|   |   |                                                                                              |
|--------|--------|---------------------------------------------------------------------------------------------------|
| 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)                                         |   |                                         |

----

|                                                                                                                                                   |                      | PAGE   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|--------|--------|
| PART      I. FINANCIAL INFORMATION                                                                                                                     |                      |   |   |   |
| Item 1.      Condensed Consolidated Financial Statements and Notes                                                                                |                      |   |   |   |
| Unaudited      Condensed Consolidated Balance Sheets — As of February 23, 2008 and August      25, 2007                                          |                      |   | 3      |   |
| Unaudited      Condensed Consolidated Statements of Operations — For the Three and Six      Months Ended February 23, 2008 and February 24, 2007 |     6 |   |
| Unaudited      Condensed Consolidated Statement of Cash Flows — For the Six Months Ended      February 23, 2008 and February 24, 2007            | 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                                                                           |                      |   | 30     |   |
| Item 4.      Controls and Procedures                                                                                                              |                      |   | 30     |   |
|                                                                                                                                                   |                      |   |   |   |
| PART      II. OTHER INFORMATION                                                                                                                        |                      |   |   |   |
| Item 1.      Legal Proceedings                                                                                                                    |                      |   | 31     |   |
| Item 6.      Exhibits                                                                                                                             |                      |   | 31     |   |
| SIGNATURES                                                                                                                                             |                      |   | 32     |   |
|  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                                                                                                |                      |   |   |   |

----

|                                                                                                     |                                                                                                                           | Parent      Holdings   |                                                                                                                                                                            |
|----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                     |                                                                                                                           | February      23, 2008 |                                                                                                                                                                            | August      25, 2007 |   |
|                                                                                                     |                                                                                                                           | (in      thousands)    |                                                                                                                                                                            |
| ASSETS                                                                                                   |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Cash      and cash equivalents                                                                           |                                                                                                                           |  $                |                     17,330                                                  |   |  $ |                       1,454 |   |
| Accounts      receivable, net of allowance for doubtful accounts of $2,461 and $1,875,      respectively |                     36,130 |                   |                                                                                                                                                                            |                     43,039 |   |
| Inventories                                                                                              |                                                                                                                           |                   |                     39,428                                                  |   |   |                     31,158 |   |
| Deferred      tax assets                                                                                 |                                                                                                                           |                   |                     10,867                                                  |   |   |                       3,731 |   |
| Prepaid      expenses and other current assets, net                                                      |                                                                                                                           |                   |                     19,574                                                  |   |   |                     18,317 |   |
| Total      current assets                                                                                |                                                                                                                           |                   |                   123,329                                                             |   |   |                     97,699 |   |
|                                                                                                     |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Property,      plant and equipment, net                                                                  |                                                                                                                           |                   |                     72,988                                                  |   |   |                     70,653 |   |
| Goodwill                                                                                                 |                                                                                                                           |                   |                   171,073                                                             |   |   |                   173,277 |   |
| Other      intangible assets, net                                                                        |                                                                                                                           |                   |                   102,739                                                             |   |   |                   107,855 |   |
| Other      assets, net                                                                                   |                                                                                                                           |                   |                     20,772                                                  |   |   |                     26,582 |   |
| Total      assets                                                                                        |                                                                                                                           |  $                |                 490,901                                                                         |   |  $ |                 476,066 |   |
| LIABILITIES      AND STOCKHOLDERS’ DEFICIT                                                         |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Book      overdraft                                                                                      |                                                                                                                           |  $                |                       1,356                                       |   |  $ |                       5,082 |   |
| Accounts      payable                                                                                    |                                                                                                                           |                   |                     13,819                                                  |   |   |                     10,590 |   |
| Customer      deposits                                                                                   |                                                                                                                           |                   |                     55,346                                                  |   |   |                     11,771 |   |
| Accrued      expenses                                                                                    |                                                                                                                           |                   |                     19,156                                                  |   |   |                     20,361 |   |
| Deferred      revenue                                                                                    |                                                                                                                           |                   |                       3,389                                       |   |   |                       4,460 |   |
| Accrued      interest                                                                                    |                                                                                                                           |                   |                       5,322                                       |   |   |                       5,550 |   |
| Current      portion of long-term debt                                                                   |                                                                                                                           |                   |                          841                       |   |   |                          900 |   |
| Total      current liabilities                                                                           |                                                                                                                           |                   |                     99,229                                                  |   |   |                     58,714 |   |
|                                                                                                     |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Long-term      debt, net of current portion                                                              |                                                                                                                           |                   |                   542,726                                                             |   |   |                   537,680 |   |
| Mandatory      redeemable preferred stock                                                                |                                                                                                                           |                   |                       7,500                                       |   |   |                       7,500 |   |
| Deferred      tax liabilities                                                                            |                                                                                                                           |                   |                       5,933                                       |   |   |                       9,736 |   |
| Other      long-term liabilities                                                                         |                                                                                                                           |                   |                       8,141                                       |   |   |                       6,619 |   |
| Total      liabilities                                                                                   |                                                                                                                           |                   |                   663,529                                                             |   |   |                   620,249 |   |
|                                                                                                     |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Commitments      and contingencies                                                                       |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
|                                                                                                     |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Stockholders’      deficit:                                                                        |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Common      stock                                                                                        |                                                                                                                           |                   |                              5 |   |   |                              5 |   |
| Additional      paid-in capital                                                                          |                                                                                                                           |                   |                  (123,880                                                                  | )  |   |                  (124,045 | ) |
| Accumulated      deficit                                                                                 |                                                                                                                           |                   |                    (51,756                                                       | ) |   |                    (23,297 | ) |
| Accumulated      other comprehensive income                                                              |                                                                                                                           |                   |                       3,003                                       |   |   |                       3,154 |   |
| Total      stockholders’ deficit                                                                   |                                                                                                                           |                   |                  (172,628                                                                  | )  |   |                  (144,183 | ) |
|                                                                                                     |                                                                                                                           |                   |                                                                                                                                                                            |   |   |   |   |
| Total      liabilities and stockholders’ deficit                                                   |                                                                                                                           | $                      |                 490,901                                                                         |   | $ |                 476,066 |   |

----

|                                                                                                     |   | Intermediate      Holdings                                                                                                     |                                                                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                     |   | February      23, 2008                                                                                                         |                                                                                                                                                                                  | August      25, 2007 |   |
|                                                                                                     |   | (in      thousands)                                                                                                            |
| ASSETS                                                                                                   |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Cash      and cash equivalents                                                                           |   |  $                                                                                                                        |                     17,037                                                        |   |  $ |                       1,168 |   |
| Accounts      receivable, net of allowance for doubtful accounts of $2,461 and $1,875,      respectively |   |                     36,130 |                                                                                                                                                                                  |   |                     43,039 |   |
| Inventories                                                                                              |   |                                                                                                                           |                     39,428                                                        |   |   |                     31,158 |   |
| Deferred      tax assets                                                                                 |   |                                                                                                                           |                     10,867                                                        |   |   |                       3,731 |   |
| Prepaid      expenses and other current assets, net                                                      |   |                                                                                                                           |                     19,574                                                        |   |   |                     18,317 |   |
| Total      current assets                                                                                |   |                                                                                                                           |                   123,036                                                                   |   |   |                     97,413 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Property,      plant and equipment, net                                                                  |   |                                                                                                                           |                     72,988                                                        |   |   |                     70,653 |   |
| Goodwill                                                                                                 |   |                                                                                                                           |                   171,073                                                                   |   |   |                   173,277 |   |
| Other      intangible assets, net                                                                        |   |                                                                                                                           |                   102,739                                                                   |   |   |                   107,855 |   |
| Other      assets, net                                                                                   |   |                                                                                                                           |                     13,878                                                        |   |   |                     18,931 |   |
| Total      assets                                                                                        |   |  $                                                                                                                        |                 483,714                                                                               |   |  $ |                 468,129 |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                          |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Book      overdraft                                                                                      |   |  $                                                                                                                        |                       1,356                                             |   |  $ |                       5,082 |   |
| Accounts      payable                                                                                    |   |                                                                                                                           |                     13,819                                                        |   |   |                     10,590 |   |
| Customer      deposits                                                                                   |   |                                                                                                                           |                     55,346                                                        |   |   |                     11,771 |   |
| Accrued      expenses                                                                                    |   |                                                                                                                           |                     19,211                                                        |   |   |                     20,299 |   |
| Deferred      revenue                                                                                    |   |                                                                                                                           |                       3,389                                             |   |   |                       4,460 |   |
| Accrued      interest                                                                                    |   |                                                                                                                           |                       5,322                                             |   |   |                       5,550 |   |
| Current      portion of long-term debt                                                                   |   |                                                                                                                           |                          841                             |   |   |                          900 |   |
| Total      current liabilities                                                                           |   |                                                                                                                           |                     99,284                                                        |   |   |                     58,652 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Long-term      debt, net of current portion                                                              |   |                                                                                                                           |                   353,935                                                                   |   |   |                   361,836 |   |
| Deferred      tax liabilities                                                                            |   |                                                                                                                           |                     16,483                                                        |   |   |                     19,731 |   |
| Other      long-term liabilities                                                                         |   |                                                                                                                           |                       3,148                                             |   |   |                       3,034 |   |
| Total      liabilities                                                                                   |   |                                                                                                                           |                   472,850                                                                   |   |   |                   443,253 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Commitments      and contingencies                                                                       |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Stockholders’      equity:                                                                         |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Common      stock                                                                                        |   |                                                                                                                           |                               - |   |   |                               - |   |
| Additional      paid-in capital                                                                          |   |                                                                                                                           |                     24,309                                                        |   |   |                     24,144 |   |
| Accumulated      deficit                                                                                 |   |                                                                                                                           |                    (16,448                                                             | ) |   |                      (2,422 | ) |
| Accumulated      other comprehensive income                                                              |   |                                                                                                                           |                       3,003                                             |   |   |                       3,154 |   |
| Total      stockholders’ equity                                                                    |   |                                                                                                                           |                     10,864                                                        |   |   |                     24,876 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Total      liabilities and stockholders’ equity                                                    |   | $                                                                                                                              |                 483,714                                                                               |   | $ |                 468,129 |   |

----

|                                                                                                     |   | AAC                                                                                                                            |                                                                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                     |   | February      23, 2008                                                                                                         |                                                                                                                                                                                  | August      25, 2007 |   |
|                                                                                                     |   | (in      thousands)                                                                                                            |
| ASSETS                                                                                                   |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Cash      and cash equivalents                                                                           |   |  $                                                                                                                        |                     16,477                                                        |   |  $ |                          620 |   |
| Accounts      receivable, net of allowance for doubtful accounts of $2,461 and $1,875,      respectively |   |                     36,130 |                                                                                                                                                                                  |   |                     43,039 |   |
| Inventories                                                                                              |   |                                                                                                                           |                     39,428                                                        |   |   |                     31,158 |   |
| Deferred      tax assets                                                                                 |   |                                                                                                                           |                     10,867                                                        |   |   |                       3,731 |   |
| Prepaid      expenses and other current assets, net                                                      |   |                                                                                                                           |                     19,574                                                        |   |   |                     18,317 |   |
| Total      current assets                                                                                |   |                                                                                                                           |                   122,476                                                                   |   |   |                     96,865 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Property,      plant and equipment, net                                                                  |   |                                                                                                                           |                     72,988                                                        |   |   |                     70,653 |   |
| Goodwill                                                                                                 |   |                                                                                                                           |                   171,073                                                                   |   |   |                   173,277 |   |
| Other      intangible assets, net                                                                        |   |                                                                                                                           |                   102,739                                                                   |   |   |                   107,855 |   |
| Other      assets, net                                                                                   |   |                                                                                                                           |                     11,838                                                        |   |   |                     16,669 |   |
| Total      assets                                                                                        |   |  $                                                                                                                        |                 481,114                                                                               |   |  $ |                 465,319 |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                          |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Book      overdraft                                                                                      |   |  $                                                                                                                        |                       1,356                                             |   |  $ |                       5,082 |   |
| Accounts      payable                                                                                    |   |                                                                                                                           |                     13,819                                                        |   |   |                     10,590 |   |
| Customer      deposits                                                                                   |   |                                                                                                                           |                     55,346                                                        |   |   |                     11,771 |   |
| Accrued      expenses                                                                                    |   |                                                                                                                           |                     19,230                                                        |   |   |                     20,284 |   |
| Deferred      revenue                                                                                    |   |                                                                                                                           |                       3,389                                             |   |   |                       4,460 |   |
| Accrued      interest                                                                                    |   |                                                                                                                           |                       5,322                                             |   |   |                       5,550 |   |
| Current      portion of long-term debt                                                                   |   |                                                                                                                           |                          841                             |   |   |                          900 |   |
| Total      current liabilities                                                                           |   |                                                                                                                           |                     99,303                                                        |   |   |                     58,637 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Long-term      debt, net of current portion                                                              |   |                                                                                                                           |                   230,051                                                                   |   |   |                   243,982 |   |
| Deferred      tax liabilities                                                                            |   |                                                                                                                           |                     30,549                                                        |   |   |                     30,639 |   |
| Other      long-term liabilities                                                                         |   |                                                                                                                           |                       3,120                                             |   |   |                       3,006 |   |
| Total      liabilities                                                                                   |   |                                                                                                                           |                   363,023                                                                   |   |   |                   336,264 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Commitments      and contingencies                                                                       |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Stockholders’      equity:                                                                         |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Common      stock                                                                                        |   |                                                                                                                           |                               - |   |   |                               - |   |
| Additional      paid-in capital                                                                          |   |                                                                                                                           |                   109,211                                                                   |   |   |                   109,046 |   |
| Accumulated      earnings                                                                                |   |                                                                                                                           |                       5,877                                             |   |   |                     16,855 |   |
| Accumulated      other comprehensive income                                                              |   |                                                                                                                           |                       3,003                                             |   |   |                       3,154 |   |
| Total      stockholders’ equity                                                                    |   |                                                                                                                           |                   118,091                                                                   |   |   |                   129,055 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |   |   |
| Total      liabilities and stockholders’ equity                                                    |   | $                                                                                                                              |                 481,114                                                                               |   | $ |                 465,319 |   |
|                                                                                                     |   |                                                                                                                           |                                                                                                                                                                                  |   |   |

----

|                                              |         | Parent      Holdings |                                                                                                                                 |
|---------------------------------------------------|--------------|----------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                              |         |                 | For      the three months ended                                                                                                      |   |   | For      the six months ended |   |
|                                              |         |                 | February      23, 2008                                                                                                               |   |   | February      24, 2007 |   |   | February      23, 2008 |   |   | February      24, 2007 |   |
|                                              |         | (in      thousands)  |                                                                                                                                 |
| Net      sales                                    |    | $                    |                      60,628 |   | $ |                        57,097 |   | $ |                     112,568 |   | $ |                     109,145 |   |
| Cost      of sales                                |         |                 |               26,865                                           |   |   |              21,258 |   |   |              52,182 |   |   |               48,651 |   |
| Gross      profit                                 |         |                 |               33,763                                           |   |   |              35,839 |   |   |              60,386 |   |   |               60,494 |   |
| Selling,      general and administrative expenses |         |                 |               31,744                                           |   |   |              30,574 |   |   |              61,090 |   |   |               58,214 |   |
| Operating      income (loss)                      |         |                 |                 2,019                                |   |   |                5,265 |   |   |                 (704 | ) |   |                 2,280 |   |
| Interest      expense, net                        |         |                 |           15,995                                                                   |   |   |              14,350 |   |   |              31,626 |   |   |               28,974 |   |
| Loss      before income taxes                     |         |                 |              (13,976                                                | ) |   |              (9,085 | )  |   |            (32,330 | )  |   |             (26,694 | )  |
| Benefit      for income taxes                     |         |                 |                (3,657                                     | )  |   |              (3,068 | )  |   |              (8,212 | )  |   |               (9,448 | ) |
| Loss      from continuing operations              |         |                 |                (10,319                                    | )  |   |              (6,017 | )  |   |            (24,118 | )  |   |             (17,246 | )  |
| Discontinued      operations:                     |         |                 |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued segment               |         |                 |    (38                                                                                                                | ) |   |                           (986 | ) |   |      (7,128 | )  |   |                       (1,694 | )  |
| Benefit      for income taxes                     |         |                 |     (15                                                                                                          | ) |   |          (383 | ) |   |    (2,787 | ) |   | (662 | )  |
| Loss      from discontinued operations            |         |                 |           (23                                                                      | ) |   |           (603 | ) |   |            (4,341 | ) |   |         (1,032 | )  |
|  Net      loss                               |         |  $              |  (10,342                                                                                                                        | ) |  $ |          (6,620 | )  |  $ |         (28,459 | ) |  $ |         (18,278 | ) |

----

|                                              |   | Intermediate      Holdings |                                                                                                                                                                              |
|---------------------------------------------------|--------|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |   |                       | For      the three months ended                                                                                                                                                   |   |   | For      the six months ended |   |
|                                              |   |                       | February      23, 2008                                                                                                                                                            |   |   | February      24, 2007 |   |   | February      23, 2008 |   |   | February      24, 2007 |   |
|                                              |   | (in      thousands)        |                                                                                                                                                                              |
| Net      sales                                    |   | $                          |                       60,628                                        |   | $ |                      57,097 |   | $ |                    112,568 |   | $ |                    109,145 |   |
| Cost      of sales                                |   |                       |               26,865                                                                                        |   |   |              21,258 |   |   |               52,182 |   |   |               48,651 |   |
| Gross      profit                                 |   |                       |               33,763                                                                                        |   |   |              35,839 |   |   |               60,386 |   |   |               60,494 |   |
| Selling,      general and administrative expenses |   |                       |               31,744                                                                                        |   |   |              30,574 |   |   |               61,090 |   |   |               58,214 |   |
| Operating      income (loss)                      |   |                       |                 2,019                                                                             |   |   |                5,265 |   |   |                  (704 | )  |   |                 2,280 |   |
| Interest      expense, net                        |   |                       |                 8,350                                                                             |   |   |                8,298 |   |   |               16,521 |   |   |               17,015 |   |
| Loss      before income taxes                     |   |                       |               (6,331                                                                                        | )  |   |               (3,033 | )  |   |             (17,225 | )  |   |             (14,735 | )  |
| Benefit      for income taxes                     |   |                       |               (2,948                                                                                        | )  |   |               (1,293 | )  |   |               (7,540 | )  |   |               (6,112 | )  |
| Loss      from continuing operations              |   |                       |               (3,383                                                                                        | ) |   |               (1,740 | )  |   |               (9,685 | )  |   |               (8,623 | )  |
| Discontinued      operations:                     |   |                       |                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued segment               |   |                       |                           (38                   | ) |   |                                         (986 | )  |   | (7,128 | )  |   |  (1,694 | ) |
| Benefit      for income taxes                     |   |                       |             (15                                                                                                       | ) |   |                                         (383 | )  |   |                                       (2,787 | ) |   |                       (662 | ) |
| Loss      from discontinued operations            |   |                       |                                   (23 | ) |   |                                    (603 | )  |   |                                  (4,341 | ) |   |                          (1,032 | ) |
| Net      loss                                     |   | $                          | (3,406                                                                                                                                                                            | )  |  $ | (2,343 | )  |  $ | (14,026 | )  |  $ | (9,655 | )  |

----

|                                                               |   | AAC                 |                                                                                          |
|--------------------------------------------------------------------|--------|---------------------|-----------------------------------------------------------------------------------------------|
|                                                               |   |                | For      the three months ended                                                               |   |   | For      the six months ended |   |
|                                                               |   |                |        February      23, 2008                                                            |   |   |        February      24, 2007 |   |   |        February      23, 2008 |   |   | February      24, 2007 |   |
|                                                               |   | (in      thousands) |
| Net      sales                                                     |   | $                   |          60,628                                  |   | $ |      57,097 |   | $ |            112,568 |   | $ |                      109,145 |   |
| Cost      of sales                                                 |   |                |           26,865                            |   |   |          21,258 |   |   |            52,182 |   |   |            48,651 |   |
| Gross      profit                                                  |   |                |           33,763                            |   |   |          35,839 |   |   |            60,386 |   |   |            60,494 |   |
| Selling,      general and administrative expenses                  |   |                |           31,744                            |   |   |          30,574 |   |   |            61,090 |   |   |            58,214 |   |
| Operating      income (loss)                                       |   |                |             2,019                 |   |   |            5,265 |   |   |               (704 | ) |   |              2,280 |   |
| Interest      expense, net                                         |   |                |             5,176                 |   |   |            5,409 |   |   |            10,281 |   |   |            11,330 |   |
| Loss      before income taxes                                      |   |                |           (3,157                            | ) |   |              (144 | )  |   |          (10,985 | ) |   |             (9,050 | ) |
| Benefit      for income taxes                                      |   |                |           (1,258                            | )  |   |                (64 | )  |   |            (4,348 | ) |   |             (3,573 | ) |
| Loss      from continuing operations                               |   |                |           (1,899                            | ) |   |                (80 | )  |   |            (6,637 | ) |   |             (5,477 | ) |
| Discontinued      operations:                                      |   |                |                                                                                          |   |   |   |   |   |   |   |   |   |   |
|   Loss      from discontinued segment                         |   |                |                (38 | )  |   |              (986 | )  |   |            (7,128 | ) |   |             (1,694 | ) |
|             Benefit for income taxes |   |                |                (15 | )  |   |              (383 | )  |   |            (2,787 | ) |   |                (662 | ) |
| Loss      from discontinued operations                             |   |                |                (23 | )  |   |              (603 | )  |   |            (4,341 | ) |   |             (1,032 | ) |
| Net      loss                                                      |   | $                   |           (1,922                            | )  | $ |                         (683 | )  | $ |          (10,978 | ) | $ |          (6,509 | ) |

----

|                                                                                      |   | Parent      Holdings          |                                                                                                                                                                |
|-------------------------------------------------------------------------------------------|--------|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                      |   | For      the six months ended |                                                                                                                                                                |
|                                                                                      |   |                          |  February      23, 2008                                                                                                                                        |   |   |   | February      24, 2007 |   |
|                                                                                      |   | (in      thousands)           |                                                                                                                                                                |
| Cash      flows from operating activities:                                                |   |                          |                                                                                                                                                                |   |   |   |   |   |
| Net      loss                                                                             |   | $                             |                   (28,459                                                 | )  |   | $ |                  (18,278 | )  |
| 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                                       |   |                          |                          (12           | )  |   |   |                             - |   |
| Depreciation      and amortization                                                        |   |                          |                    10,255                                            |   |   |   |                    12,877 |   |
| Deferred      income taxes                                                                |   |                          |                   (10,849                                                 | )  |   |   |                  (10,549 | )  |
| Amortization      of deferred financing fees                                              |   |                          |                      1,744                                 |   |   |   |                      1,746 |   |
| Accretion      of interest on 10.25% senior discount notes                                |   |                          |                      6,030                                 |   |   |   |                      5,474 |   |
| Accretion      of Senior PIK notes                                                        |   |                          |                    12,947                                            |   |   |   |                      9,930 |   |
| Allowance for      doubtful accounts                                                 |   |                          |                         586                 |   |   |   |                       (106 | )  |
| Changes      in assets and liabilities:                                                   |   |                          |                                                                                                                                                                |   |   |   |   |   |
| Accounts      receivable                                                                  |   |                          |                      6,323                                 |   |   |   |                      5,663 |   |
| Inventories                                                                               |   |                          |                     (6,607                                      | )  |   |   |                    (8,088 | )  |
| Prepaid      expenses and other current assets, net                                       |   |                          |                     (2,381                                      | )  |   |   |                    (7,527 | )  |
| Other      assets, net                                                                    |   |                          |                      2,583                                 |   |   |   |                      1,278 |   |
| Customer      deposits                                                                    |   |                          |                    43,575                                            |   |   |   |                    46,130 |   |
| Deferred      revenue                                                                     |   |                          |                     (1,071                                      | )  |   |   |                         521 |   |
| Accounts      payable, accrued expenses, and other long-term liabilities                  |   |                          |                     (1,232                                      | )  |   |   |                    (3,205 | )  |
| Net      cash provided by operating activities                                            |   |                          |                    38,974                                            |   |   |   |                    35,866 |   |
|                                                                                      |   |                          |                                                                                                                                                                |   |   |   |   |   |
| Cash      flows from investing activities:                                                |   |                          |                                                                                                                                                                |   |   |   |   |   |
| Purchases      of property, plant and equipment                                           |   |                          |                     (5,443                                      | )  |   |   |                    (5,703 | )  |
| Proceeds      from sales of property, plant and equipment                                 |   |                          |                           61      |   |   |                                  - |   |
| Net      cash used in investing activities                                                |   |                          |                     (5,382                                      | )  |   |   |                    (5,703 | )  |
|                                                                                      |   |                          |                                                                                                                                                                |   |   |   |   |   |
| Cash      flows from financing activities:                                                |   |                          |                                                                                                                                                                |   |   |   |   |   |
| Payments      on revolving credit facility                                                |   |                          |                   (21,905                                                 | )  |   |   |                  (24,150 | )  |
| Proceeds      from revolving credit facility                                              |   |                          |                    14,100                                            |   |   |   |                    14,850 |   |
| Payments      on term loan                                                                |   |                          |                     (6,185                                      | )  |   |   |                  (11,947 | )  |
| Deferred      financing fees                                                              |   |                          |                            - |   |   |   |                       (179 | )  |
| Change      in book overdraft                                                             |   |                          |                     (3,726                                      | )  |   |   |                       (911 | )  |
| Net      cash used in financing activities                                                |   |                          |                   (17,716                                                 | )  |   |   |                  (22,337 | )  |
|                                                                                      |   |                          |                                                                                                                                                                |   |   |   |
| Net      increase in cash and cash equivalents                                            |   |                          |                    15,876                                            |   |   |   |                      7,826 |   |
| Cash      and cash equivalents, beginning of period                                       |   |                          |                      1,454                                 |   |   |   |                      3,404 |   |
|                                                                                      |   |                          |                                                                                                                                                                |   |   |   |
| Cash      and cash equivalents, end of period                                             |   | $                             |                    17,330                                            |   |   | $ |                    11,230 |   |
|                                                                                      |   |                          |                                                                                                                                                                |   |   |   |
| Supplemental      disclosures of cash flow information:                                   |   |                          |                                                                                                                                                                |   |   |   |   |   |
| Cash      paid for interest                                                               |   | $                             |                    10,030                                            |   |   | $ |                    10,794 |   |
| Cash      paid for income taxes                                                           |   |                          |                         887                 |   |   |   |                         178 |   |
| Supplemental      disclosure of non-cash investing activities:                            |   |                          |                                                                                                                                                                |   |   |   |   |   |
|  Additions      to property, plant and equipment included in accounts payable        |   |  $                       |                   4,479                                                                                 |   |   | $ | 248 |   |

----

|                                                                                      |   | Intermediate      Holdings    |                                                                                                                                                                                                                                                              |
|-------------------------------------------------------------------------------------------|--------|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                      |   | For      the six months ended |                                                                                                                                                                                                                                                              |
|                                                                                      |   | February      23, 2008        |                                                                                                                                                                                                                                                              | February      24, 2007 |   |
|                                                                                      |   | (in      thousands)           |                                                                                                                                                                                                                                                              |
| Cash      flows from operating activities:                                                |   |                          |                                                                                                                                                                                                                                                              |   |   |   |   |   |
| Net      loss                                                                             |   | $                             |                  (14,026                                                                                                                                                     | )  |   | $ |                    (9,655 | )  |
| 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                                       |   |                          |                         (12                                                                                                               | )  |   |   |                             - |   |
| Depreciation      and amortization                                                        |   |                          |                   10,255                                                                                                                                                |   |   |   |                    12,877 |   |
| Deferred      income taxes                                                                |   |                          |                  (10,294                                                                                                                                                     | )  |   |   |                    (7,213 | )  |
| Amortization      of deferred financing fees                                              |   |                          |                        987                                                                                                                     |   |   |   |                         988 |   |
| Accretion      of interest on 10.25% senior discount notes                                |   |                          |                     6,030                                                                                                                                     |   |   |   |                      5,474 |   |
| Allowance for      doubtful accounts                                                 |   |                          |                        586                                                                                                                     |   |   |   |                       (106 | )  |
| Changes      in assets and liabilities:                                                   |   |                          |                                                                                                                                                                                                                                                              |   |   |   |   |   |
| Accounts      receivable                                                                  |   |                          |                     6,323                                                                                                                                     |   |   |   |                      5,663 |   |
| Inventories                                                                               |   |                          |                    (6,607                                                                                                                                          | )  |   |   |                    (8,088 | )  |
| Prepaid      expenses and other current assets, net                                       |   |                          |                    (2,381                                                                                                                                          | )  |   |   |                    (7,527 | )  |
| Other      assets, net                                                                    |   |                          |                     2,583                                                                                                                                     |   |   |   |                      1,278 |   |
| Customer      deposits                                                                    |   |                          |                   43,575                                                                                                                                                |   |   |   |                    46,130 |   |
| Deferred      revenue                                                                     |   |                          |                    (1,071                                                                                                                                          | )  |   |   |                         521 |   |
| Accounts      payable, accrued expenses, and other long-term liabilities                  |   |                          |                    (2,523                                                                                                                                          | )  |   |   |                    (4,419 | )  |
| Net      cash provided by operating activities                                            |   |                          |                   38,967                                                                                                                                                |   |   |   |                    35,923 |   |
|                                                                                      |   |                          |                                                                                                                                                                                                                                                              |   |   |   |   |   |
| Cash      flows from investing activities:                                                |   |                          |                                                                                                                                                                                                                                                              |   |   |   |   |   |
| Purchases      of property, plant and equipment                                           |   |                          |                    (5,443                                                                                                                                          | )  |   |   |                    (5,703 | )  |
| Proceeds      from sales of property, plant and equipment                                 |   |                          |                          61                                                                                                          |   |   |   |                             - |   |
| Net      cash used in investing activities                                                |   |                          |                    (5,382                                                                                                                                          | )  |   |   |                    (5,703 | )  |
|                                                                                      |   |                          |                                                                                                                                                                                                                                                              |   |   |   |   |   |
| Cash      flows from financing activities:                                                |   |                          |                                                                                                                                                                                                                                                              |   |   |   |   |   |
| Payments      on revolving credit facility                                                |   |                          |                  (21,905                                                                                                                                                     | )  |   |   |                  (24,150 | )  |
| Proceeds      from revolving credit facility                                              |   |                          |                   14,100                                                                                                                                                |   |   |   |                    14,850 |   |
| Payments      on term loan                                                                |   |                          |                    (6,185                                                                                                                                          | )  |   |   |                  (11,947 | )  |
| Deferred      financing fees                                                              |   |                          |                             -                                                                                         |   |   |   |                         (16 | )  |
| Change      in book overdraft                                                             |   |                          |                    (3,726                                                                                                                                          | )  |   |   |                       (911 | )  |
| Net      cash used in financing activities                                                |   |                          |                  (17,716                                                                                                                                                     | )  |   |   |                  (22,174 | )  |
|                                                                                      |   |                          |                                                                                                                                                                                                                                                              |   |   |   |
| Net      increase in cash and cash equivalents                                            |   |                          |                   15,869                                                                                                                                                |   |   |   |                      8,046 |   |
| Cash      and cash equivalents, beginning of period                                       |   |                          |                     1,168                                                                                                                                     |   |   |   |                      2,904 |   |
|                                                                                      |   |                          |                                                                                                                                                                                                                                                              |   |   |   |
| Cash      and cash equivalents, end of period                                             |   | $                             |                   17,037                                                                                                                                                |   |   | $ |                    10,950 |   |
|                                                                                      |   |                          |                                                                                                                                                                                                                                                              |   |   |   |
| Supplemental      disclosures of cash flow information:                                   |   |                          |                                                                                                                                                                                                                                                              |   |   |   |   |   |
| Cash      paid for interest                                                               |   | $                             |                   10,030                                                                                                                                                |   |   | $ |                    10,794 |   |
| Cash      paid for income taxes                                                           |   |                          |                        887                                                                                                                     |   |   |   |                         178 |   |
| Supplemental      disclosure of non-cash investing activities:                            |   |                          |                                                                                                                                                                                                                                                              |   |   |   |
| Additions      to property, plant and equipment included in accounts payable              |   | $                        |                                           4,479 |   |   | $  |                                            248 |   |

----

|                                                                                                                         |   | AAC                           |                                                                                                                                                                      |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |   | For      the six months ended |                                                                                                                                                                      |
|                                                                                                                         |   | February      23, 2008        |                                                                                                                                                                      | February      24, 2007 |   |
|                                                                                                                         |   | (in      thousands)           |                                                                                                                                                                      |
| Cash      flows from operating activities:                                                                                   |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Net      loss                                                                                                                |   | $                             |                  (10,978                                                             | )  |   | $ |                    (6,509 | )  |
| 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                                                                          |   |                          |                         (12                       | )  |   |   |                             - |   |
| Depreciation      and amortization                                                                                           |   |                          |                   10,255                                                        |   |   |   |                    12,877 |   |
| Deferred      income taxes                                                                                                   |   |                          |                    (7,136                                                  | )  |   |   |                    (4,674 | )  |
| Amortization      of deferred financing fees                                                                                 |   |                          |                        765                             |   |   |   |                         765 |   |
| Allowance for      doubtful accounts                                                                                    |   |                          |                        586                             |   |   |   |                       (106 | )  |
| Changes      in assets and liabilities:                                                                                      |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Accounts      receivable                                                                                                     |   |                          |                     6,323                                             |   |   |   |                      5,663 |   |
| Inventories                                                                                                                  |   |                          |                    (6,607                                                  | )  |   |   |                    (8,088 | )  |
| Prepaid      expenses and other current assets, net                                                                          |   |                          |                    (2,381                                                  | )  |   |   |                    (7,527 | )  |
| Other      assets, net                                                                                                       |   |                          |                     2,583                                             |   |   |   |                      1,278 |   |
| Customer      deposits                                                                                                       |   |                          |                   43,575                                                        |   |   |   |                    46,130 |   |
| Deferred      revenue                                                                                                        |   |                          |                    (1,071                                                  | )  |   |   |                         521 |   |
| Accounts      payable, accrued expenses, and other long-term liabilities                                                     |   |                          |                    (2,489                                                  | )  |   |   |                    (4,419 | )  |
| Net      cash provided by operating activities                                                                               |   |                          |                   38,955                                                        |   |   |   |                    35,911 |   |
|                                                                                                                         |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                   |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Purchases      of property, plant and equipment                                                                              |   |                          |                    (5,443                                                  | )  |   |   |                    (5,703 | )  |
| Proceeds      from sales of property, plant and equipment                                                                    |   |                          |                          61                  |   |   |   |                             - |   |
| Net      cash used in investing activities                                                                                   |   |                          |                    (5,382                                                  | )  |   |   |                    (5,703 | )  |
|                                                                                                                         |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                   |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Payments      on revolving credit facility                                                                                   |   |                          |                  (21,905                                                             | )  |   |   |                  (24,150 | )  |
| Proceeds      from revolving credit facility                                                                                 |   |                          |                   14,100                                                        |   |   |   |                    14,850 |   |
| Payments      on term loan                                                                                                   |   |                          |                    (6,185                                                  | )  |   |   |                  (11,947 | )  |
| Deferred      financing fees                                                                                                 |   |                          |                             - |   |   |   |                         (16 | ) |
| Change      in book overdraft                                                                                                |   |                          |                    (3,726                                                  | )  |   |   |                       (911 | ) |
| Net      cash used in financing activities                                                                                   |   |                          |                  (17,716                                                             | )  |   |   |                  (22,174 | ) |
|                                                                                                                         |   |                          |                                                                                                                                                                      |   |   |   |
| Net      increase in cash and cash equivalents                                                                               |   |                          |                   15,857                                                        |   |   |   |                      8,034 |   |
| Cash      and cash equivalents, beginning of period                                                                          |   |                          |                        620                             |   |   |   |                      2,381 |   |
|                                                                                                                         |   |                          |                                                                                                                                                                      |   |   |   |
| Cash      and cash equivalents, end of period                                                                                |   | $                             |                   16,477                                                        |   |   | $ |                    10,415 |   |
|                                                                                                                         |   |                          |                                                                                                                                                                      |   |   |   |
| Supplemental      disclosures of cash flow information:                                                                      |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Cash      paid for interest                                                                                                  |   | $                             |                   10,030                                                        |   |   | $ |                    10,794 |   |
| Cash      paid for income taxes                                                                                              |   |                          |                        887                             |   |   |   |                         178 |   |
| Supplemental      disclosure of non-cash investing activities:                                                               |   |                          |                                                                                                                                                                      |   |   |   |   |   |
| Additions      to property, plant and equipment included in accounts payable         |   |  $                       | 4,479                                                                                                                                                                     |   |   |  $ | 248 |   |

----

----

|                                                                                                                                                                                      |   | For      the three months ended |                                                                                                                                                                  | For      the six months ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|--------|
|                                                                                                                                                                                      |   |                            | February      23, 2008                                                                                                                                                |                          |   | February      24, 2007 |   |   | February      23, 2008 |   |   | February      24, 2007 |   |
| Parent      Holdings                                                                                                                                                                      |   |                            |                                                                                                                                                                  |                          |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                                             |   | $                               |                       (10,342                           | )                             | $      |                        (6,620 | ) | $ |                     (28,459 | ) | $ |                      (18,278 | ) |
| Amortization      of net gain and prior service cost - postretirement plans. (net of      tax of $46 and $96 for the three and six months ended February 23,2008,      respectively) |   |                            |                            (78 | )                             |   |                                  - |   |   |                          (151 | )  |   |                                  - |   |
| Total      comprehensive loss                                                                                                                                                             |   | $                               |                       (10,420                           | )                             | $      |                        (6,620 | ) | $ |                     (28,610 | )  | $ |                      (18,278 | )  |

|                                                                                                                                                                                  |   | For      the three months ended |                                                                                                                                                                  | For      the six months ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|--------|
|                                                                                                                                                                                  |   |                            | February      23, 2008                                                                                                                                                |                          |   | February      24, 2007 |   |   | February      23, 2008 |   |   | February      24, 2007 |   |
| Intermediate      Holdings                                                                                                                                                            |   |                            |                                                                                                                                                                  |                          |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                                         |   | $                               |                       (3,406                            | )                             | $      |                        (2,343 | )  | $ |                     (14,026 | ) | $ |                        (9,655 | ) |
| Amortization      of net gain and prior service cost - postretirement plans. (net of tax of      $46 and $96 for the three and six months ended February 23, 2008,      respectively) |   |                            |                            (78 | )                        |   |                                  - |   |   |                          (151 | )  |   |                                  - |   |
| Total      comprehensive loss                                                                                                                                                         |   | $                               |                       (3,484                            | )                        | $      |                        (2,343 | ) | $ |                     (14,177 | ) | $ |                        (9,655 | )  |

----

|                                                                                                                                                                                        |   | For      the three months ended |                                                                                                                                                                  | For      the six months ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|--------|
|                                                                                                                                                                                        |   |                            | February      23, 2008                                                                                                                                                |                          |   | February      24, 2007 |   |   | February      23, 2008 |   |   | February      24, 2007 |   |
| AAC                                                                                                                                                                                         |   |                            |                                                                                                                                                                  |                          |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                                               |   | $                               |                       (1,922                            | )                             | $      |                           (683 | ) | $ |                     (10,978 | ) | $ |                        (6,509 | ) |
| Amortixation      of net gain and prior service cost - postretirement plans.  (net of      tax of $46 and $96 for the three and six months ended February 23, 2008,      respectively) |   |                            |                            (78 | )                             |   |                                  - |   |   |                          (151 | )  |   |                                  - |   |
| Total      comprehensive loss                                                                                                                                                               |   | $                               |                       (2,000                            | )                             | $      |                           (683 | ) | $ |                     (11,129 | ) | $ |                        (6,509 | ) |

|                                   | For      the three months ended |                                                                                                                                                                                                                | For      the six months ended |   |
|----------------------------------------|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|--------|
|                                   |                            | February      23, 2008                                                                                                                                                                                              |                          |   | February      24, 2007 |   |   | February      23, 2008 |   |   | February      24, 2007 |   |
| Discontinued      operations:          |                            |                                                                                                                                                                                                                |                          |   |   |   |   |   |   |   |   |   |
| Net      sales                         | $                               |                                    - |                          | $      |                               580 |   | $ |                             1,758 |   | $ |                            1,290 |   |
|                                   |                            |                                                                                                                                                                                                                |                          |   |   |   |   |   |   |   |   |   |
| Operating      loss                    | $                               |                                (38                       | )                             | $      |                             (986 | )  | $ |                            (7,128 | )  | $ |                          (1,694 | ) |
| Benefit      for income taxes          |                            |                                (15                       | )                             |   |                             (383 | )  |   |                            (2,787 | )  |   |                             (662 | )  |
| Loss      from discontinued operations | $                               |                                (23                       | )                             | $      |                             (603 | )  | $ |                            (4,341 | )  | $ |                          (1,032 | )  |

|                            |    | 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 |    |
|                            |    |                                                                                                                                                          |    |    |                                                                                                                                                |    |    |                                                                                                                                                            |    |
| Payments      made              |    |                    (301                                        | )  |    |                         (45 | )  |    |                         (346            | )  |
| Balance,      February 23, 2008 |  $ |                           - |    |  $ |                         103 |    |  $ |                           103 |    |

----

|                       |   |   | February      23, 2008                                                                                                                               |    |   |   | August      25, 2007                                                                                                                           |    |
|----------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Raw      materials         |   | $      |                     13,287                       |    |   | $      |                     19,357                 |    |
| Work      in process       |   |   |                     16,816                       |    |   |   |                       4,853      |    |
| Finished      goods        |   |   |                       9,679            |    |   |   |                       7,941      |    |
| Less      — reserves |   |   |                         (354 | )  |   |   |                        (993 | )  |
|                       |   | $      |                     39,428                       |    |   | $      |                     31,158                 |    |

|                          |   |   |                                                                                                                                                                                  |   |   |   |                                                                                                                    |   |
|-------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
|                          |   |   | February      23, 2008                                                                                                                                                                |   |   |   | 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                       |   |

|                                           |   | Estimated           |   | Gross  |                                                        |   | Accumulated  |   |                                                                                                    | Net    |   |
|------------------------------------------------|--------|---------------------|--------|--------|-------------------------------------------------------------|--------|--------------|--------|---------------------------------------------------------------------------------------------------------|--------|--------|
|                                           |   | Useful      Life    |   | Asset  |                                                        |   | Amortization |   |                                                                                                    | Asset  |   |
|                                           |
| At      February 23, 2008                      |   |                |   |   |                                                        |   |         |   |                                                                                                    |   |   |   |   |   |
| Trademarks                                     |   | Indefinite          |   | $      |        36,972            |   |         | $      |                  - |   |   | $ |        36,972 |   |
| Patents                                        |   | 14      to 17 years |   |   |          7,317 |   |         |   |         (1,738)                                                 |   |   |   |          5,579 |   |
| Customer      lists and distribution contracts |   | 3      to 12 years  |   |   |        97,740            |   |         |   |       (37,552)                                                            |   |   |   |        60,188 |   |
| Total                                          |   |                |   | $      |      142,029                       |   |         | $      |       (39,290)                                                            |   |   | $ |      102,739 |   |
|                                           |   |                |   |   |                                                        |   |         |   |                                                                                                    |   |   |
|                                           |
| At      August 25, 2007                   |   |                |   |   |                                                        |   |         |   |                                                                                                    |   |   |   |   |   |
| 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 |   |

----

|                                                                                                                         |   |   | February      23, 2008                                                                                                                                                                      |    |   | August      25, 2007                                                                                                               |    |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------|---------|
| Parent      Holdings                                                                                                         |   |   |                                                                                                                                                                                        |    |   |                                                                                                                               |    |
| Senior      PIK Notes due October 1, 2012 (including $38,791 and $25,844 PIK interest,      respectively)                    |   | $      |                    188,791                                                                   |    | $      |                 175,844                            |    |
| 10.25%      Senior discount notes due October 1, 2012 (net of unamortized discount of      $7,616 and $13,646, respectively) |   |   |                    123,884                                                                   |    |   |                 117,854                            |    |
| 8.25%      Senior subordinated notes due April 1, 2012                                                                       |   |   |                    150,000                                                                   |    |   |                 150,000                            |    |
| Senior      secured credit facility:                                                                                         |   |   |                                                                                                                                                                                        |    |   |                                                                                                                               |    |
|        Revolving credit facility due 2010                                                                               |   |   |                                - |    |   |                     7,805      |    |
|        Term loan due 2011                                                                                               |   |   |                      80,892                                                        |    |   |                   87,077                 |    |
| Total                                                                                                                        |   |   |                    543,567                                                                   |    |   |                 538,580                            |    |
| Less      current portion of long-term debt                                                                                  |   |   |                          (841                                  | )  |   |                      (900 | )  |
| Total      long-term debt                                                                                                    |   | $      |                    542,726                                                                   |    | $      |                 537,680                            |    |
|                                                                                                                         |   |   |                                                                                                                                                                                        |    |   |

|                                                                                                                         |   |   | February      23, 2008                                                                                                                                                          |    |   | August      25, 2007                                                                                                         |    |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------|---------|
| Intermediate      Holdings                                                                                                   |   |   |                                                                                                                                                                            |    |   |                                                                                                                         |    |
| 10.25%      Senior discount notes due October 1, 2012 (net of unamortized discount of      $7,616 and $13,646, respectively) |   | $      |                   123,884                                                             |    | $      |                117,854                            |    |
| 8.25%      Senior subordinated notes due April 1, 2012                                                                       |   |   |                   150,000                                                             |    |   |                150,000                            |    |
| Senior      secured credit facility                                                                                          |   |   |                                                                                                                                                                            |    |   |                                                                                                                         |    |
|    Revolving credit      facility due 2010                                                                         |   |   |                              - |    |   |                    7,805      |    |
|    Term loan due      2011                                                                                    |   |   |                     80,892                                                  |    |   |                  87,077                 |    |
| Total                                                                                                                        |   |   |                   354,776                                                             |    |   |                362,736                            |    |
| Less      current portion of long-term debt                                                                                  |   |   |                        (841                                  | )  |   |                     (900 | )  |
| Total      long-term debt                                                                                                    |   | $      |                   353,935                                                             |    | $      |                361,836                            |    |
|                                                                                                                         |   |   |                                                                                                                                                                            |    |   |

|                                                      |   | February      23, 2008 |                                                                                                                                                                            |    | 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 |   |                   |                              - |    |                 |                      7,805            |   |
|    Term loan due      2011                      |   |                   |                    80,892                                                        |    |                 |                    87,077                       |   |
| Total                                                     |   |                   |                  230,892                                                                   |    |                 |                  244,882                                  |   |
| Less      current portion of long-term debt               |   |                   |                       (841                                        | )  |                 |                        (900 | )  |
| Total      long-term debt                                 |   | $                      |                  230,051                                                                   |    | $                    |                  243,982                                  |   |
|                                                      |   |                   |                                                                                                                                                                            |    |                 |

----

|                       | For      the three months ended                                                                                                   |   | For      the six months ended                                                                                   |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|
|                       | February      23, 2008                                                                                                            |   | February      24, 2007                                                                                          |   | February      23, 2008 |   | February      24, 2007 |
| Parent      Holdings       |  $                  232            |   |  $               163            |   |  $               354 |   |  $               278 |
| Intermediate      Holdings |                      229 |   |                   160 |   |                   348 |   |                   269 |
| AAC                        |                      224 |   |                   155 |   |                   336 |   |                   257 |

----

|                                                                 | For      the three months ended |                                                                                                    | For      the three months ended |
|----------------------------------------------------------------------|---------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------|
|                                                                 | February      23, 2008          |                                                                                                    | February      24, 2007          |
|                                                                 | TPC      Plan                   |                                                                                                    |                            | CBI      Plan |   | TPC      Plan |   | CBI      Plan |
| Service      costs, benefits attributed to service during the period | $                               |               22                  |                            |   | $ |                  - |   |   | $ |               20 |   |   | $ |                  - |   |
| Interest      cost                                                   |                            |             228                             |                            |   |   |               27 |   |   |   |             225 |   |   |   |               27 |   |
| Expected      return on assets                                       |                            |            (292                                  | )                          |   |   |                  - |   |   |   |            (247 | )  |   |   |                  - |   |
| Amortization      of unrecognized net loss (gain)                    |                            |                (9            | )                          |   |   |              (78 | )  |   |   |                  - |   |   |   |              (88 | )  |
| Amortization      of unrecognized net prior service costs            |                            |                  - |                            |   |   |              (37 | )  |   |   |                  - |   |   |   |              (37 | )  |
| Net      periodic postretirement benefit cost (income)               | $                               |              (51                       | )                          |   | $ |              (88 | )  |   | $ |                (2 | )  |   | $ |              (98 | )  |
|                                                                 |                            |                                                                                                    |                            |   |   |   |   |   |   |   |   |   |
|                                                                 |                            |                                                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | For      the six months ended   |                                                                                                    |                            | For      the six months ended |
|                                                                 | February      23, 2008          |                                                                                                    |                            | February      24, 2007 |
|                                                                 | TPC      Plan                   |                                                                                                    | CBI      Plan                   |   |   | TPC      Plan |   | CBI      Plan |
| Service      costs, benefits attributed to service during the period | $                               |               44                  |                            |   | $ |                  - |   |   |  $ |                          40 |   |   | $ |                  - |   |
| Interest      cost                                                   |                            |             457                             |                            |   |   |               54 |   |   |   |                             450 |   |   |   |               54 |   |
| Expected      return on assets                                       |                            |            (584                                  | )                          |   |   |                  - |   |   |   |                      (494 | )  |   |   |                  - |   |
| Amortization      of unrecognized net loss (gain)                    |                            |              (18                       | )                          |   |   |            (155 | )  |   |   |                - |   |   |   |            (176 | )  |
| Amortization      of unrecognized net prior service costs            |                            |  -                                                                                                 |                            |   |   |              (74 | )  |   |   |                - |   |   |   |              (74 | )  |
| Net      periodic postretirement benefit cost (income)               | $                               |            (101                                  | )                          |   | $ |            (175 | )  |   |  $ |                               (4 | )  |   | $ |            (196 | )  |

|                    | For      the three months ended February 23, 2008 |                                                                                                                                                                                   | For      the three months ended February 24, 2007 |                |
|-------------------------|---------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|---------------------|
|                    |                                              | TPC      Plan                                                                                                                                                                          |                                              |                | CBI      Plan |   |   | TPC      Plan |   |   | CBI      Plan |   |
| Net      gain           |  $                                      |                               (9 | )                                                 |   $  |                               (78 | ) |   |  n/a |   |   |  n/a |   |
| Prior      service cost |                                              |  -                                                                                                                                                                                |                                              |                |                               (37 | )  |   |  n/a |   |   |  n/a |   |
|                    |  $                                      |                               (9 | )                                                 |   $  |                             (115 | )  |   |   |   |   |   |   |
|                    |                                              |                                                                                                                                                                                   |                                              |                |   |   |   |   |   |   |   |   |
|                    | For      the six months ended February 23, 2008   |                                                                                                                                                                                   | For      the six months ended February 24, 2007   |                |
|                    |                                              | TPC      Plan                                                                                                                                                                          |                                              |                | CBI      Plan |   |   | TPC      Plan |   |   | CBI      Plan |   |
| Net      gain           |  $                                      |                             (18            | )                                            |   $  |                             (155 | )  |   |  n/a |   |   |  n/a |   |
| Prior      service cost |                                              |  -                                                                                                                                                                                |                                              |                |                               (74 | )  |   |  n/a |   |   |  n/a |   |
|                    |  $                                      |                             (18            | )                                            |   $  |                             (229 | )  |   |   |   |   |   |   |

----

|                                      | Class  |                                                        |      |   |                                                        | Graduation |   |                                                                        |   |   |                                                                              |    |   |
|-------------------------------------------|--------|-------------------------------------------------------------|-----------|--------|-------------------------------------------------------------|------------|--------|-----------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|---------|--------|
|                                      | Rings  |                                                        | Yearbooks |   | Products                                                    |       | Other  |                                                                        | Total  |   |
| Three      Months Ended February 23, 2008 |   |                                                        |      |   |                                                        |       |   |                                                                        |   |   |                                                                              |    |   |   |   |
| Net      sales                            | $      |        32,855            |      | $      |          2,335 |       | $      |        15,478                            |   | $      |          9,960                       |    | $      |        60,628 |   |
| Segment      operating income (loss)      |   |          3,779 |      |   |         (5,486      | )     |   |          3,793                 |   |   |              (67 | )  | $      |          2,019 |   |
|                                      |   |                                                        |      |   |                                                        |       |   |                                                                        |   |   |                                                                              |    |   |   |   |
| Three      Months Ended February 24, 2007 |   |                                                        |      |   |                                                        |       |   |                                                                        |   |   |                                                                              |    |   |   |   |
| Net      sales                            | $      |        31,002            |      | $      |          2,644 |       | $      |        15,278                            |   | $      |          8,173                       |    | $      |        57,097 |   |
| Segment      operating income (loss)      |   |          4,719 |      |   |         (3,989      | )     |   |          3,316                 |   |   |          1,219                       |    | $      |          5,265 |   |
|                                      |   |                                                        |      |   |                                                        |       |   |                                                                        |   |   |                                                                              |    |   |   |   |
| Six      Months Ended February 23, 2008   |   |                                                        |      |   |                                                        |       |   |                                                                        |   |   |                                                                              |    |   |   |   |
| Net      sales                            | $      |        65,516            |      | $      |        11,955            |       | $      |        18,942                            |   | $      |        16,155                                  |    | $      |      112,568 |   |
| Segment      operating income (loss)      |   |          6,539 |      |   |         (8,793      | )     |   |          2,053                 |   |   |            (503            | )  | $      |            (704 | )  |
|                                      |   |                                                        |      |   |                                                        |       |   |                                                                        |   |   |                                                                              |    |   |   |   |
| Six      Months Ended February 24, 2007   |   |                                                        |      |   |                                                        |       |   |                                                                        |   |   |                                                                              |    |   |   |   |
| Net      sales                            | $      |        64,369            |      | $      |        13,205            |       | $      |        18,037                            |   | $      |        13,534                                  |    | $      |      109,145 |   |
| Segment      operating income (loss)      |   |          8,493 |      |   |         (7,870      | )     |   |             983 |   |   |             674       |    | $      |          2,280 |   |

|                         | Parent      Holdings |
|------------------------------|----------------------|
|                         | Class                |   |   |   |   |   | Graduation |   |   |   |   |
|                         | Rings                |   | Yearbooks |   | Products |   | Other |   | Total |
| As      of February 23, 2008 |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      assets          | $                    |      210,044 |   |   | $ |      171,955 |   |   | $ |        66,948 |   |   | $ |        41,683 |   |   | $ |      490,630 |   |
|                         |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 February 23, 2008 |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      assets          | $                          |      206,916 |   |   | $ | 169,377 |   |   | $ |        66,064 |   |   | $ |        41,086 |   |   | $ |      483,443 |   |
|                         |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 February 23, 2008 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      assets          | $      |      205,785 |   |   | $ |      168,444 |   |   | $ |        65,744 |   |   | $ |        40,870 |   |   | $ |      480,843 |   |
|                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As      of August 25, 2007   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      assets          | $      |      199,160 |   |   | $ |      164,223 |   |   | $ |        56,347 |   |   | $ |        37,979 |   |   | $ |      457,709 |   |
|                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

|                                              | Parent      Holdings   |                                                                                                                                                            |
|---------------------------------------------------|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              | For      the Three     |                                                                                                                                                            |   | %      of |   |   | For      the Three |   |   | %      of |   |
| (in      thousands)                               | Months      Ended      |                                                                                                                                                            |   | Net |   |   | Months      Ended |   |   | Net |   |
|                                              | February      23, 2008 |                                                                                                                                                            |   | Sales |   |   | February      24, 2007 |   |   | Sales |   |
| Net      sales                                    | $                      |                     60,628                                  |   |   |   |          100.0 | % |   | $ |                     57,097 |   |   |   |          100.0 | % |
| Cost      of sales                                |                   |                     26,865                                  |   |   |   |            44.3 | % |   |   |                     21,258 |   |   |   |            37.2 | % |
| Gross      profit                                 |                   |                     33,763                                  |   |   |   |            55.7 | % |   |   |                     35,839 |   |   |   |            62.8 | % |
| Selling,      general and administrative expenses |                   |                     31,744                                  |   |   |   |            52.4 | % |   |   |                     30,574 |   |   |   |            53.6 | % |
| Operating      income                             |                   |                       2,019                       |   |   |   |              3.3 | % |   |   |                       5,265 |   |   |   |              9.2 | % |
| Interest      expense, net                        |                   |                     15,995                                  |   |   |   |            26.3 | % |   |   |                     14,350 |   |   |   |            25.1 | % |
| Loss      before income taxes                     |                   |                    (13,976                                       | )  |   |   |            (23.0) | % |   |   |                      (9,085 | )  |   |   |           (15.9) | % |
| Benefit for      income taxes                |                   |                      (3,657                            | )  |   |   |             (6.0) | % |   |   |                      (3,068 | )  |   |   |             (5.4) | % |
| Loss      from continuing operations              |                   |                      (10,319                           | )  |   |   |           (17.0) | % |   |   |                      (6,017 | )  |   |   |           (10.5) | % |
| Discontinued      operations:                     |                   |                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loss      from discontinued segment         |                   |                           (38 | )  |   |   |             (0.1) | % |   |   |                         (986 | )  |   |   |             (1.7) | % |
|  Benefit      for income taxes               |                   |                           (15 | )  |   |   |             (0.0) | % |   |   |                         (383 | )  |   |   |             (0.6) | % |
|  Loss      from discontinued operations      |                   |                           (23 | ) |   |   |             (0.1) | % |   |   |                         (603 | )  |   |   |             (1.1) | % |
| Net      loss                                     | $                      |                      (10,342                           | )  |   |   |           (17.1) | % |   | $ |                      (6,620 | )  |   |   |           (11.6) | % |
|                                              |                   |                                                                                                                                                            |   |   |   |   |   |   |   |   |   |

|                                              | Intermediate      Holdings |                                                                                                                                                            |
|---------------------------------------------------|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              | For      the Three         |                                                                                                                                                            |   | %      of |   |   | For      the Three |   |   | %      of |   |
| (in      thousands)                               | Months      Ended          |                                                                                                                                                            |   | Net |   |   | Months      Ended |   |   | Net |   |
|                                              | February      23, 2008     |                                                                                                                                                            |   | Sales |   |   | February      24, 2007 |   |   | Sales |   |
| Net      sales                                    | $                          |                     60,628                                  |   |   |   |          100.0 | % |   | $ |                     57,097 |   |   |   |          100.0 | % |
| Cost      of sales                                |                       |                     26,865                                  |   |   |   |            44.3 | % |   |   |                     21,258 |   |   |   |            37.2 | % |
| Gross      profit                                 |                       |                     33,763                                  |   |   |   |            55.7 | % |   |   |                     35,839 |   |   |   |            62.8 | % |
| Selling,      general and administrative expenses |                       |                     31,744                                  |   |   |   |            52.4 | % |   |   |                     30,574 |   |   |   |            53.6 | % |
| Operating      income                             |                       |                       2,019                       |   |   |   |              3.3 | % |   |   |                       5,265 |   |   |   |              9.2 | % |
| Interest      expense, net                        |                       |                       8,350                       |   |   |   |            13.7 | % |   |   |                       8,298 |   |   |   |            14.5 | % |
| Loss      before income taxes                     |                       |                      (6,331                            | )  |   |   |           (10.4) | % |   |   |                     (3,033 | )  |   |   |             (5.3) | % |
| Benefit for      income taxes                |                       |                      (2,948                            | )  |   |   |             (4.9) | % |   |   |                     (1,293 | )  |   |   |             (2.3) | % |
| Loss      from continuing operations              |                       |                      (3,383                            | )  |   |   |             (5.5) | % |   |   |                     (1,740 | )  |   |   |             (3.0) | % |
| Discontinued      operations:                     |                       |                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loss      from discontinued segment         |                       |                           (38 | )  |   |   |             (0.1) | % |   |   |                        (986 | )  |   |   |             (1.7) | % |
|  Benefit      for income taxes               |                       |                           (15 | )  |   |   |             (0.0) | % |   |   |                        (383 | )  |   |   |             (0.6) | % |
|  Loss      from discontinued operations      |                       |                           (23 | )  |   |   |             (0.1) | % |   |   |                        (603 | )  |   |   |             (1.1) | % |
| Net      loss                                     | $                          |                      (3,406                            | )  |   |   |             (5.6) | % |   | $ |                     (2,343 | )  |   |   |             (4.1) | % |
|                                              |                       |                                                                                                                                                            |   |   |   |   |   |   |   |   |   |

----

|                                              | AAC                    |                                                                                                                                                            |
|---------------------------------------------------|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              | For      the Three     |                                                                                                                                                            |   | %      of |   |   | For      the Three |   |   | %      of |   |
| (in      thousands)                               | Months      Ended      |                                                                                                                                                            |   | Net |   |   | Months      Ended |   |   | Net |   |
|                                              | February      23, 2008 |                                                                                                                                                            |   | Sales |   |   | February      24, 2007 |   |   | Sales |   |
| Net      sales                                    | $                      |                     60,628                                  |   |   |   |          100.0 | % |   | $ |                     57,097 |   |   |   |          100.0 | % |
| Cost      of sales                                |                   |                     26,865                                  |   |   |   |            44.3 | % |   |   |                     21,258 |   |   |   |            37.2 | % |
| Gross      profit                                 |                   |                     33,763                                  |   |   |   |            55.7 | % |   |   |                     35,839 |   |   |   |            62.8 | % |
| Selling,      general and administrative expenses |                   |                     31,744                                  |   |   |   |            52.4 | % |   |   |                     30,574 |   |   |   |            53.5 | % |
| Operating      income                             |                   |                       2,019                       |   |   |   |              3.3 | % |   |   |                       5,265 |   |   |   |              9.2 | % |
| Interest      expense, net                        |                   |                       5,176                       |   |   |   |              8.5 | % |   |   |                       5,409 |   |   |   |              9.5 | % |
| Loss      before income taxes                     |                   |                      (3,157                            | )  |   |   |             (5.2) | % |   |   |                        (144 | ) |   |   |             (0.3) | % |
| Benefit for      income taxes                |                   |                      (1,258                            | )  |   |   |             (2.1) | % |   |   |                          (64 | ) |   |   |             (0.2) | % |
| Loss      from continuing operations              |                   |                      (1,899                            | )  |   |   |             (3.1) | % |   |   |                          (80 | )  |   |   |             (0.1) | % |
| Discontinued      operations:                     |                   |                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loss      from discontinued segment         |                   |                           (38 | )  |   |   |             (0.1) | % |   |   |                        (986 | )  |   |   |             (1.7) | % |
|  Benefit      for income taxes               |                   |                           (15 | )  |   |   |             (0.0) | % |   |   |                        (383 | ) |   |   |             (0.6) | % |
|  Loss      from discontinued operations      |                   |                           (23 | )  |   |   |             (0.1) | % |   |   |                        (603 | )  |   |   |             (1.1) | % |
| Net      loss                                     | $                      |                      (1,922                            | )  |   |   |             (3.2) | % |   | $ |                        (683 | )  |   |   |             (1.2) | % |
|                                              |                   |                                                                                                                                                            |   |   |   |   |   |   |   |   |   |

----

----

|                                              | Parent      Holdings |                                                                      |
|---------------------------------------------------|----------------------|---------------------------------------------------------------------------|
|                                              |                 | For      the Six                                                          |   |   | %      of |   |   |   |   | For      the Six |   |   | %      of |   |
| (in      thousands)                               |                 | Months      Ended                                                         |   |   | Net |   |   |   |   | Months      Ended |   |   | Net |   |
|                                              |                 | February      23, 2008                                                    |   |   | Sales |   |   |   |   | February      24, 2007 |   |   | Sales |   |
| Net      sales                                    | $                    | 112,568                                                                   |   |   |           100.0 | % |   |   | $ |   109,145 |   |   |               100.0 | % |
| Cost      of sales                                |                 | 52,182                                                                    |   |   |             46.4 | % |   |   |   | 48,651 |   |   |                 44.6 | % |
| Gross      profit                                 |                 |  60,386                                                              |   |   |             53.6 | % |   |   |   |   60,494 |   |   |                 55.4 | % |
| Selling,      general and administrative expenses |                 | 61,090                                                                    |   |   |             54.2 | % |   |   |   | 58,214 |   |   |                 53.3 | % |
| Operating      income (loss)                      |                 |          (704                                              | )  |   |             (0.6) | % |   |   |   | 2,280 |   |   |                   2.1 | % |
| Interest      expense, net                        |                 |                31,626        |   |   |             28.1 | % |   |   |   | 28,974 |   |   |               (26.6) | % |
| Loss      before income taxes                     |                 |                 (32,330 | )  |   |           (28.7) | % |   |   |   |  (26,694 | )  |   |               (24.5) | % |
| Benefit for      income taxes                |                 |        (8,212                          | )  |   |             (7.3) | % |   |   |   |  (9,448 | )  |   |                 (8.7) | % |
| Loss      from continuing operations              |                 |             (24,118                         | )  |   |           (21.4) | % |   |   |   |  (17,246 | )  |   |               (15.8) | % |
| Discontinued      operations:                     |                 |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued segment               |                 | (7,128                                                                    | )  |   |             (6.3) | % |   |   |   | (1,694 | )  |   |                 (1.6) | % |
| Benefit for      income taxes                |                 |  (2,787                                                              | )  |   |             (2.4) | % |   |   |   |  (662 | )  |   |                 (0.6) | % |
| Loss      from discontinued operations            |                 | (4,341                                                                    | )  |   |             (3.9) | % |   |   |   |  (1,032 | )  |   |                 (1.0) | % |
| Net      loss                                     | $                    |  (28,459                                                             | )  |   |           (25.3) | % |   |   | $ |  (18,278 | )  |   |               (16.8) | % |

|                                              | Intermediate      Holdings |                                                                                                                                                                                                                                                                         |
|---------------------------------------------------|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |                       | For      the Six                                                                                                                                                                                                                                                             |   | %      of |   |   |   |   | For      the Six |   |   | %      of |   |
| (in      thousands)                               |                       | Months      Ended                                                                                                                                                                                                                                                            |   | Net |   |   |   |   | Months      Ended |   |   | Net |   |
|                                              |                       | February      23, 2008                                                                                                                                                                                                                                                       |   | Sales |   |   |   |   | February      24, 2007 |   |   | Sales |   |
| Net      sales                                    | $                          |                                             112,568                            |   |          100.0 | % |   |   | $ |                      109,145 |   |   |              100.0 | % |
| Cost      of sales                                |                       |                                               52,182                 |   |            46.4 | % |   |   |   |                        48,651 |   |   |                44.6 | % |
| Gross      profit                                 |                       |                                               60,386                 |   |            53.6 | % |   |   |   |                        60,494 |   |   |                55.4 | % |
| Selling,      general and administrative expenses |                       |                                               61,090                 |   |            54.2 | % |   |   |   |                        58,214 |   |   |                53.3 | % |
| Operating      income (loss)                      |                       |                                                  (704 | )  |             (0.6) | % |   |   |   |                          2,280 |   |   |                  2.1 | % |
| Interest      expense, net                        |                       |                                          16,521                 |   |            14.7 | % |   |   |   |                        17,015 |   |   |                15.6 | % |
| Loss      before income taxes                     |                       |                                        (17,225                            | )  |           (15.3) | % |   |   |   |                      (14,735 | )  |   |               (13.5) | % |
| Benefit for      income taxes                |                       |                                          (7,540                 | )  |             (6.7) | % |   |   |   |                        (6,112 | )  |   |                 (5.6) | % |
| Loss      from continuing operations              |                       |                                               (9,685                 | )  |             (8.6) | % |   |   |   |                        (8,623 | )  |   |                 (7.9) | % |
| Discontinued      operations:                     |                       |                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued segment               |                       |                                          (7,128                 | ) |             (6.3) | % |   |   |   |                        (1,694 | )  |   |                 (1.6) | % |
| Benefit for      income taxes                |                       |                                          (2,787                 | )  |             (2.4) | % |   |   |   |                           (662 | )  |   |                 (0.6) | % |
| Loss      from discontinued operations            |                       |                                               (4,341                 | ) |             (3.9) | % |   |   |   |                        (1,032 | )  |   |                 (1.0) | % |
| Net      loss                                     | $                          |                                        (14,026                            | ) |           (12.5) | % |   |   | $ |                        (9,655 | )  |   |                 (8.9) | % |
|                                              |                       |                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |

----

|                                              | AAC    |                                                                                                                                                                                                                                                                         |
|---------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |   | For      the Six                                                                                                                                                                                                                                                             |   | %      of |   |   |   | For      the Six |   |   | %      of |   |
| (in      thousands)                               |   | Months      Ended                                                                                                                                                                                                                                                            |   | Net |   |   |   | Months      Ended |   |   | Net |   |
|                                              |   | February      23, 2008                                                                                                                                                                                                                                                       |   | Sales |   |   |   | February      24, 2007 |   |   | Sales |   |
| Net      sales                                    | $      |                                             112,568                            |   |           100.0 | % |   | $ |                      109,145 |   |   |               100.0 | % |
| Cost      of sales                                |   |                                               52,182                 |   |             46.4 | % |   |   |                        48,651 |   |   |                 44.6 | % |
| Gross      profit                                 |   |                                               60,386                 |   |             53.6 | % |   |   |                        60,494 |   |   |                 55.4 | % |
| Selling,      general and administrative expenses |   |                                               61,090                 |   |             54.2 | % |   |   |                        58,214 |   |   |                 53.3 | % |
| Operating      income (loss)                      |   |                                                  (704 | )  |             (0.6) | % |   |   |                          2,280 |   |   |                   2.1 | % |
| Interest      expense, net                        |   |                                          10,281                 |   |               9.2 | % |   |   |                        11,330 |   |   |                 10.4 | % |
| Loss      before income taxes                     |   |                                             (10,985                            | ) |             (9.8) | % |   |   |                         (9,050 | )  |   |                 (8.3) | % |
| Benefit for      income taxes                |   |                                          (4,348                 | )  |             (3.9) | % |   |   |                         (3,573 | )  |   |                 (3.3) | % |
| Loss      from continuing operations              |   |                                               (6,637                 | ) |             (5.9) | % |   |   |                         (5,477 | )  |   |                 (5.0) | % |
| Discontinued      operations:                     |   |                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued segment               |   |                                               (7,128                 | )  |             (6.3) | % |   |   |                         (1,694 | )  |   |                 (1.6) | % |
| Benefit for      income taxes                |   |                                               (2,787                 | )  |             (2.4) | % |   |   |                            (662 | )  |   |                 (0.6) | % |
| Loss      from discontinued operations            |   |                                          (4,341                 | ) |             (3.9) | % |   |   |                         (1,032 | )  |   |                 (1.0) | % |
| Net      loss                                     | $      |                                        (10,978                            | )  |             (9.8) | % |   | $ |                         (6,509 | )  |   |                 (6.0) | % |

----

----

----

----

|    |   |                                                                                                                  |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------|
| 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 |

----

|   |   |                                          |   |                               |   |   |
|--------|--------|-----------------------------------------------|--------|------------------------------------|--------|--------|
|   |   | 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) |   |   |