AG Interactive Breaks Into Global Wireless Marketplace With Acquisition of European Content Powerhouse K-Mobile

Deal joins two mobile leaders, AG Interactive and K-Mobile, in first

American - European wireless partnership of its kind

CLEVELAND, June 2 /PRNewswire/ -- AG Interactive, the new media subsidiary of American Greetings Corporation, has acquired K-Mobile and key brand Kiwee, an established major European player in the mobile content provider arena.

K-Mobile will be operated by AG Interactive's newly-established European subsidiary, AG Interactive Europe, B.V. This effort reflects AG Interactive's intensifying global strategy and demonstrates its growing efforts to achieve a leadership position in the worldwide wireless space. Terms of the sale were not disclosed.

Based in Paris, France, K-Mobile is already a well-recognized, high- profile wireless content leader, enjoying top market positions in Belgium, France, Spain and Germany. The new move -- the first of its kind in the wireless space -- is expected to propel K-Mobile into the leadership position across the continent. For AG Interactive, the acquisition illustrates the wireless unit's exponential growth and vigorous commitment to lead the global wireless marketplace. The acquisition in Europe is a key component as many European consumers are early adopters and already heavy users of wireless content.

"Our acquisition of K-Mobile, and their powerful Kiwee brand, establishes AG Interactive as a truly global network," says Josef Mandelbaum, President and Chief Executive Officer, AG Interactive. "As a team, we will work together to fully merge the power of AG Interactive with K-Mobile's robust content offerings and tremendous knowledge of the European marketplace to expand AG Interactive's mobile and web presence throughout the continent."

"This merger will allow us to leverage AG Interactive resources and content to accelerate our growth in Europe," notes Jean-Baptiste Rudelle, Chief Executive Officer, Kiwee. "As the first truly Euro-American mobile company, this will give us a clear edge over the competition."

K-Mobile's deep catalog of content consists of 12,000 ringtones including movie themes and contemporary pop music and rap hits. The company also offers more than 15,000 color images and more than 2,000 java mobile games. This wide array of audio and visual content is compatible with more than 350 types of handsets. Customers can purchase K-Mobile and Kiwee content at http://www.kiwee.com.

About AG Interactive

AG Interactive, the new media subsidiary of American Greetings, operates internet and mobile businesses including a network of sites such as AmericanGreetings.com, eGreetings.com, Beatgreets.com and global brands BlueMountain.com and BlueMountainCards.co.uk. The sites together offer over 20,000 high quality greetings and other types of expressive content and is the number one online greeting card destination with over 2 million paying subscribers and tens of millions of unique visitors per month. In addition, AG Interactive has partnerships with more than 25 carriers and all major internet portals. AG Interactive directs several business units including a wireless entertainment division providing innovative personal expression solutions for consumers through wireless and other multi-media platforms and international and new product units. AG Interactive is headquartered in Cleveland, Ohio.

AG Interactive is part of American Greetings Corporation, one of the world's leading manufacturers of social expression products. American Greetings companies also include Carlton Cards(R), Learning Horizons(R), Balloon Zone(R) and DesignWare(R). American Greetings is headquartered in Cleveland, Ohio. For more information on the corporation, visit http://corporate.americangreetings.com.