FOR IMMEDIATE RELEASE
May 22, 2003

CSS Industries, Inc. Reports Sales and Earnings for the Year and Quarter Ended March 31, 2003

CSS Industries, Inc. (NYSE:CSS) announced today the results of operations for the year and quarter ended March 31, 2003. Sales for fiscal year 2003 increased 26% to $532,815,000 from $424,309,000, while net income before cumulative effect of change in accounting principle increased 20% to $25,846,000, or $3.14 per diluted share, from $21,501,000, or $2.40 per diluted share, in fiscal 2002. Sales for the fourth quarter of 2003 increased 123% to $56,124,000 from $25,165,000 in fiscal 2002. The net loss increased in the fourth quarter to $6,492,000, or $.84 per share, from $5,840,000, or $.67 per diluted share, in fiscal 2002. The Company adopted SFAS No. 142, “Goodwill and Other Intangible Assets”, effective with the beginning of its fiscal year, April 1, 2002, which resulted in a non-cash write-off of goodwill and negative goodwill in the amount of $8,813,000, net of taxes, or $1.07 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 increase in sales for the year and quarter ended March 31, 2003 was primarily a result of the inclusion of C.M. Offray & Son, Inc. (“Offray”), acquired on March 15, 2002, and Crystal Creative Products, Inc. (“Crystal”), acquired on October 18, 2002. The increase in net income per diluted share before the cumulative effect of the change in accounting principle from $2.40 to $3.14 is due to several factors. The elimination of the amortization of goodwill in accordance with SFAS No. 142 contributed $.12 per share and the buy back of 1,100,000 shares in June contributed $.21 per share. The additional increase of $.41 per share was due to increased sales and improved margins related to our many Christmas product lines, contributions from the recent acquisitions and the absence of the loss associated with the Kmart Chapter 11 filing. These gains were partially offset by lower sales and margins related to certain fall, spring and educational product lines.

“This past year was marked by excellent improvements in our many lines of Christmas products as well as good progress in integrating the Offray acquisition and in accelerating related cost reductions. The major disappointment was the deterioration of sales and profits in certain of the fall, spring and educational lines,” commented David J. M. Erskine, CSS President and CEO. “Looking forward, I am confident that the significant management changes we have made will reverse the deterioration in these lines. In addition, despite a weak retail environment, we anticipate that increased sales and profits from the recent acquisitions as well as improvements in our other businesses will generate EPS growth for next year of approximately 10%.”

All statements other than statements of historical fact included in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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, and other factors described in the Company’s Annual Report on Form 10-K/A for the fiscal year ended March 31, 2002. CSS’ consolidated results of operations for the three months and year ended March 31, 2003 and 2002 and condensed consolidated balance sheets as of March 31, 2003 and 2002 follow:

CSS INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED RESULTS OF OPERATIONS

(In thousands, except per share amounts)

CSS INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

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