Master Graphics Acquires Stephenson Printing.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 28, 1998--Master Graphics, Inc. (Nasdaq: MAGR) today announced it has acquired Stephenson Printing of Alexandria, Virginia, a suburb of Washington, D.C. Terms of the transaction were not disclosed.

Stephenson Printing is a high-end web and sheet-fed commercial printer, with annual sales in excess of $30 million. The company does business with a broad range of corporations, associations, institutions, and publishers in the Baltimore/Washington, D.C. market, one of the top 15 printing markets in America. Stephenson Printing, founded in 1959, has 170 employees. Founder and CEO George Stephenson will remain with the company following the completion of the transaction, along with the rest of Stephenson Printing's senior management.

Master Graphics CEO John P. Miller said, "Stephenson Printing Company is a significant strategic acquisition for Master Graphics. Their reputation and capabilities are extremely important as we continue to broaden the product that our divisions offer to their customers. Acquiring a company of Stephenson's stature, we believe, will enhance our discussions with other industry leaders."

Stephenson Printing CEO George Stephenson said, "We are convinced of the advantages of consolidation in our industry. We chose to align with Master Graphics because we believe that the management team's vision, credibility, and expertise will result in a bright future for our valued employees and customers. The uniqueness of the Master Central concept was also a critical factor in our decision."

With the Stephenson acquisition, Master Graphics will have 14 divisions with annual run rate revenue of approximately $210 million, and is growing rapidly through the acquisition of market-leading general commercial printing companies. Master Graphics adds managerial and operational expertise, scheduling flexibility and more effective marketing of production capacity through its Master Central clearinghouse.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors including the Company's limited operating history, general economic conditions, competitive factors, the ability of the Company to integrate the operations of acquired companies and the other risks inherent in the general commercial printing business. For further information on factors which could impact the Company and the statements contained herein, reference is made to the filings of Master Graphics, Inc. with the Securities and Exchange Commission.