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Workflow Management, Inc. Reports Credit Facility Waiver Granted

Press release from the issuing company

PALM BEACH, Fla.--Oct. 15, 2002--Workflow Management, Inc. a leading provider of print outsourcing solutions, announced today that the Company's lenders have extended the waiver relating to Workflow's covenant defaults under the Company's secured credit facility. The extended waiver will be in effect from October 15, 2002 through January 15, 2003. The waiver agreement, announced today between Workflow and its senior lending group, provides a detailed timetable for the Company, its management, and its Special Committee and advisors to complete the process of reviewing strategic and financial alternatives and implementing a strategic plan. Specifically, the waiver agreement stipulates that the advisors will make final recommendations to the Special Committee in mid-November with the Company finalizing a new business plan by November 30, 2002. Furthermore, the waiver agreement contains certain covenants, including revised leverage ratios and minimum EBITDA targets in line with the Company's current projections through January 15, 2003. In addition, the Company has agreed that it will not amend or renew the terms and conditions of its outstanding director and officer loans and that proceeds from the collection of those loans will be paid to permanently reduce bank indebtedness. Thomas D'Agostino, Sr., Chairman, President and CEO stated "We are pleased that the Company's lenders have extended the waiver until January 15, 2003 so that the Special Committee of the Company's Board of Directors, with the assistance of its financial advisors, and management, can complete the process of assessing long-term financial and strategic alternatives. The Company remains committed to solidifying its capital structure as part of this process." Mr. D'Agostino, Sr., continued, "While we have seen little change in the difficult business climate since our conference call last month, we are pleased that our revenues and client base remain stable and that operating profitability remains relatively strong. We believe that the Company has a number of attractive alternatives from which to choose during the next several months. We are looking forward to having two additional directors, with vast industry experience, involved in the decision making process."