Notes to Consolidated Financial Statements
    

NOTE  16  -  S u b s e q u e n t  E v e n t
On January 25, 2001, the Company announced a new business strategy designed to recover the market value of the Company and establish a platform for long-term earnings growth and shareholder return. It is comprised of four components, including restructuring, reorganization, performance improvement and growth initiatives.

After an extensive analysis, the Company decided to jettison elements of its business that were not economically profitable. These elements were estimated to represent $225-$250 million of the Company's $1.266 billion in annual revenue. In conjunction with these actions, the Company also targeted $125 million in annual cost reductions resulting primarily from a reduction of 2,400 jobs and a 30% reduction in production capacity. A restructuring charge estimated at $109 million will be recorded in the first quarter 2001, including cash costs of $53 million, mostly for severance and other personnel related items, and $56 million of asset write-downs.

The Company will migrate from a single functional organizational structure to four strategic business units with distinct profiles and missions, including Document Management, Fulfillment Services, Labels and Label Systems, and SMARTworks.com. These organizational changes will take place during 2001 and the Company expects to report along these segments no later than the first quarter 2002.