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Consolidated Graphics Reports Q1, Net Income up 9.7%

Press release from the issuing company

HOUSTON, July 28 -- Consolidated Graphics, Inc. today announced results for its first quarter ended June 30, 2004. Revenue for the June quarter was $181.5 million, down 1.0% compared to $183.4 million in the March quarter and up 9.5% compared to $165.8 million a year ago. Net income for the June quarter was $6.8 million, or $.48 per diluted share, representing increases of 9.7% and 9.1% compared to net income of $6.2 million, or $.44 per diluted share, in the March quarter. Compared to the June quarter a year ago, net income increased 88.9% from $3.6 million and diluted earnings per share increased 84.6% from $.26. "The results for the June quarter reflect our ability to capitalize on the continuing steady improvement of economic and industry conditions," commented Joe R. Davis, Chairman and Chief Executive Officer. "We are capable of leveraging the strength of our business model in such a business climate, as evidenced by the improvement in our operating margins this quarter. We have now reported improvement in operating margins for five consecutive quarters, and at 6.9% this quarter, our operating margins are at their highest level in the last eleven quarters. Similarly, diluted earnings per share have also improved for five consecutive quarters, and at $.48, represents the highest such level for the last fourteen quarters." Mr. Davis continued, "Operationally, we had further accomplishments and made further investments in new technology and equipment in the quarter that will drive future growth in sales and profits. We are very pleased with the momentum that our sales and marketing initiatives are showing, including national sales, CGXSolutions and cross-selling. Additionally, our acquisition pipeline is growing." Mr. Davis concluded, "We are optimistic that the factors contributing to our strong June quarter will sustain for the remainder of the year. While we cannot predict with certainty the behavior of our external environment, we are confident in the inherent strength of our business. In the upcoming September quarter, we expect to generate revenue of $186 million and earnings per diluted share of $.50."