American Reprographics Company Purchases Ridgway's, Inc., Enhancing Its National Position With 32 New Locations in the South and East.

Business Editors/Technology Writers

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Sept. 11, 2000

Largest Reprographics Firm in the United States Acquires the No. 2

Industry Player in a Friendly Buyout Leaving Principals in Place

American Reprographics Company, the leading provider of reprographic services and technology in more than 140 locations nationwide, today announced that it has acquired Ridgway's, Inc. of Houston, Tex., the number two reprographics firm in the U.S. The purchase price and other details of this transaction were not disclosed. With this purchase, American Reprographics will have combined revenues in excess of $420 million. By year-end 1999, Ridgway's, Inc. had sales revenue of approximately $70 million on their reprographics service business.

American Reprographics - the largest reprographics firm in the country - images, manages and reproduces architectural, engineering and construction-oriented plans, touching every aspect of the design-to-build process. Approximately 3,000 other companies are currently engaged in providing reprographic services across the nation, an overwhelming majority of which are single, storefront establishments.

"One hallmark of our success is retaining the local identity, expertise and market familiarity of our regional operating divisions, and we plan to continue this practice with the integration of Ridgway's," said Suri Suriyakumar, president and chief operating officer of American Reprographics.

According to Mohan Chandramohan, the company's chairman and CEO, "Ridgway's regional identity and strength were two of the reasons why we wanted to bring them into the fold. When you combine these factors with the extremely profitable results of their recent operational and management changes, the company was a natural acquisition candidate for us."

Under the direction of Yandell Rogers, III, Ridgway's president since 1996, the company has embraced the digital tools and techniques that are redefining the reprographics industry. Rogers has also reorganized the 75-year-old company's regional management team and dramatically increased its operating efficiencies.

"We welcomed the opportunity to become part of the most progressive, growth-oriented reprographics organization in the country," said Rogers. "Not only will we have the advantage of American Reprographics' management information systems, infrastructure, economies of scale and tremendous training programs, but the company understands the industry in a way that so-called `consolidators' do not. Most reprographics firms - like ours - are family-run businesses. It's a different dynamic than what is found in most industries this size. I'm sure that American Reprographics' sensitivity to this issue has contributed to its success."

Suriyakumar believes that American Reprographics' organization model and corporate support functions are powerful tools that enable its divisions to focus on providing high-quality customer service in their local market areas.

"As big as it is, the construction industry relies on suppliers and service providers close to each job site," Suriyakumar said. "That's why we are convinced that our management philosophy - with its emphasis on local brands, and local operating efficiencies - is the right way to go. Our financial performance certainly seems to bear this out, resulting in margins that, in most cases, are more than twice as high as those of the average independent firm in the reprographics sector."

About the American Reprographics Company

Founded in 1988, the American Reprographics Company is a $420 million enterprise serving more than 100,000 customers nationwide. In nearly 100 markets across the United States, the company's 40 divisions and 3,000 employees are the leading suppliers of reprographic(1) services and technology to the construction industry, manufacturers, software and hardware development companies, corporate offices, marketing and advertising agencies, publishing firms, retail establishments and presentation graphics providers. The company is co-headquartered in Pasadena, Calif., near Los Angeles, and Walnut Creek, Calif., in the San Francisco Bay Area. For more information, visit www.e-arc.com.

About Ridgway's, Inc.

Founded in 1926, Ridgway's, Inc. is a diversified national provider of reprographics and digital imaging services and equipment. The reprographics portions of the Ridgway's family of companies have now been acquired by the American Reprographics Company and include Ridgway's Reprographics, Ridgway's Management Services (providing on-site services) and NPI Digital (offering photographic and color digital imaging services). Independent from American Reprographics, Ridgway's provides comprehensive legal and litigation support services through Ridgway's Legal Solutions, sales and service of reprographic and office equipment through Business Solutions International, and also supplies specialty papers to the reprographics industry through its Universal Blueprint Paper Company. For more information, visit www.ridgways.com.

(1) The word "reprographics" is an industry term combining "reproduction" and "graphics." Reprographers literally manage and reproduce graphics of all kinds through a variety of methods including electronic imaging, photocopying, photographic means, and other primarily digital methods. Most dictionaries define the word as: "the facsimile reproduction (as by photocopying) of graphic matter."