American Greetings completes tender offer for PhotoWorks, Inc.

The initial offering period for the tender offer ended at 5:00 p.m., New York City time, on Monday, January 14, 2008. At the close of the tender offer period approximately 40.8 million shares of PhotoWorks common stock (including approximately 10 million shares tendered under guaranteed delivery procedures) had been validly tendered and not withdrawn, representing about 97% of the outstanding shares of PhotoWorks common stock. All shares that were validly tendered and not withdrawn have been accepted for purchase.

American Greetings intends to acquire all of the remaining PhotoWorks common stock by means of a merger under Washington law at the same price per share paid in the tender offer. Upon completion of the merger, the surviving entity will become an indirect wholly owned subsidiary of American Greetings.

PhotoWorks Inc.,was once aleading mail-order photofinishing company Seattle Filmworks and has been dedicated to online digital photo sharing and photofinishing services since the mid-1990s. The company recently took that effort to a new level with its launch of Photo Communities, social networks that allow consumers to share images with others – beyond friends and family members, reported Digital Imaging Digest recently.