American Greetings 8-K American Greetings Announces First Quarter Results

Exhibit 99.1

AMERICAN GREETINGS ANNOUNCES FIRST QUARTER RESULTS

CLEVELAND (June 25, 2008) – American Greetings Corporation (NYSE: AM) today announced its first quarter results for the fiscal quarter ended May 30, 2008.

First Quarter Results

For the first quarter of fiscal 2009, the Company reported total revenue of $428.3 million, pre-tax income from continuing operations of $19.2 million, and income from continuing operations of $13.3 million or 27 cents per share (all per-share amounts assume dilution). For the first quarter of fiscal 2008, the Company reported total revenue of $420.0 million, pre-tax income from continuing operations of $54.6 million, and income from continuing operations of $30.3 million or 54 cents per share.

Management Comments and Outlook

Chief Executive Officer Zev Weiss said, “I am pleased with our revenue performance, particularly given current economic conditions. Our point of sale performance is encouraging. One of the larger components that caused lower margins in the quarter compared to last year was the rollout of a new card line in Canada. As part of that process, we had additional activity and recognized incremental expenses. While the costs associated with the new Canadian card line are transitional in nature, we are focusing additional efforts on redesigning supply chain processes in an effort to become more efficient.”

The Company reaffirmed its previously announced fiscal 2009 estimate of earnings per share from continuing operations to be between $1.60 to $1.85 per share and cash flow from operations minus capital expenditures to be between $60 million and $80 million.

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 revenue of approximately $1.8 billion. For more information on the Company, visithttp://corporate.americangreetings.com.

###

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:

• a weak retail environment;

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

• competitive terms of sale offered to customers;

• 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;

• consumer acceptance of products as priced and marketed;

• the impact of technology on core product sales;

• the timing and impact of converting customers to a scan-based trading model;

• escalation in the cost of providing employee health care;

• the ability to successfully integrate acquisitions;

• the ability to successfully implement, or achieve the desired benefits associated with any information systems refresh the Company may implement;

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

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

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

• 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; 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, the public’s acceptance of online greetings and other social expression products, and the ability to gain a leadership position in the digital photo sharing space.

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 29, 2008.

AMERICAN GREETINGS CORPORATION

FIRST QUARTER CONSOLIDATED STATEMENT OF INCOME

FISCAL YEAR ENDING FEBRUARY 28, 2009

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

	(Unaudited) Three Months Ended
	May 30, 2008			May 25, 2007
Net sales	$	425,463		$	418,016
Other revenue		2,837			1,951
Total revenue		428,300			419,967
Material, labor and other production costs		193,342			161,128
Selling, distribution and marketing expenses		150,875			140,694
Administrative and general expenses		62,561			62,235
Other operating income—net		(727	)		(360	)
Operating income		22,249			56,270
Interest expense		4,905			4,757
Interest income		(990	)		(1,499	)
Other non-operating income—net		(901	)		(1,543	)
Income from continuing operations before income tax expense		19,235			54,555
Income tax expense		5,902			24,292
Income from continuing operations		13,333			30,263
Loss from discontinued operations, net of tax		—			(213	)
Net income	$	13,333		$	30,050
Earnings per share—basic:
Income from continuing operations	$	0.27		$	0.54
Loss from discontinued operations		—			—
Net income	$	0.27		$	0.54
Earnings per share—assuming dilution:
Income from continuing operations	$	0.27		$	0.54
Loss from discontinued operations		—			—
Net income	$	0.27		$	0.54
Average number of common shares outstanding		48,800,941			55,262,716
Average number of common shares outstanding—assuming dilution		48,833,108			55,650,033
Dividends declared per share	$	0.12		$	0.10

AMERICAN GREETINGS CORPORATION

FIRST QUARTER CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FISCAL YEAR ENDING FEBRUARY 28, 2009

(In thousands of dollars)

	(Unaudited)
	May 30, 2008			May 25, 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	108,192		$	132,582
Short-term investments		—			28,325
Trade accounts receivable, net		59,897			119,147
Inventories		212,032			192,399
Deferred and refundable income taxes		67,604			76,892
Prepaid expenses and other		186,977			215,983
Total current assets		634,702			765,328
GOODWILL		300,323			225,318
OTHER ASSETS		405,116			399,880
DEFERRED AND REFUNDABLE INCOME TAXES		133,118			102,060
Property, plant and equipment—at cost		983,988			947,268
Less accumulated depreciation		685,336			666,687
PROPERTY, PLANT AND EQUIPMENT—NET		298,652			280,581
	$	1,771,911		$	1,773,167
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES
Debt due within one year	$	70,835		$	—
Accounts payable		110,394			100,955
Accrued liabilities		73,281			77,837
Accrued compensation and benefits		39,582			43,656
Income taxes payable		23,348			29,878
Other current liabilities		117,160			84,621
Total current liabilities		434,600			336,947
LONG-TERM DEBT		200,541			223,800
OTHER LIABILITIES		157,610			147,597
DEFERRED INCOME TAXES AND NONCURRENT INCOME TAXES PAYABLE		26,986			27,184
SHAREHOLDERS’ EQUITY
Common shares—Class A		45,345			51,148
Common shares—Class B		3,495			4,340
Capital in excess of par value		446,075			424,201
Treasury stock		(871,379	)		(712,147	)
Accumulated other comprehensive income		20,746			6,030
Retained earnings		1,307,892			1,264,067
Total shareholders’ equity		952,174			1,037,639
	$	1,771,911		$	1,773,167

AMERICAN GREETINGS CORPORATION

FIRST QUARTER CONSOLIDATED STATEMENT OF CASH FLOWS

FISCAL YEAR ENDING FEBRUARY 28, 2009

(In thousands of dollars)

	(Unaudited) Three Months Ended
	May 30, 2008			May 25, 2007
OPERATING ACTIVITIES:
Net income	$	13,333		$	30,050
Loss from discontinued operations		—			213
Income from continuing operations		13,333			30,263
Adjustments to reconcile to net cash (used) provided by operating activities:
Net loss (gain) on disposal of fixed assets		168			(116	)
Depreciation and amortization		12,785			11,995
Deferred income taxes		5,459			4,466
Other non-cash charges		1,718			1,979
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Decrease (increase) in trade accounts receivable		5,310			(14,745	)
Decrease (increase) in inventories		6,463			(7,389	)
Decrease in other current assets		2,001			646
Decrease in deferred costs—net		1,253			11,691
Decrease in accounts payable and other liabilities		(57,606	)		(21,759	)
Other—net		(2,771	)		4,107
Cash (Used) Provided by Operating Activities		(11,887	)		21,138
INVESTING ACTIVITIES:
Proceeds from sale of short-term investments		—			134,900
Purchases of short-term investments		—			(163,225	)
Property, plant and equipment additions		(10,088	)		(5,875	)
Cash payments for business acquisitions, net of cash acquired		(15,625	)		(6,056	)
Cash receipts related to discontinued operations		—			2,344
Proceeds from sale of fixed assets		265			890
Cash Used by Investing Activities		(25,448	)		(37,022	)
FINANCING ACTIVITIES:
Net increase in short-term debt		28,045			—
Sale of stock under benefit plans		363			9,358
Purchase of treasury shares		(38	)		(3,568	)
Dividends to shareholders		(5,852	)		(5,536	)
Cash Provided by Financing Activities		22,518			254
DISCONTINUED OPERATIONS:
Cash used by operating activities from discontinued operations		—			(59	)
Cash Used by Discontinued Operations		—			(59	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(491	)		3,558
DECREASE IN CASH AND CASH EQUIVALENTS		(15,308	)		(12,131	)
Cash and Cash Equivalents at Beginning of Year		123,500			144,713
Cash and Cash Equivalents at End of Period	$	108,192		$	132,582

AMERICAN GREETINGS CORPORATION

FIRST QUARTER CONSOLIDATED SEGMENT DISCLOSURES

FISCAL YEAR ENDING FEBRUARY 28, 2009

(In thousands of dollars)

	(Unaudited) Three Months Ended
	May 30, 2008			May 25, 2007
Total Revenue:
North American Social Expression Products	$	302,418		$	299,944
Intersegment items		(14,644	)		(8,503	)
Exchange rate adjustment		513			(2,509	)
Net		288,287			288,932
International Social Expression Products		69,873			64,417
Exchange rate adjustment		1,087			(668	)
Net		70,960			63,749
Retail Operations		41,493			40,539
Exchange rate adjustment		490			(1,611	)
Net		41,983			38,928
AG Interactive		20,527			19,899
Exchange rate adjustment		34			(3	)
Net		20,561			19,896
Non-reportable segments		6,509			8,385
Unallocated		—			77
	$	428,300		$	419,967
Segment Earnings (Loss):
North American Social Expression Products	$	53,695		$	88,862
Intersegment items		(11,243	)		(6,522	)
Exchange rate adjustment		59			(1,650	)
Net		42,511			80,690
International Social Expression Products		2,862			176
Exchange rate adjustment		(57	)		11
Net		2,805			187
Retail Operations		(3,407	)		(2,769	)
Exchange rate adjustment		(6	)		(12	)
Net		(3,413	)		(2,781	)
AG Interactive		(1,096	)		3,279
Exchange rate adjustment		35			8
Net		(1,061	)		3,287
Non-reportable segments		(1,966	)		563
Unallocated		(19,633	)		(27,352	)
Exchange rate adjustment		(8	)		(39	)
Net		(19,641	)		(27,391	)
	$	19,235		$	54,555