Schawk Announces Earnings for Fourth-Quarter and Full-Year 2007

DES PLAINES, IL--(Marketwire - April 4, 2008) - Schawk, Inc. (NYSE: SGK), one of the world's leading providers of digital imaging graphic services to the consumer products and brand imaging markets, today reported fourth-quarter and full-year 2007 earnings.

As previously announced, the Company will restate its financial statements for the year and fourth quarter ended December 31, 2006, and therefore, all data and references to the 2006 periods in this release are as restated. In addition, the financial statements in this press release are subject to the finalization of the audit by the Company's external auditors. Full restated financial statements will be included in the Company's Annual Report on Form 10-K that is expected to be filed later in the month. All references to per share amounts in the text of this press release represent earnings per fully diluted share amounts.

Income from continuing operations resulted in fourth-quarter 2007 earnings of $0.24 per share compared to income from continuing operations of $0.24 per share in the same period of 2006.

For the twelve months ended December 31, 2007, the Company reported income from continuing operations per share of $1.07 compared to $0.98 per share on the same basis for the same period of 2006.

There were certain items that negatively impacted the fourth quarter of 2007, including $0.03 per share of impairment of intangible assets, $0.03 per share of acquisition due diligence costs written off in connection with an acquisition that was not consummated and $0.02 per share of foreign tax valuation allowances. Offsetting these negative items was an increase in income from reducing a vacant property reserve of $0.04. On a net basis, these items reduced earnings per share by $0.04 in the fourth quarter of 2007. (See Non-GAAP table, attached.)

There were also certain items that negatively impacted the fourth quarter of 2006 including $0.07 per share of acquisition integration and restructuring expenses and a $0.02 per share charge in income taxes for a valuation allowance against a United Kingdom (U.K.) deferred tax asset net of a reduction in other tax liabilities. Offsetting these negative items was a gain of $0.11 per share from reserve reversals related to the settlement of litigation. On a net basis, these items increased earnings per share by $0.02 in the fourth quarter of 2006.

The full-year 2007 results included a $0.03 per share gain on the sale of a building in the second quarter in addition to the items noted above from the fourth quarter of 2007.

The full-year 2006 results included certain items that negatively impacted earnings per share as follows -- $0.09 per share of acquisition integration and restructuring expenses, and a $0.02 per share charge in income taxes for a valuation allowance against a U.K. deferred tax asset net of a reduction in other tax liabilities. Offsetting these negative items was a $0.15 per share reserve reversal related to the settlement of litigation in the second and fourth quarters of 2006. On a net basis, these items increased earnings per share by $0.04 for the year ended December 31, 2006.

Consolidated Results for Fourth Quarter Ended December 31, 2007

Sales from continuing operations in the fourth quarter of 2007 increased $1.3 million, or 0.9 percent, to $141.3 million from $140.0 million in the same period of 2006. In the 2007 fourth quarter, consumer products packaging accounts, which represent approximately two-thirds of the Company's total revenue, increased 9.8 percent, advertising and retail accounts decreased 9.3 percent (the decrease was 0.2 percent excluding the retail account the Company lost in the first quarter of 2007 as previously disclosed and excluding the effects of foreign currency) and entertainment accounts decreased 17.9 percent as compared to the fourth quarter of 2006. Acquisitions contributed 3.6 points to the consumer products packaging increased revenues in the fourth quarter of 2007. Foreign currency translation reduced consumer products packaging revenue by 1.8 points as compared to the prior-year fourth quarter. After excluding the impact of acquisitions and foreign currency, organic growth was 8.0 percent in the fourth quarter of 2007 for consumer products packaging accounts. The strong revenues from consumer products packaging accounts resulted from projects that had been delayed in the third quarter coming into the fourth quarter, as the Company had anticipated. Entertainment account revenue decreased due to softness in the entertainment industry in the fourth quarter of 2007.

Gross margin from continuing operations was 35.1 percent in the fourth quarter of 2007 and 34.3 percent in the prior-year fourth quarter.

Operating income from continuing operations increased to $16.1 million in the fourth quarter of 2007 from $14.4 million in the prior-year fourth quarter due to lower general and administrative expenses in the fourth quarter of 2007 primarily from lower bonus expense. Fourth-quarter 2007 operating margin from continuing operations was 11.4 percent compared to 10.3 percent in the 2006 fourth quarter. Excluding certain items noted above, operating income would have been $16.9 million in the fourth quarter of 2007 as compared to $12.8 million in the prior-year fourth quarter. (See Non-GAAP table attached.)

Net interest expense in the 2007 fourth quarter was $2.0 million compared to $2.5 million in the prior-year fourth quarter due to a reduction in debt with proceeds from improved operating cash flows in the current period.

The fourth-quarter income tax provision from continuing operations is at an effective rate of 51.8 percent for 2007 compared to 45.8 percent in the 2006 period. The higher rate in the 2007 fourth quarter reflected the recording of valuation allowances on certain tax receivables and an increase in tax reserves.

Income from continuing operations was $6.8 million in the fourth quarter of 2007 versus $6.4 million in the same period of 2006.

Consolidated Results for Twelve Months Ended December 31, 2007

For the twelve-month period ended December 31, 2007, net sales from continuing operations of $544.4 million decreased $1.7 million, or 0.3 percent, from prior-year net sales of $546.1 million. Consumer products packaging accounts, which represent approximately two-thirds of the Company's total revenue, increased 8.3 percent, advertising and retail accounts decreased 13.5 percent (the decrease was 7.8 percent excluding a retail account the Company lost in the first quarter of 2007 as previously disclosed and excluding the effects of foreign currency) and entertainment accounts decreased 4.9 percent as compared to the prior year. Acquisitions contributed 2.7 points to the increase in consumer products packaging account revenues, and foreign currency translation contributed six-tenths of one percent to the sales increase in 2007. As a result, organic growth for consumer products packaging accounts was 5.0 percent. The organic growth in 2007 was as a result of new business wins in 2006 and 2007 as well as a strong finish to the year with consumer products packaging accounts in the fourth quarter. The decrease in sales in the advertising and retail accounts was due primarily to fewer ad pages being produced in 2007 versus 2006 and the loss of a significant retail account in early 2007. Entertainment accounts were lower primarily due to softness in the entertainment industry in Los Angeles, particularly in the fourth quarter of 2007.

Gross margin from continuing operations for the twelve months of 2007 was 35.3 percent, as compared to 34.8 percent in the prior-year period.

Twelve-months operating income from continuing operations increased to a record $60.2 million in the 2007 period from $54.9 million in the 2006 period. For the full year, the operating margin from continuing operations increased to 11.1 percent in 2007 as compared to 10.1 percent in 2006. The improvement in operating income year over year was due in part to solid operating results in the Company's U.K operations as a result of the restructuring efforts in 2006. In addition, the increase in consumer packaging accounts revenue increased operating income in 2007, as these accounts tend to have higher margins than other accounts. Excluding certain items noted above, twelve-month 2007 operating income would have been $59.8 million as compared to $52.0 million in the twelve months of 2006. (See Non-GAAP table, attached.)

Other income (expense) from continuing operations in the twelve-month period ended December 31, 2007, resulted in net interest expense of $8.9 million, compared to $10.2 million of net interest expense in the comparable prior-year period primarily as a result of a reduction of debt with proceeds from improved operating cash flows during the current year.

Income tax expense from continuing operations for the twelve months of 2007 was at an effective rate of 42.3 percent versus 39.8 percent in the 2006 period. The higher rate in the full-year 2007 period reflected the impact of recording valuation allowances and an increase in tax reserves in the fourth quarter of 2007 as noted above.

Twelve-month income from continuing operations increased to $29.6 million in 2007 from $26.9 million in 2006.

Other Information

Depreciation and amortization expense for the twelve months of 2007 was $21.4 million compared to $22.5 million in 2006. Capital expenditures for the twelve months of 2007 were $18.1 million compared to $24.7 million in the prior-year period. The decrease in capital expenditures in 2007 is due to lower spending on systems and other equipment as compared to 2006. Capital expenditures in 2006 were higher than normal as the Company implemented a new accounting and human resources systems and purchased a new printing press for its Los Angeles operation.

The Company's balance sheet as of December 31, 2007, improved compared to the year ended December 31, 2006, through a $32.6 million reduction in debt. The percentage of total debt to equity improved to 36.3 percent at the end of 2007 from 53.9 percent at the end of 2006. In addition, the percentage of total debt to total capital improved to 26.6 percent at December 31, 2007, from 35.0 percent at December 31, 2006. The Company also had approximately $36.7 million of outstanding borrowings on its $115.0 million revolving credit facility as of December 31, 2007, with availability totaling approximately $78.3 million.

In addition, the Company's cash flow from operating activities increased to $69.8 million from $28.0 million in the prior year. The biggest contributor to the improved operating cash flow was the improved collection of accounts receivable resulting in a $24.8 million increase in operating cash flow compared to the prior year.

Internal Control

In connection with the Company's assessment of internal controls as of December 31, 2007, the Company has determined that it had material weaknesses in internal control over revenue recognition, internal software capitalization, income taxes and entity level controls. With respect to revenue recognition, the Company disclosed in its third-quarter Form 10-Q that it had significant deficiencies in this area, and that it was attempting to improve the process and controls over revenue recognition by the end of the year. The Company has been working to improve its process over revenue recognition, but as of December 31, 2007, the Company concluded that the controls over this process were not effective. The Company intends to eliminate this weakness as well as the other weaknesses in internal control by the end of 2008.

Management Comments

President and Chief Executive Officer David A. Schawk commented, "From an operating perspective 2007 was a great year, particularly in light of the difficulties experienced in the overall economy. However, as we announced earlier, the Company discovered certain accounting errors, which cumulatively will require us to restate our financial statements for the first three quarters of 2007, and for the years 2006 and 2005. The primary errors leading to our conclusion to restate were in the areas of capitalization of costs related to the development of software and the timing of recognition of revenue and costs from software sales. We are now intensely focused on remedying the related weaknesses in our internal controls and are working diligently to improve our processes, to design effective controls over the areas cited and to add accounting resources as necessary.

"Our operations showed good, solid performance in the fourth quarter and in the full year of 2007. We had record operating cash flow in 2007 due to increased profitability and a significant improvement in our collection of accounts receivable. The improved cash flow allowed us to both make acquisitions and reduce our debt. We made three strategic acquisitions -- Benchmark in the U.S., Perks Design / Brand ID in Australia, and Protopak in Canada. These acquisitions helped to broaden both our service offerings and our geographic reach. Since these acquisitions were completed between June and October of 2007, they only were able to contribute to the second half of 2007's results, but should contribute a full year of results in 2008."

Mr. Schawk continued, "Once again, our fundamental strength -- the Schawk vision of world-class service to our clients -- has enabled us to deliver strong annual results, including a similar level of revenue in 2007 compared to 2006, despite a difficult economy and the loss of a major retail account in the first quarter of 2007, which impacted 2007 revenue by approximately $13.9 million, or 2.5 percent of sales. Additionally, our consumer products packaging business continued the strong performance we saw throughout the year.

"Additionally, in 2007, we focused on controlling costs, which helped us improve our operating margin. Operating income benefited from cost reduction efforts that were completed in 2007 at various operations, especially in Europe. Furthermore, as always we will be vigilant adopting best practice workflows and technologies to be efficient as possible."

Mr. Schawk concluded, "We look forward to 2008 and the opportunity to grow our business both organically and through acquisitions where opportunities arise. Although the economy is uncertain at this time, we are cautiously optimistic about Schawk's prospects in 2008 for solid revenue and profit growth since two-thirds of our business is with consumer product packaging accounts, which tend to require similar levels of services regardless of economic conditions."

Conference Call

Schawk invites you to join its fourth-quarter and full-year 2007 earnings conference call today at 10:00 a.m. central time. Hosting the call will be David A. Schawk, president and CEO, A. Alex Sarkisian, executive vice president and chief operating officer, and James J. Patterson, senior vice president and chief financial officer. To participate in the call, please dial 866-203-3436 or 617-213-8849 at least five minutes prior to the start time and ask for the Schawk, Inc. conference call, or on the Internet, go to http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=82169&eventID=1776993. If you are unavailable to participate on the live call, a replay will be available through April 11, 11:59 p.m. central time. To access the replay, dial 888-286-8010 or 617-801-6888, enter conference ID 16315789, and follow the prompts. The replay will also be available on the Internet for 30 days at the following address: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=82169&eventID=1776993

About Schawk, Inc.

Schawk, Inc. is the leading provider of brand management services, enabling companies of all sizes to connect their brands with consumers to create deeper brand affinity. With a global footprint of more than 60 offices, Schawk helps companies create consistent and compelling brand experiences by providing integrated strategic, creative and implementation services across brand touch points. Founded in 1953, Schawk is trusted by many of the world's leading organizations to help them achieve global brand consistency. For more information about Schawk, visit http://www.schawk.com

Note: This press release contains mention of various non-GAAP measures in an effort to better provide an understanding of Schawk's financial performance. Schawk has provided a reconciliation of GAAP to Non-GAAP numbers as they relate to certain items not related to core operating results in a table on the last two pages of today's press release.

Safe Harbor Statement

Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended and are subject to the safe harbor created thereby. These statements are made based upon current expectations and beliefs that are subject to risk and uncertainty. Actual results might differ materially from those contained in the forward-looking statements because of factors, such as, among other things, unanticipated difficulties associated with our ability to timely complete our review of the accounting matters described herein and restate our prior period financial statements or the discovery of additional accounting issues which may cause our investors to lose confidence in our reported financial information and may have a negative impact on the trading price of our stock; our ability to remedy known internal control deficiencies and weaknesses and the discovery of future control deficiencies or weaknesses, which may require substantial costs and resources to rectify; higher than expected costs, or unanticipated difficulties associated with, integrating the acquired operations; higher than expected costs associated with compliance with legal and regulatory requirements; the strength of the United States economy in general and specifically market conditions for the consumer products industry; the level of demand for Schawk's services; loss of key management and operational personnel; our ability to implement our growth strategy; the stability of state, federal and foreign tax laws; our continued ability to identify and exploit industry trends and exploit technological advances in the imaging industry; our ability to implement restructuring plans; the stability of political conditions in Asia and other foreign countries in which we have production capabilities; terrorist attacks and the U.S. response to such attacks; as well as other factors detailed in Schawk, Inc.'s filings with the Securities and Exchange Commission.

                             Schawk, Inc.
                 Consolidated Statements of Operations
              Three Months Ended December 31, 2007 and 2006
                              (Unaudited)
                   (In Thousands, Except Share Amounts)




                                                       2007        2006
                                                    ----------  ----------
                                                                (Restated)

Net sales                                           $  141,256  $  139,970
Cost of sales                                           91,682      92,001
Selling, general, and administrative expenses           33,486      35,190
Acquisition integration and restructuring expenses          --       3,175
Reserve reversal from litigation settlement                 --      (4,751)
                                                    ----------  ----------
Operating income                                        16,088      14,355

Other income (expense):
  Interest income                                          122         187
  Interest expense                                      (2,156)     (2,653)
                                                    ----------  ----------
                                                        (2,034)     (2,466)
                                                    ----------  ----------

Income from continuing operations before income
 taxes                                                  14,054      11,889

Income tax provision                                     7,273       5,440
                                                    ----------  ----------

Income from continuing operations                        6,781       6,449

Loss from discontinued operations, net of tax
 Benefit of $479                                            --        (689)
                                                    ----------  ----------

Net income                                          $    6,781  $    5,760
                                                    ==========  ==========


Earnings per share:
  Basic:
    Income from continuing operations               $     0.25  $     0.24
    Loss from discontinued operations                       --  ($    0.02)
                                                    ----------  ----------
    Net income per common share                     $     0.25  $     0.22
                                                    ==========  ==========

  Diluted:
    Income from continuing operations               $     0.24  $     0.24
    Loss from discontinued operations                       --  ($    0.03)
                                                    ----------  ----------
    Net income per common share                     $     0.24  $     0.21
                                                    ==========  ==========



Weighted average number of common and common
 equivalent shares outstanding:
   - Basic                                              26,987      26,504
   - Diluted                                            27,745      27,421

Dividends per common share                          $   0.0325  $   0.0325




                                Schawk, Inc.
                    Consolidated Statements of Operations
                    Year Ended December 31, 2007 and 2006
                                 (Unaudited)
                     (In Thousands, Except Share Amounts)




                                                       2007        2006
                                                    ----------  ----------
                                                                (Restated)

Net sales                                           $  544,409  $  546,118
Cost of sales                                          352,015     356,149
Selling, general, and administrative expenses          132,224     137,995
Acquisition integration and restructuring expenses          --       3,933
Reserve reversal from litigation settlements                --      (6,871)
                                                    ----------  ----------
Operating income                                        60,170      54,912

Other income (expense):
  Interest income                                          297         467
  Interest expense                                      (9,214)    (10,617)
                                                    ----------  ----------
                                                        (8,917)    (10,150)
                                                    ----------  ----------

Income from continuing operations before income
 taxes                                                  51,253      44,762

Income tax provision                                    21,672      17,813
                                                    ----------  ----------

Income from continuing operations                       29,581      26,949

Loss from discontinued operations, net of tax
 benefit of $851                                            --      (1,332)
                                                    ----------  ----------

Net income                                          $   29,581  $   25,617
                                                    ==========  ==========


Earnings per share:
  Basic:
    Income from continuing operations               $     1.10  $     1.02
    Loss from discontinued operations                       --       (0.05)
                                                    ----------  ----------
    Net income per common share                     $     1.10  $     0.97
                                                    ==========  ==========

  Diluted:
    Income from continuing operations               $     1.07  $     0.98
    Loss from discontinued operations                       --       (0.04)
                                                    ----------  ----------
    Net income per common share                     $     1.07  $     0.94
                                                    ==========  ==========



Weighted average number of common and common
 equivalent shares outstanding:
   - Basic                                              26,869      26,393
   - Diluted                                            27,701      27,395

Dividends per common share                          $     0.13  $     0.13




                               Schawk, Inc.
                        Consolidated Balance Sheets
                               (Unaudited)
                   (In Thousands, Except Share Amounts)



                                              December 31,   December 31,
                                                  2007           2006
                                              -------------  -------------
                                                               (Restated)
Assets
Current assets:
  Cash and cash equivalents                   $      11,754  $      10,177
  Trade accounts receivable, less allowance
   for doubtful accounts of $2,063 at
   December 31, 2007 and $4,621 at December
   31, 2006                                         113,215        128,623
  Inventories                                        21,902         22,220
  Prepaid expenses and other                         12,775         10,548
  Deferred income taxes                               4,755          8,580
                                              -------------  -------------
Total current assets                                164,401        180,148

Property and equipment, less accumulated
 depreciation of $89,715 at December 31, 2007
 and $78,745 at December 31, 2006                    77,083         75,850
Goodwill                                            249,895        236,972
Intangible assets, net                               41,528         35,755
Other assets                                          4,659          4,425
                                              -------------  -------------
Total assets                                  $     537,566  $     533,150
                                              =============  =============

Liabilities and Stockholders’ Equity
Current liabilities:
  Trade accounts payable                      $      24,465  $      25,634
  Accrued expenses                                   54,055         52,100
  Income taxes payable                                4,754          6,112
  Current portion of long-term debt                   4,433          2,177
                                              -------------  -------------
Total current liabilities                            87,707         86,023

Long-term debt                                      105,942        140,763
Other liabilities                                    23,807         25,095
Deferred income taxes                                15,814         16,103

Stockholders’ equity:
  Common stock, $0.008 par value, 40,000,000
   shares authorized, 29,213,166 and 28,821,875
   shares issued at December 31, 2007 and
   December 31, 2006, respectively; 27,013,482
   and 26,620,810 shares outstanding at
   December 31, 2007 and December 31, 2006,
   respectively                                         216            212
  Additional paid-in capital                        184,110        178,432
  Retained earnings                                 133,630        108,251
  Accumulated comprehensive income                   15,516          7,431
                                              -------------  -------------
                                                    333,472        294,326
  Treasury stock, at cost, 2,199,684 and
   2,201,065 shares of common stock at
   December 31, 2007 and December 31, 2006,
   respectively                                     (29,176)       (29,160)
                                              -------------  -------------
Total stockholders’ equity                          304,296        265,166
                                              -------------  -------------
Total liabilities and stockholders’ equity    $     537,566  $     533,150
                                              =============  =============




                                Schawk, Inc.
                 Reconciliation of Non-GAAP measures to GAAP
                                (Unaudited)
                    (In Thousands, Except Share Amounts)


                                                               RESTATED
                                              Three Months   Three Months
                                                  Ended          Ended
                                              December 31,   December 31,
                                                  2007           2006
                                              -------------  -------------

Operating income per GAAP                     $      16,088  $      14,355
Plus: Write off of costs  for acquisition not
 consummated (Non-GAAP)                               1,145             --
Plus: Impairment of certain intangible assets
 (Non-GAAP)                                           1,197             --
Plus: Acquisition integration expenses and
 restructuring (Non-GAAP)                                --          3,175
Less: Reversal of acquired vacant facility
 reserves (Non-GAAP)                                 (1,575)            --
Less: Reserve reversal from lawsuit
 settlements (Non-GAAP)                                  --         (4,751)
                                              -------------  -------------
Operating income- Non-GAAP                    $      16,855  $      12,779
                                              =============  =============
Income from continuing operations before
 income taxes per GAAP                        $      14,054  $      11,889
Plus: Write off of costs for acquisition not
 consummated (Non-GAAP)                               1,145             --
Plus: Impairment of certain intangible assets
 (Non-GAAP)                                           1,197             --
Plus: Acquisition integration and
 restructuring expenses (Non-GAAP)                       --          3,175
Less: Reversal of acquired vacant facility
 reserves (Non-GAAP)                                 (1,575)            --
Less: Reserve reversal from lawsuit
 settlements (Non-GAAP)                                  --         (4,751)
                                              -------------  -------------
Income from continuing operations- Non-GAAP          14,821         10,313
                                              -------------  -------------

Estimated tax effect of Non-GAAP items                7,677          4,723
Less: Tax adjustments and reserves                     (499)          (446)
                                              -------------  -------------
Income tax provision-Non-GAAP                         7,178          4,277
                                              -------------  -------------
Income from continuing operations-Non-GAAP    $       7,643  $       6,037
                                              =============  =============

Weighted average number of common and common
 stock equivalent shares outstanding (GAAP)          27,745         27,421
                                              =============  =============

Earnings per  fully diluted share from
 continuing operations- Non-GAAP              $        0.28  $        0.22
Less: Tax adjustments per fully diluted share
 (Non-GAAP)                                           (0.02)         (0.02)
Less: Write off of costs of acquisition not
 consummated per fully diluted share
 (Non-GAAP)                                           (0.03)            --
Less: Impairment of customer relationship
 intangible asset  per fully diluted share
 (Non-GAAP)                                           (0.03)            --
Less: Acquisition integration and
 restructuring expenses per fully diluted
 share (Non-GAAP)                                                    (0.07)
Plus: Reversal of acquired vacant facility
 reserves after tax per fully diluted share
 (Non-GAAP)                                            0.04             --

Plus: Reserve reversal from lawsuit
 settlements after tax per fully diluted
 share  (Non-GAAP)                                                    0.11

                                              -------------  -------------

Earnings per fully diluted share from
 continuing operations per GAAP               $        0.24  $        0.24
                                              =============  =============




                              Schawk, Inc.
               Reconciliation of Non-GAAP measures to GAAP
                              (Unaudited)
                  (In Thousands, Except Share Amounts)



                                                               RESTATED
                                               Year Ended     Year Ended
                                              December 31,   December 31,
                                                  2007           2006
                                              -------------  -------------

Operating income per GAAP                     $      60,170  $      54,912
Plus: Write off of costs for acquisition not
 consummated (Non-GAAP)                               1,145             --
Plus: Impairment of certain intangible asset
 (Non-GAAP)                                           1,197             --
Plus: Acquisition integration expenses
 (Non-GAAP)                                              --          3,933
Less: Reversal of acquired vacant facility
 reserves (Non-GAAP)                                 (1,575)            --
Less: Gain on sale of Orlando facility
 (Non-GAAP)                                          (1,110)            --
Less: Reserve reversal from lawsuit
 settlements (Non-GAAP)                                  --         (6,871)
                                              -------------  -------------
Operating income - Non-GAAP                   $      59,827  $      51,974
                                              =============  =============
Income from continuing operations before
 income taxes per GAAP                        $      51,253  $      44,762
Plus: Write off of costs for acquisition not
 consummated (Non-GAAP)                               1,145             --
Plus: Impairment of certain intangible assets
 (Non-GAAP)                                           1,197             --
Plus: Acquisition integration and
 restructuring expenses (Non-GAAP)                       --          3,933
Less: Reversal of acquired vacant facility
 reserves (Non-GAAP)                                 (1,575)            --
Less: Gain on sale of Orlando facility
 (Non-GAAP)                                          (1,110)            --
Less: Reserve reversal from lawsuit
 settlements (Non-GAAP)                                  --         (6,871)
                                              -------------  -------------
Income from continuing operations- Non-GAAP          50,910         41,824
                                              -------------  -------------
Estimated tax effect of Non-GAAP items               21,535         16,646
Less: foreign income tax valuation allowances
 (Non-GAAP)                                            (499)          (446)
                                              -------------  -------------
Income tax provision-Non-GAAP                        21,036         16,200
                                              -------------  -------------
Income from continuing operations- Non-GAAP   $      29,874  $      25,625
                                              =============  =============

Weighted average number of common and common
 stock equivalent shares outstanding (GAAP)          27,701         27,395
                                              =============  =============

  Earnings per fully diluted share from
   continuing operations- Non-GAAP            $        1.08  $        0.94
Less: Write off of costs of acquisition not
 consummated per fully diluted share
 (Non-GAAP)                                           (0.03)            --
Less: Impairment of customer relationship
 intangible asset  per fully diluted share
 (Non-GAAP)                                           (0.03)            --
Less: Tax adjustments and reserves (Non-GAAP)         (0.02)         (0.02)
Less: Acquisition integration and
 restructuring expenses per fully diluted
 share (Non-GAAP)                                                    (0.09)
Plus: Reversal of acquired vacant facility
 reserve per fully diluted share  (Non-GAAP)           0.04             --
Plus: Gain on sale of Orlando facility per
 fully diluted share (Non-GAAP)                        0.03             --
Plus: Reserve reversal from lawsuit
 settlements and other related adjustments
 after tax per fully diluted share (Non-GAAP)            --           0.15
                                              -------------  -------------

Earnings per fully diluted share from
 continuing operations per GAAP               $        1.07  $        0.98
                                              =============  =============

Contact Information: AT SCHAWK, INC.: James J. Patterson Sr. VP and CFO 847-827-9494 jpatterson@schawk.com AT DRESNER CORPORATE SERVICES: Philip Kranz 312-780-7240 pkranz@dresnerco.com