FOR IMMEDIATE RELEASE
July 27, 2006

CSS INDUSTRIES, INC. REPORTS SALES AND OPERATING RESULTS FOR THE QUARTER ENDED JUNE 30, 2006

CSS Industries, Inc. (NYSE:CSS) announced today the results of operations for the first quarter ended June 30, 2006. Sales decreased 17% to $47,533,000 from $57,494,000 in 2005. The net loss increased to $5,507,000, or $.52 per diluted share, compared to a prior year net loss of $3,655,000, or $.35 per diluted share. Included in the current year loss is incremental stock option expense of $744,000, or $.05 per diluted share related to the adoption of Statement of Financial Accounting Standards (“SFAS”) No. 123R . 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 reduction in sales is largely due to the later timing of seasonal direct import sales of Halloween and Christmas products. Net of these seasonal timing issues, lower sales of everyday ribbon and bow products were partially offset by increased sales of all occasion greeting cards and school products. The increased loss in the first quarter was primarily the result of lower sales volume and the impact of expensing stock options due to the first quarter adoption of SFAS No. 123R.

“Due to the seasonal nature of our business, the first quarter of the fiscal year is a relatively quiet one from the standpoint of financial results. Over the past three months, management has continued our focus on improving the performance of our gift wrap and tissue product lines. At this time, we are encouraged that the significant improvement planned for the current fiscal year is on track,” commented Christopher J. Munyan, CSS President and CEO. “Although it is early in the year, our current information supports our previous earnings guidance of $2.40 to $2.55 per diluted share. This result includes estimated stock option expense of approximately $.20 per diluted share as a result of the adoption of the new accounting rules,” continued Mr. Munyan.

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, 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 ended June 30, 2006 and 2005 and consolidated condensed balance sheets as of June 30, 2006, March 31, 2006 and June 30, 2005 follow:

CSS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED RESULTS OF OPERATIONS (Unaudited)

(In thousands, except per share amounts)	Three Months Ended June 30,
	2006		2005
SALES	$47,533		$57,494
COSTS AND EXPENSES
Cost of sales	34,063		42,765
Selling, general and administrative expenses	22,204		19,985
Interest expense, net	134		442
Other income, net	(162	)	(5	)
	$56,239		$63,187
LOSS BEFORE INCOME TAXES	(8,706	)	(5,693	)
INCOME TAX BENEFIT	(3,199	)	(2,038	)
NET LOSS	$  (5,507	)	$  (3,655	)
BASIC AND DILUTED NET LOSS PER COMMON SHARE	$(.52	)	$(.35	)
WEIGHTED AVERAGE BASIC AND DILUTED SHARES OUTSTANDING	10,496		10,415