SOURCE: Schawk, Inc.

Schawk, Inc.

May 05, 2011 14:00 ET

Global Leaders Enter Into Supply Agreement for North America

Schawk and American Yuncheng Gravure Cylinder, Inc. Reach Formal Agreement to Provide World Class Efficiency in Cylinder Production and Delivery Within North America

DES PLAINES, IL--(Marketwire - May 5, 2011) - Schawk, Inc. (NYSE: SGK), a leading provider of brand development and deployment services, enabling companies of all sizes to connect their brands with consumers, announced today it has executed a formal supply agreement with American Yuncheng Gravure Cylinder, Inc. (AYGCI) located in Spartanburg, South Carolina. AYGCI is the U.S. subsidiary of Yuncheng Plate Making Group Co, Ltd., the world's largest manufacturer of gravure printing cylinders.

This strategic relationship and supplier agreement is expected to allow Schawk to expand its current gravure cylinder engraving capabilities in the North American region, thereby further enhancing its portfolio of brand development and deployment services.

Schawk's Chief Operating Officer, A. Alex Sarkisian, commented, "By forming an alliance with American Yuncheng, we are better-positioned to deliver expanded world-class gravure cylinder engraving services to our clients in North America while continuing to focus our internal capital investments into technology and leading edge modes of communication both domestically and internationally, particularly in developing and emerging regions."

Mr. Sarkisian added, "We have been doing business in Asia since the late 1990s, and as part of the services we routinely perform for our clients, we were familiar with the high quality products and services provided by the Yuncheng Group. We look forward to doing business with American Yuncheng in North America and believe that this relationship will be beneficial not only for Schawk but for the overall market as well."

"We are pleased to have entered into this agreement with Schawk," said Wenchun Li, CEO of American Yuncheng. "Schawk is well known in its industry and has a reputation as a world-class provider of brand development and deployment services globally. I believe that combining Schawk's capabilities and excellence and Yuncheng's world- class quality and efficiency will further elevate the quality of service and products delivered to the North American brand imaging market."

About Schawk, Inc.
Schawk, Inc. is a leading provider of brand development and deployment services, enabling companies of all sizes to connect their brands with consumers. With a global footprint of operations in 18 countries, Schawk helps companies create compelling and consistent brand experiences by providing integrated strategic, creative and executional services across brand touchpoints. Founded in 1953, Schawk is trusted by many of the world's leading organizations to help them achieve global brand consistency. For more information about Schawk, visit http://www.schawk.com.

About American Yuncheng Gravure Cylinder, Inc.
American Yuncheng Gravure Cylinder, Inc., one of the world's largest manufacturers of gravure printing cylinders, was founded in 2007 in Spartanburg, South Carolina. This state-of-the art facility manufactures engraved printing cylinders for the packaging and decorative finishes industries. American Yuncheng Gravure Cylinder offers a wealth of experience and successes from its operations in Asia, Europe and Mexico, as well as the most advanced engraving technology. With more than 20 years of international gravure cylinder manufacturing experience and the most advanced automatic equipment available today, American Yuncheng Gravure Cylinder is committed to giving its customers a distinct competitive advantage and helping them grow their businesses and profits. For more information, visit http://www.yunchengusa.com/.

About Yuncheng Plate Making Group Co., Ltd
The Yuncheng Plate Making Group Co., Ltd. (YCPMG) has been dedicated to the research and development of gravure printing cylinders for more than 25 years. The company was established in 1984, in Shanxi Province of China, and originally offered only photo engraving cylinders. Later, it became the first Chinese company to offer non-film engraving cylinders in the industry. In the 1980s, the companyexpanded its production capabilities to include both regular and special gravure printing cylinders for packaging, decorative finishes, textiles, and embossing applications. With over 500 of the most advanced electronic and laser engraving production lines and more than 90 plants around the world, we are the world's largest manufacturer of gravure printing cylinders. YCMPG has subsidiary headquarters in Qingdao, Dongguan, and Shanghai, China. The Qingdao office also oversees YCMPG's international business in America, Spain and Japan. For more information, visit http://www.yunchengusa.com/index.htm.

Safe Harbor Statement
Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements are made based upon current expectations and beliefs that are subject to risk and uncertainty. Actual results may differ materially from those contained in the forward-looking statements because of factors, such as, among other things, Schawk's ability to successfully realize the anticipated benefits of its strategic alliances; the level of demand for its services, and its gravure cylinder engraving services in particular; higher than expected costs, or unanticipated difficulties associated with, implementing the supply agreement disclosed herein; Schawk's ability to effectively respond to competition or to take advantage of business opportunities; the strength of the United States economy in general and, specifically, market conditions for the consumer products industry; Schawk's continued ability to identify and exploit industry trends and exploit technological advances in the imaging industry; and other factors detailed in Schawk's filings with the Securities and Exchange Commission.

The discussion of the Company's business within this press release should be read and considered in context of the Company's most recent annual Form 10-K filing with the Securities and Exchange Commission.

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