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Allegra Leads Consolidation Trend: Completes Insty-Prints Acquisition

Press release from the issuing company

Troy, Michigan, February 4, 2002 – The company that invented the fast-turnaround printing industry, Insty-Prints, and the company taking the lead in reinventing the industry, Allegra Network LLC, have joined forces to bring the best of both businesses to purchasers of print and graphic communications. Allegra Network LLC (formerly American Speedy Printing Centers, Inc.), one of the world’s foremost print and imaging franchises, acquired the assets and franchise agreements of Insty-Prints, Inc., through its parent Allegra Holdings LLC. The transaction occurred immediately following the approval of the IPI, Inc. shareholders at a meeting last Thursday. Now with more than 500 locations in North America, Japan and Poland, and systemwide sales of more than $300 million, Allegra is known for its advanced printing technologies and highly-trained consultative sales staff. The acquisition of Insty-Prints is projected to advance Allegra Network from the fourth largest printing franchise in the world to the third. The company ranks in the top 200 in sales among all franchise companies worldwide. President and CEO Bill McIntyre comments, "We are very excited about the future benefits that will come from combining our two organizations such as expanded geographic reach, greater vendor leverage and name recognition. Franchise members also will also benefit from increased resources including access to advanced printing technologies. Being a part of a larger organization provides great opportunity to thrive in an ever-changing industry, especially during a weakened economy." The acquisition of Insty-Prints by Allegra Network comes at a time of rapid consolidation in the printing industry. In 2000, there were nearly 32,000 commercial printers in the United States. By 2010, it is projected there will be only 23,500 (a 26 percent decrease), according to Trend Watch, a leading industry research and consulting firm. However, due to emerging market and technology forces moving the industry forward, such as full color digital and short-run on-demand printing, industry sales are projected to grow more than 40% by 2010. Steve Johnson, President and CEO of industry association PrintImage International expresses his thoughts on the two franchises combining forces, "This is a sign of the consolidation occurring within our rapidly changing industry. It is happening at the individual shop level and it only makes sense that it can and should also happen at the franchise level. Allegra Network is a very well managed organization with a strong base of print shops. This acquisition seems like a good fit for Allegra. I am sure it will go a long way in strengthening Allegra’s current franchises as well its new Insty-Prints franchises." This is the third acquisition Allegra has completed in the last seven years. In 1995, Allegra acquired Zippy Print, a Canadian franchise printing company with 37 locations and in 1998 the company acquired the franchise agreements of 24 Quik Print and Instant Copy centers from XYAN, Inc. Some of the Insty-Prints locations will retain their brand name while others will transition to the Allegra Print & Imaging name, the premier brand of the Allegra Network. Other brands in the Allegra Network are American Speedy Printing Centers, Speedy Printing Centers, Instant Copy, Quik Print and Zippy Print. All locations are owned by franchise members. Allegra Network will continue to support Insty-Prints franchise members from its Minneapolis-based corporate office. Allegra Network franchise members include former corporate executives, engineers, teachers, police officers, accountants and professional athletes. A number own multiple centers. Allegra Network was founded in 1976 with five centers in Michigan and is celebrating its 25th anniversary in franchising this year. The company is privately owned by an investor group, led by the company’s management including President and CEO William D. McIntyre, Steve White, Jay Rosen, Carl Gerhardt, Darryl Buchanan and Mark Crowley. Other principal shareholders include Michael Marcantonio and Domino’s Pizza founder and former CEO Thomas S. Monaghan.