HAUPPAUGE, NY, April 16, 2001.  Disc Graphics, Inc. (“Disc Graphics” or the “Company”) (NASDAQ Small Cap Symbol: DSGR) today announced a redeployment of its manufacturing assets and a consolidation of its operations, and reported quarterly and year-end revenues and earnings for the fourth quarter and year ended December 31, 2000.  Commenting on the fourth quarter and year-end results, Donald Sinkin, Chairman and Chief Executive Officer, said: “The year 2000 was  challenging for Disc Graphics.   We completed a major expansion of our Hauppauge, New York facility and consolidated the Contemporary Color Graphics operations into the Hauppauge facility, but the weakening economy, the bankruptcy of one of our largest customers, and trends in the music and home entertainment industries posed particular challenges.  During the first quarter of 2001 we reevaluated our manufacturing capacity and fixed costs in the face of declining revenues, and decided to close our Indiana facility in light of the marginal incremental sales generated there ($1.8 million or less than 3% of total Company sales in 2000) and our ability to absorb the remaining work in both New York and California.  The importance of our physical presence in the Midwest diminished with quicker turnaround times resulting from our new digital capacity, and by redeploying high quality equipment from Indiana to California we will be able to continue to deliver quality, service and price to our customers, coast-to-coast.” Disc Graphics’s fourth quarter 2000 revenues decreased by 20.6% to $15,404,308 compared with revenues of $19,412,868 in the fourth quarter of 1999.  The fourth quarter net loss was ($2,532,110) or ($.46) per share based on 5,518,248 diluted shares compared to net income of $757,571 or $.14 per share based on diluted 5,527,311 shares in 1999.  The Company took a one-time after-tax charge of $2,248,000  in the fourth quarter of 2000 related to the revaluation of certain assets affected by its restructuring plan, including assets from the Indiana facility and other under utilized assets in New York and California, and the write-off of goodwill associated with the potential loss of local commercial printing business in Indiana.  Revenues for the year ended December 31, 2000 decreased 3.8% to $65,376,090 from $67,987,941 for the same period a year ago.  The net loss for the year was ($4,728,489) or ($.86) per share based on 5,518,269 diluted shares, compared to net income of $2,506,920 or $.45 per share on 5,540,265 diluted shares outstanding in 1999.  The 2000 net loss includes the one-time charge discussed above.  Mr. Sinkin continued: “2000 was also an invigorating year for the Company.  As part of the expansion of our New York facility, we installed new digital technologies, including high speed data transmission, digital proofing and computer-to-plate capabilities, we fully implemented ISO 9001 standard operating procedures with a goal of certification in 2001, we reconfigured our production and customer support teams to improve responsiveness and customer service, and added several highly competent managers.  We also worked hard on new sales initiatives in a softening economy, and forged a new relationship with a major studio to print their DVD work.  Looking toward the future, we are excited about our joint venture in a new miniflute packaging business.  We believe the redeployment and consolidation of the Company’s assets, together with other cost-saving measures taken over the last six months, reduces the Company’s overhead and places the Company in a better financial position.”