----

----

|        |  |                                                                                                                                      |
|--------|--|--------------------------------------------------------------------------------------------------------------------------------------|
| þ |  | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE                ACT OF                1934 |

| o |  | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|--|---------------------------------------------------------------------------------------------------------------------------------------|

|                                                                 |  |                                                        |
|-----------------------------------------------------------------|--|--------------------------------------------------------|
| DELAWARE                                                        |  | 20-4833998                                             |
| DELAWARE                                                        |  | 20-1854833                                             |
| DELAWARE                                                        |  | 13-4126506                                             |
| (State                or other jurisdiction of incorporation or |  | (I.R.S.                Employer Identification Number) |
| organization)                                                   |  |                                                        |

----

FOR      THE QUARTERLY PERIOD ENDED NOVEMBER 24, 2007

|                                                                                                                                                                                                                                       | PAGE   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART                  I.                  FINANCIAL INFORMATION                                                                                                                                                                            |   |
| Item 1.                  Condensed                  Consolidated Financial Statements and Notes                                                                                                                                       |   |
| Unaudited                  Condensed Consolidated                  Balance Sheets — As of November 24, 2007 and August 25,                  2007                                                                      | 3      |
| Unaudited                  Condensed Consolidated                  Statements of Operations — For the Three Months Ended November 24,                  2007 and Three Months Ended November 25, 2006                       | 6      |
| Unaudited                  Condensed Consolidated                  Statements of Cash Flows — For the Three Months Ended                  November 24, 2007 and Three Months Ended November 25,                  2006 | 9      |
| Notes                  to Condensed Consolidated                  Financial Statements (unaudited)                                                                                                                                         | 12     |
| Item 2.                  Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                                                                | 21     |
| Item 3.                  Quantitative and                  Qualitative Disclosures About Market Risk                                                                                                                                  | 28     |
| Item 4.                  Controls and                  Procedures                                                                                                                                                                     | 28     |
|                                                                                                                                                                                                                                       |   |
| PART                  II. OTHER                  INFORMATION                                                                                                                                                                               |   |
| Item 1.                  Legal                  Proceedings                                                                                                                                                                           | 29     |
| Item 6.                  Exhibits                                                                                                                                                                                                     | 29     |
| SIGNATURES                                                                                                                                                                                                                                 | 30     |
|  Certification                  of CEO                  Pursuant to Section 302                                                                                                                                                       |   |
|  Certification                  of CFO                  Pursuant to Section 302                                                                                                                                                       |   |
|  Certification                  of CEO                  Pursuant to Section 906                                                                                                                                                       |   |
|  Certification                  of CFO                  Pursuant to Section 906                                                                                                                                                       |   |

----

Condensed      Consolidated Balance Sheets

|                                                                                                                                              |                                                                                                                                                    | Parent                  Holdings                    |                                                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                              |                                                                                                                                                    | November                  24,                  2007 |                                                                                                                              | August                  25,                  2007 |   |
|                                                                                                                                              | (Dollars                  in                  thousands)                                                                                                |
| ASSETS                                                                                                                                            |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Cash                  and cash                  equivalents                                                                                       |                                                                                                                                                    | $                                                   |                 10,231                            |   | $ |                   1,454 |   |
| Accounts                  receivable, net of                  allowance for doubtful accounts of $2,201 and $1,875,                  respectively |                 40,984                                                  |                                                |                                                                                                                              |                 43,039 |   |
| Inventories,                  net                                                                                                                 |                                                                                                                                                    |                                                |                 28,535                            |   |   |                 31,158 |   |
| Deferred                  tax                  asset                                                                                              |                                                                                                                                                    |                                                |                  9,594                       |   |   |                   3,731 |   |
| Prepaid                  expenses and other current                  assets, net                                                                  |                                                                                                                                                    |                                                |                 19,848                            |   |   |                 18,317 |   |
| Total                  current                  assets                                                                                            |                                                                                                                                                    |                                                |              109,192                                             |   |   |                 97,699 |   |
|                                                                                                                                              |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Property,                  plant and equipment,                  net                                                                              |                                                                                                                                                    |                                                |                 69,702                            |   |   |                 70,653 |   |
| Goodwill                                                                                                                                          |                                                                                                                                                    |                                                |               171,073                                       |   |   |               173,277 |   |
| Other                  intangible assets,                  net                                                                                    |                                                                                                                                                    |                                                |               105,033                                       |   |   |               107,855 |   |
| Other                  assets,                  net                                                                                               |                                                                                                                                                    |                                                |                 22,958                            |   |   |                 26,582 |   |
| Total                  assets                                                                                                                     |                                                                                                                                                    | $                                                   |               477,958                                       |   | $ |               476,066 |   |
| LIABILITIES                  AND STOCKHOLDERS’                  DEFICIT                                                                     |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Book                  overdraft                                                                                                                   |                                                                                                                                                    | $                                                   |                      558 |   | $ |                   5,082 |   |
| Accounts                  payable                                                                                                                 |                                                                                                                                                    |                                                |                   9,541                 |   |   |                 10,590 |   |
| Customer                  deposits                                                                                                                |                                                                                                                                                    |                                                |                 25,047                            |   |   |                 11,771 |   |
| Accrued                  expenses                                                                                                                 |                                                                                                                                                    |                                                |                 21,494                            |   |   |                 20,361 |   |
| Deferred                  revenue                                                                                                                 |                                                                                                                                                    |                                                |                   9,477                 |   |   |                   4,460 |   |
| Accrued                  interest                                                                                                                 |                                                                                                                                                    |                                                |                   2,239                 |   |   |                   5,550 |   |
| Current                  portion of long-term                  debt                                                                               |                                                                                                                                                    |                                                |                   1,134                 |   |   |                      900 |   |
| Total                  current                  liabilities                                                                                       |                                                                                                                                                    |                                                |                 69,490                            |   |   |                 58,714 |   |
|                                                                                                                                              |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Long-term                  debt, net of current                  portion                                                                          |                                                                                                                                                    |                                                |               547,721                                       |   |   |               537,680 |   |
| Mandatory                  redeemable preferred                  stock                                                                            |                   7,500                                       |                                                |                                                                                                                              |                   7,500 |   |
| Deferred                  tax                  liabilities                                                                                        |                                                                                                                                                    |                                                |                   8,221                 |   |   |                   9,736 |   |
| Other                  long-term                  liabilities                                                                                     |                                                                                                                                                    |                                                |                   7,399                 |   |   |                   6,619 |   |
| Total                  liabilities                                                                                                                |                                                                                                                                                    |                                                |               640,331                                       |   |   |               620,249 |   |
|                                                                                                                                              |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Commitments                  and                  contingencies                                                                                   |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
|                                                                                                                                              |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Stockholders’                  deficit:                                                                                                     |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Common                  stock                                                                                                                     |                          5 |                                                |                                                                                                                              |                          5 |   |
| Additional                  paid-in                  capital                                                                                      |                                                                                                                                                    |                                                |              (124,045                                            | )  |   |              (124,045 | )  |
| Accumulated                  deficit                                                                                                              |                                                                                                                                                    |                                                |                (41,414                                 | )  |   |                (23,297 | )  |
| Accumulated                  other comprehensive                  income                                                                          |                                                                                                                                                    |                                                |                   3,081                 |   |   |                   3,154 |   |
| Total                  stockholders’                  deficit                                                                               |                                                                                                                                                    |                                                |              (162,373                                            | )  |   |              (144,183 | )  |
|                                                                                                                                              |                                                                                                                                                    |                                                |                                                                                                                              |   |   |   |   |
| Total                  liabilities and                  stockholders’ deficit                                                               |                                                                                                                                                    | $                                                   |               477,958                                       |   | $ |               476,066 |   |

----

|                                                                                                                                              | Intermediate                  Holdings                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                              | November                  24,                  2007                                                                                                                       |   | August                  25,                  2007 |   |
|                                                                                                                                              | (Dollars                  in                  thousands)                                                                                                                  |
| ASSETS                                                                                                                                            |                                                                                                                                                                      |   |   |   |   |   |
| Cash                  and cash                  equivalents                                                                                       | $                                                                                                                                                                         |                      9,941 |   | $ |                      1,168 |   |
| Accounts                  receivable, net of                  allowance for doubtful accounts of $2,201 and $1,875,                  respectively |                    40,984                                                  |   |   |                    43,039 |   |
| Inventories,                  net                                                                                                                 |                                                                                                                                                                      |                    28,535 |   |   |                    31,158 |   |
| Deferred                  tax                  asset                                                                                              |                                                                                                                                                                      |                      9,594 |   |   |                      3,731 |   |
| Prepaid                  expenses and other current                  assets, net                                                                  |                                                                                                                                                                      |                    19,848 |   |   |                    18,317 |   |
| Total                  current                  assets                                                                                            |                                                                                                                                                                      |                  108,902 |   |   |                    97,413 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Property,                  plant and equipment,                  net                                                                              |                                                                                                                                                                      |                    69,702 |   |   |                    70,653 |   |
| Goodwill                                                                                                                                          |                                                                                                                                                                      |                  171,073 |   |   |                  173,277 |   |
| Other                  intangible assets,                  net                                                                                    |                                                                                                                                                                      |                  105,033 |   |   |                  107,855 |   |
| Other                  assets,                  net                                                                                               |                                                                                                                                                                      |                    15,686 |   |   |                    18,931 |   |
| Total                  assets                                                                                                                     | $                                                                                                                                                                         |                470,396 |   | $ |                468,129 |   |
| LIABILITIES                  AND STOCKHOLDERS’                  EQUITY                                                                      |                                                                                                                                                                      |   |   |   |   |   |
| Book                  overdraft                                                                                                                   | $                                                                                                                                                                         |                         558 |   | $ |                      5,082 |   |
| Accounts                  payable                                                                                                                 |                                                                                                                                                                      |                      9,541 |   |   |                    10,590 |   |
| Customer                  deposits                                                                                                                |                                                                                                                                                                      |                    25,047 |   |   |                    11,771 |   |
| Accrued                  expenses                                                                                                                 |                                                                                                                                                                      |                   21,432 |   |   |                    20,299 |   |
| Deferred                  revenue                                                                                                                 |                                                                                                                                                                      |                      9,477 |   |   |                      4,460 |   |
| Accrued                  interest                                                                                                                 |                                                                                                                                                                      |                      2,239 |   |   |                      5,550 |   |
| Current                  portion of long-term                  debt                                                                               |                                                                                                                                                                      |                      1,134 |   |   |                         900 |   |
| Total                  current                  liabilities                                                                                       |                                                                                                                                                                      |                    69,428 |   |   |                    58,652 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Long-term                  debt, net of current                  portion                                                                          |                                                                                                                                                                      |                  365,489 |   |   |                  361,836 |   |
| Deferred                  tax                  liabilities                                                                                        |                                                                                                                                                                      |                    18,179 |   |   |                    19,731 |   |
| Other                  long-term                  liabilities                                                                                     |                                                                                                                                                                      |                      3,117 |   |   |                      3,034 |   |
| Total                  liabilities                                                                                                                |                                                                                                                                                                      |                 456,213 |   |   |                  443,253 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Commitments                  and                  contingencies                                                                                   |                                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Stockholders’                  equity:                                                                                                      |                                                                                                                                                                      |   |   |   |   |   |
| Common                  stock                                                                                                                     |                             - |   |   |                             - |   |
| Additional                  paid-in                  capital                                                                                      |                                                                                                                                                                      |                    24,144 |   |   |                    24,144 |   |
| Accumulated                  deficit                                                                                                              |                                                                                                                                                                      |                  (13,042 | )  |   |                    (2,422 | )  |
| Accumulated                  other comprehensive                  income                                                                          |                                                                                                                                                                      |                      3,081 |   |   |                      3,154 |   |
| Total                  stockholders’                  equity                                                                                |                                                                                                                                                                      |                    14,183 |   |   |                    24,876 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Total                  liabilities and                  stockholders’ equity                                                                | $                                                                                                                                                                         |                470,396 |   | $ |                468,129 |   |

----

|                                                                                                                                              | AAC                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                              | November                  24,                  2007                                                                                                                       | August                  25,                  2007 |   |
|                                                                                                                                              | (Dollars                  in                  thousands)                                                                                                                  |
| ASSETS                                                                                                                                            |                                                                                                                                                                      |   |   |   |   |   |
| Cash                  and cash                  equivalents                                                                                       | $                                                                                                                                                                         |                      9,386 |   | $ |                         620 |   |
| Accounts                  receivable, net of                  allowance for doubtful accounts of $2,201 and $1,875,                  respectively |                    40,984                                                  |   |   |                    43,039 |   |
| Inventories,                  net                                                                                                                 |                                                                                                                                                                      |                    28,535 |   |   |                    31,158 |   |
| Deferred                  tax                  asset                                                                                              |                                                                                                                                                                      |                      9,594 |   |   |                      3,731 |   |
| Prepaid                  expenses and other current                  assets, net                                                                  |                                                                                                                                                                      |                    19,848 |   |   |                    18,317 |   |
| Total                  current                  assets                                                                                            |                                                                                                                                                                      |                  108,347 |   |   |                    96,865 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Property,                  plant and equipment,                  net                                                                              |                                                                                                                                                                      |                    69,702 |   |   |                    70,653 |   |
| Goodwill                                                                                                                                          |                                                                                                                                                                      |                  171,073 |   |   |                  173,277 |   |
| Other                  intangible assets,                  net                                                                                    |                                                                                                                                                                      |                  105,033 |   |   |                  107,855 |   |
| Other                  assets,                  net                                                                                               |                                                                                                                                                                      |                    13,535 |   |   |                    16,669 |   |
| Total                  assets                                                                                                                     | $                                                                                                                                                                         |                467,690 |   | $ |                465,319 |   |
| LIABILITIES                  AND STOCKHOLDERS’                  EQUITY                                                                      |                                                                                                                                                                      |   |   |   |   |   |
| Book                  overdraft                                                                                                                   | $                                                                                                                                                                         |                         558 |   | $ |                      5,082 |   |
| Accounts                  payable                                                                                                                 |                                                                                                                                                                      |                      9,541 |   |   |                    10,590 |   |
| Customer                  deposits                                                                                                                |                                                                                                                                                                      |                    25,047 |   |   |                    11,771 |   |
| Accrued                  expenses                                                                                                                 |                                                                                                                                                                      |                    21,417 |   |   |                    20,284 |   |
| Deferred                  revenue                                                                                                                 |                                                                                                                                                                      |                      9,477 |   |   |                      4,460 |   |
| Accrued                  interest                                                                                                                 |                                                                                                                                                                      |                      2,239 |   |   |                      5,550 |   |
| Current                  portion of long-term                  debt                                                                               |                                                                                                                                                                      |                      1,134 |   |   |                         900 |   |
| Total                  current                  liabilities                                                                                       |                                                                                                                                                                      |                    69,413 |   |   |                    58,637 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Long-term                  debt, net of current                  portion                                                                          |                                                                                                                                                                      |                  244,673 |   |   |                  243,982 |   |
| Deferred                  tax                  liabilities                                                                                        |                                                                                                                                                                      |                    30,589 |   |   |                    30,639 |   |
| Other                  long-term                  liabilities                                                                                     |                                                                                                                                                                      |                      3,089 |   |   |                      3,006 |   |
| Total                  liabilities                                                                                                                |                                                                                                                                                                      |                  347,764 |   |   |                  336,264 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Commitments                  and                  contingencies                                                                                   |                                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Stockholders’                  equity:                                                                                                      |                                                                                                                                                                      |   |   |   |   |   |
| Common                  stock                                                                                                                     |                             - |   |   |                              - |   |
| Additional                  paid-in                  capital                                                                                      |                                                                                                                                                                      |                  109,046 |   |   |                  109,046 |   |
| Accumulated                  earnings                                                                                                             |                                                                                                                                                                      |                      7,799 |   |   |                    16,855 |   |
| Accumulated                  other comprehensive                  income                                                                          |                                                                                                                                                                      |                      3,081 |   |   |                      3,154 |   |
| Total                  stockholders’                  equity                                                                                |                                                                                                                                                                      |                  119,926 |   |   |                  129,055 |   |
|                                                                                                                                              |                                                                                                                                                                      |   |   |   |   |   |
| Total                  liabilities and                  stockholders’ equity                                                                | $                                                                                                                                                                         |                467,690 |   | $ |                465,319 |   |

----

Condensed      Consolidated Statements of Operations

|                                                                           |   | Parent                  Holdings                             |                                                                                                               |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                                                                           |   | For                  the three months                  ended |                                                                                                               |
|                                                                           |   | November                  24,                  2007          |                                                                                                               | November                  25,                  2006 |   |
|                                                                           |   | (Dollars                  in                  thousands)     |                                                                                                               |
| Net                  sales                                                     |   | $                                                            |               51,940                         |   | $ |               52,048 |   |
| Cost                  of                  sales                                |   |                                                         |               25,317                         |   |   |               27,393 |   |
| Gross                  profit                                                  |   |                                                         |               26,623                         |   |   |               24,655 |   |
| Selling,                  general and                  administrative expenses |   |                                                         |               29,346                         |   |   |               27,640 |   |
| Operating                  loss                                                |   |                                                         |                (2,723                   | )  |   |                (2,985 | )  |
| Interest                  expense,                  net                        |   |                                                         |               15,631                         |   |   |               14,624 |   |
| Loss                  before income                  taxes                     |   |                                                         |              (18,354                              | )  |   |              (17,609 | )  |
| Benefit                  for income                  taxes                     |   |                                                         |                (4,555                   | )  |   |                (6,380 | )  |
| Loss                  from continuing                  operations              |   |                                                         |              (13,799                              | )  |   |              (11,229 | )  |
| Discontinued                  operations:                                      |   |                                                         |                                                                                                               |   |   |   |   |
|   Loss                  from                  discontinued segment   |   |                                                         |                (7,090                   | )  |   |                   (708 | )  |
|   Benefit                  for income                  taxes         |   |                                                         |                   (2,772 | )  |   |                   (279 | )  |
| Loss                  from discontinued                  operations            |   |                                                         |                (4,318                   | )  |   |                   (429 | )  |
| Net                  loss                                                      |   | $                                                            |              (18,117                              | )  | $ |              (11,658 | )  |

----

|                                                                           |   | Intermediate                  Holdings                       |                                                                                                               |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                                                                           |   | For                  the three months                  ended |                                                                                                               |
|                                                                           |   | November                  24,                  2007          |                                                                                                               | November                  25,                  2006 |   |
|                                                                           |   | (Dollars                  in                  thousands)     |                                                                                                               |
| Net                  sales                                                     |   | $                                                            |               51,940                         |   | $ |               52,048 |   |
| Cost                  of                  sales                                |   |                                                         |               25,317                         |   |   |               27,393 |   |
| Gross                  profit                                                  |   |                                                         |               26,623                         |   |   |               24,655 |   |
| Selling,                  general and                  administrative expenses |   |                                                         |               29,346                         |   |   |               27,640 |   |
| Operating                  loss                                                |   |                                                         |                (2,723                   | )  |   |                (2,985 | )  |
| Interest                  expense,                  net                        |   |                                                         |                 8,171              |   |   |                 8,717 |   |
| Loss                  before income                  taxes                     |   |                                                         |              (10,894                              | )  |   |              (11,702 | )  |
| Benefit                  for income                  taxes                     |   |                                                         |                (4,592                   | )  |   |                (4,819 | )  |
| Loss                  from continuing                  operations              |   |                                                         |                (6,302                   | )  |   |                (6,883 | )  |
| Discontinued                  operations:                                      |   |                                                         |                                                                                                               |   |   |   |   |
|   Loss                  from                  discontinued segment   |   |                                                         |                (7,090                   | )  |   |                   (708 | )  |
|   Benefit                  for income                  taxes         |   |                                                         |                   (2,772 | )  |   |                   (279 | )  |
| Loss                  from discontinued                  operations            |   |                                                         |                (4,318                   | )  |   |                   (429 | )  |
| Net                  loss                                                      |   | $                                                            |              (10,620                              | )  | $ |                (7,312 | )  |

----

|                                                                           |   | AAC                                                          |                                                                                                               |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                                                                           |   | For                  the three months                  ended |                                                                                                               |
|                                                                           |   | November                  24,                  2007          |                                                                                                               | November                  25,                  2006 |   |
|                                                                           |   | (Dollars                  in                  thousands)     |                                                                                                               |
| Net                  sales                                                     |   | $                                                            |               51,940                         |   | $ |               52,048 |   |
| Cost                  of                  sales                                |   |                                                         |               25,317                         |   |   |               27,393 |   |
| Gross                  profit                                                  |   |                                                         |               26,623                         |   |   |               24,655 |   |
| Selling,                  general and                  administrative expenses |   |                                                         |               29,346                         |   |   |               27,640 |   |
| Operating                  loss                                                |   |                                                         |                (2,723                   | )  |   |                (2,985 | )  |
| Interest                  expense,                  net                        |   |                                                         |                 5,105              |   |   |                 5,921 |   |
| Loss                  before income                  taxes                     |   |                                                         |                (7,828                   | )  |   |                (8,906 | )  |
| Benefit                  for income                  taxes                     |   |                                                         |                (3,090                   | )  |   |                (3,509 | )  |
| Loss                  from continuing                  operations              |   |                                                         |                (4,738                   | )  |   |                (5,397 | )  |
| Discontinued                  operations:                                      |   |                                                         |                                                                                                               |   |   |   |   |
|   Loss                  from                  discontinued segment   |   |                                                         |                (7,090                   | )  |   |                   (708 | )  |
|   Benefit                  for income                  taxes         |   |                                                         |                   (2,772 | )  |   |                   (279 | )  |
| Loss                  from discontinued                  operations            |   |                                                         |                (4,318                   | )  |   |                   (429 | )  |
| Net                  loss                                                      |   | $                                                            |              (9,056                               | )  | $ |                (5,826 | )  |

----

Condensed      Consolidated Statements of Cash Flows

|                                                                                                                                  |   | Parent                  Holdings                                                                                                           |                                                                                                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                  |   | For                  the three months                  ended                                                                               |                                                                                                                                                                                             |
|                                                                                                                                  |   |                                                                                                                                       | November                  24,                  2007                                                                                                                                              |   |   | November                  25,                  2006 |   |
|                                                                                                                                  |   |                                                                                                                                       | (Dollars                  in                  thousands)                                                                                                                                         |   |
| Cash                  flows from operating                  activities:                                                               |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Net                  loss                                                                                                             |   | $                                                                                                                                          |                     (18,117                                                                  | ) | $ |                    (11,658 | )  |
| Adjustments                  to reconcile net loss                  to net cash provided by operating activities:                     |   |                                                                                                                                       |                                                                                                                                                                                             |   |
| Write-offs                  related to discontinued                  segment                                                          |   |                                                                                                                                       |                        5,542                                                  |   |   |                                - |   |
| Gain                on sales of property, plant and equipment             |   |                                                                                                                                       | (21                                                                                                                                                                                              | )  |   | -  |   |
| Depreciation                  and                  amortization                                                                       |   |                                                                                                                                       |                        5,276                                                  |   |   |                        6,490 |   |
| Deferred                  income                  taxes                                                                               |   |                                                                                                                                       |                                (7,328 | )  |   |                      (6,957 | )  |
| Amortization                  of deferred financing                  fees                                                             |   |                                                                                                                                       |                           873                                  |   |   |                           871 |   |
| Accretion                  of interest on 10.25%                  senior discount notes                                               |   |                                                                                                                                       |                        2,962                                                  |   |   |                        2,692 |   |
| Accretion                  of Senior PIK                  Notes                                                                       |   |                                                                                                                                       |                        6,388                                                  |   |   |                        4,904 |   |
| Allowance for                  doubtful                  accounts                                                                |   |                                                                                                                                       |                           326                                  |   |   |                           233 |   |
| Changes                  in assets and                  liabilities:                                                                  |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Accounts                  receivable                                                                                                  |   |                                                                                                                                       |                        1,729                                                  |   |   |                           914 |   |
| Inventories,                  net                                                                                                     |   |                                                                                                                                       |                        3,150                                                  |   |   |                         (449 | )  |
| Prepaid                  expenses and other current                  assets, net                                                      |   |                                                                                                                                       |                       (2,652                                                       | )  |   |                      (6,131 | )  |
| Other                  assets,                  net                                                                                   |   |                                                                                                                                       |                        1,666                                                  |   |   |                           565 |   |
| Customer                  deposits                                                                                                    |   |                                                                                                                                       |                      13,276                                                             |   |   |                      16,478 |   |
| Deferred                  revenue                                                                                                     |   |                                                                                                                                       |                        5,017                                                  |   |   |                        3,992 |   |
| Accounts                  payable, accrued                  expenses, and other long-term liabilities                                 |   |                       (2,647 | )                                                                                                                                                                                           |   |                      (5,496 | )  |
| Net                  cash provided by operating                  activities                                                           |   |                                                                                                                                       |                      15,440                                                             |   |   |                        6,448 |   |
| Cash                  flows from investing                  activities:                                                               |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Purchases                  of property, plant and                  equipment                                                          |   |                                                                                                                                       |                       (3,116                                                       | )  |   |                      (2,308 | )  |
| Proceeds                from sales of property, plant and equipment                                                                   |   |                                                                                                                                       | 52                                                                                                                                                                                          |   |   | -  |   |
| Net                  cash used in investing                  activities                                                               |   |                                                                                                                                       |                       (3,064                                                       | )  |   |                      (2,308 | )  |
| Cash                  flows from financing                  activities:                                                               |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Payments                  on credit facility                  revolver                                                                |   |                                                                                                                                       |                     (12,950                                                                  | )  |   |                    (18,050 | )  |
| Proceeds                  from credit facility                  revolver                                                              |   |                                                                                                                                       |                      14,100                                                             |   |   |                      14,850 |   |
| Payments                  on term                  loan                                                                               |   |                                                                                                                                       |                          (225                                       | )  |   |                         (272 | )  |
| Deferred                  financing                  fees                                                                             |   |                                                                                                                                       |                                -      |   |   |                         (179 | )  |
| Change                  in book                  overdraft                                                                            |   |                                                                                                                                       |                       (4,524                                                       | )  |   |                      (1,606 | )  |
| Net                  cash used in financing                  activities                                                               |   |                                                                                                                                       |                       (3,599                                                       | )  |   |                      (5,257 | )  |
| Net                  increase (decrease) in                  cash and cash equivalents                                           |   |                                                                                                                                       |                        8,777                                                  |   |   |                      (1,117 | )  |
| Cash                  and cash equivalents,                  beginning of period                                                      |   |                                                                                                                                       |                        1,454                                                  |   |   |                        3,404 |   |
| Cash                  and cash equivalents, end of                  period                                                            |   | $                                                                                                                                          |                      10,231                                                             |   | $ |                        2,287 |   |
| Supplemental                  disclosure                                                                                              |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Cash                  paid during the period                  for:                                                                    |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Interest                                                                                                                              |   | $                                                                                                                                          |                        8,099                                                  |   | $ |                        7,640 |   |
| Income                  taxes                                                                                                         |   | $                                                                                                                                          |  465                                                                                                                                                                                        |   | $ |                           102 |   |

----

|                                                                                                                                  |   | Intermediate                  Holdings                                                                                                     |                                                                                                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                  |   | For                  the three months                  ended                                                                               |                                                                                                                                                                                             |
|                                                                                                                                  |   |                                                                                                                                       | November                  24,                  2007                                                                                                                                              |   |   | November                  25,                  2006 |   |
|                                                                                                                                  |   |                                                                                                                                       | (Dollars                  in                  thousands)                                                                                                                                         |   |
| Cash                  flows from operating                  activities:                                                               |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Net                  loss                                                                                                             |   | $                                                                                                                                          |                     (10,620                                                                  | )  | $ |                      (7,312 | )  |
| Adjustments                  to reconcile net loss                  to net cash provided by operating activities:                     |   |                                                                                                                                       |                                                                                                                                                                                             |   |
| Write-offs                    related to discontinued                    segment                                                      |   |                                                                                                                                       |                        5,542                                                  |   |   |                                - |   |
| Gain                on sales of property, plant and equipment             |   |                                                                                                                                       | (21                                                                                                                                                                                              | )  |   | -  |   |
| Depreciation                  and                  amortization                                                                       |   |                                                                                                                                       |                        5,276                                                  |   |   |                        6,490 |   |
| Deferred                  income                  taxes                                                                               |   |                                                                                                                                       |                                (7,365 | )  |   |                      (5,396 | )  |
| Amortization                  of deferred financing                  fees                                                             |   |                                                                                                                                       |                           494                                  |   |   |                           492 |   |
| Accretion                  of interest on 10.25%                  senior discount notes                                               |   |                                                                                                                                       |                        2,962                                                  |   |   |                        2,692 |   |
| Allowance for                  doubtful                  accounts                                                                |   |                                                                                                                                       |                           326                                  |   |   |                           233 |   |
| Changes                  in assets and                  liabilities:                                                                  |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Accounts                  receivable                                                                                                  |   |                                                                                                                                       |                        1,729                                                  |   |   |                           914 |   |
| Inventories,                  net                                                                                                     |   |                                                                                                                                       |                        3,150                                                  |   |   |                         (449 | )  |
| Prepaid                  expenses and other current                  assets, net                                                      |   |                                                                                                                                       |                       (2,652                                                       | )  |   |                      (6,131 | )  |
| Other                  assets,                  net                                                                                   |   |                                                                                                                                       |                        1,666                                                  |   |   |                           565 |   |
| Customer                  deposits                                                                                                    |   |                                                                                                                                       |                      13,276                                                             |   |   |                      16,478 |   |
| Deferred                  revenue                                                                                                     |   |                                                                                                                                       |                        5,017                                                  |   |   |                        3,992 |   |
| Accounts                  payable, accrued                  expenses, and other long-term liabilities                                 |   |                       (3,344 | )                                                                                                                                                                                           |   |                      (6,184 | )  |
| Net                  cash provided by operating                  activities                                                           |   |                                                                                                                                       |                      15,436                                                             |   |   |                        6,384 |   |
| Cash                  flows from investing                  activities:                                                               |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Purchases                  of property, plant and                  equipment                                                          |   |                                                                                                                                       |                       (3,116                                                       | )  |   |                      (2,308 | )  |
| Proceeds                from sales of property, plant and equipment                                                                   |   |                                                                                                                                       | 52                                                                                                                                                                                          |   |   | -  |   |
| Net                  cash used in investing                  activities                                                               |   |                                                                                                                                       |                       (3,064                                                       | )  |   |                      (2,308 | )  |
| Cash                  flows from financing                  activities:                                                               |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Payments                  on credit facility                  revolver                                                                |   |                                                                                                                                       |                     (12,950                                                                  | )  |   |                    (18,050 | )  |
| Proceeds                  from credit facility                  revolver                                                              |   |                                                                                                                                       |                      14,100                                                             |   |   |                      14,850 |   |
| Payments                  on term                  loan                                                                               |   |                                                                                                                                       |                          (225                                       | )  |   |                         (272 | )  |
| Deferred                  financing                  fees                                                                             |   |                                                                                                                                       |                                -      |   |   |                           (16 | )  |
| Change                  in book                  overdraft                                                                            |   |                                                                                                                                       |                       (4,524                                                       | )  |   |                      (1,606 | )  |
| Net                  cash used in financing                  activities                                                               |   |                                                                                                                                       |                       (3,599                                                       | )  |   |                      (5,094 | )  |
| Net                  increase (decrease) in                  cash and cash equivalents                                           |   |                                                                                                                                       |                        8,773                                                  |   |   |                      (1,018 | )  |
| Cash                  and cash equivalents,                  beginning of period                                                      |   |                                                                                                                                       |                        1,168                                                  |   |   |                        2,904 |   |
| Cash                  and cash equivalents, end of                  period                                                            |   | $                                                                                                                                          |                        9,941                                                  |   | $ |                        1,886 |   |
| Supplemental                  disclosure                                                                                              |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Cash                  paid during the period                  for:                                                                    |   |                                                                                                                                       |                                                                                                                                                                                             |   |   |   |   |
| Interest                                                                                                                              |   | $                                                                                                                                          |                        8,099                                                  |   | $ |                        7,640 |   |
| Income                  taxes                                                                                                         |   | $                                                                                                                                          |  465                                                                                                                                                                                        |   | $ |                           102 |   |

----

|                                                                                                                                 |                                                                                                                                 | AAC                                                          |                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 |                                                                                                                                 | For                  the three months                  ended |                                                                                                                                                                                  |
|                                                                                                                                 |                                                                                                                                 |                                                         | November                  24,                  2007                                                                                                                                   |   |   | November                  25,                  2006 |   |
|                                                                                                                                 |                                                                                                                                 |                                                         | (Dollars                  in                  thousands)                                                                                                                              |   |
| Cash                  flows from operating                  activities:                                                              |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |   |   |   |
| Net                  loss                                                                                                            |                                                                                                                                 | $                                                            |                    (9,056                                                              | )  | $ |                     (5,826 | )  |
| Adjustments                  to reconcile net                  income to net cash provided by operating                  activities: |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |
| Write-offs                    related to discontinued                    segment                                                     |                                                                                                                                 |                                                         |                        5,542                                       |   |   |                               - |   |
| Gain                on sales of property, plant and equipment                                                                        |                                                                                                                                 |                                                         | (21                                                                                                                                                                                   | ) |   | -  |   |
| Depreciation                  and                  amortization                                                                      |                                                                                                                                 |                                                         |                        5,276                                       |   |   |                       6,490 |   |
| Deferred                  income                  taxes                                                                              |                                                                                                                                 |                                                         |                              (5,863  | )  |   |                     (4,086 | )  |
| Amortization                  of deferred financing                  fees                                                            |                                                                                                                                 |                                                         |                           383                       |   |   |                          381 |   |
| Allowance                  for doubtful                  accounts                                                                    |                                                                                                                                 |                                                         |                           326                       |   |   |                          233 |   |
| Changes                  in assets and                  liabilities:                                                                 |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |   |   |   |
| Accounts                  receivable                                                                                                 |                                                                                                                                 |                                                         |                        1,729                                       |   |   |                          914 |   |
| Inventories,                  net                                                                                                    |                                                                                                                                 |                                                         |                        3,150                                       |   |   |                        (449 | )  |
| Prepaid                  expenses and other current                  assets, net                                                     |                                                                                                                                 |                                                         |                      (2,652                                                  | )  |   |                     (6,131 | )  |
| Other                  assets,                  net                                                                                  |                                                                                                                                 |                                                         |                        1,666                                       |   |   |                          565 |   |
| Customer                  deposits                                                                                                   |                                                                                                                                 |                                                         |                      13,276                                                  |   |   |                     16,478 |   |
| Deferred                  revenue                                                                                                    |                                                                                                                                 |                                                         |                        5,017                                       |   |   |                       3,992 |   |
| Accounts                  payable, accrued                  expenses, and other long-term liabilities                                |                      (3,344 | )                                                       |                                                                                                                                                                                  |                     (6,184 | )  |
| Net                  cash provided by operating                  activities                                                          |                                                                                                                                 |                                                         |                      15,429                                                  |   |   |                       6,377 |   |
| Cash                  flows from investing                  activities:                                                              |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |   |   |   |
| Purchases                  of property, plant and                  equipment                                                         |                                                                                                                                 |                                                         |                      (3,116                                                  | )  |   |                     (2,308 | )  |
| Proceeds                from sales of property, plant and equipment                                                                  |                                                                                                                                 |                                                         | 52                                                                                                                                                                               |   |   | -  |   |
| Net                  cash used in investing                  activities                                                              |                                                                                                                                 |                                                         |                      (3,064                                                  | )  |   |                     (2,308 | )  |
| Cash                  flows from financing                  activities:                                                              |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |   |   |   |
| Payments                  on credit facility                  revolver                                                               |                                                                                                                                 |                                                         |                    (12,950                                                             | )  |   |                   (18,050 | )  |
| Proceeds                  from credit facility                  revolver                                                             |                                                                                                                                 |                                                         |                      14,100                                                  |   |   |                     14,850 |   |
| Payments                  on term                  loan                                                                              |                                                                                                                                 |                                                         |                         (225                                  | )  |   |                        (272 | )  |
| Deferred                  financing                  fees                                                                            |                                                                                                                                 |                                                         |                               - |   |   |                          (16 | )  |
| Change                  in book                  overdraft                                                                           |                                                                                                                                 |                                                         |                      (4,524                                                  | )  |   |                     (1,606 | )  |
| Net                  cash used in financing                  activities                                                              |                                                                                                                                 |                                                         |                      (3,599                                                  | )  |   |                     (5,094 | )  |
| Net                  increase (decrease) in                  cash and cash equivalents                                          |                                                                                                                                 |                                                         |                        8,766                                       |   |   |                     (1,025 | )  |
| Cash                  and cash equivalents,                  beginning of period                                                     |                                                                                                                                 |                                                         |                           620                       |   |   |                       2,381 |   |
| Cash                  and cash equivalents, end of                  period                                                           |                                                                                                                                 | $                                                            |                        9,386                                       |   | $ |                       1,356 |   |
| Supplemental                  disclosure                                                                                             |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |   |   |   |
| Cash                  paid during the period                  for:                                                                   |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |   |   |   |
| Interest                                                                                                                             |                                                                                                                                 | $                                                            |                        8,099                                       |   | $ |                       7,640 |   |
| Income                  taxes                                                                                                        |                                                                                                                                 | $                                                            |  465                                                                                                                                                                             |   | $ |                          102 |   |
|                                                                                                                                 |                                                                                                                                 |                                                         |                                                                                                                                                                                  |   |   |   |   |

----

----

----

|                                                                                                                                                                          | For                  the three months                  ended                                              |                                                |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                                                                                                          |                                                                                                      | November                  24,                  2007 |   | November                  25,                  2006 |   |
| Parent                  Holdings                                                                                                                                              |                                                                                                      |                                                |   |   |   |   |   |
| Net                  loss                                                                                                                                                     |                                                                                                      | $                                                   |             (18,117 | )  | $ |             (11,658 | )  |
| Amortization                  of net actuarial gain                  and prior service costs - pension and postretirement plans, net                  of                  tax |                  (73 | )                                              |   |                         - |   |
| Total                  comprehensive                  loss                                                                                                                    |                                                                                                      | $                                                   |             (18,190 | )  | $ |             (11,658 | )  |
|                                                                                                                                                                          |                                                                                                      |                                                |   |   |   |   |   |
|                                                                                                                                                                          | For                  the three months                  ended                                              |                                                |
|                                                                                                                                                                          |                                                                                                      | November                  24,                  2007 |   | November                  25,                  2006 |   |
| Intermediate                  Holdings                                                                                                                                        |                                                                                                      |                                                |   |   |   |   |   |
| Net                  loss                                                                                                                                                     |                                                                                                      | $                                                   |             (10,620 | )  | $ |               (7,312 | )  |
| Amortization                  of net actuarial gain                  and prior service costs - pension and postretirement plans, net                  of                  tax |                  (73 | )                                              |   |                         - |   |
| Total                  comprehensive                  loss                                                                                                                    |                                                                                                      | $                                                   |             (10,693 | )  | $ |               (7,312 | )  |
|                                                                                                                                                                          |                                                                                                      |                                                |   |   |   |   |   |
|                                                                                                                                                                          | For                  the three months                  ended                                              |                                                |
|                                                                                                                                                                          |                                                                                                      | November                  24,                  2007 |   | November                  25,                  2006 |   |
| AAC                                                                                                                                                                           |                                                                                                      |                                                |   |   |   |   |   |
| Net                  loss                                                                                                                                                     |                                                                                                      | $                                                   |             (9,056 | )  | $ |               (5,826 | )  |
| Amortization                  of net actuarial gain                  and prior service costs - pension and postretirement plans, net                  of                  tax |                  (73 | )                                              |   |                         - |   |
| Total                  comprehensive                  loss                                                                                                                    |                                                                                                      | $                                                   |             (9,129 | )  | $ |               (5,826 | )  |

----

|                                                                | For                  the three months                  ended |                                                |
|---------------------------------------------------------------------|--------------------------------------------------------------|-----------------------------------------------------|
|                                                                |                                                         | November                  24,                  2007 |   | November                  25,                  2006 |   |
| Discontinued                  operations:                           |                                                         |                                                |   |   |   |   |   |
| Net                  sales                                          |                                                         | $                                                   |                 1,758 |   | $ |                    710 |   |
|                                                                |                                                         |                                                |   |   |   |   |   |
| Operating                  loss                                     |                                                         | $                                                   |               (7,090 | )  | $ |                  (708 | )  |
| Benefit                  for income                  taxes          |                                                         |                                                |                  (2,772 | )  |   |                  (279 | )  |
| Loss                  from discontinued                  operations |                                                         | $                                                   |               (4,318 | )  | $ |                  (429 | )  |

|                                                         | Contract                  Termination                  Costs | Employee                  Termination                  Costs                                                  | Total   |    |
|--------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------|---------|
|                                                         |                                                         |                                                                                                          |    |    |   |   |   |   |   |
| Balance,                  August 25,                  2007   |  $                                                      |                   - |    |  $ |                   - |   |  $ |                   - |   |
| Accrued                  costs                               |                                                         |                491                 |    |    |                246 |   |   |                737 |   |
| Payments                  made                               |                                                         |              (190                            | )  |    |                (98 | )  |   |              (288 | )  |
| Balance,                  November 24,                  2007 |  $                                                      |                301                 |    |  $ |                148 |   |  $ |                449 |   |

|                                              |   | November                  24,                  2007                                                                                                              |    |   | August                  25,                  2007                                                                                        |    |
|---------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                              |   |                                                                                                                                                             |    |   |                                                                                                                                     |    |
| Raw                  materials                    | $      |                        12,273                 |    | $      |                    19,357                 |    |
| Work                  in                  process |   |                          7,129      |    |   |                      4,853      |    |
| Finished                  goods                   |   |                          9,395      |    |   |                      7,941      |    |
| Less—Reserves                               |   |                           (262 | )  |   |                       (993 | )  |
|                                              | $      |                        28,535                 |    | $      |                    31,158                 |    |

----

|                                      |   |   | November                  24,                  2007                                                                                                                                   |   |   |   | August                  25,                  2007                                                                                               |   |
|-------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Class Rings                          |   | $      |                     67,092                                                        |   |   | $      |                      67,092            |   |
| Yearbooks                                 |   |   |                     65,241                                                        |   |   |   |                      65,241            |   |
| Graduation                  Products      |   |   |                     23,781                                                        |   |   |   |                      23,781            |   |
| Achievement                  Publications |   |   |                               - |   |   |   |                        2,193 |   |
| Other                                     |   |   |                     14,959                                                        |   |   |   |                      14,970            |   |
| Total                                     |   | $      |                   171,073                                                                   |   |   | $      |                    173,277                       |   |

|                                                                        |   | At                  November 24,                  2007 |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                        |   | Estimated                                              |   | Gross |   | Accumulated |   | Net |   |
|                                                                        |   | Useful                  Life                           |   | Asset |   | Amortization |   | Asset |   |
| Trademarks                                                                  |   | Indefinite                                             |   | $ |    37,173 |   |   |                      - |   |   |     37,173 |   |
| Patents                                                                     |   | 14 to 17 years                          |   |   |      7,317 |   |   |             (1,627 | )  |   |       5,690 |   |
| Customer                  lists and distribution                  contracts |   | 3                  to 12                  years        |   |   |    97,140 |   |   |           (34,970 | )  |   |     62,170 |   |
|                                                                        |   |                                                   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                       |   |                                                   |   | $ |  141,630 |   | $ |           (36,597 | )  | $ |   105,033 |   |
|                                                                        |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   | At                  August 25,                  2007   |   |
|                                                                        |   | Estimated                                              |   | Gross |   | Accumulated |   | Net |   |
|                                                                        |   | Useful                  Life                           |   | Asset |   | Amortization |   | Asset |   |
| Trademarks                                                                  |   | Indefinite                                             |   | $ |    37,433 |   | $ |                      - |   | $ |     37,433 |   |
| Patents                                                                     |   | 14 to 17 years                          |   |   |      7,317 |   |   |             (1,516 | )  |   |       5,801 |   |
| Customer                  lists and distribution                  contracts |   | 3                  to 12                  years        |   |   |  102,968 |   |   |           (38,347 | )  |   |     64,621 |   |
|                                                                        |   |                                                   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                       |   |                                                   |   | $ |  147,718 |   | $ |           (39,863 | )  | $ |   107,855 |   |

----

|                                                                                                                                                                         | November                    24,                    2007                               |                                                                                                        | August                    25,                    2007 |                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------------------------------------------|
| Parent                    Holdings                                                                                                                                           |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
| Senior                    PIK Notes due October 1,                    2012 (including $32,232 and $25,844 PIK interest,                    respectively)                     | $                                                                                     |              182,232                       |                                                  | $                                                                                     |              175,844 |   |
| 10.25%                    Senior discount notes due                    October 1, 2012 (net of unamortized discount of $10,684 and $13,646,                    respectively) |              120,816 |                                                                                                        |                                                  |              117,854 |   |
| 8.25%                    Senior subordinated notes                    due April 1, 2012                                                                                      |                                                                                  |              150,000                       |                                                  |                                                                                  |              150,000 |   |
| Senior                    secured credit                    facility:                                                                                                        |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
|    Revolving                    credit                    facility due 2010                                                                                   |                                                                                  |                  8,955 |                                                  |                                                                                  |                  7,805 |   |
|    Term                    loan due                    2011                                                                                                   |                                                                                  |                86,852            |                                                  |                                                                                  |                87,077 |   |
| Total                                                                                                                                                                        |                                                                                  |              548,855                       |                                                  |                                                                                  |              538,580 |   |
| Less                    current portion of long-term                    debt                                                                                                 |                                                                                  |                (1,134            | )                                                |                                                                                  |                   (900 | )  |
| Total                    long-term                    debt                                                                                                                   | $                                                                                     |              547,721                       |                                                  | $                                                                                     |              537,680 |   |
|                                                                                                                                                                         |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
|                                                                                                                                                                         | November                    24,                    2007                               |                                                                                                        | August                    25,                    2007 |                                                                                  |
| Intermediate                    Holdings                                                                                                                                     |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
| 10.25%                    Senior discount notes due                    October 1, 2012 (net of unamortized discount of $10,684 and $13,646,                    respectively) | $                                                                                     |              120,816                       |                                                  | $                                                                                     |              117,854 |   |
| 8.25%                    Senior subordinated notes                    due April 1, 2012                                                                                      |                                                                                  |              150,000                       |                                                  |                                                                                  |              150,000 |   |
| Senior                    secured credit                    facility:                                                                                                        |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
|    Revolving                    credit                    facility due 2010                                                                                   |                                                                                  |                  8,955 |                                                  |                                                                                  |                  7,805 |   |
|    Term                    loan due                    2011                                                                                                   |                                                                                  |                86,852            |                                                  |                                                                                  |                87,077 |   |
| Total                                                                                                                                                                        |                                                                                  |              366,623                       |                                                  |                                                                                  |              362,736 |   |
| Less                    current portion of long-term                    debt                                                                                                 |                                                                                  |                (1,134            | )                                                |                                                                                  |                   (900 | )  |
| Total                    long-term                    debt                                                                                                                   | $                                                                                     |              365,489                       |                                                  | $                                                                                     |              361,836 |   |
|                                                                                                                                                                         |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
|                                                                                                                                                                         | November                    24,                    2007                               |                                                                                                        | August                    25,                    2007 |                                                                                  |
| AAC                                                                                                                                                                          |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
| 8.25%                    Senior subordinated notes                    due April 1, 2012                                                                                      | $                                                                                     |              150,000                       |                                                  | $                                                                                     |              150,000 |   |
| Senior                    secured credit                    facility:                                                                                                        |                                                                                  |                                                                                                        |                                                  |                                                                                  |   |   |
|    Revolving                    credit                    facility due 2010                                                                                   |                                                                                  |                  8,955 |                                                  |                                                                                  |                  7,805 |   |
|    Term                    loan due                    2011                                                                                                   |                                                                                  |                86,852            |                                                  |                                                                                  |                87,077 |   |
| Total                                                                                                                                                                        |                                                                                  |              245,807                       |                                                  |                                                                                  |              244,882 |   |
| Less                    current portion of long-term                    debt                                                                                                 |                                                                                  |                (1,134            | )                                                |                                                                                  |                   (900 | )  |
| Total                    long-term                    debt                                                                                                                   | $                                                                                     |              244,673                       |                                                  | $                                                                                     |              243,982 |   |

----

----

|                                                                                              |   | For                  the three                  months ended |                                                                            |    | For                  the three                  months ended |   |
|---------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|---------------------------------------------------------------------------------|---------|--------------------------------------------------------------|--------|
|                                                                                              |   | November                  24,                  2007          |                                                                            |    | November                  25,                  2006          |   |
|                                                                                              |   | TPC                  Plan                                    |                                                                            |    | CBI                  Plan                                    |   |   | TPC                  Plan |   |   | CBI                  Plan |   |
| Service                  costs, benefits attributed                  to service during the period |   | $                                                            |            22            |    |                                                         | $      |              - |   |   | $ |            20 |   |   | $ |                                              - |   |
| Interest                  cost                                                                    |   |                                                         |          229                       |    |                                                         |   |            27 |   |   |   |          225 |   |   |   |            27 |   |
| Expected                  return on                  assets                                       |   |                                                         |        (292                                  | )  |                                                         |   |              - |   |   |   |        (247 | )  |   |   |                                            - |   |
| Amortization                  of unrecognized net                  gain                           |   |                                                         |            (9            | )  |                                                         |   |          (77 | )  |   |   |              - |   |   |   |          (88 | )  |
| Amortization                  of unrecognized net                  prior service costs            |   |                                                         |              - |    |                                                         |   |          (37 | )  |   |   |              - |   |   |   |          (37 | )  |
| Net                  periodic postretirement                  benefit income                      |   | $                                                            |          (50                       | )  |                                                         | $      |          (87 | )  |   | $ |            (2 | )  |   | $ |          (98 | )  |

|                                                 |          | November                  24,                  2007                                                           |    |                | November                  25,                  2006                                                                                                 |    |
|------------------------------------------------------|---------------|---------------------------------------------------------------------------------------------------------------|---------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                 |          | TPC                  Plan                                                                                     |    |                | CBI                  Plan                                                                                                                           |    |   | TPC                  Plan |   |   | CBI                  Plan |   |
| Net                  gain                            |  $  |                  (9      | )  |   $  |                         (77 | )  |   |  n/a |   |   |  n/a |   |
| Prior                  service                  cost |          |                   - |    |                |                         (37 | )  |   |  n/a |   |   |  n/a |   |
|                                                 |  $  |                  (9      | )  |   $  |                       (114            | )  |   |   |   |   |   |   |

----

|                                                                        |   |                                                  |      |   |                                                  |       |   |                                      |    |   |                                           |    |   |                                             |    |
|-----------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|--------|-------------------------------------------------------|------------|--------|-------------------------------------------|---------|--------|------------------------------------------------|---------|--------|--------------------------------------------------|---------|
|                                                                        | Class  |                                                  |      |   |                                                  | Graduation |   |                                      |    |   |                                           |    |   |
|                                                                        | Rings  |                                                  | Yearbooks |   | Products                                              |       | Other  |                                      | Total   |   |
| Three                  Months Ended                  November 24, 2007 |   |                                                  |      |   |                                                  |       |   |                                      |    |   |                                           |    |   |                                             |    |
| Net                  sales                                                  | $      |       32,661            |      | $      |         9,620 |       | $      |       3,464 |    | $      |       6,195      |    | $      |       51,940       |    |
| Segment                  operating income                  (loss)           |   |         2,760 |      |   |        (3,307      | )     |   |     (1,740            | )  |   |        (436 | )  | $      |        (2,723 | )  |
|                                                                        |   |                                                  |      |   |                                                  |       |   |                                      |    |   |                                           |    |   |                                             |    |
| Three                  Months Ended                  November 25, 2006 |   |                                                  |      |   |                                                  |       |   |                                      |    |   |                                           |    |   |                                             |    |
| Net                  sales                                                  | $      |       33,367            |      | $      |       10,561            |       | $      |       2,759 |    | $      |       5,361      |    | $      |       52,048       |    |
| Segment                  operating income                  (loss)           |   |         3,774 |      |   |        (3,881      | )     |   |     (2,333            | )  |   |        (545 | )  | $      |        (2,985 | )  |

|                                                      | Parent                  Holdings |
|-----------------------------------------------------------|----------------------------------|
|                                                      | Class                            |   |   |   |   | Graduation |   |   |   |   |   |   |   |
|                                                      | Rings                            |   | Yearbooks |   | Products |   | Other |   | Total |   |
| As                  of November 24,                  2007 |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                  assets                           | $                                |  212,360 |   | $ |  165,691 |   | $ |  59,238 |   | $ |  40,161 |   | $ | 477,450 |   |
|                                                      |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                  of August 25,                  2007   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                  assets                           | $                                |     203,637 |   | $ |     168,292 |   | $ |     57,796 |   | $ |     38,731 |   | $ |     468,456 |   |

|                                                  | Intermediate                Holdings |
|-------------------------------------------------------|--------------------------------------|
|                                                  | Class                                |   |   |   |   | Graduation |   |   |   |   |   |   |   |
|                                                  | Rings                                |   | Yearbooks |   | Products |   | Other |   | Total |   |
| As                of November 24,                2007 |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                assets                         | $                                    |  209,070 |   | $ |  162,978 |   | $ |  58,307 |   | $ |  39,533 |   | $ |  469,888 |   |
|                                                  |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of August 25,                2007   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                assets                         | $                                    |    200,330 |   | $ |     165,287 |   | $ |    56,726 |   | $ |    38,176 |   | $ |     460,519 |   |

|                                                      | AAC    |
|-----------------------------------------------------------|--------|
|                                                      | Class  |   |   |   |   | Graduation |   |   |   |   |   |   |   |
|                                                      | Rings  |   | Yearbooks |   | Products |   | Other |   | Total |   |
| As                  of November 24,                  2007 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                  assets                           | $      |  207,892 |   | $ |  162,007 |   | $ |  57,974 |   | $ |  39,309 |   | $ | 467,182 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                  of August 25,                  2007   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                  assets                           | $      |     199,160 |   | $ |     164,223 |   | $ |    56,347 |   | $ |    37,979 |   | $ |     457,709 |   |

----

ITEM      2. MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS

----

----

|                                                                         |   | Parent                Holdings                  |                                                                                                                           |
|------------------------------------------------------------------------------|--------|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                         |   | For                the                Three     |                                                                                                                           | %                of |   |   | For                the                Three |   | %                of |   |   |
|                                                                         |   | Months                Ended                     |                                                                                                                           | Net |   |   | Months                Ended |   | Net |   |   |
|                                                                         |   | November                24,                2007 |                                                                                                                           | Sales |   |   | November                25,                2006 |   | Sales |   |   |
| Net                sales                                                     |   |  $                                         |                  51,940                   |   |         100.0 |  % |   |  $ |                  52,048 |   |    100.0 |  % |   |
| Cost                of                sales                                  |   |                                            |                  25,317                   |   |           48.7 |  % |   |   |                  27,393 |   |      52.6 |  % |   |
| Gross                profit                                                  |   |                                            |                  26,623                   |   |           51.3 |  % |   |   |                  24,655 |   |      47.4 |  % |   |
| Selling,                general &                administrative expenses |   |                                            |                  29,346                   |   |           56.5 |  % |   |   |                  27,640 |   |      53.1 |  % |   |
| Operating                loss                                                |   |                                            |                  (2,723                   |  ) |            (5.2) |  % |   |   |                   (2,985 |  ) |      (5.7) |  % |   |
| Interest                expense,                net                          |   |                                            |                  15,631                   |   |           30.1 |  % |   |   |                  14,624 |   |      28.1 |  % |   |
| Loss                before income                taxes                       |   |                                            |                (18,354                              |  ) |          (35.3) |  % |   |   |                 (17,609 |  ) |    (33.8) |  % |   |
| Benefit for                income                taxes                  |   |                                            |                  (4,555                   |  ) |            (8.7) |  % |   |   |                   (6,380 |  ) |    (12.3) |  % |   |
| Loss                from continuing                operations                |   |                                            |                (13,799                              |  ) |          (26.6) |  % |   |   |                 (11,229 |  ) |    (21.6) |  % |   |
| Discontinued                operations:                                      |   |                                            |                                                                                                                           |   |   |   |   |   |   |   |  - |   |   |
|   Loss                from                discontinued segment     |   |                                            |                  (7,090                   |  ) |          (13.7) |  % |   |   |                      (708 |  ) |      (1.4) |  % |   |
|   Benefit for                income taxes                     |   |                                            |                     (2,772 |  ) |            (5.4) |  % |   |   |                      (279 |  ) |      (0.5) |  % |   |
| Loss                from discontinued                operations              |   |                                            |                  (4,318                   |  ) |          (8.3) |  % |   |   |                      (429 |  ) |      (0.8) |  % |   |
| Net                loss                                                      |   |  $                                         |                (18,117                              |  ) |          (34.9) |  % |   |  $ |                 (11,658 |  ) |    (22.4) |  % |   |

----

|                                                                         |   | Intermediate                Holdings            |                                                                                                                           |
|------------------------------------------------------------------------------|--------|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                         |   | For                the                Three     |                                                                                                                           | %                of |   |   | For                the                Three |   | %                of |   |   |
|                                                                         |   | Months                Ended                     |                                                                                                                           | Net |   |   | Months                Ended |   | Net |   |   |
|                                                                         |   | November                24,                2007 |                                                                                                                           | Sales |   |   | November                25,                2006 |   | Sales |   |   |
| Net                sales                                                     |   |  $                                         |                  51,940                   |   |         100.0 |  % |   |  $ |                  52,048 |   |    100.0 |  % |   |
| Cost                of                sales                                  |   |                                            |                  25,317                   |   |           48.7 |  % |   |   |                  27,393 |   |      52.6 |  % |   |
| Gross                profit                                                  |   |                                            |                  26,623                   |   |           51.3 |  % |   |   |                  24,655 |   |      47.4 |  % |   |
| Selling,                general &                administrative expenses |   |                                            |                  29,346                   |   |           56.5 |  % |   |   |                  27,640 |   |      53.1 |  % |   |
| Operating                loss                                                |   |                                            |                  (2,723                   |  ) |            (5.2) |  % |   |   |                   (2,985 |  ) |      (5.7) |  % |   |
| Interest                expense,                net                          |   |                                            |                    8,171        |   |           15.7 |  % |   |   |                    8,717 |   |      16.7 |  % |   |
| Loss                before income                taxes                       |   |                                            |                (10,894                              |  ) |          (21.0) |  % |   |   |                 (11,702 |  ) |    (22.5) |  % |   |
| Benefit for                income                taxes                  |   |                                            |                  (4,592                   |  ) |            (8.8) |  % |   |   |                   (4,819 |  ) |      (9.3) |  % |   |
| Loss                from continuing                operations                |   |                                            |                  (6,302                   |  ) |          (12.2) |  % |   |   |                   (6,883 |  ) |    (13.2) |  % |   |
| Discontinued                operations:                                      |   |                                            |                                                                                                                           |   |  - |   |   |   |   |   |  - |   |   |
|   Loss                from                discontinued segment     |   |                                            |                  (7,090                   | )  |          (13.7) |  % |   |   |                      (708 |  ) |      (1.4) |  % |   |
|   Benefit for                income taxes                     |   |                                            |                     (2,772 |  ) |            (5.4) |  % |   |   |                      (279 |  ) |      (0.5) |  % |   |
| Loss                from discontinued                operations              |   |                                            |                  (4,318                   |  ) |          (8.3) |  % |   |   |                      (429 |  ) |      (0.8) |  % |   |
| Net                loss                                                      |   |  $                                         |                (10,620                              |  ) |          (20.5) |  % |   |  $ |                   (7,312 |  ) |    (14.0) |  % |   |

|                                                                             |   | AAC                                                 |                                                                                                                           |
|----------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                             |   | For                  the                  Three     |                                                                                                                           | %                  of |   |   | For                  the                  Three |   | %                  of |   |   |
|                                                                             |   | Months                  Ended                       |                                                                                                                           | Net |   |   | Months                  Ended |   | Net |   |   |
|                                                                             |   | November                  24,                  2007 |                                                                                                                           | Sales |   |   | November                  25,                  2006 |   | Sales |   |   |
| Net                  sales                                                       |   |  $                                             |                  51,940                   |   |         100.0 |  % |   |  $ |                  52,048 |   |    100.0 |  % |   |
| Cost                  of                  sales                                  |   |                                                |                  25,317                   |   |           48.7 |  % |   |   |                  27,393 |   |      52.6 |  % |   |
| Gross                  profit                                                    |   |                                                |                  26,623                   |   |           51.3 |  % |   |   |                  24,655 |   |      47.4 |  % |   |
| Selling,                  general &                  administrative expenses |   |                                                |                  29,346                   |   |           56.5 |  % |   |   |                  27,640 |   |      53.1 |  % |   |
| Operating                  loss                                                  |   |                                                |                  (2,723                   |  ) |            (5.2) |  % |   |   |                   (2,985 |  ) |      (5.7) |  % |   |
| Interest                  expense,                  net                          |   |                                                |                    5,105        |   |             9.8 |  % |   |   |                    5,921 |   |      11.4 |  % |   |
| Loss                  before income                  taxes                       |   |                                                |                  (7,828                   |  ) |          (15.1) |  % |   |   |                   (8,906 |  ) |    (17.1) |  % |   |
| Benefit for                  income                  taxes                  |   |                                                |                  (3,090                   |  ) |            (6.0) |  % |   |   |                   (3,509 |  ) |      (6.7) |  % |   |
| Loss                  from continuing                  operations                |   |                                                |                  (4,738                   |  ) |            (9.1) |  % |   |   |                   (5,397 |  ) |    (10.4) |  % |   |
| Discontinued                  operations:                                        |   |                                                |                                                                                                                           |   |  - |   |   |   |   |   |  - |   |   |
| Loss                  from discontinued                  segment                 |   |                                                |                  (7,090                   |  ) |          (13.7) |  % |   |   |                      (708 |  ) |      (1.4) |  % |   |
| Benefit for                  income                  taxes                  |   |                                                |                     (2,772 |  ) |            (5.4) |  % |   |   |                      (279 |  ) |      (0.5) |  % |   |
| Loss                  from discontinued                  operations              |   |                                                |                  (4,318                   |  ) |          (8.3) |  % |   |   |                      (429 |  ) |      (0.8) |  % |   |
| Net                  loss                                                        |   |  $                                             |                (9,056                               |  ) |          (17.4) |  % |   |  $ |                   (5,826 |  ) |    (11.2) |  % |   |

----

----

----

----

ITEM      4. CONTROLS AND      PROCEDURES

----

PART      II. OTHER      INFORMATION

ITEM      1. LEGAL      PROCEEDINGS

ITEM      6.      EXHIBITS

|         |  |                                                                                                                                           |
|---------|--|-------------------------------------------------------------------------------------------------------------------------------------------|
| EXHIBIT |  |                                                                                                                                           |
| NUMBER  |  | DESIGNATION                                                                                                                               |
| 31.1    |  | CEO                Certification Accompanying Period Report Pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002 |
|         |  |                                                                                                                                           |
| 31.2    |  | CFO                Certification Accompanying Period Report Pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002 |
|         |  |                                                                                                                                           |
| 32.1    |  | CEO                Certification Accompanying Period Report Pursuant to Section 906 of                the Sarbanes-Oxley Act of 2002 |
|         |  |                                                                                                                                           |
| 32.2    |  | CFO                Certification Accompanying Period Report Pursuant to Section 906 of                the Sarbanes-Oxley Act of 2002 |

----

SIGNATURES

|        |        |                                                         |        |                                              |        |        |
|--------|--------|---------------------------------------------------------|--------|----------------------------------------------|--------|--------|
|        |        | AMERICAN                ACHIEVEMENT GROUP HOLDING CORP. |        |                                              |
|        |        | AAC                GROUP HOLDING CORP.                  |        |                                              |
|        |        | AMERICAN                ACHIEVEMENT CORPORATION         |        |                                              |
|        |        |                                                         |        |                                              |        |        |
|        |        | By:                                                     |        | /s/                DONALD J. PERCENTI        |        |        |
|        |        |                                                         |        | Donald                J. Percenti            |        |        |
|        |        |                                                         |        | CHIEF                EXECUTIVE OFFICER       |        |        |
|        |        |                                                         |        | (principal                executive officer) |        |        |
|   |   |                                                    |   |                                         |   |   |
|        |        |                                                         |        |                                              |        |        |
|        |        | By:                                                     |        | /s/                KRIS G. RADHAKRISHNAN     |        |        |
|        |        |                                                         |        | Kris                G. Radhakrishnan         |        |        |
|        |        |                                                         |        | CHIEF                FINANCIAL OFFICER       |        |        |
|        |        |                                                         |        | (principal                financial officer) |        |        |

----