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Mail-Well Announces Profitable Q1 Results in Line With Guidance

Press release from the issuing company

ENGLEWOOD, Colo., May 5 -- Mail-Well, Inc. announced its results for the quarter ended March 31, 2003. The net income of the Company was $3.1 million, or $0.06 per share, on sales of $427 million during the first quarter of 2003, compared to a net loss of $133.4 million, on sales of $443 million during the same period of 2002. These results reflect a $0.7 million charge for restructuring in the first quarter of 2003 together with an after tax gain on disposition of discontinued operations of $2.5 million. In the three months ended March 31, 2002, Mail-Well's net loss included a charge for restructuring of $14.5 million, a loss of $7.7 million on debt refinancing, together with an after tax loss on disposal of discontinued operations of $8.0 million and the cumulative effect of a change in accounting principle of $111.7 million upon adoption of SFAS 142. EBITDA for the quarter was $30.7 million, an improvement of 5.5% over the $29.2 million achieved by ongoing operations in the same period in 2002. An explanation of the Company's use of EBITDA for comparative purposes is provided below. Paul Reilly, Chairman, President and CEO, stated, "The 5.5% year-over-year increase in EBITDA for the first quarter 2003 falls at the high end of the guidance we gave at the end of 2002. This was accomplished on slightly higher sales if you exclude the sales of the operations that we have divested since the first quarter of 2002. These results reflect the impact of the many actions we have taken over the past year to improve our operations and reduce costs. The year-over-year increase in sales in the Print Segment has continued as expected. The operating results of the Print segment continued to improve while, in both the Envelope and Printed Office Products segments, operating margins remain the best in the industry. We fully expect that Q2 of 2003 will show significant improvement over the same period in 2002 and we are comfortable with the previous EBITDA guidance range of $130 to $140 million for the full year, given the present economic environment." Reilly also stated, "The relative positions of our businesses in each of their chosen printing industry segments, together with the wide breadth of the services Mail-Well can offer to its customers, is allowing the company to grow sales both in absolute and relative terms even in trying economic times. Our renewed customer focus and our mobilization efforts within all of our units are expected to allow us to continue these trends."