MIDLOTHIAN, Texas--Jan. 7, 2005-- Ennis, Inc. today reported operating results for its third quarter ended Nov. 30, 2004. On Nov. 1, 2004, the Company announced the acquisition of Royal Business Forms, Inc. (Royal), an Arlington, Texas based manufacturer of printed business forms. In a transaction valued at approximately $3.7 million, Ennis, Inc. acquired all of the capital stock of Royal in exchange for approximately 178,000 Ennis shares. Royal had approximately $12 million in sales for its fiscal year ended Sept. 30, 2004, its most recent fiscal year. Also on Nov. 19, 2004, the previously announced merger between the Company and Alstyle Apparel, Inc. was closed. These transactions, along with the acquisition of Crabar/GBF, Inc. as of June 29, 2004, represents a significant change in the size and nature of Ennis' business. Due to the timing of the Royal and Alstyle transactions, their impact on the quarter and nine months ended Nov. 30, 2004, is relatively insignificant to the overall operating results. The inclusion of the results of operations of Crabar/GBF, Inc. does have a significant impact on the third quarter and nine month results of operations. For the third quarter ended Nov. 30, 2004, net sales amounted to $91,750,000 compared to $66,398,000 for the same period last year, an increase of 38.2%. Net earnings for the quarter amounted to $6,104,000 or $.35 per diluted share, compared to $4,475,000, or $.27 per diluted share for the corresponding period last year, an increase of $29.6%. Per share earnings computations were based on 17,326,580 shares for the quarter compared to 16,622,244 diluted shares for the corresponding period last year. For the nine months ended Nov. 30, 2004, net sales amounted to $230,860,000 compared to $196,275,000 for the same period last year, an increase of 17.6%. Net earnings for the nine months amounted to $16,056,000 or $.95 per diluted share, compared to $13,076,000 or $.79 per diluted share for the corresponding period last year, an increase of 20.3%. Per share earnings computations were based on 16,924,120 diluted shares for the nine months compared to 16,577,927 shares for the corresponding period last year.