A.C. Moore Arts & Crafts 8-K A.C. Moore Reports Second Quarter 2007 Results

EXHIBIT 99.1

For:	From:
A.C. Moore Arts & Crafts, Inc.	Gregory FCA Communications, Inc.
For More Information Contact:	For More Information Contact:
Marc Katz, Chief Financial Officer	Joe Crivelli
(856) 768-4957	(610) 642-8253

A.C. Moore Reports Second Quarter 2007 Results

• Gross margin improves 140 basis points versus last year

• EPS improves to a net loss of $0.02 per share versus a net loss of $0.09 last year

• Cash position improves by $29.8 million versus last year

Berlin, New Jersey, August 6, 2007- A.C. Moore Arts & Crafts, Inc. (Nasdaq: ACMR) today announced results for the second quarter ended June 30, 2007.

Sales for the second quarter of 2007 were $124.4 million, a decrease of 4.1% versus sales of $129.8 million during the second quarter of 2006. Same store sales decreased by 10.0% versus the same period in 2006. The net loss was $0.3 million, or $0.02 per share, compared with a net loss of $1.8 million, or $0.09 per share, in the second quarter of 2006. Second quarter 2007 results include a charge of $0.03 per share, related to a one time legal settlement. Second quarter 2006 results included costs of $1.8 million, or $0.05 per share, related to the changes in management. The Company’s cash position improved by $29.8 million versus the same period last year principally due to a 21% reduction in inventory per store.

Sales for the six months ended June 30, 2007 were $259.8 million, a decrease of 1.1% versus sales of $262.7 million in the same period in 2006. Same store sales decreased by 7.4% for the six month period. Net income for the six months ended June 30, 2007 was $0.2 million, or $0.01 per share, versus a net loss of $1.5 million, or $0.08 per share, in the same period in 2006. Results for the six months ended June 30, 2007 include $0.4 million, or $0.01 per share related to the changes in management, versus $2.0 million, or $0.06 per share, in the same period in 2006.

Rick A. Lepley, Chief Executive Officer, stated, “We are pleased with our progress in improving gross margins, inventory, and our cash position. We believe our results indicate that our focus on improving store profitability continues to be the right course for us at this particular time.”

The Company will host a conference call tomorrow, Tuesday, August 7, 2007, beginning at 8:30 a.m., Eastern Time, to discuss second quarter 2007 results. To participate in the conference call, please call 973-582-2741 and provide the operator with passcode #9030877. If you are unable to access the live call, please dial 973-341-3080 and enter pin #9030877 to access the taped digital replay. The replay will be available at approximately 10:00 a.m. ET on August 7, 2007 and will remain available until August 21, 2007 at 11:59 p.m.

A simultaneous webcast of the conference call may be accessed at www.acmoore.com. Go to “Investor Relations” and click on “Corporate Profile.” To listen to the live call via webcast, please go to the Company’s website at least 15 minutes early to register, download and install any necessary audio software. An archive of the conference call will be available approximately two hours after the conference call ends on the Company’s website.

About A.C. Moore:

A.C. Moore operates arts and crafts stores that offer a vast assortment of traditional and contemporary arts and crafts merchandise for a wide range of customers. The Company operates 124 stores in the Eastern United States. For more information about the Company, visit our website atwww.acmoore.com.

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This press release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based on A.C. Moore’s current expectations and assumptions as of this date. The Company undertakes no obligation to update or revise any forward-looking statement whether the result of new developments or otherwise. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could cause actual results to differ from those anticipated include, but are not limited to, the Company’s ability to implement its business and operating initiatives to improve profitability, customer demand and trends in the arts and crafts industry, inventory risks, the effect of economic conditions and gasoline prices, the impact of unfavorable weather conditions, the impact of competitors’ locations or pricing, the availability of acceptable real estate locations for new stores, difficulties with respect to new system technologies, difficulties in implementing measures to reduce costs and expenses and improve margins, supply constraints or difficulties, the effectiveness of and changes to advertising strategies, the costs associated with a change in management, difficulties in determining the outcome and impact of litigation, the impact of the threat of terrorist attacks and war, the Company’s ability to maintain an effective system of internal control over financial reporting and other risks detailed in the Company’s Securities and Exchange Commission filings.

[Tables to Follow]

A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)

	June 30,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	54,564	$	24,716
Inventories		150,881		176,068
Prepaid expenses and other current assets		10,742		8,803
		216,187		209,587
Property and equipment, net		95,795		91,834
Other assets		1,763		1,390
	$	313,745	$	302,811
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	2,571	$	2,571
Trade accounts payable		38,194		41,002
Other current liabilities		17,265		13,562
		58,030		57,135
Non-current liabilities:
Long-term debt		20,357		22,929
Deferred tax and other liabilities		6,590		7,430
Accrued lease liability		18,366		16,259
		45,313		46,618
		103,343		103,753
Shareholders’ Equity		210,402		199,058
	$	313,745	$	302,811

A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data)
(unaudited)

	Three months ended						Six months ended
	June 30,						June 30,
	2007			2006			2007			2006
Net sales	$	124,439		$	129,815		$	259,819		$	262,733
Cost of sales		72,024			77,023			151,727			156,788
Gross Margin		52,415			52,792			108,092			105,945
Selling, general and administrative expenses		52,860			53,185			107,253			105,029
Costs related to change in management		145			1,811			435			2,027
Store pre-opening expenses		177			671			491			1,295
Income (Loss) from operations		(767	)		(2,875	)		(87	)		(2,406	)
Net interest expense (income)		(217	)		73			(450	)		126
Income (Loss) before income taxes		(550	)		(2,948	)		363			(2,532	)
Provisions (Benefit) for income taxes		(207	)		(1,179	)		134			(1,013	)
Net income (loss)	$	(343	)	$	(1,769	)	$	229		$	(1,519	)
Basic net income (loss) per share	$	(0.02	)	$	(0.09	)	$	0.01		$	(0.08	)
Diluted net income (loss) per share	$	(0.02	)	$	(0.09	)	$	0.01		$	(0.08	)
Weighted average shares outstanding		20,229,158			19,857,369			20,207,270			19,846,614
Weighted average shares outstanding plus impact of stock options		20,229,158			19,857,369			20,337,965			19,846,614