Consolidated Graphics Reports Year-End Results.

Business Editors

HOUSTON--(BUSINESS WIRE)--April 26, 2000

Consolidated Graphics, Inc. (NYSE:CGX) today announced results for its fiscal year ended March 31, 2000.

For the twelve months ended March 31, 2000, total sales increased 43% to $624.9 million compared to $436.0 million in 1999. Net income increased 19% to $38.5 million, or $2.51 per diluted share, versus $32.3 million, or $2.28 per diluted share, in the prior- year period. Operating income for the twelve-month period increased 28% to $77.6 million from $60.7 million.

Total revenues for the fiscal 2000 fourth quarter increased 30% to $167.8 million compared to $129.3 million in the prior year period. Net income for the fourth quarter was $8.2 million, or $.58 per diluted share, compared to $9.6 million, or $.65 per diluted share in 1999. Operating income for the fourth quarter was $17.9 million, unchanged from the corresponding period in 1999.

Joe R. Davis, Chairman and Chief Executive Officer, commented, "Our fourth quarter results were in line with our expectations as we continue to address the challenges of current conditions in the printing industry as well as pursue opportunities with our e-business strategy and national account sales initiatives. We continue to be a very profitable company with industry-leading operating margins. These margins were impacted however by our efforts to increase sales volumes in the midst of unfavorable industry conditions, which persisted through much of the quarter, together with marketing costs related to the roll out of our e-business strategy.

"During the fourth quarter, we made considerable progress with our e-business strategy. We are completing the development of significant branded e-business services, including OPAL (Online Print Asset Library) and COIN (Custom Ordering Interactive Network), which will be highly attractive to our existing print customers as well as open new sales channels. In addition, we have formed CGXMedia to market our ability to provide complementary electronic services to our customers on a national basis."

Mr. Davis concluded, "We continue to seek to gain market share in this very competitive print environment. Our national network of printing companies, whose geographic reach and extensive printing capabilities is unmatched in the industry, is well-positioned to serve national accounts and we expect positive developments from our recent efforts in this area in the near future. In the meantime, we remain committed to generating above industry average revenue growth rates while maintaining our industry-leading operating margins."

In addition, the Company announced that it has repurchased 2.1 million shares of its common stock since the adoption of its share buyback program, reducing its total common stock outstanding to 13.7 million shares. The Company's Board of Directors has authorized the repurchase of an additional 1.4 million shares of common stock that may be purchased from time to time in open-market purchases or in privately negotiated block purchase transactions. The amount and timing of any purchases will depend upon a number of factors, including the price and availability of the Company's shares, general market conditions and certain provisions included in the Company's existing bank credit agreements.

Consolidated Graphics operates printing companies in 25 states with annualized revenues in excess of $650 million. For more information, visit the Company's Web site at www.consolidatedgraphics.com.

This press release contains forward-looking statements, which involve known and unknown risks, uncertainties or other factors that could cause actual results to materially differ from the results, performance or other expectations implied by these forward-looking statements. Consolidated Graphics' expectations regarding run-rate revenues assume, among other things, general economic conditions, continued demand for its product, the availability of raw materials, retention of its key management and operating personnel, as well as other factors detailed in Consolidated Graphics' filings with the Securities and Exchange Commission.

                      CONSOLIDATED GRAPHICS, INC.
                     Consolidated Income Statement
               (In thousands, except per share amounts)

                           Three Months Ended         Year Ended
                               March 31,                March 31,
                           2000         1999        2000        1999

Sales                   $ 167,772   $  129,313   $ 624,895   $ 435,961
Cost of Sales             119,704       88,924     437,345     298,935
  Gross Profit             48,068       40,389     187,550     137,026
Selling Expense            16,840       12,628      61,267      42,767
General and
 Administrative Expense    13,310        9,908      48,677      33,605
  Operating Income         17,918       17,853      77,606      60,654
Interest Expense, net       4,308        2,130      13,476       7,745
  Pretax Income            13,610       15,723      64,130      52,909
Income Taxes                5,442        6,133      25,651      20,634
  Net Income              $ 8,168    $   9,590    $ 38,479    $ 32,275
Earnings Per Share
  - Basic                 $   .58    $     .66    $   2.54    $   2.35
Earnings Per Share
  - Diluted               $   .58    $     .65   $    2.51    $   2.28

Weighted Average
 Shares Outstanding
  Basic                    14,138       14,445      15,155      13,762
  Diluted                  14,195       14,866      15,336      14,126