FOR IMMEDIATE RELEASE
May 23, 2006

CSS INDUSTRIES, INC. REPORTS SALES AND EARNINGS FOR THE YEAR AND QUARTER ENDED MARCH 31, 2006

CSS Industries, Inc. (NYSE:CSS) announced today the results of operations for the year and quarter ended March 31, 2006. Sales for fiscal year 2006 decreased 2% to $525,494,000 from $536,362,000, while net income decreased 29% to $21,841,000, or $2.00 per diluted share, from $30,692,000, or $2.45 per diluted share, in fiscal 2005. Sales for the fourth quarter of 2006 decreased 10% to $52,161,000 from $57,927,000 in fiscal 2005. The net loss increased in the fourth quarter to $7,667,000, or $.73 per diluted share, from $4,485,000, or $.38 per diluted share, in fiscal 2005. 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 sales decline of 2% in fiscal 2006 was primarily due to lower sales of Christmas gift wrap, everyday ribbons and bows and boxed greeting cards. Improved sales of seasonal tissue and gift bags partially offset the above sales declines. Net income declined 29% in fiscal 2006 due primarily to the impact of overall lower sales and poor operating performance of our gift wrap and tissue product lines. This poor performance was primarily due to increased product and energy costs, including increased fuel costs during our peak seasonal shipping season. Incremental costs associated with recruitment and relocation of key managers, severance associated with a workforce reduction and costs related to closing a warehouse also contributed to lower than expected operating results. Reduced customer program expenses and decreased incentive compensation partially offset the above negative results.

Sales for the fourth quarter declined 10% as a result of a shift in Valentine shipments from the fourth quarter to the third quarter in the current fiscal year and lower everyday sales compared to the prior year. The net loss increased 71% primarily as a result of lower sales, increased inventory obsolescence reserves and severance costs related to a workforce reduction.

“Fiscal 2006 was a disappointing year, particularly in our gift wrap and tissue product lines. We anticipate significant improvement in the profitability of these product lines for fiscal 2007, primarily as a result of improved management, improved sourcing of materials, and cost reduction initiatives,” commented David J. M. Erskine, CSS President and CEO. “Assuming the successful turnaround of the gift wrap and tissue product lines, we expect EPS to be in the range of $2.40 to $2.55 per diluted share for the fiscal year ending March 31, 2007. This result includes estimated stock option expense of approximately $.19 per diluted share as a result of the adoption in fiscal 2007 of Financial Accounting Standards Board Statement No. 123(R).”

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements relating to expected future earnings and financial performance. 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 as to future events and financial performance with respect to the Company’s operations. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they were made. 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, increased operating and product costs, including labor-related and energy costs, currency risks and other risks associated with international markets, the risk that customers may become insolvent, costs of compliance with governmental regulations and government investigations, liability associated with non-compliance with governmental regulations, including regulations pertaining to the environment, Federal and state employment laws, and import and export controls and customs laws, and other factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2005 and elsewhere in the Company’s SEC filings. As a result of these factors, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company. CSS’ consolidated results of operations for the three months and years ended March 31, 2006 and 2005 and condensed consolidated balance sheets as of March 31, 2006 and 2005 follow:

CSS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED RESULTS OF OPERATIONS

(In thousands, except per share amounts)	Year Ended March 31,				Three Months Ended March 31,
	2006		2005		2006		2005
					(Unaudited)		(Unaudited)
SALES	$525,494		$536,362		$52,161		$57,927
COSTS AND EXPENSES
Cost of sales	399,605		397,538		41,797		44,268
Selling, general and administrative expenses	90,248		89,997		23,343		21,013
Interest expense, net	3,279		2,374		297		342
Rental and other income, net	(354	)	(665	)	(172	)	(22	)
	$492,778		$489,244		$65,265		$65,601
INCOME (LOSS) BEFORE INCOME TAXES	32,716		47,118		(13,104	)	(7,674	)
INCOME TAX EXPENSE (BENEFIT)	10,875		16,426		(5,437	)	(3,189	)
NET INCOME (LOSS)	$  21,841		$  30,692		$  (7,667	)	$  (4,485	)
NET INCOME (LOSS) PER COMMON SHARE
Basic	2.08		$2.58		$(.73	)	$(.38	)
Diluted	$2.00		$2.45		$(.73	)	$(.38	)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	10,482		11,886		10,477		11,799
Diluted	10,935		12,544		10,477		11,799