DMIA's Award-Winning E-Mail Newsletter for Members Only
July 2, 2004

NEWS

Ennis to Buy Crabar/GBF, Merge with Apparel Firm
DeSoto, Texas-based manufacturer <http://www.ennis.com> Ennis Inc. will buy 100 percent of the stock of <http://www.crabargbf.com> Crabar/GBF, a manufacturer based in Dayton, Ohio. Also, Ennis will merge with <http://www.murina.com> Alstyle Apparel, a privately held manufacturer of T-shirts and fleece goods based in Anaheim, Calif. Ennis now has more than $525 million in annual revenues and approximately 7,000 employees in North America, according to company officials. In the Print Solutions Top 100 Manufacturers issue published in April, Ennis was No. 1 in fiscal 2003 sales ($240.8 million), and Crabar/GBF held the No. 6 spot ($76.4 million).

Ennis will acquire Crabar/GBF from Centrum Equities Inc., a privately held investment firm headquartered in Chicago, for $18 million in cash less debt assumed. The deal, approved unanimously by the boards of directors of both companies, is expected to contribute to Ennis' earnings in the first full year of operations. Ennis officials say the acquisition will enhance the firm's "revenue opportunities," deepen its geographic penetration and expand its product capabilities. Crabar/GBF has facilities in Cerritos, Calif.; Bellville, Texas; Princeton, Ill.; Medfield, Mass.; Edison, N.J.; El Dorado, Mo.; and Leipsic, Ohio.

In a press release, Keith Walters, chairman, president and CEO of Ennis, said, "Today's announcement is another positive step forward in the continued growth and consolidation of the forms business for Ennis. It is great news for our customers, our employees and our shareholders." Walters is a DMIA Board member.

Last month, Crabar/GBF announced the sale of its direct mail product line and its Skokie, Ill., facility to USA Direct Inc., a direct mail production company in York, Pa. Business forms equipment from Skokie was relocated to other plants. Crabar/GBF was formed in January 2003 when Crabar/Witt LLC merged with GBF Graphics Inc., Arrow Business Forms and Graphics Inc., and Gen Forms & Labels. Crabar/Witt had been created in mid-2002 when Centrum Equities purchased Crabar Business Systems and Witt Printing Company.

Under the terms of the Alstyle transaction, the apparel firm's shareholders will receive Ennis shares based upon a $242 million valuation less debt outstanding (assumed to be between $104 million and $108 million) the day of the merger. Upon completion of the transaction, Ennis shareholders will own 16.6 million shares, and Alstyle shareholders will own 8.9 million shares. The boards of directors of both companies unanimously approved the agreement, which is expected to be accretive to Ennis' earnings in the first full year of operations.

"Ennis plans to expand into the apparel side of promotional products and solutions beyond merely T-shirts and fleece goods by accessing the Pacific Rim and reselling through the existing sales channel of Alstyle," said Roger Brown, president of Alstyle Apparel. He will fill the first available director position of Ennis after the Alstyle transaction closes in the fall, officials say. Brown, a partner in Centrum Equities, was named president of Crabar/Witt in 2002.

<http://www.standardregister.com> Standard Register Cuts 4 Executive Positions
Standard Register announced the departure of four officers this week. Peter Dorsman has resigned his position as chief operating officer, and that position has been eliminated. Dennis Rediker, president and chief executive officer has assumed direct operating responsibility for the company. Additionally, the following positions have been eliminated and the incumbents have left the company: president, Document and Label Solutions, president Fulfillment Services and vice president Corporate Communications. "The company has improved the trend in revenue during recent quarters, but the pace of overall operational improvement has not been satisfactory," said Rediker. "A flatter, more efficient management structure will help our execution as we focus on delivering the products and services valued by our customers."

<http://www.reyrey.com> Reynolds & Reynolds Shares Plunge
Reynolds & Reynolds Co. stock has dipped more than 20 percent  in the last 10 days following the company's warning that sluggish sales of its software for auto dealers is hurting profitability. Reynolds shares lost approximately $7, reaching a low of $22.93 (at press time) with more than 5 million shares changing hands. The Dayton, Ohio-based company forecast third-quarter earnings of 31 cents to 34 cents a share on revenue of $241 million to $244 million. Previously, Reynolds said it expected to make 39 cents a share. For the fourth quarter, the company expects to earn 30 cents to 34 cents a share vs. its previous projection of 49 cents a share. For 2004, the profit target is now in a range of $1.33 to $1.40, down from the earlier range of $1.60 to $1.66.

House Committee Passes Junk Fax Act
The House Energy and Commerce Committee passed H.R. 4600, the Junk Fax Prevention Act of 2004, legislation aiming to restore the "established business relationship" (EBR) provision governing facsimile communications, which was repealed by the Federal Communications Commission (FCC) in its recent rulemaking. The bill likely will go to the House floor for a vote after the July 4th Congressional recess. H.R. 4600 reestablishes the EBR, which allows for communications among parties where a previous business relationship exists. It also requires a mandatory "opt-out" for unsolicited faxes. The legislation allows the FCC to make the decision to waive the opt-out provision for tax-exempt organizations faxing members on issues related to their exempt purpose.

Industry Announces All-Time High Paper Recovery
The American Forest & Paper Association (AF&PA) announced that more than half (50.3 percent) of the paper consumed in the United States during 2003, or 49.3 million tons, was recovered for recycling--a significant milestone in paper recycling history. This recovery represents an increase of 69 percent since 1990, when only 33.5 percent of the paper consumed in the United States was recycled. As domestic and export demand for U.S. recovered paper continues to grow, domestic supply will be squeezed by an anticipated 50 percent surge in U.S. exports of recovered paper. For more, visit <http://www.afandpa.org> www.afandpa.org and click on "2004 Recovered Paper Statistical Highlights."

<http://www.delta.com> Delta to Invest in Radio Tags for Luggage at Airports
By BARNABY J. FEDER
Delta Air Lines plans to use disposable radio tags to track all luggage it handles at domestic airports. <http://www.nytimes.com/2004/07/01/technology/01tags.html?th> Full story.

SOLUTION OF THE WEEK

Wine, Dine and Gain Customers
<http://www.brownprinting.com> Brown Printing Company, Fairfax, Va., wanted to show its appreciation to customers and leave a memorable impression with prospects. It decided to sponsor the Vintage Virginia Wine Festival in Millwood, Va., and invite 500 guests and their families. <http://www.dmia.org/sol_center/enewsletter/enews_articles/sow070204.html> Full story.

WHAT'S NEW AT DMIA

Print Solutions Conference and Expo 2004
Don't miss the Print Solutions 2004 Conference and Expo-Fall Classic, Oct. 5-7 in Chicago. <http://www.printsolutionsshow.com/registration.html> Online registration is open. Register now and make your room reservations before you leave on your summer vacation. <http://www.printsolutionsshow.com/sponsors.html> Our Winner's Circle Sponsors offer you a chance to win two trips for two to Hawaii! The Winner's Circle is a six-year-old partnership between an elite group of exhibitors and DMIA which has helped increase the visibility of the Print Solutions Conference and Expo as the premier event in the industry. This is the largest exposition for the business printing industry. Go to Chicago, see 400 booths featuring new products, services and programs that will make you money, visit each of the Winners Circle sponsor booths to validate your "Send Me to Hawaii" postcard (pick up your postcard free at registration), and start shopping for a swimsuit! The drawings for both trips to Hawaii, including airfare and hotel, will be held on the show floor Oct. 7. You must be present to win. For more information, visit <http://www.printsolutionsshow.com> www.printsolutionsshow.com.

TOP TEN

Here are the top unusual source requests received by DMIA:

 1. Direct Mail Piece:  A) Self Mailer: 11" x 17" folds to 8 1/2" x 11"; prints 4cp/4cp with bleeds; 80# Matte text; an 8 1/2" x 6 3/8" clear poly pocket glued on 3 sides on the front of the mailer will hold a Post Card and BRE  B) Post Card: 6" x 8" folds to 6" x 4"; full horiz. perf.; prints 4cp/4cp with bleeds; 7pt. Matte stock  C) BRE:  A6; prints blk/0 on 24# White Wove  D) Wafer Seal: 1" in diameter; prints 1/0 with bleeds; white stock E) Finishing: Personalized Post Card; affix Wafer Seal to top opening of poly pocket; mail; QTY=220M

 2. Binders; 1 1/2" ring capacity; 4cp entrapped sheets front, back, and spine; QTY=500-1M

 3. Envelopes; #10 Regular; scalloped edge flap; prints 1PMS; White Wove; QTY=1M-2.5M

 4. Ping Pong Balls; prints 4cp; QTY=2.5M

 5. Absentee Ballot Envelopes; 4 1/8" x 9 1/2"; prints 2 colors; white wove; black tint inside; 7/8" x 3 7/8"; perfs 1/2" from the right and 1/4" from the bottom; QTY=70M

 6. Tins to hold CD's; 1 color imprint; QTY=1.5M

 7. Gift Wrap Sheets; 20" x 30"; folds to 10" x 7 1/2"; prints 4cp/1; QTY=4MM

 8. Physician Medical Scale; standard beam type; QTY=1

 9. Flour Packaging Rolls; 14" x12"; prints 1PMS-4cp; coated and uncoated stock; QTY=3lots of 9MM, 1 lot of 27MM

 10. POP Display Wrap; 2' x 1'; prints 4cp, four tier shelf, yellow styrene material wraps around bottom of display; QTY=300

If you have a source request--for anything--call the Hotline at (800) 333-2828 between 9 a.m. and 5 p.m. Eastern Time, or use the <http://64.115.51.134/index.htm> Source Hotline Database online. For new sales ideas every day, try our <http://www.dmia.org/dmiasearch/am_pm/search/index.cfm> 1,000 Sales Ideas Database. Manufacturers, if you produce any of these items and would like to check your listing with the Source Hotline, please email <mailto:crush@dmia.org> Cheryl Rush.

SALES AND MARKETING TIP

Boost Sales Conversions
You've finally succeeded in attracting a crowd of surfers to your site. But as every online merchant knows, that's only the first step. The real task is converting those browsers into buyers. <http://ecommerce.internet.com/how/customers/article/0,3371,10363_3365551,00.html> Full story.

E-COMMERCE SPOTLIGHT

On-Demand Printing, On-Demand Profits
A unique manufacturing model pays off for CafePress and its legion of online sellers. <http://ecommerce.internet.com/news/insights/article/0,,10376_3373631,00.html> Full story.

PRODUCT OF THE WEEK

The Partnering Tool Kit
This book helps you evaluate and establish profitable business alliances and a customer service strategy. It includes questionnaires to survey customer needs and evaluate customer satisfaction, and training plans for your customer service employees. Code: PTKM. $20. To order, visit DMIA's <http://www.dmia.org/about/prod_cat_logon.html> online product catalog, or contact <mailto:tdavis@dmia.org> Tina Davis.

HOT SITES

<http://www.allmusic.com> AMG All Music Guide
This extensive database includes hundreds of thousands of album reviews, cover images and more, all subdivided and organized in 871 different styles of music under 14 broad categories such as rock, country, classical, jazz, etc. Better yet, all this information is easily searched, extensively linked to related data and crisply presented. If you're a fan of ANY musical style, visiting this site is a must before you make your next CD purchase. <http://www.allmusic.com> Visit the site.

<http://www.beerhistory.com/> All About Beer
You think history is a dry subject? Perhaps you're not reading the stuff that really hops. This page offers a heady brew of library resources, clips of vintage commercials, trivia, photos and other stout content, including George Washington's personal beer recipe. <http://www.beerhistory.com/> Visit the site.

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