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Mail-Well Announces Continued Improved Profitability

Press release from the issuing company

ENGLEWOOD, Colo., Feb. 9 -- Mail-Well, Inc., announced its results for the fourth quarter and year ended December 31, 2003. The net income for the quarter was $5.7 million, or $0.12 per share on a diluted basis, and $8.4 million, or $0.17 per share on a diluted basis, for the year 2003, on sales of $424 million and $1,672 million, respectively, compared to a net loss of $2.6 million, or $0.05 per share, and a net loss $202 million, or $4.24 per share, on sales of $436 and $1,729 million during the same periods of 2002. In the three months ended December 31, 2003, results included restructuring costs of $0.3 million and a loss on discontinued operations of $0.4 million, net of tax. In the three months ended December 31, 2002, Mail-Well's net loss included a charge for restructuring of $11.3 million and a loss of $2.9 million, net of tax, on discontinued operations. EBITDA for the fourth quarter of 2003 was $39.5 million and for the full year $131.6 million, compared to ongoing EBITDA of $121.0 million achieved for the full year 2002 representing a 9% improvement. An explanation of the Company's use of EBITDA for comparative purposes is provided below. Net cash provided by operating activities in the quarter ended December 31, 2003 was $25.8 million and $59.5 million for the year then ended. Paul Reilly, Chairman, President and CEO, stated, "These reported results represent the sixth consecutive quarter where the company has achieved year over year improvement in profitability in a difficult industry environment. They are very much in line with the guidance we gave throughout 2003 and with the expectations of the analysts who follow our stock and our debt instruments. During the year we have increased our market share, increased our profitability and increased our return on capital employed. We intend to continue on the same path in 2004." Reilly also stated, "The activity in our markets is improving as the economy is now strengthening, and we expect that, as some overcapacity in our businesses is absorbed, prices will improve. Our new organization around total customer solutions is already allowing us to achieve major customer gains. We will continue investing significant time and resources to develop our people, organization and facilities. We anticipate that the mobilization of our employees to better serve our customers and the organization of our operations around our customers' needs will generate top line growth and allow us to grow our positions in all of our markets."