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                                            In spite of our best efforts, the end of 1999 showed a decline in growth and performance for Standard Register. After the first quarter of 2000, there remained no doubt about the magnitude of the forces acting on the industry and on our Company. It became clear that fundamental change would be required to revitalize the Company and ensure a future with growth potential.

RESTORING THE VALUE OF STANDARD REGISTER

Three years ago, in 1997, the Company reported record revenue and profits of $868 million and $67 million, respectively, and a market value of nearly $1 billion. At year-end 2000, our revenue had grown to $1.3 billion, but our earnings were lower and our market value was down significantly to $390 million. This reduction in value reflected both lower earn-ings and investors' uncertainty about the Company's future direction. Our new strategic direction promptly addresses the profit issue, but more importantly, establishes a foundation for long-term growth and for restoration of the Company's value.

                                             Therefore, during the first half of 2000 the Board of Directors embarked on a path to lead the change by taking actions to install a new management team capable of leading the Company into the future. By June, CEO Dennis Rediker and COO Peter Dorsman were in their new positions. They were charged with developing a new strategy for the Company and acquiring the talent and capabilities to implement that strategy.

                                             I am pleased to report that a sound strategic plan has been developed. The Board has reviewed the plan in detail and believes that it will renew the Company and restore value as well as position the Company for future long-term growth.

                                             This report will speak to the plan our new management team has developed and has begun implementing. The Board of Directors anticipates improved results and increased value for our shareholders and our customers due to the execution of these strategic actions.

Thank you for your continued support.


Paul H. Granzow