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American Greetings continues to drive efficiencies
CLEVELAND (December 2, 2004) – American Greetings Corporation (NYSE: AM) today announced position eliminations as part of an ongoing effort to reduce costs. Approximately 300 positions were eliminated with about 175 of the position eliminations occurring at the Company’s headquarters. The Corporation employs approximately 20,000 associates (on a full-time equivalent basis) with 2,000 associates located at the Company’s headquarters. Management Comments Zev Weiss, Chief Executive Officer said, “The actions we have taken today represent a continuation of our strategy to improve efficiencies throughout the organization. By the end of a two-year period concluding in February 2005, we will have reduced our supply chain costs by $50 to $75 million. As with the supply chain effort, we are now realigning our organizational structure to reduce costs. A result of this realignment is lower overhead costs but also, unfortunately, the elimination of some positions. The decision to eliminate positions is a difficult one but an action that is necessary given the business challenges we face. American Greetings associates are an experienced and highly dedicated group who have been responsible for building the business into a $2 billion Company. We are assisting our departing associates by offering them severance and outplacement packages.” About American Greetings Corporation American Greetings Corporation (NYSE: AM) is one of the world's largest manufacturers of social expression products. Along with greeting cards, its product lines include gift wrap, party goods, reading glasses, candles, stationery, calendars, educational products, ornaments and electronic greetings. 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. ### CONTACT: Stephen J. Smith VP, Treasurer and Investor Relations (216) 252-4864 investor.relations@amgreetings.com The statements contained in this release that are not historical facts, including statements regarding expected savings from debt-reduction initiatives and estimates of results for future periods, are forward-looking statements. Forward-looking statements are generally identified by words such as “believes,” “anticipates,” “expects,” “plans,” “should,” “estimates” and similar expressions. These forward-looking statements involve risks and uncertainties. Factors that could cause actual results to differ materially from those stated or implied in our forward-looking statements, include but are not limited to: retail bankruptcies and consolidations, successful integration of acquisitions, successful transition of management, a weak retail environment, consumer acceptance of products as priced and marketed, the impact of technology on core product sales, competitive terms of sale offered to customers, successfully implementing supply chain improvements and achieving projected cost savings from those improvements, and the Corporation’s ability to comply with its debt covenants. Risks pertaining specifically to the Corporation’s interactive business segment include the viability of online advertising and subscriptions as revenue generators and the public's acceptance of online greetings and other social expression products. 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 Corporation’s periodic filings with the Securities and Exchange Commission.
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