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ARTISTIC GREETINGS REACHES NEW STANDSTILL WITH AMERICAN GREETINGS

 ARTISTIC GREETINGS REACHES NEW STANDSTILL
 WITH AMERICAN GREETINGS
 ELMIRA, N.Y., June 18 /PRNewswire/ -- Artistic Greetings Incorporated (NASDAQ: ARTG) today announced it has reached a new Standstill Agreement with its largest shareholder, American Greetings Corporation (NASDAQ: AGREA), allowing American to keep its 40 percent stake and permit Artistic to remain independent to pursue alternatives designed to maximize shareholder values.
 The standstill pact culminates a six-month investigation by a special committee at Artistic that examined the mail order company's ties to the greeting card giant.
 The company also announced it has signed a new marketing pact with American Greetings Corporation of Cleveland, that gives Artistic the right to begin selling products manufactured by the greeting card company via the mail on an exclusive basis.
 Under the new Standstill, American is prohibited from purchasing any more shares of Artistic and will be able to vote its shares only in accordance with the Artistic board's recommendations to shareholders. If American wishes to sell any of its shares it must first offer them to Artistic before they can be sold to the public in a registered offering or under Rule 144.
 Under a previous Standstill Agreement, American had certain rights, if it wished to purchase the entire company. However, both parties agreed it was in the shareholders' best interests that the company remain public and independent. The new Standstill Agreement grants American no special rights regarding the acquisition of Artistic.
 The agreement is the result of a special board committee appointed by Artistic to examine Artistic's alternatives with respect to its relationship with American Greetings. The committee determined it was in the best interest of the company to remain an independent public corporation and continue its business relationship with American.
 American will retain two seats on the seven-member board. American, upon ninety (90) days written notice, can terminate the standstill pact. If it does, Artistic, however, has first right to purchase any of those shares or to require American to sell any or all of its stock in a registered offering. Artistic also may terminate the agreement on written notice of one year after May, 1996, or on termination of the Marketing Agreement.
 Artistic Greetings specializes in mail order of personalized products such as name and address labels, stationery, pens, pencils, luggage tags and a host of other products. It sells through catalogs, newspapers and magazines.
 -0- 6/18/92
 /CONTACT: Richard C. Bast, vice president finance for Artistic Greetings Incorporated, 607-737-5235, ext. 268/
 (ARTG, AGREA) CO: Artistic Greetings, Inc. ST: New York IN: REA SU:


BM -- CL010 -- 1670 06/18/92 17:00 EDT
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Publication:PR Newswire
Date:Jun 18, 1992
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