PALM BEACH, Fla.--Sept. 15, 2003-- Workflow Management, Inc., today reported results for the three months ended July 31, 2003. The Company reported a GAAP net loss for its first quarter ended July 31, 2003 of $562,000 or $0.04 per diluted share, down from a GAAP net loss of $2.4 million or $0.18 per diluted share in the comparable period a year ago. The net loss during the first quarter consisted of $697,000 income from continuing operations, or $0.05 per diluted share, and a $1.3 million loss from discontinued operations, or $0.09 per diluted share. Revenues for the three months ended July 31, 2003 decreased 4.8% to $142.9 million versus $150.1 million in the prior year. Operating income was $5.8 million, or 4.1% of revenues, in the first quarter versus operating income of $6.4 million, or 4.3% of revenues, last year. Adjusted EBITDA was $6.9 million before certain items discussed below compared to Adjusted EBITDA of $9.1 million in the comparable period a year ago. Income from continuing operations for the three months ended July 31, 2003, excluding the after-tax impact of the items listed below and the tax impact of pledging Canadian assets against U.S. debt, was $254,000 or $0.02 per diluted share versus income from continuing operations of $1.5 million or $0.12 per diluted share a year ago on a comparable basis. "While our markets continue to be challenged with lower unit demand, pricing pressures and customers re-evaluating their printing programs, we are already experiencing signs of recovery in most of our businesses," stated Gary W. Ampulski, President and Chief Executive Officer. "Given the distractions from the earn-out deferrals, the negotiation of our new credit facility amendment and other economic factors that influenced our first quarter performance, we are very excited to refocus our efforts on improving the business going forward." During the three months ended July 31, 2003, Workflow recorded certain gains totaling approximately $1.2 million. The pre-tax effected items recorded in the results from continuing operations included: (i) $1.0 million in restructuring costs, (ii) $2.2 million reversal of accrued severance and other employment costs and (iii) a $18,000 loss from an interest rate hedge. During the three months ended July 31, 2002, Workflow recorded certain costs totaling approximately $6.3 million. The pre-tax effected items recorded in the results from continuing operations included: (i) $221,000 million in restructuring costs, (ii) a $4.3 million loss from an interest rate hedge and (iii) $1.7 million in fees for an unexecuted debt offering. This discussion of Workflow's financial results includes a number of non-GAAP financial measures. Specifically, Adjusted EBITDA and income from continuing operations excluding the after tax impact of restructuring costs and certain other charges are all non-GAAP financial measures. For all non-GAAP financial measures, the Company has presented in the summary financial information included with this press release the most directly comparable GAAP financial measures and has reconciled the non-GAAP financial measures with these most directly comparable GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to assist in understanding the ongoing, underlying operational performance of the Company. Specifically, the Company believes that these non-GAAP financial measures allow those interested to more easily assess quarter-to-quarter and year-to-year comparisons of the Company's financial performance. In addition, the lenders under the Company's credit facility have requested and utilize certain of these non-GAAP financial measures in their analysis of the Company's ongoing business performance.