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Outlook for 2008
•Currently developing budgets
•Examining cost structure more stringently than ever
–Will look for
new opportunities to streamline operations
•Improving cost structure including more printing, composition, pre-press, and digital educational products
off shore
–25% to 30%
cost savings by printing books and ancillary products off shore
–About $100
million of prepublication costs can potentially be done off shore at savings of about $0.50 on the
dollar
–We will step
up efforts