Ennis Business Forms, Inc. Reports Third Quarter Operating Results.

DESOTO, Texas--(BUSINESS WIRE)--Dec. 9, 1999--

Ennis Business Forms, Inc. (NYSE:EBF) today reported operating results for the third quarter ended Nov. 30, 1999.

For the nine months net sales were $118,996,000, compared to net sales of $112,038,000 for the same period last year, and net earnings were $11,099,000 ($.68 a share), compared to net earnings for the same period last year of $9,863,000 ($.60 a share). Basic and diluted per share earnings computations were based on 16,267,267 shares for 1999 and 16,235,447 shares for the prior period.

For the third quarter ended Nov. 30, 1999, net sales were $41,173,000 compared to net sales of $38,800,000 for the same period last year, and net earnings were $3,960,000 ($.24 a share), compared to net earnings for the same period last year of $3,280,000 ($.20 a share).

Net sales increased 6.1% in the quarter and 6.2% in the nine-month period ended Nov. 30, 1999. The increase in the quarter was attributable to revenue from the Company's newly acquired businesses, with only modest increases from the Company's business form product segment. Year to date increases in revenue were primarily the result of increases in the business form product segment. Year to date earnings were impacted by a pre-tax gain of $1,182,000 on the sale of a facility in Boulder City, Nevada, and a pre-tax charge of $611,000 for impairment of intangible assets relating to the Company's InstaColor product line. These two events, both of which occurred in the second fiscal quarter, contributed a net of $.02 a share to the year to date earnings. Earnings for the quarter increased $680,000 (20.7%) over the prior year quarter, and, excluding the events mentioned above, increased $872,000 (8.8%) in the current year over the prior year.

Ennis Business Forms, Inc. is among the largest private-label forms suppliers in the United States. Headquartered in DeSoto, Texas, the Company has 17 production facilities in 12 states strategically located for Ennis' national network of distributors. Ennis' customer service centers also support distributors in their business efforts. The Company offers an extensive product line, from simple stock forms to more complex forms, laser-cut sheets, tags, labels, presentation folders, commercial printing, advertising specialties, screen printed products and temporary point-of-purchase advertising products that can be custom designed to meet customers' needs. -0-

                           Earnings Summary
                              (unaudited)

                          Nine Months Ended November 30,
                                 1999       1998
                                 ----       ----
                               (Thousands Omitted)

Net sales                      $118,996    112,038
                               ========   ========

Earnings before income taxes    $17,640     15,594
Provision for income taxes        6,541      5,731
                               --------   --------
  Net earnings                  $11,099      9,863
                               ========   ========

  Net earnings per share           $.68        .60
                               ========   ========


                        Three Months Ended November 30,
                                1999       1998
                              --------   --------
                              (Thousands Omitted)

Net sales                      $41,173    38,800
                               =======   =======

Earnings before income taxes    $6,340     5,189
Provision for income taxes       2,380     1,909
                               =======   -------
  Net earnings                  $3,960     3,280
                               =======   =======

  Net earnings per share          $.24       .20
                               =======   =======
-0-

Management's comments contain forward-looking statements that reflect the Company's current view with respect to future revenues and earnings. These statements are subject to numerous uncertainties, including (but not limited to) the rate at which the traditional business forms market is contracting, the application of technology to the production of business forms, demand for the Company's products in the context of a contracting market, variability in the prices of paper and other raw materials, and competitive conditions associated with the Company's products. Because of such uncertainties readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of Dec. 9, 1999.