American Greetings Announces Completion of Debt Refinancing
Refinancing to provide liquidity for restructuring efforts, ongoing operations

CLEVELAND, Aug. 9 /PRNewswire/ -- American Greetings Corporation (NYSE: AM) today said that it has successfully completed the previously announced refinancing of a total of nearly $1.1 billion in debt facilities, including a new $350 million senior secured credit facility and a three-year, $250 million asset-backed trade receivables securitization facility.

The senior secured facility consists of three tranches: a $105 million, 364-day revolving facility, a $120 million revolving facility maturing
Jan. 15, 2006, and a $125 million term loan maturing June 15, 2006. American Greetings has the option to request a one-year extension of the 364-day revolving facility.

American Greetings also said that the initial purchasers of its recently completed issue of 7.00% convertible senior subordinated notes have exercised their previously announced option to purchase an additional $25 million, for a total of $175 million in convertible senior notes. These notes were sold to qualified institutional buyers in reliance on Rule 144A. These notes will not be registered under the Securities Act of 1933 or applicable state securities laws and may not be sold in the United States absent registration or an
applicable exemption from registration requirements.

Morry Weiss, chairman and chief executive officer of American Greetings, said the proceeds from the refinancing will enable the company to repay outstanding indebtedness, provide liquidity for its current restructuring efforts and provide working capital liquidity for ongoing operations. "Our balance sheet now includes a mix of fixed and floating debt," Weiss said. "With the support of our lenders, we are better positioned to move ahead during this critical transformational stage in which we are laying the groundwork for the future of our business."

About American Greetings

American Greetings is the world's largest publicly held creator, manufacturer and distributor of greeting cards and social expression products. Its staff of artists, designers and writers comprises one of the largest creative departments in the world and helps consumers "say it best" by supplying more than 15,000 greeting card designs to retail outlets in nearly every English-speaking country. Located in Cleveland, Ohio, American Greetings has annual sales of more than $2.5 billion. For more information on the company, visit http://www.americangreetings.com/ on the World Wide Web.

The statements contained in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties, including but not limited to: retail bankruptcies and consolidations, successful integration of acquisitions, a weak retail environment, consumer acceptance of products as priced and marketed, the impact of technology on core product sales and competitive terms
of sale offered to customers.