RPG Investment Holdings, LLC and Monitor Clipper Partners Comment on Actions by American Greeting Company to Acquire Recycled Paper Greetings

Business Wire, Jan 2, 2009

CAMBRIDGE, Mass. and CHICAGO -- RPG Investment Holdings, LLC ("RPGI") and funds affiliated with Monitor Clipper Partners, LLC ("MCP"), today issued a statement strongly condemning American Greeting Corporation's (NYSE: AM) ("AG") actions leading to its planned acquisition of Recycled Paper Greetings, Inc. ("RPG"), an RPGI company in which MCP is a controlling investor. On December 30, 2008 AG announced a plan to acquire RPG through a "pre-packaged" Chapter 11 filing. AG has engaged in actions that RPGI and MCP believe are both unlawful and competitively damaging to the Chicago-based greeting card company.

"We strongly oppose the actions taken by American Greetings leading to the filing today of the bankruptcy," said Travis Metz, an RPGI director and partner of MCP. "We believe American Greetings has been engaged in a series of actions that reflect its own inability to compete effectively in the attractive humor segment of the greetings card market. Through its unlawful actions, we believe American Greetings is attempting to eliminate Recycled Paper Greetings as a competitor, in an effort to gain more widespread traction in the lucrative market segment in which Recycled Paper Greetings excels."

RPGI has taken several actions to combat AG's unlawful activities, including pursuing litigation in the US District Court in Chicago which is ongoing. This litigation revolves around AG's unlawful purchase of a majority interest in RPG's senior debt, in direct violation of a contractual obligation not to do so. Had AG not breached this contract, RPGI believes that it would have been successful in its efforts to allow RPG to remain independent and to allow the creditors, shareholders, employees, artists and customers of RPG to each have achieved a better outcome than the one currently contemplated in the bankruptcy proceedings.

"MCP and RPGI are together committed to ensuring that Recycled Paper Greeting's creditors, shareholders, employees, artists and customers experience the best possible outcome in these challenging circumstances," continued Metz. "We will continue to take actions and seek remedies to the maximum extent possible to offset the harm to competition and the unlawful actions of American Greetings. To this end, we intend to explore every possibility available to us."