| X      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 FOR THE QUARTERLY PERIOD ENDED May 31, 2008      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                               |
|   | 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   ̈                                            |   |                                Non-accelerated      filer   ̈ |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                    |   |                                                                                                                                                                                                                                   |   |
|                      Accelerated      filer   x |   |                      Smaller      reporting company   ̈                                                         |   |

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

----

| PART      I  -  |         | FINANCIAL      INFORMATION                                                        |   |
|---------------------------|--------------|-----------------------------------------------------------------------------------|--------|
|                      |         |                                                                              |   |
|                      | ITEM      1  | Financial      Statements                                                         |   |
|                      |         |                                                                              |   |
|                      |         | Consolidated      Statements of Operations (unaudited)                            |   |
|                      |         | 13      and 26 Weeks Ended May 31, 2008 and June 2, 2007                          | 3      |
|                      |         |                                                                              |   |
|                      |         | Consolidated      Balance Sheets (unaudited)                                      |   |
|                      |         | May      31, 2008 and December 1, 2007                                            | 4      |
|                      |         |                                                                              |   |
|                      |         | Consolidated      Statements of Changes in Stockholders’ Equity (unaudited) |   |
|                      |         | 26      Weeks Ended May 31, 2008 and June 2, 2007                                 | 5      |
|                      |         |                                                                              |   |
|                      |         | Consolidated      Statements of Cash Flows (unaudited)                            |   |
|                      |         | 26      Weeks Ended May 31, 2008 and June 2, 2007                                 | 6      |
|                      |         |                                                                              |   |
|                      |         | Notes      to Consolidated Financial Statements (unaudited)                       | 7-18   |
|                      |         |                                                                              |   |
|                      | ITEM      2  | Management’s      Discussion and Analysis of                                |   |
|                      |         | Financial      Condition and Results of Operations                                | 19-30  |
|                      |         |                                                                              |   |
|                      | 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     |
|                      |         |                                                                              |   |
|                      | ITEM      1A | Risk      Factors                                                                 | 33     |
|                      |         |                                                                              |   |
|                      | ITEM      2  | Unregistered      Sale of Equity Securities and Use of Proceeds                   | 33     |
|                      |         |                                                                              |   |
|                      | ITEM      3  | Not      Applicable                                                               |   |
|                      |         |                                                                              |   |
|                      | ITEM      4  | Submission      of Matters to a Vote of Security Holders                          | 33-34  |
|                      |         |                                                                              |   |
|                      | ITEM      5  | Not      Applicable                                                               |   |
|                      |         |                                                                              |   |
|                      | 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, |   |
|--------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                                                                       |   | May      31, 2008            |   |   | June      2, 2007            |   |   | May      31, 2008 |   |   | June      2, 2007 |   |
| Landscape      nursery net sales                                                           |   | $                            | 17,053 |   |                         | $      | 18,866 |   |   | $ | 17,477 |   |   | $ | 19,433 |   |
| Rental      revenue and property sales                                                     |   |                         | 4,011  |   |                         |   | 13,030 |   |   |   | 8,068 |   |   |   | 17,049 |   |
| Total      revenue                                                                         |   |                         | 21,064 |   |                         |   | 31,896 |   |   |   | 25,545 |   |   |   | 36,482 |   |
|                                                                                       |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Costs      of landscape nursery sales                                                      |   |                         | 14,481 |   |                         |   | 16,162 |   |   |   | 14,919 |   |   |   | 16,787 |   |
| Costs      related to rental revenue and property sales                                    |   |                         | 2,830  |   |                         |   | 4,335 |   |   |   | 6,301 |   |   |   | 7,107 |   |
| Total      costs of goods sold and costs related to rental revenue and property      sales |   |                         | 17,311 |   |                         |   | 20,497 |   |   |   | 21,220 |   |   |   | 23,894 |   |
|                                                                                       |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                          |   |                         | 3,753  |   |                         |   | 11,399 |   |   |   | 4,325 |   |   |   | 12,588 |   |
|                                                                                       |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses                                          |   |                         | 3,712  |   |                         |   | 3,927 |   |   |   | 6,421 |   |   |   | 6,865 |   |
| Operating      profit (loss)                                                               |   |                         | 41     |   |                         |   | 7,472 |   |   |   | (2,096 | ) |   |   | 5,723 |   |
| Gain      on sale of Centaur Media common stock                                            |   |                         | -      |   |                         |   | 2,397 |   |   |   | - |   |   |   | 2,397 |   |
| Interest      expense                                                                      |   |                         | (812   | )      |                         |   | (808 | ) |   |   | (1,661 | ) |   |   | (1,546 | ) |
| Investment      income                                                                     |   |                         | 186    |   |                         |   | 486 |   |   |   | 569 |   |   |   | 913 |   |
| (Loss)      income before income tax (benefit) provision                                   |   |                         | (585   | )      |                         |   | 9,547 |   |   |   | (3,188 | ) |   |   | 7,487 |   |
| Income      tax (benefit) provision                                                        |   |                         | (208   | )      |                         |   | 3,574 |   |   |   | (1,202 | ) |   |   | 2,802 |   |
| Net      (loss) income                                                                     |   | $                            | (377   | )      |                         | $      | 5,973 |   |   | $ | (1,986 | ) |   | $ | 4,685 |   |
|                                                                                       |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic      net (loss) income per common share                                              |   | $                            | (0.07  | )      |                         | $      | 1.16 |   |   | $ | (0.39 | ) |   | $ | 0.91 |   |
|                                                                                       |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      net (loss) income per common share                                            |   | $                            | (0.07  | )      |                         | $      | 1.13 |   |   | $ | (0.39 | ) |   | $ | 0.89 |   |
|                                                                                       |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                    |   | May      31, 2008 |    |   | December      1, 2007 |   |
|-----------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-----------------------|--------|
| ASSETS                                                                                  |   |              |    |   |                  |   |
| Current      Assets:                                                                    |   |              |    |   |                  |   |
|    Cash      and cash equivalents                                        |   | $                 | 4,200   |   |                  | $      | 11,120 |   |
|    Short-term      investments, net                                      |   |              | 13,544  |   |                  |   | 22,875 |   |
|    Accounts      receivable, less allowance of $148 and $124             |   |              | 11,544  |   |                  |   | 2,222 |   |
|    Inventories,      net                                                 |   |              | 29,708  |   |                  |   | 30,374 |   |
|    Deferred      income taxes                                            |   |              | 1,318   |   |                  |   | 1,384 |   |
|    Other      current assets                                             |   |              | 2,906   |   |                  |   | 3,640 |   |
| Total      current assets                                                               |   |              | 63,220  |   |                  |   | 71,615 |   |
| Real      estate held for sale or lease, net                                            |   |              | 112,399 |   |                  |   | 109,644 |   |
| Property      and equipment, net                                                        |   |              | 7,961   |   |                  |   | 8,270 |   |
| Investment      in Centaur Media, plc                                                   |   |              | 7,320   |   |                  |   | 10,308 |   |
| Other      assets                                                                       |   |              | 7,443   |   |                  |   | 6,966 |   |
| Total      assets                                                                       |   | $                 | 198,343 |   |                  | $      | 206,803 |   |
|                                                                                    |   |              |    |   |                  |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                               |   |              |    |   |                  |   |   |   |
| Current      Liabilities:                                                               |   |              |    |   |                  |   |   |   |
|    Current      portion of long-term debt                                |   | $                 | 1,266   |   |                  | $      | 1,239 |   |
|    Accounts      payable and accrued liabilities                         |   |              | 7,400   |   |                  |   | 5,694 |   |
|    Deferred      revenue                                                 |   |              | 1,925   |   |                  |   | 3,141 |   |
| Total      current liabilities                                                          |   |              | 10,591  |   |                  |   | 10,074 |   |
| Long-term      debt                                                                     |   |              | 47,874  |   |                  |   | 48,456 |   |
| Deferred      income taxes                                                              |   |              | 3,736   |   |                  |   | 4,987 |   |
| Other      noncurrent liabilities                                                       |   |              | 4,367   |   |                  |   | 4,383 |   |
| Total      liabilities                                                                  |   |              | 66,568  |   |                  |   | 67,900 |   |
|                                                                                    |   |              |    |   |                  |   |   |   |
| Commitments      and contingencies (Note 7)                                             |   |              |    |   |                  |   |   |   |
|                                                                                    |   |              |    |   |                  |   |   |   |
| Stockholders'      Equity:                                                              |   |              |    |   |                  |   |   |   |
| Common      stock, par value $0.01 per share, 10,000,000 shares                         |   |              |    |   |                  |   |   |   |
|    authorized,      5,329,709 and 5,321,232 shares issued, respectively, |   |              |    |   |                  |   |   |   |
|    and      5,028,027 and 5,092,649 shares outstanding, respectively     |   |              | 53      |   |                  |   | 53 |   |
| Additional      paid-in capital                                                         |   |              | 101,989 |   |                  |   | 101,703 |   |
| Retained      earnings                                                                  |   |              | 37,200  |   |                  |   | 40,199 |   |
| Accumulated      other comprehensive income, net of tax                                 |   |              | 3,060   |   |                  |   | 5,002 |   |
| Treasury      stock, at cost, 301,682 and 228,583 shares, respectively                  |   |              | (10,527 | )      |                  |   | (8,054 | ) |
| Total      stockholders' equity                                                         |   |              | 131,775 |   |                  |   | 138,903 |   |
| Total      liabilities and stockholders' equity                                         |   | $                 | 198,343 |   |                  | $      | 206,803 |   |
|                                                                                    |   |              |    |   |                  |   |   |   |

----

|                                                             | Shares      of Common Stock Issued |      | Common      Stock |   | Additional       Paid-inCapital |   | Retained      Earnings |    | Accumulated      Other Comprehensive Income |   | Treasury Stock |   | Total  |   | Total Comprehensive      Income (Loss) |   |
|------------------------------------------------------------------|-----------------------------------------|-----------|-------------------|--------|--------------------------------------|--------|------------------------|---------|---------------------------------------------|--------|---------------------|--------|--------|--------|---------------------------------------------|--------|
| Balance      at Dec. 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                                    |                                    | -         |              |   | -                                    |   |                   | 65      |                                        |   | -                   |   |   | -      |                                        |   | - |   |   | 65 |   |   |   |
|         expense                                        |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |
| 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,                                 |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|      from      Centaur Media, plc,      |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|      net      of tax                    |                                    | -         |              |   | -                                    |   |                   | -       |                                        |   | -                   |   |   | 126    |                                        |   | - |   |   | 126 |   |   | 126 |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Balance      at June 2, 2007                                     |                                    | 5,306,732 |              | $      | 53                                   |   | $                      | 101,329 |                                        | $      | 37,062              |   | $      | 8,509  |                                        | $      | (5,429 | ) | $ | 141,524 |   | $ | 3,252 |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Balance      at Dec. 1, 2007                                     |                                    | 5,321,232 |              | $      | 53                                   |   | $                      | 101,703 |                                        | $      | 40,199              |   | $      | 5,002  |                                        | $      | (8,054 | ) | $ | 138,903 |   |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Exercise      of stock options,                                  |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|    including      tax benefit of $53,             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|    and      shares tendered related to            |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|    stock      options exercised                   |                                    | 8,477     |              |   | -                                    |   |                   | 186     |                                        |   | -                   |   |   | -      |                                        |   | (136 | ) |   | 50 |   |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation                                    |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|         expense                                        |                                    | -         |              |   | -                                    |   |                   | 100     |                                        |   | -                   |   |   | -      |                                        |   | - |   |   | 100 |   |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Repurchase      of common stock                                  |                                    | -         |              |   | -                                    |   |                   | -       |                                        |   | -                   |   |   | -      |                                        |   | (2,337 | ) |   | (2,337 | ) |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Dividends      declared                                          |                                    | -         |              |   | -                                    |   |                   | -       |                                        |   | (1,013              | )      |   | -      |                                        |   | - |   |   | (1,013 | ) |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Net      loss                                                    |                                    | -         |              |   | -                                    |   |                   | -       |                                        |   | (1,986              | )      |   | -      |                                        |   | - |   |   | (1,986 | ) | $ | (1,986 | ) |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Other      comprehensive loss,                                   |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|     from      Centaur Media, plc,            |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|     net      of tax                          |                                    | -         |              |   | -                                    |   |                   | -       |                                        |   | -                   |   |   | (1,942 | )                                           |   | - |   |   | (1,942 | ) |   | (1,942 | ) |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Balance      at May 31, 2008                                     |                                    | 5,329,709 |              | $      | 53                                   |   | $                      | 101,989 |                                        | $      | 37,200              |   | $      | 3,060  |                                        | $      | (10,527 | ) | $ | 131,775 |   | $ | (3,928 | ) |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|                                                             |                                    |      |              |   |                                 |   |                   |    |                                        |   |                |   |   |   |                                        |   |   |   |   |   |   |   |   |   |
|        See      Notes to Consolidated Financial Statements. |                                    |

----

|                                                                                     |   | For      the 26 Weeks Ended, |   |
|------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                     |   | May      31, 2008            |   |   | June      2, 2007 |   |
| Operating      activities:                                                               |   |                         |   |   |   |   |
| Net      (loss) income                                                                   |   | $                            | (1,986 | ) |   | $ | 4,685 |   |
| Adjustments      to reconcile net (loss) income to net cash                              |   |                         |   |   |   |   |   |   |
| provided      by operating activities:                                                   |   |                         |   |   |   |   |   |   |
|    Depreciation      and amortization                                     |   |                         | 3,147  |   |   |   | 2,861 |   |
|    Gain      on sales of properties                                       |   |                         | (647   | ) |   |   | (8,409 | ) |
|    Provision      for inventory losses                                    |   |                         | 200    |   |   |   | 350 |   |
|    Deferred      income taxes                                             |   |                         | (139   | ) |   |   | (524 | ) |
|    Stock-based      compensation expense                                  |   |                         | 100    |   |   |   | 65 |   |
|    Amortization      of debt issuance costs                               |   |                         | 50     |   |   |   | 50 |   |
|    Change      in unrealized gains on trading securities                  |   |                         | 47     |   |   |   | 301 |   |
|    Payment      of employee withholding taxes on stock options exercised  |   |                         | (37    | ) |   |   | (994 | ) |
|    Provision      for bad debts                                           |   |                         | 25     |   |   |   | 10 |   |
|    Equity      income from equity investment                              |   |                         | (6     | ) |   |   | (7 | ) |
|    Gain      on sale of common stock in Centaur Media, plc                |   |                         | -      |   |   |   | (2,397 | ) |
|    Current      taxes in other comprehensive income reclassified into net |   |                         |   |   |   |   |   |   |
|       income                                               |   |                         | -      |   |   |   | 164 |   |
| Changes      in assets and liabilities which increased (decreased)cash:                  |   |                         |   |   |   |   |   |   |
|    Short-term      investments                                            |   |                         | 9,284  |   |   |   | 12,658 |   |
|    Accounts      receivable                                               |   |                         | (9,347 | ) |   |   | (10,840 | ) |
|    Inventories                                                            |   |                         | 466    |   |   |   | 2,561 |   |
|    Other      current assets                                              |   |                         | 734    |   |   |   | 3,652 |   |
|    Accounts      payable and accrued liabilities                          |   |                         | 1,276  |   |   |   | 328 |   |
|    Deferred      revenue                                                  |   |                         | (556   | ) |   |   | (167 | ) |
|    Other      noncurrent assets and noncurrent liabilities, net           |   |                         | (586   | ) |   |   | (887 | ) |
| Net      cash provided by operating activities                                           |   |                         | 2,025  |   |   |   | 3,460 |   |
|                                                                                     |   |                         |   |   |   |   |   |   |
| Investing      activities:                                                               |   |                         |   |   |   |   |   |   |
| Additions      to real estate held for sale or lease                                     |   |                         | (4,732 | ) |   |   | (6,105 | ) |
| Additions      to property and equipment                                                 |   |                         | (320   | ) |   |   | (344 | ) |
| Proceeds      from sales of properties, net of expenses                                  |   |                         | -      |   |   |   | 9,295 |   |
| Increase      in cash held in escrow by a third party                                    |   |                         | -      |   |   |   | (6,325 | ) |
| Proceeds      from sale of common stock in Centaur Media, plc                            |   |                         | -      |   |   |   | 2,348 |   |
| Net      cash used in investing activities                                               |   |                         | (5,052 | ) |   |   | (1,131 | ) |
|                                                                                     |   |                         |   |   |   |   |   |   |
| Financing      activities:                                                               |   |                         |   |   |   |   |   |   |
| Repurchase      of common stock                                                          |   |                         | (2,337 | ) |   |   | (1,555 | ) |
| Dividends      paid to stockholders                                                      |   |                         | (1,018 | ) |   |   | - |   |
| Payments      of debt                                                                    |   |                         | (625   | ) |   |   | (587 | ) |
| Tax      benefit of stock options exercised                                              |   |                         | 53     |   |   |   | 931 |   |
| Exercise      of stock options                                                           |   |                         | 34     |   |   |   | 211 |   |
| Net      cash used in financing activities                                               |   |                         | (3,893 | ) |   |   | (1,000 | ) |
| Net      (decrease) increase in cash and cash equivalents                                |   |                         | (6,920 | ) |   |   | 1,329 |   |
| Cash      and cash equivalents at beginning of period                                    |   |                         | 11,120 |   |   |   | 2,265 |   |
| Cash      and cash equivalents at end of period                                          |   | $                            | 4,200  |   |   | $ | 3,594 |   |
|                                                                                     |   |                         |   |   |   |   |   |   |

----

----

|                                                     |   | For      the 13 Weeks Ended, |   |   | For      the 26 Weeks Ended, |   |
|----------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                                     |   | May      31, 2008       |   |   | June      2, 2007       |   |   | May      31, 2008 |   |   | June      2, 2007 |   |
| Total      revenue:                                      |   |                         |   |   |                         |   |   |   |   |   |   |   |
| Landscape      nursery net sales                         |   | $                            | 17,053 |   |                         | $      | 18,866 |   |   | $ | 17,477 |   |   | $ | 19,433 |   |
| Rental      revenue and property sales                   |   |                         | 4,011  |   |                         |   | 13,030 |   |   |   | 8,068 |   |   |   | 17,049 |   |
|                                                     |   | $                            | 21,064 |   |                         | $      | 31,896 |   |   | $ | 25,545 |   |   | $ | 36,482 |   |
| Operating      profit (loss):                            |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|    Landscape      nursery                 |   | $                            | 817    |   |                         | $      | 796 |   |   | $ | (154 | ) |   | $ | (205 | ) |
|    Real      estate                       |   |                         | 454    |   |                         |   | 7,963 |   |   |   | 386 |   |   |   | 8,509 |   |
|    Industry      segment totals           |   |                         | 1,271  |   |                         |   | 8,759 |   |   |   | 232 |   |   |   | 8,304 |   |
|    General      corporate expense         |   |                         | (1,230 | )      |                         |   | (1,287 | ) |   |   | (2,328 | ) |   |   | (2,581 | ) |
| Operating      profit (loss)                             |   |                         | 41     |   |                         |   | 7,472 |   |   |   | (2,096 | ) |   |   | 5,723 |   |
| Gain      on sale of Centaur Media common stock          |   |                         | -      |   |                         |   | 2,397 |   |   |   | - |   |   |   | 2,397 |   |
| Interest      expense                                    |   |                         | (812   | )      |                         |   | (808 | ) |   |   | (1,661 | ) |   |   | (1,546 | ) |
| Investment      income                                   |   |                         | 186    |   |                         |   | 486 |   |   |   | 569 |   |   |   | 913 |   |
| (Loss)      income before income tax (benefit) provision |   | $                            | (585   | )      |                         | $      | 9,547 |   |   | $ | (3,188 | ) |   | $ | 7,487 |   |
|                                                     |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                       |   |              |    |   |                  |   |
|------------------------------------------------------------|--------|-------------------|---------|--------|-----------------------|--------|
| Identifiable      assets:                                  |   | May      31, 2008 |    |   | December      1, 2007 |   |
| Landscape      nursery                                     |   | $                 | 49,725  |   |                  | $      | 42,107 |   |
| Real      estate                                           |   |              | 120,559 |   |                  |   | 118,121 |   |
| Industry      segment totals                               |   |              | 170,284 |   |                  |   | 160,228 |   |
| General      corporate (consists primarily of investments) |   |              | 28,059  |   |                  |   | 46,575 |   |
| Total      assets                                          |   | $                 | 198,343 |   |                  | $      | 206,803 |   |
|                                                       |   |              |    |   |                  |   |   |   |

|                                                    |   | May      31, 2008 |   |   | December      1, 2007 |   |
|---------------------------------------------------------|--------|-------------------|--------|--------|-----------------------|--------|
| Nonrecourse      mortgages:                             |   |              |   |   |                  |   |
|     8.54%,      due July 1, 2009    |   | $                 | 7,533  |   |                  | $      | 7,585 |   |
|     6.08%,      due January 1, 2013 |   |              | 7,734  |   |                  |   | 7,834 |   |
|     6.30%,      due May 1, 2014     |   |              | 1,010  |   |                  |   | 1,078 |   |
|     5.73%,      due July 1, 2015    |   |              | 20,571 |   |                  |   | 20,721 |   |
|     8.13%,      due April 1, 2016   |   |              | 5,176  |   |                  |   | 5,287 |   |
|     7.0%,      due October 1, 2017  |   |              | 6,901  |   |                  |   | 6,983 |   |
| Total      nonrecourse mortgages                        |   |              | 48,925 |   |                  |   | 49,488 |   |
| Capital      leases                                     |   |              | 215    |   |                  |   | 207 |   |
| Total                                                   |   |              | 49,140 |   |                  |   | 49,695 |   |
| Less:      current portion                              |   |              | (1,266 | )      |                  |   | (1,239 | ) |
| Total      long-term debt                               |   | $                 | 47,874 |   |                  | $      | 48,456 |   |
|                                                    |   |              |   |   |                  |   |   |   |

----

|                                                            |   | For      the 13 Weeks Ended, |      |   | For      the 26 Weeks Ended, |   |
|-----------------------------------------------------------------|--------|------------------------------|-----------|--------|------------------------------|--------|
|                                                            |   | May      31, 2008       |      |   | June      2, 2007       |   |   | May      31, 2008 |   |   | June      2, 2007 |   |
|                                                            |   |                         |      |   |                         |   |   |   |   |   |   |   |
| Net      (loss) income as reported for computation              |   |                         |      |   |                         |   |   |   |   |   |   |   |
| of      basic and diluted per share results                     |   | $                            | (377      | )      |                         | $      | 5,973 |   |   | $ | (1,986 | ) |   | $ | 4,685 |   |
|                                                            |   |                         |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding for                    |   |                         |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|    computation      of basic per share results   |   |                         | 5,042,000 |   |                         |   | 5,150,000 |   |   |   | 5,067,000 |   |   |   | 5,141,000 |   |
|                                                            |   |                         |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |                         | 5,042,000 |   |                         |   | 5,283,000 |   |   |   | 5,067,000 |   |   |   | 5,284,000 |   |
|                                                            |   |                         |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |

| (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.  The incremental shares from the assumed exercise      of stock options for the thirteen and twenty-six weeks ended May 31, 2008      would have been 94,000 and 96,000,respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                         |  For      the 26 Weeks Ended, |   |
|--------|------------------------------|------------------------------------|--------|
|   |                         | May      31, 2008                  |   | June      2, 2007 |   |
|   |                         |                               |   |   |   |
|   | Expected      volatility     | 38.6%      to 41.1%                |   | 43.4% |   |
|   | Risk      free interest rate | 3.5%                               |   | 4.7% |   |
|   | Expected      option term    |  7      to 8 years            |   |  8.8      years |   |
|   | Annual      dividend yield   | $0.40                              |   |  none |   |

----

|                                    |   | For      the 26 Weeks Ended, |    |
|-----------------------------------------|--------|------------------------------|---------|
|                                    |   | May      31, 2008            |    |   | June      2, 2007 |   |
| Vested      Options                     |   | Number      of Shares        |    | Weighted      Avg. Exercise Price |   | Number      of Shares |   | Weighted      Avg. Exercise Price |   |
| Outstanding      at beginning of period |   |                         | 218,378 |   |   | $ | 14.13 |   |   |   | 347,300 |   |   | $ | 13.84 |   |
| Exercised                               |   |                         | (8,477  | ) |   | $ | 15.72 |   |   |   | (129,023 | ) |   | $ | 13.84 |   |
| Vested                                  |   |                         | 5,140   |   |   | $ | 31.13 |   |   |   | 14,601 |   |   | $ | 19.71 |   |
| Outstanding      at end of period       |   |                         | 215,041 |   |   | $ | 14.48 |   |   |   | 232,878 |   |   | $ | 14.21 |   |
|                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Range      of Exercise Prices for Vested Options |   | Outstanding      at May 31, 2008 |    |   | Weighted      Avg. Exercise Price |   |   | Weighted      Avg. Remaining Contractual Life (in      years) |   |   | Total      Fair Value |   |
|--------------------------------------------------|--------|---------------------------------------|---------|--------|-----------------------------------|--------|--------|--------------------------------------------------------------------|--------|--------|-----------------------|--------|
| $9.00-$18.00                                     |   |                                  | 196,415 |   |                              | $      | 13.30  |                                                               |   |   | 1.5                   |   |   | $ | 1,032 |   |
| Over      $24.00                                 |   |                                  | 18,626  |   |                              | $      | 26.84  |                                                               |   |   | 6.9                   |   |   |   | 248 |   |
|                                             |   |                                  | 215,041 |   |                              | $      | 14.48  |                                                               |   |   | 2.0                   |   |   | $ | 1,280 |   |
|                                             |   |                                  |    |   |                              |   |   |                                                               |   |   |                  |   |   |   |   |   |

|                                 |   | For      the 26 Weeks Ended, |   |
|--------------------------------------|--------|------------------------------|--------|
|                                 |   | May      31, 2008            |   |   | June      2, 2007 |   |
| Unvested      Options                |   | Number      of Shares        |   | Weighted      Avg. Exercise Price |   | Number      of Shares |   | Weighted      Avg. Exercise Price |   |
| Unvested      at beginning of period |   |                         | 18,348 |   |   | $ | 32.62 |   |   |   | 28,741 |   |   | $ | 25.27 |   |
| Granted                              |   |                         | 29,704 |   |   | $ | 34.03 |   |   |   | 4,208 |   |   | $ | 38.00 |   |
| Vested                               |   |                         | (5,140 | ) |   | $ | 31.13 |   |   |   | (14,601 | ) |   | $ | 19.71 |   |
| Unvested      at end of period       |   |                         | 42,912 |   |   | $ | 33.78 |   |   |   | 18,348 |   |   | $ | 32.62 |   |
|                                 |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Range      of Exercise Prices for Unvested Options |   | Outstanding      at May 31, 2008 |   |   | Weighted      Avg. Exercise Price |   |   | Weighted      Avg. Remaining Contractual Life (in      years) |   |   | Total      Fair Value |   |
|----------------------------------------------------|--------|---------------------------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------------------------------------------|--------|--------|-----------------------|--------|
| Over      $24.00                                   |   |                                  | 42,912 |   |                              | $      | 33.78  |                                                               |   |   | 9.3                   |   |   | $ | 678 |   |
|                                               |   |                                  |   |   |                              |   |   |                                                               |   |   |                  |   |   |   |   |   |

|   | Number      of option holders at May 31, 2008 |  19 |   |
|--------|-----------------------------------------------|----------|--------|
|   |                                          |     |   |

| Remainder      of Fiscal 2008 |   | $      103 |
|-------------------------------|--------|------------|
| Fiscal      2009              |   | $      175 |
| Fiscal      2010              |   | $      124 |
| Fiscal      2011              |   | $      64  |
| Fiscal      2012              |   | $      27  |
| Fiscal      2013              |   | $      2   |

----

|                                                                        |   | For      the 26 Weeks Ended, |   |
|-----------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                        |   | May      31, 2008            |   |   | June      2, 2007 |   |
|                                                                        |   |                         |   |   |   |   |
| Balance      at beginning of period                                         |   | $                            | 5,002  |   |   | $ | 9,942 |   |
| Reclassification      adjustment for gains on Centaur Media, plc            |   |                         |   |   |   |   |   |   |
|    included      in net income, net of tax provision of $853 |   |                         | -      |   |   |   | (1,559 | ) |
| (Decrease)      increase in fair value of Centaur Media, net of taxes of    |   |                         |   |   |   |   |   |   |
|    ($950)      and $75, respectively                         |   |                         | (1,763 | ) |   |   | 141 |   |
| Decrease      in fair value of Centaur Media, due to exchange               |   |                         |   |   |   |   |   |   |
|    loss,      net of taxes of ($96) and ($9), respectively   |   |                         | (179   | ) |   |   | (15 | ) |
| Balance      at end of period                                               |   | $                            | 3,060  |   |   | $ | 8,509 |   |
|                                                                        |   |                         |   |   |   |   |   |   |

|                              |   | May      31, 2008 |   |   | December      1, 2007 |   |
|-----------------------------------|--------|-------------------|--------|--------|-----------------------|--------|
|                              |   | Cost              |   |   | Fair      Value       |   |   | Cost |   |   | Fair      Value |   |
| U.S.      Treasury securities     |   | $                 | 9,949  |   |                  | $      | 9,940 |   |   | $ | 10,930 |   |   | $ | 10,970 |   |
| Certificates      of deposit      |   |              | 246    |   |                  |   | 246 |   |   |   | 454 |   |   |   | 454 |   |
| Federal      agency coupon notes  |   |              | 3,355  |   |                  |   | 3,358 |   |   |   | 11,450 |   |   |   | 11,451 |   |
| Total      short-term investments |   | $                 | 13,550 |   |                  | $      | 13,544 |   |   | $ | 22,834 |   |   | $ | 22,875 |   |
|                              |   |              |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                           |   | For      the 13 Weeks Ended, |   |   | For      the 26 Weeks Ended, |   |
|----------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                                           |   | May      31, 2008            |   |   | June      2, 2007            |   |   | May      31, 2008 |   |   | June      2, 2007 |   |
|                                                           |   |                         |   |   |                         |   |   |   |   |   |   |   |
| Interest      and dividend income                              |   | $                            | 153    |   |                         | $      | 182 |   |   | $ | 190 |   |   | $ | 211 |   |
| Net      realized gains on the sales of short-term investments |   |                         | 219    |   |                         |   | 427 |   |   |   | 420 |   |   |   | 996 |   |
| Change      in unrealized gains on short-term investments      |   |                         | (192   | )      |                         |   | (130 | ) |   |   | (47 | ) |   |   | (301 | ) |
| Other      investment income                                   |   |                         | 6      |   |                         |   | 7 |   |   |   | 6 |   |   |   | 7 |   |
|                                                           |   | $                            | 186    |   |                         | $      | 486 |   |   | $ | 569 |   |   | $ | 913 |   |
|                                                           |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |

----

|                        |   | May      31, 2008 |   |   | December      1, 2007 |   |
|-----------------------------|--------|-------------------|--------|--------|-----------------------|--------|
|                        |   |              |   |   |                  |   |
| Nursery      stock          |   | $                 | 27,846 |   |                  | $      | 29,228 |   |
| Materials      and supplies |   |              | 2,730  |   |                  |   | 1,913 |   |
|                        |   |              | 30,576 |   |                  |   | 31,141 |   |
| Reserves                    |   |              | (868   | )      |                  |   | (767 | ) |
|                        |   | $                 | 29,708 |   |                  | $      | 30,374 |   |
|                        |   |              |   |   |                  |   |   |   |

----

|                            | Estimated Useful      Lives |   | May      31, 2008 |    |   | December      1, 2007 |   |
|---------------------------------|----------------------------------|--------|-------------------|---------|--------|-----------------------|--------|
| Land                            |                             |   | $                 | 674     |   |                  | $      | 674 |   |
| Land      improvements          | 10      to 20 years              |   |              | 5,550   |   |                  |   | 5,550 |   |
| Buildings      and improvements | 10      to 40 years              |   |              | 3,060   |   |                  |   | 3,060 |   |
| Machinery      and equipment    | 3      to 20 years               |   |              | 17,737  |   |                  |   | 17,381 |   |
|                            |                             |   |              | 27,021  |   |                  |   | 26,665 |   |
| Accumulated      depreciation   |                             |   |              | (19,060 | )      |                  |   | (18,395 | ) |
|                            |                             |   | $                 | 7,961   |   |                  | $      | 8,270 |   |
|                            |                             |   |              |    |   |                  |   |   |   |

|                            |                                                 |   | May      31, 2008  |   |
|---------------------------------|------------------------------------------------------|--------|--------------------|--------|
|                            | Estimated Useful      Lives                     |   | Held      for Sale |   |   | Held      for Lease |   |   | Total |   |
| Land                            |                                                 |   | $                  | 1,696  |   |   | $ | 7,770 |   |   | $ | 9,466 |   |
| Land      improvements          | 10      to 30 years                                  |   |               | 690    |   |   |   | 6,761 |   |   |   | 7,451 |   |
| Buildings      and improvements | 10      to 40 years                                  |   |               | -      |   |   |   | 97,280 |   |   |   | 97,280 |   |
| Tenant      improvements        | Shorter      of useful life or term of related lease |   |               | -      |   |   |   | 10,328 |   |   |   | 10,328 |   |
| Development      costs          |                                                 |   |               | 7,144  |   |   |   | 8,987 |   |   |   | 16,131 |   |
|                            |                                                 |   |               | 9,530  |   |   |   | 131,126 |   |   |   | 140,656 |   |
| Accumulated      depreciation   |                                                 |   |               | -      |   |   |   | (28,257 | ) |   |   | (28,257 | ) |
|                            |                                                 |   | $                  | 9,530  |   |   | $ | 102,869 |   |   | $ | 112,399 |   |
|                            |                                                 |   |               |   |   |   |   |   |   |   |   |   |   |

----

|                            |                                                 |   | December      1, 2007 |   |
|---------------------------------|------------------------------------------------------|--------|-----------------------|--------|
|                            | Estimated Useful      Lives                     |   | Held      for Sale    |   |   | Held      for Lease |   |   | Total |   |
| Land                            |                                                 |   | $                     | 1,696  |   |   | $ | 7,732 |   |   | $ | 9,428 |   |
| Land      improvements          | 10      to 30 years                                  |   |                  | 691    |   |   |   | 6,757 |   |   |   | 7,448 |   |
| Buildings      and improvements | 10      to 40 years                                  |   |                  | -      |   |   |   | 97,167 |   |   |   | 97,167 |   |
| Tenant      improvements        | Shorter      of useful life or term of related lease |   |                  | -      |   |   |   | 10,127 |   |   |   | 10,127 |   |
| Development      costs          |                                                 |   |                  | 6,803  |   |   |   | 4,717 |   |   |   | 11,520 |   |
|                            |                                                 |   |                  | 9,190  |   |   |   | 126,500 |   |   |   | 135,690 |   |
| Accumulated      depreciation   |                                                 |   |                  | -      |   |   |   | (26,046 | ) |   |   | (26,046 | ) |
|                            |                                                 |   | $                     | 9,190  |   |   | $ | 100,454 |   |   | $ | 109,644 |   |
|                            |                                                 |   |                  |   |   |   |   |   |   |   |   |   |   |

----

----

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

----

|   |                        | TotalSquareFootage |   | SquareFootageLeased |   |  PercentageLeased |   |
|--------|-----------------------------|--------------------|--------|---------------------|--------|------------------------|--------|
|   |                        |               |   |                |   |                   |   |
|   | As      of May 31, 2008     | 2,016,000          |   | 1,332,000           |   |  66%              |   |
|   | As      of December 1, 2007 | 2,016,000          |   | 1,322,000           |   | 66%                    |   |
|   | As      of June 2, 2007     | 1,837,000          |   | 1,251,000           |   | 68%                    |   |

----

----

|                                                                         |   | 2008                        |   |   | 2007             |   |
|------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|------------------|--------|
|                                                                         |   | Second      Qtr.            |   |   | Second      Qtr. |   |
|                                                                         |   | (amounts      in thousands) |   |
| Rental      revenue                                                          |   | $                           | 3,606  |   |             | $      | 3,453 |   |
| Costs      related to rental revenue excluding                               |   |                        |   |   |             |   |   |   |
|    depreciation      and amortization expense (a)             |   |                        | (1,492 | )      |             |   | (1,577 | ) |
| Profit      from leasing activities before general and                       |   |                        |   |   |             |   |   |   |
|    administrative      expenses and before depreciation       |   |                        |   |   |             |   |   |   |
|    and      amortization expense (a)                          |   |                        | 2,114  |   |             |   | 1,876 |   |
| Revenue      from property sales                                             |   |                        | 405    |   |             |   | 9,577 |   |
| Costs      related to property sales                                         |   |                        | (88    | )      |             |   | (1,654 | ) |
| Gain      from property sales                                                |   |                        | 317    |   |             |   | 7,923 |   |
| Profit      from leasing activities and gain from property sales             |   |                        |   |   |             |   |   |   |
|    before      general and administrative expenses and before |   |                        |   |   |             |   |   |   |
|    depreciation      and amortization expense (a)             |   |                        | 2,431  |   |             |   | 9,799 |   |
| General      and administrative expenses excluding depreciation              |   |                        |   |   |             |   |   |   |
|         and amortization expense (a)                               |   |                        | (719   | )      |             |   | (723 | ) |
| Profit      before depreciation and amortization expense                     |   |                        | 1,712  |   |             |   | 9,076 |   |
| Depreciation      and amortization expense related to costs of               |   |                        |   |   |             |   |   |   |
|         rental revenue                                             |   |                        | (1,250 | )      |             |   | (1,104 | ) |
| Depreciation      and amortization expense - other                           |   |                        | (8     | )      |             |   | (9 | ) |
| Operating      profit                                                        |   | $                           | 454    |   |             | $      | 7,963 |   |
|                                                                         |   |                        |   |   |             |   |   |   |

| (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 State 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.  The aggregate of (i) costs related to      rental revenue excluding depreciation and amortization expense; (ii) costs      related to property sales; and (iii) depreciation and amortization expense      related to costs of rental revenue equals the costs related to rental      revenue and property sales as reported on Griffin’s consolidated      statements of operations. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   | 2008                        |   |   | 2007             |   |
|---------------------------------------------------|--------|-----------------------------|--------|--------|------------------|--------|
|                                              |   | Second      Qtr.            |   |   | Second      Qtr. |   |
|                                              |   | (amounts      in thousands) |   |
| Net      sales and other revenue                  |   | $                           | 17,053 |   |             | $      | 18,866 |   |
| Cost      of goods sold                           |   |                        | 14,481 |   |             |   | 16,162 |   |
| Gross      profit                                 |   |                        | 2,572  |   |             |   | 2,704 |   |
| Selling,      general and administrative expenses |   |                        | (1,755 | )      |             |   | (1,908 | ) |
| Operating      profit                             |   | $                           | 817    |   |             | $      | 796 |   |
|                                              |   |                        |   |   |             |   |   |   |

----

----

|                                                                    |   | 2008                        |   |   | 2007                  |   |
|-------------------------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------|--------|
|                                                                    |   | Six      Month Period       |   |   | Six      Month Period |   |
|                                                                    |   | (amounts      in thousands) |   |
|                                                                    |   |                        |   |   |                  |   |
| Rental      revenue                                                     |   | $                           | 7,242  |   |                  | $      | 6,952 |   |
| Costs      related to rental revenue excluding                          |   |                        |   |   |                  |   |   |   |
|    depreciation      and amortization expense (a)        |   |                        | (3,645 | )      |                  |   | (3,243 | ) |
| Profit      from leasing activities before general and                  |   |                        |   |   |                  |   |   |   |
|    administrative      expenses and before depreciation  |   |                        |   |   |                  |   |   |   |
|    and      amortization expense (a)                     |   |                        | 3,597  |   |                  |   | 3,709 |   |
| Revenue      from property sales                                        |   |                        | 826    |   |                  |   | 10,097 |   |
| Costs      related to property sales                                    |   |                        | (179   | )      |                  |   | (1,688 | ) |
| Gain      from property sales                                           |   |                        | 647    |   |                  |   | 8,409 |   |
| Profit      from leasing activities and gain from property sales        |   |                        |   |   |                  |   |   |   |
|         before general and administrative expenses and before |   |                        |   |   |                  |   |   |   |
|         depreciation and amortization expense (a)             |   |                        | 4,244  |   |                  |   | 12,118 |   |
| General      and administrative expenses excluding depreciation         |   |                        |   |   |                  |   |   |   |
|         and amortization expense (a)                          |   |                        | (1,364 | )      |                  |   | (1,414 | ) |
| Profit      before depreciation and amortization expense (a)            |   |                        | 2,880  |   |                  |   | 10,704 |   |
| Depreciation      and amortization expense related to costs of          |   |                        |   |   |                  |   |   |   |
|         rental revenue                                        |   |                        | (2,477 | )      |                  |   | (2,176 | ) |
| Depreciation      and amortization expense - other                      |   |                        | (17    | )      |                  |   | (19 | ) |
| Operating      profit                                                   |   | $                           | 386    |   |                  | $      | 8,509 |   |
|                                                                    |   |                        |   |   |                  |   |   |   |

| (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.  The aggregate of (i) costs related to      rental revenue excluding depreciation and amortization expense; (ii) costs      related to property sales; and (iii) depreciation and amortization expense      related to costs of rental revenue equals the costs related to rental      revenue and property sales on Griffin’s consolidated statement of      operations. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   | 2008                        |   |   | 2007                  |   |
|---------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------|--------|
|                                              |   | Six      Month Period       |   |   | Six      Month Period |   |
|                                              |   | (amounts      in thousands) |   |
|                                              |   |                        |   |   |                  |   |
| Net      sales and other revenue                  |   | $                           | 17,477 |   |                  | $      | 19,433 |   |
| Cost      of goods sold                           |   |                        | 14,919 |   |                  |   | 16,787 |   |
| Gross      profit                                 |   |                        | 2,558  |   |                  |   | 2,646 |   |
| Selling,      general and administrative expenses |   |                        | (2,712 | )      |                  |   | (2,851 | ) |
| Operating      loss                               |   | $                           | (154   | )      |                  | $      | (205 | ) |
|                                              |   |                        |   |   |                  |   |   |   |

----

----

----

|                             |   | Total              |   |   | Due      Within One Year |   |   | Due      From 1-3 Years |   |   | Due      From 3-5 Years |   |   | Due      in More Than 5 Years |   |
|----------------------------------|--------|--------------------|--------|--------|--------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------------|--------|
|                             |   | (in      millions) |   |
| Mortgages                        |   | $                  | 66.4   |   |                     | $      | 4.4    |                    |   | $      | 14.9                    |   |   | $                             | 13.7   |   |   | $ | 33.4 |   |
| Capital      Lease Obligations   |   |               | 0.2    |   |                     |   | 0.1    |                    |   |   | 0.1                     |   |   |                          | -      |   |   |   | - |   |
| Operating      Lease Obligations |   |               | 1.2    |   |                     |   | 0.2    |                    |   |   | 0.5                     |   |   |                          | 0.4    |   |   |   | 0.1 |   |
| Purchase      Obligations (1)    |   |               | 3.2    |   |                     |   | 3.2    |                    |   |   | -                       |   |   |                          | -      |   |   |   | - |   |
| Other      (2)                   |   |               | 2.4    |   |                     |   | -      |                    |   |   | -                       |   |   |                          | -      |   |   |   | 2.4 |   |
|                             |   | $                  | 73.4   |   |                     | $      | 7.9    |                    |   | $      | 15.5                    |   |   | $                             | 14.1   |   |   | $ | 35.9 |   |
|                             |   |               |   |   |                     |   |   |                    |   |   |                    |   |   |                          |   |   |   |   |   |   |

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

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

----

----

| ITEM      3. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK |
|--------------|----------------------------------------------------------------|

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

----

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

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

----

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

| ITEM      2. | UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|--------------|------------------------------------------------------------------|
|         |                                                             |
|         | (c)      Issuer Purchases of EquitySecurities                    |

|               | (a)                                   | (b)                               | (c)                                                                                        | (d)                                                                                      |
|--------------------|---------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| Date               | Total      Number of Shares Purchased | Average      Price Paid per Share | Total      Number of Shares Purchased as Part of Publicly Announced Plans or      Programs | Maximum      Number of Shares that May Yet Be Purchased Under the Plans or      Programs |
|               |                                  |                              |                                                                                       |                                                                                     |
| March      7, 2008 | 56,100                                | $34.02                            | 169,000                                                                                    | 81,000                                                                                   |
| May      30, 2008  | 12,900                                | $33.19                            | 181,900                                                                                    | 68,100                                                                                   |

| ITEM      4. | SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS |   |
|--------------|----------------------------------------------------------|--------|

|   |   (a) | Annual      Meeting of Stockholders:  May 13, 2008                                                                                              |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |            |                                                                                                                                                      |
|   |   (b) | The      following were elected as Directors at the Annual Meeting, representing      all of the directors:                                               |
|   |            |                                                                                                                                                      |
|   |   (i) | 1)      Mr. Winston J. Churchill, Jr. was elected a Director for 2008 with      3,580,704 votes in favor, 1,405,215 withheld, and 50,630 not      voting. |
|   |            |                                                                                                                                                      |
|   |            | 2)      Mr. Edgar M. Cullman was elected a Director for 2008 with 3,584,534 votes      in favor, 1,401,385 withheld, and 50,630 not voting.               |
|   |            |                                                                                                                                                      |
|   |            | 3)      Mr. David M. Danziger was elected a Director for 2008 with 3,584,534 votes      in favor, 1,401,385 withheld, and 50,630 not voting.              |
|   |            |                                                                                                                                                      |
|   |            | 4)      Mr. Frederick M. Danziger was elected a Director for 2008 with 3,584,534      votes in favor, 1,401,385 withheld, and 50,630 not  voting.         |

----

|   |                  |                                                                                                                                                                                                                                                                      |
|--------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                  | 5)      Mr. Thomas C. Israel was elected a Director for 2008 with 3,564,319 votes      in favor, 1,421,600 withheld, and 50,630 not voting.                                                                                                                               |
|   |                  |                                                                                                                                                                                                                                                                      |
|   |                  | 6)      Mr. Alan Plotkin * was elected a Director for 2008 with 3,585,554 votes in      favor, 1,400,365 withheld, and 50,630 not voting.                                                                                                                                 |
|   |                  |                                                                                                                                                                                                                                                                      |
|   |                  | 7)      Mr. David F. Stein was elected a Director for 2008 with 3,391,319 votes in      favor, 1,594,600 withheld, and 50,630 not voting.                                                                                                                                 |
|   |                  |                                                                                                                                                                                                                                                                      |
|   |                  |                                                                                                                                                                                                                                                                      |
|   |                  |  *  Subsequent      to his election to Griffin’s Board of Directors at the 2008 Annual      Meeting, Mr. Plotkin died.  There has not yet been an      appointment made to replace Mr. Plotkin on Griffin’s Board of      Directors. |
|   |                  |                                                                                                                                                                                                                                                                      |
|   |                  |                                                                                                                                                                                                                                                                      |
|   |    (c) | The      selection of McGladrey & Pullen, LLP as independent registered public      accountants for 2008 was ratified with 4,984,242 votes in favor, 900      opposed, and 51,407 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)                                                                            |
|         |             |                                                                                                                                                                                                                                                                  |
|         | 10.4             | 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)                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.22  | Letter      of Agreement between Griffin Land & Nurseries, Inc. and USAA Real      Estate Company (incorporated by reference to Form 10-Q dated August 31,      2002 filed October 11, 2002)                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.23  | Agreement      of Purchase and Sale of Partnership Interest between Griffin Land &      Nurseries, Inc. and USAA Real Estate Company dated December 3, 2002      (incorporated by reference to Form 10-K dated November 30, 2002 filed      February 28, 2003)                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
|   | 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) |
|   |        |                                                                                                                                                                                                                                   |
|   | 10.35       | Employment      Agreement by and between Imperial Nurseries, Inc. and Gregory Schaan dated      January 1, 2001, as amended April 9, 2008 (incorporated by reference to      Form 10-Q dated March 1, 2008 filed April 10, 2008)       |
|   |        |                                                                                                                                                                                                                                   |
|   | 14.1        | Griffin      Land & Nurseries, Inc. Code of Ethics (incorporated by reference to      Form 10-K dated November 29, 2003, filed February 25,      2004)                                                              |
|   |        |                                                                                                                                                                                                                                   |
|   | 16.1        | Letter      from PricewaterhouseCoopers LLP dated March 26, 2008 (incorporated by      reference to Form 8-K dated March 25, 2008 filed March 27,      2008)                                                                           |
|   |        |                                                                                                                                                                                                                                   |
|   | 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      10, 2008 |   | Frederick      M. Danziger                                                                                                                                                                                           |
|                                |   | President      and Chief Executive Officer                                                                                                                                                                           |
|                                |   |                                                                                                                                                                                                                 |
|                                |   |                                                                                                                                                                                                                 |
|                                |   |                                /s/      ANTHONY J. GALICI |
| Date:  July      10, 2008 |   | Anthony      J. Galici                                                                                                                                                                                               |
|                                |   | Vice      President, Chief Financial Officer and Secretary                                                                                                                                                           |
|                                |   |                                                                                                                                                                                                                 |

----