SOURCE: Bowne & Co., Inc.

March 14, 2007 17:35 ET

Bowne & Co. Reports 2006 Results

Revenue Up 25%, Operating Income Increases 59%, Income From Continuing Operations Increases $12.2 Million to $0.38 per Share

NEW YORK, NY -- (MARKET WIRE) -- March 14, 2007 -- Bowne & Co., Inc. (NYSE: BNE), a leader in financial, marketing and business communications services, today announced strong operating results for 2006, representing significant improvement over 2005 results.

For the year ended December 31, 2006, revenue was $832.2 million, up 24.8% from $666.9 million in 2005. Income from continuing operations was $12.1 million, as compared to a $0.1 million loss in 2005, with resulting diluted earnings per share of $0.38 as compared to breakeven in 2005.

For the fourth quarter, revenue increased 21.7% to $191.1 million from $157.0 million, and diluted earnings per share from continuing operations improved to breakeven from a loss of $0.21 in the fourth quarter of 2005.

Full-year 2006 pro forma earnings of $21.3 million increased 80%, or $9.5 million, as compared to 2005, resulting in diluted earnings per share of $0.67 as compared to $0.34 in 2005, nearly double. Fourth quarter pro forma diluted earnings per share from continuing operations were $0.05 in both 2006 and 2005. (See Pro Forma Supplemental Income Information attached hereto for a reconciliation of these non-GAAP financial measures to our Condensed Consolidated Statements of Operations.)

"These results in 2006 reflect a year of significant accomplishment for Bowne -- a year of strong operating results and tangible, sustainable progress in reshaping the company to further strengthen our leadership position," said Bowne Chairman, President and Chief Executive Officer David J. Shea. "Our clients' needs have evolved, and so have we. Over the past few years, we've introduced new technology based products and services, such as Bowne Virtual Dataroom ™, Pure Compliance™, FundAlign™, 8-K Express™ and XBRL expertise, to enable our clients to more effectively communicate with their shareholders and clients. To better reflect the full range of our value-added services, we are re-branding our Financial Print business as Financial Communications."

Mr. Shea continued, "Our expectation for growth in 2007 is driven by increasing our transactional market share, continuing the growth of our non-transactional financial communications revenue base, and improving the performance of our marketing and business communications segment."

Financial Communications: For the 2006 full-year, revenue increased 13% to $704.4 million, segment profit of $102.1 million increased 16.6%, or $14.5 million, and segment profit margin increased to 14.5% compared to 14.0% in 2005. Transactional revenue increased 18%, compliance reporting revenue increased 10%, due in part to new SEC regulations and more extensive disclosure requirements, and commercial revenue increased 44%. Revenue from the international markets increased 40% for the year ended December 31, 2006, as compared to 2005.

Fourth quarter revenue increased to $160.0 million as compared to $146.7 million for the same period last year, a 9.0% increase. Transactional revenue increased 8.3% primarily due to a healthy capital market. Segment profit for the quarter of $17.6 million increased 10.6%, or $1.7 million, compared to 2005.

Marketing & Business Communications (MBC): The 2006 results include the January 2006 acquisition of the Marketing and Business Communications division of Vestcom International (Vestcom). MBC reported revenue of $127.8 and $31.1 million for the full-year and fourth quarter, respectively. For the full-year, MBC segment loss improved $6.5 million to a loss of $0.6 million as compared to a loss of $7.1 million in 2005. Segment profit for the fourth quarter was $0.7 million compared to a loss of $2.0 million in the fourth quarter of 2005. The operating results include certain non-recurring operating costs incurred during the integration of the aforementioned acquisition.

Discontinued Operations: The 2006 full-year loss, net of tax, of $13.8 million includes: a $2.3 million loss on the sale of DecisionQuest in September 2006, a $5.1 million charge for the costs associated with exiting the leased facilities of DecisionQuest and Bowne Business Solutions, a $6.1 million gain on the sale of CaseSoft, and a $10.6 million goodwill impairment charge related to DecisionQuest. The 2006 fourth quarter income of $2.1 million, primarily the result of an increase in the estimated tax benefit from the DecisionQuest sale, compares to a loss of $0.8 million in the 2005 fourth quarter.

Balance Sheet and Cash Flow: For the year ended December 31, 2006, cash and marketable securities declined $101.7 million. This decline includes the funding of $68.6 million in stock repurchases, $32.9 million for acquisitions and $28.7 million in capital expenditures (including $5.6 million related to the integration of the Vestcom acquisition, $3.3 million related to the relocation of our London facility and $2.7 million related to our 55 Water Street facility).

Accounts receivable increased approximately $32.6 million as compared to December 2005 due to higher revenue, the increase in the days sales outstanding, and partially due to the inclusion of accounts receivable related to theVestcom acquisition in 2006. Days sales outstanding increased to 72 days in December 2006 from 70 days in December 2005. Financial Communications work-in-process inventory was $18.7 million at December 31, 2006 compared to $21.2 million at December 31, 2005. The Company had no borrowings outstanding under its $150 million five-year senior, unsecured revolving credit facility as of December 31, 2006.

Share Repurchase Program: From December 2004, the inception of the Company's share repurchase program, through December 31, 2006, Bowne has spent $145.2 million to repurchase 9.8 million shares at an average price per share of $14.76. In 2006, the Company spent $68.6 million repurchasing 4.7 million shares at an average price per share of $14.60, of which, 1.0 million shares were purchased in the fourth quarter. As of March 9, 2007, approximately $42 million of its authorization remained for share repurchases.



Business Outlook

The Company notes that forward-looking statements of future performance in the following statements and certain statements made elsewhere in this release are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including demand for and acceptance of the Company's services, new technological developments, competition and general economic or market conditions, particularly in the domestic and international capital markets, and excludes the effect of potential dilution from the Company's Convertible Subordinated Debt and the impact from any future purchases under our share repurchase program. Except for the impact of the acquisition of St Ives Financial, which was completed in January 2007, the 2007 Outlook does not reflect any additional acquisitions.


                                2006 Actual            2007 Outlook (1)
                          -----------------------  -----------------------
Revenue:                  $         832.2 million  $  810 to $ 900 million
   Financial
    Communications        $         704.4 million  $  690 to $ 760 million
   Marketing & Business
    Communications        $      127.8 million (2) $  120 to $ 140 million
Segment Profit:
   Financial
    Communications        $         102.1 million  $   90 to $ 120 million
   Marketing & Business
    Communications        $         (0.6) million  $     3 to $ 10 million
Corporate/Other:
   Corporate expenses,
    net of other income   $          32.2 million  $    28 to $ 32 million
   Integration,
    restructuring and
    impairment expenses   $          14.1 million  $     7 to $ 10 million
Depreciation and
 amortization             $          25.9 million  $    26 to $ 28 million
Interest expense          $           5.5 million  $           5.4 million
Diluted E.P.S. from
 continuing operations    $                  0.38  $        0.45 to $ 1.05
Diluted E.P.S. from
 continuing
 operations-pro forma,
 (excluding integration,
 restructuring, and
 impairment charges)      $                  0.67  $        0.60 to $ 1.25
Diluted shares                    31.5 million (3)         29.3 million (3)
Capital expenditures      $          28.7 million  $ 22 to $ 25 million (4)


(1) Includes the results of the January 2007 acquisition of St Ives
    Financial.
(2) Includes approximately $3.0 million from Vestcom's legacy retail
    customers that have transferred back to Vestcom as part of our
    transition services agreement, and $2.8 million from customers
    that had notified Vestcom they were not going to renew contracts
    prior to MBC's acquisition. This revenue will not continue into 2007.
(3) Excludes the impact of the potential dilution from the Convertible
    Subordinated Debt (4,058,445 shares) and the impact of any future
    purchases under our share repurchase program. At March 1, 2007,
    28.0 million shares were outstanding. In addition, another 1.3
    million shares from the potential dilutive effect of stock options
    and deferred stock units is assumed.
(4) Includes non-recurring capital expenditures of approximately $6.3
    million of equipment the company had previously financed under a
    synthetic lease, which is being purchased in 2007, and $2.8 million
    of MBC integration capital expenditures.
Bowne & Co., Inc. will hold its earnings conference call to review its 2006 results on Thursday, March 15, 2007, at 11 a.m. Eastern Time. To join the Webcast, log on to http://www.bowne.com. To access the call via telephone, please dial (800) 910-5497 (domestic) or (973) 935-8450 (international), conference ID # 8431581.


                            BOWNE & CO., INC.
                                (NYSE: BNE)
              Condensed Consolidated Statements of Operations
                                (unaudited)


                                    For the Periods Ended December 31,
(in thousands, except per share ------------------------------------------
 information)                         Quarter             Year-to-Date
                                --------------------  --------------------
                                  2006       2005       2006       2005
                                ---------  ---------  ---------  ---------

Revenue                         $ 191,060  $ 157,045  $ 832,215  $ 666,934
Expenses:
  Cost of revenue                (124,837)  (102,246)  (542,696)  (428,411)
  Selling and administrative      (57,308)   (47,639)  (223,635)  (186,774)
  Depreciation                     (6,582)    (7,086)   (25,379)   (25,625)
  Amortization                       (124)         -       (534)         -
  Restructuring, integration
   and asset impairment
   charges (1)                     (1,994)    (5,660)   (14,097)   (10,410)
  Purchased in-process research
   and development                      -          -       (958)         -
                                ---------  ---------  ---------  ---------
                                 (190,845)  (162,631)  (807,299)  (651,220)
                                ---------  ---------  ---------  ---------
Operating income (loss)               215     (5,586)    24,916     15,714
  Interest expense                 (1,396)    (1,366)    (5,477)    (5,154)
  Loss on sale of marketable
   securities                           -     (7,890)         -     (7,890)
  Other income, net                   872      1,074      3,341      1,537
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations before income taxes      (309)   (13,768)    22,780      4,207
Income tax benefit (expense)          451      6,675    (10,701)    (4,330)
                                ---------  ---------  ---------  ---------
Income (loss) from continuing
 operations                           142     (7,093)    12,079       (123)
Discontinued operations (see
 note):
Income (loss) from discontinued
 operations, net of tax             2,092       (815)   (13,847)      (481)
                                ---------  ---------  ---------  ---------
Net income (loss)               $   2,234  $  (7,908) $  (1,768) $    (604)
                                =========  =========  =========  =========

Earnings (loss) per share from
 continuing operations:
  Basic                         $    0.00  $   (0.21) $    0.39  $    0.00
  Diluted                       $    0.00  $   (0.21) $    0.38  $    0.00

Earnings (loss) per share from
 discontinued operations:
  Basic                         $    0.08  $   (0.03) $   (0.45) $   (0.02)
  Diluted                       $    0.07  $   (0.03) $   (0.44) $   (0.02)

Total earnings (loss) per
 share:
  Basic                         $    0.08  $   (0.24) $   (0.06) $   (0.02)
  Diluted                       $    0.07  $   (0.24) $   (0.06) $   (0.02)

Weighted-average shares
 outstanding:
  Basic                            29,487     33,144     31,143     34,251
  Diluted                          29,954     33,593     31,451     34,699

Dividends per share             $   0.055  $   0.055  $    0.22  $    0.22


Notes: The Condensed Consolidated Statements of Operations for the prior
       periods have been reclassified to reflect the results of the
       following business units as discontinued operations: DecisionQuest
       Discovery Services (which was sold in January 2006), DecisionQuest
       (which was sold in September 2006) and JFS (which is held for sale).

(1)    Included in 2006 are charges related to the integration of the
       Marketing and Business Communications division of Vestcom
       International into MBC, totalling $1.3 million for the quarter and
       $10.1 million year-to-date.






                            BOWNE & CO., INC.
                                (NYSE: BNE)
                  Condensed Consolidated Balance Sheets


                                                    Dec. 31,     Dec. 31,
(in thousands)                                        2006         2005
                                                  ------------ ------------

Assets
Cash and cash equivalents                         $     42,986 $     96,684
Marketable securities                                   42,628       90,675
Accounts receivable, net                               153,016      120,450
Inventories                                             25,591       25,957
Prepaid expenses and other current assets               33,901       28,414
Assets held for sale (1)                                 2,796        7,815
                                                  ------------ ------------
      Total current assets                             300,918      369,995
                                                  ------------ ------------

Property, plant and equipment, net                     132,767      106,908
Goodwill and other intangibles, net                     35,015       24,550
Other assets                                            46,701       28,238
Assets held for sale, non current (1)                        -       33,557
                                                  ------------ ------------
      Total assets                                $    515,401 $    563,248
                                                  ============ ============

Liabilities and Stockholders' Equity
Current portion of long-term debt and short-term
 borrowings                                       $      1,017 $        252
Accounts payable and accrued liabilities               126,827      135,431
Liabilities held for sale (1)                              683        3,417
                                                  ------------ ------------
      Total current liabilities                        128,527      139,100
                                                  ------------ ------------

Long-term debt                                          76,492       75,528
Deferred employee compensation                          50,154       32,771
Deferred rent and other                                 23,480        3,423
Liabilities held for sale, non current (1)                   -          653
Stockholders' equity                                   236,748      311,773
                                                  ------------ ------------
    Total liabilities and stockholders' equity    $    515,401 $    563,248
                                                  ============ ============



(1) Includes the assets and liabilities of JFS in December 2006 and
    December 2005 and the assets and liabilities of DecisionQuest
    Discovery Services and DecisionQuest in December 2005.




                              BOWNE & CO., INC.
                                (NYSE: BNE)
              Condensed Consolidated Statements of Cash Flows
                                (unaudited)

                                                    Year Ended December 31,
                                                    ----------------------
(in thousands)                                         2006        2005
                                                    ----------  ----------

Cash flows from operating activities:
   Net loss                                         $   (1,768) $     (604)
   Net loss from discontinued operations                13,847         481
   Depreciation and amortization                        25,913      25,625
   Purchased in-process research and development           958           -
   Asset impairment charges                              2,550       3,523
   Changes in assets and liabilities, net of
    acquisitions, discontinued operations and
    certain non-cash transactions                      (35,828)    (11,128)
   Net cash used in operating activities of
    discontinued operations                             (2,098)        (91)
                                                    ----------  ----------
Net cash provided by operating activities                3,574      17,806
                                                    ----------  ----------

Cash flows from investing activities:
   Proceeds from the sale of subsidiaries                6,738     108,910
   Purchase of property, plant and equipment           (28,668)    (39,724)
   Purchase of marketable securities                   (61,100)   (154,272)
   Proceeds from the sale of marketable securities
    and other                                          109,562     139,591
   Acquisitions, net of cash acquired                  (32,923)          -
   Net cash provided by (used in) investing
    activities of discontinued operations               12,519      (3,335)
                                                    ----------  ----------
Net cash provided by investing activities                6,128      51,170
                                                    ----------  ----------

Cash flows from financing activities:
   Payment of debt                                        (821)    (34,100)
   Proceeds from borrowings                                  -      33,503
   Proceeds from stock options exercised                12,533       9,868
   Payment of dividends                                 (6,680)     (7,386)
   Purchase of treasury stock                          (68,558)    (33,970)
   Other                                                    71           -
   Net cash used in financing activities of
    discontinued operations                               (100)     (1,274)
                                                    ----------  ----------
Net cash used in financing activities                  (63,555)    (33,359)
                                                    ----------  ----------

Net (decrease) increase in cash and cash
 equivalents                                        $  (53,853) $   35,617
Cash and Cash Equivalents--beginning of period          96,839      61,222
                                                    ----------  ----------
Cash and Cash Equivalents--end of period            $   42,986  $   96,839
                                                    ==========  ==========

Cash and cash equivalents at the beginning of 2006 and 2005 includes $155
and $9,918, respectively, related to discontinued operations.




                             BOWNE & CO., INC.
                                (NYSE: BNE)
                            Segment Information
                                (unaudited)

During the fourth quarter of 2006, the Company changed the way it reports
and evaluates segment information. The Company had previously reported
administrative, legal, finance and other support services which are not
directly attributable to the segments in the category "Corporate/Other."
The Company now also includes in the "Corporate/Other" category certain
other expenses (such as stock-based compensation and supplemental
retirement plan expenses) that had previously been allocated to the
individual operating segments. This change in presentation more accurately
reflects the way management evaluates the operating performance of its
segments. The Company's previous years' segment information has been
restated to conform to the current year's presentation.

Information regarding the operations of each business segment is set forth
below. Performance is evaluated based on several factors, of which, the
primary financial measure is segment profit. Segment profit is defined as
gross margin (revenue less cost of revenue) less selling and administrative
expenses. Segment performance is evaluated exclusive of interest, income
taxes, depreciation, amortization, certain shared corporate expenses,
restructuring, integration and asset impairment charges, purchased
in-process research and development, other expenses and income. Therefore,
this information is presented in order to reconcile to income (loss) from
continuing operations before income taxes.


                                      For Periods Ended December 31,
                                ------------------------------------------
(in thousands)                        Quarter             Year-to-Date
                                --------------------  --------------------
                                  2006       2005       2006       2005
                                ---------  ---------  ---------  ---------
Revenues:
Financial Communications        $ 159,984  $ 146,740  $ 704,422  $ 625,128
Marketing & Business
 Communications                    31,076     10,305    127,793     41,806
                                ---------  ---------  ---------  ---------
                                $ 191,060  $ 157,045  $ 832,215  $ 666,934
                                =========  =========  =========  =========
Segment profit:
Financial Communications           17,629     15,934    102,064     87,559
Marketing & Business
 Communications                       749     (1,966)      (640)    (7,082)
Corporate/Other (see detail
 below)                           (10,585)   (19,284)   (47,254)   (45,491)
                                ---------  ---------  ---------  ---------
                                    7,793     (5,316)    54,170     34,986
                                ---------  ---------  ---------  ---------

Depreciation                       (6,582)    (7,086)   (25,379)   (25,625)
Amortization                         (124)         -       (534)         -
Interest expense                   (1,396)    (1,366)    (5,477)    (5,154)
                                ---------  ---------  ---------  ---------
Income (loss) from continuing
 operations before income taxes $    (309) $ (13,768) $  22,780  $   4,207
                                =========  =========  =========  =========

Corporate/Other (by type):
Shared corporate expenses and
 other costs not directly
 attributable to the segments(1)$  (9,463) $  (6,808) $ (35,540) $ (28,728)
Other income (expense), net           872      1,074      3,341      1,537
Restructuring charges,
 integration costs and asset
 impairment charges                (1,994)    (5,660)   (14,097)   (10,410)
Loss on sale of marketable
 securities                             -     (7,890)         -     (7,890)
Purchased in-process research
 and development                        -          -       (958)         -
                                ---------  ---------  ---------  ---------
   Total                        $ (10,585) $ (19,284) $ (47,254) $ (45,491)
                                =========  =========  =========  =========


(1) Shared corporate expenses increased in the 2006 fourth quarter and
    year-to-date as compared to 2005 due primarily to increased incentive
    compensation, facilities expenses and stock-based compensation
    expenses, including $0.3 million and $1.1 million of stock option
    expense recognized in the fourth quarter and full-year, respectively,
    related to the adoption of Statement of Financial Accounting Standards
    No.123(R).




                            BOWNE & CO., INC.
                               (NYSE: BNE)
               PRO FORMA SUPPLEMENTAL INCOME INFORMATION
       Reconciliation to Condensed Consolidated Statements of Operations
                               (unaudited)

Pro forma supplemental income information, which is not prepared in
accordance with generally accepted accounting principles, excludes
restructuring, integration and asset impairment charges and purchased
in-process research and development. The Company believes that presentation
of this supplemental information is useful to investors to evaluate
performance in comparison to prior year's results. This pro forma
supplemental information is an alternative to, and not a replacement
measure of, operating performance as determined in accordance with
generally accepted accounting principles.



                                      For the Periods Ended December 31,
                                    ---------------------------------------
                                          Quarter          Year-to-Date
                                    ------------------- -------------------
(in thousands, except per share
 information)                         2006      2005      2006      2005
                                    --------- --------  --------- --------

Net Income (loss) from continuing
 operations                         $     142 $ (7,093) $  12,079 $   (123)
Add back:
Restructuring, integration and
 asset impairment charges, net of
 pro forma tax effect (1)               1,282    3,873      8,663    6,933
Purchased in-process research and
 development, net of pro forma tax
 effect (2)                                 -        -        584        -
Loss on sale of marketable
 securities, net of tax (3)                 -    5,050          -    5,050
                                    --------- --------  --------- --------
Income (loss) from continuing
 operations, pro forma              $   1,424 $  1,830  $  21,326 $ 11,860
                                    ========= ========  ========= ========

Earnings (loss) per share from
 continuing operations:
     Basic                          $    0.00 $  (0.21) $    0.39 $   0.00
     Diluted                        $    0.00 $  (0.21) $    0.38 $   0.00
Earnings per share from continuing
 operations--pro forma:
     Basic                          $    0.05 $   0.06  $    0.68 $   0.35
     Diluted  (4)                   $    0.05 $   0.05  $    0.67 $   0.34
Weighted-average shares
 outstanding:
     Basic                             29,487   33,144     31,143   34,251
     Diluted                           29,954   33,593     31,451   34,699
     Diluted--pro forma  (4)           29,954   33,593     35,509   34,699


(1) In 2006, restructuring, integration and asset impairment charges of
    $2.0 million for the quarter and $14.1 million year-to-date are net of
    tax benefits of $0.7 and $5.4 million, respectively.  In 2005, the
    restructuring, integration and asset impairment charges of $5.7 million
    for the quarter and $10.4 million year-to-date, are net of tax benefits
    of $1.8 million and $3.5 million, respectively.
(2) Purchased in-process research and development of $1.0 million is net of
    tax benefit of $0.4 million.  These costs are associated with the
    acquisition of certain assets of PLUM Computer Consulting, Inc. in the
    second quarter of 2006.
(3) Loss on sale of Lionbridge shares of $7.9 million, net of taxes of $2.8
    million.
(4) The 2006 year-to-date weighted-average diluted shares outstanding
    includes the potential dilution from the Convertible Subordinated Debt
    of 4,058,445 shares. In addition, net income used in the calculation of
    pro forma earnings (loss) from continuing operations has been adjusted
    to reflect the addition of interest expense, net of tax, related to the
    Convertible Debt.  The potential dilution of the convertible shares is
    not reflected in the other periods since the effect would be
    anti-dilutive.


                              BOWNE & CO., INC.
                                 (NYSE: BNE)
                          Supplemental Information
                                 (unaudited)


During the fourth quarter of 2006, the Company changed the way it reports
and evaluates segment information. The Company had previously reported
administrative, legal, finance and other support services which are not
directly attributable to the segments in the category "Corporate/Other."
The Company now also includes in the "Corporate/Other" category certain
other expenses (such as stock-based compensation and supplemental
retirement plan expenses) that had previously been allocated to the
individual operating segments. The Company's previous years' segment
information has been restated to conform to the current year's
presentation.


                                             2006
                     =====================================================
                                              Quarter Ended
                                ------------------------------------------
(in thousands)         Year      Dec. 31   Sept. 30    Jun. 30    Mar. 31
                     ---------  ---------  ---------  ---------  ---------
Revenues:
Financial
 Communications      $ 704,422  $ 159,984  $ 148,043  $ 229,923  $ 166,472
Marketing and
 Business
 Communications        127,793     31,076     27,067     30,346     39,304
                     ---------  ---------  ---------  ---------  ---------
                     $ 832,215  $ 191,060  $ 175,110  $ 260,269  $ 205,776
                     =========  =========  =========  =========  =========
Segment profit:
Financial
 Communications        102,064     17,629     17,731     45,367     21,337
Marketing and
 Business
 Communications           (640)       749     (2,051)    (1,860)     2,522
Corporate/Other (see
 detail below)         (47,254)   (10,585)    (9,186)   (15,408)   (12,075)
                     ---------  ---------  ---------  ---------  ---------
                        54,170      7,793      6,494     28,099     11,784
                     ---------  ---------  ---------  ---------  ---------
Depreciation           (25,379)    (6,582)    (5,628)    (6,303)    (6,866)
Amortization              (534)      (124)      (139)      (135)      (136)
Interest                (5,477)    (1,396)    (1,336)    (1,451)    (1,294)
                     ---------  ---------  ---------  ---------  ---------

Income (loss) from
 continuing
 operations before
 income taxes        $  22,780  $    (309) $    (609) $  20,210  $   3,488
                     =========  =========  =========  =========  =========

Corporate/Other by
 (type):
Shared corporate
 expenses            $ (35,540) $  (9,463) $  (7,787) $  (8,909) $  (9,381)
Other income
 (expense), net          3,341        872        465        647      1,357
Loss on sale of
 marketable
 securities                  -          -          -          -          -
Purchased in-process
 R&D                      (958)         -         43     (1,001)         -
Restructuring
 charges,
 integration costs
 and asset
 impairment charges    (14,097)    (1,994)    (1,907)    (6,145)    (4,051)
                     ---------  ---------  ---------  ---------  ---------
Total                $ (47,254) $ (10,585) $  (9,186) $ (15,408) $ (12,075)
                     =========  =========  =========  =========  =========



                                             2005
                     =====================================================
                                              Quarter Ended
                                ------------------------------------------
(in thousands)         Year      Dec. 31   Sept. 30    Jun. 30    Mar. 31
                     ---------  ---------  ---------  ---------  ---------
Revenues:
Financial
 Communications      $ 625,128  $ 146,740  $ 143,202  $ 188,439  $ 146,747
Marketing and
 Business
 Communications         41,806     10,305      9,135      9,190     13,176
                     ---------  ---------  ---------  ---------  ---------
                     $ 666,934  $ 157,045  $ 152,337  $ 197,629  $ 159,923
                     =========  =========  =========  =========  =========
Segment profit:
Financial
 Communications         87,559     15,934     13,787     33,685     24,153
Marketing and
 Business
 Communications         (7,082)    (1,966)    (2,616)    (2,002)      (498)
Corporate/Other (see
 detail below)         (45,491)   (19,284)    (7,729)    (9,930)    (8,548)
                     ---------  ---------  ---------  ---------  ---------
                        34,986     (5,316)     3,442     21,753     15,107
                     ---------  ---------  ---------  ---------  ---------
Depreciation           (25,625)    (7,086)    (5,746)    (6,408)    (6,385)
Amortization                 -          -          -          -          -
Interest                (5,154)    (1,366)    (1,198)    (1,307)    (1,283)
                     ---------  ---------  ---------  ---------  ---------

Income (loss) from
 continuing
 operations before
 income taxes        $   4,207  $ (13,768) $  (3,502) $  14,038  $   7,439
                     =========  =========  =========  =========  =========

Corporate/Other by
 (type):
Shared corporate
 expenses            $ (28,728) $  (6,808) $  (5,959) $  (7,911) $  (8,050)
Other income
 (expense), net          1,537      1,074       (177)      (487)     1,127
Loss on sale of
 marketable
 securities             (7,890)    (7,890)         -          -          -
Purchased in-process
 R&D                         -          -          -          -          -
Restructuring
 charges,
 integration costs
 and asset
 impairment charges    (10,410)    (5,660)    (1,593)    (1,532)    (1,625)
                     ---------  ---------  ---------  ---------  ---------
Total                $ (45,491) $ (19,284) $  (7,729) $  (9,930) $  (8,548)
                     =========  =========  =========  =========  =========
About Bowne & Co., Inc.

Bowne & Co., Inc. (NYSE: BNE) provides financial, marketing and business communications services around the world. Dealmakers rely on Bowne to handle critical transactional communications with speed and accuracy. Compliance professionals turn to Bowne to prepare and file regulatory and shareholder communications online and in print. Marketers look to Bowne to create and distribute customized, one-to-one communications on demand. With 3,200 employees in 60 offices around the globe, Bowne has met the ever-changing demands of its clients for more than 230 years. For more information, please visit www.bowne.com.

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