American Greetings Announces Leadership Transition And Implementation Of New Strategic Initiatives

Zev Weiss named chief executive officer;
Jeff Weiss appointed president and chief operating officer

CLEVELAND, Feb. 18 /PRNewswire-FirstCall/ -- American Greetings Corp. (NYSE: AM) announced today that its board of directors has named new leadership, effective June 1, 2003. The Corporation also announced new strategies designed to grow revenue while saving $50 million to $75 million in costs over the next two years.

Zev Weiss has been named chief executive officer of American Greetings, and Jeffrey Weiss has been named president and chief operating officer. Both have also been named to the Corporation's board of directors, with terms that begin June 1, 2003.

Morry Weiss, chairman and chief executive officer since 1992, will remain chairman of the board. James Spira, president and chief operating officer, will retire from the Corporation, but will continue to serve as a member of the board of directors and as an advisor to management.

"Our Corporation has seen significant change and operational improvement over the past 24 months, beginning with the initiation of our corporate-wide restructuring in fiscal 2002 and continuing with enhancements to our supply chain in the coming year," Morry Weiss said. "Much of the success of these changes was the result of the leadership and strategic thinking of Zev and Jeff and their ability to assemble and lead a new team of senior-level executives."

Spira said that the board of directors has been pleased with Zev and Jeff's leadership and results. "Two years ago, the board mapped out specific challenges for Zev and Jeff: develop a new strategic vision for future growth, build a broader and stronger management team, and manage the business to consistently meet financial expectations," he said. "They have succeeded on all counts.

"Zev and Jeff have shown deep insight and passion for the business," Spira continued. "Based on their demonstrated ability to articulate a new strategic vision and successfully implement major new initiatives, Zev and Jeff have proven that they have the leadership and the skills to run the Corporation. I look forward to continuing to work with both of them in my role on the board and as an advisor to American Greetings."

Strategic Initiatives

"Jeff and I, together with our senior management team, are excited about the opportunities to drive the Corporation's future success through four key strategic initiatives, and we appreciate the confidence placed in us by the board of directors," said Zev Weiss.

The four strategic initiatives are:

* Supply Chain Transformation - American Greetings will implement a plan to further transform its supply chain (how the Corporation develops, manufactures, distributes and services its products) by building on the improvements of its fiscal year 2002 restructuring. As a result, the Corporation has identified an additional $50 million to $75 million in cost savings over the next two years.

* Strategic Account Management - By strategically aligning its resources around the differentiated needs of its retail partners and their unique consumers, American Greetings will develop innovative products and programs that respond to the changing needs of the marketplace with greater speed to market.

* Category Innovation - The Corporation will further leverage the strength of one of the world's best creative studios by investing in
opportunities to grow the core social expression business. An initial example of this is the expanded relationship with Nickelodeon and the successful relaunch of the Care Bears and Strawberry Shortcake character properties.

* Investing in Human Capital - American Greetings believes its associates are its greatest resource, and it will adopt a performance-based culture to retain and attract world-class talent. To support the further development and implementation of the strategic initiatives, American Greetings has recently added three senior vice presidents, including Mike Goulder, executive operations officer; Bob Ryder, chief financial officer; and Steve Willensky, executive sales and marketing officer.

Zev Weiss biographical information

In his current role as executive vice president, AG Ventures and enterprise management, Zev Weiss leads the Corporation's subsidiaries and strategic business units, as well as the functions of finance, legal and human resources.

Zev, 36, began his professional career with Goldman Sachs in 1988 as a financial analyst. He joined American Greetings in 1992 as a sales representative for Carlton Cards and later contributed at several levels within the organization, in positions including vice president of strategic business units, executive director of national accounts, and regional sales director.

Zev earned a master's degree in business administration from Columbia University and a bachelor of arts degree from Yeshiva University.

Jeff Weiss biographical information

In his present role as executive vice president of the North American greeting card division, Jeff Weiss has responsibility for the Corporation's largest division.

Jeff, 39, began his professional career in 1985 in Macy's executive training program. He joined American Greetings in 1988 as a sales
representative, then held a number of positions within product management of increasing responsibility. He has also served as vice president of materials management, vice president of marketing, and senior vice president of product development.

Jeff earned a master's degree in business administration from the University of Pennsylvania's Wharton School of Business and his bachelor of arts from Yeshiva University.

About American Greetings

American Greetings Corporation (NYSE: AM) 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 generates annual net sales of approximately $2 billion. For more
information on the Corporation, visit http://corporate.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 statements involve risks and uncertainties, including but not limited to: retail bankruptcies and consolidations, successful completion of the Corporation's restructuring plan, 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.