<Page>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                            ------------------------


                                  FORM 10-Q/A


                                ---------------

<Table>
<C>        <S>
   /X/     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
           SECURITIES EXCHANGE ACT OF 1934

                   FOR THE QUARTERLY PERIOD ENDED MAY 25, 2002

                                        OR

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

                         COMMISSION FILE NUMBER 333-84294
</Table>

                        AMERICAN ACHIEVEMENT CORPORATION

             (Exact name of registrant as specified in its charter)

<Table>
<S>                                         <C>
                 DELAWARE                                   13-4126506
     (State or other jurisdiction of         (I.R.S. Employer Identification Number)
      incorporation or organization)
</Table>

                               7211 CIRCLE S ROAD
                              AUSTIN, TEXAS 78745
              (Address of principal executive offices) (Zip Code)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (512) 444-0571

    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [  ] No [X]. Prior to April 8,
2002, registrant was not subject to such filing requirements.


                         809,351 SHARES OF COMMON STOCK
       (Number of shares outstanding as of July 9, and September 9, 2002)


--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION
                  FOR THE QUARTERLY PERIOD ENDED MAY 25, 2002
                                     INDEX


<Table>
<Caption>
                                                                           PAGE
                                                                         --------
<S>       <C>                                                            <C>
PART I.   FINANCIAL INFORMATION

Item 1.   Condensed Consolidated Financial Statements and Notes (as
          restated)

          Financial Information.......................................      3

          Condensed Consolidated Balance Sheets--
          As of May 25, 2002 (unaudited) and August 25, 2001
            (unaudited)...............................................      4

          Condensed Consolidated Statements of Operations--
          For the Three Months Ended May 25, 2002 (unaudited) and
          May 26, 2001
            (unaudited)...............................................      5

          Condensed Consolidated Statements of Operations--
          For the Nine Months Ended May 25, 2002 (unaudited) and
          May 26, 2001
            (unaudited)...............................................      6

          Condensed Consolidated Statements of Cash Flows--
          For the Nine Months Ended May 25, 2002 (unaudited) and
          May 26, 2001
            (unaudited)...............................................      7

          Notes to Condensed Consolidated Financial Statements
          (unaudited).................................................     8-18

Item 2.   Management's Discussion and Analysis of Financial Condition     19-25
          and Results of Operations...................................

Item 3.   Quantitative and Qualitative Disclosures About Market
          Risk........................................................    25-26

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings...........................................      27

Item 2.   Changes in Securities and Use of Proceeds...................      27

Item 3.   Defaults Upon Senior Securities.............................      27

Item 4.   Submission of Matters to a Vote of Security Holders.........      27

Item 6.   Exhibits and Reports on Form 8-K............................      27

SIGNATURES............................................................      28
</Table>


                                       2
<Page>
PART I. FINANCIAL INFORMATION


    This amendment to the Quarterly Report on Form 10-Q for the period ended
May 25, 2002 includes restated unaudited condensed consolidated financial
statements reflecting (1) the Company changing its revenue recognition on
certain sales to independent sales representatives in order to comply with the
provisions of Securities and Exchange Commission Staff Accounting Bulletin
No. 101, Revenue Recognition in Financial Statements ("SAB101"), which should
have been adopted September 1, 2000, and (2) an income tax benefit related to a
net operating loss carryback attributable to one of the Company's subsidiaries,
which should have been recognized during the year ended August 25, 2001, as
discussed in Note 13 to the accompanying unaudited condensed consolidated
financial statements.



    The Company expects to issue restated consolidated financial statements for
the year ended August 25, 2001 upon filing of its Annual Report on Form 10-K for
the year ended August 31, 2002.


                                       3
<Page>
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES


                        AMERICAN ACHIEVEMENT CORPORATION
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                       (IN THOUSANDS, EXCEPT SHARE DATA)



<Table>
<Caption>
                                                              MAY 25, 2002
                                                              (UNAUDITED)    AUGUST 25, 2001
                                                              ------------   ---------------
                                                                (AS RESTATED--SEE NOTE 13)
<S>                                                           <C>            <C>
                                           ASSETS
Current assets:
  Cash and cash equivalents.................................    $  1,999        $  2,636
  Accounts receivable, net of allowance of $3,647 and
    $3,379..................................................      77,112          49,931
  Income tax receivable.....................................          --             776
  Inventories, net..........................................      27,669          26,672
  Prepaid expenses and other current assets.................      17,891          20,158
                                                                --------        --------
    Total current assets....................................     124,671         100,173

Property, plant and equipment, net of accumulated
  depreciation of $35,348 and $26,669.......................      64,345          64,842
Trademarks, net of accumulated amortization of $5,100 and
  $3,942....................................................      41,140          42,299
Goodwill, net of accumulated amortization of $14,676 and
  $11,655...................................................     144,739         147,497
Other assets, net of accumulated amortization of $4,800 and
  $4,487....................................................      30,483          30,160
                                                                --------        --------
    Total assets............................................    $405,378        $384,971
                                                                ========        ========
                            LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Bank overdraft............................................    $  5,159        $  4,243
  Accounts payable..........................................      17,225          11,018
  Customer deposits.........................................      35,625          24,180
  Accrued Expenses..........................................      29,227          21,877
  Deferred revenue..........................................       3,369           6,799
  Accrued interest..........................................       7,120           2,240
  Current portion of long-term debt.........................          --          12,900
                                                                --------        --------
    Total current liabilities...............................      97,725          83,257

Long-term debt, net of current portion......................     216,975         183,714
Bridge Notes due to Affiliates..............................          --          26,995
Other long-term liabilities.................................       3,793           4,527
                                                                --------        --------
    Total liabilities.......................................     318,493         298,493
Redeemable Minority Interest in Subsidiary..................      16,550          15,650
Commitments and contingencies
Stockholders' equity:
  Preferred stock, $.01 par value, 1,200,000 shares
    authorized (in total) Series A, 1,006,847 shares and
    1,001,347 shares issued and outstanding, respectively;
    liquidation preference of approximately $100,685 and
    $100,135, respectively..................................          10              10
  Common stock, $.01 par value, 1,250,000 shares authorized,
    809,351 shares issued and outstanding...................           8               8
  Additional paid-in capital................................      95,310          94,760
  Accumulated other comprehensive loss......................      (2,419)         (2,751)
  Accumulated deficit.......................................     (22,574)        (21,199)
                                                                --------        --------
    Total stockholders' equity..............................      70,335          70,828
                                                                --------        --------
    Total liabilities and stockholders' equity..............    $405,378        $384,971
                                                                ========        ========
</Table>


  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.

                                       4
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (IN THOUSANDS)
                                  (UNAUDITED)


<Table>
<Caption>
                                                              FOR THE THREE MONTHS ENDED
                                                              ---------------------------
                                                              MAY 25, 2002   MAY 26, 2001
                                                              ------------   ------------
                                                              (AS RESTATED--SEE NOTE 13)
<S>                                                           <C>            <C>
Net sales...................................................    $122,073       $114,596
Cost of sales...............................................      56,123         52,011
                                                                --------       --------
  Gross profit..............................................      65,950         62,585

Selling, general and administrative expenses................      41,385         39,315
                                                                --------       --------
  Operating income..........................................      24,565         23,270
Interest expense, net.......................................       7,175          5,957
Other expense...............................................          35             --
                                                                --------       --------
  Income before provision for income taxes..................      17,355         17,313
Provision for income taxes..................................       6,857          4,925
                                                                --------       --------
  Net income................................................      10,498         12,388
Preferred dividends.........................................        (300)          (300)
                                                                --------       --------
  Net income to common stockholders.........................    $ 10,198       $ 12,088
                                                                ========       ========
</Table>


  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.

                                       5
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (IN THOUSANDS)
                                  (UNAUDITED)


<Table>
<Caption>
                                                               FOR THE NINE MONTHS ENDED
                                                              ---------------------------
                                                              MAY 25, 2002   MAY 26, 2001
                                                              ------------   ------------
                                                              (AS RESTATED--SEE NOTE 13)
<S>                                                           <C>            <C>
Net sales...................................................    $248,655       $229,756
Cost of sales...............................................     113,403        109,219
                                                                --------       --------
  Gross profit..............................................     135,252        120,537
Selling, general and administrative expenses................     103,845         97,806
                                                                --------       --------
  Operating income..........................................      31,407         22,731
Interest expense, net.......................................      18,387         17,111
Other expense...............................................       2,644             --
                                                                --------       --------
  Income before provision for income taxes..................      10,376          5,620
Provision for income taxes..................................       5,589          2,064
                                                                --------       --------
  Income before extraordinary item and cumulative effect of
    change in accounting principle..........................       4,787          3,556

Extraordinary item:
Loss on early extinguishment of debt, net of tax benefit of
  $388......................................................       5,262             --

Cumulative effect of change in accounting principle.........          --          1,835
                                                                --------       --------
  Net (loss) income.........................................        (475)         1,721
Preferred dividends.........................................        (900)          (900)
                                                                --------       --------
  Net (loss) income to common stockholders..................    $ (1,375)      $    821
                                                                ========       ========
</Table>


  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.

                                       6
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                 (IN THOUSANDS)
                                  (UNAUDITED)


<Table>
<Caption>
                                                               FOR THE NINE MONTHS ENDED
                                                              ---------------------------
                                                              MAY 25, 2002   MAY 26, 2001
                                                              ------------   ------------
                                                              (AS RESTATED--SEE NOTE 13)
<S>                                                           <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income...........................................   $    (475)     $   1,721
  Adjustments to reconcile net (loss) income to net cash
    provided by operating activities
    Loss on early extinguishment of debt, net of tax
      benefit...............................................       5,262             --
    Cumulative effect of change in accounting principle.....          --          1,806
    Depreciation and amortization...........................      14,629         12,728
    Amortization of debt discount and deferred financing
      fees..................................................         991            905
    Unrealized gain on free-standing derivative.............         265             --
    Provision for doubtful accounts.........................         268            922
    Changes in assets and liabilities-
      Increase in accounts receivable.......................     (27,449)       (33,206)
      Increase in inventories...............................        (997)        (1,666)
      Decrease in prepaid expenses and other current
        assets..............................................       3,043          2,532
      Increase in other assets..............................         (93)        (2,160)
      Increase in customer deposits.........................      11,445         15,532
      (Decrease) Increase in deferred revenue...............      (3,430)         2,467
      Increase in bank overdraft, accounts payable, accrued
        expenses,
        and other long-term liabilities.....................      21,012          7,979
                                                               ---------      ---------
    Net cash provided by operating activities...............      24,471          9,560
                                                               ---------      ---------
CASH FLOWS FROM INVESTING ACTIVITIES;
  Purchases of property, plant and equipment................      (8,241)        (5,480)
  Sales of Publishing Segment...............................          --             47
  Acquisition of Educational Communications Inc., net of
    cash and cash equivalents acquired......................          --        (50,413)
                                                               ---------      ---------
    Net cash used in investing activities...................      (8,241)       (55,846)
                                                               ---------      ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from Senior Unsecured Notes, net of debt issue
    cost....................................................     166,612             --
  (Payments) Proceeds on term loan facility, net............    (121,400)        27,562
  Proceeds from issuance of preferred stock.................          --         16,000
  Revolver payments, net....................................     (33,696)         1,610
  Payment of bridge notes to affiliate......................     (28,383)            --
                                                               ---------      ---------
      Net cash (used in) provided by financing activities...     (16,867)        45,172
                                                               ---------      ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS...................        (637)        (1,114)
CASH AND CASH EQUIVALENTS, beginning of period..............       2,636          1,887
                                                               ---------      ---------
CASH AND CASH EQUIVALENTS, end of period....................   $   1,999      $     773
                                                               =========      =========
SUPPLEMENTAL DISCLOSURE
  Cash paid during the period for--
    Interest................................................   $  17,821      $  15,068
                                                               =========      =========
    Income taxes............................................   $   1,006      $     154
                                                               =========      =========
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
  Accrued preferred stock dividends.........................   $     900      $     900
                                                               =========      =========
  Issuance of stock in settlement of obligation.............   $     550             --
                                                               =========      =========
</Table>


  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.

                                       7
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                  (UNAUDITED)

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONSOLIDATION


    The condensed consolidated financial statements include the accounts of
American Achievement Corporation and its direct and indirect subsidiaries (the
"Company"). All significant intercompany accounts and transactions have been
eliminated in consolidation.


    The 11 5/8% Senior Unsecured Notes Due 2007 (the "Unsecured Notes") are
guaranteed by every direct and indirect domestic subsidiary of the Company. The
guarantees by the guarantor subsidiaries are full, unconditional, and joint and
several. All of the guarantor subsidiaries are wholly owned. American
Achievement Corporation is a holding company with no independent assets or
operations other than its investment in its subsidiaries.

    The accompanying condensed consolidated financial statements have been
prepared without audit pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes the disclosures are adequate to make
the information presented not misleading. In the opinion of management, all
adjustments (consisting only of normal recurring adjustments) necessary for a
fair presentation of the financial position and results of operations for the
periods presented have been included. Operating results for the nine months
ended May 25, 2002 are not necessarily indicative of the results that may be
expected for the fiscal year ending August 31, 2002.


    Effective August 27, 2000, the Company changed its accounting method for
recognizing revenue on certain sales to independent sales representatives, in
order to comply with the provisions of Securities and Exchange Commission Staff
Accounting Bulletin No. 101, Revenue Recognition in Financial Statements ("SAB
101"). Under SAB 101, the recognition of revenue and related gross profit on
sales to independent sales representatives, along with commissions to
independent sales representatives that are directly related to the revenue
should be deferred until the independent sales representative delivers the
product and title passes to the Company's end customer. Previously, the Company
recognized revenue from these transactions upon shipment of product to the
independent sales representative, net of estimates for possible returns and
allowances. The cumulative effect of the change in accounting principle resulted
in an increase of $1.8 million to the net loss for the nine months ended
May 26, 2001. This change had no impact on the Company's cash flows from
operations.



(2)  SIGNIFICANT ACQUISITIONS


    Effective March 30, 2001, Honors Acquisition Corporation, a wholly owned
subsidiary of the Company, purchased all the outstanding stock of Educational
Communications, Inc. ("ECI"), for a total purchase price of $58.7 million. The
acquisition of ECI was accounted for using the purchase method of accounting
and, accordingly, the purchase price has been allocated to assets acquired and
liabilities assumed based upon estimated fair values. Subsequent to the
transaction, Honors Acquisition Corporation was merged into the Company, and ECI
remained the surviving wholly owned subsidiary of the Company. ECI's primary
business is the sales and marketing of achievement publications of the specialty
directory publishing industry.

                                       8
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(2)  SIGNIFICANT ACQUISITIONS (CONTINUED)

    The estimated fair value of assets acquired and liabilities assumed relating
to the ECI acquisition, in accordance with accounting principles generally
accepted in the United States, is summarized below (in thousands):

<Table>
<S>                                                           <C>
Working capital.............................................  $ 5,534
Property, plant and equipment...............................      400
Other intangibles...........................................   17,240
Goodwill....................................................   35,492
Other long-term assets......................................       44
                                                              -------
                                                              $58,710
                                                              =======
</Table>

    Goodwill and other intangibles related to ECI are amortized on a
straight-line basis over their useful lives which range from three to 40 years.

    The Company incurred approximately $2.4 million in financing costs
associated with the purchase agreement. These costs have been capitalized and
are included in the accompanying condensed consolidated balance sheets as of
May 25, 2002 and August 25, 2001. These costs were subsequently written off in
connection with the early extinguishment of debt (see Note 4).

    As a result of this transaction, the consolidated financial statements of
the Company for the nine months ended May 25, 2002 include the results of
operations of ECI for the nine months ended May 25, 2002, while the condensed
consolidated financial statements of the Company for the nine months ended
May 26, 2001 include the results of operations of ECI for the period from
March 30, 2001, to May 26, 2001.

    The following unaudited pro forma data summarizes the results of operations
for the periods indicated as if the ECI acquisition had been completed as of the
beginning of the periods presented (in thousands):


<Table>
<Caption>
                                                               FOR THE NINE MONTHS ENDED
                                                              ---------------------------
                                                              MAY 25, 2002   MAY 26, 2001
                                                              ------------   ------------
                                                              (UNAUDITED)    (UNAUDITED)
<S>                                                           <C>            <C>
Net sales...................................................    $248,655       $245,644
Income before extraordinary items...........................       4,787          7,804
Net (loss) income to common stockholders....................      (1,375)         5,069
</Table>



(3)  COMPREHENSIVE INCOME (LOSS)


    Beginning in the fiscal year 2001, the effective portion of the loss on
derivatives and unrecognized losses on accrued minimum pension liabilities were
included in other comprehensive income (loss). The

                                       9
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(3)  COMPREHENSIVE INCOME (LOSS) (CONTINUED)

following amounts were included in determining the Company's comprehensive
income (loss) for the three and nine month periods ended May 25, 2002 and
May 26, 2001.


<Table>
<Caption>
                                               FOR THE THREE MONTHS ENDED     FOR THE NINE MONTHS ENDED
                                               ---------------------------   ---------------------------
                                               MAY 25, 2002   MAY 26, 2001   MAY 25, 2002   MAY 26, 2001
                                               ------------   ------------   ------------   ------------
<S>                                            <C>            <C>            <C>            <C>
Net income (loss)............................     $10,198        $12,088       $(1,375)        $  821
Adjustment in minimum pension liability......        (246)            --        (1,900)            --
Change in effective portion of derivative
  loss.......................................          --            401            --         (1,772)
Reclassification into earnings for derivative
  termination................................          --             --         2,232             --
                                                  -------        -------       -------         ------
Total comprehensive income (loss)............     $ 9,952        $12,489       $(1,043)        $ (951)
                                                  =======        =======       =======         ======
</Table>



(4)  INVENTORIES, NET


    A summary of inventories, net is as follows (in thousands):

<Table>
<Caption>
                                                            MAY 25, 2002   AUGUST 25, 2001
                                                            ------------   ---------------
<S>                                                         <C>            <C>
Raw materials.............................................     $ 8,357         $ 8,545
Work in process...........................................      12,512          10,293
Finished goods............................................       7,775           8,092
Less--Reserves............................................        (975)           (258)
                                                               -------         -------
                                                               $27,669         $26,672
                                                               =======         =======
</Table>

    Cost of sales includes depreciation and amortization of $6,060,000 and
$5,452,000 for the nine months ended May 25, 2002 and May 26, 2001,
respectively.


(5)  LONG-TERM DEBT


    Long-term debt consists of the following (in thousands):

<Table>
<Caption>
                                                            MAY 25, 2002   AUGUST 25, 2001
                                                            ------------   ---------------
<S>                                                         <C>            <C>
11 5/8% Senior unsecured notes due 2007...................    $175,520        $     --
11% Senior subordinated notes due 2007....................      41,355          41,355
Senior secured credit facility............................         100              --
Former senior credit facility:
  Revolving credit facility...............................          --          33,859
  Term Loan A.............................................          --          57,000
  Term Loan B.............................................          --          64,400
Bridge notes to affiliates................................          --          26,995
                                                              --------        --------
    Total debt............................................    $216,975        $223,609
Less: current portion.....................................          --          12,900
                                                              --------        --------
    Total long-term debt..................................    $216,975        $210,709
                                                              ========        ========
</Table>

                                       10
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(5)  LONG-TERM DEBT (CONTINUED)

11 5/8% SENIOR UNSECURED NOTES

    On February 20, 2002, the Company issued $177 million of senior unsecured
notes (the "Unsecured Notes") due in 2007. The Unsecured Notes bear interest at
a stated rate of 11 5/8%. The Unsecured Notes were issued at a discount of
0.872% resulting in net proceeds of approximately $175.5 million before
considering financing costs. The effective rate of the Unsecured Notes after
discount is approximately 11.87%. The Unsecured Notes rank pari passu with the
Company's existing and future senior indebtedness, including obligations under
the Company's Senior Secured Credit Facility (as defined below). The Unsecured
Notes are guaranteed by the Company's domestic subsidiaries, and the guarantees
rank pari passu with existing and future senior debt of the Company and its
subsidiaries. The Unsecured Notes and the guarantees on the Unsecured Notes are
effectively subordinated to any of the Company's secured debt.

    The Company may not redeem the Unsecured Notes until 2005, except that the
Company may redeem up to 35 percent of the Unsecured Notes before the third
anniversary of the issue date of the Unsecured Notes as long as (a) the Company
pays a certain percentage of the principal amount of the Unsecured Notes, plus
interest, (b) the Company redeems the Unsecured Notes within 90 days of
completing a public equity offering and (c) at least 65 percent of the aggregate
principal amount of the Unsecured Notes issued remains outstanding afterward.

    If a change in control, as defined in the indenture relating to the
Unsecured Notes (the "AAC Indenture"), occurs, the Company must give the holders
of the Unsecured Notes the opportunity to sell their Unsecured Notes to the
Company at 101 percent of the principal amount of the Unsecured Notes, plus
accrued interest.

    The Unsecured Notes contain customary negative covenants and restrictions on
actions by the Company and its subsidiaries including, without limitation,
restrictions on additional indebtedness, investments, asset dispositions outside
the ordinary course of business, liens, and transactions with affiliates, among
other restrictions (as defined in the AAC Indenture). In addition, the Unsecured
Notes contain covenants, which restrict the declaration or payment of dividends
by the Company and/or its subsidiaries (as defined in the AAC Indenture). The
Unsecured Notes also require that the Company meet certain financial covenants
including a minimum fixed charge coverage ratio (as defined in the AAC
Indenture). The Company was in compliance with the Unsecured Notes covenants as
of May 25, 2002.


11% SENIOR SUBORDINATED NOTES



    Commemorative Brands, Inc.'s ("CBI") 11% senior subordinated notes (the
"Subordinated Notes") mature on January 15, 2007. The Subordinated Notes are
redeemable at the option of CBI in whole or in part, at any time on or after
January 15, 2002, at specified redemption prices ranging from 105.5 percent of
the principal amount thereof if redeemed during 2002 and declining to
100 percent of the principal amount thereof if redeemed during the year 2005 or
thereafter, plus accrued and unpaid interest and Liquidated Damages as defined
in the indenture relating to the Subordinated Notes, as amended (the "CBI
Indenture"), if any, thereon to the date of redemption. The Company has not
redeemed any of the Subordinated Notes as of May 25, 2002.


                                       11
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(5)  LONG-TERM DEBT (CONTINUED)

    In the event of a Change of Control (as defined in the CBI Indenture), each
holder of the Subordinated Notes will have the right to require CBI to purchase
all or any part of such holder's Subordinated Notes at a purchase price in cash
equal to 101 percent of the aggregate principal amount thereof, plus accrued and
unpaid interest and Liquidated Damages, if any, thereon to the date of purchase.

    In the event of an Asset Sale (as defined in the CBI Indenture), CBI is
required to apply any Net Proceeds (as defined in the CBI Indenture) to
permanently reduce senior indebtedness, to acquire another business or long-term
assets or to make capital expenditures. To the extent such amounts are not so
applied within 365 days and the amount not applied exceeds $5.0 million, CBI is
required to make an offer to all holders of the Subordinated Notes to purchase
an aggregate principal amount of Subordinated Notes equal to such excess amount
at a purchase price in cash equal to 100 percent of the principal amount
thereof, plus accrued and unpaid interest and Liquidated Damages, if any,
thereon to the date of purchase.

    The Subordinated Notes contain certain covenants that, among other things,
limit the ability of CBI to engage in certain business transactions such as
mergers, consolidations or sales of assets that would decrease the value of CBI
or cause an event of default.

SENIOR SECURED CREDIT FACILITY

    In conjunction with the issuance of the Unsecured Notes, on February 20,
2002, the Company entered into a new $40 million senior revolving credit
facility (the "Senior Secured Credit Facility") with various financial
institutions, with all of the Company's current domestic subsidiaries as
guarantors. Loans made pursuant to the Senior Secured Credit Facility are
secured by a first priority security interest in substantially all of the
Company's and the Company's domestic subsidiaries' assets and in all of the
Company's domestic subsidiaries' capital stock.

    Availability under the Senior Secured Credit Facility is restricted to the
lesser of (1) $40 million or (2) the Borrowing Base Amount as defined in the
credit agreement under the Senior Secured Credit Facility (the "Credit
Agreement"). Availability under the Senior Secured Credit Facility as of
May 25, 2002 was approximately $38.6 million with $0.1 million borrowings
outstanding. The Senior Secured Credit Facility matures on February 20, 2006.


    Advances under the Senior Secured Credit Facility may be made as base rate
loans or LIBOR loans at the Company's election (except for the initial loans
which were base rate loans). Interest rates payable upon advances are based upon
the base rate or LIBOR depending on the type of loan the Company chooses, plus
an applicable margin based upon a consolidated leverage ratio of certain
outstanding indebtedness to EBITDA (to be calculated in accordance with the
terms specified in the Credit Agreement). The effective rate on borrowings for
the three and nine months ended May 25, 2002 was 8.5%.


    The Credit Agreement contains customary negative covenants and restrictions
on actions by the Company and its subsidiaries including, without limitation,
restrictions on indebtedness, declaration or payment of dividends, liens, and
the gold consignment agreement, among other restrictions. In addition, the
Credit Agreement requires that the Company meet certain financial covenants,
ratios and tests, including capital expenditure limits, a maximum secured
leverage ratio, a minimum interest coverage

                                       12
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(5)  LONG-TERM DEBT (CONTINUED)

ratio, and a minimum fixed charge coverage ratio. The Company was in compliance
with the Credit Agreement covenants as of May 25, 2002.

EARLY EXTINGUISHMENT OF DEBT

    In conjunction with the issuance of the Unsecured Notes and entrance into
the Senior Secured Credit Facility, the Company paid off the then outstanding
term loans and revolver under the former credit facility, the bridge notes to
affiliates and settled all but $25 million in notional amount of the interest
rate swap agreements. The Company recognized an extraordinary charge in
February 2002 of approximately $5.3 million, net of income tax benefit, relating
to the write-off of unamortized deferred financing costs and, due to the
termination and reclassification of interest rate swaps, the Company recorded a
charge to other expense for approximately $2.6 million.


    As a result of the early prepayment of certain debt obligations, the
remaining interest rate swap agreement representing a notional amount of
$25 million has been reclassified as a trading derivative to other current
liabilities. As such, any changes in the fair value of this derivative will
result in a mark-to-market adjustment of the carrying value with any changes
being reported to other income or loss. As of May 25, 2002, the fair value of
this derivative represented a liability of approximately $1.1 million.


GOLD CONSIGNMENT AGREEMENT

    Under the Company's gold consignment financing arrangement, the Company has
the ability to have on consignment the lowest of the dollar value of 27,000 troy
ounces of gold, $10.1 million or a borrowing base, determined based upon a
percentage of gold located at the Company's facilities and other approved
locations, as specified by the agreement. For the nine months ended May 25, 2002
and May 26, 2001, the Company expensed consignment fees of approximately
$186,000 and $162,600, respectively. Under the terms of the consignment
arrangement, the Company does not own the consigned gold nor does it have risk
of loss related to such inventory until the money is received by the bank from
the Company in payment for the gold purchased. Accordingly, the Company does not
include the value of consigned gold in its inventory or the corresponding
liability for financial statement purposes. As of May 25, 2002 and August 25,
2001, the Company held approximately 22,720 ounces and 14,620 ounces,
respectively, of gold valued at $7.3 million and $4.0 million, respectively, on
consignment from the bank.

    The Company's long-term debt outstanding as of May 25, 2002 matures as
follows (in thousands):

<Table>
<Caption>
FISCAL YEAR ENDING                                            AMOUNT MATURING
------------------                                            ---------------
<S>                                                           <C>
2003........................................................      $     --
2004........................................................            --
2005........................................................            --
2006........................................................           100
2007........................................................       216,875
Thereafter..................................................            --
                                                                  --------
                                                                  $216,975
                                                                  ========
</Table>

                                       13
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(5)  LONG-TERM DEBT (CONTINUED)

    The weighted average interest rate of debt outstanding as of May 25, 2002
and August 25, 2001 was 11.0% and 11.4%, respectively.

    The Company's management believes the carrying amount of long-term debt,
including the current maturities, approximates fair value as of May 25, 2002 and
August 25, 2001, based upon current rates offered for debt with the same or
similar debt terms.


(6)  COMMITMENTS AND CONTINGENCIES


LEASES

    Certain Company facilities and equipment are leased under agreements
expiring at various dates through 2008.

CONTRACTS WITH SALES REPRESENTATIVES

    The Company is a party to certain contracts with some of its independent
sales representatives whereby the independent sales representatives have
purchased from their predecessors the right to sell the Company's products in a
territory. The contracts generally provide that the value of those rights is
primarily determined by the amount of business achieved by a successor
independent sales representative and is therefore not determinable in advance of
performance by the successor independent sales representative.

PENDING LITIGATION

    The Company is not a party to any pending legal proceedings other than
ordinary routine litigation incidental to its business. In management's opinion,
adverse decisions on legal proceedings, in the aggregate, would not have a
materially adverse impact on the Company's results of operations or financial
position.


(7)  INCOME TAXES



    For the nine months ended May 25, 2002 and May 26, 2001, the company
recorded an income tax provision of $5,589,000 and $2,064,000, respectively,
which represents an effective tax rate of 54% and 37%, respectively, on income
before extraordinary items and cumulative effect of change in accounting
principle. The Company's effective tax rate relates to the expected annual
benefits from the net operating loss carryback generated in years ending
August 31, 2002 and August 25, 2001 attributable to Taylor Senior Holding Corp
(THSC) as a percentage of the Company's expected annual pretax loss from
continuing operations. No net federal income tax benefit is reflected in the
income statement for net operating losses to be carried forward since
realization of the potential benefit of net operating loss carry-forwards is not
considered to be more likely than not.



(8)  STOCKHOLDERS' EQUITY



    During the nine months ended May 25, 2002, 5,500 shares of the Series A
Preferred Stock of the Company were issued to an executive pursuant to a bonus
provided for in fiscal 2001. In the event of any liquidation, dissolution or
winding up of the Company, the holders of the Series A Preferred Stock are
entitled to receive payment of the liquidation value of $100 per share plus any
accrued and unpaid


                                       14
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(8)  STOCKHOLDERS' EQUITY (CONTINUED)

dividends prior to the payment of any distributions to the holders of the Common
Stock of the Company. The liquidation preference of the Series A Preferred Stock
totaled approximately $100,685,000 and $100,135,000 at May 25, 2002, and
August 25, 2001, respectively.

STOCK-BASED COMPENSATION

    During the nine months ended May 25, 2002, the Company issued an option to
purchase 12,500 shares of Company Common Stock at fair market value to an
executive. The terms of the option are the same as provided for in the Company's
2000 Stock Option Plan, with the exception that the option vested on the date of
grant.


    Incentive stock options for 69,853 shares and 28,984 shares and nonqualified
stock options for 2,230 and 1,874 shares of the Company's Common Stock were
outstanding as of May 25, 2002, and August 25, 2001, respectively.


    Pursuant to an employment agreement entered into between the Company and its
chief executive officer in July 1999, and as amended as of February 1, 2002, if
the Company achieves a certain consolidated EBITDA target, as defined by the
agreement, for the fiscal years commencing with fiscal 2002 and ending in fiscal
2004, the chief executive officer is entitled to receive up to a total of
$1 million in face value of the Company's Series A Preferred Stock during the
period. As of May 25, 2002, the Company has accrued approximately $225,000
related to the employment agreement.


(9)  RELATED-PARTY TRANSACTIONS



    The Company entered into a management agreement on March 30, 2001 with
Castle Harlan, Inc. (the "Manager"), pursuant to which the Manager agreed to
provide business and organization strategy, financial and investment management
and merchant and investment banking services to the Company and its
subsidiaries. The Company has agreed to indemnify the Manager against
liabilities, costs, charges and expenses relating to the Manager's performance
of its duties, other than such of the foregoing resulting from the Manager's
gross negligence or willful misconduct. The agreement is for a term of
10 years, renewable automatically from year to year unless Castle Harlan
Partners III, L.P. or Castle Harlan Partners II, L.P., affiliates of the
Manager, shall own less than 5 percent of the then outstanding capital stock of
the Company. Beginning fiscal year 2002, the Company is required to pay a
management fee equal to $3,000,000, unless otherwise prohibited by the Company's
Credit Agreement. The Company was subject to a similar management agreement with
the Manager, which was signed on July 27, 2000, and an agreement signed on
December 16, 1996. Amounts paid under all management agreements totaled
approximately $750,000 and $325,000 for the three months ended May 25, 2002 and
May 26, 2001, respectively and $1,825,000 and $650,000 for the nine months ended
May 25, 2002 and May 26, 2001, respectively. As of May 25, 2002 and August 25,
2001, the Company had accrued management fees of approximately $750,000 and
$688,000, respectively. Included in deferred financing costs for the ECI
acquisition is approximately $557,000 of management fees.



    In connection with the ECI acquisition, the Company has a receivable from
the Castle Harlan group relating to the acquisition expenses, along with other
reimbursible expenses which was to be reimbursed to the Company. The amount of
such receivable was approximately $58,000 and $179,000 as of May 25, 2002 and
August 25, 2001, respectively.


                                       15
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(9)  RELATED-PARTY TRANSACTIONS (CONTINUED)

    In conjunction with the issuance of the Unsecured Notes and entrance into
the Senior Secured Credit Facility (See Note 4), the Company paid off its bridge
notes to affiliates.


(10)  BUSINESS SEGMENTS


    The Company operates in two reportable business segments: scholastic
products, and recognition and affinity products. The principal products sold in
the scholastic segment are class rings, yearbooks and graduation products, which
include fine paper products and graduation accessories. The scholastic segment
primarily serves the high school and college markets. The recognition and
affinity segment includes publications that recognize the academic achievement
of top students at the high school and college levels, jewelry commemorating
family events, fan affinity jewelry and related products, and professional
sports championship rings.


<Table>
<Caption>
                                                                           RECOGNITION
                                                                               AND
                                                              SCHOLASTIC    AFFINITY      TOTAL
                                                              ----------   -----------   --------
<S>                                                           <C>          <C>           <C>
Three Months Ended May 26, 2001
  Net sales.................................................   $110,417      $ 4,179     $114,596
  Interest expense, net.....................................      4,761        1,196        5,957
  Depreciation and amortization.............................      3,930          866        4,796
  Segment operating income (loss)...........................     24,378       (1,108)      23,270
  Capital expenditures......................................      1,555          173        1,728
  Segment assets............................................    313,091       92,112      405,203

Three Months Ended May 25, 2002
  Net sales.................................................   $115,980      $ 6,093     $122,073
  Interest expense, net.....................................      5,557        1,618        7,175
  Depreciation and amortization.............................      3,977        1,077        5,054
  Segment operating income (loss)...........................     25,050         (485)      24,565
  Capital expenditures......................................      4,054          451        4,505
  Segment assets............................................    315,067       90,311      405,378

Nine months ended May 26, 2001
  Net sales.................................................   $212,614      $17,142     $229,756
  Interest expense, net.....................................     14,800        2,311       17,111
  Depreciation and amortization.............................     11,069        1,659       12,728
  Segment operating income (loss)...........................     24,621       (1,890)      22,731
  Capital expenditures......................................      4,932          548        5,480
  Segment assets............................................    313,091       92,112      405,203

Nine months ended May 25, 2002
  Net sales.................................................   $218,053      $30,602     $248,655
  Interest expense, net.....................................     13,742        4,645       18,387
  Depreciation and amortization.............................     11,454        3,175       14,629
  Segment operating income..................................     25,940        5,467       31,407
  Capital expenditures......................................      7,417          824        8,241
  Segment assets............................................    315,067       90,311      405,378
</Table>


    The Company's reportable segments are strategic business units that offer
products to different consumer segments. Each segment is managed separately
because each business requires different

                                       16
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(10)  BUSINESS SEGMENTS (CONTINUED)

marketing strategies. The Company evaluates the performance of each segment
based on the profit or loss from operations before income taxes, excluding
nonrecurring gains or losses.


(11)  REGISTRATION WITH SECURITIES AND EXCHANGE COMMISSION


    On March 14, 2002, the Company filed a registration statement on Form S-4
(Commission File No. 333-84294) with the Securities and Exchange Commission (the
"Registration Statement"), relating to the offer to exchange $177 million of the
Company's 11 5/8% Senior Notes due 2007, Series B (the "New Notes") for any and
all outstanding Unsecured Notes. The terms of the New Notes and the Unsecured
Notes are identical, except that the New Notes have been registered under the
Securities Act of 1933, as amended. References elsewhere herein to the Unsecured
Notes include the New Notes. The Registration Statement was declared effective
on April 8, 2002 and the exchange offer was completed on May 16, 2002.


(12)  NEW ACCOUNTING PRONOUNCEMENTS



    In June 2001, the Financial Accounting Standards Board issued SFAS No. 141,
"Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets." SFAS No. 141 requires that all business combinations initiated
subsequent to June 30, 2001, be accounted for under the purchase method of
accounting. The pooling-of-interests method is no longer allowed. Under SFAS
No. 142, goodwill and intangible assets with indefinite lives are no longer
amortized but are reviewed annually (or more frequently if impairment indicators
arise) for impairment. Separable intangible assets that are not deemed to have
indefinite lives will continue to be amortized over their useful lives (but with
no maximum life).



    The Company will adopt SFAS No. 142 beginning on September 1, 2002, the
first day of fiscal year 2003. The Company is evaluating the impact of the
adoption of these standards and has not yet determined the effect of adoptions
on its financial position and results of operations. The impact of adoption may
be material. Upon adoption of these standards, goodwill amortization will cease
and certain intangibles such as workforce in place will be reclassified into
goodwill.


    In August 2001, the Financial Accounting Standards Board released SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS
No. 144 establishes a single accounting model, based upon the framework
established in SFAS No. 121, for long-lived assets to be disposed of by sale.
SFAS No. 144 broadens the presentation of discontinued operations to include
more disposal transactions, and also provides additional implementation guidance
with SFAS No. 121. SFAS No. 144 is effective for fiscal years beginning after
December 15, 2001. The Company anticipates adopting SFAS No. 144 effective
September 1, 2002, and does not expect the adoption to have a material impact on
its financial position and results of operations.


    In April 2002, the Financial Accounting Standards Board issued SFAS
No. 145, RECISSION OF FASB STATEMENTS NO. 4, 44 AND 64, AMENDMENT OF FASB
STATEMENT NO. 13, AND TECHNICAL CORRECTIONS, which rescinds SFAS No. 4,
Reporting Gains and Losses from Extinguishments of Debt, and an amendment of
that Statement SFAS No. 64, Extinguishments of Debt Made to Satisfy Sinking-Fund
Requirements. The Statement also rescinds SFAS No. 44, Accounting for Intangible
Assets of Motor Carriers. The Statement amends SFAS No. 13, Accounting for
Leases, to eliminate an inconsistency between the required accounting for
sale-leaseback transactions and the required accounting for certain lease


                                       17
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                  (UNAUDITED)


(12)  NEW ACCOUNTING PRONOUNCEMENTS (CONTINUED)

modifications that have economic effects that are similar to sale-leaseback
transactions. The Company will adopt SFAS No. 145 in September 2002 and does not
expect this adoption to have a material effect on the financial statements,
except for the reclassification of the extraordinary item, loss on early
extinguishments of debt.


(13)  RESTATEMENT OF FINANCIAL STATEMENTS



    Subsequent to the issuance of its consolidated financial statements as of
and for the three and six month periods ended February 23, 2002, management of
the Company determined that a change in its revenue recognition policy for
recognizing revenue on certain sales to representatives should have been made as
of August 27, 2000, in order to comply with the provisions of SAB 101, and that
a 2001 income tax benefit related to the net operating loss carryback
attributable to one of the Company's subsidiaries, Taylor Senior Holding Corp,
should have been recognized during the year ended August 25, 2001. Such
adjustment resulted in a reduction of $1.6 million to the net loss. As a result,
the accompanying condensed consolidated financial statements have been restated
from the amounts previously reported.



    A summary of the significant effects of the restatement is as follows (in
thousands):



<Table>
<Caption>
                                                       AUGUST 25, 2001                MAY 25, 2002
                                                 ---------------------------   ---------------------------
                                                 AS PREVIOUSLY                 AS PREVIOUSLY
                                                   REPORTED      AS RESTATED     REPORTED      AS RESTATED
                                                 -------------   -----------   -------------   -----------
<S>                                              <C>             <C>           <C>             <C>
Prepaids and other assets......................    $ 15,916        $ 20,158      $ 17,688        $ 17,891
Refundable income taxes........................          --           1,576         1,576           1,576
Total assets...................................     379,953         385,771       406,751         406,954
Deferred revenue...............................          --           6,799         3,219           3,369
Accumulated deficit............................     (20,218)        (21,199)      (22,658)        (22,574)
Stockholders equity............................      71,809          70,828        70,251          70,335
</Table>



<Table>
<Caption>
                                                    FOR THE THREE MONTHS        FOR THE NINE MONTHS ENDED
                                                     ENDED MAY 25, 2002               MAY 25, 2002
                                                 ---------------------------   ---------------------------
                                                 AS PREVIOUSLY                 AS PREVIOUSLY
                                                   REPORTED      AS RESTATED     REPORTED      AS RESTATED
                                                 -------------   -----------   -------------   -----------
<S>                                              <C>             <C>           <C>             <C>
Net sales......................................    $121,541        $122,073      $248,946        $248,655
Cost of sales..................................      56,163          56,123       113,670         113,403
Gross profit...................................      65,378          65,950       135,276         135,252
Selling, general and administrative expenses...      40,972          41,385       103,842         103,845
(Provision) benefit for income taxes...........      (6,888)         (6,857)       (5,620)         (5,589)
Net income (loss)..............................      10,308          10,498          (479)           (475)
</Table>



<Table>
<Caption>
                                                    FOR THE THREE MONTHS        FOR THE NINE MONTHS ENDED
                                                     ENDED MAY 26, 2001               MAY 26, 2001
                                                 ---------------------------   ---------------------------
                                                 AS PREVIOUSLY                 AS PREVIOUSLY
                                                   REPORTED      AS RESTATED     REPORTED      AS RESTATED
                                                 -------------   -----------   -------------   -----------
<S>                                              <C>             <C>           <C>             <C>
Net Sales......................................    $114,524        $114,596      $229,011        $229,756
Cost of Sales..................................      51,957          52,011       108,639         109,219
Gross profit...................................      62,567          62,585       120,372         120,537
Selling, general and administrative............      39,031          39,315        97,460          97,806
(Provision) benefit for income taxes...........      (4,934)         (4,925)       (2,073)         (2,064)
Cumulative effect of change in accounting
  principle....................................          --              --        (1,806)         (1,835)
</Table>



<Table>
<S>                                              <C>             <C>           <C>             <C>
Net income.....................................      12,645          12,388         1,922           1,721
</Table>


                                       18
<Page>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
  OF OPERATIONS

    The following discussion of our consolidated financial condition and results
of operations should be read in conjunction with the information contained in
our consolidated financial statements and the notes thereto. The following
discussion includes forward-looking statements that involve certain risks and
uncertainties. See "Disclosure Regarding Forward-Looking Statements."


RESTATEMENT



    As discussed in Note 13, the unaudited condensed consolidated financial
statements in this amendment to the Quarterly Report on Form 10-Q for the period
ended May 25, 2002 have been restated.



    The Company's Management Discussion and Analysis has been revised to reflect
the effects of this restatement.


OVERVIEW

    We are one of the leading manufacturers and suppliers of class rings,
yearbooks, academic achievement publications and recognition and affinity
jewelry in the United States. Our two principal business segments are:
scholastic products and recognition and affinity products. The scholastic
products segment serves the high school, college and, to a lesser extent, the
elementary and junior high school markets and accounted for approximately 87.7%
of our net sales for the Nine Months Ended May 25, 2002. Our scholastic products
segment consists of three principal categories: class rings, yearbooks and
graduation products, the last of which includes fine paper products and
graduation accessories.

    The recognition and affinity products segment accounted for approximately
12.3% of our net sales for the Nine Months Ended May 25, 2002. This segment
provides, among other things, publications that recognize the academic
achievement of top students at the high school and college levels, as well as
the nation's most inspiring teachers, jewelry commemorating family events such
as the birth of a child, fan affinity jewelry and related products and
professional sports championship rings such as World Series rings.

COMPANY BACKGROUND

    Commemorative Brands, Inc. ("CBI") was initially formed by Castle Harlan
Partners II, L.P. ("CHPII"), a private equity investment fund, in March 1996 for
the purpose of acquiring substantially all of the ArtCarved operations of CJC
Holdings, Inc. and the Balfour operations of L. G. Balfour Company, Inc. These
acquisitions were consummated on December 16, 1996. Until such date, CBI engaged
in no business activities other than in connection with the completion of the
acquisitions and the financing thereof.

    Our Company was formed on June 27, 2000 to serve as a holding company for
the CBI operations and future acquisitions. Upon formation, each share of CBI's
issued and outstanding common stock was converted into one share of our common
stock, and each share of CBI's issued and outstanding series B preferred stock
was converted into one share of our Series A Preferred Stock. The original
holders of CBI's series A preferred stock continued to hold such shares. We
changed our name from Commemorative Brands Holding Corporation to American
Achievement Corporation on January 23, 2002.

    TAYLOR ACQUISITION.  On February 11, 2000, Castle Harlan Partners III, L.P.
("CHPIII"), one of our stockholders and an affiliate of CHPII, acquired Taylor,
whose primary business is the designing and printing of student yearbooks. On
July 27, 2000, we acquired all issued and outstanding shares of Taylor Senior
Holding Corp ("TSHC"), Taylor's parent, through the issuance of 320,929 shares
of our

                                       19
<Page>
common stock and 393,482 shares of our series A preferred stock (the "Taylor
Acquisition"). The Taylor Acquisition was accounted for under the purchase
method of accounting.


    ECI ACQUISITION.  On March 30, 2001, we acquired all of the capital stock of
ECI for a purchase price of approximately $58.7 million (the "ECI Acquisition").
ECI has been in the academic achievement publication business since 1967 and
publishes such well-known titles as, Who's Who Among American High School
Students, The National Dean's List and Who's Who Among America's Teachers. The
ECI Acquisition was accounted for under the purchase method of accounting. As a
result of this transaction, our consolidated financial statements for the Nine
Months Ended May 25, 2002 include the results of operations for ECI for the Nine
Months Ended May 25, 2002, while our consolidated financial statements for the
Nine Months Ended May 26, 2001 include the results of operations for the period
from March 30, 2001 to May 26, 2001.


RESULTS OF OPERATIONS

    The following table sets forth selected information from our condensed
consolidated statements of operations expressed on an actual basis and as a
percentage of net sales.


<Table>
<Caption>
                                              THREE MONTHS ENDED                           NINE MONTHS ENDED
                                   -----------------------------------------   -----------------------------------------
                                      MAY 25, 2002          MAY 26, 2001          MAY 25, 2002          MAY 26, 2001
                                   -------------------   -------------------   -------------------   -------------------
                                              % OF NET              % OF NET              % OF NET              % OF NET
                                    ACTUAL     SALES      ACTUAL     SALES      ACTUAL     SALES      ACTUAL     SALES
                                   --------   --------   --------   --------   --------   --------   --------   --------
<S>                                <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
Net sales........................  $122,073    100.0%    $114,596    100.0%    $248,655     100.0 %  $229,756    100.0%
Cost of sales....................    56,123     46.0%      52,011     45.4%     113,403      45.6 %   109,219     47.5%
                                   --------    -----     --------    -----     --------    ------    --------    -----
  Gross profit...................    65,950     54.0%      62,585     54.6%     135,252      54.4 %   120,537     52.5%
Selling, general and
  administrative expenses........    41,385     33.9%      39,315     34.3%     103,845      41.8 %    97,806     42.6%
                                   --------    -----     --------    -----     --------    ------    --------    -----
Operating income.................    24,565     20.1%      23,270     20.3%      31,407      12.6 %    22,731      9.9%
Interest expense, net............     7,175      5.9%       5,957      5.2%      18,387       7.4 %    17,111      7.4%
Other expense....................        35      0.0%          --      0.0%       2,644       1.1 %        --      0.0%
                                   --------    -----     --------    -----     --------    ------    --------    -----
  Income before taxes............    17,355     14.2%      17,313     15.1%      10,376       4.2 %     5,620      2.4%
Provision for income taxes.......     6,857      5.6%       4,925      4.3%       5,589       2.3 %     2,064      0.9%
Loss on extinguishments of
  debt...........................        --      0.0%          --      0.0%       5,262       2.1 %        --      0.0%
Cumulative effect of change in
  accounting principle...........        --      0.0%          --      0.0%          --       0.0 %     1,835      0.8%
                                   --------    -----     --------    -----     --------    ------    --------    -----
Net income (loss)................  $ 10,498      8.6%    $ 12,388     10.8%    $   (475)      0.2 %  $  1,721      0.8%
                                   ========    =====     ========    =====     ========    ======    ========    =====
</Table>


THREE MONTHS ENDED MAY 25, 2002 COMPARED WITH THREE MONTHS ENDED MAY 26, 2001.


    NET SALES.  Net sales consist of product sales and are net of product
returns and promotional discounts. Net sales increased $7.5 million, or 6.5%, to
$122.1 million for the Three Months Ended May 25, 2002 from $114.6 million for
the Three Months Ended May 26, 2001. This increase in net sales was due
primarily to timing of shipments.


    The following details the changes in net sales during such periods by
business segment.


    SCHOLASTIC PRODUCTS.  Net sales increased $5.6 million to $116.0 million for
the Three Months Ended May 25, 2002 from $110.4 million for the Three Months
Ended May 26, 2001. The increase in net sales was the result of a $5.6 million
timing difference from yearbook shipments, college ring shipments, and high
school ring deliveries made by our independent sales representatives.


    RECOGNITION AND AFFINITY PRODUCTS.  Net sales increased $1.9 million to
$6.1 million for the Three Months Ended May 25, 2002 from $4.2 million for the
Three Months Ended May 26, 2001. The

                                       20
<Page>
increase was primarily the result of a $1.3 million increase in sales of
personalized family jewelry for Mother's Day.   The remaining increase was made
up of collateral sales related to the ECI teacher's publication and other
specialty products.


    GROSS PROFIT.  Gross margin represents gross profit as a percentage of net
sales. Gross margin was 54.0% for the Three Months Ended May 25, 2002, a
0.6 percentage point decrease from 54.6% for the Three Months Ended May 26,
2001. The decrease was the result of a combination of a decrease in class ring
margins due to cost per unit increases in labor and material as well as a shift
in metal mix from precious to nonprecious, and a decrease in yearbook margins
due to increased labor costs as a result of difficulties associated with the
implementation of new technology. A portion of the decline in gross margins was
offset by more favorable gross margins in graduation products.



    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.  Selling, general and
administrative expenses increased $2.1 million, or 5.3%, to $41.4 million for
the Three Months Ended May 25, 2002 from $39.3 million for the Three Months
Ended May 26, 2001. Included in selling, general and administrative expenses are
two sub-categories: selling and marketing expenses and general and
administrative expenses. Selling and marketing expenses increased $2.0 million
to $31.7 million or 26.0% of net sales, for the Three Months Ended May 25, 2002
from $29.8 million or 26.0% of net sales, for the Three Months Ended May 26,
2001. General and administrative expenses for the Three Months Ended May 25,
2002 were $9.7 million, or 7.9% of net sales, as compared to $9.6 million, or
8.4% of net sales, for the Three Months Ended May 26, 2001. The decrease in
General and Administrative expenses as a percentage of sales is a result of
continued synergy savings as a result of the Taylor Acquisition partially offset
by increased medical expenses.



    OPERATING INCOME.  As a result of the foregoing, operating income was
$24.6 million, or 20.1% of net sales, for the Three Months Ended May 25, 2002 as
compared with operating income of $23.3 million, or 20.3% of net sales, for the
Three Months Ended May 26, 2001. The scholastic products segment reported
operating income of $25.1 million for the Three Months Ended May 25, 2002 as
compared with $24.4 million for the Three Months Ended May 26, 2001. The
recognition and affinity products segment reported an operating loss of
$0.5 million for the Three Months Ended May 25, 2002 as compared with an
operating loss of $1.1 million for the Three Months Ended May 26, 2001.


    INTEREST EXPENSE, NET.  Net interest expense was $7.2 million for the Three
Months Ended May 25, 2002 and $6.0 million for the Three Months Ended May 26,
2001. The average debt outstanding for the Three Months Ended May 25, 2002 and
the Three Months Ended May 26, 2001 was $228 million and $200 million,
respectively. The weighted average interest rate of debt outstanding for the
Three Months Ended May 25, 2002 and the Three Months Ended May 26, 2001 was
12.4% and 11.8%, respectively.


    OTHER EXPENSE.  Other expense was $35,000 for the Three Months Ended
May 25, 2002. The $35,000 was a result of changes in the fair value of an
interest rate swap agreement representing a notional amount of $25.0 million
classified as trading derivative. As of May 25, 2002, the fair value of this
derivative represented a liability of approximately $1.1 million.



    PROVISION (BENEFIT) FOR INCOME TAXES.  For the Three Months Ended May 25,
2002 and May 26, 2001, the Company recorded an income tax provision of
$6,857,000 and $4,925,000, respectively, which represents an effective tax rate
of 54% and 37%, respectively, on income before extraordinary items and
cumulative effect of change in accounting principles. The Company's effective
tax rate relates to the expected annual benefits from the net operating loss
carryback generated in years ending August 31, 2002 and August 25, 2001
attributable to Taylor Senior Holding Corp (THSC) as a percentage of the
Company's expected annual pretax loss from continuing operations. No net federal
income tax benefit is reflected in the income statement for net operating losses
to be carried forward


                                       21
<Page>

since realization of the potential benefit of net operating loss carry-forwards
is not considered to be more likely than not.



    NET INCOME.  As a result of the foregoing, we reported net income of
$10.5 million for the Three Months Ended May 25, 2002 as compared to net income
of $12.4 million for the Three Months Ended May 26, 2001.


NINE MONTHS ENDED MAY 25, 2002 COMPARED WITH NINE MONTHS ENDED MAY 26, 2001.


    NET SALES.  Net sales increased $18.9 million, or 8.2%, to $248.7 million
for the Nine Months Ended May 25, 2002, from $229.8 million for the Nine Months
Ended May 26, 2001. The increase was due primarily to the inclusion of
$14.5 million of net sales from ECI, which we acquired on March 30, 2001, and an
increase in sales of other product lines.



    SCHOLASTIC PRODUCTS.  Net sales increased $5.4 million, or 2.6% to
$218.1 million for the Nine Months Ended May 25, 2002 from $212.6 million for
the Nine Months Ended May 26, 2001. The increase was due primarily to increased
unit volume of in-store high school ring sales and in-school high school ring
sales of $2.5 million and a $2.2 million increase in the in-school high school
segment of graduation products. The remaining increase is due to timing of
college rings and yearbooks.


    RECOGNITION AND AFFINITY PRODUCTS.  Net sales increased $13.5 million to
$30.6 million for the Nine Months Ended May 25, 2002 from $17.1 million for the
Nine Months Ended May 26, 2001. The increase was primarily the result of
$14.5 million of net sales attributable to ECI. The increase was partially
offset by a decline in lower sales of affinity and sports jewelry.


    GROSS PROFIT.  Gross margin was 54.4% for the Nine Months Ended May 25,
2002, a 1.9 percentage point increase from 52.5% for the Nine Months Ended
May 26, 2001. The gross margin increase for the Nine Months Ended May 25, 2002
primarily the result of the inclusion of the ECI operations for this period.
Excluding ECI, gross margin would have been 52.7% for the Nine Months Ended
May 25, 2002 and May 26, 2001.



    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.  Selling, general and
administrative expenses increased $6.0 million, or 6.2%, to $103.8 million for
the Nine Months Ended May 25, 2002 from $97.8 million for the Nine Months Ended
May 26, 2001. As a percentage of net sales, however, selling, general and
administrative expenses decreased 0.8 percentage points for the Nine Months
Ended May 25, 2002 compared with the nine months ended May 26, 2001. Included in
selling, general and administrative expenses are two sub-categories: selling and
marketing expenses and general and administrative expenses. Selling and
marketing expenses increased $4.6 million to $74.2 million, or 29.8% of net
sales, for the Nine Months Ended May 25, 2002 from $69.6 million, or 30.3% of
net sales, for the Nine Months Ended May 26, 2001. Excluding ECI, selling and
marketing expenses would have been 30.5% of net sales as compared to 30.3% of
net sales for the Nine Months Ended May 26, 2001. General and administrative
expenses for the Nine Months Ended May 25, 2002 were $29.7 million, or 11.9% of
net sales, as compared to $28.2 million, or 12.3% of net sales, for the Nine
Months Ended May 26, 2001. Excluding ECI, general and administrative expenses
for the Nine Months Ended May 25, 2002 would have been $26.3 million or 11.2% of
net sales, a 0.7 percentage point decrease from the Nine Months Ended May 26,
2001. This decrease in general and administrative expenses was a result of
synergy savings realized from the Taylor Acquisition partially offset by
increased medical expenses.



    OPERATING INCOME.  As a result of the foregoing, operating income was
$31.4 million, or 12.6% of net sales, for the Nine Months Ended May 25, 2002 as
compared with $22.7 million, or 9.9% of net sales, for the Nine Months Ended
May 26, 2001. The scholastic products segment reported operating income of
$25.9 million for the Nine Months Ended May 25, 2002 and $24.6 million for the
Nine Months Ended May 26, 2001. The recognition and affinity products segment
reported operating income


                                       22
<Page>

of $5.5 million for the Nine Months Ended May 25, 2002 as compared with an
operating loss of $1.9 million for the Nine Months Ended May 26, 2001. The
increase in the recognition and affinity product segment was due to the
inclusion of $6.1 million of operating income from ECI, which was acquired on
March 30, 2001.



    OTHER EXPENSE.  Other expense was $2.6 million for the Nine Months Ended
May 25, 2002. The $2.6 million was a result of the termination and
reclassification of the interest rate swaps that occurred in conjunction with
the issuance of the Unsecured Notes and the Senior Secured Credit Facility on
February 20, 2002. The remaining interest rate swap agreement representing a
notional amount of $25 million has been classified as a trading derivative. As
such, any changes in the fair value of this derivative will result in a
mark-to-market adjustment of the carrying value with any changes being reported
to other income or loss. As of May 25, 2002, the fair value of this derivative
represented a liability of approximately $1.1 million.


    INTEREST EXPENSE, NET.  Net interest expense was $18.4 million for the Nine
Months Ended May 25, 2002 and $17.1 million for the Nine Months Ended May 26,
2001. The average debt outstanding for the Nine Months Ended May 25, 2002 and
the Nine Months Ended May 26, 2001 was $220 million and $193 million,
respectively. The weighted average interest rate of debt outstanding for the
Nine Months Ended May 25, 2002 and the Nine Months Ended May 26, 2001 was 11.0%
and 11.7% respectively.


    PROVISION/(BENEFIT) FOR INCOME TAXES.  For the Nine Months Ended May 25,
2002 and May 26, 2001, the Company recorded an income tax provision of
$5,589,000 and $2,064,000, respectively, which represents an effective tax rate
of 54% and 37%, respectively, on income before extraordinary items and
cumulative effect of change in accounting principle. The Company's effective tax
rate relates to the expected annual benefits from the net operating loss
carryback generated in years ending August 31, 2002 and August 25, 2001
attributable to Taylor Senor Holding Corp (THSC) as a percentage of the
Company's expected annual pretax loss from continuing operations. No net federal
income tax benefit is reflected in the income statement for net operating losses
to be carried forward since realization of the potential benefit of net
operating loss carry-forwards is not considered to be more likely than not.


    LOSS ON EXTINGUISHMENTS OF DEBT.  In conjunction with the issuance of the
Unsecured Notes and the Senior Secured Credit Facility on February 20, 2002, the
Company paid off the then outstanding term loans and revolver under the former
credit facility and bridge notes to affiliates. As a result, a loss of
$5.3 million, net of tax benefit, was recognized relating to the write-off of
unamortized deferred financing costs.


    CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE.  The cumulative effect
of change in accounting principle, representing a loss of $1.8 million, was
recorded due to the adoption of SAB 101 as of August 27, 2000. See Note 13 to
condensed consolidated financial statements included in Item 1.



    NET INCOME.  As a result of the foregoing, we reported a net loss of
$0.5 million for the Nine Months Ended May 25, 2002 as compared to net income of
$1.7 million for the Nine Months Ended May 26, 2001.


SEASONALITY

    The Company's scholastic product sales tend to be seasonal. Class ring sales
are highest during October through December (which overlaps the Company's first
and second fiscal quarters), when students have returned to school after the
summer recess and orders are taken for class rings for delivery to students
before the winter holiday season. Sales of the Company's fine paper products are
predominantly made during February through April (which overlaps the Company's
second and third fiscal quarters) for graduation in May and June. The Company
has historically experienced operating losses during the period of the Company's
fourth fiscal quarter, which includes the summer months

                                       23
<Page>
when school is not in session, thus reducing related shipment of products.
Yearbook sales are highest during the months of May through June, as yearbooks
are typically shipped to schools prior to the school's summer break. The
Company's recognition and affinity product line sales are also seasonal. The
majority of the sales of achievement publications are shipped in November of
each year. The remaining recognition and affinity product line sales are highest
during the winter holiday season and in the period prior to Mother's Day. As a
result, the effects of the seasonality of the class ring business on the Company
are somewhat tempered by the Company's relatively broad product mix. As a result
of the foregoing, the Company's working capital requirements tend to exceed its
operating cash flows from July through December.

LIQUIDITY AND CAPITAL RESOURCES


    OPERATING ACTIVITIES.  Operating activities provided cash of $24.5 million
for the Nine Months Ended May 25, 2002 as compared with $9.6 million for the
Nine Months Ended May 26, 2001. The $14.9 million increase in cash provided by
operating activities was primarily attributable to a decrease in accounts
receivable of $5.8 million, an increase in bank overdraft, accounts payable, and
accrued expenses of $13.0 million and an increase in operating cash from net
income before depreciation and amortization and other noncash charges of
$2.9 million. The increases were partially offset by a decrease in customer
deposits of $4.1 million.


    INVESTING ACTIVITIES.  Capital expenditures for the Nine Months Ended
May 25, 2002 and May 26, 2001 were $8.2 million and $5.5 million, respectively.
Our projected capital expenditures for 2002 are expected to be $15.0 million.

    FINANCING ACTIVITIES.  Net cash used in financing activities was
$16.9 million for the Nine Months Ended May 25, 2002 and net cash provided by
financing activities was $45.2 million for the Nine Months Ended May 26, 2001.
For the Nine Months Ended May 25, 2002, the cash provided by operating
activities and the proceeds received on February 20, 2002 from the issuance of
the $177 million of Unsecured Notes, $167.3 million net of financing fees, were
used to pay off the old term loans, revolver and bridge notes. For the Nine
Months Ended May 26, 2001, borrowings were made on the revolver and the term
loan facility in connection with the acquisition of ECI on March 30, 2001.

    CAPITAL RESOURCES.  In connection with the Taylor Acquisition, we amended
and restated our original credit agreement as of July 27, 2000 and increased the
amounts available under the term loan A, term loan B and the revolving credit
facility. On March 31, 2001, in connection with the ECI Acquisition, we entered
into a second amendment to the credit agreement to increase the amounts
available under the term loan A and term loan B. As of February 20, 2002, the
Company issued $177 million of Unsecured Notes due in 2007 and entered into a
new $40 million Senior Secured Credit Facility. With these proceeds, the Company
paid off the then outstanding term loans and revolver under the former credit
facility.

    In connection with the Taylor Acquisition, CBI signed a gold consignment
financing agreement with a bank. Under its gold consignment financing agreement,
CBI has the ability to have on consignment the lowest of (i) the dollar value of
27,000 troy ounces of gold, (ii) $10.1 million and (iii) a borrowing base,
determined based upon a percentage of gold located at CBI's facilities and other
approved locations, as specified by the agreement. Under the terms of the
consignment arrangement, CBI does not own the consigned gold nor have risk of
loss related to such inventory until the money is received by the bank from CBI
in payment for the gold purchased. Accordingly, CBI does not include the values
of consigned gold in its inventory or the corresponding liability for financial
statement purposes. As a result, as of May 25, 2002 and May 26, 2001, CBI held
approximately 22,720 ounces and 18,640 ounces, respectively, of gold valued at
$7.3 million and $5.1 million, respectively, on consignment from the bank.

                                       24
<Page>
    As of February 20, 2002, the Company issued $177 million of Unsecured Notes
due in 2007 and entered into a new $40 million Senior Secured facility. With the
proceeds thereof, the Company paid off the TP Holding Corp. convertible
subordinated bridge promissory notes owing to CHPIII of approximately
$19.0 million in the aggregate, including accrued interest, which were due on
February 28, 2003 and the convertible subordinated bridge promissory note due to
CHPIII of approximately $9.4 million, including accrued interest, which was due
on February 28, 2003.

    Cash generated from operating activities and availability under our existing
credit facilities have been our principal sources of liquidity. Our liquidity
needs arise primarily from debt service, working capital, capital expenditure
and general corporate requirements. As of May 25, 2002 we had approximately
$38.6 million available under our Senior Secured Credit Facility. We believe
that cash flow from our operating activities combined with the availability of
funds under our new senior secured credit facility will be sufficient to support
our operations and liquidity requirements for the foreseeable future.

NEW ACCOUNTING PRONOUNCEMENTS


    In June 2001, the Financial Accounting Standards Board issued SFAS No. 141,
"Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets." SFAS No. 141 requires that all business combinations initiated
subsequent to June 30, 2001, be accounted for under the purchase method of
accounting. The pooling-of-interests method is no longer allowed. Under SFAS
No. 142, goodwill and intangible assets with indefinite lives are no longer
amortized but are reviewed annually (or more frequently if impairment indicators
arise) for impairment. Separable intangible assets that are not deemed to have
indefinite lives will continue to be amortized over their useful lives (but with
no maximum life).



    We anticipate adopting SFAS No. 142 beginning on September 1, 2002, the
first day of fiscal year 2003. We are evaluating the impact of the adoption of
these standards and has not yet determined the effect of adoption on our
financial position and results of operations. The impact of adoption may be
material. Upon adoption of these standards, goodwill amortization will cease and
certain intangibles such as workforce in place will be reclassified into
goodwill.


    In August 2001, the Financial Accounting Standards Board released SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS
No. 144 establishes a single accounting model, based upon the framework
established in SFAS No. 121, for long-lived assets to be disposed of by sale.
SFAS No. 144 broadens the presentation of discontinued operations to include
more disposal transactions, and also provides additional implementation guidance
for SFAS No. 121. SFAS No. 144 is effective for fiscal years beginning after
December 15, 2001. We anticipate adopting SFAS No. 144 effective September 1,
2002, and we do not expect the adoption to have a material impact on our
financial position and results of operations.


    In April 2002, the Financial Accounting Standards Board issued SFAS
No. 145, RESCISSION OF FASB STATEMENTS NO. 4, 44, AND 64, AMENDMENT OF FASB
STATEMENT NO. 13, AND TECHNICAL CORRECTIONS, which rescinds SFAS No. 4,
Reporting Gains and Losses from Extinguishments of Debt, and an amendment of
that Statement, SFAS No. 64, Extinguishments of Debt Made to Satisfy
Sinking-Fund Requirements. The Statement also rescinds SFAS No. 44, Accounting
for Intangible Assets of Motor Carriers. The Statement amends SFAS No. 13,
Accounting for Leases, to eliminate an inconsistency between the required
accounting for sale-leaseback transactions and the required accounting for
certain lease modifications that have economic effects that are similar to
sale-leaseback transactions. We will adopt SFAS No. 145 in September 2002 and
does not expect this adoption to have a material effect on the financial
statements, except for the reclassification of the extraordinary item, loss on
early extinguishments of debt.


                                       25
<Page>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


    INTEREST RATE RISK.  We have market risk exposure from changes in interest
rates on our variable rate debt. Our policy is to manage interest rate exposure
through the use of a combination of fixed and floating rate debt instruments and
through the use of interest rate swaps. Our Credit Agreement and our gold
consignment agreement are variable rate facilities. The interest rates under
these facilities are based on a floating benchmark rate (such as LIBOR or the
Federal Funds rate) plus a fixed spread. We do not use derivatives or other
financial instruments for trading purposes. Upon the issuance of the Unsecured
Notes and the new Senior Secured Credit Facility on February 20, 2002, we
settled a portion of our existing swap agreements representing a notional amount
of $37.5 million and the remaining interest rate swap agreement representing a
notional amount of $25 million has been reclassified as a trading derivative. As
such, any changes in the fair value of this derivative will result in a
mark-to-market adjustment of the carrying value with any changes being reported
to other income or loss. As of May 25, 2002, the fair value of this derivative
represented a liability of approximately $1.1 million.



    Our derivatives and other financial instruments subject to interest rate
risk consist of (a) borrowings under the senior revolving credit facility (b) a
trading derivative and (c) the notional amount under the gold consignment
agreement. The net market value of these financial instruments at May 25, 2002
represented a net liability of $8.5 million.


    SEMI-PRECIOUS STONES.  We purchase the majority of our semi-precious stones
from a single source supplier in Germany. We believe that all of our major
competitors purchase their semi-precious stones from this same supplier. The
purchases are payable in Euros. In order to hedge our market risk, we have from
time-to-time purchased forward currency contracts. During 2002, we did not
purchase any forward currency contracts. During 2001, we purchased a total of
$2.0 million in forward currency contracts with various maturity dates resulting
in a net gain of $0.1 million.

    GOLD.  We purchase all of our gold requirements from a bank through our
revolving credit and gold consignment agreement. We consign the majority of our
gold from a bank and pay for gold as the product is shipped to customers and as
required by the terms of the gold consignment agreement. As of May 25, 2002, we
had hedged our gold requirements for the fiscal year ending August 31, 2002 by
covering the majority of our estimated gold requirements through the purchase of
gold options. At May 25, 2002, we held options to purchase 12,000 ounces of gold
at an average price of $310 per ounce, which expire on a monthly basis, ending
July 2002.

DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS

    This report includes forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. Although
management believes that the expectations reflected in such forward looking
statements are based upon reasonable assumptions, the Company can give no
assurance that these expectations will be achieved. Any change in or adverse
development, including the following factors may impact the achievement of
results in or accuracy of forward-looking statements: the price of gold and
precious, semiprecious and synthetic stones; the Company's access to students
and consumers in schools; the seasonality of the Company's business; regulatory
and accounting rules; the Company's relationship with its independent sales
representatives; fashion and demographic trends; general economic, business, and
market trends and events, especially during peak buying seasons for the
Company's products; the Company's ability to respond to customer change orders
and delivery schedules; development and operating costs; competitive pricing
changes; successful completion of management initiatives designed to achieve
operating efficiencies; the Company's cash flows; and the Company's ability to
draw down funds under its current bank financings and to enter into new bank
financings. The foregoing factors are not exhaustive. New factors may emerge or
changes may occur that impact the Company's operations and businesses.
Forward-looking statements herein are expressly qualified on the foregoing or
such other factors as may be applicable.

                                       26
<Page>
                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

    There are no materials pending legal proceedings to which the Company is a
party or to which any of its property is subject. The Company monitors all
claims, and the Company accrues for those, if any, which management believes may
be adversely decided against the Company and result in money damages to a third
party.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

    None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

    None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

    (a) Exhibits




<Table>
<S>                     <C>
99.1                    CEO Certification Pursuant to 18 U.S.C. Section 1350, As
                        Adopted Pursuant To Section 302 of the Sarbanes-Oxley Act of
                        2002
99.2                    CEO Certification Pursuant to 18 U.S.C. Section 1350, As
                        Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act of
                        2002
99.3                    CFO Certification Pursuant to 18 U.S.C. Section 1350, As
                        Adopted Pursuant To Section 302 of the Sarbanes-Oxley Act of
                        2002
99.4                    CFO Certification Pursuant to 18 U.S.C. Section 1350, As
                        Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act of
                        2002
</Table>


    (b) Reports on Form 8-K

       A Form 8-K dated May 24, 2002 and filed May 29, 2002 announcing the
       dismissal of Arthur Andersen LLP as our independent public accountants
       and the engagement of Deloitte & Touche LLP as our new independent public
       accountants.


       A Form 8-K dated July 15, 2002 and filed July 30, 2002 announcing the
       acquisition of all the issued and outstanding stock and warrants of
       Milestone Marketing Incorporated.


                                       27
<Page>
                        AMERICAN ACHIEVEMENT CORPORATION
                                   SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, on September 9, 2002.



<Table>
<S>                                                    <C>  <C>
                                                       AMERICAN ACHIEVEMENT CORPORATION

                                                       By:              /s/ DAVID G. FIORE
                                                            -----------------------------------------
                                                                          David G. Fiore
                                                                     CHIEF EXECUTIVE OFFICER

                                                       By:             /s/ SHERICE P. BENCH
                                                            -----------------------------------------
                                                                         Sherice P. Bench
                                                                     CHIEF FINANCIAL OFFICER
</Table>


                                       28