Palo Alto, CA – January 31, 2008 – PhotoWorks, Inc., a leading online photo sharing and personal publishing company allowing consumers to use their digital images to create quality photo-personalized products, has announced its acquisition by a wholly owned subsidiary of American Greetings Corporation, one of the world’s largest manufacturers of social expression products, for approximately $26.5 million. American Greetings will acquire all outstanding common PhotoWorks shares with a cash tender offer at $0.595 per share. The tender offer will be followed by a merger in which the holders of the outstanding common shares of PhotoWorks not purchased will receive the same price per share, in cash, without interest.
PhotoWorks offers consumers new, creative, and refreshing ways to connect and express themselves privately with friends and family, and publicly within communities of similar interest.
American Greetings’ previous Webshots acquisition gave them a strong entrance into the online photo sharing market, large amounts of unique visitors, and a scalable platform. With PhotoWorks, American Greetings enables customers to create unique, high-quality physical products with their own photos supported by a strong, integrated supply chain platform. This acquisition further positions American Greetings to provide a full social expression photo solution to their consumers.
“The acquisition of PhotoWorks positions us for a comprehensive photo strategy, bringing together both digital and physical products. We are taking advantage of the opportunity to establish a leadership position in this growing channel of the social expression industry…At this time, the transaction is expected to have a minimal impact to fiscal 2008 earnings.” – Zev Weiss, CEO, American Greetings Corp.
“PhotoWorks is thrilled to be a part of this important step forward for American Greetings. We are excited to build and provide a compelling online experience for consumers in cooperation with one of the world’s leading greeting card and social expression companies. I am confident that combining these companies’ content and relationships will result in a more appealing site with truly unique products for all of our consumers.” – Andy Wood, President and CEO, PhotoWorks Inc.
Woodside Capital Partners served as the exclusive financial advisor to PhotoWorks, Inc. in this transaction.
About PhotoWorks, Inc.
PhotoWorks, Inc. is an Internet-based personal publishing company and photography community. The company’s web-based services allow PC and Mac users to share and store their digital photos, host personalized My Share Web pages, sell one-of-a-kind products through My Storefront, join photo communities, and create hardbound photo books, customized greeting cards, calendars, prints and other photography-sourced products. Formerly known as Seattle Film Works, PhotoWorks has a 30-year national heritage of helping photographers share and preserve their memories with innovative and inspiring products and services. More information on the Company is available at http://www.photoworks.com.
About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world’s largest manufacturers of social expression products. Along with greeting cards, its product lines include gift wrap, party goods, stationery, calendars, ornaments, and electronic greetings. Located in Cleveland, Ohio, American Greetings generates annual revenue of approximately $1.7 billion. For more information on the Company, visit http://corporate.americangreetings.com.
About Woodside Capital Partners
Woodside Capital Partners is a global, independent investment bank that delivers world-class strategic and financial advice to emerging growth companies in the technology and life sciences sectors. With a strong track record in M&A, strategic partnerships and private placements, Woodside Capital Partners has been providing worldwide investment banking services since 2001, with leading domain experience in software, Internet services, electronic communications and materials, and healthcare. Woodside Capital Partners is headquartered in Silicon Valley, with an office in London. Securities offered through Woodside Capital Securities LLC, member FINRA/SIPC. For more information, please visit www.woodsidecap.com.