Contents:

1. Market Definition Report Coverage MARKET SECTORS Everyday Cards Christmas and New Year Cards Spring Season Cards MARKET TRENDS Wholesale and Direct to Retail Family Structures Sending Occasions The Bridal Market Growth of the Ethnic Minority Population Alternative Means of Communication Economic Trends Gross Domestic Product Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005 Inflation Table 2: UK Rate of Inflation (%), 2001-2005 Household Disposable Income Table 3: UK Household Disposable Income Per Capita (£), 2001-2005 Population Table 4: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005 Unemployment Table 5: Actual Number of Unemployed Persons in the UK (million), 2001-2005 MARKET POSITION The UK Table 6: Household Expenditure on Newspapers, Books and Stationery at Current Prices (£m), 2001-2005 Overseas 2. Market Size The Total Market Table 7: The Total UK Retail Market for Greetings Cards by Value at Current Prices (£m at rsp and %), 2001-2005 Figure 1: Sector Share of the Total UK Greetings Cards Market by Value (%), 2005 MARKET SECTORS Birthday and Other Everyday Cards Table 8: The UK Everyday Cards Sector by Value at Current Prices (£m at rsp), 2004 and 2005 Christmas and New Year Cards Table 9: The UK Christmas and New Year Cards Sector by Value at Current Prices (£m at rsp), 2004 and 2005 Spring Cards Table 10: The UK Spring Cards Sector by Value at Current Prices (£m at rsp), 2004 and 2005 Overseas Trade Table 11: UK Balance of Trade in Greetings Cards and Illustrated Postcards (£m) 2001-2005 EU Trade Table 12: UK Imports and Exports of Greetings Cards and Illustrated Postcards Within the EU by Country by Value (£000), 2005 EU Imports EU Exports Non-EU Trade Table 13: UK Imports and Exports of Greetings Cards and Illustrated Postcards Outside the EU by Region by Value, 2005 Non-EU Imports Table 14: UK Imports and Exports of Greetings Cards and Illustrated Postcards Within Asia and Oceania by Value (£000), 2005 Non-EU Exports Leading Export Publishers Table 15: Percentage of Sales of Leading Publishers Derived from Exports (%), 2004/2005 3. Industry Background Recent History number of companies Table 16: Number of UK VAT-Based Enterprises Engaged in Publishing by Type by Turnover Sizeband (number and %), 2005 Employment Table 17: Number of UK VAT-Based Local Units Engaged in Publishing by Type by Employment Sizeband (number and %), 2005 Regional Variations in the Marketplace Distribution From the Publisher Wholesale or Direct to Retail Own-Label Card Buying Groups Franchises Brokerage Direct to the Consumer From the Retailer Specialist Greetings Cards Retailers Multiple Retailers Supermarket Chains Confectioners, Tobacconists and Newsagents Post Office Charity Shops Others HOW ROBUST IS THE MARKET? LEGISLATION The Commercial Agents (Council Directive) Regulations 1993 Green Claims Code 1998 Printers' Imprint Act 1961 key TRADE ASSOCIATIONS Confederation of Paper Industries The Giftware Association The Greeting Card Association 4. Competitor Analysis Market Leaders Table 18: Top Ten Companies Involved in Greetings Cards by Turnover (£m and %), 2004/2005 Table 19: Top Ten Companies Involved in Greetings Cards by Pre-Tax Profit Margin (%) 2004/2005 Publishers Hallmark Cards PLC Company Structure Current and Future Developments Financial Results International Greetings PLC Company Structure Current and Future Developments Financial Results The Paper House Group PLC Company Structure Current and Future Developments Financial Results UK Greetings Ltd Company Structure Current and Future Developments Financial Results Retailers Clinton Cards PLC Company Structure Current and Future Developments Financial Results Greeting Card Group Ltd Company Structure Current and Future Developments Financial Results Outside Suppliers Paper and Board Suppliers Printers Specialist Greetings Cards Envelope Manufacturers Display Equipment and Shopfitting Administrative Services MARKETING ACTIVITY Main Media Advertising Expenditure Table 20: Main Media Advertising Expenditure on Greetings Cards (£000), Year Ending 31st March 2006 Recent Promotions Hallmark Cards The Royal Mail Simon Elvin Promotion Exhibitions UK Exhibitions Spring and Autumn Fairs Summer Fair London Harrogate Home & Gift Top Drawer 1ST! FAIR Harrogate International Exhibitions National Stationery Show Paperworld 5. Brand Strategy Introduction Types of Cards Traditional Contemporary Humorous Cute/Whimsical Juvenile Photographic/Fine Art Licensed Current Events Multi-Cultural/Religious Cards for the Male Market Same-Sex Cards Selected New Ranges from Publishers Awards Greeting Card Retail Awards The Henries Table 21: Winners of the Henries Awards, 2005 6. Strengths, Weaknesses, Opportunities and Threats STRENGTHS WEAKNESSES OPPORTUNITIES THREATS 7. Buying Behaviour HOUSEHOLD EXPENDITURE By Gross Income Decile Group Table 22: Average Weekly Household Expenditure on Diaries, Address Books, Cards, etc. by Gross Income Decile Group (£), 2005 By Age of Head of Household Table 23: Average Weekly Household Expenditure on Diaries, Address Books, Cards, etc. by Age of Head of Household (£), 2005 CONSUMER penetration Traditional Cards By Age and Sex Table 24: Purchase of Greetings Cards by Age and Sex (%), 2006 By Social Grade Table 25: Purchase of Greetings Cards by Social Grade (%), 2006 By Geographical Region Table 26: Purchase of Greetings Cards by Type by Geographical Region (%), 2006 Electronic Greetings By Age and Sex Table 27: Use of Electronic and Text Greetings by Age and Sex (%), 2006 By Social Grade Table 28: Use of Electronic and Text Greetings by Social Grade (%), 2006 By Geographical Region Table 29: Use of Electronic and Text Greetings by Geographical Region (%), 2005 8. Current Issues CLOSURES, MERGERS AND ACQUISITIONS Beaumonde Card Crazy Card Store Kardonia Kingsley Cards Ltd Simon Elvin Wayzgoose Ltd BOARD AND SENIOR MANAGEMENT CHANGES Birthdays Clinton Cards Greeting Card Group Hallmark Cards International Greetings Paper House FACTORS AFFECTING THE GREETINGS CARDS INDUSTRY Pricing in Proportion Charity Cards Charity Shops The Royal Mail Faces Competition The Future of the Post Office Environmental Concerns 9. The Global Market The European Market The US Market The Louie Awards SELECTED GLOBAL COMPETITORS Albert Horn Söhne GmbH & Co American Greetings Corporation Busquets Hallmark Cards Inc Paramount Cards Inc 10. Forecasts introduction Gross Domestic Product Table 30: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010 Unemployment Table 31: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010 Population Table 32: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010 forecasts 2006 to 2010 Table 33: The Forecast Total UK Greetings Cards Market by Sector by Value (£m at rsp), 2006-2010 Market Growth Figure 2: The Forecast Total UK Greetings Cards Market by Value (£m at rsp), 2001-2010 Future Trends 11. Company Profiles Clinton Cards Plc Greeting Card Group Ltd Hallmark Cards Plc International Greetings Plc Uk Greetings Ltd 12. Company Financials 13. Consumer Confidence METHODOLOGY KEY FINDINGS THIS QUARTER THE WILLINGNESS TO BORROW Confidence Declines Again Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006 Signs That the Decline Could be Bottoming Out Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), May 2005, August 2005, November 2005, February 2006 and May 2006 THE WILLINGNESS TO SPEND FROM SAVINGS Sharp Decline in Spending from Savings Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006 Table D: The Proportion of Adults Without Any Savings (%), May 2005, August 2005, November 2005, February 2006 and May 2006 Borrowing Grows in Relative Importance Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), May 2005, August 2005, November 2005, February 2006 and May 2006 14. Further Sources Associations Publications Government Publications General Sources Other Bisnode Sources

Companies Mentioned

- Albert Horn Söhne GmbH & Co - American Greetings Corporation - Beaumonde - Busquets - Card Crazy - Card Store - Clinton Cards Plc - Greeting Card Group Ltd - Hallmark Cards Plc - International Greetings Plc - Kardonia - Kingsley Cards Ltd - Paramount Cards Inc - Simon Elvin - The Paper House Group PLC - UK Greetings Ltd - Wayzgoose Ltd