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IWCO Direct Announces Details of Expansion Plan

Press release from the issuing company

Chanhassen, MN (June 22, 2004) - IWCO Direct, an integrated direct mail services company, announces details of its plan to increase lettershop capacity by 35 percent and add capabilities to reduce cycle time, while providing products and services to support complex personalization models for direct mail programs. "We have seen overwhelming evidence that the marketplace wants a single source that can provide all the components of a direct mail package with a postal strategy that drives speed to market and substantial postage savings opportunities," said Jim Andersen, president and CEO. "Our expansion is focused on high speed lettershop equipment to support the complex products and programs that today's leading direct marketers are using to increase response rates." IWCO Direct will invest more than $4 million for high-speed mailing equipment including affixers, embossers, bindery lines and inserters. In addition, IWCO Direct will increase commingling capacity with the addition of its fifth Siemens Dematic Delivery-Point Bar Code Sorter (DBCS), the same equipment used by the United States Postal Service to sort mail. The new equipment will make IWCO Direct the nation's largest provider of commingling services. "Our increased capacity will support an increase in volume that will drive even greater lift for postage discounts and will increase penetration into the SCFs for customers who participate in our commingling and logistics programs," said Tom Wicka, executive vice president-Marketing and Sales. "The installation of our fifth DBCS machine also will provide additional flexibility for commingling that is unmatched in the industry." An additional $1.5 million investment will support technology upgrades for data processing, personalization and proofing technologies. The technology upgrade will allow IWCO Direct to maintain its position as the nation's leading solutions provider for complex direct mail packages and programs. Installation of both equipment and technology will begin in July and will be completed by December of this year. Over the past two years, IWCO Direct has added 250 jobs in its Minnesota facilities. An evaluation of additional expansion opportunities in other geographic locations is underway. IWCO Direct, headquartered in Chanhassen, Minn., has served the needs of North American direct marketers for more than 35 years. IWCO Direct provides direct mail like no one else by seamlessly integrating direct mail services from a primary campus resulting in streamlined production for all components - printing, plastics, envelope conversion and mailing services. IWCO Direct's industry experience and technology along with proprietary P.O.S.T. (Postal Optimization Strategy and Technologies) and RideShare(tm) commingling and logistics management programs deliver dramatic postage savings and faster time to market.