American Greetings Considering Seven Sites for World Headquarters

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Nov 19, 2010, 10:30 ET

BROOKLYN, Ohio, Nov. 19, 2010 /PRNewswire-FirstCall/ -- American Greetings (NYSE: AM) announced today that it is focusing on seven sites for the location of its 2,000-employee corporate headquarters.

No decision has been made to relocate the headquarters, which is now in Brooklyn. The existing American Greetings location is one of the seven sites under consideration.

"We are an evolving Company in a changing industry, and we must adapt our headquarters building – whether it remains in Brooklyn or is relocated – to most efficiently accommodate us today and in the future," said Brian McGrath, Senior Vice President of Human Resources. "Competitive businesses that wish to remain successful must adjust and position themselves for the future, and that's what American Greetings is doing by conducting an exhaustive examination of our workplace needs."

"Our business, and the way we conduct it, has changed significantly in recent years and will continue to change," he continued. "We continue to grow our interactive online business while incorporating more innovative technology into our core greeting card business."

McGrath said that the review continues but significant progress has been made. Numerous factors are being considered including operating costs associated with a new or renovated facility, costs associated with any move or relocation, employee recruitment considerations and the enhancement of the Company's creative environment and culture.

"Whether we upgrade our existing facility or relocate, American Greetings looks forward to providing a stimulating environment designed to inspire and encourage creative thinking," McGrath said. "The Company's continued success depends in large part upon the ability to keep and attract high-skilled, creative talent. Improving our office space will help us in recruitment efforts."

The Company began to assess the location of its headquarters office only after the city of Brooklyn increased its income tax rate while lowering the residential property tax rate – effectively shifting taxes from the voting residents to the non-voting associates of American Greetings and other Brooklyn employers. The tax increase prompted a broader study of American Greetings' operations and its future facility needs.

More information and analysis is needed on each of the locations to determine which will be the most viable for American Greetings' economic future and competitiveness.

The Company considered more than 15 sites in Ohio and sites in three other states, and has narrowed the list to seven:

Brooklyn, OH – One American Road, current headquarters
Beachwood, OH – Harvard Road interchange at Interstate 271, known as Chagrin Highlands
Brecksville, OH – along the I-77 corridor
Chicago, IL – Two sites in greater Chicago
Independence, OH – Rockside Road near Oak Tree Blvd.
Westlake, OH – Crocker Road and Detroit Avenue, near Crocker Park

"These sites are all different and they each offer unique characteristics that we find appealing, but there is more work that needs to be completed before we can decide which site will be in the long-term best interests of this Company," McGrath said.

American Greetings has hired real estate, finance and architecture experts to assist with the site assessments.

"We want to thank our associates for their patience in this process," McGrath added. "While we still have some work to do, we wanted to share what we could with the community and our colleagues at this time."

McGrath said the Company hopes to make a decision by, or close to, the end of February 2011 – which marks the conclusion of American Greetings' fiscal year.

American Greetings, a Fortune 1,000 company, has a local annual payroll of more than $150 million.

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.

SOURCE American Greetings Corporation