NEENAH, Wis.--Sept. 19, 2005-- Outlook Group Corp. today reported net sales of $23,128,000 for the first quarter ended August 27, 2005, a 34.4% increase from sales of $17,207,000 for the first quarter of the prior year. Net earnings increased 73.8% to $1,222,000 or $0.35 per diluted share for the first quarter of fiscal 2006, compared to net earnings of $703,000 or $0.21 per diluted share for the comparable prior period. "This was a very strong quarter for Outlook Group. The significant improvement is a direct result of our strategies to increase sales and enhance productivity. We are continuing to build momentum, with solid top- and bottom-line growth," said Joseph J. Baksha, president and chief executive officer of Outlook Group. Baksha said the higher sales reflected increased orders from both existing and new clients. The improvement in earnings for the quarter was primarily due to increased capacity utilization and absorption of overhead as a result of the higher sales. "We are continuing to execute on our strategy to develop long-term client relationships by offering complete supply chain management solutions. We are also realizing the benefits of our ongoing productivity improvement programs and our investments in new equipment to enhance our capabilities. As an example, the client response to our recently purchased Kodak NexPress four-color digital printing equipment has been very positive," said Baksha. "Fiscal 2006 is off to an excellent start and we expect that we can look forward to continued progress in the months ahead."