American Greetings 8-K American Greetings Announces Fourth Quarter Results

Exhibit 99.1

AMERICAN GREETINGS ANNOUNCES FOURTH QUARTER RESULTS

• Earnings results include charges for actions designed to improve return on capital

• Company announces $100 million share repurchase program

• Company announces 25% increase in dividend

CLEVELAND (April 17, 2007) – American Greetings Corporation (NYSE: AM) today announced its results for the fourth quarter and fiscal year ended February 28, 2007, a $100 million share repurchase program, and a 25% increase to its quarterly cash dividend.

Fourth Quarter Results

For the fourth quarter of fiscal 2007, the Company reported net sales of $472.8 million, pre-tax loss from continuing operations of $4.2 million, and a loss from continuing operations of $7.7 million or 14 cents per share (all per-share amounts assume dilution).

During the quarter, the Company took a series of actions to improve its long-term return on capital and to do so, incurred charges in both its continuing as well as its discontinued operations. Within the continuing operations, the Company sold its candle product lines, and as a result, recorded a pre-tax loss of $16 million or approximately 18 cents per share. In addition, during the quarter, the Company also incurred exit costs in connection with the closure of 60 of its retail stores resulting in a pre-tax loss of $6.5 million or approximately 7 cents per share.

In the prior year’s fourth fiscal quarter, the Company reported net sales of $507.4 million, pre-tax income from continuing operations of $63.6 million, and income from continuing operations of $51.1 million or 70 cents per share.

Full Year Results

For the fiscal year ended February 28, 2007, the Company reported net sales of $1,744.6 million, pre-tax income from continuing operations of $69.4 million, and income from continuing operations of $43.3 million or 72 cents per share. Included in these results are a pre-tax loss on the sale of the Company’s candle product lines of $16 million or approximately 16 cents per share, a pre-tax loss associated with the closure of 60 stores within the retail operations segment of $6.5 million or approximately 7 cents per share, and a pre-tax gain of $20 million or approximately 20 cents per share as a result of retailer consolidations and the effect the consolidations had on several long-term supply agreements between the Company and the affected retailers.

Management Comments and Outlook

Chief Executive Officer Zev Weiss said, “I am pleased that we continued to execute against our goal of improving the return on capital employed and generating strong cash flow. We generated cash flow from operating activities less capital expenditures of $225 million, well above our initial estimates and even beyond our December guidance. For fiscal year 2008, we are projecting earnings per share between $1.35 and $1.55. I am looking forward to improved earnings as a large portion of the investments in our strategic card initiative is now behind us. In addition, we are able to continue returning capital to our shareholders by repurchasing shares and increasing the dividend.”

Financing Activities

The Company purchased 3.0 million shares of its common stock for $71.3 million during the fourth quarter of fiscal 2007. During the fiscal year, the Company repurchased 11.1 million of its shares for $257.2 million and was not required to issue approximately 7.1 million shares as a result of the convertible notes exchange offer completed in the second quarter.

The Company’s Board of Directors authorized a new $100 million share repurchase program as well as a 25% increase in its quarterly cash dividend from 8 cents per share to 10 cents per share. The share repurchases will be made through a 10b5-1 program in open market or privately negotiated transactions in compliance with the SEC’s Rule 10b-18, subject to market conditions, applicable legal requirements and other factors. The increased dividend will be paid on May 14, 2007 to shareholders of record at the close of business on May 2, 2007.

Conference call on the Web

American Greetings will broadcast its conference call live on the Internet at 9:00 a.m. Eastern time today. The conference call will be accessible through the Investor Relations section of the American Greetings Web site athttp://investors.americangreetings.com. A replay of the call will be available on the site.

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, stationery, calendars, ornaments and electronic greetings. Located in Cleveland, Ohio, American Greetings generates annual net sales of approximately $1.7 billion. For more information on the Company, visithttp://corporate.americangreetings.com.

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CONTACT:

Gregory M. Steinberg

Treasurer and Director of Investor Relations

American Greetings Corporation

216-252-4864

investor.relations@amgreetings.com

Certain statements in this release, including those under “Management Comments and Outlook” may constitute forward-looking statements within the meaning of the Federal securities laws. These statements can be identified by the fact that they do not relate strictly to historic or current facts. They use such words as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. These forward-looking statements are based on currently available information, but are subject to a variety of uncertainties, unknown risks and other factors concerning the Company’s operations and business environment, which are difficult to predict and may be beyond the control of the Company. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company’s future financial performance, include, but are not limited to, the following:

• retail consolidations, acquisitions and bankruptcies, including the possibility of resulting adverse changes to retail contract terms;

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• the Company’s ability to successfully implement its strategy to invest in its core greeting card business;

• the timing and impact of investments in new retail or product strategies as well as new product introductions and achieving the desired benefits from those investments;

• the ability to execute share repurchase programs or the ability to achieve the desired accretive effect from such repurchases;

• the Company’s ability to successfully complete, or achieve the desired benefits associated with, dispositions;

• 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;

• successful implementation of supply chain improvements and achievement of projected cost savings from those improvements;

• increases in the cost of material, energy, freight and other production costs;

• the Company’s ability to comply with its debt covenants;

• fluctuations in the value of currencies in major areas where the Company operates, including the U.S. Dollar, Euro, U.K. Pound Sterling, and Canadian Dollar;

• escalation in the cost of providing employee health care;

• successful integration of acquisitions; and

• the outcome of any legal claims known or unknown.

Risks pertaining specifically to AG Interactive include the viability of online advertising, 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 Company’s periodic filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2006.

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AMERICAN GREETINGS CORPORATION

FOURTH QUARTER CONSOLIDATED STATEMENT OF OPERATIONS

FISCAL YEAR ENDED FEBRUARY 28, 2007

(In thousands of dollars except share and per share amounts)

	(Unaudited)
	Quarter Ended February 28,						Year Ended February 28,
	2007			2006			2007			2006
Net sales	$	472,848		$	507,413		$	1,744,603		$	1,875,104
Costs and expenses:
Material, labor and other production costs		233,559			222,549			826,791			846,958
Selling, distribution and marketing		176,487			171,296			627,906			631,943
Administrative and general		67,573			66,440			251,089			242,727
Goodwill impairment		—			—			—			43,153
Interest expense		7,962			8,460			34,986			35,124
Other income - net		(8,503	)		(24,896	)		(65,530	)		(64,676	)
		477,078			443,849			1,675,242			1,735,229
(Loss) income from continuing operations before income tax expense		(4,230	)		63,564			69,361			139,875
Income tax expense		3,513			12,498			26,096			48,879
(Loss) income from continuing operations		(7,743	)		51,066			43,265			90,996
Loss from discontinued operations, net of tax		(4,480	)		(9,272	)		(887	)		(6,620	)
Net (loss) income	$	(12,223	)	$	41,794		$	42,378		$	84,376
Earnings (loss) per share - basic:
(Loss) income from continuing operations	$	(0.14	)	$	0.82		$	0.75		$	1.38
Loss from discontinued operations		(0.08	)		(0.15	)		(0.02	)		(0.10	)
Net (loss) income	$	(0.22	)	$	0.67		$	0.73		$	1.28
Earnings (loss) per share - assuming dilution:
(Loss) income from continuing operations	$	(0.14	)	$	0.70		$	0.72		$	1.24
Loss from discontinued operations		(0.08	)		(0.12	)		(0.01	)		(0.08	)
Net (loss) income	$	(0.22	)	$	0.58		$	0.71		$	1.16
											��
Average number of common shares outstanding		56,035,238			62,736,831			57,951,952			65,965,024
Average number of common shares outstanding - assuming dilution		56,035,238			75,681,656			62,362,794			79,226,384
Dividends declared per share	$	0.08		$	0.08		$	0.32		$	0.32

AMERICAN GREETINGS CORPORATION

FOURTH QUARTER CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FISCAL YEAR ENDED FEBRUARY 28, 2007

(In thousands of dollars)

	(Unaudited) February 28,
	2007			2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	144,713		$	213,613
Short-term investments		—			208,740
Trade accounts receivable, net		98,837			139,384
Inventories		182,618			213,109
Deferred and refundable income taxes		135,379			153,282
Assets of businesses held for sale		5,199			24,903
Prepaid expenses and other		227,380			212,814
Total current assets		794,126			1,165,845
GOODWILL		224,105			200,763
OTHER ASSETS		416,887			548,514
DEFERRED INCOME TAXES		52,869			—
Property, plant and equipment - at cost		944,534			953,634
Less accumulated depreciation		659,462			649,794
PROPERTY, PLANT AND EQUIPMENT - NET		285,072			303,840
	$	1,773,059		$	2,218,962
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Debt due within one year	$	—		$	174,792
Accounts payable		118,204			123,757
Accrued liabilities		80,389			73,532
Accrued compensation and benefits		61,192			68,864
Income taxes		24,578			17,240
Liabilities of businesses held for sale		1,932			3,627
Other current liabilities		84,898			97,270
Total current liabilities		371,193			559,082
LONG-TERM DEBT		223,915			300,516
OTHER LIABILITIES		162,410			116,554
DEFERRED INCOME TAXES		6,315			22,785
SHAREHOLDERS’ EQUITY
Common shares - Class A		50,839			56,130
Common shares - Class B		4,283			4,218
Capital in excess of par value		414,859			398,505
Treasury stock		(710,414	)		(676,436	)
Accumulated other comprehensive (loss) income		(1,013	)		9,823
Retained earnings		1,250,672			1,427,785
Total shareholders’ equity		1,009,226			1,220,025
	$	1,773,059		$	2,218,962

AMERICAN GREETINGS CORPORATION

FOURTH QUARTER CONSOLIDATED STATEMENT OF CASH FLOWS

FISCAL YEAR ENDED FEBRUARY 28, 2007

(In thousands of dollars)

	(Unaudited) Year Ended February 28,
	2007			2006
OPERATING ACTIVITIES:
Net income	$	42,378		$	84,376
Loss from discontinued operations		887			6,620
Income from continuing operations		43,265			90,996
Adjustments to reconcile to net cash provided by operating activities:
Goodwill impairment		—			43,153
Loss on disposal of fixed assets		1,726			4,355
Loss on extinguishment of debt		5,055			863
Loss on disposal of product lines		15,969			—
Depreciation and amortization		49,380			54,202
Deferred income taxes		(16,277	)		23,225
Other non-cash charges		13,891			7,219
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Decrease in trade accounts receivable		47,369			33,850
Decrease in inventories		22,227			1,541
Increase in other current assets		(35,973	)		(13,371	)
Decrease in deferred costs - net		128,752			56,610
Decrease in accounts payable and other liabilities		(1,763	)		(33,374	)
Other - net		(6,646	)		123
Cash Provided by Operating Activities		266,975			269,392
INVESTING ACTIVITIES:
Proceeds from sale of short-term investments		1,026,280			1,733,470
Purchases of short-term investments		(817,540	)		(1,733,470	)
Property, plant and equipment additions		(41,726	)		(46,056	)
Cash payments for business acquisitions, net of cash acquired		(13,122	)		(15,315	)
Cash receipts related to discontinued operations		12,559			—
Proceeds from sale of fixed assets		4,847			11,416
Other - net		6,160			—
Cash Provided (Used) by Investing Activities		177,458			(49,955	)
FINANCING ACTIVITIES:
Increase in long-term debt		200,000			—
Reduction of long-term debt		(440,588	)		(10,782	)
Sale of stock under benefit plans		6,834			27,068
Purchase of treasury shares		(257,817	)		(244,642	)
Dividends to shareholders		(18,418	)		(21,184	)
Debt issuance costs		(8,533	)		—
Cash Used by Financing Activities		(518,522	)		(249,540	)
DISCONTINUED OPERATIONS:
Cash used by operating activities from discontinued operations		(961	)		(2,725	)
Cash provided by investing activities from discontinued operations		1,643			566
Cash Provided (Used) by Discontinued Operations		682			(2,159	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		4,507			(1,924	)
DECREASE IN CASH AND CASH EQUIVALENTS		(68,900	)		(34,186	)
Cash and Cash Equivalents at Beginning of Year		213,613			247,799
Cash and Cash Equivalents at End of Year	$	144,713		$	213,613