Cadmus Communications Reports a 23.5% Increase in Third Quarter Earnings.

RICHMOND, Va.--(BUSINESS WIRE)--April 25, 1995--Cadmus Communications Corporation (NASDAQ/NMS:CDMS) today reported net income of $2.1 million for its fiscal third quarter ended March 31, 1995, representing a 23.5% increase from fiscal 1994 third quarter net income of $1.7 million.

Net income per share for the quarter rose 17.9% to $.33 per share on 6,195,000 average outstanding shares from $.28 per share on 6,069,000 average outstanding shares for the third quarter of last year. As reported on March 7, 1995, net income for the third quarter of fiscal 1995 included a $.06 per share charge resulting from the sale of the Company's 50% joint venture interest in Central Florida Press, L.C.

Sales for the third quarter of fiscal 1995 were $74.8 million, up 11.0% over sales of $67.4 million recorded in the same period of fiscal 1994. The strong third quarter sales growth was driven by a 54.3% increase in marketing revenues and a 7.5% increase in printing revenues. The substantial growth in marketing sales was attributable to double-digit increases in each of Cadmus' marketing product lines. Growth in the printing revenues was due to higher sales of specialty magazines and financial printing, combined with continued growth in specialty packaging and research journal sales. Operating income rose 34.0% in the third quarter of 1995 and the Company's operating margin improved to 7.3% of sales from 6.1% of sales in the third quarter of fiscal 1994.

C. Stephenson Gillispie, Jr., chairman and chief executive officer, stated, "We are excited by this quarter's results, with impressive internal sales growth in both our higher-margin marketing operations and across most of our printing product lines. The improvement in our operating margin reflects our progress in enhancing our product mix and success in effecting the cost reductions from the previously announced restructuring of our research journal and specialty magazine operations. We continue to be optimistic about the growth potential of Cadmus as we continue our transition to a unified communications company."

Net income for the nine-month period ended March 31, 1995 was $4.8 million, or $.78 per share, a 20.0% increase over income before cumulative effect of changes in accounting principles of $4.0 million, or $.67 per share, recorded in the same period of fiscal 1994. Net income was $4.4 million, or $.74 per share, in the first nine months of fiscal 1994. Average shares outstanding were 6,189,000 and 6,054,000 for the first nine months of fiscal 1995 and 1994, respectively. Sales for the first nine months of fiscal 1995 were $202.5 million, up 13.8% over sales of $178.0 recorded for the same period of fiscal 1994.

Headquartered in Richmond, Virginia, Cadmus Communications Corporation is a graphic communications company specializing in printing, marketing, and publishing. -0-

         Cadmus Communications Corporation and Subsidiaries
                  Consolidated Statements of Income
                (In thousands, except per share data)
                           (Unaudited)

                          Three Months Ended     Nine Months Ended
                               March 31,             March 31,
                          ------------------     -----------------

                            1995       1994       1995        1994
                            ----       ----       ----        ----

Net Sales                 $74,846    $67,413   $202,466    $177,987
                           ------     ------    -------     -------
Operating Expenses
  Cost of sales            55,408     50,135    152,483     132,825
  Selling and
   administrative          13,956     13,181     37,508      35,018
                           ------     ------    -------     -------
Operating income            5,482      4,097     12,475      10,144

Interest and other (income) expenses
  Interest                  1,323      1,319      4,063       3,300
  Other (income) expenses     260        (37)       (38)        108
                           ------     ------    -------     -------

Income before income taxes  3,899      2,815      8,450       6,736

Income taxes                1,831      1,133      3,624       2,708
                           ------     ------    -------     -------
Income before cumulative
  effect of changes in
  accounting principles     2,068      1,682      4,826       4,028

Cumulative effect of
 changes in accounting
  for:
 Postretirement benefits
  (net of income tax
    benefit of $355)                                           (532)
 Income taxes                                                   933
                           ------     ------    -------     -------
Net Income                $ 2,068    $ 1,682   $  4,826    $  4,429
                           ======     ======    =======     =======

Earnings per share:

  Income before cumulative
   effect of changes in
    accounting principles  $  .33    $   .28   $    .78     $   .67

  Cumulative effect of changes in
   accounting for postretirement
   benefits and income taxes                                    .07
                           ------     ------    -------     -------

Net Income                $   .33    $   .28   $    .78    $    .74
                           ======     ======    =======     =======

Average number of common
  shares outstanding        6,195      6,069      6,189       6,054
                           ======     ======     ======      ======

CONTACT: Cadmus Communications Corporation, Richmond

David E. Bosher, 804/287-5685