EXHIBIT 99.1

AMERICAN GREETINGS ANNOUNCES SECOND QUARTER EARNINGS

CLEVELAND (September 29, 2010) – American Greetings Corporation (NYSE: AM) today announced its results for the second fiscal quarter ended August 27, 2010.

Second Quarter Results

For the second quarter of fiscal 2011, the Company reported total revenue of $342.8 million, pre-tax income of $17.0 million, and net income of $8.5 million or 21 cents per share (all per-share amounts assume dilution). Compared to the prior year, revenue was down approximately $13.6 million. Approximately $10.2 million of the revenue decline was a result of the party goods transaction that occurred in December 2009. Holding aside the effect of the party goods transaction, revenue declined about $3.4 million or approximately one percent. Also during the quarter, the Company incurred pre-tax costs associated with the integrations of Papyrus and Recycled Paper Greetings of $5.2 million (after tax of approximately $3.2 million) or approximately 8 cents per share.

For the second quarter of fiscal 2010, the Company reported total revenue of $356.4 million, pre-tax income of $34.1 million, and net income of $23.1 million or 59 cents per share. Included within these results was a pre-tax benefit from an insurance program of $7.9 million (after tax of approximately $7.6 million) or approximately 19 cents per share.

Management Comments and Outlook

Chief Executive Officer Zev Weiss said, “I am pleased with our overall performance in the first half of this year. While we continue to see an erratic recovery in the economy and its effect on our top line, our team has executed well on cost containment and that execution has directly led to healthy cash flow. Our cash flow from operations minus capital expenditures of $74 million in the first half gets us more than halfway to our full year forecast of approximately $125 million.”

For fiscal year 2011, the Company continues to anticipate cash flow from operating activities of about $165 million and capital expenditures of approximately $40 million resulting in cash flow from operating activities minus capital expenditures of approximately $125 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 at http://investors.americangreetings.com. A replay of the call will be available on the site.

About American Greetings Corporation

For more than 100 years, American Greetings Corporation (NYSE: AM) has been a creator and manufacturer of innovative social expression products that assist consumers in enhancing their relationships. The Company’s major greeting card lines are American Greetings, Carlton Cards, Gibson, Recycled Paper Greetings and Papyrus, and other paper product offerings include DesignWare party goods and American Greetings and Plus Mark gift-wrap and boxed cards. American Greetings also has the largest collection of electronic greetings on the Web, including cards available at AmericanGreetings.com through AG Interactive, Inc. (the Company’s online division). AG Interactive also offers digital photo sharing and personal publishing at PhotoWorks.com and Webshots.com and provides a one-stop source for online graphics and animations at Kiwee.com. In addition to its product lines, American Greetings also creates and licenses popular character brands through the American Greetings Properties group. Headquartered in Cleveland, Ohio, American Greetings generates annual revenue of approximately $1.6 billion, and its products can be found in retail outlets worldwide. For more information on the Company, visit http://corporate.americangreetings.com.

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CONTACT:

Gregory M. Steinberg
Treasurer and Executive Director of Investor Relations
American Greetings Corporation
216-252-4864
investor.relations@amgreetings.com

Non-GAAP Measures

Certain revenue, after-tax, earnings per share, and liquidity amounts included in this release may be considered non-GAAP measures under the Securities and Exchange Commission’s Regulation G. The after-tax amounts were calculated based on the Company’s statutory tax rate of approximately 38.9%. Management believes that providing adjusted revenue information is useful to investors as it explains the impact of the party goods transaction on the Company’s total revenue. In addition, Management believes that providing after-tax and earnings per share information is useful to investors in analyzing the Company’s results and that cash flow from operating activities minus capital expenditures provides a liquidity measure useful to investors in analyzing the cash generation of the Company.

Factors That May Affect Future Results

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 and general economic conditions;
	•		the ability to achieve both the desired benefits from the transaction with Amscan as well as ensuring a seamless transition for affected retail customers and consumers;
	•		the Company’s successful transition of the Retail Operations segment to its buyer, Schurman Fine Papers, and Schurman Fine Papers’ ability to successfully operate its retail operations and satisfy its obligations to the Company;

	•		the Company’s ability to successfully integrate both Recycled Paper Greetings and Papyrus;
	•		retail consolidations, acquisitions and bankruptcies, including the possibility of resulting adverse changes to retail contract terms;
	•		the ability to achieve the desired benefits associated with the Company’s cost reduction efforts;
	•		competitive terms of sale offered to customers;
	•		the ability to successfully implement, or achieve the desired benefits associated with, any information systems refresh the Company may implement;
	•		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 Company’s ability to achieve the desired accretive effect from any share repurchase programs;
	•		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; 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 ability to adapt to rapidly changing social media and 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.

AMERICAN GREETINGS CORPORATION
SECOND QUARTER CONSOLIDATED STATEMENT OF INCOME
FISCAL YEAR ENDING FEBRUARY 28, 2011

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

						(Unaudited)
		Three Months Ended								Six Months Ended
		August 27, 2010				August 28, 2009				August 27, 2010				August 28, 2009
Net sales		$	333,339			$	348,639			$	725,444			$	757,916
Other revenue			9,480				7,711				13,683				11,356
Total revenue			342,819				356,350				739,127				769,272
Material, labor and other production costs			145,713				153,248				303,726				320,417
Selling, distribution and marketing expenses			112,318				117,531				229,869				249,748
Administrative and general expenses			62,193				48,483				128,225				111,634
Other operating (income) expense — net			(936	)			(1,397	)			(1,530	)			26,376
Operating income			23,531				38,485				78,837				61,097
Interest expense			6,718				6,671				12,920				13,658
Interest income			(197	)			(989	)			(410	)			(1,265	)
Other non-operating income — net			(3	)			(1,291	)			(1,703	)			(2,333	)
Income before income tax expense			17,013				34,094				68,030				51,037
Income tax expense			8,481				10,972				28,659				17,954
Net income		$	8,532			$	23,122			$	39,371			$	33,083
Earnings per share — basic		$	0.21			$	0.59			$	0.99			$	0.84
Earnings per share — assuming dilution		$	0.21			$	0.59			$	0.96			$	0.84
Average number of common shares outstanding			40,026,649				39,407,532				39,832,609				39,508,240
Average number of common shares outstanding - assuming dilution			40,875,329				39,407,532				40,861,761				39,508,240
Dividends declared per share		$	0.14			$	0.12			$	0.28			$	0.12

AMERICAN GREETINGS CORPORATION
SECOND QUARTER CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FISCAL YEAR ENDING FEBRUARY 28, 2011

(In thousands of dollars)

		(Unaudited)
		August 27, 2010				August 28, 2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	133,834			$	49,903
Trade accounts receivable, net			89,408				92,167
Inventories			189,366				199,941
Deferred and refundable income taxes			61,742				59,082
Assets held for sale			11,868				23,188
Prepaid expenses and other			113,112				148,868
Total current assets			599,330				573,149
GOODWILL			29,929				26,393
OTHER ASSETS			413,809				367,574
DEFERRED AND REFUNDABLE INCOME TAXES			153,775				171,419
Property, plant and equipment — at cost			850,025				859,695
Less accumulated depreciation			609,901				595,757
PROPERTY, PLANT AND EQUIPMENT — NET			240,124				263,938
		$	1,436,967			$	1,402,473
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Debt due within one year		$	—			$	1,000
Accounts payable			88,668				96,279
Accrued liabilities			74,129				82,082
Accrued compensation and benefits			48,287				50,925
Income taxes payable			23,052				2,856
Other current liabilities			89,111				94,462
Total current liabilities			323,247				327,604
LONG-TERM DEBT			231,525				335,372
OTHER LIABILITIES			174,372				127,066
DEFERRED INCOME TAXES AND NONCURRENT INCOME TAXES PAYABLE			32,194				30,434
SHAREHOLDERS’ EQUITY
Common shares — Class A			37,137				35,923
Common shares — Class B			2,923				3,477
Capital in excess of par value			482,035				451,328
Treasury stock			(951,682	)			(941,198	)
Accumulated other comprehensive loss			(30,815	)			(40,562	)
Retained earnings			1,136,031				1,073,029
Total shareholders’ equity			675,629				581,997
		$	1,436,967			$	1,402,473

AMERICAN GREETINGS CORPORATION
SECOND QUARTER CONSOLIDATED STATEMENT OF CASH FLOWS
FISCAL YEAR ENDING FEBRUARY 28, 2011
(In thousands of dollars)

		(Unaudited)
		Six Months Ended
		August 27, 2010				August 28, 2009
OPERATING ACTIVITIES:
Net income		$	39,371			$	33,083
Adjustments to reconcile net income to cash flows from operating activities:
Net (gain) loss on dispositions			(254	)			27,696
Net (gain) loss on disposal of fixed assets			(1,268	)			9
Depreciation and intangible assets amortization			20,463				23,466
Deferred income taxes			10,618				26,708
Other non-cash charges			8,210				4,622
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Trade accounts receivable			44,279				(10,877	)
Inventories			(24,908	)			(15,714	)
Other current assets			(2,169	)			12,801
Income taxes			15,125				(2,376	)
Deferred costs — net			27,905				11,885
Accounts payable and other liabilities			(54,639	)			(20,439	)
Other — net			5,814				(6,698	)
Total Cash Flows From Operating Activities			88,547				84,166
INVESTING ACTIVITIES:
Property, plant and equipment additions			(14,128	)			(15,447	)
Cash payments for business acquisitions, net of cash acquired			—				(19,300	)
Proceeds from sale of fixed assets			2,997				729
Proceeds from escrow related to party goods transaction			25,151				—
Other — net			—				3,063
Total Cash Flows From Investing Activities			14,020				(30,955	)
FINANCING ACTIVITIES:
Net decrease in long-term debt			(98,250	)			(54,750	)
Net decrease in short-term debt			(1,000	)			—
Sale of stock under benefit plans			19,025				91
Purchase of treasury shares			(13,052	)			(6,176	)
Dividends to shareholders			(11,127	)			(9,593	)
Debt issuance costs			(2,917	)			—
Total Cash Flows From Financing Activities			(107,321	)			(70,428	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH			639				6,904
DECREASE IN CASH AND CASH EQUIVALENTS			(4,115	)			(10,313	)
Cash and Cash Equivalents at Beginning of Year			137,949				60,216
Cash and Cash Equivalents at End of Period		$	133,834			$	49,903

AMERICAN GREETINGS CORPORATION
SECOND QUARTER CONSOLIDATED SEGMENT DISCLOSURES
FISCAL YEAR ENDING FEBRUARY 28, 2011
(In thousands of dollars)

		(Unaudited)
		Three Months Ended								Six Months Ended
		August 27, 2010				August 28, 2009				August 27, 2010				August 28, 2009
Total Revenue:
North American Social Expression Products		$	248,723			$	266,886			$	552,891			$	590,699
Intersegment items			—				—				—				(5,104	)
Exchange rate adjustment			3,435				2,043				7,576				2,413
Net			252,158				268,929				560,467				588,008
International Social Expression Products			54,962				54,590				112,763				110,641
Exchange rate adjustment			(226	)			2,150				(454	)			(1,139	)
Net			54,736				56,740				112,309				109,502
Retail Operations			—				—				—				11,727
Exchange rate adjustment			—				—				—				112
Net			—				—				—				11,839
AG Interactive			18,260				18,401				36,926				37,350
Exchange rate adjustment			(93	)			96				(205	)			(8	)
Net			18,167				18,497				36,721				37,342
Non-reportable segments			17,758				11,964				29,630				22,361
Unallocated			—				220				—				220
		$	342,819			$	356,350			$	739,127			$	769,272
Segment Earnings (Loss):
North American Social Expression Products		$	33,613			$	42,780			$	101,720			$	120,766
Intersegment items			—				—				—				(3,511	)
Exchange rate adjustment			1,501				991				3,443				1,072
Net			35,114				43,771				105,163				118,327
International Social Expression Products			1,361				2,310				4,195				2,823
Exchange rate adjustment			(36	)			5				(36	)			(169	)
Net			1,325				2,315				4,159				2,654
Retail Operations			—				—				—				(34,830	)
Exchange rate adjustment			—				—				—				(285	)
Net			—				—				—				(35,115	)
AG Interactive			2,945				1,903				5,419				3,699
Exchange rate adjustment			(59	)			28				(161	)			(54	)
Net			2,886				1,931				5,258				3,645
Non-reportable segments			3,317				367				5,469				238
Unallocated			(25,764	)			(14,191	)			(52,163	)			(39,043	)
Exchange rate adjustment			135				(99	)			144				331
Net			(25,629	)			(14,290	)			(52,019	)			(38,712	)
		$	17,013			$	34,094			$	68,030			$	51,037