CINCINNATI, July 21 -- Multi-Color Corporation today announced financial results for the first quarter ended June 30, 2006, compared with the same period a year ago. First quarter highlights included: - Net Sales increased 11% to $51.7 million from $46.7 million. - Net Income increased 30% to $2.5 million from $1.9 million. - Earnings Per Share (EPS) were up 28% to 37 cents per diluted share, from 29 cents. - The Company incurred $192,000 ($118,000 after-tax) in non-cash stock compensation expenses resulting from the adoption of SFAS No. 123R, "Accounting for Stock Based Compensation." This impacted EPS by 2 cents compared to the prior year. Frank Gerace, President and CEO of Multi-Color Corporation, attributed the Company's first quarter earnings performance to increased sales in the Decoration Solutions segment and favorable service mix in the Packaging Services segment. "Our Decorating Solutions segment generated a 7% organic sales growth rate as we gained new customers and increased sales with existing customers. The Packaging Services segment generated a 55% organic sales growth rate from core customers due primarily to strong demand of promotional items from national retailers during the quarter," Gerace noted. Net income of $2.5 million increased 30% compared to the prior year. The improvements in net income compared to the prior year primarily resulted from the sales increase and favorable service mix. In addition, net income was favorably impacted by lower state taxes. These improvements were offset by the impact of the adoption of SFAS No. 123R as described above. "We are very pleased with our quarterly results as both segments performed well compared to last year's first quarter. Our value proposition continues to provide us with many new opportunities in the market place," Gerace concluded.