NEENAH, Wis.--Jan. 7, 2004-- Outlook Group Corp. today reported increased sales and earnings for the second quarter ended November 29, 2003. Net sales for the second quarter of fiscal 2004 were $19,342,000, up 11.7% from sales of $17,320,000 for the second quarter of the prior year. Net earnings were $555,000 or $0.16 per diluted share for the second quarter of fiscal 2004, up 14.7% from net earnings of $484,000 or $0.14 per diluted share for the same period in the prior year. For the first half of fiscal 2004, net sales were $36,403,000, a 6.1% increase from sales of $34,318,000 for the same period in the prior year. Net earnings were $348,000 or $0.10 per diluted share for the first two quarters of fiscal 2004, compared to earnings of $906,000 or $0.27 per diluted share for the same period in fiscal 2003. Before the effect of a change in accounting principle, earnings for the first half of fiscal 2003 were $1,142,000 or $0.34 per diluted share. Joseph J. Baksha, president and chief operating officer of Outlook Group, said the increased second quarter sales and earnings reflected the positive impact of three major long-term contracts signed in late fiscal 2003. "With the majority of the start-up expenses for these new contracts now behind us, we are beginning to realize the benefits of our strategy to build long-term client relationships by offering complete supply chain management services. We believe our improved second quarter performance indicates that we are on the right track," he said. Baksha said the company's second quarter results also benefited from increased sales to a major client that has increased its direct marketing program in response to "do not call" legislation. "We believe our ability to achieve improved results in a very challenging industry environment is a direct result of our strategy to offer a complete integrated package of supply chain management services including printing, packaging, mailing list development and direct mail services. We renewed a two-year contract with another major client in the second quarter and will continue to pursue additional long-term contracts to further strengthen our business," added Baksha.