American Greetings Completes Sale of M&D Balloons

CLEVELAND, Feb. 20 /PRNewswire-FirstCall/ -- American Greetings Corporation (NYSE: AM) today announced it has completed the previously announced sale of its subsidiary M&D Balloons, Inc., a manufacturer of metallic balloons, to Amscan Inc., an Elmsford, New York-based supplier of party goods. Terms of the transaction were not disclosed.

Morry Weiss, chairman and chief executive officer of American Greetings, said the divestiture was an attempt to streamline and simplify the company's operations as part of its overall restructuring efforts. Weiss added that American Greetings will continue to distribute metallic balloons through its Balloon Zone entity under a supply contract with Amscan. Located in Manteno, Ill., M&D Balloons has annual sales of approximately $25 million.

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 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 completion of acquisitions and divestitures, 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.