NOTE 14 - Segment Reporting

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. As part of this new business strategy, the Company has migrated from a single functional organizational structure to four strategic business units with distinct profiles and missions primarily organized along product lines: Document Management, Fulfillment Services, Label Solutions and SMARTworks.com, Inc.
     SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information," requires companies to provide certain information about their operating segments. As of the fourth quarter 2001, the Company is operating under the new business Strategy and thus has four reporting segments subject to SFAS No. 131. Document Management provides a wide array of printed documents and selected services that facilitate the recording, storage, and communication of business information. Document Management consists principally of business forms, PC-based printing svsiems, secure documents, form/label combinations, digital print networks, print-on-demand and document related equipment. Document Management consists of six business units that have been aggregated for segment reporting purposes. Fulfillment Services is focused on outsourcing services. Document outsourcing is the delegation to a supplier of the creation, production, processing, printing, mailing or electronic transmission, or fulfillment of any type of printed or electronic documents. Fulfillment Services produces personalized statements, customized kits, warehousing and kitting operations, retail cards, commercial printing and print and mail type services. Label Solutions provides products and services relating to flexographic, screen and offset printed labels, bar code/automatic ID systems, pressure sensitive labels, compliance labels and variable image produces. Label Solutions produces distribution labels, screen-printed labels and other pressure sensitive labels. SMARTworks.com operates as an Application Service Provider (ASP) of its own Web application. Operating as an ASP, SMARTworks.com offers an end-to-end solution for procuring, managing and significantly reducing the overall cost of paper and electronic documents across all broad print categories.
     The segments are managed and reported internally primarily by the type of products they produce and the markets they serve. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates segment performance based on operating income. No single customer provided more than 10% of the Company's revenue in 2001.
     Due to the Company's reporting requirements under SFAS No. 131, the Company is required to restate prior period information. The Company did not classify assets by segments prior to the reorganization that commenced during 2001. As a result, it is not practicable to discern asset related information and depreciation expense for 2000 and 1999 for the designated segments. Accordingly, 2000 and 1999 realigned asset related information and depreciation expense amounts have not been presented. The SMARTworks.com subsidiary began operations during the third quarter of 2000.

     Information about the Company's operations by segment is as follows:

Document Management   Fulfillment Services   Label Solutions   SMART- works.com   Total Revenue from external customers   2001   $ 928,045   $ 120,811   $ 138,704   $ 37   $ 1,187,597     2000   1,062,182   117,744   173,833   ---   1,355,759     1999   1,120,523   101,935   171,528   ---   1,393,986 Intersegment revenues   2001   $ ---   $ ---   $ ---   $ 7,805   $ 7,805     2000   ---   ---   ---   3,352   3,352 Operating income (loss)   2001   $ 57,439   $ 533   $ 7,413   $(10,961)   $ 54,424     2000   71,065   1,354   6,494   (4,264)   74,649     1999   98,759   618   11,177   ---   110,554 Identifiable assets   2001   $ 373,794   $ 46,096   $ 51,317   $ 6,367   $ 477,574 Fixed asset additions   2001   $ 14,842   $ 2,917   $ 1,163   $ 3,038   $ 21,960 Depreciation   2001   $ 27,009   $ 4,284   $ 3,166   $ 1,098   $ 35,557

     Reconciling information between reportable segments and the Company's consolidated financial statements is as follows:

2001 2000 1999   REVENUES FROM EXTERNAL CUSTOMERS $1,187,597 $1, 353,759 $1,393,986        Corporate and unallocated 8,838 --- ---             Total consolidaced revenues $1,196,435 $1,353,759 $1,393,986   OPERATING INCOME (LOSS) $ 54,424 $ 74,649 $ 110,554        Other deductions (3,200) (3,446) (1)        LIFO adjustment (431) (5,562) (5,035)        Goodwill amortization --- (4,010) (4,009)        Asset impairment (41,512) (73,746) ---        Restructuring (84,014) (24,633) ---        Total other expense (9,584) (9,941) (11,972)             Income (loss) from continuing operations                before income taxes $ (84,317) $ (46,689) $ 89,537   IDENTIFIABLE ASSETS $ 477,574            Corporate and unallocated 360,209                 Total consolidated assets $ 837,783       FIXED ASSET ADDITIONS $ 21,960            Corporate and unallocated 3,687                 Total consolidated fixed asset additions $ 25,647       DEPRECIATION $ 35,557            Corporate and unallocated 9,862                 Toral consolidated depreciation $ 45,419