FOR IMMEDIATE RELEASE
October 25, 2007

CSS INDUSTRIES, INC. REPORTS SALES AND EARNINGS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2007

CSS Industries, Inc. (NYSE:CSS) announced today the results of operations for the second quarter and six months ended September 30, 2007.  For the quarter ended September 30, 2007, sales decreased by 1% to $172,882,000 from $173,830,000 in 2006.  Net income increased 16% to $13,535,000, or $1.22 per diluted share, compared to prior year net income of $11,703,000, or $1.08 per diluted share.  For the six months ended September 30, 2007, sales of $219,684,000 decreased 1% compared to sales of $221,363,000 in 2006.  Net income increased 47% to $9,108,000, or $.82 per diluted share, compared to prior year net income of $6,196,000, or $.57 per diluted share. The Company’s highly seasonal business results in operating losses in the first and fourth quarters of the fiscal year and operating profits in the second and third quarters.

The 1% decline in sales for the quarter and six months ended September 30, 2007 is primarily the result of reduced boxed greeting card sales to warehouse clubs and lower sales of educational products, partially offset by the earlier timing of certain Christmas product line shipments, particularly gift wrap.  Net income improved 16% for the quarter and 47% for the six months ended September 30, 2007 largely due to the reduced cost structure resulting from the restructuring program implemented in November of 2006, which combined the operations of the Company’s Cleo Inc and Berwick Offray LLC subsidiaries, as well as lower interest expense on reduced borrowings compared to the prior year.

The Board of Directors of the Company recently approved a systems integration plan designed to standardize the enterprise resource planning (“ERP”) systems, master data and business processes across all CSS businesses.  Oracle Corp.’s JD Edwards EnterpriseOne is currently utilized at the Company’s Paper Magic Group and was selected as the ERP solution for all of CSS.  The Company believes this project, which is expected to be implemented in phases over two and one-half years, will provide a sound, cost effective foundation for the future growth of CSS, as well as provide the systems and business process infrastructure for future acquisitions and operating efficiencies.  The incremental cash outlay for this initiative over a two and one-half year period is projected to be $8,100,000.  During fiscal 2008, the Company expects the cash outlay to be $4,500,000 with no material impact on the income statement.

“We are pleased to announce that quarterly and six month results are in line with our expectations.  Furthermore, we continue to believe that estimated full year earnings for fiscal 2008 will be within our previously announced range of $2.45 – $2.60 per diluted share,” commented Christopher J. Munyan, CSS’ President and CEO.  “The recent approval by our Board of Directors of the systems integration plan is an important step toward standardizing best business practices across our businesses,” continued Mr. Munyan.

CSS is a consumer products company primarily engaged in the design and sale of seasonal and all occasion products, principally to mass market retailers.  These products include gift wrap, gift bags, gift boxes, boxed greeting cards, gift tags, decorative tissue paper, decorations, classroom exchange Valentines, decorative ribbons and bows, Halloween masks, costumes, make-ups and novelties, Easter egg dyes and novelties, and craft and educational products.

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 and expected future benefits and costs associated with the project relating to the standardization of the Company’s ERP systems.  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 costs, including labor-related and energy costs and costs relating to the imposition or retrospective application of duties on imported products, currency risks and other risks associated with international markets, risks associated with the combination of the operations of the Company’s Cleo and Berwick Offray subsidiaries, including the risk that the restructuring related savings may not meet the expected amounts previously reported, risks associated with the Company’s ERP systems standardization project, including the risk that the cost of the project will exceed expectations, the risk that the expected benefits of the project will not be realized and the risk that implementation of the project will interfere with and adversely affect the Company’s operations and financial performance, risks associated with the expiration on December 31, 2007 of the collective bargaining agreement between the Company’s Cleo subsidiary and the labor union representing certain production and maintenance employees employed at Cleo’s Memphis, Tennessee facility, including the risk that a new collective bargaining agreement may not be reached prior to the expiration of the current collective bargaining agreement, 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, 2007 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 and six months ended September 30, 2007 and 2006 and condensed consolidated balance sheets as of September 30, 2007, March 31, 2007 and September 30, 2006 follow:

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

(In thousands, except per share amounts) Three Months Ended September 30, Six Months Ended September 30, 2007 2006 2007 2006 SALES $172,822 $173,830 $219,684 $221,363 COSTS AND EXPENSES Cost of sales 126,683 129,003 160,202 163,066 Selling, general and administrative expenses 25,158 25,289 45,841 47,493 Interest expense (income), net 284 1,083 (90) 1,217 Other income (159 ) (66 ) (401 ) (228 ) 151,966 155,309 205,552 211,548 INCOME BEFORE INCOME TAXES 20,916 18,521 14,132 9,815 INCOME TAX EXPENSE 7,381 6,818 5,024 3,619 NET INCOME $ 13,535 $ 11,703 $ 9,108 $ 6,196 NET INCOME PER COMMON SHARE Basic $1.25 $1.11 $.84 $.59 Diluted $1.22 $1.08 $.82 $.57 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 10,857 10,559 10,869 10,528 Diluted 11,129 10,838 11,161 10,831 CASH DIVIDENDS PER SHARE OF COMMON STOCK $.14 $.12 $.28 $.24 CSS INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) September 30, 2007 March 31, 2007 September 30, 2006 (Unaudited) (Audited) (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 6,004 $100,091 $ 11,182 Accounts receivable, net 147,482 37,169 140,450 Inventories 140,014 82,138 167,699 Deferred income taxes 8,130 8,645 7,328 Assets held for sale 2,564 2,564 1,599 Other current assets 14,103 13,665 16,929 Total current assets 318,297 244,272 345,187 PROPERTY, PLANT AND EQUIPMENT, NET 54,753 58,897 65,315 OTHER ASSETS Goodwill 30,952      30,952      30,952 Intangible assets, net 4,298 4,328 4,375 Other 3,685 4,621 3,873 Total other assets 38,935 39,901 39,200 Total assets $411,985 $343,070 $449,702 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Notes payable $ 20,100 $ - $ 73,510 Current portion of long-term debt 10,210 10,195 10,195 Accrued customer programs 11,749 10,290 11,992 Other current liabilities 76,304 35,478 75,219 Total current liabilities 118,363 55,963 170,916 LONG-TERM DEBT, NET OF CURRENT PORTION 20,276 20,392 30,490 LONG-TERM OBLIGATIONS 6,308 3,221 3,211 DEFERRED INCOME TAXES 1,147 2,384 5,298 STOCKHOLDERS' EQUITY 265,891 261,110 239,787 Total liabilities and stockholders equity $411,985 $343,070 $449,702