25.06.09

Clinton Cards PLC

('Clintons')

Clinton Cards announces the purchase of

196 Birthdays stores

The Board of Clintons is pleased to announce that it has bought a total of 196 of the Birthdays Ltd ('Birthdays') stores from Birthdays, acting by its administrators, Zolfo Cooper. £3.25m of the £3.5m consideration will be discharged by way of a reduction in the amount owed by Birthdays to Clintons.

The 196  Birthdays  stores that Clintons has  purchased  include 29  Birthdays stores which operate under Clintons leases.

Over the 12 months to 3 August 2008 the 196 stores had sales of £74m and made a contribution of £2.7m; they had a gross asset value of approximately £26m at 3 August 2008. The purchase of the Birthdays stores is expected to be accretive to earnings per share.

The stores will continue to be operated under the Birthdays brand, which Clintons has also acquired and will be managed from the Clintons Head Office in Loughton, Essex. 

Separately, the Company's lenders whose consent is required for the transaction have the right to be issued with warrants to acquire two percent of the Company's current issued share capital in aggregate. These warrants will be exercisable, at the average market price for the five business days following this announcement, after one year from the date of issue and for up to a further nine years.

Clinton Cards Chairman, Don Lewin commented: 'We are very pleased to be able to report the successful purchase of a large proportion of the Birthdays stores thereby ensuring employment for 1,450 people.'

-ENDS-

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