Agile Equity: Transactions

Gibson Greetings Advances Internet Strategy through Investment in Honkworm International

CINCINNATI, OH, September 22, 1999

Gibson Greetings, Inc. (NASDAQ: GIBG) today announced that it had made a strategic investment in Honkworm International of Seattle, WA, a leading developer of original entertainment content for the Internet. Honkworm creates webisodes including, Fishbar, The Siliconites, and Fatman for the Internet using its trademark photo surrealism technique manipulating photographs and actual art into animation. These serial programs have garnered a following among web users as well as the endorsement of traditional media companies like MTV.

Through its investment in Egreetings Network in 1997, Gibson has established a strong footprint on the Internet. As part of this investment, Gibson became the leading content provider for Egreetings Network, and Gibson's content accounts for a growing percentage of Egreetings distributions from this site, which now has more than 7 million members. The Honkworm relationship will provide Gibson with new online expertise to dramatically increase the volume of properties and content for the Web.

As part of the transaction, Gibson has purchased a minority interest in the company with a warrant to purchase an additional position to be exercised within 18 months. Gibson also agreed to purchase a significant volume of on-line properties and content developed by Honkworm over the next 18 months.

George White, who heads Gibson' s Internet content development efforts, will serve as a member of Honkworm's Board of Directors as part of the Gibson investment. "It is clear that content will drive the growth on the Internet in the next few years" said White. "This strategic investment in Honkworm will enable Gibson to gain access to entertainment properties and to develop capabilities for our own properties. This increased knowledge will give us a window to the Web that we have not had previously."

"Our modest investment in Egreetings two years ago, which initiated our Internet strategy, has proven to be timely" said Frank O. Connell, Gibson Chairman, President and Chief Executive Officer. "Today, Egreetings is one of the top 20 Websites, distributing hundreds of thousands of Egreetings every day. This success has convinced us that our future growth lies with harnessing the power of the Internet through effective use of our content development expertise."

"As a bricks and mortar company with established content distribution and a strong online audience, Gibson Greetings is coming in as an active partner in Honkworm," says Honkworm founder and CEO, Johan Liedgren. "Although Gibson and Honkworm developed as two very different companies, we share a view of how entertainment for the web will evolve. Together, we are well positioned to lead and define this new, fast growing category in the entertainment industry."

Gibson Greetings, Inc., an industry innovator in the greeting card business, is pursuing a strategy of marketing relationship-fostering products that provide strong entertainment value. Gibson distributes more than 24,000 individual relationship communication products (over 5,000 new products last year), including greeting cards, gift wrap, party goods, licensed products and Silly Slammers.