FOR IMMEDIATE RELEASE
January 24, 2008

CSS INDUSTRIES, INC. REPORTS SALES AND EARNINGS FOR THE NINE MONTHS AND QUARTER ENDED DECEMBER 31, 2007

CSS Industries, Inc. (NYSE:CSS) announced today the results of operations for the nine months and third quarter ended December 31, 2007. For the nine months ended December 31, 2007, sales decreased by 9% to $441,854,000 from $485,428,000 in 2006 while net income increased 8% to $31,962,000, or $2.88 per diluted share compared to prior year net income of $29,486,000, or $2.71 per diluted share.  For the quarter ended December 31, 2007, sales decreased by 16% to $222,170,000 from $264,065,000 in the prior year.  Net income for the quarter decreased 2% to $22,854,000, or $2.07 per diluted share, compared to prior year net income of $23,290,000, or $2.13 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 9% decrease in sales for the nine months ended December 31, 2007 was primarily due to expected lower sales of Christmas items to warehouse clubs and lower sales of Christmas gift wrap, tissue and gift bags and educational products, partially offset by incremental sales of C.R. Gibson (less than 1% of year to date sales), which was acquired on December 3, 2007.  The increase in net income is primarily related to current year savings and the absence of prior year costs associated with a restructuring plan implemented in November 2006.  Under this plan, the Company combined the operations of the its Berwick Offray LLC and Cleo Inc subsidiaries, closed a production facility and exited a non-material, non-core business.  Improved gross margins in certain Christmas product lines and reduced interest expense also added to the increase in earnings for the year, while reduced sales volume offset a large portion of the earnings improvement.

Sales declined 16% for the quarter ended December 31, 2007, largely as a result of the earlier timing of Christmas shipments in the second quarter compared to a year ago and lower sales of Christmas gift wrap, tissue and gift bags and educational products.  The sales declines were partially offset by incremental sales of newly acquired C.R. Gibson (less than 2% of sales in the quarter).  The decline in net income was due to reduced sales volume, partially offset by improved gross margins on certain Christmas product lines, lower interest expense and savings and the absence of costs in the prior year quarter associated with the restructuring plan implemented in fiscal 2007.

The Company also announced that its Cleo subsidiary has reached an agreement with the labor union representing approximately 600 production and maintenance employees at Cleo’s Memphis, TN facility concerning the provisions of a new collective bargaining agreement to replace the prior agreement, which expired on December 31, 2007.  The term of the new labor agreement extends until December 31, 2010.

CSS is a consumer products company primarily engaged in the design and sale of seasonal and all occasion products, principally to mass market retailers.  These products include gift wrap, gift bags, gift boxes, boxed greeting cards, gift tags, decorative tissue paper, decorations, classroom exchange Valentines, decorative ribbons and bows, Halloween masks, costumes, make-ups and novelties, Easter egg dyes and novelties, craft and educational products, memory books, stationery, journals and notecards, infant and wedding photo albums and scrapbooks, and other gift items that commemorate life’s celebrations.

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, future growth of the Company and expected future costs associated with the project relating to the closure of the Company’s Elysburg, Pennsylvania and Troy, Pennsylvania facilities.  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 costs, including labor-related and energy costs and costs relating to the imposition or retrospective application of duties on imported products, currency risks and other risks associated with international markets, risks associated with the closure of the Company’s Elysburg, Pennsylvania and Troy, Pennsylvania facilities, including the risk that the cost of the project will exceed expectations and that the restructuring related savings may not meet the expected amounts, risks associated with the Company’s ERP systems standardization project, including the risk that the cost of the project will exceed expectations, the risk that the expected benefits of the project will not be realized and the risk that implementation of the project will interfere with and adversely affect the Company’s operations and financial performance, 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, 2007 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 statements of operations for the three and nine months ended December 31, 2007 and 2006 and condensed consolidated balance sheets as of December 31, 2007, March 31, 2007 and December 31, 2006 follow:

CSS INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands) Dec 31, 2007 Mar 31, 2007 Dec 31, 2006      ASSETS CURRENT ASSETS Cash and cash equivalents $26,892 $100,091 $10,303 Accounts receivable, net 163,350 37,169 223,944 Inventories 92,017 82,138 66,455 Deferred income taxes 8,498 8,645 7,718 Asset held for sale 2,564 2,564 2,796 Other current assets 13,370 13,665 13,234 Total current assets 306,691 244,272 324,450 PROPERTY, PLANT AND EQUIPMENT, NET 54,234 58,897 61,307 OTHER ASSETS      Intangible assets, net 91,215 35,280 35,304      Other 3,632 4,621 3,806           Total other assets 94,847 39,901 39,110           Total assets $455,772 $343,070 $424,867      LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES      Notes payable $50,000 $ — $42,400      Current portion of long-term debt 10,244 10,195 10,195      Accrued customer programs 17,419 10,290 16,516      Accrued restructuring expenses 264 1,456 1,232      Other current liabilities 74,779 34,022 61,498           Total current liabilities 152,706 55,963 131,841 LONG-TERM DEBT, NET OF CURRENT PORTION 10,255 20,392 20,441 LONG-TERM OBLIGATIONS 6,158 3,221 3,300 DEFERRED INCOME TAXES 2,521 2,384 5,080 STOCKHOLDERS' EQUITY 284,132 261,110 264,205           Total liabilities and stockholders' equity $455,772 $343,070 $424,867

CSS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)   (In thousands, except per share amounts) Three Months Ended December 31,   Nine Months Ended December 31,     2007   2006   2007   2006   SALES $222,170   $264,065   $441,854   $485,428             COSTS AND EXPENSES      Cost of sales 160,788   197,695   320,990   360,761        Selling, general and administrative expenses 25,545   26,424   71,493   73,917        Restructuring Expenses 105   1,745   (2)   1,745        Interest expense, net 810   1,446   720   2,663        Other income, net (51 ) (130 ) (452 ) (358 )           187,197   227,180   392,749   438,728           INCOME BEFORE INCOME TAXES 34,973   36,885   49,105   46,700     INCOME TAX EXPENSE 12,119   13,595   17,143   17,214           NET INCOME $22,854   $23,290   $31,962   $29,486             NET INCOME PER COMMON SHARE      Basic $2.12   $2.19   $2.95   $2.79                Diluted $2.07   $2.13   $2.88   $2.71             WEIGHTED AVERAGE SHARES OUTSTANDING Basic 10,759   10,641   10,833   10,565           Diluted 11,036   10,931   11,115   10,863             CASH DIVIDENDS PER SHARE OF COMMON STOCK $.14   $.12   $.42   $.36

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