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Consolidated Graphics Reports Increased Sales in Q4

Press release from the issuing company

HOUSTON, May 4 -- Consolidated Graphics, Inc. today announced financial results for its fourth quarter and year- ended March 31, 2005. Sales for the March quarter were $197.7 million, up 8% compared to $183.4 million a year ago. Net income for the March quarter was $8.6 million, or $.60 per diluted share, representing increases of 39% and 36% compared to net income of $6.2 million and $.44 per diluted share reported for the March 2004 quarter. For the year-ended March 31, 2005, total sales were a record $779.0 million, up 10% compared to $708.1 million in 2004. Net income in 2005 totaled $32.7 million, or $2.31 per diluted share, representing increases of 64% and 60% compared to net income of $20.0 million and $1.44 per diluted share in the prior year. "We are pleased to report another quarter of significantly improved results," commented Joe R. Davis, Chairman and Chief Executive Officer. "Our sales growth resulted from both internal growth, which was driven by our National Sales and Cross-Selling efforts, and acquisitions. Operating margin for the March quarter was 7.4%, a 17% improvement over operating margin of 6.3% in the year ago period. This represents the fourth consecutive quarter of year-over-year margin improvement, driven by our focus on leveraging our sales growth and controlling costs. Operating cash flow was $22.6 million in the March quarter, evidencing our continuing ability to generate strong cash flows and further enabling us to operate with the substantial benefits derived from a strong balance sheet." Mr. Davis added, "Our 2005 accomplishments were highlighted by our acquisition of eight companies with total annual sales in excess of $110 million, increases of 22% in National Sales and 27% in Cross-Selling, and a 42% increase in operating income. We begin our 2006 year with significant momentum and are well-positioned to capitalize on our industry-leading market position and financial strength to generate long term growth in sales and profits." Mr. Davis concluded, "For the first quarter, revenues are projected to grow 16% from the prior year to $210.0 million, reflecting a combination of internal growth and a full quarter contribution from our March acquisition of the seven Kelmscott companies. Diluted earnings per share are projected at $.60, an increase of 25% over the prior year."