By Susan Kelly November 4, 2003 – Moore Wallace Inc. (TSX, NYSE: MWI) Mississauga, Ontario, and New York, NY, today held their conference call for their third quarter 2003. Moore Wallace reported financial results for its third quarter ended September 30, 2003. Third quarter sales totaled $828.9 million with net earnings of $26.0 million, or $0.16 per diluted share for the third quarter. Editor's Note: Prior to announcing third quarter results, on October 16 th Moore Wallace held a Customer Event in Chicago called BIOP (Beyond Ink on Paper) featuring Tom Peters as the keynote motivational speaker. With over 300 people in attendance, this event was clearly intended to educate and re-energize both the Moore and Wallace customers and sales personnel. In the words of the CEO, “We witnessed hands-on the depth and breadth of the company offering and a highly effective use of minimal marketing dollars.” Topics: * CEO Comments * Financial Summary * Q&A CEO Comments: Mr. Mark Angelson, Moore Wallace's Chief Executive Officer, said, "We are pleased to have delivered again another solid quarter, exceeding our earnings expectations and generating strong cash flow. This gives us continued confidence that our core strategy for the creation of shareholder value is working. This marks the first full quarter of combined operations since the May 15 closing of the merger with Wallace. The integration is on track and meeting our objectives. During the quarter, we consolidated additional facilities and effected additional personnel reductions in line with our original plan. We are capitalizing upon our size and scale, gaining greater operating efficiencies, and building our position as one of the industries lowest cost operators. We have achieved $50 million in benefits from our integration activities, specifically, cost containment, asset rationalization, productivity enhancements, vendor consolidation, and streamlined supply chain management. We have reduced net debt by $45 million even with the integration expenses and we will continue to deliver and do it regardless of the economy. We have only lost one meaningful account but have added 1500 new customers. We've closed 9 facilities bringing the number down to 19 in total and we're going after a second $50 million in savings. We have lots of room to grow given that we have less than 15% of our customer's total print expenditure; so we're going after the remaining 85%. Financial Summary: Mr. Mark Hiltwein, Moore Wallace's Chief Financial Officer, reported additional financial performance indicators: * Outsourcing continued to experience strong growth 20% to $80.7 million and Commercial Print at $308 million was flat. * Restructuring was a $10.6 million charge for severance. * Operating margins have increased from 7.8% to 9.2 % from last quarter. * Net Cash was $50.7 million for third quarter and $26 million used for working capital for the quarter. * Net debt has decreased from $918.2 million to $872 million. * Capital expenditures for the quarter were $12.8 million and set the ceiling at 3% of sales. Guidance: •  Guidance for earnings per share is at $0.30 for fourth quarter 2003 and $0.93 per share for the full year 2003. Q&A 1. Analysts continue to recognize the pricing pressures in commercial printing and wanted to understand better the revenue trends. Mr. Angelson, CEO, restated earlier comments that Moore Wallace has acquired more than 1,000 new customers for the commercial platform. Mr. Hiltwein, CFO, stated throughout his long career in commercial print, he has never budgeted for a price increase in these markets – ever. But he does believe certain products, like direct mail, will drive strong revenue and profit growth. 2. Repeated questions were about the capital expenditures for the fourth quarter 2003. Moore Wallace executives would not comment to specifics and restated, on more than one occasion, that they will follow a baseline of 3% of revenues. 3. The CEO feels good about the sales force and that they have some great leaders that have stepped up to the plate. Their sales turnover is running at normal percentages. The reason why Moore Wallace is gaining financial success while others have not, is because of efficiency and capacity utilization, vision and leadership, and commitment to doing it right and just “old fashioned hard work”. The CEO would not comment on the activities of the competitors. 4. Operating margins within the segments will be available next week in further filings. To date they have taken 54 presses off line and moved 72 presses. 5. Moore Wallace does not want to have a false start despite the latest GDP report for third quarter at 7.2%. Moore Wallace is encouraged by the level of activity in the past few weeks and the anecdotal evidence from sales but is not counting on a full recovery as yet. They will continue to cross-sell and develop existing business, invest in outsourcing, personalization, and possibly some acquisitions. 6. The best use of accretive cash flow is acquisitions and if they don't find willing and meaningful acquisitions, they will buy back stock. Acquisition targets could include exposure in the areas of mortgage statements and public utilities. However the CEO believes their main source of growth will be organic; within existing customers (e.g. going after Charles Schwab's print centers). Much of their business is transactional. The Outsourcing segment has a 6 months sales cycle however the payoff is a locked-in and long-term contract. Right now they prefer to stay quiet about their customer acquisitions. 7. The CEO made it clear that benchmarking this quarter's financial performance as a 3% decrease is not correct and it is not a matter of combining the two companies' (i.e. Moore and Wallace) income statements. The CEO stated three reasons for this. First, there is continued softness in the Forms business. Secondly, they have exited from unprofitable accounts. And third, there has been a realignment of sales force which creates revenue leakage.