Visant’s Net Income Slumps on Nearly Flat Net Sales

• Net sales for the Marketing and Publishing Services segment decreased $1.8 million, or 2 percent, to $88.7 million from $90.5 million for the second fiscal quarter of 2010. This decrease was primarily attributable to lower volume in our publishing services operations offset by the impact of higher sampling sales including sales from the company’s acquisition of Color Optics completed on April 4, 2011.

The Scholastic segment reported adjusted EBITDA of $30.0 million, a decrease of $0.8 million compared to $30.8 million for the second fiscal quarter of 2010. This decrease was primarily due to higher precious metal costs.

Adjusted EBITDA for the Memory Book segment was $141.7 million, a decrease of $3.2 million compared to $144.9 million for the second fiscal quarter of 2010. This decrease was primarily attributable to lower volume.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $19.5 million, a decrease of $3.6 million compared to $23.1 million for the second fiscal quarter of 2010. This decrease was primarily due to lower volume in our publishing services operations.

Net sales of our Scholastic segment for the six months ended July 2, 2011 increased by $2.6 million, or 1 percent, to $292.0 million compared to $289.4 million for the six months ended July 3, 2010. This increase was primarily attributable to higher volume and prices in our jewelry products.

Net sales for the Memory Book segment were $274.4 million for the six-month period ended July 2, 2011, a decrease of 3 percent, compared to $283.7 million for the six-month period ended July 3, 2010. This decrease was primarily attributable to lower volume.

Net sales of the Marketing and Publishing Services segment decreased $14.5 million, or 8 percent, to $177.5 million for the first six months of fiscal 2011 compared to $192.0 million during the first six months of fiscal 2010. This decrease was primarily attributable to lower volume in our publishing services operations offset by the impact of higher sampling sales including those from the acquisition of Color Optics.

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