STATE OF THE INDUSTRY - Far from Dead

As we see P/E multiples and stock prices improve, we will also see a restoration of buying activity—this time with a more selective and disciplined approach.

We believe that "Phase III -The Profit Growth Era," will begin by 2003. Equilibrium between printers and their customers will be achieved and the public companies will enjoy gross margins ranging from 35 percent to 40 percent, and EBITDA margins approaching 20 percent.