CSS Industries, Inc. Reports Sales and Earnings for the Quarter and Six Months Ended September 30, 2006.

PHILADELPHIA -- CSS Industries, Inc. (NYSE: CSS) announced today the results of operations for the second quarter and six months ended September 30, 2006. For the quarter ended September 30, 2006, sales increased by 6% to $173,830,000 from $164,043,000 in 2005. Net income increased 27% to $11,703,000, or $1.08 per diluted share, compared to prior year net income of $9,239,000, or $.84 per diluted share. For the six months ended September 30, 2006, sales of $221,363,000 were relatively flat compared to sales of $221,537,000 in 2005. Net income increased 11% to $6,196,000, or $.57 per diluted share, compared to prior year net income of $5,584,000, or $.51 per diluted share. Included in the current year results is incremental stock option expense related to the adoption of Statement of Financial Accounting Standards ("SFAS") No. 123R. Stock option expense for the quarter and six months ended September 30, 2006 was $668,000, or $.05 per diluted share and $1,412,000, or $.10 per diluted share, respectively. The Company's highly seasonal business results in operating losses in the first and fourth quarters of the fiscal year and operating profits in the second and third quarters.

The 6% increase in sales for the quarter ended September 30, 2006 was due, in part, to a shift of seasonal sales from the first quarter to the second quarter compared to the prior year and increased Christmas card sales to a major retailer. The 27% increase in second quarter net income was the result of higher sales and improved margins, primarily in our gift wrap and tissue product lines, net of incremental stock option expense related to the adoption of SFAS No. 123R and increased selling, general and administrative costs primarily related to incentive compensation.

Sales for the six months ended September 30, 2006 were relatively flat with the prior year as increased Christmas card sales were offset by the later timing of Christmas ribbon and bow shipments. Net income improved 11% primarily as a result of improved gift wrap and tissue margins, net of increased incentive compensation expense and incremental stock option expense attributable to the adoption of the new accounting rules.

"The improvement in earnings for the quarter and six months is largely a result of the improved performance of our gift wrap and tissue product lines, which was a major objective of management," said Christopher J. Munyan, President and CEO. "As we enter our busiest shipping months, we are encouraged by the results to date and expect earnings to be in line with our previous guidance of $2.40 - $2.55 per diluted share."

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.

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 and costs relating to the imposition or retrospective application of duties on imported products, 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, 2006 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 quarters and six months ended September 30, 2006 and 2005 and condensed consolidated balance sheets as of September 30, 2006, March 31, 2006 and September 30, 2005 follow:

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