GROTON, Mass.-Oct. 18, 2000--New England Business Service, Inc. (NYSE: NEB) today announced results for the first quarter ended September 23, 2000. Revenues grew 16% to a record $131.2 million from the prior year's $113.4 million. The revenue performance in the quarter reflected a significant contribution from the Company's acquisition of PremiumWear, Inc. in July. Net income of $2.8 million, or $.21 per share, includes a previously announced $3.1 million, one-time after tax charge. Excluding the impact of this non-recurring charge, diluted earnings per share were $.44, equal to last year's level on a comparable basis. First quarter results for fiscal 2001 include approximately $.14 per share of acquisition-related amortization expense versus $.12 per share last year. Mr. Robert J. Murray, Chairman and CEO, commented, "We are pleased to report that the Company met its financial objectives for the first quarter. Solid revenue momentum was evident across most of the Company, with particularly strong results realized in the Direct Sales segment and the Clothing segment, which represents the PremiumWear business. At the same time, we continued to manage the transition from our traditional forms products to higher growth, more seasonally-oriented product lines such as personalized apparel, ad specialties, and greeting cards. The Company achieved an underlying revenue growth rate in the first quarter of approximately 5%. While earnings per share equaled last year's, results this quarter include marketing investments in the payroll processing initiative, as well as the financing cost related to our equity investment in our payroll partner, Advantage Business Holdings, Inc. We see payroll services as an important opportunity for growth, and early market response has been quite encouraging." Murray added, "We continued to make important progress across several strategic fronts. As noted, this quarter we launched our payroll initiative through McBee. The acquisition of PremiumWear, completed in July, will support the order fulfillment of our rapidly growing Company Colors line of personalized apparel, and provides significant sales and earnings growth opportunities in its own right. PremiumWear grew a robust 35% over last year's first quarter in its existing channels, and is continuing to experience very strong demand. Finally, the restructuring announced in July will provide important marketing opportunities not available to the direct marketing and direct selling segments separately. Our McBee organization, which has an exceptional ability to establish relationships with new customers, now will be supported and complemented by the cost-effective relationship-building capabilities of telesales, mail, and Internet direct marketing. We expect that, over time, this added contact will result in significantly higher annual sales per McBee customer." Murray continued, "We believe the Company is on track for the fiscal year to achieve revenue growth of about 20% and earnings per share growth, excluding one-time charges, of 10% or higher. We anticipate that the second quarter, now underway, will be seasonally very strong in all segments, and early indicators for our greeting card and personalized apparel lines, in particular, are already quite promising. We are encouraged by results so far this year, and believe that our direction is right and strategies are paying off." During the first quarter of fiscal year 2001 the Company repurchased 167,200 shares of its stock, bringing the total to approximately 1.3 million shares since March of 1999 against its current two million share authorization. The Company's Board of Directors declared a dividend of $.20 per share with a record date of November 3, 2000 and a payment date of November 17, 2000.