 169,000                            and 190,000, respectively. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Short-Term                  Investments*

----

|                                                |   |                                  |   |                                      |   |   |   |                              |   |
|-----------------------------------------------------|--------|---------------------------------------|--------|-------------------------------------------|--------|--------|--------|-----------------------------------|--------|
|                                                |   | *June                        2, 2007* |   | *December                        2, 2006* |   |
|                                                |   | Cost                                  |   | Fair                        Value         |   | Cost   |   | Fair                        Value |   |
| Federal                        agency coupon notes  |   | $                                     | 12,223 |                                      | $      | 12,364 |   | $                                 | 12,289 |   | $ | 12,440 |   |
| Certificates                        of deposit      |   |                                  | 5,723  |                                      |   | 5,762  |   |                              | 9,069  |   |   | 9,342 |   |
| Commercial                        paper             |   |                                  | 2,573  |                                      |   | 2,574  |   |                              | 14,129 |   |   | 14,191 |   |
| U.S.                        Treasury securities     |   |                                  | 2,310  |                                      |   | 2,314  |   |                              | -      |   |   | - |   |
| Total                        short-term investments |   | $                                     | 22,829 |                                      | $      | 23,014 |   | $                                 | 35,487 |   | $ | 35,973 |   |
|                                                |   |                                  |   |                                      |   |   |   |                              |   |   |   |   |   |

|                                                                           |   | *For                      the 13 Weeks Ended,* |   | *For                      the 26 Weeks Ended,* |   |
|--------------------------------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                           |   | June                      2, 2007              |   | June                      3, 2006              |   | June                      2, 2007 |   | June                      3, 2006 |   |
|                                                                           |   |                                           |   |                                           |   |   |   |   |   |
| Interest                      and dividend income                              |   | $                                              | 182    |                                           | $      | 99 |   | $ | 211 |   | $ | 135 |   |
| Net                      realized gains on the sales of short-term investments |   |                                           | 427    |                                           |   | 434 |   |   | 996 |   |   | 554 |   |
| Net                      unrealized (loss) gain on short-term investments      |   |                                           | (130   | )                                              |   | (95 | ) |   | (301 | ) |   | 147 |   |
| Other                      investment income                                   |   |                                           | 7      |                                           |   | 151 |   |   | 7 |   |   | 151 |   |
|                                                                           |   | $                                              | 486    |                                           | $      | 589 |   | $ | 913 |   | $ | 987 |   |
|                                                                           |   |                                           |   |                                           |   |   |   |   |   |   |   |   |   |

*Other        Investment Income*

*Deferred        Revenue on Land Sale*

----

*Accumulated        Other Comprehensive Income *

----

|                                                                                                |   | *For                    the 26 Weeks Ended,* |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                                                |   | June                    2, 2007              |   | June                    3, 2006 |   |
|                                                                                                |   |                                         |   |   |   |
| Balance                    at beginning of period                                                   |   | $                                            | 9,942  |   | $ | 4,659 |   |
| Reclassification                    adjustment for gains on Centaur Media, plc                      |   |                                         |   |   |   |   |   |
|                       included in net income, net of tax provision of $853                |   |                                         | (1,559 | ) |   | - |   |
| Increase                    in fair value at end of period of Centaur Media, plc,                   |   |                                         |   |   |   |   |   |
|                       net of tax provision of $75 and $452, respectively                  |   |                                         | 141    |   |   | 839 |   |
| (Decrease)                    increase in value of Centaur Media, plc, due to foreign               |   |                                         |   |   |   |   |   |
|                       currency rate changes, net of tax benefit of ($9) and tax provision |   |                                         |   |   |   |   |   |
|                       of $355, respectively                                               |   |                                         | (15    | ) |   | 661 |   |
| Balance                    at end of period                                                         |   | $                                            | 8,509  |   | $ | 6,159 |   |
|                                                                                                |   |                                         |   |   |   |   |   |

*Treasury        Stock*

*Supplemental        Cash Flow Information*

*Inventories*

|                                      |   | June                    2, 2007 |   | December                    2, 2006 |   |
|-------------------------------------------|--------|---------------------------------|--------|-------------------------------------|--------|
|                                      |   |                            |   |                                |   |
| Nursery                    stock          |   | $                               | 26,266 |                                | $      | 29,415 |   |
| Materials                    and supplies |   |                            | 2,649  |                                |   | 2,372 |   |
|                                      |   |                            | 28,915 |                                |   | 31,787 |   |
| Reserves                                  |   |                            | (1,247 | )                                   |   | (1,208 | ) |
|                                      |   | $                               | 27,668 |                                | $      | 30,579 |   |
|                                      |   |                            |   |                                |   |   |   |

----

*Property        and Equipment*

|                                          |   | Estimated                    Useful Lives |                              | June                    2, 2007 |   | December                    2, 2006 |   |
|-----------------------------------------------|--------|-------------------------------------------|-----------------------------------|---------------------------------|--------|-------------------------------------|--------|
| Land                                          |   |                                      |                              |                            | $      | 674                                 |   | $ | 674 |   |
| Land                    improvements          |   |                                      | 10                    to 20 years |                            |   | 5,491                               |   |   | 5,478 |   |
| Buildings                    and improvements |   |                                      | 10                    to 40 years |                            |   | 3,060                               |   |   | 3,060 |   |
| Machinery                    and equipment    |   |                                      | 3                    to 20 years  |                            |   | 17,321                              |   |   | 17,231 |   |
|                                          |   |                                      |                              |                            |   | 26,546                              |   |   | 26,443 |   |
| Accumulated                    depreciation   |   |                                      |                              |                            |   | (17,756                             | )      |   | (17,299 | ) |
|                                          |   |                                      |                              |                            | $      | 8,790                               |   | $ | 9,144 |   |
|                                          |   |                                      |                              |                            |   |                                |   |   |   |   |

*Real        Estate Held for Sale or Lease*

|                                          |   |                                      |                                                                | June                    2, 2007  |   |
|-----------------------------------------------|--------|-------------------------------------------|---------------------------------------------------------------------|----------------------------------|--------|
|                                          |   | Estimated                    Useful Lives |                                                                | Held                    for Sale |   | Held                    for Lease |   | Total |   |
| Land                                          |   |                                      |                                                                |                             | $      | 1,720 |   | $ | 6,341 |   | $ | 8,061 |   |
| Land                    improvements          |   |                                      | 15                    years                                         |                             |   | 12 |   |   | 6,061 |   |   | 6,073 |   |
| Buildings                    and improvements |   |                                      | 10                    to 40 years                                   |                             |   | - |   |   | 88,225 |   |   | 88,225 |   |
| Tenant                    improvements        |   |                                      | Shorter                    of useful life or terms of related lease |                             |   | - |   |   | 9,448 |   |   | 9,448 |   |
| Development                    costs          |   |                                      |                                                                |                             |   | 7,283 |   |   | 9,414 |   |   | 16,697 |   |
|                                          |   |                                      |                                                                |                             |   | 9,015 |   |   | 119,489 |   |   | 128,504 |   |
| Accumulated                    depreciation   |   |                                      |                                                                |                             |   | - |   |   | (24,028 | ) |   | (24,028 | ) |
|                                          |   |                                      |                                                                |                             | $      | 9,015 |   | $ | 95,461 |   | $ | 104,476 |   |
|                                          |   |                                      |                                                                |                             |   |   |   |   |   |   |   |   |   |

----

|                                          |   |                                      |                                                                | December                    2, 2006 |   |
|-----------------------------------------------|--------|-------------------------------------------|---------------------------------------------------------------------|-------------------------------------|--------|
|                                          |   | Estimated                    Useful Lives |                                                                | Held                    for Sale    |   | Held                    for Lease |   | Total |   |
| Land                                          |   |                                      |                                                                |                                | $      | 1,720 |   | $ | 6,396 |   | $ | 8,116 |   |
| Land                    improvements          |   |                                      | 15                    years                                         |                                |   | 12 |   |   | 5,614 |   |   | 5,626 |   |
| Buildings                    and improvements |   |                                      | 10                    to 40 years                                   |                                |   | - |   |   | 81,857 |   |   | 81,857 |   |
| Tenant                    improvements        |   |                                      | Shorter                    of useful life or terms of related lease |                                |   | - |   |   | 9,034 |   |   | 9,034 |   |
| Development                    costs          |   |                                      |                                                                |                                |   | 7,179 |   |   | 12,056 |   |   | 19,235 |   |
|                                          |   |                                      |                                                                |                                |   | 8,911 |   |   | 114,957 |   |   | 123,868 |   |
| Accumulated                    depreciation   |   |                                      |                                                                |                                |   | - |   |   | (22,324 | ) |   | (22,324 | ) |
|                                          |   |                                      |                                                                |                                | $      | 8,911 |   | $ | 92,633 |   | $ | 101,544 |   |
|                                          |   |                                      |                                                                |                                |   |   |   |   |   |   |   |   |   |

*Other        Assets*

*Income        Taxes*

*Postretirement        Benefits*

----

----

----

| ITEM                    2. | MANAGEMENT’S                    DISCUSSION AND ANALYSIS OF FINANCIAL |
|----------------------------|----------------------------------------------------------------------------|
|                       | CONDITION                    AND RESULTS OF OPERATIONS                     |

**Overview**

**Summary**

**Results          of Operations**

**Thirteen          Weeks Ended June 2, 2007 Compared to the Thirteen Weeks Ended June 3,          2006**

----

----

|                                                                                    |   | 2007                                        |   | 2006                             |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|----------------------------------|--------|
|                                                                                    |   | Second                      Qtr.            |   | Second                      Qtr. |   |
|                                                                                    |   | (amounts                      in thousands) |   |
| Rental                      revenue                                                     |   | $                                           | 3,453  |                             | $      | 2,906 |   |
| Costs                      related to rental revenue excluding                          |   |                                        |   |                             |   |   |   |
|                         depreciation and amortization expense (a)             |   |                                        | 1,577  |                             |   | 1,153 |   |
| Profit                      from leasing activities before general and                  |   |                                        |   |                             |   |   |   |
|                         administrative expenses and before depreciation       |   |                                        |   |                             |   |   |   |
|                         and amortization expense (a)                          |   |                                        | 1,876  |                             |   | 1,753 |   |
| Revenue                      from property sales                                        |   |                                        | 9,577  |                             |   | - |   |
| Costs                      related to property sales                                    |   |                                        | 1,654  |                             |   | - |   |
| Gain                      from property sales                                           |   |                                        | 7,923  |                             |   | - |   |
| Profit                      from leasing activities and gain from property sales        |   |                                        |   |                             |   |   |   |
|                         before general and administrative expenses and before |   |                                        |   |                             |   |   |   |
|                         depreciation and and amortization expense (a)         |   |                                        | 9,799  |                             |   | 1,753 |   |
| General                      and administrative expenses excluding depreciation         |   |                                        |   |                             |   |   |   |
|                         and amortization expense (a)                          |   |                                        | (723   | )                                |   | (623 | ) |
| Profit                      before depreciation and amortization expense (a)            |   |                                        | 9,076  |                             |   | 1,130 |   |
| Depreciation                      and amortization expense related to costs of          |   |                                        |   |                             |   |   |   |
|                         rental revenue                                        |   |                                        | (1,104 | )                                |   | (1,026 | ) |
| Depreciation                      and amortization expense - other                      |   |                                        | (9     | )                                |   | (7 | ) |
| Operating                      profit                                                   |   | $                                           | 7,963  |                             | $      | 97 |   |
|                                                                                    |   |                                        |   |                             |   |   |   |

| (a) | The                    costs related to rental revenue excluding depreciation and amortization                    expense, profit from leasing activities before general and administrative                    expenses and before depreciation and amortization expense, general                    and                    administrative expenses excluding depreciation and amortization                    expense,                    and profit before depreciation and amortization expense are disclosures                    not in conformity with accounting principles generally accepted                    in the                    United States of America. They are presented because Griffin                    believes they                    are useful financial indicators for measuring the results in                    its real                    estate business segment. However, they should not be considered                    as an                    alternative to operating profit as a measure of operating results                    in                    accordance with accounting principles generally accepted in the                    United                    States of America. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            |   | 2007                                      |   | 2006                           |   |
|-----------------------------------------------------------------|--------|-------------------------------------------|--------|--------------------------------|--------|
|                                                            |   | Second                    Qtr.            |   | Second                    Qtr. |   |
|                                                            |   | (amounts                    in thousands) |   |
| Net                    sales and other revenue                  |   | $                                         | 18,866 |                           | $      | 21,687 |   |
| Cost                    of goods sold                           |   |                                      | 16,162 |                           |   | 19,338 |   |
| Gross                    profit                                 |   |                                      | 2,704  |                           |   | 2,349 |   |
| Selling,                    general and administrative expenses |   |                                      | 1,908  |                           |   | 1,798 |   |
| Operating                    profit                             |   | $                                         | 796    |                           | $      | 551 |   |
|                                                            |   |                                      |   |                           |   |   |   |

----

**Twenty-Six          Weeks Ended June 2, 2007 Compared to the Twenty-Six Weeks Ended June 3,          2006**

----

|                                                                                    |   | 2007                                        |   | 2006                                  |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------|--------|
|                                                                                    |   | Six                      Month Period       |   | Six                      Month Period |   |
|                                                                                    |   | (amounts                      in thousands) |   |
|                                                                                    |   |                                        |   |                                  |   |
| Rental                      revenue                                                     |   | $                                           | 6,952  |                                  | $      | 5,920 |   |
| Costs                      related to rental revenue excluding                          |   |                                        |   |                                  |   |   |   |
|                         depreciation and amortization expense (a)             |   |                                        | 3,243  |                                  |   | 2,607 |   |
| Profit                      from leasing activities before general and                  |   |                                        |   |                                  |   |   |   |
|                         administrative expenses and before depreciation       |   |                                        |   |                                  |   |   |   |
|                         and amortization expense (a)                          |   |                                        | 3,709  |                                  |   | 3,313 |   |
|                                                                                    |   |                                        |   |                                  |   |   |   |
| Revenue                      from property sales                                        |   |                                        | 10,097 |                                  |   | - |   |
| Costs                      related to property sales                                    |   |                                        | 1,688  |                                  |   | - |   |
| Gain                      from property sales                                           |   |                                        | 8,409  |                                  |   | - |   |
|                                                                                    |   |                                        |   |                                  |   |   |   |
| Profit                      from leasing activities and gain from property sales        |   |                                        |   |                                  |   |   |   |
|                         before general and administrative expenses and before |   |                                        |   |                                  |   |   |   |
|                         depreciation and amortization expense (a)             |   |                                        | 12,118 |                                  |   | 3,313 |   |
| General                      and administrative expenses excluding depreciation         |   |                                        |   |                                  |   |   |   |
|                         and amortization expense (a)                          |   |                                        | (1,414 | )                                     |   | (1,339 | ) |
| Profit                      before depreciation and amortization expense (a)            |   |                                        | 10,704 |                                  |   | 1,974 |   |
| Depreciation                      and amortization expense related to costs of          |   |                                        |   |                                  |   |   |   |
|                         rental revenue                                        |   |                                        | (2,176 | )                                     |   | (2,125 | ) |
| Depreciation                      and amortization expense - other                      |   |                                        | (19    | )                                     |   | (13 | ) |
| Operating                      profit (loss)                                            |   | $                                           | 8,509  |                                  | $      | (164 | ) |
|                                                                                    |   |                                        |   |                                  |   |   |   |

| (a) | The                    costs related to rental revenue excluding depreciation and amortization                    expense, profit from leasing activities before general and administrative                    expenses and before depreciation and amortization expense, general                    and                    administrative expenses excluding depreciation and amortization                    expense,                    and profit before depreciation and amortization expense are disclosures                    not in conformity with accounting principles generally accepted                    in the                    United States of America. They are presented because Griffin                    believes they                    are useful financial indicators for measuring the results in                    its real                    estate business segment. However, they should not be considered                    as an                    alternative to operating profit as a measure of operating results                    in                    accordance with accounting principles generally accepted in the                    United                    States of America. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                              |   | 2007                                        |   | 2006                                  |   |
|-------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------|--------|
|                                                              |   | Six                      Month Period       |   | Six                      Month Period |   |
|                                                              |   | (amounts                      in thousands) |   |
|                                                              |   |                                        |   |                                  |   |
| Net                      sales and other revenue                  |   | $                                           | 19,433 |                                  | $      | 22,362 |   |
| Cost                      of goods sold                           |   |                                        | 16,787 |                                  |   | 20,020 |   |
| Gross                      profit                                 |   |                                        | 2,646  |                                  |   | 2,342 |   |
| Selling,                      general and administrative expenses |   |                                        | 2,851  |                                  |   | 2,756 |   |
| Operating                      loss                               |   | $                                           | (205   | )                                     | $      | (414 | ) |
|                                                              |   |                                        |   |                                  |   |   |   |

----

**Off            Balance Sheet Arrangements**

**Liquidity            and Capital Resources**

----

----

|                                               |   | Total                                |   | Due                        Within One Year |   | Due                        From 1-3 Years |   | Due                        From 3-5 Years |   | Due                        in More Than 5 Years |   |
|----------------------------------------------------|--------|--------------------------------------|--------|--------------------------------------------|--------|-------------------------------------------|--------|-------------------------------------------|--------|-------------------------------------------------|--------|
|                                               |   | (in                        millions) |   |
| Mortgages                                          |   | $                                    | 72.1   |                                       | $      | 4.5                                       |   | $                                         | 15.8   |                                            | $      | 7.5 |   | $ | 44.3 |   |
| Capital                        Lease Obligations   |   |                                 | 0.3    |                                       |   | 0.2                                       |   |                                      | 0.1    |                                            |   | - |   |   | - |   |
| Operating                        Lease Obligations |   |                                 | 0.2    |                                       |   | 0.1                                       |   |                                      | 0.1    |                                            |   | - |   |   | - |   |
| Purchase                        Obligations (1)    |   |                                 | 5.8    |                                       |   | 5.8                                       |   |                                      | -      |                                            |   | - |   |   | - |   |
| Other                        (2)                   |   |                                 | 2.2    |                                       |   | -                                         |   |                                      | -      |                                            |   | - |   |   | 2.2 |   |
|                                               |   | $                                    | 80.6   |                                       | $      | 10.6                                      |   | $                                         | 16.0   |                                            | $      | 7.5 |   | $ | 46.5 |   |
|                                               |   |                                 |   |                                       |   |                                      |   |                                      |   |                                            |   |   |   |   |   |   |

|   | (1) | Includes                      obligations for the construction of the shell of a new industrial                      building                      by Griffin Land, completion of tenant improvements, infrastructure                      improvements in Tradeport and for the purchase of raw materials                      by                      Imperial. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes                      Griffin’s deferred compensation plan and other postretirement benefit                      liabilities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

----

**Forward-Looking                  Information**

----

| ITEM                            3. | QUANTITATIVE                            AND QUALITATIVE DISCLOSURES ABOUT MARKET                            RISK |
|------------------------------------|------------------------------------------------------------------------------------------------------------------|

| ITEM                            4. | CONTROLS                            AND PROCEDURES |
|------------------------------------|----------------------------------------------------|

----

| **PART                              II** | **OTHER                              INFORMATION** |
|------------------------------------------|----------------------------------------------------|

| ITEM                              1. | LEGAL                              PROCEEDINGS |   |
|--------------------------------------|------------------------------------------------|--------|

----

| ITEM                              1A. | RISK                              FACTORS |   |
|---------------------------------------|-------------------------------------------|--------|

|                                |                                                                             |                                                                                                                                                                                                                                                      |
|-------------------------------------|----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ITEM                              4 | Submission                              of Matters to a Vote of Security Holders |                                                                                                                                                                                                                                                      |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                | (a)                                                                              | Annual                              Meeting of Stockholders: May 15, 2007                                                                                                                                                                                 |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                | (b)                                                                              | The                              following were elected as Directors at the Annual Meeting,                              representing                              all of the directors:                                                                  |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                | (c)(i)                                                                           | 1)                              Mr. Winston Churchill, Jr. was elected a Director for                              2007 with 4,090,871                              votes in favor, 995,057 withheld, and 49,735 not                              voting. |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                |                                                                             | 2)                              Mr. Edgar M. Cullman was elected a Director for 2007                              with 4,092,975 votes                              in favor, 992,953 withheld, and 49,735 not voting.                                    |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                |                                                                             | 3)                              Mr. David M. Danziger was elected a Director for 2007                              with 3,904,539 votes                              in favor, 1,181,389 withheld, and 49,735 not voting.                                 |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                |                                                                             | 4)                              Mr. Frederick M. Danziger was elected a Director for                              2007 with 4,092,875                              votes in favor, 993,053 withheld, and 49,735 not                              voting.  |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                |                                                                             | 5)                              Mr. Thomas C. Israel was elected a Director for 2007                              with 4,077,559 votes                              in favor, 1,008,369 withheld, and 49,735 not voting.                                  |
|                                |                                                                             |                                                                                                                                                                                                                                                      |
|                                |                                                                             | 6)                              Mr. Alan Plotkin was elected a Director for 2007 with                              4,092,895 votes in                              favor, 993,033 withheld, and 49,735 not                              voting.           |

----

|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------------|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |                                     | 7)                              Mr. David F. Stein was elected a Director for 2007                              with 3,904,559 votes in                              favor, 1,181,369 withheld, and 49,735 not voting.                                                                                                                                                                                                                                                                                                                                                                  |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | (ii)                                     | The                              authorization of the selection of PricewaterhouseCoopers                              LLP as                              independent registered public accountants for 2007                              was approved with                              4,092,330 votes in favor, 560 opposed, and 1,042,773                              not                              voting.                                                                                                                                                                    |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ITEM                              6 | EXHIBITS                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | Exhibit                              No. | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 3.1                                      | Form                              of Amended and Restated Certificate of Incorporation                              of Griffin Land &                              Nurseries, Inc. (incorporated by reference to the Form                              10 of Griffin Land                              & Nurseries, Inc., filed April 8, 1997, as amended)                                                                                                                                                                                                                      |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 3.2                                      | Form                              of Bylaws of Griffin Land & Nurseries, Inc. (incorporated by reference                              to the Form 10 of Griffin Land & Nurseries, Inc., filed April 8,                              1997, as amended)                                                                                                                                                                                                                                                                                                                      |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 10.1                                     | Form                              of Tax Sharing Agreement among Culbro Corporation,                              Griffin Land &                              Nurseries, Inc. and General Cigar Holdings, Inc. (incorporated                              by                              reference to the Registration Statement on Form S-1                              of General Cigar                              Holdings, Inc., filed December 24, 1996, as amended)                                                                                                       |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 10.4                                     | Form                              of Agricultural Lease between Griffin Land & Nurseries, Inc. and                              General Cigar Holdings, Inc. (incorporated by reference                              to the                              Registration Statement on Form S-1 of General Cigar                              Holdings, Inc., filed                              December 24, 1996, as amended)                                                                                                                                                         |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 10.6                                     | Form                              of 1997 Stock Option Plan of Griffin Land & Nurseries, Inc.                              (incorporated by reference to the Form 10 of Griffin                              Land & Nurseries,                              Inc., filed April 8, 1997, as amended)                                                                                                                                                                                                                                                                              |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 10.7                                     | Form                              of 401(k) Plan of Griffin Land & Nurseries, Inc. (incorporated by                              reference to the Form 10 of Griffin Land & Nurseries, Inc., filed                              April 8, 1997, as amended)                                                                                                                                                                                                                                                                                                                      |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 10.17                                    | Loan                              Agreement dated June 24, 1999 (incorporated by reference                              to Form 10-Q                              dated August 28, 1999, filed October 8, 1999)                                                                                                                                                                                                                                                                                                                                                                         |
|                                |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                | 10.21                                    | Mortgage                              Deed, Security Agreement, Financing Statement and Fixture                              Filing with                              Absolute Assignment of Rents and Leases dated September                              17, 2002 between                              Tradeport Development I, LLC and Farm Bureau Life Insurance                              Company                              (incorporated by reference to Form 10-Q dated August                              31, 2002, filed                              October 11, 2002) |

----

|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.24      | Mortgage                              Deed and Security Agreement dated December 17, 2002                              between Griffin Center                              Development IV, LLC and Webster Bank (incorporated                              by reference to Form                              10-K dated November 30, 2002, filed February 28, 2003)                                                                                                                                                                                                                                      |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.28      | Secured                              Installment Note and First Amendment of Mortgage and                              Loan Documents dated                              April 16, 2004 among Tradeport Development I, LLC,                              and Griffin Land &                              Nurseries, Inc. and Farm Bureau Life Insurance Company                              (incorporated by                              reference to Form 10-Q dated May 29, 2004, filed July                              13, 2004)                                                              |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.29      | Mortgage                              Deed Security Agreement, Fixture Filing, Financing                              Statement and                              Assignment of Leases and Rents dated July 6, 2005 by                              Tradeport Development                              II, LLC in favor of First Sunamerica Life Insurance                              Company (incorporated                              by reference to Form 10-Q dated May 28, 2005, filed                              on November 2,                              2005)                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.30      | Promissory                              Note dated July 6, 2005 (incorporated by reference                              to Form 10-Q dated May                              28, 2005, filed on November 2, 2005)                                                                                                                                                                                                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.31      | Guaranty                              Agreement as of July 6, 2005 by Griffin Land & Nurseries, Inc. in                              favor of Sunamerica Life Insurance Company (incorporated                              by reference to                              Form 10-Q dated May 28, 2005, filed on November 2,                              2005)                                                                                                                                                                                                                                        |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.32      | Amended                              and Restated Mortgage Deed Security Agreement, Fixture                              Filing, Financing                              Statement and Assignment of Leases and Rents dated                              November 16, 2006 by                              Tradeport Development II, LLC in favor of First Sunamerica                              Life Insurance                              Company (incorporated by reference to Form 10-K dated                              December 2, 2006,                              filed February 15, 2007) |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.33      | Amended                              and Restated Promissory Note dated November 16, 2006                              (incorporated by                              reference to Form 10-K dated December 2, 2006, filed                              February 15,                              2007)                                                                                                                                                                                                                                                                                                   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.34      | Guaranty                              Agreement as of November 16, 2006 by Griffin Land & Nurseries, Inc. in                              favor of Sunamerica Life Insurance Company (incorporated                              by reference to                              Form 10-K dated December 2, 2006, filed February 15,                              2007)                                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 14         | Griffin                              Land & Nurseries, Inc. Code of Ethics (incorporated by reference                              to                              Form 10-K dated November 29, 2003, filed February 25, 2004)                                                                                                                                                                                                                                                                                                                                                        |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 21         | Subsidiaries                              of Griffin Land & Nurseries, Inc. (incorporated by reference to the                              Form 10 of Griffin Land & Nurseries, Inc., filed April 8, 1997, as                              amended)                                                                                                                                                                                                                                                                                                                                              |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |  31.1 | Certifications                            of Chief Executive Officer Pursuant to Rule 13a-14(a),                            as Adopted Pursuant                            to Section 302 of the Sarbanes-Oxley Act of                            2002                                                                                                                                                                                                                                                                                                                                                   |

----

|   |   |                                                                                                                                                                                                                              |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 31.2   | Certifications                              of Chief Financial Officer Pursuant to Rule 13a-14(a),                              as Adopted Pursuant                              to Section 302 of the Sarbanes Oxley Act of 2002 |
|   |   |                                                                                                                                                                                                                              |
|   | 32.1   | Certifications                              of Chief Executive Officer Pursuant to 18 U.S.C                                                                                                                                       |
|   |   | Section                              1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley                              Act of                              2002                                                         |
|   |   |                                                                                                                                                                                                                              |
|   | 32.2   | Certifications                              of Chief Financial Officer Pursuant to 18 U.S.C                                                                                                                                       |
|   |   | Section                              1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley                              Act of                              2002                                                         |

----

|                                               |   | GRIFFIN                                LAND & NURSERIES, INC.                                                   |
|----------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|                                               |   |                                                                                                                |
|                                               |   | /s/                                FREDERICK M. DANZIGER                                                            |
| Date:                                July 12, 2007 |   | Frederick                                M. Danziger                                                                |
|                                               |   | President                                and Chief Executive Officer                                                |
|                                               |   |                                                                                                                |
|                                               |   |                                                                                                                |
|                                               |   |  /s/                                ANTHONY J. GALICI                                                          |
| Date:                                July 12, 2007 |   | Anthony                                J. Galici                                                                    |
|                                               |   | Vice                                President, Chief Financial Officer and                                Secretary |

----