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Printing Franchises Turning to Presstek for Color Printing

Tuesday, November 14, 2006

Press release from the issuing company

Nov. 13 -- Presstek reports that it is achieving success in penetrating the print franchise market. Like all commercial printers, the franchises are challenged to meet the market demand for quality color printing, produced quickly in the desired quantity at a competitive price. Presstek's DI press and chemistry-free CTP solutions are designed to meet this demand. There are more than 2,700 print franchise locations in North America. According to a study conducted by research firm InfoTrends entitled The Cost of Print, almost 70% percent of the color print jobs ordered in 2005 were for quantities of 10,000 prints or less. As a result of this market shift, printing franchises are looking for ways to improve their productivity to be able to address this short-run color market profitably. "There is no question that short-run four-color is a growth market for us. We had been producing four-color work for about four years on a conventional offset press and finding it increasingly difficult to produce this work profitably as both run lengths and turnaround times continued to decline," says Mark Ell, Chief Financial Officer and Owner for the Business Cards Tomorrow (BCT) franchise operating in Arizona, Colorado & New Mexico. "We knew we needed to modify our production process, and we have found that the DI press is a better fit than conventional offset. In addition to improving turnaround time, we saw an opportunity for significant savings in labor and materials due to a faster makeready time, and the quality we saw from the DI press was outstanding." Noted industry expert Dr. Joseph Webb, in his September 12, 2006 paper entitled Major Trends and Rethinking the Nature of the Print Business concurs: "The current cost structure of the printing industry is a function of its capital equipment base. With many presses purchased in the late 1990's, there is a mismatch of the installed base of equipment's optimal use and the nature of print demand." Webb adds, "Presstek has a unique opportunity and position in the reshaping of the printing industry's workflow and production methods." The Sir Speedy in Naperville, IL seized the opportunity to reposition the company after installing the Presstek DI press. Julie Phillips, franchise owner, says, "Many people still think of Sir Speedy in terms of the old instant print model, and we are so much more than that today. The DI has made it very easy for Sir Speedy to switch customers from two-color to four-color so that they can take advantage of more impactful printing with little or no incremental cost. Our customers are excited about the opportunities the DI opens and are anxious to try it on their next job. That has resulted in an immediate business boost." Don Lowe, CEO of Franchise Services, the parent company of Sir Speedy, says, "Combining the Presstek DI press with the online capabilities provided by Sir Speedy's web-to-print solution, and the finishing and mailing infrastructure they already had in place, Sir Speedy franchises such as the Naperville IL location are well positioned for good growth over the next several years." Presstek's chemistry-free CTP solutions are also delivering results for franchise businesses. Tony and Ruby Cordova, owners of a Kwik Kopy franchise in Scottsdale, Arizona, assessed their options for updating their platemaking process through extensive research, including discussions with peers. The Cordovas decided to purchase a Presstek Vector TX52 with Freedom chemistry-free plates to replace their three platemaking systems. "The Vector TX52 was the only system we found that had the cost benefit of being chemistry-free and still allowed us to grow in the future." According to Cordova, the Vector TX52 has improved press operator productivity by 40% and improved prepress productivity by 15%. "Presstek products are designed to meet the current market demands for profitable and productive fast turnaround of shorter run color work," says Ed Marino, Presstek's president and CEO. "It is gratifying to see the level of success that our franchise customers are realizing by implementing our printing business solutions."




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