American Greetings Completes Acquisition of Recycled Paper Greetings

    CLEVELAND, Feb. 24 /CNW/ -- American Greetings Corporation (NYSE:   AM)
today announced it has completed its acquisition of Recycled Paper Greetings,

    Chicago-based Recycled Paper Greetings (RPG) is a preeminent creator and
designer of humorous and alternative greeting cards with annual net sales of
approximately $75 million.  RPG's cards are distributed primarily through mass
retail partners, drug stores, and specialty retail stores.

    RPG was purchased pursuant to a pre-packaged Chapter 11 bankruptcy
reorganization.  Consideration for the acquisition included the issuance of
approximately $54.7 million of new American Greetings 7.375% notes due 2016
and approximately $18 million of cash.  This consideration was in addition to
the $44.2 million investment previously made by American Greetings in July
2008.  American Greetings also provided approximately $6.5 million of
debtor-in-possession (DIP) financing to RPG during the reorganization process.
The borrowings under the DIP were extinguished upon the closing of the

    RPG has a history of creating humorous and alternative greeting cards
with a unique style and tone to meet consumers' needs.  This acquisition will
permit RPG to benefit from American Greetings' size and scale.  Jude Rake will
continue to lead Recycled Paper Greetings as CEO.

    Chief Executive Officer Zev Weiss said, "We are pleased to welcome RPG as
the newest member of the American Greetings family and to have Jude Rake
continue his role as CEO.  RPG's product offering, including some of the best
humor cards available, is a delight to consumers and we look forward to
extending their offerings to our retail partners to enhance our combined

    The Company will disclose additional information about the acquisition
with the Company's fourth quarter earnings release in late April 2009.

    About American Greetings Corporation
    For more than 100 years, American Greetings Corporation (NYSE:   AM) has
been a manufacturer and retailer of innovative social expression products that
assist consumers in enhancing their relationships. The Company's major
greeting card brands are American Greetings, Carlton Cards, Gibson and
Recycled Paper Greetings, and other paper product offerings include DesignWare
party goods, American Greetings and Plus Mark gift-wrap and boxed cards and
Date Works calendars. American Greetings also has the largest collection of
electronic greetings on the Web, including cards available at through AG Interactive, Inc., the Company's online
division. AG Interactive also offers digital photo sharing and personal
publishing at and and a one-stop source for online
graphics, animations, and more at In addition to its product lines,
American Greetings also creates and licenses popular character brands through
the American Greetings Properties group. Headquartered in Cleveland, Ohio,
American Greetings generates annual revenue of approximately $1.8 billion, and
its products can be found in retail outlets domestically and worldwide,
including Company-owned American Greetings and Carlton Cards stores. For more
information on the Company, visit

    Certain statements in this release may constitute forward-looking
statements within the meaning of the Federal securities laws. These statements
can be identified by the fact that they do not relate strictly to historic or
current facts. They use such words as "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," and other words and terms of similar
meaning in connection with any discussion of future operating or financial
performance. These forward-looking statements are based on currently available
information, but are subject to a variety of uncertainties, unknown risks and
other factors concerning the Company's operations and business environment,
which are difficult to predict and may be beyond the control of the Company.
Important factors that could cause actual results to differ materially from
those suggested by these forward-looking statements, and that could adversely
affect the Company's future financial performance, include, but are not
limited to, the following:

    --  a weak retail environment and general economic conditions;
    --  the ability to successfully integrate acquisitions, including Recycled
        Paper Greetings;
    --  the ability to achieve the desired benefits associated with its cost
        reduction efforts;
    --  retail consolidations, acquisitions and bankruptcies, including the
        possibility of resulting adverse changes to retail contract terms;
    --  competitive terms of sale offered to customers;
    --  if the Company determines additional retail store closures are
    --  the Company's ability to comply with its debt covenants;
    --  the timing and impact of investments in new retail or product
        strategies as well as new product introductions and achieving the
        desired benefits from those investments;
    --  consumer acceptance of products as priced and marketed;
    --  the impact of technology on core product sales;
    --  the timing and impact of converting customers to a scan-based trading
    --  escalation in the cost of providing employee health care;
    --  the ability to identify, complete, or achieve the desired benefits
        associated with productivity improvement projects;
    --  the ability to successfully implement, or achieve the desired benefits
        associated with any information systems refresh the Company may
    --  the Company's ability to achieve the desired accretive effect from any
        share repurchase programs;
    --  the Company's ability to successfully complete, or achieve the desired
        benefits associated with, dispositions, including the sale of the
        Strawberry Shortcake and Care Bears properties;
    --  fluctuations in the value of currencies in major areas where the
        Company operates, including the U.S. Dollar, Euro, U.K. Pound
        and Canadian Dollar; and
    --  the outcome of any legal claims known or unknown.

    Risks pertaining specifically to AG Interactive include the viability of
online advertising, subscriptions as revenue generators, the public's
acceptance of online greetings and other social expression products, and the
ability to gain a leadership position in the digital photo sharing space.

    In addition, this release contains time-sensitive information that
reflects management's best analysis as of the date of this release. American
Greetings does not undertake any obligation to publicly update or revise any
forward-looking statements to reflect future events, information or
circumstances that arise after the date of this release. Further information
concerning issues that could materially affect financial performance related
to forward-looking statements can be found in the Company's periodic filings
with the Securities and Exchange Commission, including the "Risk Factors"
section of the Company's Annual Report on Form 10-K for the fiscal year ended
February 29, 2008.


For further information:

For further information: Gregory M. Steinberg, Treasurer and Director of
Investor Relations, American Greetings Corporation, +1-216-252-4864, Web Site:

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