FOR IMMEDIATE RELEASE
January 26, 2005

CSS INDUSTRIES, INC. REPORTS SALES AND EARNINGS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2004

CSS Industries, Inc. (NYSE:CSS) announced today the results of operations for the third quarter and nine months ended December 31, 2004. For the quarter ended December 31, 2004, sales of $247,169,000 were flat compared to sales of $247,394,000 in 2003. Net income decreased 13% to $23,971,000, or $1.91 per diluted share, compared to prior year net income of $27,397,000, or $2.18 per diluted share. For the nine months ended December 31, 2004, sales decreased by 1% to $478,435,000 from $484,846,000 in 2003. Net income decreased 6% to $35,177,000, or $2.79 per diluted share, compared to a prior year net income of $37,574,000, or $3.05 per diluted share. The Company’s highly seasonal orientation results in operating losses in the first and fourth quarters of the fiscal year and operating profits in the second and third quarters.

The decrease in sales for the nine months ended December 31, 2004 was primarily the result of lower ribbon and bow sales, the absence of sales related to a product line which was sold in July 2003 and the later timing of Valentine shipments which pushed sales into the fourth quarter. These sales declines were partially offset by improved Christmas and Everyday boxed greeting card sales. The decline in net income was primarily the result of lower sales and lower margins caused by our establishment of a pre-tax reserve of $3,100,000 for duties that may be imposed on imported tissue products (discussed below), higher freight costs and higher material costs. These negative factors were partially offset by decreased selling, general and administrative expenses, primarily related to compensation, and reduced interest expense.

In September 2004, the U.S. Commerce Department issued its preliminary determination in the anti-dumping duty investigation on certain tissue paper products imported from China. As a result of this determination, the Company and other importers are required to post bond or a cash deposit upon importation of these products at rates reflecting the Commerce Department’s estimate of the duties that may be imposed on these products. In November 2004 and January 2005, the Commerce Department denied requests to reduce these deposit rates pending the issuance of its final determination. The actual amount of the duties, if imposed, may be higher or lower than the deposit rates, depending on the final determinations of the Commerce Department and the U.S. International Trade Commission, which are expected to be issued in February 2005 and March 2005, respectively, and any reviews that may be undertaken by the Commerce Department thereafter. The Company’s exposure is estimated to be in the range of approximately $.03 to $.16 per diluted share. The Company is vigorously contesting the imposition of these duties, however given the preliminary determinations of the Commerce Department and the International Trade Commission, the Company has established a reserve for its estimated maximum exposure of $.16 per share in the current quarter.

“Reflecting the estimated maximum exposure to tissue duties (approximately $.16 per share) and the third quarter year to date results, we now expect EPS growth for the fiscal year of between 0% and 5%,” said David Erskine, President and CEO. “We are disappointed in these results and have taken several steps to improve them for next year. These steps include the identification of new tissue sources that are not subject to duty, as well as the negotiation of new freight arrangements,” he continued.

CSS is a consumer products company primarily engaged in the manufacture and sale to mass market retailers of seasonal, social expression products, including gift wrap, gift bags, boxed greeting cards, gift tags, tissue paper, paper and vinyl decorations, classroom exchange Valentines, decorative ribbons and bows, Halloween masks, costumes, make-ups and novelties, educational products and Easter egg dyes and novelties.

All statements other than statements of historical fact included in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including without limitation, general market conditions, increased competition, and other factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2004.

CSS’ consolidated results of operations for the quarters ended December 31, 2004 and 2003 and consolidated condensed balance sheets as of December 31, 2004, March 31, 2004 and December 31, 2003 follow:

CSS INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)

(In thousands, except per share data)

CSS INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

FOR FURTHER INFORMATION CONTACT:
Vincent A. Paccapaniccia
Chief Financial Officer
tele: (215) 569-9900