NORTH CHELMSFORD, Mass., Courier Corporation (Nasdaq: CRRC), a leading book manufacturer and specialized publisher, today announced record earnings for the third consecutive year. Net income for the fiscal year ending September 30, 2000 rose 27% to $10.6 million, or $3.15 per diluted share, from $8.4 million, or $2.52 per diluted share, for fiscal 1999. Revenue for fiscal 2000, which included 53 weeks of operating results, increased 15% to $188.3 million from $164.0 million for fiscal 1999, a 52-week period. For the fourth quarter ending September 30, 2000, the Company achieved its 16th consecutive quarter of growth, with net income increasing 10% to $3.6 million, or $1.06 per diluted share, versus $3.3 million, or $.98 per diluted share, for the 1999 period. Revenue for the 14-week period, seasonally the Company's busiest quarter, rose 18% to $51.5 million, from $43.5 million for last year's 13-week period. "Courier delivered another year of record growth to both the top and bottom line, bringing our five-year compound annual growth rate to 9.3% for revenue and 15.3% for net income," said James F. Conway, III, chairman and chief executive officer. He also noted that Forbes Magazine recognized Courier in the October 30th issue as one of "The Best 200 Small Companies in America" and in its profile of the Company rated it as one of 11 companies to watch. Printing Industries of America also recently recognized Courier as a "Best Workplace in America." One of the most significant events of the year was the September 22nd acquisition of Dover Publications, Inc., a specialty publisher, for $39 million. Founded in 1941, Dover is one of the nation's most successful and consistently profitable publishers with calendar year 1999 revenues of approximately $32 million. "The Internet is driving demand for specialized publishing, and Dover, with more than 7,000 titles, represents a stunning business opportunity for Courier," Conway said. "Dover has amassed a base of over 500,000 customers without yet tapping the power of the Internet. Courier will apply skills it has developed in e-commerce, electronic direct marketing and on-line customer service to Dover's business to increase sales across all channels. The Internet also offers market advantages to companies that own content, have direct relationships with end users, and manufacture the product, thereby adding value at every step in the process. The combination of Courier and Dover accomplishes just such an end-to-end solution." Dover comprises the Company's new specialty publishing segment and separate segment results will be reported beginning the first quarter of fiscal 2001. The acquisition is expected to have a minimal effect on Courier's net income for fiscal 2001 due to interest expense on acquisition debt, amortization of goodwill of approximately $0.8 million and a required purchase accounting inventory write up which will increase cost of sales when this inventory is sold. Dover is expected to be accretive to earnings thereafter and to generate substantial cash from operations from the outset. Sales for Courier's book manufacturing segment increased nearly 19% to $49.6 million from $41.8 million for the fourth quarter of fiscal 1999. Fourth-quarter net income for the segment was up 24% to $4.2 million, or $1.24 per diluted share, compared with $3.4 million, or $1.03 per diluted share, for the same period last year. For the full year, Courier's book manufacturing segment posted revenue of $185.0 million, and net income of $12.7 million, or $3.77 per diluted share. This compares with fiscal 1999 segment sales of $161.2 million, and net income of $10.1 million, or $3.04 per fully diluted share. Conway attributed Courier's strong performance for the year to its focus on three high growth markets - education, religion and specialized publishing. Courier invested approximately $16 million in capital equipment during fiscal 2000 to accommodate increased demand in each of these markets. The Company said it expects to see continued high volume for its book manufacturing segment in fiscal 2001 and plans to invest an additional $15 million in capital equipment to further expand capacity, to improve responsiveness and to increase employee productivity through automation. "Our ability to anticipate and respond quickly to add capacity in this demanding marketplace positions us well to achieve continued growth," Conway added. Fourth-quarter sales for Courier's educational e-commerce businesses rose 13% to $1.8 million from $1.6 million for the same period last year. The segment posted a fourth-quarter loss of $678,000, or $.20 per diluted share, compared with a loss of $154,000, or $.05 per diluted share, for the final quarter of fiscal 1999. Results for the current quarter included a pre-tax charge of $350,000, equal to $.07 per diluted share, for the planned sale or closure of The Home School's retail store. For fiscal 2000, Courier's customized education segment posted a loss of $2.2 million, or $.64 per diluted share, on revenue of $3.4 million. For fiscal 1999, the segment had a loss of $1.7 million, or $.52 per diluted share, with sales of $2.8 million. "We were disappointed with the financial performance of this segment and plan to take definitive steps to improve results, including the sale or closure of The Home School's retail store," Conway said. "Nonetheless, the two ventures within this division have contributed strategically to Courier and provided us with knowledge and skill sets - particularly in the area of e- commerce and electronic direct marketing - that we can use to greatly enhance Dover's value." Building off three consecutive best-ever years, Courier management is optimistic about the outlook for the coming year. Priorities for 2001 include the continued growth of book manufacturing operations and the smooth integration of Dover, including upgrading its technology base and expanding sales through e-commerce initiatives. "These goals are ambitious, but the foundation is already in place and they are well within our reach. Coupled with the favorable industry climate and growing demand in our key markets, we are extremely optimistic about Courier's prospects for the coming year," Conway said. Courier Corporation is focused on streamlining and enhancing the process by which printed books and digital content reach end-user markets. Headquartered in North Chelmsford, Mass., Courier has three lines of business: full-service book manufacturing, customized education and specialized publishing. For more information, visit www.courier.com.