CDMS Cadmus Communication (MM)

Periscope, Inc. and Cadmus Specialty Packaging Join Forces to Provide End-to-End Worldwide Print Management Solution to Retailers and Consumer Product Companies RICHMOND, Va., July 27 /PRNewswire-FirstCall/ -- Cadmus Communications Corporation (NASDAQ:CDMS) today announced that it has entered into a joint venture agreement with Periscope, Inc., a Minneapolis based graphic services and creative agency. The new PeriscopeCadmus(TM) entity will integrate Cadmus Specialty Packaging's global packaging network with Periscope's design and pre-press capabilities to provide an end-to-end worldwide print management solution. The 50/50 joint venture agreement between Cadmus and Periscope was signed on June 29, 2006. Cadmus simultaneously announced that PeriscopeCadmus(TM) has been selected as one of only four global print managers to serve a large U.S. based retail chain. This initial business development success will provide the joint venture with an excellent opportunity to win a significant portion of an estimated $200 million annual packaging buy. PeriscopeCadmus(TM) has already begun operations at its new, expanded pre- press and print management operation in Hong Kong. John Riley, Vice President of Operations for Cadmus Specialty Packaging, has relocated to Hong Kong to assume the position of Director, Global Operations and lead the team that will manage PeriscopeCadmus(TM) print operations in the eastern hemisphere. Gilbert Lee has signed on as Director, Sales & Prepress and in that role will share responsibility with Riley for leadership of the business in Asia. PeriscopeCadmus(TM) is currently adding 15 associates to existing Hong Kong staff in anticipation of rapid sales growth in Asia. Additional support offices are planned in the next few months in Shanghai, India, and Thailand to provide even closer regional support for anticipated business in those regions. Commenting on these developments, Alan Parnell, Vice President of Global Packaging Solutions for Cadmus, said "this is a tremendous opportunity to apply our global brand management expertise on a much larger scale. It expands the scope of our business in terms of services offered as well as enhancing our global reach. Our print and packaging network has grown to include facilities in China, Thailand, India and Turkey. The establishment in Hong Kong of a pre-press and print management hub, together with our existing U.S. and Central American capabilities, positions us to provide our customers with unparalleled global brand management solutions for packaging." Paul Suijk, Senior Vice President and Chief Financial Officer of Cadmus, commented: "This agreement and the related business development success represents an opportunity to aggressively accelerate our growth in Asia and sustain strong momentum in our Specialty Packaging business. With this joint venture, we can not only build on the success we have had in the Caribbean Rim, but we now can extend our production management capabilities literally around the world. We expect the joint venture and our Asian operation to move quickly from the current 'start up' phase and adding significant revenue and profitability as early as the fall of this year." Cadmus Specialty Packaging is a full-service print manufacturer that produces packaging and provides brand management services on a national and international level for companies in the consumer goods, technology, healthcare, tobacco, and apparel industries. It also provides assembly, fulfillment and logistics services with web-based inventory management. Dedicated to innovation and state-of-the-art manufacturing, Cadmus Specialty Packaging is ISO-registered, adheres to cGMP guidelines and is recognized industry-wide as a model of excellence. For more information, visit http://www.cadmuswhitehall.com/. Periscope, Inc. is a marketing agency providing clients with a full range of integrated services, including advertising, media planning and buying, interactive, public relations, design and graphic services. With offices in Minneapolis and Hong Kong, Periscope, a leading independent agency in the U.S., has 200 employees and $200 million in capitalized billings. The agency's clients include Arctic Cat, Buca di Beppo, Cox Communications, Humana, Papa Murphy's Take 'N' Bake Pizza and Target. For more information, visit http://www.periscope.com/. "Cadmus ... Serving Education, Science, Health" Cadmus Communications Corporation provides end-to-end, integrated graphic communications services to professional publishers, not-for-profit societies and corporations. Cadmus is the world's largest provider of content management and production services to scientific, technical and medical journal publishers, the fifth largest periodicals printer in North America, and a leading provider of specialty packaging and promotional printing services. Additional information about Cadmus is available at http://www.cadmus.com/. Statements contained in this release relating to Cadmus' future prospects and performance are "forward-looking statements" that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially from management's expectations include but are not limited to: (1) the overall economic environment, (2) the equity market performance and interest rate environment, which can impact our pension liability, (3) the impact of price increases for energy and other materials and services affected by higher oil and fuel prices, (4) our ability to grow revenue and market share in the educational and government services markets, (5) significant price pressure in the markets in which we compete, (6) the loss of significant customers or the decrease in demand from customers, (7) our ability to continue to obtain improved efficiencies and lower production costs, (8) the financial condition and ability to pay of certain customers, (9) our ability to implement and realize the expected benefits associated with our equipment replacement and consolidation plan, including our ability to successfully complete certain consolidation initiatives and effect other restructuring actions, (10) our ability to operate effectively in markets outside of North America, (11) our ability to realize the tax benefits associated with certain transactions, and (12) our ability to implement and realize the expected benefits associated with our increased operations in Asia and the business opportunities available to the PeriscopeCadmus joint venture. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. The information provided in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements made herein. DATASOURCE: Cadmus Communications Corporation CONTACT: Paul K. Suijk, Senior Vice President & CFO, +1-804-287-5694 or Tommy McRae, Vice President Marketing & Technical Services, +1-704-583-6543, both of Cadmus Communications Corporation Web site: http://www.cadmus.com/ http://www.cadmuswhitehall.com/ http://www.periscope.com/ Company News On-Call: http://www.prnewswire.com/comp/115581.html

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