STATE OF THE INDUSTRY - Far from Dead

The two most active consolidators, Consolidated Graphics and Mail-Well, have been punished severely for missing earnings expectations and, consequently, carry price to earning (P/E) ratios well below those carried by the public printers, such as Wallace and Quebecor World, which are perceived by Wall Street as operators, not as consolidators. Whereas at the end of October 2000, Consolidated was trading at a P/E of 4.39 and Mail-Well at 4.24, Quebecor carried a P/E multiple of 27.79 and Wallace a P/E multiple of 27.61.