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Invesprint Loses Largest Label Customer, New Presses to Mitigate Impact

Press release from the issuing company

November 21, 2002 -- Invesprint Corporation has been informed by its largest customer in the label business that following a competitive tendering process such customer has selected one preferred supplier for glue applied labels and one preferred supplier for pressure sensitive labels, neither of which will be Invesprint's Jonergin facility in Montreal or Jonergin Pacific facility in Napa, California. The preferred glue applied supplier is a related company of the customer. Jonergin Montreal and Jonergin Pacific will continue to print labels for this customer over the next few months during a transition phase and both Jonergin facilities will remain approved suppliers. Due to its advanced technical expertise in label printing and reputation for high quality results, Jonergin hopes to continue to perform work for this customer in the future as a backup supplier and for technically difficult print jobs. Revenues from this customer accounted for approximately 23% of total revenues in the fiscal year ended April 30, 2001 and 13% of total revenues in the fiscal year ended April 30, 2000. During the first six months of fiscal 2003, revenues from this customer accounted for 17% of Invesprint's total revenues. The amount of revenue expected from this customer for the remainder of fiscal 2003 and beyond is unknown at this point, but is expected to be substantially lower than inthe past two years. Both Jonergin Montreal and Jonergin Pacific are actively taking steps to mitigate the impact of this decision. Jonergin Montreal began running a new technologically advanced 18 inch Arpeco press in September 2002, increasing its pressure sensitive capacity by 50%. Jonergin Pacific expects to take delivery of a new 13 inch Sanjo press in December 2002 to complement its existing two 10 inch Sanjo presses. The increased capacity of the new 13 inch Sanjo press will make Jonergin Pacific more competitive in bidding on large scale jobs. Jonergin Pacific has also recently taken delivery of an HP Indigo digital printing press. With very fast set-up times, this efficient press is ideal for shorter run print jobs such as back labels, unusual sizes and labels for smaller wineries, allowing Jonergin Pacific to better serve its existing customer base and attract new customers. Invesprint is in the business of visual product identification. Through three divisions with five manufacturing facilities in North America, the Company manufactures prime labels and specialty packaging for many major corporations.