Magnivision Inc. Press Release

SMITHFIELD, RI; July 30, 2004 – AAi.FosterGrant, a market leader in sunglasses, announced today that it has reached a definitive agreement to acquire Magnivision Inc., the market leader in reading glasses. AAi.FosterGrant, a privately held company based in Smithfield, RI, is purchasing Magnivision Inc. from American Greetings Corporation (NYSE: AM), based in Cleveland, Ohio.

AAi.FosterGrant, which owns one of the largest portfolios of brands in the eyewear industry, is taking advantage of the rare availability of a market leader by acquiring the authentic and premier reading glass brand, Magnivision.

“This acquisition makes sense in every way,” said John Ranelli, Chairman, President and CEO of AAi.FosterGrant. “Both companies have achieved leadership positions in their respective markets by managing brands, developing great products, delivering industry-recognized high levels of customer service and producing exceptional retail performance. By maintaining our focus on quality and service, we will have excellent opportunities to grow both businesses by expanding in current channels and entering new markets.”

Ron Peer, Magnivision’s president said, “Magnivision and AAi.FosterGrant share core values of dedication to consumers, retailers and brands. I am confident this combination will open doors and facilitate growth opportunities through cross-selling and international expansion.”

U.S. sales of reading glasses grew 19 percent from 1998 to 2003, to nearly $400 million, according to Jobson Optical Research and the Sunglasses Association of America. The upward trend is expected to continue as the U.S. population above 40 years old is expected to increase from 126 million in 2003 to nearly 140 million in 2010, according to the US Census Bureau.

With two of the most powerful brands in eyewear, AAi.FosterGrant has dramatically strengthened its position as a diversified eyewear company serving consumers’ needs for sunglasses, reading glasses and ophthalmic products.

The Magnivision acquisition increases the company’s financial strength and stability by adding significant non-seasonal reading glass sales, which provide a counterbalance to the company’s seasonal sunglass and jewelry businesses.

Financial details of the all-cash transaction, carried out through an affiliate of AAi.FosterGrant, were not disclosed. The transaction is expected to close by the end of the third quarter, 2004 and is contingent on Hart-Scott-Rodino approval.
About AAi.FosterGrant
AAi.FosterGrant, based in Smithfield, RI, is a leading designer and marketer of branded eyewear and jewelry. Company-owned eyewear brands include FosterGrant, Gargoyles, Anarchy and Angel. The company markets eyewear under licensed brands Body Glove, Club Med, Champion, Ironman, and NASCAR’s Jeff Gordon.

About Magnivision
Magnivision Inc., a division of American Greetings Corporation, is the world’s largest manufacturer and distributor of nonprescription reading glasses sold over the counter and is based in Miramar, FL.