MAIL-WELL TO CONCENTRATE RESOURCES ON GENERAL COMMERCIAL PRINTING ANDENVELOPE SEGMENTS; 15-20% ANNUAL EPS GROWTH TARGETED WITH STRENGTHENEDBALANCE SHEETENGLEWOOD, CO - With the goal of increasing value for shareowners, Mail-Well,Inc. (NYSE: MWL) announced today its new strategic direction.Following a 90 day review of how best to serve customer, employee andshareholder interests, the new direction will result in the following changeswith the financial goal of achieving 15-20% annual EPS growth over the nextfive years:* Mail-Well will concentrate resources on its two largest segments:envelopes and commercial printing.* Mail-Well will sell its smaller label and printed office productssegments.* Mail-Well's 2001 sales, excluding the business unit divestitures, areexpected to be approximately $1.6 billion.* The proceeds from the divestitures, which the company expects tocomplete within the next 12 months, will be used to decreaseMail-Well's debt, with a debt-to-total capital goal of less than 55%by the end of 2003.* To improve productivity, utilization, and sales coordination,Mail-Well Envelope will close nine existing U.S. plants and move thebusiness and necessary equipment into the remaining 27 envelopeoperations. The plan is to grow total envelope sales whileconsolidating. The consolidation plan, together with theimplementation of best practices within the remaining envelopeplants and the commercial print plants, are expected to provideestimated annual operating savings of $38 million when fullyimplemented. The one-time cash cost of the consolidation will be $43million in 2001 and $4 million to complete the consolidation in2002.* Mail-Well will continue its acquisition program, but with asharpened focus on building local general commercial printing marketshare and on further consolidating the envelope industry.* All acquisitions will be evaluated with strict leverage and cost ofcapital criteria --- 45%-55% debt-to-total capital ratio target andearnings in excess of Mail-Well's 12% after-tax cost of capital.- more -
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