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Visant Corp.'s Income Increases, Sales Flat

August 11, 2010

Adjusted EBITDA for the Memory Book segment increased $4.0 million, or 3%, to $144.9 million for the second fiscal quarter of 2010 compared to $140.9 million for the prior year comparative period. The increase in Adjusted EBITDA was primarily due to the impact of cost efficiencies.

Adjusted EBITDA for the Marketing and Publishing Services segment increased $4.0 million, or 21%, to $23.1 million during the second fiscal quarter of 2010 from $19.1 million in the second fiscal quarter of 2009. This increase was primarily attributable to higher volume in our sampling operations, synergies from facility consolidations and other operational cost reductions.

Net sales of our Scholastic segment for the six months ended July 3, 2010 increased by $7.6 million, or 3%, to $289.4 million compared to $281.8 million for the six months ended July 4, 2009. The increase was primarily attributable to higher prices in our jewelry and other scholastic products as well as the incremental impact from acquisitions completed during 2009 and 2010. The increase was offset somewhat by lower volume in our other scholastic products.

Net sales for the Memory Book segment were $283.7 million for the six-month period ended July 3, 2010 compared to $291.8 million for the six-month period ended July 4, 2009, a decrease of 3%. The decrease was primarily attributable to lower volume of memory books.

Net sales of the Marketing and Publishing Services segment increased slightly to $192.0 million for the first fiscal six months of 2010 compared to $191.1 million during the first fiscal six months of 2009. This increase was primarily attributable to higher volume in our sampling operations offset by lower volume in our publishing services and direct marketing operations.

For the six months ended July 3, 2010, the Scholastic segment reported Adjusted EBITDA of $62.5 million, compared to $62.6 million for the prior year comparative period. This slight decrease was primarily due to higher precious metal costs year over year offset somewhat by higher prices in our jewelry and other scholastic products.

Our Memory Book segment reported Adjusted EBITDA of $139.3 million for the six months ended July 3, 2010, an increase of $3.9 million, or 3%, compared to $135.4 million for the six months ended July 4, 2009. The increase was primarily due to the impact of cost efficiencies.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $49.2 million for the six months ended July 3, 2010, an increase of $7.5 million, or 18%, compared to $41.7 million for the six months of 2009. This increase was primarily due to higher volume in our sampling operations and the impact of cost reduction initiatives, offset somewhat by lower volumes in our direct marketing operations.

As of July 3, 2010, Visant's consolidated debt, comprised of the outstanding indebtedness under its senior credit facilities and its senior subordinated notes, was $832.8 million, including $16.3 million of equipment financing and capital lease obligations. Visant's cash position at July 3, 2010 totaled $15.2 million. Visant's parent, Visant Holding Corp., had outstanding senior discount notes of $247.2 million, senior notes of $350.0 million and incremental cash of $0.2 million as of July 3, 2010.

Visant has provided a reconciliation of net income to EBITDA and Adjusted EBITDA in the accompanying summary of financial data. Adjusted EBITDA for the 2009 fiscal year has been adjusted to exclude non-recurring costs incurred in connection with certain legal proceedings ongoing during such period.

Supplemental data has also been provided for Visant's three segments: Scholastic, Memory Book and Marketing and Publishing Services.

About Visant Corp.
Visant is a leading marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance and cosmetics, and educational and trade publishing segments.

The company has three reportable segments:

Scholastic - provides services in conjunction with the marketing, sale and production of class rings and an array of graduation products and other scholastic affinity products to students and administrators primarily in high schools, colleges and other post-secondary institutions.

Memory Book - provides services in conjunction with the publication, marketing, sale and production of school yearbooks, memory books and related products that help people tell their stories and chronicle important events.

Marketing and Publishing Services - provides services in conjunction with the development, marketing, sale and production of multi-sensory and interactive advertising sampling systems, primarily for the fragrance, cosmetics and personal care segments, and provides innovative products and related services to the direct marketing sector. The group also produces book components primarily for the educational and trade publishing segments.
 

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