Labels And Label Systems
    
                                                       The Labels and Label Systems SBU will focus on specific end-user applications that require custom and specialty products/solutions.

                                            OUTLOOK: The Labels and Label Systems SBU will deliver complete label solutions that focus on process and quality improvement. Standard Register has many patented, unique, proprietary labels designed specifically to meet the needs of our customers. We will continue to meet the needs of both our stock label and custom label customers, while devoting a significant amount of time and resources to distribution labels.

Distribution labels will continue to grow exponentially as shoppers increasingly turn to the Internet and catalogs to make their purchases. This means more and smaller packages going out from retailers v. large bulk shipments made from manufacturers to retailers. Standard Register currently serves several of the world's largest overnight package delivery services, and many smaller players are expected to enter the market as demand for package delivery increases.

In addition to distribution labels, Standard Register will provide manufacturing, custom and stock labels as well as label applicators and label software solutions. Alliances with complimentary equipment, software and service providers will also help fuel growth in Labels and Label Systems. We expect this SBU to have an annualized revenue run-rate of $155 million by the end of 2001.





Products and Services: Market Trends: Goals:
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Pressure Sensitive Labels
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Stock Labels
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Custom Labels
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Shipping Labels
Label Applicators
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Size of the pressure sensitive market segment is approximately $10 billion
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The pressure sensitive market is growing at 8% per year
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Grow market share in distribution, manufacturing, healthcare and transportation sectors
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Maintain operating return on sales at 10%+