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Ennis Acquires Assets of Block Graphics, Inc.

Thursday, June 08, 2006

Press release from the issuing company

MIDLOTHIAN, Texas--June 7, 2006-- Ennis, Inc. a manufacturer of printed business products & apparel headquartered in Midlothian, Texas has entered into a Letter of Intent ("LOI") to acquire substantially all of the assets of Block Graphics, Inc. ("Block"). Block is currently owned by an ESOP formed ten years ago to acquire the stock from Bill Block, the original owner. The acquisition, when completed, will include the use of the trade name Block Graphics. Ennis expects that many of the Block employees will become part of the Ennis family and continue to provide the same service they have brought to the market for more than 25 years. This is a vital part of the Block business model and will ensure the continuity so vital for the future. This move continues the Ennis strategy of growth through related manufactured products to further service our existing customer base. The acquisition will add additional short-run print products (snaps, continuous forms and cut-sheet forms) as well as the production of envelopes, a new product for Ennis. These products will be sold through the indirect sales (distributorship) marketplace. The transaction is expected to be accretive to Ennis' earnings in the first full year of operations, excluding the impact of transaction related charges. Block had sales of $35 million for the past year ended December 31, 2005. 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 into Ennis. This acquisition was attractive due to its location, product mix and its fine reputation in the marketplace. The transaction will add to the growth in the forms business that has placed Ennis among the top players in the forms and printed products arena and continue to serve our 40,000 independent distributors and printers who comprise the largest share of the forms marketplace. We expect to maintain much of the culture and elements of the original business model that Bill Block and his management team created and which has served independent distributors on the West coast and Pacific Northwest for years. We are very mindful of the unique nature it has in the marketplace. It is great news for our shareholders, our customers and our employees."




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