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AMSCAN INC. EXTENDS SUPPLY AGREEMENT WITH ERWIN DISTRIBUTING CO., INC.

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Elmsford, NY (March 1, 2007) - Amscan Holdings Inc., ("AHI") today reported that it's wholly owned subsidiary, Amscan Inc. ("Amscan"), has extended its Supply Agreement with Erwin Distributing Co., Inc. ("Erwin"), a party goods distributor and retailer that operates 29 Card & Party Factory Stores in Texas, for five more years. The Supply Agreement gives Erwin the right to receive favorable pricing and trade terms, subject to Erwin's achievement of specified levels of purchases and other factors. In exchange, the Supply Agreement obligates Erwin to purchase increased levels of merchandise from Amscan through 2012.

James Harrison, President of Amscan, commented, "This Supply Agreement with Erwin, which extends to 2012, solidifies our long standing supply relationship with one of the premier independent chains in our industry. It also affords us the opportunity to increase the depth and breadth of product in Erwin's stores."

AHI also announced that in a separate transaction its retail subsidiary, Party City Corporation has also entered into an agreement with Erwin to purchase their Arlington, Texas location for the purposes of operating a retail party goods store under its Party City name.


Contact:
James M. Harrison
President
Amscan Holdings, Inc.
914-345-2020

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