By Dona Quirke of Raine Consulting January 22, 2003 – Courier Corporation (Nasdaq: CRRC) announced results for the quarter ending December 28, 2002, the first quarter of the 2003 fiscal year. Courier reported income from continuing operations of $3.7 million, or $.70 per diluted share, for the first quarter of fiscal 2003, up 38% from last year's $2.7 million, or $.52 per diluted share. Sales from continuing operations were $48.8 million for the quarter, up 7% from first-quarter sales of $45.6 million in fiscal 2002. These results reflect improved performance in all three of the company's book manufacturing markets, continuing the recovery that began in the latter part of fiscal 2002. They do not include the results of a discontinued operation, Courier Custom Publishing, a provider of customized teaching materials that operated at a small loss prior to its sale by Courier in December 2002. The $1.5 million sale resulted in an after-tax gain of approximately $0.8 million or $.15 per diluted share. Including discontinued operations, net income for this year's first quarter was $.84 per diluted share versus $.50 per diluted share last year. Below is a summary from the Q&A session following the “reading of the financials”: 1. In December, Courier sold the Courier Custom publishing division for $1.5 million, resulting in proceeds of after tax gain $800,000 or .15 per diluted share. This division handled college textbooks and course studies. 2. The key measures of the higher than expected earnings performance is attributed to operations efficiency and increased revenue. The increase of gross margin is due to the benefit of higher prices and a reduction of distributor discounts. 3. Direct-to-consumers book sales were up 14% over last year. Retail chain distribution was down significantly due to shifts in the timing of orders between the quarters. Big chain retailers reported disappointing holiday sales. It is not expected that such large shortfalls will continue. 4. The book-manufacturing segment, Dover Publishing, reported increases in all three market segments: Religious materials - +17%; Educational materials +13%; and specialized trade books +7%. Key to the improvement of earnings is due to operational efficiencies as a result of new equipment. 5. Specialty Publishing has been successful with several new on-line initiatives that have directly increased sales activity and customer awareness. One offering is called Dover Samplers where visitors to the website can download a portion of a book for review. This has been very successful. They have also had great success with offering free e-cards that allow the customer to use Dover images. This has increased website activity significantly. 6. There will be a significant increase in the amount of new titles that will be offered. Many new releases will be available in CD format. 7. New markets include non-traditional distribution channels such as AC Moore; Michaels Craft Store, and Cracker Barrel restaurants. The focus of this distribution strategy is to target channel-specific interests. This distribution strategy is expected to provide a greater increase than the traditional big chain book retailers. 8. Overall their financial situation is very strong. The current retail struggles are short term and not expected to curtail long-term growth. 9. Anticipated earnings for 2003 are expected to be at $210 - $216 million indicating a growth of from 4 – 7 % over 2002.