Ennis to Acquire Crabar/GBF; Purchase of Crabar/GBF for $18 Million in Cash.

DAYTON, Ohio & MIDLOTHIAN, Texas -- Ennis, Inc. (formerly Ennis Business Forms, Inc.) (NYSE:EBF) a manufacturer of printed business products headquartered in Midlothian, Texas, and Centrum Equities, Inc, a privately held company headquartered in Chicago, have entered into a definitive agreement to sell 100% of the stock of Crabar/GBF to Ennis for $18 million in cash less debt assumed. The acquisition of Crabar/GBF, along with the separately announced merger with Alstyle Apparel, continues the Ennis strategy of growth through related manufactured products (the Crabar/GBF acquisition) or acquiring growing product lines (apparel products) for our existing customer base. The acquisition will add high-quality long and medium run print production, along with pressure sensitive labels and form-label combinations to Ennis' current line of medium- and short-run print products and solutions, financial documents, print fulfillment, labels, collateral materials, POP commercial printing, forms and logistics services, and promotional products sold through the indirect sales (distributorship) marketplace. The Boards of Directors of both companies have unanimously approved the agreement.

The transaction is expected to be accretive to Ennis's earnings in the first full year of operations. In addition to significantly enhanced revenue opportunities it deepens the penetration of Ennis' geographic footprint in the United States as well as expands the product capability of Ennis in the forms marketplace. Crabar GBF has operating facilities in Cerritos, Calif.; Bellville, Texas; Princeton, Ill.; Medfield, Mass.; Edison, N.J.; El Dorado, Mo., and Leipsic, Ohio, as well as an administrative center in Dayton, Ohio. Crabar/GBF had sales of $69 million in the most recent fiscal year end. Roger Brown, President and CEO of Crabar/GBF, will continue to be active in the forms industry exploring possible transactions on behalf of Ennis which would be financially attractive to Ennis.

Keith Walters, Chairman, President and CEO of Ennis, said, "Today's announcement is another positive step forward in the continued growth and consolidation of the forms business for Ennis. The transaction will place Ennis among the top players in the forms and printed products arena serving the 40,000 independent distributors and printers who comprise the largest share of the forms marketplace. It is great news for our customers, our employees and our shareholders."

About Ennis

Ennis (www.ennis.com), Inc. (formerly Ennis Business Forms, Inc.) is primarily engaged in the production of and sale of business forms and other business products. The Company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, Texas, the Company has 30 production facilities (before the Crabar/GBF acquisition) located in 12 states, strategically located to serve the Company's national network of distributors. The Company, together with its subsidiaries, operates in three business segments: the Forms Solutions Group, the Promotional Solutions Group and the Financial Solutions Group. The Forms Solutions Group is primarily engaged in the business of manufacturing and selling business forms and other printed business products. The Promotional Solutions Group is primarily engaged in the business of design, production and distribution of printed and electronic media, presentation products, flexographic printing, advertising specialties and Post-it Notes. The Financial Solutions Group designs, manufactures and markets printed forms and specializes in internal bank forms, secure and negotiable documents and custom products.

This news release contains statements relating to future results of the combined company including statements (i) that the transaction will be accretive to the combined company's earnings in the first year of operations, excluding the impact of transaction-related charges, (iii) that the expected debt is expected to be no more than $14 million, as well as other anticipated, believed, planned, forecasted, expected, targeted and estimated results and the combined company's outlook concerning future results, that are "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements.

Factors relating to the completion of the transaction and the integration of the businesses that could cause material differences in the expected results of the combined company include, without limitation, the following: the development and execution of comprehensive plans for asset rationalization, the ability to eliminate duplicative overhead without excessive cost or adversely affecting the business, the potential loss of customers and employees as a result of the transaction, the ability to achieve procurement savings by leveraging total spending across the organization, the success of the organization in leveraging its comprehensive product offering to the combined customer base as well as the ability of the organization to complete the integration of the combined companies without losing focus on the business. In addition, the ability of the combined company to achieve the expected revenues, accretion and synergy savings will also be affected by the effects of competition (in particular the response to the transaction in the marketplace), the effects of paper and other raw materials and fuel price fluctuations and shortages of supply, the rate of migration from paper-based forms to digital formats, general economic and other factors beyond the combined company's control, and other risks and uncertainties described from time to time in Ennis' periodic filings with United States securities authorities, as applicable.