Forecasts Lower Than Expected First Quarter Results Due to Prolonged Industry Downturn, in Spite of Success in Strategic Initiatives ENGLEWOOD, Colo., April 8 -- Mail-Well, Inc. announced today that, in spite of positive indications from its strategic initiatives, it expects first quarter 2002 earnings before restructuring charges to be below forecast results, largely as a result of lower-than-expected revenues and erosion of margins. "Our strategic initiatives are having the effects we had hoped for -- we are becoming a more streamlined, efficient competitor in our core envelope and commercial printing businesses," said Paul Reilly, Chairman, President and CEO. "Nevertheless, the downturns in our industries, especially the commercial printing industry, have been deeper and more prolonged than expected. As a result, our earnings and revenues for the first quarter will be below forecast." The company had forecast proforma new Mail-Well first quarter earnings in the range of $0.06 to $0.08 per share before the effect of restructuring charges, on sales of approximately $380 million. The company now expects first quarter proforma new Mail-Well earnings in the range of $0.02 to $0.04 per share before the effect of restructuring charges and EBITDA in the range of $23.5 million to $24.5 million, on sales in the range of approximately $368 million. "New Mail-Well" refers to Mail-Well's envelope and commercial printing businesses, other than assets held for sale. Mail-Well still believes its full-year EBITDA objective of $145 million to be achievable, however, this will be dependent on business activity in our envelope and commercial printing segments reversing the trend of the last five quarters and starting to improve. It is also based on the fact that the various strategic initiatives are yielding greater savings than originally anticipated. More details will be given on full-year outlook during the conference call referenced below. Mail-Well's Label and Printed Office Products segments and other assets held for sale are performing well and on plan. We fully expect to close certain sales of the segments or assets during the second quarter. As previously announced, we completed the divestiture of Curtis 1000 in late February.