----

----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-K**

|   |   |                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
| þ |   | **ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|   |   |                                                                                                                                  |

**FOR      THE FISCAL YEAR ENDED AUGUST 25, 2007**

**OR**

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

**Commission      file numbers 333-137067, 333-121479 and 333-84294**

**AMERICAN      ACHIEVEMENT GROUP HOLDING CORP.**

**AAC      GROUP HOLDING CORP.**

**AMERICAN      ACHIEVEMENT CORPORATION**

|                                                                                                                |   |                                                                                               |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
| DELAWAREDELAWAREDELAWARE(State                or Other Jurisdiction ofIncorporation                or Organization) |   | 20-483399820-185483313-4126506(I.R.S.                EmployerIdentification                Number) |

**7211      CIRCLE S ROAD**

**AUSTIN,      TEXAS 78745**

**:**

----

----

----

**AMERICAN      ACHIEVEMENT GROUP HOLDING CORP.**

**AAC      GROUP HOLDING CORP.**

**AMERICAN      ACHIEVEMENT CORPORATION**

**FORM      10-K**

**FOR      THE FISCAL YEAR ENDED AUGUST 25, 2007**

**INDEX**

|                                                                                                                                                          | Page   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                          |   |   |   |
| **PART                I**                                                                                                                                     |   |   |   |
| Item 1.                Business                                                                                                                          |   | 3      |   |
| Item 1A.                Risk Factors                                                                                                                     |   | 9      |   |
| Item 1B.                Unresolved Staff Comments                                                                                                        |   | 13     |   |
| Item 2.                Properties                                                                                                                        |   | 13     |   |
| Item 3.                Legal Proceedings                                                                                                                 |   | 13     |   |
| Item 4.                Submission of Matters to a Vote of Security Holders                                                                               |   | 13     |   |
|                                                                                                                                                          |   |   |   |
| **PART                II**                                                                                                                                    |   |   |   |
| Item 5.                Market for Registrants’ Common Equity, Related Stockholder Matters and                Issuer Purchases of Equity Securities |   | 14     |   |
| Item 6.                Selected Financial Data                                                                                                           |   | 14     |   |
| Item 7.                Management’s Discussion and Analysis of Financial Condition and Results of                Operations                        |   | 21     |   |
| Item 7A.                Quantitative and Qualitative Disclosures About Market Risk                                                                       |   | 35     |   |
| Item 8.                Financial Statements and Supplementary Data                                                                                       |   | 36     |   |
| Item 9.                Changes in and Disagreements with Accountants on Accounting and Financial                Disclosure                               |   | 82     |   |
| Item 9A.                Controls and Procedures                                                                                                          |   | 82     |   |
|                                                                                                                                                          |   |   |   |
| **PART                III**                                                                                                                                   |   |   |   |
| Item 10.                Directors, Executive Officers and Corporate Governance                                                                           |   | 83     |   |
| Item 11.                Executive Compensation                                                                                                           |   | 86     |   |
| Item 12.                Security Ownership of Certain Beneficial Owners and Management and                Related                Stockholder Matters     |   | 94     |   |
| Item 13.                Certain Relationships and Related Transactions, and Director                Independence                                         |   | 95     |   |
| Item 14.                Principal Accounting Fees and Services                                                                                           |   | 96     |   |
|                                                                                                                                                          |   |   |   |
| **PART                IV**                                                                                                                                    |   |   |   |
| Item 15.                Exhibits, Financial Statement Schedules                                                                                          |   | 96     |   |
| Signatures                                                                                                                                                    |   | 100    |   |
|  Employment                Agreement - Kris G. Radhakrishnan                                                                                             |   |   |   |
|  Employment                Agreement - Theresa Ann Broome                                                                                                |   |   |   |
|  Statement                re: Computation of Ratios of Earnings to Fixed Charges                                                                         |   |   |   |
|  Subsidiaries                                                                                                                                            |   |   |   |
|  Certification                Pursuant to Section 302                                                                                                    |   |   |   |
|  Certification                Pursuant to Section 302                                                                                                    |   |   |   |
|  Certification                Pursuant to Section 906                                                                                                    |   |   |   |
|  Certification                Pursuant to Section 906                                                                                                    |   |   |   |

**Explanatory      Note**

----

**PART      I**

**Item 1.      **
***Business***

**Registrants**

**General**

*Who’s Who *
*The National      Dean’s List*

**Company      Background**

----

**Our        Product Business Segments**

| ($                  in thousands)         |   | **Fiscal                  Year Ended**      |                                                                          |
|-------------------------------------------|--------|----------------------------------------------------------------------|-------------------------------------------------------------------------------|
| **Segment**                               |   | **2007**                                                        |                                                                          | **2006**  |   |  **2005** |   |
| Class Rings                          |   | $                                                                    |         120,949                       |   | $ |         119,451 |   | $ |         119,658 |   |
| Yearbooks                                 |   |                                                                 |         115,207                       |   |   |         114,883 |   |   |         112,432 |   |
| Graduation                  Products      |   |                                                                 |           44,428            |   |   |           43,940 |   |   |           40,018 |   |
| Achievement                  Publications |   |                                                                 |             5,148 |   |   |           20,974 |   |   |           20,110 |   |
| Other                                     |   |                                                                 |           30,004            |   |   |           21,662 |   |   |           21,570 |   |
| Total                                     |   | $                                                                    |         315,736                       |   | $ |         320,910 |   | $ |         313,788 |   |
|                                      |   |                                                                 |                                                                          |   |   |   |   |   |   |   |

----

| **Product                  Lines**                         |            | **Brand                  Names**                        |                              | **Distribution                  Channel**   |
|------------------------------------------------------------|-----------------|---------------------------------------------------------|-----------------------------------|---------------------------------------------|
| High                  School Class Rings:             |            | *ArtCarved®*                                       |                              | Independent                  jewelry stores |
|                                                       |            |                                                    |                              | Jewelry                  chains             |
|                                                       |            | *Balfour®*                                         |                              | On-campus                                   |
|                                                       |            | *Keystone                  Class Rings®*      |                              | Mass                  merchandisers         |
|                                                       |            | *Master                  Class Rings®*        |                              | Mass                  merchandisers         |
|                                                       |            | *R.                  Johns®*                       |                              | Independent                  jewelry stores |
| College                  Class Rings:                 |            | *Balfour®*                                         |                              | College                  bookstores         |
|                                                       |            |                                                    |                              | Direct                  marketing           |
| Yearbooks:                                                 |            | *Taylor                  Publishing*                    |                              | On-campus                                   |
| High                  School Graduation Products:          |            | *Balfour®*                                         |                              | On-campus                                   |
| College                  Graduation Products:              |            | *Balfour®*                                         |                              | Direct                  marketing           |
|                                                       |            |                                                    |                              | College                  bookstores         |
| Achievement                  Publications:                 |            | *Who’s                  Who®*                |                              | Direct                  marketing           |
|                                                       |            | *The                  National Dean’s List®* |                              | Direct                  marketing           |
| Affinity                  Group Jewelry:                   |            | *Keepsake®*                                        |                              | Direct                  marketing           |
|                                                       |            | *R.                  Johns®*                       |                              | Direct                  marketing           |
|                                                       |            | *Balfour®*                                         |                              | Direct                  marketing           |
| Personalized                  Fashion Jewelry:             |            | *Celebrations                  of Life®*           |                              | Independent                  jewelry stores |
|                                                       |            |                                                    |                              | Jewelry                  chains             |
|                                                       |            | *Keepsake®*                                        |                              | Mass                  merchandisers         |
|                                                       |            | *Generations                  of Love®*            |                              | Mass                  merchandisers         |
|                                                       |            | *Namesake®*                                        |                              | Mass                  merchandisers         |
| Fan                  Affinity Sports Jewelry:              |            | *Balfour                  Sports®*                 |                              | Mass                  merchandisers         |
|                                                       |            |                                                    |                              | Catalogues                                  |
| Professional                  Sports Championship Jewelry: | *Balfour®* |                                                    | Direct                  marketing |
| Commercial                  Printing:                      |            | *Taylor                  Publishing*                    |                              | Direct                  sales force         |
| Other                  Recognition Products:               |            | *Balfour®*                                         |                              | On-campus                                   |
|                                                       |            | *Powers*                                                |                              | Sporting                  goods stores      |

***Class Rings***

***Yearbooks***

----

***Graduation      Products***

***    ***

***Achievement      Publications***

*Who’s Who Among American High School      Students*
*The National Dean’s List*
*Who’s Who Among      America’s Teachers*

----

***Other***

|   | **•** |   | ***Affinity                Group Jewelry.***Affinity group jewelry is sold to members of                large groups and associations. The jewelry features emblems of, and                otherwise commemorates accomplishments within, the group. For example,                through our Keepsake brand, we provide affinity ring awards to the                United                States Bowling Congress, including recognition rings for bowlers                who score                a perfect “300” game. Through our Balfour brand, we provide affinity rings                to military personnel that recognize affiliation and completion of                specialized training ranging from basic training to special                forces. |
|--------|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **•** |   | ***Personalized                Fashion Jewelry.***Our personalized fashion jewelry products                include rings commemorating children’s birth dates, which feature a level                of personalization, such as birthstones and names, which distinguishes                us                from our competitors. We also sell other personalized jewelry, such                as                necklaces and bracelets, designed to commemorate family events. We                provide                personalized family jewelry under our Celebrations of Life, Generations                of                Love, Keepsake and Namesake brand names.                                                                                       |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|   | **•** |   | ***Professional                Sports Championship Jewelry.***We provide sports championship                jewelry for professional teams and their members and have, for example,                produced several World Series, Super Bowl and Stanley Cup rings,                including                all of the rings for the New York Yankees’ 26 championships. We provide                sports championship jewelry under the Balfour brand.                                                                                                                                                       |
|--------|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | **•** |   | ***Commercial                Printing.***We provide a variety of printing products for the                commercial market. We provide these products under the Taylor Publishing                brand.                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | **•** |   | ***Other                Recognition Products.  ***Our other recognition                products include letter jackets, loose and applied chenille, inserts,                pins, banners, and embroidered soft goods that commemorate accomplishments                in sports, band or other school based organizations.  Our                products are marketed under Balfour to on-campus and Powers to sporting                goods retailers.  These products are also marketed to                corporations and businesses as corporate affinity                products. |

**Sales      and Marketing**

----

**Intellectual      Property**

**Competition**

**Raw      Material and Suppliers**

**Seasonality**

----

**Backlog**

**Employees**

~~ ~~

**Environmental**

**Item 1A.      **
***Risk Factors***

***Our      substantial indebtedness could adversely affect our financial health and prevent      us from fulfilling our financial obligations.***

|   | **•** |   | make                it more difficult for us to satisfy our obligations with respect                to our                indebtedness;                                                                                                                                                                                                                                                                         |
|--------|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **•** |   | increase                our vulnerability to general adverse economic and industry                conditions;                                                                                                                                                                                                                                                                                                   |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **•** |   | require                us to dedicate a substantial portion of our cash flow from operations                to                payments on our indebtedness, thereby reducing the availability of                our                cash flow to fund working capital, capital expenditures, research                and                development efforts and other general corporate                purposes; |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **•** |   | limit                our flexibility in planning for, or reacting to, changes in our business                and the industry in which we operate;                                                                                                                                                                                                                                                              |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **•** |   | place                us at a competitive disadvantage compared to our competitors that                have                less debt; and                                                                                                                                                                                                                                                                        |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **•** |   | limit                our ability to borrow additional                funds.                                                                                                                                                                                                                                                                                                                                     |

----

***To      service our indebtedness, we require a significant amount of cash. Our ability      to generate cash depends on many factors beyond our      control.***

***Restrictions      in the indentures governing the senior PIK notes, the 10.25% senior discount      notes, the 8.25% senior subordinated notes and the existing senior secured      credit facility may prevent us from taking actions that we believe would be      in      the best interest of our business.***

|   | **•** |   | incurring                additional indebtedness and issuing preferred stock;                                                                                                           |
|--------|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                    |
|   | **•** |   | granting                liens on our assets;                                                                                                                                            |
|   |        |   |                                                                                                                                                                                    |
|   | **•** |   | making                investments;                                                                                                                                                      |
|   |        |   |                                                                                                                                                                                    |
|   | **•** |   | consolidating                or merging with, or acquiring, another business;                                                                                                           |
|   |        |   |                                                                                                                                                                                    |
|   | **•** |   | selling                or otherwise disposing of our assets;                                                                                                                            |
|   |        |   |                                                                                                                                                                                    |
|   | **•** |   | paying                dividends and making other distributions with respect to our capital                stock, or purchasing, redeeming or retiring our capital                stock; |
|   |        |   |                                                                                                                                                                                    |
|   | **•** |   | entering                into transactions with our affiliates; and                                                                                                                      |
|   |        |   |                                                                                                                                                                                    |
|   | **•** |   | entering                into sale and leaseback                transactions.                                                                                                            |

***If      we are unable to maintain our business or further implement our business      strategy, our business and financial condition could be adversely      affected.***

----

***We      face significant competition from other national      competitors.***

***Increased      prices for raw materials or finished goods used in our products could adversely      affect our profitability or revenues.***

***Currency      exchange rate fluctuations may adversely affect our results of      operations.***

***Many      of our products or components of our products are provided by a limited number      of third-party suppliers.***

***Our      future operating results are dependent on maintaining our relationships with      our      independent sales representatives.***

----

***Our      performance may fluctuate with the financial condition of, or loss of, our      retail customers.***

***The      seasonality of our sales may have an adverse effect on our operations and our      ability to service our debt.***

***We      are subject to environmental laws and regulations that could impose substantial      costs upon us and may adversely affect our financial      results.***

***Our      business could be adversely affected by unforeseen economic and political      conditions.***

***We      rely on proprietary rights which may not be adequately      protected.***

***We      depend on numerous complex information systems, and any failure to successfully      maintain those systems or implement new systems could materially harm our      operations.***

***Our      results of operations are dependent on certain principal production      facilities.***

----

***Our      stockholders’ interests may conflict with interests of our other      investors.***

**Item      1B. **
***Unresolved Staff Comments***

**Item 2.      **
***Properties***

| **Approximate                  Location** |   | **Type                  of Property**                      |   | **Leased                  or Owned** |   | **Square                  Footage** |
|-------------------------------------------|--------|------------------------------------------------------------|--------|--------------------------------------|--------|-------------------------------------|
| Austin,                  TX               |   | Corporate                  headquarters                    |   | Owned                                |   | 23,000                              |   |
| Austin,                  TX               |   | Jewelry                  manufacturing and administration  |   | Owned                                |   | 108,000                             |   |
| Austin,                  TX               |   | Warehouse                  facility                        |   | Leased                               |   | 38,600                              |   |
| Dallas,                  TX               |   | Yearbook                  administration and manufacturing |   | Owned                                |   | 327,000                             |   |
| El                  Paso, TX              |   | Yearbook                  pre-press                        |   | Leased                               |   | 50,000                              |   |
| Louisville,                  KY           |   | Graduation                  products manufacturing         |   | Leased                               |   | 100,000                             |   |
| Manhattan,                  KS            |   | Graduation                  products manufacturing         |   | Leased                               |   | 10,000                              |   |
| Juarez,                  Mexico           |   | Jewelry                  manufacturing                     |   | Leased                               |   | 20,000                              |   |
| Waco,                  TX                 |   | Recognition                  product manufacturing         |   | Leased                               |   | 51,000                              |   |

**Item 3.      **
***Legal Proceedings***

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

----

**PART      II**

**Item 5.*****Market      for Registrants’Common Equity, Related Stockholder Matters and Issuer Purchases of Equity      Securities***

**Item 6.*****Selected      Financial      Data***

~~ ~~

----

|                                                                 | **Parent                  Holdings**                 |                        |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                                 | Successor                                                                               |                        |   | Predecessor    |   |
|                                                                 |                                                                                                                                 |                        |   |   |   |   |   |   |   |   | The                  period from |   |   | The                  period from |   |   |   |   |
|                                                                 | Fiscal                  Year Ended                                                                     |                        |                    March                  26, 2004 |   |   | August                  31, 2003  |   | Fiscal                  Year Ended |   |
|                                                                 |                                                                                                                                 | August                  25, |   | August                  26, |   | August                  27, |   |                    to |   |   | to  |   |   | August                  30, |   |
| ($                  in thousands)                                    |                                                                                                                                 | 2007                  (1)   |   |  2006 |   |  2005 |   | August                  28, 2004(2)  |   | March                  25, 2004(3) |   |   | 2003 |   |
| **                   Statement of Operations Data:**            |                                                                                                                                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Net sales                                    |                                                                                                                                 | $                           |    315,736 |   | $ |    320,910 |   | $ |   313,788 |   | $ |     167,350 |   |   | $ |    146,721 |   | $ |   308,431 |   |
|                    Cost of sales                                |                                                                                                                                 |                        |    140,603 |   |   |    134,258 |   |   |   134,375 |   |   |       83,521 |   |   |   |      59,857 |   |   |   139,170 |   |
|                    Gross profit                                 |                                                                                                                                 |                        |    175,133 |   |   |    186,652 |   |   |   179,413 |   |   |       83,829 |   |   |   |      86,864 |   |   |   169,261 |   |
|                    Selling, general and administrative expenses |                                                                                                                                 |                        |    135,831 |   |   |    144,129 |   |   |   144,592 |   |   |       62,647 |   |   |   |      74,992 |   |   |   129,423 |   |
|                    Other charges(4)                             |                                                                                                                                 |                        |      28,013 |   |   |                - |   |   |              - |   |   |                 - |   |   |   |                - |   |   |              - |   |
|                    Operating income                             |                                                                                                                                 |                        |      11,289 |   |   |      42,523 |   |   |     34,821 |   |   |       21,182 |   |   |   |      11,872 |   |   |     39,838 |   |
|                    Interest expense, net                        |                                                                                                                                 |                        |      59,267 |   |   |      39,331 |   |   |     31,271 |   |   |       10,257 |   |   |   |      16,455 |   |   |     28,940 |   |
|                    Income (loss) before income taxes            |                                                                                                                                 |                        |     (47,978 | ) |   |        3,192 |   |   |       3,550 |   |   |       10,925 |   |   |   |       (4,583 | )  |   |     10,898 |   |
|                    Provision (benefit) for income taxes    |                                                                                                                                 |                        |     (15,427 | ) |   |        2,216 |   |   |       1,738 |   |   |         4,459 |   |   |   |                - |   |   |          132 |   |
| **                   Net income (loss)**                        |                                                                                                                                 | **$**                       | **    (32,551** | **)** | **$** | **          976** |   | **$** | **      1,812** |   | **$** | **        6,466** |   |   | **$** | **      (4,583** | **)**  | **$** | **    10,766** |   |
|                                                                 |                                                                                                                                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **                   Balance Sheet Data (at end of period):**   |                                                                                                                                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Total assets                                 |                                                                                                                                 | $                           |    476,066 |   | $ |    511,276 |   | $ |   512,936 |   | $ |     530,986 |   |   | $ |    553,589 |   | $ |   395,501 |   |
|                    Total debt(5)                                |                                                                                                                                 |                        |    546,253 |   |   |    535,790 |   |   |   388,492 |   |   |     314,604 |   |   |   |    317,504 |   |   |   228,928 |   |
|                    Total stockholders’ equity (deficit)   |                                                                                                                                 |                        |   (144,183 | ) |   |  (114,786 | ) |   |     23,818 |   |   |     108,512 |   |   |   |    102,046 |   |   |     71,843 |   |
|                                                                 |                                                                                                                                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **                   Other Data:**                              |                                                                                                                                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    EBITDA(6)                                    |                                                                                                                                 | $                           |      36,289 |   | $ |      67,618 |   | $ |     60,102 |   | $ |       31,526 |   |   | $ |      20,402 |   | $ |     53,987 |   |
|                    Capital expenditures                         |                                                                                                                                 |                        |      10,594 |   |   |      12,511 |   |   |     12,795 |   |   |         3,665 |   |   |   |      12,793 |   |   |     11,243 |   |
|                    Depreciation and amortization                |                                                                                                                                 |                        |      25,000 |   |   |      25,095 |   |   |     25,281 |   |   |       10,344 |   |   |   |        8,530 |   |   |     14,149 |   |

----

|                                                                 | **Intermediate                  Holdings**                 |                        |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                                 | Successor                                                                                |                        | Predecessor     |
|                                                                 |                                                                                                                                       |                        |   |   |   |   |   |   |   |   | The                  period from |   |   | The                  period from |   |   |   |   |
|                                                                 | Fiscal                  Year Ended                                                                           |                        | March                  26, 2004  |   |   | August                  31, 2003  |   | Fiscal                  Year Ended |   |
|                                                                 |                                                                                                                                       | August                  25, |   | August                  26, |   | August                  27, |   | to  |   |   | to  |   |   | August                  30, |   |
| ($                  in thousands)                                    |                                                                                                                                       | 2007                  (1)   |   | 2006  |   | 2005  |   | August                  28, 2004(2) |   |   | March                  25, 2004(3) |   |   | 2003 |   |
| **                   Statement of Operations Data:**            |                                                                                                                                       |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Net sales                                    |                                                                                                                                       | $                           |  315,736 |   | $ |  320,910 |   | $ |  313,788 |   | $ |     167,350 |   |   | $ |    146,721 |   | $ |  308,431 |   |
|                    Cost of sales                                |                                                                                                                                       |                        |  140,603 |   |   |  134,258 |   |   |  134,375 |   |   |       83,521 |   |   |   |      59,857 |   |   |  139,170 |   |
|                    Gross profit                                 |                                                                                                                                       |                        |  175,133 |   |   |  186,652 |   |   |  179,413 |   |   |       83,829 |   |   |   |      86,864 |   |   |  169,261 |   |
|                    Selling, general and administrative expenses |                                                                                                                                       |                        |  135,831 |   |   |  144,129 |   |   |  144,592 |   |   |       62,647 |   |   |   |      74,992 |   |   |  129,423 |   |
|                    Other charges(4)                             |                                                                                                                                       |                        |    28,013 |   |   |              - |   |   |              - |   |   |                 - |   |   |   |                - |   |   |              - |   |
|                    Operating income                             |                                                                                                                                       |                        |    11,289 |   |   |    42,523 |   |   |    34,821 |   |   |       21,182 |   |   |   |      11,872 |   |   |    39,838 |   |
|                    Interest expense, net                        |                                                                                                                                       |                        |    33,514 |   |   |    34,246 |   |   |    31,271 |   |   |       10,257 |   |   |   |      16,455 |   |   |    28,940 |   |
|                    Income (loss) before income taxes            |                                                                                                                                       |                        |   (22,225 | )  |   |      8,277 |   |   |      3,550 |   |   |       10,925 |   |   |   |       (4,583 | )  |   |    10,898 |   |
|                    Provision (benefit) for income taxes    |                                                                                                                                       |                        |     (7,233 | )  |   |      3,985 |   |   |      1,738 |   |   |         4,459 |   |   |   |                - |   |   |         132 |   |
| **                   Net income (loss)**                        |                                                                                                                                       | **$**                       | **  (14,992** | **)**  | **$** | **     4,292** |   | **$** | **     1,812** |   | **$** | **        6,466** |   |   | **$** | **      (4,583** | **)**  | **$** | **   10,766** |   |
|                                                                 |                                                                                                                                       |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **                   Balance Sheet Data (at end of period):**   |                                                                                                                                       |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Total assets                                 |                                                                                                                                       | $                           |  468,129 |   | $ |  501,773 |   | $ |  512,936 |   | $ |     530,986 |   |   | $ |    553,589 |   | $ |  395,501 |   |
|                    Total debt(5)                                |                                                                                                                                       |                        |  362,909 |   |   |  374,093 |   |   |  388,492 |   |   |     314,604 |   |   |   |    317,504 |   |   |  228,928 |   |
|                    Total stockholders’ equity             |                                                                                                                                       |                        |    24,876 |   |   |    36,714 |   |   |    23,818 |   |   |     108,512 |   |   |   |    102,046 |   |   |    71,843 |   |
|                                                                 |                                                                                                                                       |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **                   Other Data:**                              |                                                                                                                                       |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    EBITDA(6)                                    |                                                                                                                                       | $                           |    36,289 |   | $ |    67,618 |   | $ |    60,102 |   | $ |       31,526 |   |   | $ |      20,402 |   | $ |    53,987 |   |
|                    Capital expenditures                         |                                                                                                                                       |                        |    10,594 |   |   |    12,511 |   |   |    12,795 |   |   |         3,665 |   |   |   |      12,793 |   |   |    11,243 |   |
|                    Depreciation and amortization                |                                                                                                                                       |                        |    25,000 |   |   |    25,095 |   |   |    25,281 |   |   |       10,344 |   |   |   |        8,530 |   |   |    14,149 |   |

----

|                                                                 |   | **AAC**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                         |
|----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                                                 |   | Successor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                         |   | Predecessor    |   |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   | The                  period from |   |   | The                  period from |   |   |   |   |
|                                                                 |   | Fiscal                  Year Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                         | March                  26, 2004  |   |   | August                  31, 2003  |   | Fiscal                  Year Ended |   |
|                                                                 |   | August                  25,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                         | August                  26, |   | August                  27, |   | to  |   |   | to  |   | August                  30, |   |
| ($                  in thousands)                                    |   | 2007                  (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                         | 2006  |   | 2005  |   | August                  28, 2004(2) |   |   | March                  25, 2004(3) |   | 2003  |   |
| **                   Statement of Operations Data:**            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Net sales                                    |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |      315,736                                                                        |   | $ |      320,910 |   | $ |      313,788 |   | $ |         167,350 |   |   | $ |         146,721 |   | $ |      308,431 |   |
|                    Cost of sales                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |      140,603                                                                        |   |   |      134,258 |   |   |      134,375 |   |   |           83,521 |   |   |   |           59,857 |   |   |      139,170 |   |
|                    Gross profit                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |      175,133                                                                        |   |   |      186,652 |   |   |      179,413 |   |   |           83,829 |   |   |   |           86,864 |   |   |      169,261 |   |
|                    Selling, general and administrative expenses |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |      135,831                                                                        |   |   |      144,129 |   |   |      144,592 |   |   |           62,647 |   |   |   |           74,992 |   |   |      129,423 |   |
|                    Other charges(4)                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |        28,013                                                             |   |   |                 - |   |   |                 - |   |   |                     - |   |   |   |                    - |   |   |                 - |   |
|                    Operating income                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |        11,289                                                             |   |   |        42,523 |   |   |        34,821 |   |   |           21,182 |   |   |   |           11,872 |   |   |        39,838 |   |
|                    Interest expense, net                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |        22,056                                                             |   |   |        23,289 |   |   |        23,497 |   |   |           10,257 |   |   |   |           16,455 |   |   |        28,940 |   |
|                    Income (loss) before income taxes            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |      (10,767                                                                        | )  |   |        19,234 |   |   |        11,324 |   |   |           10,925 |   |   |   |           (4,583 | )  |   |        10,898 |   |
|                    Provision (benefit) for income taxes    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |        (3,122                                                             | )  |   |          7,907 |   |   |          4,617 |   |   |             4,459 |   |   |   |                    - |   |   |             132 |   |
| **                   Net income (loss)**                        |   | **$**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **      (7,645**                                                               | **)**  | **$** | **     11,327** |   | **$** | **       6,707** |   | **$** | **           6,466** |   |   | **$** | **         (4,583** | **)**  | **$** | **     10,766** |   |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **                   Balance Sheet Data (at end of period):**   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Total assets                                 |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |      465,319                                                                        |   | $ |      498,542 |   | $ |      509,552 |   | $ |         530,986 |   |   | $ |         553,589 |   | $ |      395,501 |   |
|                    Total debt(5)                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |      245,055                                                                        |   |   |      267,276 |   |   |      291,836 |   |   |         314,604 |   |   |   |         317,504 |   |   |      228,928 |   |
|                    Total stockholders’ equity             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |      129,055                                                                        |   |   |      133,546 |   |   |      114,263 |   |   |         108,512 |   |   |   |         102,046 |   |   |        71,843 |   |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **                   Other Data:**                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    EBITDA(6)                                    |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |        36,289                                                             |   | $ |        67,618 |   | $ |        60,102 |   | $ |           31,526 |   |   | $ |           20,402 |   | $ |        53,987 |   |
|                    Capital expenditures                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |        10,594                                                             |   |   |        12,511 |   |   |        12,795 |   |   |             3,665 |   |   |   |           12,793 |   |   |        11,243 |   |
|                    Depreciation and amortization                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |        25,000                                                             |   |   |        25,095 |   |   |        25,281 |   |   |           10,344 |   |   |   |             8,530 |   |   |        14,149 |   |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                                                                  |   | Includes                  the results of Powers from April 1, 2007, the date of our acquisition                  of                  Powers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                         |   |   |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (2)                                                                  |   | During                  the period from March 26, 2004 to August 28, 2004, AAC                  recognized in its consolidated statement of operations approximately                  $6.4 million of excess purchase price allocated to inventory as cost                  of sales and approximately $4.3 million of additional amortization                  expense of intangible assets as selling, general and administrative                  expenses, as compared to its historical basis of accounting prior                  to the                  Merger.                                                                                                                         |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (3)                                                                  |   | Includes                  the results of C-B Graduation Announcements from January 30, 2004,                  the date of our acquisition of C-B Graduation                  Announcements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                    |
| (4)                                                                  |   | Other                  charges includes write downs of goodwill, intangible assets, and                  fixed                  assets of $22.8 million for the achievement publications segment,                  $4.9                  million for the class rings segment related to goodwill and trademarks                  in                  retail class rings, and $0.3 million for the other segment related                  to                  trademarks in personalized fashion jewelry, as discussed in "Significant                  Developments" below.                                                                                                                                         |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |          |   |
| (5)                                                                  |   | Total                  debt includes all borrowings outstanding under notes, credit facilities,                  and capital lease obligations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                         |   |   |   |   |   |   |   |   |       |   |   |   |   |
| (6)                                                                  |   | EBITDA                  represents net income (loss) before interest expense, income taxes,                  depreciation, and amortization. EBITDA does not represent net income                  or cash flows from operations, as these terms are defined under                  generally                  accepted accounting principles, and should not be considered as                  an                  alternative to net income as an indicator of our operating performance                  or                  to cash flows as a measure of liquidity. Fiscal 2007 EBITDA was                  unfavorably impacted by other charges of $28.0 million discussed                  above. |

----

|                                                                              | **Parent                  Holdings**                 |                                                                        |
|-----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                              | Successor                                                                               |                                                                        |   | Predecessor    |   |
| ($                  in thousands)                                                 |                                                                                                                                 |                                                                        |   |   |   |   |   |   |   | The                  Period from |   |   | The                  Period from |   | Fiscal                  Year |   |
|                                                                              | Fiscal                  Year Ended                                                                     |                                                                        | March                  26, 2004 — |   |   | August                  31, 2003 — |   | Ended |   |
|                                                                              | August                  25,                                                                                                          |                                                                        | August                  26, |   | August                  27, |   | August                  28, |   |   | March                  25, |   | August                  30, |   |
|                                                                              | 2007                                                                                                                            |                                                                        | 2006  |   | 2005  |   | 2004  |   |   | 2004  |   | 2003  |   |
|                    Net income (loss)                                         | $                                                                                                                                    |     (32,551                                             | )  | $ |            976 |   | $ |           1,812 |   | $ |            6,466 |   |   | $ |           (4,583 | )  | $ |       10,766 |   |
|                    Interest expense, net of interest income                  |                                                                                                                                 |      59,267                                        |   |   |       39,331 |   |   |        31,271 |   |   |          10,257 |   |   |   |           16,455 |   |   |      28,940 |   |
|                    Provision (benefit) for income taxes                 |                                                                                                                                 |     (15,427                                             | )  |   |          2,216 |   |   |          1,738 |   |   |            4,459 |   |   |   |                      - |   |   |             132 |   |
|                    Depreciation and amortization expense                     |                                                                                                                                 |      25,000                                        |   |   |      25,095 |   |   |       25,281 |   |   |          10,344 |   |   |   |             8,530 |   |   |        14,149 |   |
|                    EBITDA                                                    | $                                                                                                                                    |      36,289                                        |   | $ |       67,618 |   | $ |       60,102 |   | $ |          31,526 |   |   | $ |          20,402 |   | $ |      53,987 |   |
|                  Other charges                                               | $                                                                                                                                    | 28,013                                                                      |   | $ | -  |   | $ | -  |   | $ | -  |   |   | $ | -  |   | $ | -  |   |
|                    Changes in assets and liabilities                         |                                                                                                                                 |       (11,791                                 | )  |   |     (14,955 | )  |   |          (335 | )  |   |       (23,970 | )  |   |   |          35,227 |   |   |             (92 | )  |
|                    Deferred income taxes                                     |                                                                                                                                 |     (15,506                                             | )  |   |          2,061 |   |   |           1,521 |   |   |            4,309 |   |   |   |                      - |   |   |                  - |   |
|                    Interest expense, net                                     |                                                                                                                                 |    (59,267                                                   | )  |   |     (39,331 | )  |   |      (31,271 | )  |   |        (10,257 | ) |   |   |         (16,455 | )  |   |    (28,940 | )  |
|                    (Provision) benefit for income taxes                      |                                                                                                                                 |       15,427                                  |   |   |        (2,216 | )  |   |        (1,738 | )  |   |          (4,459 | )  |   |   |                      - |   |   |           (132 | )  |
|                    Amortization of debt discount and deferred financing fees |                                                                                                                                 |          3,491                 |   |   |         2,269 |   |   |          1,882 |   |   |               629 |   |   |   |               1,197 |   |   |          2,051 |   |
|                    Accretion of interest on 10.25% senior discount notes     |                                                                                                                                 |        11,037                            |   |   |         10,161 |   |   |         7,387 |   |   |                     - |   |   |   |                      - |   |   |                  - |   |
|                    Accretion of senior PIK notes                             |                                                                                                                                 |       21,647                                  |   |   |          4,197 |   |   |                  - |   |   |                     - |   |   |   |                      - |   |   |                  - |   |
|                    Provision for doubtful accounts                           |                                                                                                                                 |          (233                  | )  |   |          (464 | )  |   |           (107 | )  |   |             (236 | )  |   |   |               (144 | )  |   |          (376 | )  |
|                    Loss on operating lease agreement                         |                                                                                                                                 |             961 |   |   |                  - |   |   |                  - |   |   |                     - |   |   |   |                      - |   |   |                  - |   |
|                    Loss (gain) on sales of plant, property and equipment     |                                                                                                                                 |        (1,989                            | )  |   |               79 |   |   |                  - |   |   |                     - |   |   |   |                      - |   |   |                  - |   |
|                    Net cash provided by (used in) operating activities       | $                                                                                                                                    |      28,079                                        |   | $ |       29,419 |   | $ |       37,441 |   | $ |          (2,458 | )  |   | $ |          40,227 |   | $ |      26,498 |   |
|                                                                              |                                                                                                                                 |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                              | **Intermediate                  Holdings**                 |                                                                        |
|-----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                              | Successor                                                                                     |                                                                        |   | Predecessor    |   |
| ($                  in thousands)                                                 |                                                                                                                                       |                                                                        |   |   |   |   |   |   |   | The                  Period from |   |   | The                  Period from |   | Fiscal                  Year |   |
|                                                                              | Fiscal                  Year Ended                                                                           |                                                                        | March                  26, 2004 — |   |   | August                  31, 2003 — |   | Ended |   |
|                                                                              | August                  25,                                                                                                                |                                                                        | August                  26, |   | August                  27, |   | August                  28, |   |   | March                  25, |   | August                  30, |   |
|                                                                              | 2007                                                                                                                                  |                                                                        | 2006  |   | 2005  |   | 2004  |   |   | 2004  |   | 2003  |   |
|                    Net income (loss)                                         | $                                                                                                                                          |     (14,992                                             | )  | $ |         4,292 |   | $ |           1,812 |   | $ |            6,466 |   |   | $ |           (4,583 | )  | $ |       10,766 |   |
|                    Interest expense, net of interest income                  |                                                                                                                                       |       33,514                                  |   |   |      34,246 |   |   |        31,271 |   |   |          10,257 |   |   |   |           16,455 |   |   |      28,940 |   |
|                    Provision (benefit) for income taxes                 |                                                                                                                                       |       (7,233                                  | )  |   |         3,985 |   |   |          1,738 |   |   |            4,459 |   |   |   |                      - |   |   |             132 |   |
|                    Depreciation and amortization expense                     |                                                                                                                                       |      25,000                                        |   |   |      25,095 |   |   |       25,281 |   |   |          10,344 |   |   |   |             8,530 |   |   |        14,149 |   |
|                    EBITDA                                                    | $                                                                                                                                          |      36,289                                        |   | $ |       67,618 |   | $ |       60,102 |   | $ |          31,526 |   |   | $ |          20,402 |   | $ |      53,987 |   |
|                  Other charges                                               | $                                                                                                                                          | 28,013                                                                      |   |  $ | -  |   | $ | -  |   | $ | -  |   |   | $ | -  |   | $ | -  |   |
|                    Changes in assets and liabilities                         |                                                                                                                                       |     (14,369                                             | )  |   |     (15,623 | )  |   |          (335 | )  |   |       (23,970 | )  |   |   |          35,227 |   |   |             (92 | )  |
|                    Deferred income taxes                                     |                                                                                                                                       |       (7,274                                  | )  |   |         3,824 |   |   |           1,521 |   |   |            4,309 |   |   |   |                      - |   |   |                  - |   |
|                    Interest expense, net                                     |                                                                                                                                       |     (33,514                                             | )  |   |    (34,246 | )  |   |      (31,271 | )  |   |        (10,257 | )  |   |   |         (16,455 | )  |   |    (28,940 | )  |
|                    (Provision) benefit for income taxes                      |                                                                                                                                       |         7,233                       |   |   |       (3,985 | )  |   |        (1,738 | )  |   |          (4,459 | )  |   |   |                      - |   |   |           (132 | )  |
|                    Amortization of debt discount and deferred financing fees |                                                                                                                                       |          1,976                 |   |   |          1,959 |   |   |          1,882 |   |   |               629 |   |   |   |               1,197 |   |   |          2,051 |   |
|                    Accretion of interest on 10.25% senior discount notes     |                                                                                                                                       |        11,037                            |   |   |         10,161 |   |   |         7,387 |   |   |                     - |   |   |   |                      - |   |   |                  - |   |
|                    Provision for doubtful accounts                           |                                                                                                                                       |          (233                  | )  |   |          (464 | )  |   |           (107 | )  |   |             (236 | )  |   |   |               (144 | )  |   |          (376 | )  |
|                    Loss on operating lease agreement                         |                                                                                                                                       |             961 |   |   |                  - |   |   |                  - |   |   |                     - |   |   |   |                      - |   |   |                  - |   |
|                    Loss (gain) on sales of plant, property and equipment     |                                                                                                                                       |        (1,989                            | )  |   |               79 |   |   |                  - |   |   |                     - |   |   |   |                      - |   |   |                  - |   |
|                    Net cash provided by (used in) operating activities       | $                                                                                                                                          |       28,130                                  |   | $ |      29,323 |   | $ |       37,441 |   | $ |          (2,458 | )  |   | $ |          40,227 |   | $ |      26,498 |   |
|                                                                              |                                                                                                                                       |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                              | **AAC**                 |                                                                              |
|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|                                                                              | Successor                                                  |                                                                              |   | Predecessor    |   |
| ($                  in thousands)                                                 |                                                                                                    |                                                                              |   |   |   |   |   |   |   | The                  Period from |   |   | The                  Period from |   | Fiscal                  Year |   |
|                                                                              | Fiscal                  Year Ended                                        |                                                                              | March                  26, 2004 — |   |   | August                  31, 2003 — |   | Ended |   |
|                                                                              | August                  25,                                                                             |                                                                              | August                  26, |   | August                  27, |   | August                  28, |   |   | March                  25, |   | August                  30, |   |
|                                                                              | 2007                                                                                               |                                                                              | 2006  |   | 2005  |   | 2004  |   |   | 2004  |   | 2003  |   |
|                    Net income (loss)                                         | $                                                                                                       |        (7,645                                  | )  | $ |        11,327 |   | $ |        6,707 |   | $ |           6,466 |   |   | $ |          (4,583 | )  | $ |       10,766 |   |
|                    Interest expense, net of interest income                  |                                                                                                    |       22,056                                        |   |   |      23,289 |   |   |      23,497 |   |   |          10,257 |   |   |   |          16,455 |   |   |      28,940 |   |
|                    Provision (benefit) for income taxes                 |                                                                                                    |         (3,122                            | )  |   |        7,907 |   |   |         4,617 |   |   |           4,459 |   |   |   |                     - |   |   |             132 |   |
|                    Depreciation and amortization expense                     |                                                                                                    |       25,000                                        |   |   |      25,095 |   |   |       25,281 |   |   |          10,344 |   |   |   |            8,530 |   |   |        14,149 |   |
|                    EBITDA                                                    | $                                                                                                       |       36,289                                        |   | $ |       67,618 |   | $ |       60,102 |   | $ |          31,526 |   |   | $ |         20,402 |   | $ |      53,987 |   |
|                  Other charges                                               | $                                                                                                       | 28,013                                                                            |   | $ | -  |   | $ | -  |   | $ | -  |   |   | $ | -  |   | $  | -  |   |
|                    Changes in assets and liabilities                         |                                                                                                    |      (14,382                                             | )  |   |      (16,010 | )  |   |          (379 | )  |   |       (23,970 | )  |   |   |         35,227 |   |   |            (92 | )  |
|                    Deferred income taxes                                     |                                                                                                    |         (3,150                            | )  |   |        7,737 |   |   |        4,392 |   |   |           4,309 |   |   |   |                     - |   |   |                  - |   |
|                    Interest expense, net                                     |                                                                                                    |     (22,056                                                   | )  |   |    (23,289 | )  |   |    (23,497 | )  |   |        (10,257 | )  |   |   |        (16,455 | )  |   |    (28,940 | )  |
|                    (Provision) benefit for income taxes                      |                                                                                                    |           3,122                 |   |   |      (7,907 | )  |   |       (4,617 | )  |   |         (4,459 | )  |   |   |                     - |   |   |           (132 | )  |
|                    Amortization of debt discount and deferred financing fees |                                                                                                    |           1,530                 |   |   |         1,498 |   |   |         1,527 |   |   |               629 |   |   |   |              1,197 |   |   |         2,051 |   |
|                    Provision for doubtful accounts                           |                                                                                                    |           (233                  | )  |   |          (464 | )  |   |           (107 | )  |   |             (236 | )  |   |   |              (144 | )  |   |          (376 | )  |
|                    Loss on operating lease agreement                         |                                                                                                    |              961 |   |   |                  - |   |   |                  - |   |   |                     - |   |   |   |                     - |   |   |                  - |   |
|                    Loss (gain) on sales of plant, property and equipment     |                                                                                                    |         (1,989                            | )  |   |              79 |   |   |                  - |   |   |                     - |   |   |   |                     - |   |   |                  - |   |
|                    Net cash provided by (used in) operating activities       | $                                                                                                       |        28,105                                  |   | $ |      29,262 |   | $ |       37,421 |   | $ |         (2,458 | )  |   | $ |         40,227 |   | $ |      26,498 |   |
|                                                                              |                                                                                                    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**Item 7.*****Management’s      Discussion and      Analysis of Financial Condition and Results of      Operations***

*The      following discussion of our financial condition and results of operations should      be read together with our consolidated financial statements and the accompanying      notes included elsewhere in this report. The consolidated financial statements,      and the notes thereto, have been prepared in accordance with U.S. GAAP. All      amounts are in U.S. dollars except otherwise indicated.*

**Uncertainty      of Forward Looking Statements and Information**

**General**

*Who’s Who *
*The National      Dean’s List*

----

**Basis      of Presentation**

**Company      Background**

----

----

**Critical      Accounting Policies**

***Sales      Returns and Allowances.***

***Allowance      for Doubtful Accounts and Reserve on Independent Sales Representative Advances.***

***Goodwill      and Other      Intangible Assets***

----

***Long-lived      Tangible and Intangible Assets with Definite Lives.***

***Revenue      Recognition.***

**    *Income      Taxes. ***

**Significant      Developments**

----

----

**Results      of Operations**

|                                                                 | **Parent                  Holdings**              |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                                                                 | **Fiscal                  Year Ended**                                                                             |   | **%                  of** |   | **Fiscal                  Year Ended** |   | **%                  of** |   | **Fiscal                  Year Ended** | **%                  of** |   |
|                                                                 | **August                  25, 2007**                                                                          |   | **Net                  Sales** |   | **August                  26, 2006**  |   | **Net                  Sales** |   | **August                  27, 2005**  |   | **Net                  Sales** |   |
|                                                                 | ($                  in millions)                       |   |
|                    Net sales                                    | $                                                                                                                  |             315.7 |   |   100.0                  % |   | $ |           320.9 |   | 100.0% |   | $ |          313.8 |   | 100.0% |   |
|                    Cost of sales                                |                                                                                                               |             140.6 |   |     44.5                  % |   |   |           134.3 |   | 41.8% |   |   |          134.4 |   | 42.8% |   |
|                    Gross profit                                 |                                                                                                               |             175.1 |   |     55.5                  % |   |   |           186.6 |   | 58.2% |   |   |          179.4 |   | 57.2% |   |
|                    Selling, general and administrative expenses |                                                                                                               |             135.8 |   |     43.0                  % |   |   |           144.1 |   | 44.9% |   |   |          144.6 |   | 46.1% |   |
|                    Other charges                                |                                                                                                               |               28.0 |   |       8.9                  % |   |   |                 - |   | 0.0% |   |   |                - |   | 0.0% |   |
|                    Operating income                             |                                                                                                               |               11.3 |   |       3.6                  % |   |   |             42.5 |   | 13.3% |   |   |            34.8 |   | 11.1% |   |
|                    Interest expense, net                        |                                                                                                               |               59.3 |   |     18.8                  % |   |   |             39.3 |   | 12.3% |   |   |            31.3 |   | 10.0% |   |
|                    Income (loss) before income taxes            |                                                                                                               |             (48.0 | )  |    (15.2)% |   |   |               3.2 |   | 1.0% |   |   |              3.5 |   | 1.1% |   |
|                    Provision (benefit) for income taxes         |                                                                                                               |             (15.4 | )  |      (4.9)% |   |   |               2.2 |   | 0.7% |   |   |              1.7 |   | 0.5% |   |
|                    Net income (loss)                            | $                                                                                                                  |             (32.6 | )  |    (10.3)% |   | $ |               1.0 |   | 0.3% |   | $ |              1.8 |   | 0.6% |   |

|                                                                 | **Intermediate                  Holdings**              |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
|                                                                 | **Fiscal                  year ended**                                                                                   |   | **%                  of** |   | **Fiscal                  year ended** |   | **%                  of** |   | **Fiscal                  year ended** | **%                  of** |   |
|                                                                 | **August                  25, 2007**                                                                                |   | **Net                  Sales** |   | **August                  26, 2006**  |   | **Net                  Sales** |   | **August                  27, 2005**  |   | **Net                  Sales** |   |
|                                                                 | ($                  in millions)                             |   |
|                    Net sales                                    | $                                                                                                                        |             315.7 |   | 100.0% |   | $ |           320.9 |   | 100.0% |   | $ |          313.8 |   | 100.0% |   |
|                    Cost of sales                                |                                                                                                                     |             140.6 |   | 44.5% |   |   |           134.3 |   | 41.8% |   |   |          134.4 |   | 42.8% |   |
|                    Gross profit                                 |                                                                                                                     |             175.1 |   | 55.5% |   |   |           186.6 |   | 58.2% |   |   |          179.4 |   | 57.2% |   |
|                    Selling, general and administrative expenses |                                                                                                                     |             135.8 |   | 43.0% |   |   |           144.1 |   | 44.9% |   |   |          144.6 |   | 46.1% |   |
|                    Other charges                                |                                                                                                                     |               28.0 |   | 8.9% |   |   |                 - |   | 0.0% |   |   |                - |   | 0.0% |   |
|                    Operating income                             |                                                                                                                     |               11.3 |   | 3.6% |   |   |             42.5 |   | 13.3% |   |   |            34.8 |   | 11.1% |   |
|                    Interest expense, net                        |                                                                                                                     |               33.5 |   | 10.6% |   |   |             34.2 |   | 10.7% |   |   |            31.3 |   | 10.0% |   |
|                    Income (loss) before income taxes            |                                                                                                                     |             (22.2 | )  | (7.0)% |   |   |               8.3 |   | 2.6% |   |   |              3.5 |   | 1.1% |   |
|                    Provision (benefit) for income taxes         |                                                                                                                     |               (7.2 | )  | (2.3)% |   |   |               4.0 |   | 1.3% |   |   |              1.7 |   | 0.5% |   |
|                    Net income (loss)                            | $                                                                                                                        |             (15.0 | )  | (4.7)% |   | $ |               4.3 |   | 1.3% |   | $ |              1.8 |   | 0.6% |   |

|                                                                 | **AAC**                                 |
|----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|                                                                 | **Fiscal                  year ended**                                                                   |   | **%                  of** |   | **Fiscal                  year ended** |   | **%                  of** |   | **Fiscal                  year ended** | **%                  of** |   |
|                                                                 | **August                  25, 2007**                                                                |   | **Net                  Sales** |   | **August                  26, 2006**  |   | **Net                  Sales** |   | **August                  27, 2005**  |   | **Net                  Sales** |   |
|                                                                 | ($                  in millions)             |   |
|                    Net sales                                    | $                                                                                                        |             315.7 |   | 100.0% |   | $ |           320.9 |   | 100.0% |   | $ |          313.8 |   | 100.0% |   |
|                    Cost of sales                                |                                                                                                     |             140.6 |   | 44.5% |   |   |           134.3 |   | 41.8% |   |   |          134.4 |   | 42.8% |   |
|                    Gross profit                                 |                                                                                                     |             175.1 |   | 55.5% |   |   |           186.6 |   | 58.2% |   |   |          179.4 |   | 57.2% |   |
|                    Selling, general and administrative expenses |                                                                                                     |             135.8 |   | 43.0% |   |   |           144.1 |   | 44.9% |   |   |          144.6 |   | 46.1% |   |
|                    Other charges                                |                                                                                                     |               28.0 |   | 8.9% |   |   |                 - |   | 0.0% |   |   |                - |   | 0.0% |   |
|                    Operating income                             |                                                                                                     |               11.3 |   | 3.6% |   |   |             42.5 |   | 13.3% |   |   |            34.8 |   | 11.1% |   |
|                    Interest expense, net                        |                                                                                                     |               22.0 |   | 7.0% |   |   |             23.3 |   | 7.3% |   |   |            23.5 |   | 7.5% |   |
|                    Income (loss) before income taxes            |                                                                                                     |             (10.7 | )  | (3.4)% |   |   |             19.2 |   | 6.0% |   |   |            11.3 |   | 3.6% |   |
|                    Provision (benefit) for income taxes         |                                                                                                     |               (3.1 | )  | (1.0)% |   |   |               7.9 |   | 2.5% |   |   |              4.6 |   | 1.5% |   |
|                    Net income (loss)                            | $                                                                                                        |               (7.6 | )  | (2.4)% |   | $ |             11.3 |   | 3.5% |   | $ |              6.7 |   | 2.1% |   |

----

**Fiscal      Year Ended August 25, 2007 Compared to Fiscal Year Ended August 26,      2006**

***Net      Sales.***

***Class Rings.***

***Yearbooks.***

***Graduation      Products.***

*** Achievement      Publications.***
*Who’s Who Among American      High School Students*
*National Dean’s List *
*National *
*Dean’s List*

***Other.***

----

***Gross      Profit.***

| ·   | $13.4                million decline in achievement publications gross profit directly                related                to the decline in net sales and the increase in cost per                publication |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.9                million decline in retail class rings gross profit directly related                to the                decline in net sales, the change in product sales mix resulting from                continuing increases in gold costs and the impact of the gold price                increases |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.6                million increase in graduation products gross profit, mainly due                to cost                benefits resulting from continuing manufacturing improvements and                a $0.7                million write-off of obsolete graduation products inventory in fiscal                2006 |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $0.3                million improvement in yearbooks gross profit resulting mainly from                efficiencies from continuous improvements in our manufacturing process,                including ongoing investments in equipment and                technology |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.0                million increase in on-campus ring sales gross profit, primarily                related                to increased revenue partially offset by the impact of gold price                increases |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.0                million increase in other segment gross profit of which $0.7 is                attributable to the Powers acquisition and the remaining increase is                mainly due to higher sales offset by unfavorable product                mix |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Selling,      General and Administrative Expenses.***

| ·   | $4.7                million decrease in marketing expenses for achievement publications                directly related to producing only one *Who’s Who Among American High                School Students* publications in fiscal 2007 as well as not publishing                the *National**Dean’s List* in fiscal                2007 |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.3                million decrease in yearbook marketing primarily due to the elimination                of                the official yearbook college program expenses that were incurred                in                fiscal 2006 and reduced field sales                expenses |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $2.0                million gain on the sale of the frontage property located at our                Austin,                Texas facility |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.6                million decrease in legal settlement costs and legal fees related                to the                settlement with Frederick Goldman, Inc., in fiscal                2006 |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $0.9                million decrease of legal and professional fees and expenses paid                in                connection with the investigation of potential acquisitions in fiscal                2006 |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $0.8                million increase of fees paid to independent consultants in connection                with the design and partial implementation of our information technology                system and assistance in becoming ready to comply with Sarbanes-Oxley                requirements in fiscal 2008 |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $0.5                million increase of management fees and                expenses |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | $0.4                million increase in professional                fees |
|--------------------|--------------------------------------------------------------------------|

***Other      Charges.***

----

***Operating      Income.***

***Interest      Expense, Net.  ***

**    **
*** ***

***Provision      (Benefit) for Income Taxes.  ***

**Fiscal      Year Ended August 26, 2006 Compared to Fiscal Year Ended August 27,      2005**

***Net      Sales.***

***Class Rings.***

***Yearbooks.***

***Graduation      Products.***

----

***Achievement      Publications.***
*Who’s Who Among American High School Students*

***Other.***

***Gross      Profit.***

***Selling,      General and Administrative Expenses.***

***Operating      Income.***

***Interest      Expense, Net.***

----

***Provision      for Income Taxes.***

**Liquidity      and Capital Resources**

***Operating      Activities.  ***

***Investing      Activities.  ***

***Financing      Activities.***

***Capital      Resources.***

----

**Off      Balance-Sheet Obligations**

***Gold      Consignment Agreement.***

***Letters      of      Credit.***

----

**Contractual      Obligations**

|                                                              | **Fiscal**     |                                                                | **Fiscal**     |    | **Fiscal**                                                          |   | **Fiscal**     |                                                                | **Fiscal**     |    |                                                                                  |   |      |                                                                            |   |    |
|-------------------------------------------------------------------|----------------|---------------------------------------------------------------------|----------------|---------|---------------------------------------------------------------------|--------|----------------|---------------------------------------------------------------------|----------------|---------|---------------------------------------------------------------------------------------|--------|-----------|---------------------------------------------------------------------------------|--------|---------|
|                                                              | **2008**  |                                                                | **2009**  |    | **2010**                                                       |   | **2011**  |                                                                | **2012**  |    | **Thereafter**                                                                        |   | **Total** |                                                                            |
| Senior                  PIK Notes (principal)                     |  $        |            - |           |  $ |            - |   |  $        |            - |           |  $ |               - |   |  $   |              - |   |  $ |  150,000 |   |  $ |     150,000 |   |
| Mandatory                  Redeemable Preferred Stock             |           |            - |           |    |            - |   |           |            - |           |    |               - |   |      |              - |   |    |      7,500 |   |   |         7,500 |   |
| Mandatory                  Redeemable Preferred Stock (dividends) |           |            - |           |    |            - |   |           |            - |           |    |               - |   |      |              - |   |    |    12,155 |   |   |       12,155 |   |
| 10.25%                  Notes (principal)                         |           |            - |           |    |            - |   |           |            - |           |    |               - |   |      |              - |   |    |  131,534 |   |   |     131,534 |   |
| 8.25%                  Senior Subordinated Debt (principal)       |           |            - |           |    |            - |   |           |            - |           |    |               - |   |      |  150,000                                                                   |   |    |              - |   |   |     150,000 |   |
| Interest                  on fixed rate debt(a)                   |           |   12,547                                                  |           |    |  19,114                                                        |   |           |   25,854                                                  |           |    |     25,854                                                        |   |      |    69,129                                                        |   |    |  181,118 |   |   |     333,616 |   |
| Term                  loan (principal)                            |           |        900                       |           |    |       900                             |   |           |        900                       |           |    |     84,377                                                        |   |      |              - |   |    |              - |   |   |       87,077 |   |
| Term                  loan (interest)(b)                          |           |     7,472                                       |           |    |    7,287                                             |   |           |     7,210                                       |           |    |       7,143                                             |   |      |              - |   |    |              - |   |   |       29,112 |   |
| Revolver                                                          |           |            - |           |    |            - |   |           |     7,805                                       |           |    |               - |   |      |              - |   |    |              - |   |   |         7,805 |   |
| Operating                  leases(c)                              |           |     1,509                                       |           |    |       796                             |   |           |        528                       |           |    |          404                             |   |      |         337                             |   |    |      1,610 |   |   |         5,184 |   |
| Capital                  leases(d)                                |           |        174                       |           |    |            - |   |           |            - |           |    |               - |   |      |              - |   |    |              - |   |   |            174 |   |
| Management                  agreement(e)                          |           |     3,665                                       |           |    |    3,665                                             |   |           |     3,665                                       |           |    |       3,665                                             |   |      |      3,665                                             |   |    |      5,802 |   |   |       24,127 |   |
| Postretirement                  plans(f)                          |           |        990                       |           |    |    1,036                                             |   |           |     1,056                                       |           |    |       1,058                                             |   |      |      1,070                                             |   |    |      5,475 |   |   |       10,685 |   |
| Total                                                             |  $        |   27,257                                                  |           |  $ |  32,798                                                        |   |  $        |   47,018                                                  |           |  $ |   122,501                                                                   |   |  $   |  224,201                                                                   |   |  $ |  495,194 |   |  $ |     948,969 |   |

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)    |   | Represents                interest payments due on the senior PIK notes, 10.25% Notes and 8.25%                Notes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (b)    |   | Assumes                an interest rate on the term loan of 8.5%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (c)    |   | Some                of our rental property leases contain options to renew the leased                space                for periods up to an additional ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (d)    |   | The                total balance of gross capital lease assets is $5,022 as                of                August 25, 2007 and $5,022 as of August 26, 2006, with accumulated                depreciation of $2,053 and $1,470, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (e)    |   | AAC                and Intermediate Holdings have entered into a management agreement                with an                affiliate of Fenway Partners Capital Fund II, L.P. pursuant to which                they,                among other things, agreed to pay such affiliate an annual fee equal                to                the greater of $3.0 million or 5% of the previous fiscal year’s                EBITDA (as defined in the agreement). In arriving at the future                obligations above, 5% of fiscal 2007 EBITDA was used. This agreement                has a                10-year minimum term. See “Certain Relationships and Related                Transactions.” |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (f)    |   | CBI                provides certain healthcare and life insurance benefits for former                employees of L.G. Balfour Company, Inc. Certain hourly employees                of Taylor                are covered by a defined benefit pension plan established by                Taylor.                                                                                                                                                                                                                                                                                                                                                                                                                                   |

**Seasonality**

----

**Recent      Accounting Pronouncements**

**Item 7A.*****Quantitative      And Qualitative      Disclosures About Market Risk***

***Interest      Rate Risk.***

***Semi-Precious      Stones.***

***Gold.***

----

**Item 8.*****Financial      Statement and      Supplementary Data***

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

*. *

*/s/      DELOITTE & TOUCHE LLP*

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

*. *

*/s/      DELOITTE & TOUCHE LLP*

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

*. *

*/s/      DELOITTE & TOUCHE LLP*

----

**AMERICAN      ACHIEVEMENT GROUP HOLDING CORP.**

|                                                                                                                                                  |                                                                                                                                                    | **Parent                  Holdings**           |                                                                                                                              |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                  |                                                                                                                                                    | **August                  25, 2007**                     |                                                                                                                              | **August                  26, 2006**  |   |
|                                                                                                                                                  |                                                                                                                                                    | **(Dollars                  in thousands)**    |                                                                                                                              |
| **ASSETS**                                                                                                              |                                                                                                                                                    |
| Cash                  and cash equivalents                                                                                                            |                                                                                                                                                    | $                                                             |                   1,454                 |   | $ |                   3,404 |   |
| Accounts                  receivable, net of allowance for doubtful accounts of $2,110 and                  $2,330,                  respectively     |                 43,039                                                  |                                                          |                                                                                                                              |                 40,226 |   |
| Inventories,                  net                                                                                                                     |                                                                                                                                                    |                                                          |                 31,158                            |   |   |                 31,438 |   |
| Deferred                  tax asset                                                                                                                   |                                                                                                                                                    |                                                          |                   3,731                 |   |   |                   5,582 |   |
| Prepaid                  expenses and other current assets, net                                                                                       |                                                                                                                                                    |                                                          |                 18,317                            |   |   |                 13,944 |   |
| Total                  current assets                                                                                                                 |                                                                                                                                                    |                                                          |                 97,699                            |   |   |                 94,594 |   |
|                                                                                                                                                  |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |
| Property,                  plant and equipment, net                                                                                                   |                                                                                                                                                    |                                                          |                 70,653                            |   |   |                 76,054 |   |
| Goodwill                                                                                                                                              |                                                                                                                                                    |                                                          |               173,277                                       |   |   |               184,565 |   |
| Other                  intangible assets, net                                                                                                         |                                                                                                                                                    |                                                          |               123,883                                       |   |   |               148,595 |   |
| Other                  assets                                                                                                                         |                                                                                                                                                    |                                                          |                 10,554                            |   |   |                   7,468 |   |
| Total                  assets                                                                                                                         |                                                                                                                                                    | **$**                                                         | **              476,066**                                   |   | **$** | **              511,276** |   |
| **LIABILITIES                  AND STOCKHOLDERS’ DEFICIT**                                                   |                                                                                                                                                    |
| Book                  overdraft                                                                                                                       |                                                                                                                                                    | $                                                             |                   5,082                 |   | $ |                   2,147 |   |
| Accounts                  payable                                                                                                                     |                                                                                                                                                    |                                                          |                 10,590                            |   |   |                 13,585 |   |
| Customer                  deposits                                                                                                                    |                                                                                                                                                    |                                                          |                 11,771                            |   |   |                 11,392 |   |
| Accrued                  expenses                                                                                                                     |                                                                                                                                                    |                                                          |                 20,361                            |   |   |                 23,382 |   |
| Deferred                  revenue                                                                                                                     |                                                                                                                                                    |                                                          |                   4,460                 |   |   |                   2,617 |   |
| Accrued                  interest                                                                                                                     |                                                                                                                                                    |                                                          |                   5,550                 |   |   |                   5,997 |   |
| Current                  portion of long-term debt                                                                                                    |                                                                                                                                                    |                                                          |                      900 |   |   |                   1,090 |   |
| Total                  current liabilities                                                                                                            |                                                                                                                                                    |                                                          |                 58,714                            |   |   |                 60,210 |   |
|                                                                                                                                                  |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |
| Long-term                  debt, net of current portion                                                                                               |                                                                                                                                                    |                                                          |               537,680                                       |   |   |               525,734 |   |
| Mandatory                  redeemable preferred stock, $.01 par value, 15,000 shares authorized,                  7,500 shares issued and outstanding |                   7,500                                       |                                                          |                                                                                                                              |                   7,500 |   |
| Deferred                  tax liabilities                                                                                                             |                                                                                                                                                    |                                                          |                   9,736                 |   |   |                 25,760 |   |
| Other                  long-term liabilities                                                                                                          |                                                                                                                                                    |                                                          |                   6,619                 |   |   |                   6,858 |   |
| Total                  liabilities                                                                                                                    |                                                                                                                                                    |                                                          |               620,249                                       |   |   |               626,062 |   |
|                                                                                                                                                  |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |
| Commitments                  and contingencies                                                                                                        |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |
|                                                                                                                                                  |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |
| *Stockholders’                  deficit:*                                                                                                       |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |
| Common                  stock, $.01 par value, 1,250,000 shares authorized, 505,460 shares                  issued                  and outstanding   |                          5 |                                                          |                                                                                                                              |                          5 |   |
| Additional                  paid-in capital                                                                                                           |                                                                                                                                                    |                                                          |              (124,045                                            | )  |   |              (124,045 | )  |
| Accumulated                  earnings (deficit)                                                                                                       |                                                                                                                                                    |                                                          |                (23,297                                 | )  |   |                   9,254 |   |
| Accumulated                  other comprehensive income                                                                                               |                                                                                                                                                    |                                                          |                   3,154                 |   |   |                           - |   |
| Total                  stockholders’ deficit                                                                                                    |                                                                                                                                                    |                                                          |              (144,183                                            | )  |   |              (114,786 | )  |
|                                                                                                                                                  |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |
| Total                  liabilities and stockholders’ deficit                                                                                    |                                                                                                                                                    | **$**                                                         | **              476,066**                                   |   | **$** | **              511,276** |   |
|                                                                                                                                                  |                                                                                                                                                    |                                                          |                                                                                                                              |   |   |   |   |

----

**AAC      GROUP HOLDING CORP.**

|                                                                                                                                              | **Intermediate                  Holdings**                                                                     |                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                                                                                                                              | **August                  25, 2007**                                                                           |                                                                                          | **August                  26, 2006**  |   |
|                                                                                                                                              | **(Dollars                  in thousands)**                                                                         |                                                                                          |
| **ASSETS**                                                                                                               |                                                                                                                |
| Cash                  and cash equivalents                                                                                                        | $                                                                                                                   |              1,168           |   | $ |              2,904 |   |
| Accounts                  receivable, net of allowance for doubtful accounts of $2,110 and                  $2,330,                  respectively |            43,039                                            |                                                                                          |   |            40,226 |   |
| Inventories,                  net                                                                                                                 |                                                                                                                |            31,158                      |   |   |            31,438 |   |
| Deferred                  tax asset                                                                                                               |                                                                                                                |              3,731           |   |   |              5,582 |   |
| Prepaid                  expenses and other current assets, net                                                                                   |                                                                                                                |            18,317                      |   |   |            13,944 |   |
| Total                  current assets                                                                                                             |                                                                                                                |            97,413                      |   |   |            94,094 |   |
|                                                                                                                                              |                                                                                                                |                                                                                          |   |   |   |   |
| Property,                  plant and equipment, net                                                                                               |                                                                                                                |            70,653                      |   |   |            76,054 |   |
| Goodwill                                                                                                                                          |                                                                                                                |          173,277                                 |   |   |          184,565 |   |
| Other                  intangible assets, net                                                                                                     |                                                                                                                |          116,232                                 |   |   |          139,592 |   |
| Other                  assets                                                                                                                     |                                                                                                                |            10,554                      |   |   |              7,468 |   |
| Total                  assets                                                                                                                     | **$**                                                                                                               | **         468,129**                             |   | **$** | **         501,773** |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                          |                                                                                                                |
| Book                  overdraft                                                                                                                   | $                                                                                                                   |              5,082           |   | $ |              2,147 |   |
| Accounts                  payable                                                                                                                 |                                                                                                                |            10,590                      |   |   |            13,585 |   |
| Customer                  deposits                                                                                                                |                                                                                                                |            11,771                      |   |   |            11,392 |   |
| Accrued                  expenses                                                                                                                 |                                                                                                                |            20,299                      |   |   |            23,292 |   |
| Deferred                  revenue                                                                                                                 |                                                                                                                |              4,460           |   |   |              2,617 |   |
| Accrued                  interest                                                                                                                 |                                                                                                                |              5,550           |   |   |              5,997 |   |
| Current                  portion of long-term debt                                                                                                |                                                                                                                |                900 |   |   |              1,090 |   |
| Total                  current liabilities                                                                                                        |                                                                                                                |            58,652                      |   |   |            60,120 |   |
|                                                                                                                                              |                                                                                                                |                                                                                          |   |   |   |   |
| Long-term                  debt, net of current portion                                                                                           |                                                                                                                |          361,836                                 |   |   |          371,537 |   |
| Deferred                  tax liabilities                                                                                                         |                                                                                                                |            19,731                      |   |   |            27,523 |   |
| Other                  long-term liabilities                                                                                                      |                                                                                                                |              3,034           |   |   |              5,879 |   |
| Total                  liabilities                                                                                                                |                                                                                                                |          443,253                                 |   |   |          465,059 |   |
|                                                                                                                                              |                                                                                                                |                                                                                          |   |   |   |   |
| Commitments                  and contingencies                                                                                                    |                                                                                                                |                                                                                          |   |   |   |   |
|                                                                                                                                              |                                                                                                                |                                                                                          |   |   |   |   |
| *Stockholders’                  equity:*                                                                                                    |                                                                                                                |                                                                                          |   |   |   |   |
| Common                  stock, $.01 par value, 1,000 shares authorized, 100 shares issued                  and                  outstanding       |                    - |                                                                                          |   |                    - |   |
| Additional                  paid-in capital                                                                                                       |                                                                                                                |            24,144                      |   |   |            24,144 |   |
| Accumulated                  earnings (deficit)                                                                                                   |                                                                                                                |            (2,422                      | )  |   |            12,570 |   |
| Accumulated                  other comprehensive income                                                                                           |                                                                                                                |              3,154           |   |   |                    - |   |
| Total                  stockholders’ equity                                                                                                 |                                                                                                                |            24,876                      |   |   |            36,714 |   |
|                                                                                                                                              |                                                                                                                |                                                                                          |   |   |   |   |
| Total                  liabilities and stockholders’ equity                                                                                 | **$**                                                                                                               | **         468,129**                             |   | **$** | **         501,773** |   |
|                                                                                                                                              |                                                                                                                |                                                                                          |   |   |   |   |

----

**AMERICAN      ACHIEVEMENT CORPORATION**

|                                                                                                                                              | **AAC**                                                                                                                                  |                                                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                              | **August                  25, 2007**                                                                                                               |                                                                                                                              | **August                  26, 2006**  |   |
|                                                                                                                                              | **(Dollars                  in thousands)**                                                                                              |                                                                                                                              |
| **ASSETS**                                                                                                               |                                                                                                                                                    |
| Cash                  and cash equivalents                                                                                                        | $                                                                                                                                                       |                      620 |   | $ |                   2,381 |   |
| Accounts                  receivable, net of allowance for doubtful accounts of $2,110 and                  $2,330,                  respectively |                 43,039                                                  |                                                                                                                              |   |                 40,226 |   |
| Inventories,                  net                                                                                                                 |                                                                                                                                                    |                 31,158                            |   |   |                 31,438 |   |
| Deferred                  tax asset                                                                                                               |                                                                                                                                                    |                   3,731                 |   |   |                   5,582 |   |
| Prepaid                  expenses and other current assets, net                                                                                   |                                                                                                                                                    |                 18,317                            |   |   |                 13,944 |   |
| Total                  current assets                                                                                                             |                                                                                                                                                    |                 96,865                            |   |   |                 93,571 |   |
|                                                                                                                                              |                                                                                                                                                    |                                                                                                                              |   |   |   |   |
| Property,                  plant and equipment, net                                                                                               |                                                                                                                                                    |                 70,653                            |   |   |                 76,054 |   |
| Goodwill                                                                                                                                          |                                                                                                                                                    |               173,277                                       |   |   |               184,565 |   |
| Other                  intangible assets, net                                                                                                     |                                                                                                                                                    |               113,970                                       |   |   |               136,884 |   |
| Other                  assets                                                                                                                     |                                                                                                                                                    |                 10,554                            |   |   |                   7,468 |   |
| Total                  assets                                                                                                                     | **$**                                                                                                                                                   | **            465,319**                                               |   | **$** | **            498,542** |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                          |                                                                                                                                                    |
| Book                  overdraft                                                                                                                   | $                                                                                                                                                       |                   5,082                 |   | $ |                   2,147 |   |
| Accounts                  payable                                                                                                                 |                                                                                                                                                    |                 10,590                            |   |   |                 13,585 |   |
| Customer                  deposits                                                                                                                |                                                                                                                                                    |                 11,771                            |   |   |                 11,392 |   |
| Accrued                  expenses                                                                                                                 |                                                                                                                                                    |                 20,284                            |   |   |                 23,290 |   |
| Deferred                  revenue                                                                                                                 |                                                                                                                                                    |                   4,460                 |   |   |                   2,617 |   |
| Accrued                  interest                                                                                                                 |                                                                                                                                                    |                   5,550                 |   |   |                   5,997 |   |
| Current                  portion of long-term debt                                                                                                |                                                                                                                                                    |                      900 |   |   |                   1,090 |   |
| Total                  current liabilities                                                                                                        |                                                                                                                                                    |                 58,637                            |   |   |                 60,118 |   |
|                                                                                                                                              |                                                                                                                                                    |                                                                                                                              |   |   |   |   |
| Long-term                  debt, net of current portion                                                                                           |                                                                                                                                                    |               243,982                                       |   |   |               264,720 |   |
| Deferred                  tax liabilities                                                                                                         |                                                                                                                                                    |                 30,639                            |   |   |                 34,307 |   |
| Other                  long-term liabilities                                                                                                      |                                                                                                                                                    |                   3,006                 |   |   |                   5,851 |   |
| Total                  liabilities                                                                                                                |                                                                                                                                                    |               336,264                                       |   |   |               364,996 |   |
|                                                                                                                                              |                                                                                                                                                    |                                                                                                                              |   |   |   |   |
| Commitments                  and contingencies                                                                                                    |                                                                                                                                                    |                                                                                                                              |   |   |   |   |
|                                                                                                                                              |                                                                                                                                                    |                                                                                                                              |   |   |   |   |
| *Stockholders’                  equity:*                                                                                                    |                                                                                                                                                    |                                                                                                                              |   |   |   |   |
| Common                  stock, $.01 par value, 1,000 shares authorized, 100 shares issued                  and                  outstanding       |                          - |                                                                                                                              |   |                          - |   |
| Additional                  paid-in capital                                                                                                       |                                                                                                                                                    |               109,046                                       |   |   |               109,046 |   |
| Accumulated                  earnings                                                                                                             |                                                                                                                                                    |                 16,855                            |   |   |                 24,500 |   |
| Accumulated                  other comprehensive income                                                                                           |                                                                                                                                                    |                   3,154                 |   |   |                          - |   |
| Total                  stockholders’ equity                                                                                                 |                                                                                                                                                    |               129,055                                       |   |   |               133,546 |   |
|                                                                                                                                              |                                                                                                                                                    |                                                                                                                              |   |   |   |   |
| Total                  liabilities and stockholders’ equity                                                                                 | **$**                                                                                                                                                   | **            465,319**                                               |   | **$** | **            498,542** |   |
|                                                                                                                                              |                                                                                                                                                    |                                                                                                                              |   |   |   |   |

----

**AMERICAN      ACHIEVEMENT GROUP HOLDING CORP.**

|                                                          |   | **Parent                  Holdings**              |                                                                                       |
|---------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
|                                                          |   | **For                  the year ended**                |                                                                                       |
|                                                          |   | **August                  25, 2007**                                       |                                                                                       | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
|                                                          |   | **(Dollars                  in thousands)**       |                                                                                       |
| Net                  sales                                    |   | $                                                                               |             315,736            |   | $ |             320,910 |   | $ |         313,788 |   |
| Cost                  of sales                                |   |                                                                            |             140,603            |   |   |             134,258 |   |   |         134,375 |   |
| Gross                  profit                                 |   |                                                                            |             175,133            |   |   |             186,652 |   |   |         179,413 |   |
| Selling,                  general and administrative expenses |   |                                                                            |             135,831            |   |   |             144,129 |   |   |         144,592 |   |
| Other                  charges                                |   |                                                                            |               28,013 |   |   |  -- |   |   |  -- |   |
| Operating                  income                             |   |                                                                            |               11,289 |   |   |               42,523 |   |   |           34,821 |   |
| Interest                  expense, net                        |   |                                                                            |               59,267 |   |   |               39,331 |   |   |           31,271 |   |
| Income                  (loss) before income taxes            |   |                                                                            |              (47,978      | )  |   |                 3,192 |   |   |             3,550 |   |
| Provision                  (benefit) for income taxes         |   |                                                                            |              (15,427      | )  |   |                 2,216 |   |   |             1,738 |   |
| Net                  income (loss)                            |   | **$**                                                                           | **           (32,551**              | **)**  | **$** | **                  976** |   | **$** | **           1,812** |   |

----

**AAC      GROUP HOLDING CORP.**

|                                                          |   | **Intermediate                  Holdings**      |                                                                                       |
|---------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
|                                                          |   | **For                  the year ended**         |                                                                                       |
|                                                          |   | **August                  25, 2007**                                |                                                                                       | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
|                                                          |   | **(Dollars                  in thousands)**          |                                                                                       |
| Net                  sales                                    |   | $                                                                        |             315,736            |   | $ |             320,910 |   | $ |              313,788 |   |
| Cost                  of sales                                |   |                                                                     |             140,603            |   |   |             134,258 |   |   |              134,375 |   |
| Gross                  profit                                 |   |                                                                     |             175,133            |   |   |             186,652 |   |   |              179,413 |   |
| Selling,                  general and administrative expenses |   |                                                                     |             135,831            |   |   |             144,129 |   |   |              144,592 |   |
| Other                  charges                                |   |                                                                     |               28,013 |   |   |  -- |   |   |  -- |   |
| Operating                  income                             |   |                                                                     |               11,289 |   |   |               42,523 |   |   |                34,821 |   |
| Interest                  expense, net                        |   |                                                                     |               33,514 |   |   |               34,246 |   |   |                31,271 |   |
| Income                  (loss) before income taxes            |   |                                                                     |             (22,225            | )  |   |                 8,277 |   |   |                  3,550 |   |
| Provision                  (benefit) for income taxes         |   |                                                                     |               (7,233 | )  |   |                 3,985 |   |   |                  1,738 |   |
| Net                  income (loss)                            |   | **$**                                                                    | **          (14,992**                    | **)**  | **$** | **              4,292** |   | **$** | **                1,812** |   |

----

**AMERICAN      ACHIEVEMENT CORPORATION**

|                                                          | **AAC**                                           |                                                                                                                                 |
|---------------------------------------------------------------|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                          | **For                  the year ended**           |                                                                                                                                 |
|                                                          |                                                                            | **August                  25, 2007**                                                                                                 |   | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
|                                                          | **(Dollars                  in Thousands)**       |                                                                                                                                 |
| Net                  sales                                    | $                                                                               |                    315,736            |   |  $ |               320,910 |   |  $ |               313,788 |   |
| Cost                  of sales                                |                                                                            |                    140,603            |   |   |               134,258 |   |   |               134,375 |   |
| Gross                  profit                                 |                                                                            |                    175,133            |   |   |               186,652 |   |   |               179,413 |   |
| Selling,                  general and administrative expenses |                                                                            |                    135,831            |   |   |               144,129 |   |   |               144,592 |   |
| Other                  charges                                |                                                                            |                      28,013 |   |   |  -- |   |   |  -- |   |
| Operating                  income                             |                                                                            |                      11,289 |   |   |                 42,523 |   |   |                 34,821 |   |
| Interest                  expense, net                        |                                                                            |                      22,056 |   |   |                 23,289 |   |   |                 23,497 |   |
| Income                  (loss) before income taxes       |                                                                            |                    (10,767            | )  |   |                 19,234 |   |   |                 11,324 |   |
| Provision                  (benefit) for income taxes         |                                                                            |                      (3,122 | )  |   |                   7,907 |   |   |                   4,617 |   |
| Net                  income (loss)                            | **$**                                                                           | **                    (7,645**   | **)**  | ** $** | **              11,327** |   | ** $** | **                6,707** |   |

----

**AMERICAN      ACHIEVEMENT GROUP HOLDING CORP.**

|                                                                                                                        |                                                                                                                      |                                                                            |        |    |                                                                      |    |            |                                                                                              |                                    | **Accumulated** |                                                                                                    |      |    |                                                                                                              |    |    |                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|-------------|---------|---------------------------------------------------------------------------|---------|-----------------|---------------------------------------------------------------------------------------------------|-----------------------------------------|-----------------|---------------------------------------------------------------------------------------------------------|-----------|---------|-------------------------------------------------------------------------------------------------------------------|---------|---------|--------------------------------------------------------------------------------------------------|
|                                                                                                                        |                                                                                                                      |                                                                            |        |    |                                                                      |    | **Additional**  |                                                                                              | **other**                               |            |                                                                                                    |      |    |                                                                                                              |    |    |
|                                                                                                                        | **Common                  Stock**                                                                          |                                                                            | **Paid-in** |    | **comprehensive**                                                         |    | **Accumulated** |                                                                                              |                                    |            |                                                                                                    |
| **Parent                  Holdings**                                                                                        | **Shares**                                                                                                                |                                                                            | **Amount**  |    | **Capital**                                                               |    | **income**      |                                                                                              | **earnings                  (deficit)** |            |                                                                                                    | **Total** |    |
|                                                                                                                        | **(Dollars                  in thousands)**              |                                                                            |
| ** Balance,                August 28, 2004**                                   |                                                                                                                      | 100                                                                        |        |  $ | -                                                                    |    |  $         | 102,046                                                                                           |                                    |  $         | -                                                                                                  |      |  $ | 6,466                                                                                                        |    |  $ | 108,512                                                                                          |   |
|  Recapitalization                of AAC common stock                                                                   |                                                                                                                      | (100                                                                            | )      |    | -                                                                    |    |            | (102,046                                                                                          | )                                  |            | -                                                                                                  |      |    | -                                                                                                            |    |    | (102,046                                                                                         | )  |
|  Issuance                of Intermediate Holdings common stock                                     |                                                                                                                      | 1,015,426                                                                       |        |    | 10                                                                        |    |            | 102,046                                                                                           |                                    |            | -                                                                                                  |      |    | -                                                                                                            |    |    | 102,046                                                                                          |   |
|  Distribution                to stockholders through repurchase of common stock                                        |                                                                                                                      | (509,966                                                                        | )      |    | (5                                                                        | )  |            | (85,545                                                                                           | )                                  |            | -                                                                                                  |      |    | -                                                                                                            |    |    | (85,550                                                                                          | )  |
|  Comprehensive                income -                                                                                 |                                                                                                                      |                                                                            |        |    |                                                                      |    |            |                                                                                              |                                    |            |                                                                                                    |      |    |                                                                                                              |    |    |                                                                                             |   |
|                      Net income                                                                    |                                                                                                                      | -                                                                          |        |    | -                                                                    |    |            | -                                                                                            |                                    |            | -                                                                                                  |      |    | 1,812                                                                                                        |    |    | 1,812                                                                                            |   |
|                      Adjustment to minimum pension liability (net of tax impact)                   |                                                                                                                      | -                                                                          |        |    | -                                                                    |    |            | -                                                                                            |                                    |            | (956                                                                                                    | )    |    | -                                                                                                            |    |    | (956                                                                                             | )  |
|  Total                comprehensive income                                                                             |                                                                                                                      |                                                                            |        |    |                                                                      |    |            |                                                                                              |                                    |            |                                                                                                    |      |    |                                                                                                              |    |    | 856                                                                                              |   |
| **Balance,                    August 27, 2005**                                                                             |                                                                                                                      |            505,460       |        |  $ | 5                                                                         |    |  $         |              16,491              |                                    |  $         |                 (956    | )    |  $ |                   8,278 |    |  $ |                23,818 |   |
|  Recapitalization                of Intermediate Holdings common stock                                                 |                                                                                                                      | (505,460                                                                        | )      |    | (5                                                                        | )  |            |  (16,491                                                                                     | )                                  |            | -                                                                                                  |      |    | -                                                                                                            |    |    | (16,496                                                                                          | )  |
| Issuance                  of Parent Holdings common stock                                                                   |                                                                                                                      |  505,460                                                                   |        |    |             5 |    |            |        16,491                                                  |                                    |            |        -                                                             |      |    |           -                                                     |    |    |      16,496                                                             |   |
| Dividend                  distribution to stockholders                                                                      |                                                                                                                      |              - |        |    |             - |    |            |    (140,536                                                                        | )                                  |            |                                                                                                    |      |    |                                                                                                              |    |    |  (140,536                                                                                   | )  |
| Comprehensive                  income-                                                                                      |                                                                                                                      |                                                                            |        |    |                                                                      |    |            |                                                                                              |                                    |            |                                                                                                    |      |    |                                                                                                              |    |    |                                                                                             |   |
|      Net                  income                                                                   |                                                                                                                      |              - |        |    |             - |    |            |                 - |                                    |            |                  - |      |    |              976                                 |    |    |           976                                  |   |
|      Adjustment                  to minimum pension liability (net                  of tax impact) |                                                                                                                      |              - |        |    |             - |    |            |                 - |                                    |            |             956                             |      |    |                   -     |    |    |           956                                  |   |
| Total                  comprehensive income                                                                                 |                                                                                                                      |                                                                            |        |    |                                                                      |    |            |                                                                                              |                                    |            |                                                                                                    |      |    |                                                                                                              |    |    |        1,932                                                  |   |
| **Balance,                  August 26, 2006**                                                                          |                                                                                                                      |  505,460                                                                   |        |  $ |             5 |    |  $         |    (124,045                                                                        | )                                  |  $         |                  - |      |  $ |           9,254                                                 |    |  $ |  (114,786                                                                                   | )  |
| Comprehensive                  loss -                                                                                       |                                                                                                                      |                                                                            |        |    |                                                                      |    |            |                                                                                              |                                    |            |                                                                                                    |      |    |                                                                                                              |    |    |                                                                                             |   |
|      Net                  loss                                                                     |                                                                                                                      |              - |        |    |             - |    |            |                 - |                                    |            |                  - |      |    |       (32,551                                                                       | )  |    |    (32,551                                                                        | )  |
| Total                  comprehensive loss                                                                                   |                                                                                                                      |                                                                            |        |    |                                                                      |    |            |                                                                                              |                                    |            |                                                                                                    |      |    |                                                                                                              |    |    |    (32,551                                                                        | )  |
| Adjustment                  for initial adoption of SFAS                  158, net of tax                                   |                                                                                                                      |              - |        |    |             - |    |            |                 - |                                    |            |          3,154                                             |      |    |                   -     |    |    |        3,154                                                  |   |
| **Balance,                  August 25, 2007**                                                                          |                                                                                                                      |  505,460                                                                   |        |  $ |             5 |    |  $         |    (124,045                                                                        | )                                  |  $         |          3,154                                             |      |  $ |       (23,297                                                                       | )  |  $ |  (144,183                                                                                   | )  |

----

**AAC      GROUP HOLDING CORP.**

|                                                                                                                             |                                                                                                                            |                                                                                                          |        |    |                                                                      |    |                               |                                                                                        |          | **Accumulated** |                                                                                              |    |    |                                                                            |    |    |                                                                                                    |
|----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------|---------|---------------------------------------------------------------------------|---------|------------------------------------|---------------------------------------------------------------------------------------------|---------------|-----------------|---------------------------------------------------------------------------------------------------|---------|---------|---------------------------------------------------------------------------------|---------|---------|---------------------------------------------------------------------------------------------------------|
|                                                                                                                             |                                                                                                                            |                                                                                                          |        |    |                                                                      |    | **Additional**                     |                                                                                        | **other**     |            | **Accumulated**                                                                                   |    |    |                                                                            |    |
|                                                                                                                             | **Common                  Stock**                                                                                |                                                                                                          | **Paid-in** |    | **comprehensive**                                                         |    | **earnings**                       |                                                                                        |          |            |                                                                                              |
| **Intermediate                  Holdings**                                                                                       | **Shares**                                                                                                                      |                                                                                                          | **Amount**  |    | **Capital**                                                               |    | **income                  (loss)** |                                                                                        | **(deficit)** |            | **Total**                                                                                         |    |
|                                                                                                                             | **(Dollars                  in thousands)**               |                                                                                                          |
| **Balance,                  August 28, 2004**                                                                                    |                                                                                                                            |                  100     |        |  $ |             - |    |  $                            |               102,046 |          |  $         |                 - |    |  $ |             6,466   |    |  $ |                 108,512 |   |
|  Recapitalization                of AAC common stock                                                                        |                                                                                                                            |  (100                                                                                                    | )      |    |  -                                                                   |    |                               |  (102,046                                                                              | )        |            |  -                                                                                           |    |    |  -                                                                         |    |    |  (102,046                                                                                          | )  |
| Issuance                  of Intermediate Holdings common stock                                                                  |                                                                                                                            |     1,015,426                                                                             |        |    |          10                  |    |                               |   102,036                                                                         |          |            |                 - |    |    |      6,466                                             |    |    |     108,512                                                                         |   |
| Distribution                  to stockholders through                  repurchase of common stock                                |                                                                                                                            |      (509,966                                                                        | )      |    |           (5            | )  |                               |    (85,545                                                                   | )        |            |                 - |    |    |              - |    |    |     (85,550                                                                         | )  |
| Comprehensive                  income -                                                                                          |                                                                                                                            |                                                                                                          |        |    |                                                                      |    |                               |                                                                                        |          |            |                                                                                              |    |    |                                                                            |    |    |                                                                                                    |   |
|      Net                  income                                                                        |                                                                                                                            |                   - |        |    |             - |    |                               |               -       |          |            |                 - |    |    |      1,812                                             |    |    |         1,812                                                   |   |
|      Adjustment                  to minimum pension liability                  (net of tax impact) |                                                                                                                            |                   - |        |    |             - |    |                               |               -       |          |            |          (956                                        | )  |    |              - |    |    |          (956                                              | )  |
| Total                  comprehensive income                                                                                      |                                                                                                                            |                                                                                                          |        |    |                                                                      |    |                               |                                                                                        |          |            |                                                                                              |    |    |                                                                            |    |    |            856                                   |   |
| **Balance,                  August 27, 2005**                                                                               |                                                                                                                            |        505,460                                                             |        |  $ |            5       |    |  $                            |     16,491                                                              |          |  $         |          (956                                        | )  |  $ |      8,278                                             |    |  $ |       23,818                                                              |   |
| Comprehensive                  income -                                                                                          |                                                                                                                            |                                                                                                          |        |    |                                                                      |    |                               |                                                                                        |          |            |                                                                                              |    |    |                                                                            |    |    |                                                                                                    |   |
|      Net                  income                                                                        |                                                                                                                            |                   - |        |    |             - |    |                               |               -       |          |            |                 - |    |    |      4,292                                             |    |    |         4,292                                                   |   |
|      Adjustment                  to minimum pension liability                  (net of tax impact)      |                                                                                                                            |                   - |        |    |             - |    |                               |               -       |          |            |            956                             |    |    |              - |    |    |            956                                   |   |
| Total                  comprehensive income                                                                                      |                                                                                                                            |                                                                                                          |        |    |                                                                      |    |                               |                                                                                        |          |            |                                                                                              |    |    |                                                                            |    |    |         5,248                                                   |   |
| Capital                  contribution from Parent                  Holdings                                                      |                                                                                                                            |                   - |        |    |             - |    |                               |       7,648                                                   |          |            |                 - |    |    |              - |    |    |         7,648                                                   |   |
| Exchange                  of Intermediate Holdings’ stock                  for stock in Parent Holdings                    |                                                                                                                            |      (505,360                                                                        | )      |    |           (5            | )  |                               |              5             |          |            |                 - |    |    |              - |    |    |                 -       |   |
| **Balance,                  August 26, 2006**                                                                               |                                                                                                                            |               100                       |        |  $ |             - |    |  $                            |     24,144                                                              |          |  $         |                 - |    |  $ |    12,570                                                        |    |  $ |       36,714                                                              |   |
| Comprehensive                  loss -                                                                                            |                                                                                                                            |                                                                                                          |        |    |                                                                      |    |                               |                                                                                        |          |            |                                                                                              |    |    |                                                                            |    |    |                                                                                                    |   |
|      Net                  loss                                                                          |                                                                                                                            |                   - |        |    |             - |    |                               |               -       |          |            |                 - |    |    |  (14,992                                                                   | )  |    |     (14,992                                                                         | )  |
| Total                  comprehensive loss                                                                                        |                                                                                                                            |                                                                                                          |        |    |                                                                      |    |                               |                                                                                        |          |            |                                                                                              |    |    |                                                                            |    |    |     (14,992                                                                         | )  |
| Adjustment                  for initial adoption of SFAS                  158, net of tax                                        |                                                                                                                            |                   - |        |    |             - |    |                               |               -       |          |            |         3,154                                             |    |    |              - |    |    |         3,154                                                   |   |
| **Balance,                  August 25, 2007**                                                                               |                                                                                                                            |               100                       |        |  $ |             - |    |  $                            |     24,144                                                              |          |  $         |         3,154                                             |    |  $ |    (2,422                                                        | )  |  $ |       24,876                                                              |   |

----

**AMERICAN      ACHIEVEMENT CORPORATION**

|                                                                                                                             |                                           |                                                                                                                                                    |        |    |                                                                |   |                               |                                                                            |         | **Accumulated** |                                                                                                                |    |    |                                                                |    |    |                                                            |
|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|---------|---------------------------------------------------------------------|--------|------------------------------------|---------------------------------------------------------------------------------|--------------|-----------------|---------------------------------------------------------------------------------------------------------------------|---------|---------|---------------------------------------------------------------------|---------|---------|-----------------------------------------------------------------|
|                                                                                                                             |                                           |                                                                                                                                                    |        |    |                                                                |   | **Additional**                     |                                                                            | **other**    |            |                                                                                                                |    |    |                                                                |    |    |
|                                                                                                                             |  **Common                  Stock**   |                                                                                                                                                    | **Paid-in** |    | **comprehensive**                                                   |   | **Accumulated**                    |                                                                            |         |            |                                                                                                                |
| **AAC**                                                                                                                          |                                                |   **Shares**                                                                                                                             | **Amount**  |    | **Capital**                                                         |   | **income                  (loss)** |                                                                            | **earnings** |            | **Total**                                                                                                           |    |
|                                                                                                                             |                                           |        **(Dollars                  in thousands)**            |        |
| **Balance,                  August 28, 2004**                                                                               |                                           |       100                                                                                                                 |        |  $ |            - |   |  $                            |   102,046                                                             |         |  $         |                    - |    |  $ |    6,466                                             |    |  $ |    108,512                                       |   |
| Comprehensive                  income -                                                                                          |                                           |                                                                                                                                                    |        |    |                                                                |   |                               |                                                                            |         |            |                                                                                                                |    |    |                                                                |    |    |                                                            |   |
|      Net                  income                                                                        |                                           |            -                                                                                     |        |    |            - |   |                               |              - |         |            |                    - |    |    |    6,707                                             |    |    |        6,707                 |   |
|      Adjustment                  to minimum pension liability                  (net of tax impact) |                                                |            -                                                                                     |        |    |            - |   |                               |              - |         |            |             (956                                        | )  |    |            - |    |    |         (956            | )  |
| Total                  comprehensive income                                                                                      |                                           |                                                                                                                                                    |        |    |                                                                |   |                               |                                                                            |         |            |                                                                                                                |    |    |                                                                |    |    |        5,751                 |   |
| **Balance,                  August 27, 2005**                                                                               |                                           |       100                                                                                                                 |        |  $ |            - |   |  $                            |   102,046                                                             |         |  $         |             (956                                        | )  |  $ |  13,173                                                        |    |  $ |    114,263                                       |   |
| Comprehensive                  income -                                                                                          |                                           |                                                                                                                                                    |        |    |                                                                |   |                               |                                                                            |         |            |                                                                                                                |    |    |                                                                |    |    |                                                            |   |
|      Net                  income                                                                        |                                           |            -                                                                                     |        |    |            - |   |                               |              - |         |            |                    - |    |    |  11,327                                                        |    |    |      11,327                            |   |
|      Adjustment                  to minimum pension liability                  (net of tax impact)      |                                                |            -                                                                                     |        |    |            - |   |                               |              - |         |            |               956                             |    |    |            - |    |    |           956 |   |
| Total                  comprehensive income                                                                                      |                                           |                                                                                                                                                    |        |    |                                                                |   |                               |                                                                            |         |            |                                                                                                                |    |    |                                                                |    |    |      12,283                            |   |
| Capital                  contribution from Intermediate Holdings                                                                 |                                           |            -                                                                                     |        |    |            - |   |                               |       7,000                                       |         |            |                    - |    |    |            - |    |    |        7,000                 |   |
| **Balance,                  August 26, 2006**                                                                               |                                           |       100                                                                                                                 |        |  $ |            - |   |  $                            |   109,046                                                             |         |  $         |                    - |    |  $ |  24,500                                                        |    |  $ |    133,546                                       |   |
| Comprehensive                  loss -                                                                                            |                                           |                                                                                                                                                    |        |    |                                                                |   |                               |                                                                            |         |            |                                                                                                                |    |    |                                                                |    |    |                                                            |   |
|      Net                  loss                                                                          |                                           |            -                                                                                     |        |    |            - |   |                               |              - |         |            |                    - |    |    |   (7,645                                                  | )  |    |      (7,645                            | )  |
| Total                  comprehensive loss                                                                                        |                                           |                                                                                                                                                    |        |    |                                                                |   |                               |                                                                            |         |            |                                                                                                                |    |    |                                                                |    |    |      (7,645                            | )  |
| Adjustment                  for initial adoption of  SFAS                  158, net of tax                                  |                                                |            -                                                                                     |        |    |            - |   |                               |              - |         |            |            3,154                                             |    |    |            - |    |    |        3,154                 |   |
| **Balance,                  August 25, 2007**                                                                               |                                           |       100                                                                                                                 |        |  $ |            - |   |  $                            |   109,046                                                             |         |  $         |            3,154                                             |    |  $ |  16,855                                                        |    |  $ |    129,055                                       |   |

----

**AMERICAN      ACHIEVEMENT GROUP HOLDING CORP.**

|                                                                                                                                                   | **Parent                  Holdings**              |                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                   | **For                  the year ended**           |                                                                                                                                                              |
|                                                                                                                                                   |                                                                            | **August                  25, 2007**                                                                                                                              |   | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
|                                                                                                                                                   | **(Dollars                  in thousands)**       |                                                                                                                                                              |
| **Cash                  flows from operating activities:**                                                                                             |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Net                  income (loss)                                                                                                                     |  $                                                                         |                (32,551                                                                 | )  | ** **$ |                  976 |   |  $ |              1,812 |   |
| Adjustments                  to reconcile net income (loss) to net cash provided by operating                  activities:                             |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Other                  charges                                                                                                                         |                                                                            |                 28,013                                                            |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                                                         |                                                                            |                 25,000                                                            |   |   |             25,095 |   |   |            25,281 |   |
| Deferred                  income taxes                                                                                                                 |                                                                            |                (15,506                                                                 | )  |   |               2,061 |   |   |              1,521 |   |
| Amortization                  of debt discount and deferred financing fees                                                                             |                                                                            |                   3,491                                                 |   |   |               2,269 |   |   |              1,882 |   |
| Accretion                  of interest on 10.25% senior discount notes                                                                                 |                                                                            |                 11,037                                                            |   |   |             10,161 |   |   |              7,387 |   |
| Accretion                  of Senior PIK Notes                                                                                                         |                                                                            |                 21,647                                                            |   |   |               4,197 |   |   |   |   |
| Loss                  (gain) on sales of property, plant and equipment                                                                                 |                                                                            |                  (1,989                                                      | )  |   |                    79 |   |   |                      - |   |
| Allowance                  for doubtful accounts                                                                                                       |                                                                            |                     (233                                      | )  |   |                 (464 | )  |   |               (107 | )  |
| Loss                  on operating lease agreement                                                                                                     |                                                                            |                      961                                 |   |   |   |   |   |   |   |
| Changes                  in assets and liabilities:                                                                                                    |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                                                                   |                                                                            |                  (2,632                                                      | )  |   |                    41 |   |   |              3,586 |   |
| Inventories,                  net                                                                                                                      |                                                                            |                     (951                                      | )  |   |              (9,217 | )  |   |                 802 |   |
| Prepaid                  expenses and other current assets, net                                                                                        |                                                                            |                  (4,793                                                      | )  |   |               7,325 |   |   |              3,445 |   |
| Other                  assets                                                                                                                          |                                                                            |                        90                      |   |   |              (2,143 | )  |   |            (2,664 | )  |
| Deferred                  revenue                                                                                                                      |                                                                            |                   1,843                                                 |   |   |               1,613 |   |   |            (4,499 | )  |
| Accounts                  payable, accrued expenses, customer deposits and other long-term                  liabilities                                |                                                                            |                  (5,348                                                      | )  |   |            (12,574 | )  |   |            (1,005 | )  |
| Net                  cash provided by operating activities                                                                                             |                                                                            |                 28,079                                                            |   |   |             29,419 |   |   |            37,441 |   |
|                                                                                                                                                   |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                  flows from investing activities:**                                                                                             |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Purchases                  of property, plant and equipment                                                                                            |                                                                            |                (10,594                                                                 | )  |   |            (12,511 | )  |   |          (12,795 | )  |
| Business                  acquisitions, net of cash acquired                                                                                           |                                                                            |                  (5,914                                                      | )  |   |                 (539 | )  |   |                      - |   |
| Proceeds                  from sales of property, plant and equipment                                                                                  |                                                                            |                   4,651                                                 |   |   |                  104 |   |   |                      - |   |
| Net                  cash used in investing activities                                                                                                 |                                                                            |                (11,857                                                                 | )  |   |            (12,946 | )  |   |          (12,795 | )  |
|                                                                                                                                                   |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                  flows from financing activities:**                                                                                             |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Payments                  on term loan                                                                                                                 |                                                                            |                (19,433                                                                 | )  |   |            (32,610 | )  |   |          (15,493 | )  |
| Proceeds                  from credit facility revolver                                                                                                |                                                                            |                 28,000                                                            |   |   |             35,050 |   |   |            33,450 |   |
| Payments                  on credit facility revolver                                                                                                  |                                                                            |                (29,495                                                                 | )  |   |            (25,750 | )  |   |          (33,450 | )  |
| Proceeds                  from preferred stock issuance                                                                                                |                                                                            |                           -     |   |   |               7,500 |   |   |                      - |   |
| Proceeds                  from Senior PIK Notes                                                                                                        |                                                                            |                           -     |   |   |           150,000 |   |   |            (6,075 | )  |
| Proceeds                  from 10.25% senior discount notes                                                                                            |                                                                            |                           -     |   |   |                       - |   |   |            89,269 |   |
| Distribution                  to stockholders                                                                                                          |                                                                            |                           -     |   |   |          (140,536 | )  |   |          (85,550 | )  |
| Deferred                  financing fees                                                                                                               |                                                                            |                     (179                                      | )  |   |              (9,464 | )  |   |            (3,508 | )  |
| Change                  in book overdraft                                                                                                              |                                                                            |                   2,935                                                 |   |   |              (1,583 | )  |   |            (2,003 | )  |
| Net                  cash used in financing activities                                                                                                 |                                                                            |                (18,172                                                                 | )  |   |            (17,393 | )  |   |          (23,360 | )  |
| **Net                  increase (decrease) in cash and cash equivalents**                                                                              |                                                                            | **                 (1,950**                                                  | **)**  |   | **                (920** | **)**  |   | **             1,286** |   |
| **Cash                  and cash equivalents, beginning of period**                                                                                    |                                                                            | **                  3,404**                                             |   |   | **              4,324** |   |   | **             3,038** |   |
| **Cash                  and cash equivalents, end of period**                                                                                          | ** $**                                                                     | **                  1,454**                                             |   | ** $** | **              3,404** |   |  $ |              4,324 |   |
|                                                                                                                                                   |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| **Supplemental                  disclosure**                                                                                                           |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Cash                  paid during the period for:                                                                                                      |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Interest                                                                                                                                               | ** $**                                                                     |                 20,973                                                            |   |  $ |             23,449 |   |  $ |            21,966 |   |
| Income                  taxes                                                                                                                          | ** $**                                                                     |                      921                                 |   |  $ |                  703 |   |  $ |                 224 |   |
| **Supplemental                  non-cash investing and financing activities                  disclosure**                                              |                                                                            |                                                                                                                                                              |   |   |   |   |   |   |   |
| Transfer                  of preferred stock and accumulated dividends from Intermediate                  Holdings to                  Parent Holdings | ** $**                                                                     | **                          -** |   |   |               7,648 |   |  $ |                      - |   |

----

**AAC      GROUP HOLDING CORP.**

|                                                                                                                                                   | **Intermediate                  Holdings**        |                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                   | **For                  the year ended**           |                                                                                                                                                    |
|                                                                                                                                                   | **August                  25, 2007**                                       |                                                                                                                                                    | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
|                                                                                                                                                   | **(Dollars                  in thousands)**       |                                                                                                                                                    |
| **Cash                  flows from operating activities:**                                                                                             |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Net                  income (loss)                                                                                                                     |  $                                                                         |              (14,992                                                                   | )  |  $ |                  4,292 |   |  $ |                 1,812 |   |
| Adjustments                  to reconcile net income (loss) to net cash provided by operating                  activities:                        |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Other                  charges                                                                                                                         |                                                                            |                28,013                                                        |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                                                         |                                                                            |                25,000                                                        |   |   |                25,095 |   |   |               25,281 |   |
| Deferred                  income taxes                                                                                                                 |                                                                            |                (7,274                                                        | )  |   |                  3,824 |   |   |                 1,521 |   |
| Amortization                  of debt discount and deferred financing fees                                                                             |                                                                            |                  1,976                                             |   |   |                  1,959 |   |   |                 1,882 |   |
| Accretion                  of interest on 10.25% senior discount notes                                                                                 |                                                                            |                11,037                                                        |   |   |                10,161 |   |   |                 7,387 |   |
| Loss                  (gain) on sales of property, plant and equipment                                                                                 |                                                                            |                (1,989                                                        | )  |   |                       79 |   |   |                         - |   |
| Allowance                  for doubtful accounts                                                                                                       |                                                                            |                   (233                                        | )  |   |                   (464 | )  |   |                   (107 | )  |
| Loss                  on operating lease agreement                                                                                                     |                                                                            |                     961                             |   |   |   |   |   |   |   |
| Changes                  in assets and liabilities:                                                                                                    |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                                                                   |                                                                            |                (2,632                                                        | )  |   |                       41 |   |   |                 3,586 |   |
| Inventories,                  net                                                                                                                      |                                                                            |                   (951                                        | )  |   |                (9,217 | )  |   |                    802 |   |
| Prepaid                  expenses and other current assets, net                                                                                        |                                                                            |                (4,793                                                        | )  |   |                  7,325 |   |   |                 3,445 |   |
| Other                  assets                                                                                                                          |                                                                            |                       90                  |   |   |                (2,143 | )  |   |                (2,664 | )  |
| Deferred                  revenue                                                                                                                      |                                                                            |                  1,843                                             |   |   |                  1,613 |   |   |                (4,499 | )  |
| Accounts                  payable, accrued expenses, customer deposits and other long-term                  liabilities                                |                                                                            |                (7,926                                                        | )  |   |              (13,242 | )  |   |                (1,005 | )  |
| Net                  cash provided by operating activities                                                                                             |                                                                            |                28,130                                                        |   |   |                29,323 |   |   |               37,441 |   |
|                                                                                                                                                   |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| **Cash                  flows from investing activities:**                                                                                             |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Purchases                  of property, plant and equipment                                                                                            |                                                                            |              (10,594                                                                   | )  |   |              (12,511 | )  |   |              (12,795 | )  |
| Business                  acquisitions, net of cash acquired                                                                                           |                                                                            |                (5,914                                                        | )  |   |                   (539 | )  |   |                         - |   |
| Proceeds                  from sales of property, plant and equipment                                                                                  |                                                                            |                  4,651                                             |   |   |                     104 |   |   |                         - |   |
| Net                  cash used in investing activities                                                                                                 |                                                                            |              (11,857                                                                   | )  |   |              (12,946 | )  |   |              (12,795 | )  |
|                                                                                                                                                   |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| **Cash                  flows from financing activities:**                                                                                             |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Payments                  on term loan                                                                                                                 |                                                                            |              (19,433                                                                   | )  |   |              (32,610 | )  |   |              (15,493 | )  |
| Proceeds                  from credit facility revolver                                                                                                |                                                                            |                28,000                                                        |   |   |                35,050 |   |   |               33,450 |   |
| Payments                  on credit facility revolver                                                                                                  |                                                                            |              (29,495                                                                   | )  |   |              (25,750 | )  |   |              (33,450 | )  |
| Proceeds                  from preferred stock issuance                                                                                                |                                                                            |                          - |   |   |                  7,500 |   |   |                         - |   |
| Redemption                  of 11.625% senior unsecured notes                                                                                          |                                                                            |                          - |   |   |                          - |   |   |                (6,075 | )  |
| Proceeds                  from 10.25% senior discount notes                                                                                            |                                                                            |                          - |   |   |                          - |   |   |               89,269 |   |
| Distribution                  to stockholders                                                                                                          |                                                                            |                          - |   |   |                          - |   |   |              (85,550 | )  |
| Deferred                  financing fees                                                                                                               |                                                                            |                     (16                             | )  |   |                   (404 | )  |   |                (3,508 | )  |
| Change                  in book overdraft                                                                                                              |                                                                            |                  2,935                                             |   |   |                (1,583 | )  |   |                (2,003 | )  |
| Net                  cash used in financing activities                                                                                                 |                                                                            |              (18,009                                                                   | )  |   |              (17,797 | )  |   |              (23,360 | )  |
| **Net                  increase (decrease) in cash and cash                  equivalents**                                                        |                                                                            | **               (1,736**                                                    | **)**  |   | **               (1,420** | **)**  |   | **                1,286** |   |
| **Cash                  and cash equivalents, beginning of period**                                                                                    |                                                                            | **                 2,904**                                         |   |   | **                 4,324** |   |   | **                3,038** |   |
| **Cash                  and cash equivalents, end of period**                                                                                          | ** $**                                                                     | **                 1,168**                                         |   | ** $** | **                 2,904** |   | ** $** | **                4,324** |   |
|                                                                                                                                                   |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| **Supplemental                  disclosure**                                                                                                           |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Cash                  paid during the period for:                                                                                                      |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Interest                                                                                                                                               |  $                                                                         |                20,973                                                        |   |  $ |                23,449 |   |  $ |               21,966 |   |
| Income                  taxes                                                                                                                          |  $                                                                         |                     921                             |   |  $ |                     703 |   |  $ |                    224 |   |
| **Supplemental                  non-cash investing and financing activities                  disclosure**                                              |                                                                            |                                                                                                                                                    |   |   |   |   |   |   |   |
| Transfer                  of preferred stock and accumulated dividends from Intermediate                  Holdings to                  Parent Holdings |  $                                                                         |                          - |   |  $ |                  7,648 |   |  $ |                         - |   |

----

**AMERICAN      ACHIEVEMENT CORPORATION**

|                                                                                                                                 | **AAC**                                                         |                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 |                      **For                  the year ended**    |                                                                                                                                                                      |
|                                                                                                                                 |                                                                                          | **August                  25, 2007**                                                                                                                                      |   | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
|                                                                                                                                 | **(Dollars                  in thousands)**                     |                                                                                                                                                                      |
| **Cash                  flows from operating activities:**                                                                           |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| Net                  income (loss)                                                                                                   | ** **$                                                                                   |                    (7,645                                                  | )  |  $ |             11,327 |   |  $ |                6,707 |   |
| Adjustments                  to reconcile net income (loss) to net cash provided by operating                  activities: |                                                                                          |                                                                                                                                                                      |   |   |   |   |
| Other                  charges                                                                                                       |                                                                                          |                   28,013                                                        |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                                       |                                                                                          |                   25,000                                                        |   |   |             25,095 |   |   |              25,281 |   |
| Deferred                  income taxes                                                                                               |                                                                                          |                    (3,150                                                  | )  |   |               7,737 |   |   |                4,392 |   |
| Amortization                  of debt discount and deferred financing fees                                                           |                                                                                          |                     1,530                                             |   |   |               1,498 |   |   |                1,527 |   |
| Loss                  (gain) on sales of property, plant and equipment                                                               |                                                                                          |                    (1,989                                                  | )  |   |                    79 |   |   |                        - |   |
| Allowance                  for doubtful accounts                                                                                     |                                                                                          |                       (233                                  | )  |   |                (464 | )  |   |                 (107 | )  |
| Loss                  on operating lease agreement                                                                                   |                                                                                          |                        961                             |   |   |   |   |   |   |   |
| Changes                  in assets and liabilities:                                                                                  |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                                                 |                                                                                          |                    (2,632                                                  | )  |   |                    41 |   |   |                3,586 |   |
| Inventories,                  net                                                                                                    |                                                                                          |                       (951                                  | )  |   |             (9,217 | )  |   |                   802 |   |
| Prepaid                  expenses and other current assets, net                                                                      |                                                                                          |                    (4,793                                                  | )  |   |               7,325 |   |   |                3,445 |   |
| Other                  assets                                                                                                        |                                                                                          |                          90                  |   |   |             (2,143 | )  |   |              (2,664 | )  |
| Deferred                  revenue                                                                                                    |                                                                                          |                     1,843                                             |   |   |               1,613 |   |   |              (4,499 | )  |
| Accounts                  payable, accrued expenses, customer deposits and other long-term                  liabilities              |                                                                                          |                    (7,939                                                  | )  |   |           (13,629 | )  |   |              (1,049 | )  |
| Net                  cash provided by operating activities                                                                           |                                                                                          |                   28,105                                                        |   |   |             29,262 |   |   |              37,421 |   |
|                                                                                                                                 |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| **Cash                  flows from investing activities:**                                                                           |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| Purchases                  of property, plant and equipment                                                                          |                                                                                          |                  (10,594                                                             | )  |   |           (12,511 | )  |   |            (12,795 | )  |
| Business                  acquisitions, net of cash acquired                                                                         |                                                                                          |                    (5,914                                                  | )  |   |                (539 | )  |   |                        - |   |
| Proceeds                  from sales of fixed assets                                                                                 |                                                                                          |                     4,651                                             |   |   |                  104 |   |   |                        - |   |
| Net                  cash used in investing activities                                                                               |                                                                                          |                  (11,857                                                             | )  |   |           (12,946 | )  |   |            (12,795 | )  |
|                                                                                                                                 |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| **Cash                  flows from financing activities:**                                                                           |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| Payments                  on term loan                                                                                               |                                                                                          |                  (19,433                                                             | )  |   |           (32,610 | )  |   |            (15,493 | )  |
| Proceeds                  from credit facility revolver                                                                              |                                                                                          |                   28,000                                                        |   |   |             35,050 |   |   |              33,450 |   |
| Payments                  on credit facility revolver                                                                                |                                                                                          |                  (29,495                                                             | )  |   |           (25,750 | )  |   |            (33,450 | )  |
| Redemption                  of 11.625% senior unsecured notes                                                                        |                                                                                          |                             - |   |   |                       - |   |   |              (6,075 | )  |
| Capital                  contribution                                                                                                |                                                                                          |                             - |   |   |               7,000 |   |   |                        - |   |
| Deferred                  financing fees                                                                                             |                                                                                          |                         (16                       | )  |   |                (135 | )  |   |                        - |   |
| Change                  in book overdraft                                                                                            |                                                                                          |                     2,935                                             |   |   |             (1,583 | )  |   |              (2,003 | )  |
| Net                  cash used in financing activities                                                                               |                                                                                          |                  (18,009                                                             | )  |   |           (18,028 | )  |   |            (23,571 | )  |
| **Net                  increase (decrease) in cash and cash                  equivalents**                                      |                                                                                          | **                   (1,761**                                              | **)**  |   | **            (1,712** | **)**  |   | **               1,055** |   |
| **Cash                  and cash equivalents, beginning of period**                                                                  |                                                                                          | **                    2,381**                                         |   |   | **              4,093** |   |   | **               3,038** |   |
| **Cash                  and cash equivalents, end of period**                                                                        | ** $**                                                                                   | **                       620**                         |   | ** $** | **              2,381** |   | ** $** | **               4,093** |   |
|                                                                                                                                 |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| **Supplemental                  disclosure**                                                                                         |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| Cash                  paid during the period for:                                                                                    |                                                                                          |                                                                                                                                                                      |   |   |   |   |   |   |   |
| Interest                                                                                                                             | ** $**                                                                                   |                   20,973                                                        |   |  $ |             23,449 |   |  $ |              21,966 |   |
| Income                  taxes                                                                                                        | ** $**                                                                                   |                        921                             |   |  $ |                  703 |   |  $ |                   224 |   |

----

**AMERICAN            ACHIEVEMENT GROUP HOLDING CORP.**

**AAC            GROUP HOLDING CORP.**

**AMERICAN            ACHIEVEMENT CORPORATION**

**1.      Summary of Organization and Significant Accounting      Policies**

***Registrants***

***Description        of Business***

***Consolidation***

***Fiscal      Year-End***

***Cash      and Cash Equivalents***

----

**AMERICAN            ACHIEVEMENT GROUP HOLDING CORP.**

**AAC            GROUP HOLDING CORP.**

**AMERICAN            ACHIEVEMENT CORPORATION**

***Allowance      for Doubtful Accounts and Product Returns***

|                                             |   | **Balance                  at**   |                                |                            |   |                                                        |   |           |                                                                            |       |   |                            | **Balance                  at** |   |
|--------------------------------------------------|--------|-----------------------------------|-------------------------------------|---------------------------------|--------|-------------------------------------------------------------|--------|----------------|---------------------------------------------------------------------------------|------------|--------|---------------------------------|---------------------------------|--------|
|                                             |   | **Beginning                  of** |                                | **Charged                  to** |   |                                                        |   |           |                                                                            |       |   | **End                  of**     |                            |
|                                             |   | **Period**                        |                                | **Expense**                     |   | **Other**                                                   |   | **Write-offs** |                                                                            | **Period** |   |
| Year                  ended August 25, 2007      |   | $                                 |      2,330 |                            | $      |          8,132 |   | $              |         152                             |       | $      |     (8,504) |                            | $      |         2,110 |   |
| Year                  ended August 26, 2006 |   |                              |      2,794 |                            |   |          6,923 |   |           |              - |       |   |     (7,387) |                            |   |         2,330 |   |
| Year                  ended August 27, 2005 |   |                              |      2,862 |                            |   |          7,050 |   |           |           99                  |       |   |     (7,217) |                            |   |         2,794 |   |

***Inventories***

***Independent      Sales Representative Advances and Related Reserve***

----

**AMERICAN            ACHIEVEMENT GROUP HOLDING CORP.**

**AAC            GROUP HOLDING CORP.**

**AMERICAN            ACHIEVEMENT CORPORATION**

|                                                                                                                                                                                                                                      |   | **Balance                  at**   |                                      |                            |   |                                                  |   |       |                                   |    |   |                                                        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------------------------------------|---------------------------------|--------|-------------------------------------------------------|--------|------------|----------------------------------------|---------|--------|-------------------------------------------------------------|
|                                                                                                                                                                                                                                      |   | **Beginning                  of** |                                      | **Charged                  to** |   |                                                  |   |       | **Balance                  at End of** |    |
|                                                                                                                                                                                                                                      |   | **Period**                        |                                      | **Expense**                     |   | **Write-offs(1)**                                     |   | **Period** |                                   |
| Year                  ended August 25, 2007                                                                                                                                                                                          |   | $                                 |       2,055 |                            | $      |         2,415 |   | $          |      (1,969   | )  | $      |          2,501 |   |
| Year                  ended August 26, 2006                                                                                                                                                                                          |   |                              |       2,536 |                            |   |         1,867 |   |       |      (2,348   | )  |   |          2,055 |   |
| Year                  ended August 27, 2005                                                                                                                                                                                          |   |                              |       2,383 |                            |   |         1,794 |   |       |      (1,641   | )  |   |          2,536 |   |
|                                                                                                                                                                                                                                      |   |                              |                                      |                            |   |                                                  |   |       |                                   |    |   |                                                        |   |
| (1)          Represents                  principally write-offs of terminated sales representative amounts                  and                  forgiveness of amounts by the Company. |   |

***Property,      Plant and Equipment***

| **Description**                           |   | **Useful                life**                         |
|-------------------------------------------|--------|--------------------------------------------------------|
| Buildings                and improvements |   | 10                to 33 years                          |
| Tools                and dies             |   | 8                years                                 |
| Machinery                and equipment    |   | 2                to 10 years                           |
| Leasehold                improvements     |   | Shorter                of useful life or term of lease |

***Goodwill      and Other Intangible Assets***

***Impairment      of Long-lived Assets***

----

**AMERICAN            ACHIEVEMENT GROUP HOLDING CORP.**

**AAC            GROUP HOLDING CORP.**

**AMERICAN            ACHIEVEMENT CORPORATION**

***Customer      Deposits***

***Income      Taxes***

***Fair      Value of Financial Instruments***

***Revenue      Recognition and Warranty Costs***

|                                             |   | **Balance                  at**   |                                                                          |                            |   |                                                                                          |   |       |                                   |    |   |                                                                          |
|--------------------------------------------------|--------|-----------------------------------|-------------------------------------------------------------------------------|---------------------------------|--------|-----------------------------------------------------------------------------------------------|--------|------------|----------------------------------------|---------|--------|-------------------------------------------------------------------------------|
|                                             |   | **Beginning                  of** |                                                                          | **Charged                  to** |   |                                                                                          |   |       | **Balance                  at End of** |    |
|                                             |   | **Period**                        |                                                                          | ** Expense**               |   | **Claims**                                                                                    |   | **Period** |                                   |
| Year                  ended August 25, 2007 |   | $                                 |             1,116 |                            | $      |                761 |   | $          |      (722     | )  | $      |             1,155 |   |
| Year                  ended August 26, 2006 |   |                              |             1,182 |                            |   |                348 |   |       |      (414     | )  |   |             1,116 |   |
| Year                  ended August 27, 2005 |   |                              |             1,210 |                            |   |                808 |   |       |      (836     | )  |   |             1,182 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

***Seasonality***

***Concentration      of Credit Risk***

***Shipping      and Handling Fees***

***Supplier      Concentration***

***Advertising***

***Use      of Estimates***

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

***Recent      Accounting Pronouncements***

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**2.      Comprehensive Income (Loss)**

|                                                                         | **For                  the year ended**       |                                       |
|------------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------------------------------------------|
|                                                                         |                                                                        | **August                  25, 2007**  |   | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
| **Parent                  Holdings**                                         |                                                                        |                                       |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                           |                                                                        | $                                          |             (32,551 | )  | $ |                    976 |   | $ |             1,812 |   |
| Adjustment                  in minimum pension liability (net of tax impact) |                                                                        |                                       |                         - |   |   |                    956 |   |   |              (956 | )  |
| Total                  comprehensive income (loss)                           |                                                                        | $                                          |             (32,551 | )  | $ |                 1,932 |   | $ |                856 |   |
|                                                                         |                                                                        |                                       |   |   |   |   |   |   |   |   |
|                                                                         | **For                  the year ended**       |                                       |
|                                                                         |                                                                        | **August                  25, 2007**  |   | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
| **Intermediate                  Holdings**                                   |                                                                        |                                       |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                           |                                                                        | $                                          |             (14,992 | )  | $ |                 4,292 |   | $ |             1,812 |   |
| Adjustment                  in minimum pension liability (net of tax impact) |                                                                        |                                       |                         - |   |   |                    956 |   |   |              (956 | )  |
| Total                  comprehensive income (loss)                           |                                                                        | $                                          |             (14,992 | )  | $ |                 5,248 |   | $ |                856 |   |
|                                                                         |                                                                        |                                       |   |   |   |   |   |   |   |   |
|                                                                         |  **For                  the year ended**                               |                                       |
|                                                                         |                                                                        | **August                  25, 2007**  |   | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
| **AAC**                                                                      |                                                                        |                                       |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                           |                                                                        | $                                          |               (7,645 | )  | $ |               11,327 |   | $ |             6,707 |   |
| Adjustment                  in minimum pension liability (net of tax impact) |                                                                        |                                       |                         - |   |   |                    956 |   |   |              (956 | )  |
| Total                  comprehensive income (loss)                           |                                                                        | $                                          |               (7,645 | )  | $ |               12,283 |   | $ |             5,751 |   |
|                                                                         |                                                                        |                                       |   |   |   |   |   |   |   |   |

**3.      Business Acquisitions**

| Working                Capital               | $      |                      903 |    |
|----------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|---------|
| Property,                plant and equipment |   |                   1,220                 |    |
| Goodwill                                     |   |                   2,912                 |    |
| Intangible                assets             |   |                   2,454                 |    |
| Deferred                income taxes         |   |                 (1,333                            | )  |
| Total                purchase price          | $      |                   6,156                 |    |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**4.      Inventories, Net**

|                             | **August                  25, 2007**  |                                                                                                 | **August                  26, 2006**  |   |
|----------------------------------|--------------------------------------------|------------------------------------------------------------------------------------------------------|--------------------------------------------|--------|
| Raw                  materials   | $                                          |              19,357                 |                                       | $      |              17,759 |   |
| Work                  in process |                                       |                4,853      |                                       |   |                6,473 |   |
| Finished                  goods  |                                       |                7,941      |                                       |   |                7,400 |   |
| Less—Reserves              |                                       |                 (993 | )                                     |   |                 (194 | )  |
|                             | $                                          |              31,158                 |                                       | $      |              31,438 |   |

**5.      Prepaid Expenses and Other Current Assets, Net**

|                                                                 | **August                  25, 2007**  |                                                                                          | **August                  26, 2006**  |   |
|----------------------------------------------------------------------|--------------------------------------------|-----------------------------------------------------------------------------------------------|--------------------------------------------|--------|
| Sales                  representative advances                       | $                                          |             7,793                 |                                       | $      |             7,830 |   |
| Less—reserve                  on sales representative advances |                                       |              (970            | )                                     |   |           (2,055 | )  |
| Deferred                  publication and ring costs                 |                                       |             1,438                 |                                       |   |                364 |   |
| Prepaid                  advertising and promotional materials       |                                       |             2,016                 |                                       |   |             2,254 |   |
| Prepaid                  management fees — related party       |                                       |                250 |                                       |   |                250 |   |
| Prepaid                  commissions                                 |                                       |             2,793                 |                                       |   |             1,656 |   |
| Other                                                                |                                       |             4,997                 |                                       |   |             3,645 |   |
|                                                                 | $                                          |           18,317                            |                                       | $      |           13,944 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**6.      Property, Plant and Equipment, Net**

|                                                 | **August                  25, 2007**  |                                                                                | **August                  26, 2006**  |   |
|------------------------------------------------------|--------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------------------|--------|
| Land                                                 | $                                          |              6,897 |                                       | $      |              9,550 |   |
| Buildings                  and improvements          |                                       |              9,260 |                                       |   |              8,884 |   |
| Tools                  and dies                      |                                       |            25,174            |                                       |   |            23,622 |   |
| Machinery                  and equipment             |                                       |            69,167            |                                       |   |            61,335 |   |
| Construction                  in progress            |                                       |              5,627 |                                       |   |              4,435 |   |
| Total                                                |                                       |          116,125                       |                                       |   |          107,826 |   |
| Less-accumulated                  depreciation       |                                       |          (45,472                       | )                                     |   |          (31,772 | )  |
| Property,                  plant, and equipment, net | $                                          |            70,653            |                                       | $      |            76,054 |   |

**7.      Goodwill and Other Intangible Assets**

***Goodwill***

|                                                  |   | **Class** |                                                                |          |   |                                                                | **Graduation**  |             | **Achievement**                                                |      |   |                                                                                  |    |   |                                                                |   |
|-------------------------------------------------------|--------|-----------|---------------------------------------------------------------------|---------------|--------|---------------------------------------------------------------------|----------------------|------------------|---------------------------------------------------------------------|-----------|--------|---------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------|--------|
|                                                  |   | **Rings** |                                                                | **Yearbooks** |   | **Products**                                                        |                 | **Publications** |                                                                | **Other** |   | **Total**                                                                             |    |
| Balance                at August 27, 2005             |   | $         |   71,792                                                  |          | $      |  65,241                                                        |                 | $                |   23,242                                                  |      | $      |      11,693                                                  |    | $      |   12,058                                                  |   | $ |   184,026 |   |
| Post                closing purchase price adjustment |   |      |            - |          |   |            - |                 |             |        539                       |      |   |               - |    |   |            - |   |   |          539 |   |
| Balance                at August 26,2006              |   | $         |   71,792                                                  |          | $      |  65,241                                                        |                 | $                |   23,781                                                  |      | $      |      11,693                                                  |    | $      |   12,058                                                  |   | $ |   184,565 |   |
| Goodwill                from Powers acquisition       |   |      |            - |          |   |            - |                 |             |            - |      |   |               - |    |   |     2,912                                       |   |   |       2,912 |   |
| Impairment                write-down                  |   |      |   (4,700                                                  | )        |   |            - |                 |             |            - |      |   |      (9,500                                                  | )  |   |            - |   |   |   (14,200 | )  |
| Balance                at August 25, 2007             |   | $         |   67,092                                                  |          | $      |  65,241                                                        |                 | $                |   23,781                                                  |      | $      |        2,193                                       |    | $      |   14,970                                                  |   | $ |   173,277 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

***Other      Intangible Assets***

|                                                       |   | **Fiscal                  Year Ended August 25, 2007**     |   |
|------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                                       |   | **Estimated**                                                                  |   | **Gross** |   | **Accumulated** | **Net** |   |
|                                                       |   | **Useful                  Life**                                               |   | **Asset** |   | **Amortization** |   | **Asset** |   |
| Trademarks                                                 |   | Indefinite                                                                     |   | $ |       37,433 |   | $ |                  - |   | $ |        37,433 |   |
| Deferred                  financing costs and other        |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
|                     Parent Holdings              |   | 7                  to 8 years                                                  |   |   |       24,263 |   |   |        (8,235 | )  |   |        16,028 |   |
|                     Intermediate Holdings        |   | 7                  to 8 years                                                  |   |   |       14,771 |   |   |        (6,394 | )  |   |          8,377 |   |
|                     AAC                          |   | 7                  to 8 years                                                  |   |   |       11,263 |   |   |        (5,148 | )  |   |          6,115 |   |
| Patents                                                    |   | 14 to 17 years                                                  |   |   |         7,317 |   |   |        (1,516 | )  |   |          5,801 |   |
| Customer                  lists and distribution contracts |   | 3                  to 12 years                                                 |   |   |     102,968 |   |   |      (38,347 | )  |   |        64,621 |   |
| **Total                  Parent Holdings**                 |   |                                                                           |   | **$** | **  171,981** |   | **$** | **    (48,098** | **)**  | **$** | **   123,883** |   |
| **Total                  Intermediate Holdings**           |   |                                                                           |   | **$** | **  162,489** |   | **$** | **    (46,257** | **)**  | **$** | **   116,232** |   |
| **Total                  AAC**                             |   |                                                                           |   | **$** | **  158,981** |   | **$** | **    (45,011** | **)**  | **$** | **   113,970** |   |
|                                                       |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | **Fiscal                  Year Ended August 26, 2006**          |   |
|                                                       |   | **Estimated**                                                                  |   | **Gross** |   | **Accumulated** | **Net** |   |
|                                                       |   | **Useful                  Life**                                               |   | **Asset** |   | **Amortization** |   | **Asset** |   |
| Trademarks                                                 |   | Indefinite                                                                     |   | $ |       50,095 |   | $ |                  - |   | $ |        50,095 |   |
| Deferred                  financing costs and other        |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
|                     Parent Holdings              |   | 7                  to 8 years                                                  |   |   |       24,084 |   |   |        (4,745 | )  |   |        19,339 |   |
|                     Intermediate Holdings        |   | 7                  to 8 years                                                  |   |   |       14,755 |   |   |        (4,419 | )  |   |        10,336 |   |
|                     AAC                          |   | 7                  to 8 years                                                  |   |   |       11,247 |   |   |        (3,619 | )  |   |          7,628 |   |
| Patents                                                    |   | 14 to 17 years                                                  |   |   |         7,317 |   |   |        (1,072 | )  |   |          6,245 |   |
| Customer                  lists and distribution contracts |   | 3                  to 12 years                                                 |   |   |     100,516 |   |   |      (27,600 | )  |   |        72,916 |   |
| **Total                  Parent Holdings**                 |   |                                                                           |   | **$** | **  182,012** |   | **$** | **    (33,417** | **)**  | **$** | **   148,595** |   |
| **Total                  Intermediate Holdings**           |   |                                                                           |   | **$** | **  172,683** |   | **$** | **    (33,091** | **)**  | **$** | **   139,592** |   |
| **Total                  AAC**                             |   |                                                                           |   | **$** | **  169,175** |   | **$** | **    (32,291** | **) ** | **$** | **   136,884** |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**8.      Accrued Expenses**

|                                                                            | **August                  25, 2007**  |                                                                                                                                        |  **August                  26, 2006** |   |
|---------------------------------------------------------------------------------|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--------|
| **Parent                  Holdings**                                            |                                       |                                                                                                                                        |                                       |   |   |   |
|                    Commissions and royalties                               | $                                          |                9,345                                             |                                       | $      |               8,653 |   |
|                    Compensation and related costs                          |                                       |                4,675                                             |                                       |   |               5,795 |   |
|                    Accumulated pension and postretirement benefit cost     |                                       |                   270                             |                                       |   |               3,379 |   |
|                    Accrued sales and property taxes                        |                                       |                1,962                                             |                                       |   |               1,492 |   |
|                    Accrued workman’s compensation and medical claims |                                       |                   881                             |                                       |   |                  906 |   |
|                    Capital lease obligations, short term                   |                                       |                   173                             |                                       |   |               1,293 |   |
|                    Accrued expenses — related party                  |                                       |                        - |                                       |   |                    90 |   |
|                    Other                                                   |                                       |                3,055                                             |                                       |   |               1,774 |   |
|                                                                            | $                                          |              20,361                                                        |                                       | $      |             23,382 |   |
|                                                                            |                                       |                                                                                                                                        |                                       |   |   |   |
|                                                                            |                                       |                                                                                                                                        |                                       |   |   |   |
|                                                                            | **August                  25, 2007**  |                                                                                                                                        | **August                  26, 2006**  |   |
| **Intermediate                  Holdings**                                      |                                       |                                                                                                                                        |                                       |   |   |   |
|                    Commissions and royalties                               | $                                          |                9,345                                             |                                       | $      |               8,653 |   |
|                    Compensation and related costs                          |                                       |                4,674                                             |                                       |   |               5,795 |   |
|                    Accumulated pension and postretirement benefit cost     |                                       |                   270                             |                                       |   |               3,379 |   |
|                    Accrued sales and property taxes                        |                                       |                1,962                                             |                                       |   |               1,492 |   |
|                    Accrued workman’s compensation and medical claims |                                       |                   881                             |                                       |   |                  906 |   |
|                    Capital lease obligations, short term                   |                                       |                   173                             |                                       |   |               1,293 |   |
|                    Accrued expenses — related party                  |                                       |                        - |                                       |   |                    90 |   |
|                    Other                                                   |                                       |                2,994                                             |                                       |   |               1,684 |   |
|                                                                            | $                                          |              20,299                                                        |                                       | $      |             23,292 |   |
|                                                                            |                                       |                                                                                                                                        |                                       |   |   |   |
|                                                                            |                                       |                                                                                                                                        |                                       |   |   |   |
|                                                                            | **August                  25, 2007**  |                                                                                                                                        | **August                  26, 2006**  |   |
| **AAC**                                                                         |                                       |                                                                                                                                        |                                       |   |   |   |
|                    Commissions and royalties                               | $                                          |                9,345                                             |                                       | $      |               8,653 |   |
|                    Compensation and related costs                          |                                       |                4,674                                             |                                       |   |               5,795 |   |
|                    Accumulated pension and postretirement benefit cost     |                                       |                   270                             |                                       |   |               3,379 |   |
|                    Accrued sales and property taxes                        |                                       |                1,962                                             |                                       |   |               1,492 |   |
|                    Accrued workman’s compensation and medical claims |                                       |                   881                             |                                       |   |                  906 |   |
|                    Capital lease obligations, short term                   |                                       |                   173                             |                                       |   |               1,293 |   |
|                    Accrued expenses — related party                  |                                       |                        - |                                       |   |                    90 |   |
|                    Other                                                   |                                       |                2,979                                             |                                       |   |               1,682 |   |
|                                                                            | $                                          |              20,284                                                        |                                       | $      |             23,290 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**9.      Long-term Debt**

|                                                                                                                                                                   | **August                  25, 2007**                                             |                                                                                                             | **August                  26, 2006**  |                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------------------------------------------|---------------------------------------------------------------------------|
| **Parent                  Holdings**                                                                                                                                   |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
| Senior                  PIK Notes due October 1, 2012 (including $25,844 and $4,197 PIK                  interest,                  respectively)                      | $                                                                                     |              175,844                            |                                       | $                                                                         |            154,197 |   |
| 10.25%                  Senior discount notes due October 1, 2012 (net of unamortized discount                  of                  $13,646 and $24,683, respectively) |              117,854 |                                                                                                             |                                       |            106,817 |   |
| 8.25%                  Senior subordinated notes due April 1, 2012                                                                                                     |                                                                                  |              150,000                            |                                       |                                                                      |            150,000 |   |
| Senior                  secured credit facility:                                                                                                                       |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
|    Revolving                  credit facility due 2010                                                                                                  |                                                                                  |                  7,805      |                                       |                                                                      |                9,300 |   |
|    Term                  loan due 2011                                                                                                                  |                                                                                  |                87,077                 |                                       |                                                                      |            106,510 |   |
| Total                                                                                                                                                                  |                                                                                  |              538,580                            |                                       |                                                                      |            526,824 |   |
| Less                  current portion of long-term debt                                                                                                                |                                                                                  |                   (900 | )                                     |                                                                      |              (1,090 | )  |
| Total                  long-term debt                                                                                                                                  | $                                                                                     |              537,680                            |                                       | $                                                                         |            525,734 |   |
|                                                                                                                                                                   |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
|                                                                                                                                                                   |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
|                                                                                                                                                                   | **August                  25, 2007**                                             |                                                                                                             | **August                  26, 2006**  |                                                                      |
| **Intermediate                  Holdings**                                                                                                                             |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
| 10.25%                  Senior discount notes due October 1, 2012 (net of unamortized discount                  of                  $13,646 and $24,683, respectively) | $                                                                                     |              117,854                            |                                       | $                                                                         |            106,817 |   |
| 8.25%                  Senior subordinated notes due April 1, 2012                                                                                                     |                                                                                  |              150,000                            |                                       |                                                                      |            150,000 |   |
| Senior                  secured credit facility:                                                                                                                       |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
|    Revolving                  credit facility due 2010                                                                                                  |                                                                                  |                  7,805      |                                       |                                                                      |                9,300 |   |
|    Term                  loan due 2011                                                                                                                  |                                                                                  |                87,077                 |                                       |                                                                      |            106,510 |   |
| Total                                                                                                                                                                  |                                                                                  |              362,736                            |                                       |                                                                      |            372,627 |   |
| Less                  current portion of long-term debt                                                                                                                |                                                                                  |                   (900 | )                                     |                                                                      |              (1,090 | )  |
| Total                  long-term debt                                                                                                                                  | $                                                                                     |              361,836                            |                                       | $                                                                         |            371,537 |   |
|                                                                                                                                                                   |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
|                                                                                                                                                                   |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
|                                                                                                                                                                   | **August                  25, 2007**                                             |                                                                                                             | **August                  26, 2006**  |                                                                      |
| **AAC**                                                                                                                                                                |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
| 8.25%                  Senior subordinated notes due April 1, 2012                                                                                                     | $                                                                                     |              150,000                            |                                       | $                                                                         |            150,000 |   |
| Senior                  secured credit facility:                                                                                                                       |                                                                                  |                                                                                                             |                                       |                                                                      |   |   |
|    Revolving                  credit facility due 2010                                                                                                  |                                                                                  |                  7,805      |                                       |                                                                      |                9,300 |   |
|    Term                  loan due 2011                                                                                                                  |                                                                                  |                87,077                 |                                       |                                                                      |            106,510 |   |
| Total                                                                                                                                                                  |                                                                                  |              244,882                            |                                       |                                                                      |            265,810 |   |
| Less                  current portion of long-term debt                                                                                                                |                                                                                  |                   (900 | )                                     |                                                                      |              (1,090 | )  |
| Total                  long-term debt                                                                                                                                  | $                                                                                     |              243,982                            |                                       | $                                                                         |            264,720 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

***Senior      PIK Notes***

***10.25%      Senior Discount Notes***

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

***8.25%      Senior Subordinated Notes***

*pari passu *

***Senior      Secured Credit Facility***

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                    |   | **Parent**   |                                                                        | **Intermediate** |   |                                                                        |   |   |
|-----------------------------------------|--------|--------------|-----------------------------------------------------------------------------|------------------|--------|-----------------------------------------------------------------------------|--------|--------|
|                                    |   | **Holdings** |                                                                        | **Holdings**     |   | **AAC**                                                                     |   |
|                                    |   | **Amount**   |                                                                        | **Amount**       |   | **Amount**                                                                  |   |
| **Fiscal                  year ending** |   | **Maturing** |                                                                        | **Maturing**     |   | **Maturing**                                                                |   |
| 2008                                    |   | $            |             900 |             | $      |             900 |   | $      |             900 |   |
| 2009                                    |   |         |             900 |             |   |             900 |   |   |             900 |   |
| 2010                                    |   |         |          8,705                 |             |   |          8,705                 |   |   |          8,705 |   |
| 2011                                    |   |         |        84,377                            |             |   |        84,377                            |   |   |        84,377 |   |
| 2012                                    |   |         |      150,000                                       |             |   |      150,000                                       |   |   |      150,000 |   |
| Thereafter                              |   |         |      293,698                                       |             |   |      117,854                                       |   |   |                  - |   |
| Total                                   |   | $            |      538,580                                       |             | $      |      362,736                                       |   | $      |      244,882 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**10.      Mandatory Redeemable Preferred Stock**

**11.      Commitments and Contingencies**

***Leases***

|                                    |   | **Operating** |                                                      |
|-----------------------------------------|--------|---------------|-----------------------------------------------------------|
| **Fiscal                  Year Ending** |   | **Expense**   |                                                      |
| 2008                                    |   | $             |       1,509                 |   |
| 2009                                    |   |          |          796 |   |
| 2010                                    |   |          |          528 |   |
| 2011                                    |   |          |          404 |   |
| 2012                                    |   |          |          337 |   |
| Thereafter                              |   |          |       1,610                 |   |
|                                    |   | $             |       5,184                 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

***Pending      Litigation***

***Plant      Closure***

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**12.      Employee Compensation and Benefits**

***Postretirement      Pension and Medical Benefits***

|                                                              |    | **Before                  Application of SFAS 158**                                                                                                                             |                                                                                                                    |    | **Change                  due to SFAS 158**                                                                                                        |                                                                                                  |    | **After                  Application of SFAS 158**                                                    |    |
|-------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------------------|---------|
| **Parent                  Holdings**                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Prepaid                  expenses and other current assets, net   |  $ |                   18,259                                                              |                                                                                                                    |  $ |                      58                   |                                                                                                  |  $ |            18,317                              |    |
| Total                  assets                                     |    |                   476,008                                                             |                                                                                                                    |    |                         58 |                                                                                                  |    |             476,066                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Deferred                  tax liabilities                         |    |                       7,747                                       |                                                                                                                    |    |                    1,989                            |                                                                                                  |    |                 9,736 |    |
| Other                  long-term liabilities                      |    |                     11,704                                                  |                                                                                                                    |    |                   (5,085                                 | )                                                                                                |    |                 6,619 |    |
| Total                  liabilities                                |    |                   623,345                                                             |                                                                                                                    |    |                   (3,096                                 | )                                                                                                |    |             620,249                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Accumulated                  other comprehensive income           |    |                            -             |                                                                                                                    |    |                    3,154                            |                                                                                                  |    |                 3,154 |    |
| Total                  stockholders’ equity                 |    |                 (147,337                                                                        | )                                                                                                                  |    |                    3,154                            |                                                                                                  |    |           (144,183                                  | )  |
| Total                  liabilities and stockholders’ equity |    |                   476,008                                                             |                                                                                                                    |    |                         58 |                                                                                                  |    |             476,066                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| **Intermediate                  Holdings**                        |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Prepaid                  expenses and other current assets, net   |  $ |                 18,259                                                                          |                                                                                                                    |  $ |                    58                               |                                                                                                  |  $ |          18,317                                          |    |
| Total                  assets                                     |    |                   468,071                                                             |                                                                                                                    |    |                         58 |                                                                                                  |    |             468,129                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Deferred                  tax liabilities                         |    |                     17,742                                                  |                                                                                                                    |    |                    1,989                            |                                                                                                  |    |               19,731            |    |
| Other                  long-term liabilities                      |    |                       8,119                                       |                                                                                                                    |    |                   (5,085                                 | )                                                                                                |    |                 3,034 |    |
| Total                  liabilities                                |    |                   446,349                                                             |                                                                                                                    |    |                   (3,096                                 | )                                                                                                |    |             443,253                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Accumulated                  other comprehensive income           |    |                      -         |                    3,154 |    |                                                                                                                                               |                 3,154 |    |
| Total                  stockholders’ equity                 |    |                     21,722                                                  |                                                                                                                    |    |                    3,154                            |                                                                                                  |    |               24,876            |    |
| Total                  liabilities and stockholders’ equity |    |                   468,071                                                             |                                                                                                                    |    |                         58 |                                                                                                  |    |             468,129                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| **AAC**                                                           |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Prepaid                  expenses and other current assets, net   |  $ |                  18,259                                                                    |                                                                                                                    |  $ |                     58                         |                                                                                                  |  $ |          18,317                                          |    |
| Total                  assets                                     |    |                   465,261                                                             |                                                                                                                    |    |                         58 |                                                                                                  |    |             465,319                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Deferred                  tax liabilities                         |    |                     28,650                                                  |                                                                                                                    |    |                    1,989                            |                                                                                                  |    |               30,639            |    |
| Other                  long-term liabilities                      |    |                       8,091                                       |                                                                                                                    |    |                   (5,085                                 | )                                                                                                |    |                 3,006 |    |
| Total                  liabilities                                |    |                   339,360                                                             |                                                                                                                    |    |                   (3,096                                 | )                                                                                                |    |             336,264                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |
| Accumulated                  other comprehensive income           |    |                            -             |                                                                                                                    |    |                    3,154                            |                                                                                                  |    |                 3,154 |    |
| Total                  stockholders’ equity                 |    |                   125,901                                                             |                                                                                                                    |    |                    3,154                            |                                                                                                  |    |             129,055                       |    |
| Total                  liabilities and stockholders’ equity |    |                   465,261                                                             |                                                                                                                    |    |                         58 |                                                                                                  |    |             465,319                       |    |
|                                                              |    |                                                                                                                                                                            |                                                                                                                    |    |                                                                                                                                               |                                                                                                  |    |                                                                                                  |    |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                                                              | **August                  25, 2007**     |                                                                                                    | **August                  26, 2006**     |   |
|-----------------------------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------|
|                                                                              | **Taylor                  pension**                          |                                                                                                    | **CBI                  post-retirement**                     |   | **Taylor                  pension** |   | **CBI                  post-retirement** |   |
| **Change                  in benefit obligation:**                                |                                                         |                                                                                                    |                                                         |   |   |   |   |   |   |   |   |   |
| Obligation                  beginning of the year                                 | $                                                            |        13,871                                                        |                                                         | $      |                    2,392 |   | $ |        16,363 |   | $ |                 4,326 |   |
| Service                  cost                                                     |                                                         |               81                  |                                                         |   |                            - |   |   |               98 |   |   |                         - |   |
| Interest                  cost                                                    |                                                         |             899                             |                                                         |   |                       108 |   |   |             844 |   |   |                    139 |   |
| Actuarial                  loss (gain)                                            |                                                         |             496                             |                                                         |   |                         51 |   |   |         (2,785 | )  |   |                   (583 | )  |
| Benefit                  payments                                                 |                                                         |           (696                                        | )                                                       |   |                     (263 | )  |   |            (649 | )  |   |                   (423 | )  |
| Amendment                                                                         |                                                         |                  - |                                                         |   |   |   |   |                  - |   |   |                (1,067 | )  |
| Obligation,                  end of year                                          | $                                                            |        14,651                                                        |                                                         | $      |                    2,288 |   | $ |        13,871 |   | $ |                 2,392 |   |
| **Change                  in fair value of plan assets:**                         |                                                         |                                                                                                    |                                                         |   |   |   |   |   |   |   |   |   |
| Fair                  value of plan assets, beginning of year                     | $                                                            |        12,089                                                        |                                                         | $      |                            - |   | $ |        11,121 |   | $ |                         - |   |
| Actual                  return of plan assets                                     |                                                         |          2,136                                             |                                                         |   |                            - |   |   |          1,051 |   |   |                         - |   |
| Employer                  contributions                                           |                                                         |             969                             |                                                         |   |                       263 |   |   |             566 |   |   |                    423 |   |
| Benefit                  payments                                                 |                                                         |           (696                                        | )                                                       |   |                     (263 | )  |   |            (649 | )  |   |                   (423 | )  |
| Fair                  value of plan assets, end of year                           | $                                                            |        14,498                                                        |                                                         | $      |                            - |   | $ |        12,089 |   | $ |                         - |   |
| **Funded                  status:**                                               |                                                         |                                                                                                    |                                                         |   |   |   |   |   |   |   |   |   |
| Unfunded                  accumulated benefit obligation in excess of plan assets | $                                                            |           (153                                        | )                                                       | $      |                  (2,288 | )  | $ |         (1,781 | )  | $ |                (2,392 | )  |
| Unrecognized                  net loss (gain)                                     |                                                         |  n/a                                                                                               |                                                         |   |  n/a |   |   |         (1,377 | )  |   |                (2,662 | )  |
| Unrecognized                  prior service cost                                  |                                                         |  n/a                                                                                               |                                                         |   |  n/a |   |   |                  - |   |   |                (1,005 | )  |
| Contributions                  from measurement date to period end                |                                                         |             211                             |                                                         |   |                            - |   |   |             182 |   |   |                         - |   |
| Accumulated                  postretirement benefit cost, current and long-term   | $                                                            |               58                  |                                                         | $      |                  (2,288 | )  | $ |         (2,976 | )  | $ |                (6,059 | )  |

|                                                                             | **Fiscal                  Year Ended**             |                                                           |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|
|                                                                             | **August                  25, 2007**                                                       |                                                           | **August                  26, 2006**     |   | **August                  27, 2005**     |   |
|                                                                             | **Taylor**                                                                                                     | ** **                                                     | **CBI** | ** ** | **Taylor** | ** ** | **CBI** | ** ** | **Taylor** | ** ** | **CBI** | ** ** |
| ** **                                                                       | **pension**                                                                                                    | ** **                                                     | **post-retirement** | ** ** | **pension** | ** ** | **post-retirement** | ** ** | **pension** | ** ** | **post-retirement** |   |
| Service                  costs, benefits attributed to Service during the period |  $                                                                                                        |           81 |   |  $ |               - |   |  $ |           98 |   |  $ |               - |   |  $ |           78 |   |  $ |               - |   |
| Interest                  cost                                                   |                                                                                                           |         899            |   |   |            108 |   |   |         844 |   |   |             139 |   |   |         835 |   |   |             152 |   |
| Expected                  return on assets                                       |                                                                                                           |       (987                       | )  |   |               - |   |   |       (892 | )  |   |               - |   |   |       (833 | )  |   |               - |   |
| Amortization                  of unrecognized net loss (gain)                    |                                                                                                           |           -  |   |   |           (352 | )  |   |           - |   |   |           (316 | )  |   |           - |   |   |           (284 | )  |
| Amortization                  of unrecognized net prior service costs            |                                                                                                           |           -  |   |   |           (149 | )  |   |           - |   |   |             (62 | )  |   |           - |   |   |               - |   |
|                                                                             |  $                                                                                                        |           (7 | )  |  $ |           (393 | )  |  $ |           50 |   |  $ |           (239 | )  |  $ |           80 |   |  $ |           (132 | )  |

|                                            | **August                  25, 2007**                                                                                                                                      | **August                  26, 2006**                                                                                                                                      |
|-------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Projected                  benefit obligation   |                       2,288                                 |                       2,392                                 |
| Accumulated                  benefit obligation |                       2,288                                 |                       2,392                                 |
| Fair                  value of plan assets      |                             - |                             - |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                |          | **August                  25, 2007**                                                                                                        |    | **  August                  26, 2006**  |                                                                                                                                                                   |
|-------------------------------------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |          | **Taylor                  pension**                                                                                                         |    |                                                   | **CBI                  post-retirement**                                                                                                                               |   | **Taylor                  pension** |   | **CBI                  post-retirement** |   |
| Net                  gain           |  $  |              (2,028                                                        | )  |  $                                           |                      (2,259                                   | )  |  n/a |   |  n/a |   |
| Prior                  service cost |          |                        - |    |                                                   |                            (856 | )  |  n/a |   |  n/a |   |
|                                |  $  |             (2,028                                                              | )  |  $                                           |                     (3,115                                         | )  |   |   |   |   |

|                                              | **August                25, 2007** |   | **August                26, 2006** |
|---------------------------------------------------|------------------------------------|--------|------------------------------------|
| CBI                Plan-                          |                               |   |                               |
| Weighted                average discount rate     | 5.00%                              |   | 4.75%                              |
| Healthcare                trend rate              |                               |   |                               |
| Current                year trend rate            | 9.00%                              |   | 9.00%                              |
| Ultimate                year trend rate           | 5.00%                              |   | 5.50%                              |
| Year                of ultimate trend rate        | 2011                               |   | 2010                               |
|                                              |                               |   |                               |
| TPC                Plan-                          |                               |   |                               |
| Weighted                average discount rate     | 6.40%                              |   | 6.65%                              |
| Long-term                rate of return on assets | 8.00%                              |   | 8.00%                              |
| Annual                salary increases            | 3.25%                              |   | 3.25%                              |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|  Asset                Category      |   | ** 2007** | ** ** | ** ** | ** 2006** | ** ** | ** ** | ** Target** |    |   |
|-----------------------------------------------|--------|----------------|------------|------------|----------------|------------|------------|------------------|---------|--------|
|                   Equity securities |   |  76.0     |  %    |       |  73.0     |  %    |       |  10.0-70.0  | %       |   |
|                   Debt securities   |   |  18.0     |  %    |       |  22.0     |  %    |       |  10.0-50.0  |  % |   |
|                   Other             |   |  6.0      |  %    |       |  5.0      |  %    |       |  0.0-20.0   |  % |   |
|                                          |   |  100.0    |  %    |       |  100.0    |  %    |       |  100.0      |  % |   |

| 2008      | $      | 270 |   |
|-----------|--------|-----|--------|
| 2009      |   | 265 |   |
| 2010      |   | 257 |   |
| 2011      |   | 246 |   |
| 2012      |   | 232 |   |
| 2013-2017 |   | 932 |   |

| 2008      | $      | 720   |   |
|-----------|--------|-------|--------|
| 2009      |   | 771   |   |
| 2010      |   | 799   |   |
| 2011      |   | 812   |   |
| 2012      |   | 838   |   |
| 2013-2017 |   | 4,543 |   |

***American      Achievement Corporation 401(K) Plan***

----

**AMERICAN            ACHIEVEMENT GROUP HOLDING CORP.**

**AAC            GROUP HOLDING CORP.**

**AMERICAN            ACHIEVEMENT CORPORATION**

***Cash      Incentive Plan***

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**13.      Income      Taxes**

|                                         |   | **Fiscal                  Year Ended**       |                                                                                                                              |
|----------------------------------------------|--------|----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|                                         |   | **August                  25, 2007**                                  |                                                                                                                              | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
| **Parent                  Holdings**         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                    Federal—       |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                      Current  |   | $                                                                          |                      355 |   | $ |                      325 |   | $ |                        40 |   |
|                      Deferred |   |                                                                       |               (15,691                                       | )  |   |                   1,301 |   |   |                   1,319 |   |
|                    State—         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                      Current  |   |                                                                       |                   1,712                 |   |   |                      441 |   |   |                      177 |   |
|                      Deferred |   |                                                                       |                 (1,803                            | )  |   |                      149 |   |   |                      202 |   |
|                                         |   | $                                                                          |               (15,427                                       | )  | $ |                   2,216 |   | $ |                   1,738 |   |
|                                         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                                         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                                         |   | **Fiscal                  Year Ended**       |                                                                                                                              |
|                                         |   | **August                  25, 2007**                                  |                                                                                                                              | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
| **Intermediate                  Holdings**   |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                    Federal—       |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                      Current  |   | $                                                                          |                      346 |   | $ |                      331 |   | $ |                        40 |   |
|                      Deferred |   |                                                                       |                 (8,319                            | )  |   |                   2,883 |   |   |                   1,319 |   |
|                    State—         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                      Current  |   |                                                                       |                   1,682                 |   |   |                      441 |   |   |                      177 |   |
|                      Deferred |   |                                                                       |                    (942            | )  |   |                      330 |   |   |                      202 |   |
|                                         |   | $                                                                          |                 (7,233                            | )  | $ |                   3,985 |   | $ |                   1,738 |   |
|                                         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                                         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                                         |   | **Fiscal                  Year Ended**       |                                                                                                                              |
|                                         |   | **August                  25, 2007**                                  |                                                                                                                              | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
| **AAC**                                      |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                    Federal—       |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                      Current  |   | $                                                                          |                      343 |   | $ |                      340 |   | $ |                        48 |   |
|                      Deferred |   |                                                                       |                 (4,627                            | )  |   |                   6,395 |   |   |                   3,903 |   |
|                    State—         |   |                                                                       |                                                                                                                              |   |   |   |   |   |   |   |
|                      Current  |   |                                                                       |                   1,672                 |   |   |                      441 |   |   |                      177 |   |
|                      Deferred |   |                                                                       |                    (510            | )  |   |                      731 |   |   |                      489 |   |
|                                         |   | $                                                                          |                 (3,122                            | )  | $ |                   7,907 |   | $ |                   4,617 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                                                | **Fiscal                  Year Ended**       |                                                                                                                       |
|---------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
|                                                                | **August                  25, 2007**                                  |                                                                                                                       | **August                  26, 2006**  |   |  **August                  28, 2005** |   |
| **Parent                  Holdings**                                |                                                                       |                                                                                                                       |   |   |   |   |   |   |   |
| Computed                  tax provision (benefit) at statutory rate | $                                                                          |            (16,792                                                  | )  | $ |               1,117 |   |  $ |                  1,113 |   |
| State                  taxes, net of federal benefit                |                                                                       |                 (691                       | )  |   |                  590 |   |   |                     219 |   |
| Non-deductible                  interest on high yield debt         |                                                                       |                1,845                            |   |   |                  448 |   |   |                     219 |   |
| Other                                                               |                                                                       |                   211            |   |   |                    61 |   |   |                     187 |   |
| Total                  income tax provision (benefit)               | $                                                                          |            (15,427                                                  | )  | $ |               2,216 |   | $ |                  1,738 |   |
|                                                                |                                                                       |                                                                                                                       |   |   |   |   |   |   |   |
|                                                                |                                                                       |                                                                                                                       |   |   |   |   |   |   |   |
|                                                                | **Fiscal                  Year Ended**                 |                                                                                                                       |
|                                                                | **August                  25, 2007**                                  |                                                                                                                       | **August                  26, 2006**  |   |  **August                  28, 2005** |   |
| **Intermediate                  Holdings**                          |                                                                       |                                                                                                                       |   |   |   |   |   |   |   |
| Computed                  tax provision (benefit) at statutory rate | $                                                                          |              (7,779                                       | )  | $ |               2,897 |   | $ |                  1,113 |   |
| State                  taxes, net of federal benefit                |                                                                       |                   152            |   |   |                  770 |   |   |                     219 |   |
| Non-deductible                  interest on high yield debt         |                                                                       |                   278            |   |   |                  251 |   |   |                     219 |   |
| Other                                                               |                                                                       |                   116            |   |   |                    67 |   |   |                     187 |   |
| Total                  income tax provision (benefit)               | $                                                                          |              (7,233                                       | )  | $ |               3,985 |   | $ |                  1,738 |   |
|                                                                |                                                                       |                                                                                                                       |   |   |   |   |   |   |   |
|                                                                |                                                                       |                                                                                                                       |   |   |   |   |   |   |   |
|                                                                | **Fiscal                  Year Ended**                 |                                                                                                                       |
|                                                                | **August                  25, 2007**                                  |                                                                                                                       | **August                  26, 2006**  |   | **August                  27, 2005**  |   |
| **AAC**                                                             |                                                                       |                                                                                                                       |   |   |   |   |   |   |   |
| Computed                  tax provision (benefit) at statutory rate | $                                                                          |              (3,768                                       | )  | $ |               6,732 |   | $ |                  3,910 |   |
| State                  taxes, net of federal benefit                |                                                                       |                   577            |   |   |               1,172 |   |   |                     619 |   |
| Other                                                               |                                                                       |                     69 |   |   |                      3 |   |   |                       88 |   |
| Total                  income tax provision (benefit)               | $                                                                          |              (3,122                                       | )  | $ |               7,907 |   | $ |                  4,617 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                                                              | **August                  25, 2007**  |                                                                                            | **August                  26, 2006**  |   |
|-----------------------------------------------------------------------------------|--------------------------------------------|-------------------------------------------------------------------------------------------------|--------------------------------------------|--------|
| **Parent                  Holdings**                                              |                                       |                                                                                            |                                       |   |   |   |
| Deferred                  tax assets                                              |                                       |                                                                                            |                                       |   |   |   |
|                      Allowances and reserves                       | $                                          |                2,501 |                                       | $      |               1,956 |   |
|                      Net operating loss carryforwards              |                                       |              29,314            |                                       |   |             35,740 |   |
|                      Deferred revenue (net of commissions expense) |                                       |                1,744 |                                       |   |               1,023 |   |
|                      Accrued interest                              |                                       |              20,706            |                                       |   |               8,176 |   |
|                      Accrued liabilities and other                 |                                       |                2,746 |                                       |   |               3,958 |   |
|                      Prepaids and other                            |                                       |                2,802 |                                       |   |               3,958 |   |
|                      Total deferred tax assets                     | $                                          |              59,813            |                                       | $      |             54,811 |   |
| Deferred                  tax liabilities                                         |                                       |                                                                                            |                                       |   |   |   |
|                      Depreciation                                  |                                       |                8,903 |                                       |   |             10,640 |   |
|                      Amortization of intangibles                   |                                       |              55,570            |                                       |   |             59,795 |   |
|                      Prepaids and other                            |                                       |                1,345 |                                       |   |                  596 |   |
|                      Total deferred tax liabilities                |                                       |              65,818            |                                       |   |             71,031 |   |
| Net                  deferred tax liabilities                                     | $                                          |               (6,005      | )                                     | $      |            (16,220 | )  |
|                                                                              |                                       |                                                                                            |                                       |   |   |   |
| Current deferred                  tax assets                                 | $                                          |                3,731 |                                       | $      |               5,582 |   |
| Long-term                  deferred tax liabilities                               |                                       |               (9,736      | )                                     |   |            (25,760 | )  |
| Net                  deferred tax liabilities                                     | $                                          |               (6,005      | )                                     | $      |            (20,178 | )  |
|                                                                              |                                       |                                                                                            |                                       |   |   |   |
|                                                                              | **August                  25, 2007**  |                                                                                            | **August                  26, 2006**  |   |
| **Intermediate                  Holdings**                                        |                                       |                                                                                            |                                       |   |   |   |
| Deferred                  tax assets                                              |                                       |                                                                                            |                                       |   |   |   |
|                      Allowances and reserves                       | $                                          |                2,501 |                                       | $      |               1,956 |   |
|                      Net operating loss carryforwards              |                                       |              29,501            |                                       |   |             35,619 |   |
|                      Deferred revenue (net of commissions expense) |                                       |                1,744 |                                       |   |               1,023 |   |
|                      Accrued interest                              |                                       |              10,726            |                                       |   |               6,528 |   |
|                      Accrued liabilities and other                 |                                       |                2,746 |                                       |   |               3,964 |   |
|                      Prepaids and other                            |                                       |                2,793 |                                       |   |               3,964 |   |
|                      Total deferred tax assets                     | $                                          |              50,011            |                                       | $      |             53,054 |   |
| Deferred                  tax liabilities                                         |                                       |                                                                                            |                                       |   |   |   |
|                      Depreciation                                  |                                       |                8,903 |                                       |   |             10,640 |   |
|                      Amortization of intangibles                   |                                       |              55,763            |                                       |   |             59,795 |   |
|                      Prepaids and other                            |                                       |                1,345 |                                       |   |                  596 |   |
|                      Total deferred tax liabilities                |                                       |              66,011            |                                       |   |             71,031 |   |
| Net                  deferred tax liabilities                                     | $                                          |             (16,000                 | )                                     | $      |            (17,977 | )  |
|                                                                              |                                       |                                                                                            |                                       |   |   |   |
| Current deferred                  tax assets                                 | $                                          |                3,731 |                                       | $      |               5,582 |   |
| Long-term                  deferred tax liabilities                               |                                       |             (19,731                 | )                                     |   |            (27,523 | )  |
| Net                  deferred tax liabilities                                     | $                                          |             (16,000                 | )                                     | $      |            (21,941 | )  |
|                                                                              |                                       |                                                                                            |                                       |   |   |   |
|                                                                              | **August                  25, 2007**  |                                                                                            | **August                  26, 2006**  |   |
| **AAC**                                                                           |                                       |                                                                                            |                                       |   |   |   |
| Deferred                  tax assets                                              |                                       |                                                                                            |                                       |   |   |   |
|                      Allowances and reserves                       | $                                          |                2,501 |                                       | $      |               1,956 |   |
|                      Net operating loss carryforwards              |                                       |              29,561            |                                       |   |             35,445 |   |
|                      Deferred revenue (net of commissions expense) |                                       |                1,744 |                                       |   |               1,023 |   |
|                      Accrued liabilities and other                 |                                       |                2,746 |                                       |   |               3,973 |   |
|                      Prepaids and other                            |                                       |                2,790 |                                       |   |               3,973 |   |
|                      Total deferred tax assets                     | $                                          |              39,342            |                                       | $      |             46,370 |   |
| Deferred                  tax liabilities                                         |                                       |                                                                                            |                                       |   |   |   |
|                      Depreciation                                  |                                       |                8,903 |                                       |   |             10,640 |   |
|                      Amortization of intangibles                   |                                       |              56,002            |                                       |   |             59,886 |   |
|                      Prepaids and other                            |                                       |                1,345 |                                       |   |                  596 |   |
|                      Total deferred tax liabilities                |                                       |              66,250            |                                       |   |             71,122 |   |
| Net                  deferred tax liabilities                                     | $                                          |             (26,908                 | )                                     | $      |            (24,752 | )  |
|                                                                              |                                       |                                                                                            |                                       |   |   |   |
| Current deferred                  tax assets                                 | $                                          |                3,731 |                                       | $      |               5,582 |   |
| Long-term                  deferred tax liabilities                               |                                       |             (30,639                 | )                                     |   |            (34,307 | )  |
| Net                  deferred tax liabilities                                     | $                                          |             (26,908                 | )                                     | $      |            (28,725 | )  |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**14.      Stockholders’ Equity**

**15.      Related-Party Transactions**

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**16.      Business Segments**

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                                            | **Parent                  Holdings**               |                                                                                              |
|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                            |                                                                                                                     | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                                                     | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 25, 2007**                 |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                                        |      120,949                                                             |   | $ |      115,207 |   | $ |        44,428 |   | $ |          5,148 |   | $ |        30,004 |   | $ |      315,736 |   |
| Depreciation                  and amortization                  |                                                                                                                     |        10,176                                                  |   |   |        10,000 |   |   |          1,640 |   |   |          1,348 |   |   |          1,836 |   | $ |        25,000 |   |
| Segment                  operating income (loss)                |                                                                                                                     |          7,758                                       |   |   |        25,152 |   |   |          6,420 |   |   |      (29,062 | )  |   |          1,021 |   | $ |        11,289 |   |
| Capital                  expenditures                           |                                                                                                                     |          3,269                                       |   |   |          5,160 |   |   |          1,107 |   |   |             435 |   |   |             623 |   | $ |        10,594 |   |
| **Non-cash                  charges:**                          |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Impairment                        |                                                                                                                     |          4,917                                       |   |   |                 - |   |   |                 - |   |   |        22,751 |   |   |             345 |   | $ |        28,013 |   |
|                     Loss on operating lease agreement |                                                                                                                     |                 - |   |   |             961 |   |   |                 - |   |   |                 - |   |   |                 - |   | $ |             961 |   |
| **As                  of August 25, 2007**                 |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                                        |        67,092                                                  |   | $ |        65,241 |   | $ |        23,781 |   | $ |          2,193 |   | $ |        14,970 |   | $ |      173,277 |   |
| Segment                  assets                                 |                                                                                                                     |      203,164                                                             |   |   |      167,862 |   |   |        57,643 |   |   |          8,746 |   |   |        38,651 |   | $ |      476,066 |   |
|                                                            |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | **Parent                  Holdings**                    |                                                                                              |
|                                                            |                                                                                                                     | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                                                     | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 26, 2006**                 |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                                        |      119,451                                                             |   | $ |      114,883 |   | $ |        43,940 |   | $ |        20,974 |   | $ |        21,662 |   | $ |      320,910 |   |
| Depreciation                  and amortization                  |                                                                                                                     |          8,614                                       |   |   |          9,904 |   |   |          2,917 |   |   |          2,086 |   |   |          1,574 |   | $ |        25,095 |   |
| Segment                  operating income                       |                                                                                                                     |        13,469                                                  |   |   |        23,812 |   |   |          3,324 |   |   |          1,571 |   |   |             347 |   | $ |        42,523 |   |
| Capital                  expenditures                           |                                                                                                                     |          3,713                                       |   |   |          6,072 |   |   |          1,257 |   |   |             758 |   |   |             711 |   | $ |        12,511 |   |
| **As                  of August 26, 2006**                 |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                                        |        71,792                                                  |   | $ |        65,241 |   | $ |        23,781 |   | $ |        11,693 |   | $ |        12,058 |   | $ |      184,565 |   |
| Segment                  assets                                 |                                                                                                                     |      204,763                                                             |   |   |      173,145 |   |   |        66,828 |   |   |        32,510 |   |   |        34,030 |   | $ |      511,276 |   |
|                                                            |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | **Parent                  Holdings**                    |                                                                                              |
|                                                            |                                                                                                                     | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                                                     | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 27, 2005**                 |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                                        |      119,658                                                             |   | $ |      112,432 |   | $ |        40,018 |   | $ |        20,110 |   | $ |        21,570 |   | $ |      313,788 |   |
| Depreciation                  and amortization                  |                                                                                                                     |          8,695                                       |   |   |        10,269 |   |   |          2,814 |   |   |          1,977 |   |   |          1,526 |   | $ |        25,281 |   |
| Segment                  operating income (loss)                |                                                                                                                     |        10,362                                                  |   |   |        16,613 |   |   |          3,192 |   |   |          4,871 |   |   |           (217 | )  | $ |        34,821 |   |
| Capital                  expenditures                           |                                                                                                                     |          3,273                                       |   |   |          7,585 |   |   |          1,060 |   |   |             198 |   |   |             679 |   | $ |        12,795 |   |
| **As                  of August 27, 2005**                 |                                                                                                                     |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                                        |        71,792                                                  |   | $ |        65,241 |   | $ |        23,242 |   | $ |        11,693 |   | $ |        12,058 |   | $ |      184,026 |   |
| Segment                  assets                                 |                                                                                                                     |      202,133                                                             |   |   |      174,787 |   |   |        64,714 |   |   |        37,687 |   |   |        33,615 |   | $ |      512,936 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                                            | **Intermediate                  Holdings**             |                                                                                              |
|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                            |                                                                                                               | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                                               | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 25, 2007**                 |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                                  |      120,949                                                             |   | $ |      115,207 |   | $ |        44,428 |   | $ |          5,148 |   | $ |        30,004 |   | $ |      315,736 |   |
| Depreciation                  and amortization                  |                                                                                                               |        10,176                                                  |   |   |        10,000 |   |   |          1,640 |   |   |          1,348 |   |   |          1,836 |   | $ |        25,000 |   |
| Segment                  operating income (loss)                |                                                                                                               |          7,758                                       |   |   |        25,152 |   |   |          6,420 |   |   |      (29,062 | )  |   |          1,021 |   | $ |        11,289 |   |
| Capital                  expenditures                           |                                                                                                               |          3,269                                       |   |   |          5,160 |   |   |          1,107 |   |   |             435 |   |   |             623 |   | $ |        10,594 |   |
| **Non-cash                  charges:**                          |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Impairment                        |                                                                                                               |          4,917                                       |   |   |                 - |   |   |                 - |   |   |        22,751 |   |   |             345 |   | $ |        28,013 |   |
|                     Loss on operating lease agreement |                                                                                                               |                 - |   |   |             961 |   |   |                 - |   |   |                 - |   |   |                 - |   | $ |             961 |   |
| **As                  of August 25, 2007**                 |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                                  |        67,092                                                  |   | $ |        65,241 |   | $ |        23,781 |   | $ |          2,193 |   | $ |        14,970 |   | $ |      173,277 |   |
| Segment                  assets                                 |                                                                                                               |      200,067                                                             |   |   |      165,049 |   |   |        56,641 |   |   |          8,242 |   |   |        38,130 |   | $ |      468,129 |   |
|                                                            |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | **Intermediate                  Holdings**             |                                                                                              |
|                                                            |                                                                                                               | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                                               | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 26, 2006**                 |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                                  |      119,451                                                             |   | $ |      114,883 |   | $ |        43,940 |   | $ |        20,974 |   | $ |        21,662 |   | $ |      320,910 |   |
| Depreciation                  and amortization                  |                                                                                                               |          8,614                                       |   |   |          9,904 |   |   |          2,917 |   |   |          2,086 |   |   |          1,574 |   | $ |        25,095 |   |
| Segment                  operating income                       |                                                                                                               |        13,469                                                  |   |   |        23,812 |   |   |          3,324 |   |   |          1,571 |   |   |             347 |   | $ |        42,523 |   |
| Capital                  expenditures                           |                                                                                                               |          3,713                                       |   |   |          6,072 |   |   |          1,257 |   |   |             758 |   |   |             711 |   | $ |        12,511 |   |
| **As                  of August 26, 2006**                 |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                                  |        71,792                                                  |   | $ |        65,241 |   | $ |        23,781 |   | $ |        11,693 |   | $ |        12,058 |   | $ |      184,565 |   |
| Segment                  assets                                 |                                                                                                               |      201,056                                                             |   |   |      169,776 |   |   |        65,628 |   |   |        31,906 |   |   |        33,407 |   | $ |      501,773 |   |
|                                                            |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | **Intermediate                  Holdings**             |                                                                                              |
|                                                            |                                                                                                               | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                                               | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 27, 2005**                 |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                                  |      119,658                                                             |   | $ |      112,432 |   | $ |        40,018 |   | $ |        20,110 |   | $ |        21,570 |   | $ |      313,788 |   |
| Depreciation                  and amortization                  |                                                                                                               |          8,695                                       |   |   |        10,269 |   |   |          2,814 |   |   |          1,977 |   |   |          1,526 |   | $ |        25,281 |   |
| Segment                  operating income (loss)                |                                                                                                               |        10,362                                                  |   |   |        16,613 |   |   |          3,192 |   |   |          4,871 |   |   |           (217 | )  | $ |        34,821 |   |
| Capital                  expenditures                           |                                                                                                               |          3,273                                       |   |   |          7,585 |   |   |          1,060 |   |   |             198 |   |   |             679 |   | $ |        12,795 |   |
| **As                  of August 27, 2005**                 |                                                                                                               |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                                  |        71,792                                                  |   | $ |        65,241 |   | $ |        23,242 |   | $ |        11,693 |   | $ |        12,058 |   | $ |      184,026 |   |
| Segment                  assets                                 |                                                                                                               |      202,133                                                             |   |   |      174,787 |   |   |        64,714 |   |   |        37,687 |   |   |        33,615 |   | $ |      512,936 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

|                                                            | **AAC**                |                                                                                              |
|-----------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                            |                                                                                              | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                              | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 25, 2007**                 |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                 |      120,949                                                             |   | $ |      115,207 |   | $ |        44,428 |   | $ |          5,148 |   | $ |        30,004 |   | $ |      315,736 |   |
| Depreciation                  and amortization                  |                                                                                              |        10,176                                                  |   |   |        10,000 |   |   |          1,640 |   |   |          1,348 |   |   |          1,836 |   | $ |        25,000 |   |
| Segment                  operating income (loss)                |                                                                                              |          7,758                                       |   |   |        25,152 |   |   |          6,420 |   |   |      (29,062 | )  |   |          1,021 |   | $ |        11,289 |   |
| Capital                  expenditures                           |                                                                                              |          3,269                                       |   |   |          5,160 |   |   |          1,107 |   |   |             435 |   |   |             623 |   | $ |        10,594 |   |
| **Non-cash                  charges:**                          |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Impairment                        |                                                                                              |          4,917                                       |   |   |                 - |   |   |                 - |   |   |        22,751 |   |   |             345 |   | $ |        28,013 |   |
|                     Loss on operating lease agreement |                                                                                              |                 - |   |   |             961 |   |   |                 - |   |   |                 - |   |   |                 - |   | $ |             961 |   |
| **As                  of August 25, 2007**                 |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                 |        67,092                                                  |   | $ |        65,241 |   | $ |        23,781 |   | $ |          2,193 |   | $ |        14,970 |   | $ |      173,277 |   |
| Segment                  assets                                 |                                                                                              |      198,971                                                             |   |   |      164,052 |   |   |        56,286 |   |   |          8,064 |   |   |        37,946 |   | $ |      465,319 |   |
|                                                            |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | **AAC**                |                                                                                              |
|                                                            |                                                                                              | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                              | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 26, 2006**                 |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                 |      119,451                                                             |   | $ |      114,883 |   | $ |        43,940 |   | $ |        20,974 |   | $ |        21,662 |   | $ |      320,910 |   |
| Depreciation                  and amortization                  |                                                                                              |          8,614                                       |   |   |          9,904 |   |   |          2,917 |   |   |          2,086 |   |   |          1,574 |   | $ |        25,095 |   |
| Segment                  operating income                       |                                                                                              |        13,469                                                  |   |   |        23,812 |   |   |          3,324 |   |   |          1,571 |   |   |             347 |   | $ |        42,523 |   |
| Capital                  expenditures                           |                                                                                              |          3,713                                       |   |   |          6,072 |   |   |          1,257 |   |   |             758 |   |   |             711 |   | $ |        12,511 |   |
| **As                  of August 26, 2006**                 |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                 |        71,792                                                  |   | $ |        65,241 |   | $ |        23,781 |   | $ |        11,693 |   | $ |        12,058 |   | $ |      184,565 |   |
| Segment                  assets                                 |                                                                                              |      199,795                                                             |   |   |      168,631 |   |   |        65,220 |   |   |        31,700 |   |   |        33,196 |   | $ |      498,542 |   |
|                                                            |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | **AAC**                |                                                                                              |
|                                                            |                                                                                              | **Class**                                                                                         |   |   |   |   |   | **Graduation** |   |   | **Achievement** |   |   |   |   |   |   |
|                                                            |                                                                                              | **Rings**                                                                                         |   |   | **Yearbooks** |   |   | **Products** |   |   | **Publications** |   | **Other** |   |   | **Total** |   |
| **Year                  Ended August 27, 2005**                 |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales                                      | $                                                                                                 |      119,658                                                             |   | $ |      112,432 |   | $ |        40,018 |   | $ |        20,110 |   | $ |        21,570 |   | $ |      313,788 |   |
| Depreciation                  and amortization                  |                                                                                              |          8,695                                       |   |   |        10,269 |   |   |          2,814 |   |   |          1,977 |   |   |          1,526 |   | $ |        25,281 |   |
| Segment                  operating income (loss)                |                                                                                              |        10,362                                                  |   |   |        16,613 |   |   |          3,192 |   |   |          4,871 |   |   |           (217 | )  | $ |        34,821 |   |
| Capital                  expenditures                           |                                                                                              |          3,273                                       |   |   |          7,585 |   |   |          1,060 |   |   |             198 |   |   |             679 |   | $ |        12,795 |   |
| **As                  of August 27, 2005**                 |                                                                                              |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                        | $                                                                                                 |        71,792                                                  |   | $ |        65,241 |   | $ |        23,242 |   | $ |        11,693 |   | $ |        12,058 |   | $ |      184,026 |   |
| Segment                  assets                                 |                                                                                              |      200,813                                                             |   |   |      173,587 |   |   |        64,287 |   |   |        37,472 |   |   |        33,393 |   | $ |      509,552 |   |

----

**AMERICAN              ACHIEVEMENT GROUP HOLDING CORP.**

**AAC              GROUP HOLDING CORP.**

**AMERICAN              ACHIEVEMENT CORPORATION**

**17.      Subsequent Events**

----

**Item 9.*****Changes      in and Disagreements      with Accountants on Accounting and Financial      Disclosure***

**Item 9A.      *Controls and Procedures***

*Internal Control — Integrated Framework.*

----

**PART      III**

**Item 10.      **
***Director, Executive Officers of the      Registrants  and Corporate Governance***

| **Name**                               |   | **Age** |   | **Position**                                                        |
|----------------------------------------|--------|---------|--------|---------------------------------------------------------------------|
| Donald                  J. Percenti    |   | 51      |   | President,                  Chief Executive Officer and Director    |
| Kris                  G. Radhakrishnan |   | 46      |   | Chief                  Financial Officer and Treasurer              |
| Sherice                  P. Bench      |   | 48      |   | Executive                  Vice President and Secretary             |
| Theresa                  Ann Broome    |   | 55      |   | Vice                  President of Human Resources, AAC             |
| Matthew                  Gase          |   | 48      |   | General                  Manager—CBI                          |
| Norman                  C. Smith       |   | 58      |   | Vice                  President of Information Technology—AAC |
| Peter                  Lamm            |   | 56      |   | Director                                                            |
| Mac                  LaFollette        |   | 43      |   | Director                                                            |
| W.                  Gregg Smart        |   | 47      |   | Director                                                            |
| Jean                  Ann McKenzie     |   | 48      |   | Director                                                            |
| Myles                  Kleeger         |   | 32      |   | Director                                                            |
| Alan                  J. Bowers        |   | 52      |   | Director                                                            |

*** Donald      J. Percenti***

***Kris      G. Radhakrishnan***
** **
** **
** **

***Sherice      P. Bench***

***Theresa      Ann Broome***

***Matthew      Gase***

***Norman      C. Smith***

----

***Peter      Lamm***

***Mac      LaFollette***

***W.      Gregg Smart***

***Jean      Ann McKenzie***

***Myles      Kleeger***

***Alan      J. Bowers***

----

**Board      Committees**

**Code      of Ethics**

----

**Item 11.      **
***Executive Compensation***

**Compensation      Discussion and Analysis**

***Philosophy***

***Role      of the Compensation Committee***

***Market      Benchmarking and Positioning***

***Overview      of Elements of Executive Compensation***

***Base      Salary***

----

***Annual      Bonus***

| ·   | To                provide a significant incentive for achieving EBITDA                Objective; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | To                provide additional incentive to exceed EBITDA                Objective; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | To                provide incentive to continue to maximize EBITDA achievement in the                face                of significant adverse events; and, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | To                blend individual performance initiative with EBITDA                attainment. |
|--------------------|--------------------------------------------------------------------------------------------------|

| 1)   | EBITDA                component is awarded based on performance against the approved EBITDA                Objective for that fiscal year. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | Revenue                component, if applicable, is awarded based on the net revenue achieved                by the Company compared to the approved revenue objective for that                fiscal                year. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | Performance                Objective component is determined by individual participant                performance versus quantifiable objectives unique to the functional                responsibility of the participant.  There are 3 to 5 objectives                per participant.  Each objective is weighted to determine what                portion, if any, of the base salary bonus is possible to be earned                though                this component.  Individual performance objectives recognize the                achievement of specified targets or projects that move the Company                forward, or contribute to exceeding the EBITDA                goal. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4)   | Discretionary                component is based on the recommendation of the Chief Executive                Officer to the Compensation Committee of the Board of Directors on                each                individual participant as to how well he/she performed and the extent                to                which the individual contributed to the Company’s result.  It is                intended to recognize factors such as contributions above and beyond                expectations, perseverance in the face of adverse conditions and                to                recognize windfalls where results exceeded                expectations. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Named                Executive**                                        | **Basic                Plan**                                                                                                                                                                                     | **Supplemental                Plan****(performance                over 100% of EBITDA Objective)**                                              |
|---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Kris                G. Radhakrishnan, Chief Financial Officer             | 35%                Company EBITDA15%                Performance Objective10%                Discretion60%                Total Basic Bonus                                                                   | Determined                by EBITDA, up to 75% of Base Salary  for maximum total of Basic                and Supplemental Plans       |
| Sherice                P. Bench, Executive Vice President                 | 35%                Company EBITDA15%                Performance Objective10%                Discretion60%                Total Basic Bonus                                                                   | Determined                by EBITDA, up to 75% of Base Salary  for maximum total of Basic                and Supplemental Plans  |
| Matthew                Gase,General                Manager - CBI          | 15%                Company EBITDA15%                Division EBITDA10%                Revenue Goal10%                Performance Objective10%                Discretion60%                Total Basic Bonus  | Determined                by EBITDA, up to 75% of Base Salary for maximum total of Basic and                Supplemental Plans        |
| Theresa                Ann Broome, Vice of President Human Resources, AAC | 35%                Company EBITDA15%                Performance Objective10%                Discretion60%                Total Basic Bonus                                                                   | Determined                by EBITDA, up to 75% of Base Salary for maximum total of Basic and                Supplemental Plans             |

----

| **Named                Executive**                                       | **Bonus                Plan**                                                                                                                   | **Supplemental                Plan (performance over 100% of EBITDA                Objective)** |
|--------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
| Donald                J. Percenti, President and Chief Executive Officer | 40%                Company EBITDA25%                Budgeted Sales10%                Budgeted Debt Pay Down75%                Total Bonus  | Not                Applicable                                                                   |

***                      Cash Incentive Awards***

----

***               Other      Benefits***

***Compensation      Committee Interlocks and Insider Participation***

***Compensation      Committee Report***

----

**Summary      Compensation Table**

| **Name                  and Principal Position**                                                                                                                                                                                                                                                                                                                                       |   | **Year** |   | **Salary                  ($)**                                                                   |   |   | **Bonus                  ($)**                                                                    |            |   | **Non-                  Equity Incentive Plan Compensation ($) (1)**                                                            |      | **All                  Other Compensation ($)** |                                                                                                                            | **Total                  ($)** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|---------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------|-----------------|--------|---------------------------------------------------------------------------------------------------------------------------------|-----------|-------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |                                                                                              |   |   |                                                                                              |            |   |                                                                                                                            |      |                                            |                                                                                                                            |                           |   |   |
| Donald                  J. Percenti                                                                                                                                                                                                                                                                                                                                                    |   | 2007     |   |  396,154                                                                                     |   |   |       -                                                             |            |   | 40,000                                                                                                                          |  (7) |                                            |  9,000                                                                                                                     |     (8)    |   |                     445,154 |
| President                  and Chief                                                                                                                                                                                                                                                                                                                                                   |   | 2006     |   |       325,500                                                       |   |   |                -       |            |   |              37,000                                            |      |                                            |                 9,000                           |     (8)    |   |        371,500 |
| Executive                  Officer                                                                                                                                                                                                                                                                                                                                                     |   | 2005     |   |       258,000                                                       |   |   |        350,000                                                 |   (6) |   |            139,400                                                       |      |                                            |                 3,000                           |     (8)    |   |        750,400 |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |                                                                                              |   |   |                                                                                              |            |   |                                                                                                                            |      |                                            |                                                                                                                            |                           |   |   |
| David                  G. Fiore (2)                                                                                                                                                                                                                                                                                                                                                    |   | 2007     |   |                 - |   |   |                 - |            |   |                      - |      |                                            |                      - |                           |   |                 - |
|                                                                                                                                                                                                                                                                                                                                                                                   |   | 2006     |   |         67,846                                            |   |   |                 - |            |   |                      - |      |                                            |             463,250                                                 |     (9)    |   |        531,096 |
|                                                                                                                                                                                                                                                                                                                                                                                   |   | 2005     |   |        432,308                                                 |   |   |        700,000                                                 |   (6) |   |            200,000                                                       |      |                                            |                 9,000                           |                           |   |     1,341,308 |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |                                                                                              |   |   |                                                                                              |            |   |                                                                                                                            |      |                                            |                                                                                                                            |                           |   |   |
| Kris                  G. Radhakrishnan(3)                                                                                                                                                                                                                                                                                                                                              |   | 2007     |   |       105,769                                                       |   |   |                 - |            |   |              15,865                                            |      |                                            |                      - |                           |   |        121,634 |
| Chief                  Financial                                                                                                                                                                                                                                                                                                                                                       |   | 2006     |   |                 - |   |   |                 - |            |   |                      - |      |                                            |                      - |                           |   |                 - |
| Officer                                                                                                                                                                                                                                                                                                                                                                                |   | 2005     |   |                 - |   |   |                 - |            |   |                      - |      |                                            |                      - |                           |   |                 - |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |                                                                                              |   |   |                                                                                              |            |   |                                                                                                                            |      |                                            |                                                                                                                            |                           |   |   |
| Sherice                  P. Bench(3)                                                                                                                                                                                                                                                                                                                                                   |   | 2007     |   |        246,271                                                 |   |   |                -       |            |   |              12,360                                            |  (7) |                                            |                     -       |                           |   |        258,631 |
| Executive                  Vice President                                                                                                                                                                                                                                                                                                                                              |   | 2006     |   |        239,987                                                 |   |   |                -       |            |   |              36,624                                            |      |                                            |                      - |                           |   |        276,611 |
|                                                                                                                                                                                                                                                                                                                                                                                   |   | 2005     |   |       224,588                                                       |   |   |        325,000                                                 |   (6) |   |              82,000                                            |      |                                            |                      - |                           |   |        631,588 |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |                                                                                              |   |   |                                                                                              |            |   |                                                                                                                            |      |                                            |                                                                                                                            |                           |   |   |
| Matthew                  Gase(4)                                                                                                                                                                                                                                                                                                                                                       |   | 2007     |   |       245,769                                                       |   |   |                -       |            |   |                     -       |      |                                            |               102,802                                     |   (10)               |   |        348,571 |
| General                  Manager - CBI                                                                                                                                                                                                                                                                                                                                                 |   | 2006     |   |       138,461                                                       |   |   |                 - |            |   |             67,200                                                  |      |                                            |               34,446                                      |   (10)               |   |        240,107 |
|                                                                                                                                                                                                                                                                                                                                                                                   |   | 2005     |   |                -       |   |   |                 - |            |   |                     -       |      |                                            |                      - |                           |   |                 - |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |                                                                                              |   |   |                                                                                              |            |   |                                                                                                                            |      |                                            |                                                                                                                            |                           |   |   |
| Theresa                  Ann Broome (5)                                                                                                                                                                                                                                                                                                                                                |   | 2007     |   |       173,769                                                       |   |   |                 - |            |   |             26,265                                                  |  (7) |                                            |               79,210                                      |   (10)               |   |       279,244 |
| Vice                  President – Human                                                                                                                                                                                                                                                                                                                                          |   | 2006     |   |          55,577                                      |   |   |                 - |            |   |              10,767                                            |      |                                            |               9,810                                       |   (10)               |   |          76,154 |
|  Resources,                  AAC                                                                                                                                                                                                                                                                                                                                                  |   | 2005     |   |                -       |   |   |                 - |            |   |                      - |      |                                            |                     -       |                           |   |                - |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |                                                                                              |   |   |                                                                                              |            |   |                                                                                                                            |      |                                            |                                                                                                                            |                           |   |   |
| (1)                      Amounts represent total earned under the annual bonus plan during                  the                  fiscal years presented.  These amounts are generally paid during                  the second quarter of the following fiscal year.                                                                                      |
| (2)                      Mr. Fiore served as our President and Chief Executive Officer                  until                  September 2005, at which time Mr. Percenti became our President                  and Chief                  Executive Officer.                                                                                                      |
| (3)                      Mr. Radhakrishnan began employment as our Chief Financial                  Officer                  and Treasurer in April 2007 at which time Ms. Bench transitioned                  from                  Chief Financial Officer to Executive Vice President and                  Secretary.                                           |
| (4)                      Mr. Gase began employment as General Manager – CBI in February                  2006.                                                                                                                                                                                                                                               |   |     |   |                                                                                              |   |   |
| (5)                      Ms. Broome began employment as Vice President – Human Resources,                  AAC in April 2006.                                                                                                                                                                                                                                |   |     |   |
| (6)   One-time                  senior management bonuses paid in fiscal 2005 were based partly                  on the                  expected future value of the CIP benefit.  In the event of a                  qualified liquidity event, payments from the CIP will be reduced                  by the                  amount of the special bonus. |
| (7)   Fiscal                  year 2007 compensation under the annual bonus plan will be paid                  in the                  form of CIP units as elected by the named executive                  officer.                                                                                                                                                    |
| (8)   All                  Other Compensation for Mr. Percenti consists of a car allowance                  paid                  monthly.                                                                                                                                                                                                                              |   |     |   |                                                                                              |   |   |
| (9)   All                  Other Compensation for Mr. Fiore includes $450,000 in termination                  payments.                                                                                                                                                                                                                                                 |   |     |   |                                                                                              |   |   |
| (10)   All                  Other Compensation for Mr. Gase and Ms. Broome consists of relocation                  allowances.                                                                                                                                                                                                                                          |   |     |   |

----

**Grants      of Plan-based Awards Table**

| **Name**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **Grant                  Date**     |   | **Estimated                  Possible Payouts Under Non-Equity Incentive Plan Awards                  (1)**  |                                       | **All                  Other Stock Awards: Number of Shares of Stock or Units (2)**                                                                                                                      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   | **Threshold                  ($)**                                                                                | **Target                  ($)**            | **Maximum                  ($)**                                                                                                                                                                         |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |   |   |   |
| Donald                  J. Percenti                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | August                  27, 2007    |   |       --                                                                            |  300,000                              |  $                                              300,000 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | September                  1, 2006  |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |                 1,600 |   (3) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | November                  15, 2006  |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |                    913 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |   |   |   |
| Kris                  G. Radhakrishnan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | August                  27, 2007    |   |       --                                                                            |       63,462 |       79,327                                                                                                                                                               |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | April                  16, 2007     |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |                 6,000 |   (4) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |   |   |   |
| Sherice                  P. Bench                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | August                  27, 2007    |   |       --                                                                            |                    148,320            |      185,400                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | November                  15, 2006  |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |                    308 |   (5) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |   |   |   |
| Matthew                  Gase                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | August                  27, 2007    |   |       --                                                                            |  150,000                              |       187,500                                                                                                                                                              |   |   |   (6) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |   |   |   |
| Theresa                  Ann Broome                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | August                  27, 2007    |   |       --                                                                            |                    108,000            |      135,000                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | September                  21, 2006 |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |                 2,000 |   (7) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |   |   |   |
| (1)  Amounts                  represent estimated possible payouts under the annual bonus                  plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                |   |                                                                                                              |
| (2)  Amounts                  represent units granted under the CIP.  As the payment under the                  CIP is contingent on occurrence of a liquidity event which is not                  assessed                  to be probable, and the amount payable under the plan is not reasonably                  estimable as of the date of the financial statements, no expense                  has been                  recognized for units granted under the plan.                                                                                  |
| (3)  CIP                  units granted on September 1, 2006 consist of 800 Liquidity Event                  Units                  and 800 Time-Based Units.  CIP units granted on November 15,                  2006 consist of 913 Time-Based Units.  At  August 25,                  2007, Mr. Percenti holds a total of 21,310 CIP units consisting                  of 9,960                  Liquidity Event Units and 11,350 Time-Based Units.  Mr. Percenti                  also holds 203 units awarded under the SIP. |
| (4)  CIP                  units granted on April 16, 2007 consist of 3,000 Liquidity Event                  Units and                  3,000 Time-Based Units.  At  August 25, 2007, Mr.                  Radhakrishnan holds a total of 6,000 CIP units consisting of 3,000                  Liquidity Event Units and 3,000 Time-Based Units.                                                                                                                                                                                                       |
| (5)  CIP                  units granted on November 15, 2006 consist of 308 Time-Based                  Units.  At  August 25, 2007, Ms. Bench holds a total                  of 13,875 CIP units consisting of 6,584 Liquidity Event Units and                  7,291                  Time-Based Units. Ms. Bench also holds 150 units awarded under                  the                  SIP.                                                                                                                                                     |
| (6)  At  August                  25, 2007, Mr. Gase holds a total of 7,400 CIP units consisting                  of 3,500                  Liquidity Event Units and 3,900 Time-Based Units.                                                                                                                                                                                                                                                                                                                                                                    |
| (7)  CIP                  units granted on September 21, 2006 consist of 1,000 Liquidity                  Event Units                  and 1,000 Time-Based Units.  At  August 25, 2007, Ms.                  Broome holds a total of 2,000 CIP units consisting of 1,000 Liquidity                  Event Units and 1,000 Time-Based Units.                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                                                                                              |                                       |                                                                                                                                                                                                     |   |   |   |   |

----

**Employment      Agreements**

***Donald      J. Percenti.***

***Kris      G. Radhakrishnan.***

***Sherice      P. Bench.***

***Matthew      Gase.***

----

***Theresa      Ann Broome.***

**Potential      Payments upon Termination or Change in Control**

| **Name                  and Triggering Event**                                                                                                                                                                                                                                  |    | **Salary                  (1)** |    | **Benefits                  (1)**                      |   | **Payment                  Under Cash Incentive Plan**                                       |   | **Other**                                                                                    |    | **Total**                       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------|---------|--------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|---------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                            |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Donald                  J. Percenti -                                                                                                                                                                                                                                           |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Termination                  without cause or for good reason (2)                                                                                                                                                                                                               |  $ |                    600,000 |  $ |         24,270 |   |                -- |   |                -- | $  |                    624,270 |   |
| Change                  in Control                                                                                                                                                                                                                                              |    |  --                        |    |  --                                               |   |  (3)                                                                                    |   |                                                                                         |    |                            |   |
|                                                                                                                                                                                                                                                                            |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Kris                  G. Radhakrishnan -                                                                                                                                                                                                                                        |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Termination                  without cause or for good reason                                                                                                                                                                                                                   |  $ |  275,000                   |  $ |        16,180       |   |  --                                                                                     |   |  --                                                                                     |  $ |                    291,180 |   |
| Change                  in Control                                                                                                                                                                                                                                              |    |  --                        |    |  --                                               |   |  (3)                                                                                    |   |                                                                                         |    |                            |   |
|                                                                                                                                                                                                                                                                            |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Sherice                  P. Bench -                                                                                                                                                                                                                                             |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Termination                  without cause or for good reason                                                                                                                                                                                                                   |  $ | 370,800                         |  $ |       24,270             |   |  --                                                                                     |   |  --                                                                                     |  $ |                    395,070 |   |
| Change                  in Control                                                                                                                                                                                                                                              |    |  --                        |    |  --                                               |   |  (3)                                                                                    |   |                                                                                         |    |                            |   |
|                                                                                                                                                                                                                                                                            |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Matthew                  Gase -                                                                                                                                                                                                                                                 |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Termination                  without cause or for good reason                                                                                                                                                                                                                   |  $ |  245,000                   |  $ |       16,180             |   |  --                                                                                     |   |  --                                                                                     |  $ |                    261,180 |   |
| Change                  in Control                                                                                                                                                                                                                                              |    |  --                        |    |  --                                               |   |  (3)                                                                                    |   |                                                                                         |    |                            |   |
|                                                                                                                                                                                                                                                                            |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Theresa                  Ann Broome -                                                                                                                                                                                                                                           |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| Termination                  without cause or for good reason                                                                                                                                                                                                                   |  $ |  180,000                   |  $ |        4,919        |   |  --                                                                                     |   |  --                                                                                     |  $ | 184,919                         |   |
| Change                  in Control                                                                                                                                                                                                                                              |    |  --                        |    |  --                                               |   |  (3)                                                                                    |   |                                                                                         |    |                            |   |
|                                                                                                                                                                                                                                                                            |    |                            |    |                                                   |   |                                                                                         |   |                                                                                         |    |                            |   |
| (1)                      The executive officer is generally entitled to receive termination                  payments and health benefits conditioned upon signing a release                  agreement.                                                    |
| (2)                      Mr.  Percenti must forgo all entitlement to termination                  payments or benefits if he elects not to be bound by the covenant                  not to                  compete in his employment agreement. |
| (3)                      Upon change of control of the Company, payment will be made                  under                  the CIP plan.  The current or future value of the CIP units                  cannot be reasonably estimated.         |

----

**Compensation      of Directors**

| **Name**                                                                                                                                                                                                                                                                                                                          |   | **Fees                  Earned or Paid in Cash ($)**                                                   |   | **All                  Other Compensation ($)**                                                    |   | **Total                  ($)**                                                                                                                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| Peter                  Lamm (1)                                                                                                                                                                                                                                                                                                   |   |               --                 |   |                 -- |   |                          - |
| Mac                  LaFollette (1)                                                                                                                                                                                                                                                                                               |   |  --                                                                                               |   |  --                                                                                           |   |  -                                                                                                                                                 |   |
| W.                  Gregg Smart (1)                                                                                                                                                                                                                                                                                               |   |  --                                                                                               |   |  --                                                                                           |   |  -                                                                                                                                                 |   |
| Jean                  Ann McKenzie (2)                                                                                                                                                                                                                                                                                            |   | 50,000                                                                                                 |   |  8,481                                                                                        |   |   58,481                                                                                                                                      |   |
| Myles                  Kleeger                                                                                                                                                                                                                                                                                                    |   |                 50,000 |   |  --                                                                                           |   |                 50,000                                                  |
| Alan                  J. Bowers                                                                                                                                                                                                                                                                                                   |   |                 50,000 |   |  --                                                                                           |   |                 50,000                                                  |
|                                                                                                                                                                                                                                                                                                                              |   |                                                                                                   |   |                                                                                               |   |                                                                                                                                                    |
| (1)                      Messrs. Lamm, LaFollette and Smart are considered affiliates                  of the                  Company through their positions with Fenway Partners.  Therefore                  they do not receive compensation for their services as                  directors. |
| (2)                      Ms. McKenzie received $8,481 in compensation for consulting                  services performed during fiscal year                  2007.                                                                                                                                            |

**Item 12.      **
***Security Ownership of Certain Beneficial Owners and      Management and Related Stockholder Matters***

|                                                                                               |       |                           |       | **Percentage**                                                                         |   |          |                                      |          | **Percentage**                                                        |   |   |
|----------------------------------------------------------------------------------------------------|------------|--------------------------------|------------|----------------------------------------------------------------------------------------|--------|---------------|-------------------------------------------|---------------|-----------------------------------------------------------------------|--------|--------|
|                                                                                               |       |                           |       | **Ownership**                                                                          |   |          |                                      |          | **Ownership**                                                         |   |   |
|                                                                                               |       |                           |       | **Interest                  in**                                                       |   |          |                                      |          | **Interest                  In**                                      |   |   |
|                                                                                               | **Common** |                           | **Common** |                                                                                   |   | **Preferred** |                                      | **Preferred** |                                                                  |   |
|                                                                                               | **Stock**  |                           | **Stock**  |                                                                                   |   | **Stock**     |                                      | **Stock**     |                                                                  |   |
| American                  Achievement Holdings LLC(1)                                              |       |   415,510            |       |               82 | %      |          |  —                             |          |  —                                                         |   |   |
|                      c/o Fenway Partners, LLC.                                      |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
|                      152 West 57th                  Street                          |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
|                      New York, NY 10019                                             |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
| Investors                  advised by J.P. Morgan Investment Management Inc.(2)                    |       |     70,729 |       |               14 | %      |          |  —                             |          |  —                                                         |   |   |
|                      c/o J.P.Morgan Investment Management Inc.                      |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
|                      522 Fifth Avenue                                               |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
|                      New York, New York 10036                                       |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
| Carlyle                  Mezzanine Partners, L.P.                                                  |       |  —                  |       |  —                                                                          |   |          |       7,500 |          |            100 | %      |   |
|                      1001 Pennsylvania Avenue                                       |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
|                      Washington, D.C. 20004-2505                                    |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
| Alan                  J. Bowers                                                                    |       |  —                  |       |  —                                                                          |   |          |  —                             |          |  —                                                         |   |   |
| Myles                  Kleeger                                                                     |       |  —                  |       |  —                                                                          |   |          |  —                             |          |  —                                                         |   |   |
| Mac                  LaFollette                                                                    |       |                           |       |                                                                                   |   |          |                                      |          |                                                                  |   |   |
| Peter                  Lamm(3)                                                                     |       |   415,510            |       |               82 | %      |          |  —                             |          |  —                                                         |   |   |
| Jean                  Ann McKenzie                                                                 |       |  —                  |       |  —                                                                          |   |          |  —                             |          |  —                                                         |   |   |
| W.                  Gregg Smart                                                                    |       |  —                  |       |  —                                                                          |   |          |  —                             |          |  —                                                         |   |   |
| All                  executive officers and directors as a group (13 persons)                  (4) |       |   415,510            |       |               82 | %      |          |  —                             |          |  —                                                         |   |   |

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    |   | All                of the voting interests of American Achievement Holdings LLC are                held by                Fenway Partners Capital Fund II, L.P., FPIP, LLC and FPIP Trust,                LLC, each                of which are affiliates of Fenway Partners, LLC. Accordingly, such                entities may be deemed to beneficially own the shares of common stock                held                by American Achievement LLC. Each of such entities disclaims beneficial                ownership of such shares except to the extent of its pecuniary interest                therein.                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (2)    |   | The                investors are J.P. Morgan U.S. Direct Corporate Finance Institutional                Investors II LLC (“CFII I”), which holds 67,715 shares of common stock,                J.P. Morgan U.S. Direct Corporate Finance Private Investors II LLC                (“CFII                P”), which holds 2,660 shares of common stock and 522 Fifth Ave Fund,                L.P.                (“522”), which holds 354 shares of common stock. J.P. Morgan Investment                Management Inc., a registered investment advisor, controls the voting                and                disposition of these shares as the owner of the managing member of                CFII I                and CFII P and as investment advisor to 522. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (3)    |   | Mr. Lamm                is a founder of Fenway Partners, LLC. a managing member of Fenway                Partners                II LLC, the general partner of Fenway Partners Capital Fund II, L.P.                and                is a managing member of each of FPIP, LLC and FPIP Trust, LLC.                Accordingly, Mr. Lamm may be deemed to beneficially own the shares of                common stock held by American Achievement Holdings LLC. Mr. Lamm                disclaims beneficial ownership of such shares except to the extent                of his                pecuniary interests therein.                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (4)    |   | None                of our named executive officers are currently beneficial owners of                interests in Parent Holdings and are therefore not listed separately                in                this table.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

**Item 13.      **
***Certain Relationships and Related Transactions and Director      Independence***

**Arrangements      with Our Investors**

**Management      Agreement**

**Other      Transactions**

**Policies      and Procedures for Review of Related-Person Transactions**

**     **

**Director      Independence**

**     **

----

**Item 14.      **
***Principal Accountant Fees and      Services***

|                                |                                         |                                                                                                                                  |                                         |   |                                                                                  |   | **%                  of Services**                                                                     |
|-------------------------------------|----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|                                | **Fiscal                  Year Ended**  |                                                                                                                                  | **Fiscal                  Year Ended**  |   |
|                                | **August                  25, 2007**    |                                                                                                                                  | **August                  26, 2006**    |   | **August                  25, 2007**                                             |   |                    **August                  26, 2006**                                                               |   |
| Audit                  fees         | $                                            |           636,000                                                                   |                                         | $      |              443,000 |   |                   80                  | % |   |                         38 | % |   |
| Audit-related                  fees |                                         |                       - |                                         |   |              260,000 |   |                      - | % |   |                         22 | % |   |
| Tax                  fees           |                                         |           125,000                                                                   |                                         |   |              140,000 |   |                   17                  | % |   |                         12 | % |   |
| All                  other fees     |                                         |             22,000                                                        |                                         |   |              322,000 |   |                     3       | % |   |                         28 | % |   |
| **Total                  fees**     | $                                            |           783,000                                                                   |                                         | $      |           1,165,000                 |   |                 100                             | % |   |                       100 | % |   |
|                                |                                         |                                                                                                                                  |                                         |   |                                                                                  |   |                                                                                                                            |   |   |   |   |   |

**PART      IV**

**Item 15.      Exhibits, Financial Statement Schedules**

----

| **EXHIBIT                  INDEX** |
|------------------------------------|
|                               |   |   |   |   |
| **Exhibit**                        |   |   |   |
| **Number**                         |   |   | **Designation** |
|                               |   |   |   |   |
|                               | 3.1 |   |   | Certificate                  of Incorporation of American Achievement Group Holding Corp. (incorporated                  by reference to Exhibit 3.1 to American Achievement Group Holdings                  Corp.’s Form S-4 as filed on September 1,                  2006). |
|                               |   |   |   |   |
|                               | 3.2 |   |   | Bylaws                  of American Achievement Group Holding Corp. (incorporated by reference                  to                  Exhibit 3.2 to American Achievement Group Holdings Corp.’s                  Form S-4 as filed on September 1, 2006) |
|                               |   |   |   |   |
|                               | 3.3 |   |   | Amended                  and Restated Certificate of Incorporation of AAC Group Holding                  Corp.                  (incorporated by reference to Exhibit 3.1 to AAC Group Holding                  Corp.’s Form 8-K as filed on January 24,                  2006). |
|                               |   |   |   |   |
|                               | 3.4 |   |   | Bylaws                  of AAC Group Holding Corp. (incorporated by reference to Exhibit 3.2                  to AAC Group Holding Corp.’s Form S-4 as filed on December 21,                  2004). |
|                               |   |   |   |   |
|                               | 3.5 |   |   | Certificate                  of Incorporation of American Achievement Corporation (incorporated                  by                  reference to Exhibit 3.1 to American Achievement Corporation’s                  Form S-4/A as filed on March 14, 2002). |
|                               |   |   |   |   |
|                               | 3.6 |   |   | Bylaws                  of American Achievement Corporation (incorporated by reference                  to                  Exhibit 3.2 to American Achievement Corporation’s Amended                  Form S-4 as filed on April 5, 2002). |
|                               |   |   |   |   |
|                               | 4.1 |   |   | Indenture,                  dated as of June 12, 2006, among the American Achievement Group                  Holding Corp. and U.S. Bank National Association, as Trustee (incorporated                  by reference to Exhibit 4.1 to American Achievement Group Holdings                  Corp.’s Form S-4 as filed on September 1,                  2006). |
|                               |   |   |   |   |
|                               | 4.2 |   |   | Form                  of 14.75% Senior PIK Note due October 1, 2012 (incorporated by                  reference to Exhibit 4.2 to American Achievement Group Holdings                  Corp.’s Form S-4 as filed on September 1,                  2006). |
|                               |   |   |   |   |
|                               | 4.3 |   |   | Exchange                  and Registration Rights Agreement, dated June 12, 2006, among                  American Achievement Group Holding Corp., Goldman, Sachs & Co. and                  Lehman Brothers Inc. (incorporated by reference to Exhibit 4.3 to                  American Achievement Group Holdings Corp.’s Form S-4 as filed on                  September 1, 2006) |
|                               |   |   |   |   |
|                               | 4.4 |   |   | Indenture,                  dated as of November 16, 2004, among the AAC Group Holding Corp. and                  U.S. Bank National Association, as Trustee (incorporated by reference                  to                  Exhibit 4.7 to AAC Group Holding Corp.’s Form S-4 as filed on                  December 21, 2004). |
|                               |   |   |   |   |
|                               | 4.5 |   |   | Form                  of 10.75% Senior Discount Note due October 1, 2012 (incorporated by                  reference to Exhibit 4.8 to AAC Group Holding Corp.’s Form S-4                  as filed on December 21, 2004). |
|                               |   |   |   |   |
|                               | 4.6 |   |   | Indenture,                  dated as of March 25, 2004, among The Bank of New York, as Trustee,                  and the Guarantors (incorporated by reference to Exhibit 4.1 to                  American Achievement Corporation’s Report on Form 10-Q, dated                  July 13, 2004). |
|                               |   |   |   |   |
|                               | 4.7 |   |   | Form                  of 8.25% Senior Subordinated Notes due April 1, 2012 (incorporated by                  reference to Exhibit 4.2 to American Achievement Corporation’s                  Quarterly Report on Form 10-Q as filed on July 13,                  2004). |
|                               |   |   |   |   |
|                               | 10.1 |   |   | Credit                  and Guaranty Agreement, dated March 25, 2004, by and among American                  Achievement Corporation, the Guarantors, Goldman Sachs Credit Partners                  L.P. and the other lender parties thereto (incorporated by reference                  to                  Exhibit 10.2 American Achievement Corporation’s Quarterly Report on                  Form 10-Q as filed on July 13, 2004). |
|                               |   |   |   |   |
|                               | 10.2 |   |   | Amendment                  to Credit Agreement and Guaranty Agreement, dated August 17, 2006, by                  and among American Achievement Corporation, the Guarantors, Goldman                  Sachs                  Credit Partners L.P., and such other lender parties thereto (incorporated                  by reference to Exhibit 10.1 American Achievement Corporation’s                  Current Report on Form 8-K as filed on August 18,                  2006). |
|                               |   |   |   |   |
|                               | 10.3 |   |   | Pledge                  and Security Agreement between the Guarantors and Goldman Sachs                  Credit                  Partners, L.P., dated March 25, 2004 (incorporated by reference to                  Exhibit 10.3 of American Achievement Corporation’s Quarterly Report                  on Form 10-Q as filed on July 13,                  2004). |

----

|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------|--------|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |   |            |
| **Number**  |   |   | **Designation** |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.4   |   |            | Intercreditor                  Agreement between Goldman Sachs Credit Partners L.P., the Secured                  Parties                  and The Bank of Nova Scotia, dated March 25, 2004 (incorporated by                  reference to Exhibit 10.4 of American Achievement Corporation’s                  Quarterly Report on Form 10-Q as filed on July 13,                  2004).                                                  |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.5   |   |            | First                  Amended and Restated Letter Agreement for Fee Consignment and Purchase                  of                  Gold between Commemorative Brands, Inc. and The Bank of Nova Scotia,                  dated                  March 25, 2004 (incorporated by reference to Exhibit 10.5 of                  American Achievement Corporation’s Quarterly Report on Form 10-Q as                  filed on July 13, 2004). |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.6   |   |            | Letter                  Agreement for Addition of Approved Inventory Locations between                  Commemorative Brands, Inc. and The Bank of Nova Scotia, dated June 9,                  2004 (incorporated by reference to Exhibit 10.6 of American                  Achievement Corporation’s Quarterly Report on Form 10-Q as filed on                  July 13, 2004).                                                            |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.7   |   |            | Management                  Advisory Agreement by and between AAC Holding Corp., American Achievement                  Corporation, and Fenway Partners, Inc., dated March 25, 2004                  (incorporated by reference to Exhibit 10.7 of American Achievement                  Corporation’s Quarterly Report on Form 10-Q as filed on July 13,                  2004).                                                                |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.8   |   |            | Employment                  Agreement, dated as of December 16, 1996 by and between Commemorative                  Brands, Inc. and Donald J. Percenti (incorporated by reference                  to                  Exhibit 10.11 of American Achievement Corporation’s Form S-4/A                  as filed on April 5, 2002).                                                                                                          |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.9   |   |            | First                  Amendment to the Employment Agreement by and between Commemorative                  Brands,                  Inc. and Donald J. Percenti dated April 9, 2004 (incorporated by                  reference to Exhibit 10.16 of American Achievement Corporation’s                  Form S-4 as filed on July 22, 2004).                                                                                                |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.10  |   |            | Employment                  Agreement, dated as of April 16, 2007 by and between Commemorative                  Brands,                  Inc. and Kris G. Radhakrishnan.                                                                                                                                                                                                                                                                                              |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.11  |   |            | Employment                  Agreement, dated as of December 16, 1996 by and between Commemorative                  Brands, Inc. and Sherice P. Bench, as amended (incorporated by                  reference                  to Exhibit 10.12 of American Achievement Corporation’s                  Form S-4/A as filed on April 5, 2002)                                                                                                 |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.12  |   |            | First                  Amendment to the Employment Agreement by and between Commemorative                  Brands,                  Inc. and Sherice P. Bench, dated July 2, 1999 (incorporated by                  reference to Exhibit 10.13 of American Achievement Corporation’s                  Form S-4 as filed on July 22, 2004).                                                                                                  |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.13  |   |            | Second                  Amendment to the Employment Agreement by and between Commemorative                  Brands,                  Inc. and Sherice P. Bench dated April 9, 2004 (incorporated by                  reference to Exhibit 10.14 of American Achievement Corporation’s                  Form S-4 as filed on July 22, 2004).                                                                                                 |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.14  |   |            | Employment                  Agreement dated as of February 1, 2006 between Commemorative Brands,                  Inc. and Matthew Gase (incorporated by reference to Exhibit 10.1 to                  American Achievement Corporation’s Current Report on Form 8-K as                  filed on June 5, 2006).                                                                                                                            |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.15  |   |            | Employment                  Agreement dated as of January 14, 2000 by and between Commemorative                  Brands, Inc. and Norman C. Smith (incorporated by reference to                  Exhibit                  10.15 of American Achievement Corporation’s Annual Report on Form 10-K as                  filed on November 22, 2006).                                                                                                          |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.16  |   |            | First                  Amendment to the Employment Agreement by and between Commemorative                  Brands,                  Inc. and Norman C. Smith, dated April 12, 2004 (incorporated by                  reference to Exhibit 10.16 of American Achievement Corporation’s Annual                  Report on Form 10-K as filed on November 22, 2006).                                                                                          |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.17  |   |            | Second                  Amendment to the Employment Agreement by and between Commemorative                  Brands,                  Inc. and Norman C. Smith, dated May 12, 2004 (incorporated by                  reference to Exhibit 10.17 of American Achievement Corporation’s Annual                  Report on Form 10-K as filed on November 22, 2006).                                                                                           |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | 10.18  |   |            | Employment                  Agreement, dated as of April 18, 2006 by and between Commemorative                  Brands,                  Inc. and Ann Broome.                                                                                                                                                                                                                                                                                                         |
|        |   |   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| **Exhibit** |   |   |            |
|-------------|--------|--------|-----------------|
| **Number**  |   |   | **Designation** |
|        |   |   |            |   |
|        | 12.1   |   |            | Statement                  regarding Computation of Ratios of Earnings to Fixed                  Charges |
|        |   |   |            |   |
|        | 21.1   |   |            | Subsidiaries                  of American Achievement Group Holding Corp. |
|        |   |   |            |   |
|        | 31.1   |   |            | Certification                  by Donald J. Percenti pursuant to Rule 13a-14(a) and 15d-14(a), as                  adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002. |
|        |   |   |            |   |
|        | 31.2   |   |            | Certification                  by Kris G. Radhakrishnan pursuant to Rule 13a-14(a) and 15d-14(a), as                  adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002. |
|        |   |   |            |   |
|        |   |   |            |   |
|        | 32.1   |   |            | Certification                  by Donald J. Percenti pursuant to Section 1350, Chapter 63 of                  Title 18, United States Code, as adopted pursuant to Section 906 of                  the Sarbanes-Oxley Act of 2002. |
|        |   |   |            |   |
|        | 32.2   |   |            | Certification                  by Kris G. Radhakrishnan pursuant to Section 1350, Chapter 63 of                  Title 18, United States Code, as adopted pursuant to Section 906 of                  the Sarbanes-Oxley Act of 2002. |

----

**Signatures**

|                                   |   |                                                                      |   |
|----------------------------------------|--------|---------------------------------------------------------------------------|--------|
|                                   |   | AMERICAN                ACHIEVEMENT GROUP HOLDING CORP.(Registrant)  |   |
|                                   |   | AAC                GROUP HOLDING CORP.(Registrant)                   |   |
|                                   |   | AMERICAN                ACHIEVEMENT CORPORATION(Registrant)          |   |
| /s/                Donald J. Percenti  |   | /s/                Kris G. Radhakrishnan                                  |   |
| Donald                J. Percenti      |   | Kris                G. Radhakrishnan                                      |   |
| Chief                Executive Officer |   | Chief                Financial Officer                                    |   |

|                                           |   |                                                                                                                                                                                                                                                                   |
|------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Signatures**                                 |   | **Title**                                                                                                                                                                                                                                                              |
| /s/                Donald J. Percenti     |   | President                and Chief Executive Officer (Principal Executive Officer) and Director                of                American Achievement Group Holding Corp., AAC Group Holding Corp.,                and                American Achievement Corporation |
| Donald                J. Percenti              |   |                                                                                                                                                                                                                                                                   |
|                                           |   |                                                                                                                                                                                                                                                                   |
| /s/                Kris G. Radhakrishnan  |   | Chief                Financial Officer and Treasurer of American Achievement Group Holding                Corp., AAC Group Holding Corp., and American Achievement                Corporation                                                                          |
| Kris                G. Radhakrishnan           |   |                                                                                                                                                                                                                                                                   |
|                                           |   |                                                                                                                                                                                                                                                                   |
| /s/                Mac LaFollette              |   | Director                of American Achievement Group Holding Corp., AAC Group Holding Corp.,                and                American Achievement Corporation                                                                                                       |
| Mac                LaFollette                  |   |                                                                                                                                                                                                                                                                   |
|                                           |   |                                                                                                                                                                                                                                                                   |
| /s/                Peter Lamm             |   | Director                of American Achievement Group Holding Corp., AAC Group Holding Corp.,                and                American Achievement Corporation                                                                                                       |
| Peter                Lamm                      |   |                                                                                                                                                                                                                                                                   |
|                                           |   |                                                                                                                                                                                                                                                                   |
| /s/                W. Gregg Smart         |   | Director                of American Achievement Group Holding Corp., AAC Group Holding Corp.,                and                American Achievement Corporation                                                                                                       |
| W.                Gregg Smart                  |   |                                                                                                                                                                                                                                                                   |
|                                           |   |                                                                                                                                                                                                                                                                   |
| /s/                Alan J. Bowers              |   | Director                of American Achievement Group Holding Corp., AAC Group Holding Corp.,                and                American Achievement Corporation                                                                                                       |
| Alan                J. Bowers                  |   |                                                                                                                                                                                                                                                                   |
|                                           |   |                                                                                                                                                                                                                                                                   |
| /s/                Jean Ann McKenzie      |   | Director                of American Achievement Group Holding Corp., AAC Group Holding Corp.,                and                American Achievement Corporation                                                                                                       |
| Jean                Ann McKenzie               |   |                                                                                                                                                                                                                                                                   |
|                                           |   |                                                                                                                                                                                                                                                                   |
| /s/                Myles Kleeger          |   | Director                of American Achievement Group Holding Corp., AAC Group Holding Corp.,                and                American Achievement Corporation                                                                                                       |
| Myles                Kleeger                   |   |                                                                                                                                                                                                                                                                   |

----