Schawk Announces 2010 Fourth-Quarter and Full-Year Results

DES PLAINES, IL--(Marketwire - March 9, 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, reported fourth-quarter and full-year 2010 results. Net income in the fourth quarter of 2010 was $6.3 million, or $0.24 per diluted share, versus $3.7 million, or $0.15 per diluted share, in the fourth quarter of 2009. Net income for the full year of 2010 was $32.4 million, or $1.25 per diluted share, compared to $19.5 million, or $0.78 per diluted share, for the comparable prior-year period. Net income and EPS for the full year were record highs for the Company.

Net income for the full year of 2009 was positively impacted by the receipt of $9.2 million in cash as part of an indemnity claim settlement in connection with the Company's 2005 acquisition of Seven Worldwide Holdings, Inc., of which $5.0 million was reported as income. The favorable after-tax impact was $0.20 per share for the period ended December 31, 2009. On a non-GAAP basis, adjusting for financial impacts relating to the indemnity claim settlement and certain other items as further detailed in this release, 2010 full-year Adjusted net income was $31.1 million, or $1.20 per diluted share, compared to $23.1 million, or $0.93 per diluted share, during the prior-year period, on a comparable basis.

President and Chief Executive Officer David A. Schawk commented, "I am very pleased with our record earnings for 2010. Our performance reflects the continued expansion of our brand development and deployment activities and focus on utilizing our global capacity more efficiently. In addition, we experienced growth during 2010 in our largest client channel, consumer packaged goods, reflecting their increased product innovation activity. The increase in overall revenue coupled with our continued focus on global capacity management contributed to an approximate 66 percent increase in our net income for 2010."

Mr. Schawk added, "Our continued strong cash flow during the year has led to further debt reduction and a solid cash position at year end, thereby positioning us well to invest in our business and future opportunities to the extent they arise. Furthermore, our improved operating results and balance sheet enabled us to double our quarterly dividend to eight cents during the fourth quarter of 2010, which further underscores our confidence in the business and its future growth."

Mr. Schawk concluded, "We also expanded our digital marketing and creative capabilities through the acquisitions of Real Branding and Untitled London Limited during 2010. These acquisitions reflect our continued commitment to strengthening our overall portfolio of brand development and deployment services that we offer to our clients as they expand their ways of connecting with consumers. Overall, given some continuing uncertainties within the global economy, I am both excited and proud of what we accomplished during 2010."

Consolidated Results for the Year Ended December 31, 2010

Consolidated net sales in 2010 were $460.6 million compared to $452.4 million in the same period of 2009, an increase of approximately $8.2 million, or 1.8 percent. Year-over-year sales were positively impacted by changes in foreign currency translation rates of approximately $5.2 million, as the U.S. dollar decreased in value relative to the local currencies of certain of the Company's non-U.S. subsidiaries.

Consumer packaged goods (CPG) accounts sales during the full year of 2010 were $329.0 million, or 71.4 percent of total net sales, compared to $318.7 million in the same period of 2009, an increase of 3.2 percent, reflecting increased product and brand activity by the Company's clients. Advertising and retail accounts sales in 2010 were $88.4 million, or 19.2 percent of total sales, a decrease of 1.5 percent, from $89.8 million during the full year of 2009, primarily driven by the loss of a non-core retail client. Entertainment accounts sales for the full year of 2010 of $29.1 million, or 6.3 percent of total sales, decreased 11.3 percent, from $32.8 million in the same period of 2009, driven by continued declines in promotional activity.

Gross profit was $178.6 million during 2010, an increase of $7.5 million from the same period of 2009. Full-year 2010 gross profit as a percentage of sales increased to 38.8 percent from 37.8 percent in the prior-year period. The full-year improvement in gross profit percent was largely driven by the improved operating leverage resulting from higher sales and certain cost-reduction actions enacted by the Company during 2010.

Selling, general and administrative (SG&A) expenses declined approximately $6.9 million to $124.2 million during 2010 from $131.1 million in 2009. The decline in SG&A expenses year over year was primarily driven by certain cost-reduction activities implemented in 2009 and 2010 partially offset by approximately $1.6 million of business and systems integration expenses related to the Company's information technology and business process improvement initiative.

The Company recorded a $2.3 million loss on foreign exchange exposures in the full year of 2010, compared to a gain of $0.5 million in the same period of 2009. The Company's foreign exchange gains or losses relate primarily to unhedged currency exposure from intercompany debt obligations of the Company's non-U.S. subsidiaries. Since foreign currency gains or losses primarily relate to intercompany financing activity, the economic impact to the Company is minimal, as these gains or losses are largely offset by corresponding losses or gains in accumulated comprehensive income, net, included in stockholders' equity.

Acquisition integration and restructuring expenses declined from $6.5 million during the full year of 2009 to $2.0 million during the same period of 2010. These charges relate to employee terminations and other associated costs which arose from the Company's continued focus on consolidating, reducing and re-aligning its work force and operations. The actions taken during 2010 are expected to result in annualized savings of approximately $10.9 million for 2011, with approximately $4.9 million realized during 2010.

In 2010, the Company reported asset impairment expenses of $0.7 million primarily related to certain equipment which sustained damage and was rendered inoperable at one of the Company's facilities. During 2009, the Company recorded $1.4 million of expense related to the impairment of long-lived assets. This expense was primarily related to a revaluation of a non-core vacant property owned by the Company.

Additionally, the Company recorded income of $0.2 million during 2010 reflecting its final adjustment of a multi-employer pension withdrawal liability. In 2008, the Company decided to terminate participation in a union supplemental retirement and disability fund, and recorded an initial $7.3 million liability related to its decision. In 2009, an additional $1.8 million of expense was recorded to reflect the Company's estimate of its liability at year end 2009. The Company currently expects the final settlement to be paid during the second quarter of 2011.

As previously mentioned, net income for the full year of 2009 was positively impacted by the receipt of $9.2 million in cash as part of an indemnity claim settlement in connection with the Company's 2005 acquisition of Seven Worldwide Holdings, Inc., of which $5.0 million was reported as income.

Schawk reported operating income of $49.6 million in 2010 compared to $35.8 million in 2009. The increase year over year was driven primarily by increases in gross profit and reduced SG&A expense partially offset by the non-recurring indemnity settlement income reported during 2009.

For the full year of 2010, the Company reported a tax expense of $10.0 million compared to $7.6 million during the same period in 2009. The increase in tax expense for 2010 compared to the prior year is primarily due to discrete period tax benefits and amended tax return adjustments recorded during 2009.

Net income in 2010 was $32.4 million, or $1.25 per diluted share, compared to $19.5 million, or $0.78 per diluted share, in 2009. Non-GAAP Adjusted net income was $31.1 million, or $1.20 per diluted share, for 2010 compared to $23.1 million, or $0.93 per diluted share, on a comparable basis for the prior-year period. Please refer to the tables at the end of this press release for a reconciliation of these non-GAAP measures.

Adjusted EBITDA and Management Adjusted EBITDA Performance

Adjusted EBITDA for full year 2010 was $69.8 million compared to $58.4 million for the comparable period of 2009. Management adjusted EBITDA for full year 2010 was $75.4 million compared to $65.4 million for the prior-year period. Please refer to the "Reconciliation of Non-GAAP Adjusted EBITDA and Management Adjusted EBITDA" table attached at the end of this press release for a reconciliation of these measures.

Conference Call

Schawk invites you to join its fourth-quarter and full-year 2010 earnings conference call on Thursday, March 10, 2011, at 9:00 a.m. Central time. To participate in the conference call, please dial 800-299-7635 or 617-786-2901 at least five minutes prior to the start time and ask for the Schawk, Inc. conference call, or on the Internet, go to http://phx.corporate-ir.net/playerlink.zhtml?c=82169&s=wm&e=3792464. If you are unavailable to participate on the live call, a replay will be available through March 17 at 5:00 p.m. Central time. To access the replay, dial 888-286-8010 or 617-801-6888, enter conference ID 73463854, and follow the prompts. The replay will also be available on the Internet for 30 days at the following address http://phx.corporate-ir.net/playerlink.zhtml?c=82169&s=wm&e=3792464.

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.

Non-GAAP Financial Measures

In addition to the presentation of Adjusted EBITDA and Management adjusted EBITDA in this release, the Company has presented certain other non-GAAP measures in the attachment entitled "Reconciliation of Non-GAAP measures to GAAP." Management believes that the presentation of non-GAAP measures provides investors with greater transparency and supplemental data relating to the Company's financial condition and results of operations and provides more consistent insight into the performance of the Company's core operations from period to period by showing the effects of certain non-operating items. These non-GAAP measures are reconciled to the closest GAAP measures on the schedules attached to this press release. The non-GAAP measures should not be viewed as alternatives to GAAP and may not be consistent with similar measures provided by other companies.

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 might differ materially from those contained in the forward-looking statements because of factors, such as, among other things, our ability to maintain an effective system of disclosure and internal controls and the discovery of any future control deficiencies or weaknesses, which may require substantial costs and resources to rectify; higher than expected costs, or unanticipated difficulties associated with, integrating acquired operations; higher than expected costs associated with compliance with legal and regulatory requirements; the strength of the United States economy in general and, specifically, market conditions for the consumer products industry; the level of demand for Schawk's services; changes in or weak consumer confidence and consumer spending; unfavorable foreign exchange rate fluctuations; loss of key management and operational personnel; our ability to implement our growth strategy, rebranding initiatives and cost reduction plans and to realize anticipated cost savings; the ability of the Company to comply with the financial covenants contained in its debt agreements and obtain waivers or amendments in the event of non-compliance with such covenants; the stability of state, federal and foreign tax laws; our continued ability to identify and exploit industry trends and exploit technological advances in the imaging industry; the stability of political conditions in foreign countries in which we have production capabilities; terrorist attacks and the U.S. response to such attacks; as well as other factors detailed in Schawk, Inc.'s filings with the Securities and Exchange Commission.

The discussion of the Company's financial results within this earnings 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.

For more information about Schawk, visit its website at http://www.schawk.com.

                              Schawk,  Inc.
                 Consolidated  Statements  of  Operations
                                (Unaudited)
              (In  thousands,  except  per  share  amounts)

                                 Three Months Ended
                                    December 31,      Increase (Decrease)
                                --------------------  --------------------
                                  2010       2009       Amount   Percent
                                ---------  ---------  ---------  ---------

Net sales                       $ 118,516  $ 121,906  $  (3,390)     (2.8)%
Cost of sales                      72,453     72,366         87       0.1 %
                                ---------  ---------  ---------
Gross profit                       46,063     49,540     (3,477)     (7.0)%

Selling, general and
 administrative expenses           31,954     32,805       (851)     (2.6)%
Acquisition integration and
 restructuring expenses             1,237      2,813     (1,576)    (56.0)%
Foreign exchange loss (gain)           62        547       (485)    (88.7)%
Impairment of long-lived assets         8      1,305     (1,297)    (99.4)%
Multiemployer pension
 withdrawal (income) expense         (700)     1,800     (2,500)       nm
                                ---------  ---------  ---------
Operating income                   13,502     10,270      3,232      31.5 %

Other income (expense)
  Interest income                       8        311       (303)    (97.4)%
  Interest expense                 (1,800)    (2,428)       628     (25.9)%
                                ---------  ---------  ---------

Income before income taxes         11,710      8,153      3,557      43.6 %
Income tax provision                5,388      4,434        954      21.5 %
                                ---------  ---------  ---------

Net income                      $   6,322  $   3,719  $   2,603      70.0 %
                                =========  =========  =========

Earnings per share:
  Basic                         $    0.25  $    0.15  $    0.10
  Diluted                       $    0.24  $    0.15  $    0.09

Weighted average number of
 common and common equivalent
 shares outstanding:
  Basic                            25,701     25,053
  Diluted                          26,156     25,308

nm = not meaningful




                               Schawk, Inc.
                  Consolidated Statements of Operations
                 (In thousands, except per share amounts)

                                Twelve Months Ended
                                    December 31,      Increase (Decrease)
                                --------------------  --------------------
                                  2010       2009       Amount    Percent
                                ---------  ---------  ---------  ---------

Net sales                       $ 460,626  $ 452,446  $   8,180       1.8 %
Cost of sales                     282,070    281,372        698       0.2 %
                                ---------  ---------  ---------
Gross profit                      178,556    171,074      7,482       4.4 %

Selling, general and
 administrative expenses          124,222    131,118     (6,896)     (5.3)%
Acquisition integration and
 restructuring expenses             1,974      6,459     (4,485)    (69.4)%
Foreign exchange loss (gain)        2,306       (542)     2,848        nm
Impairment of long-lived assets       688      1,441       (753)    (52.3)%
Multiemployer pension
 withdrawal (income) expense         (200)     1,800     (2,000)       nm
Indemnity settlement income            --     (4,986)     4,986        nm
                                ---------  ---------  ---------
Operating income                   49,566     35,784     13,782      38.5 %

Other income (expense)
  Interest income                      39        535       (496)    (92.7)%
  Interest expense                 (7,201)    (9,225)     2,024     (21.9)%
                                ---------  ---------  ---------

Income before income taxes         42,404     27,094     15,310      56.5 %
Income tax provision                9,984      7,597      2,387      31.4 %
                                ---------  ---------  ---------

Net income                      $  32,420  $  19,497  $  12,923      66.3 %
                                =========  =========  =========

Earnings per share:
  Basic                         $    1.27  $    0.78  $    0.49
  Diluted                       $    1.25  $    0.78  $    0.47

Weighted average number of
 common and common equivalent shares
 outstanding:
  Basic                            25,465     24,966
  Diluted                          25,883     25,001

nm = not meaningful





                               Schawk, Inc.
                        Consolidated Balance Sheets
                   (In thousands, except share amounts)



                                                December 31,  December 31,
                                                    2010          2009
                                                ------------  ------------
Assets
Current assets:
  Cash and cash equivalents                     $     36,889  $     12,167
  Trade accounts receivable, less allowance for
   doubtful accounts of $1,525 in 2010 and
   $1,619 in 2009                                     95,207        88,822
  Inventories                                         18,250        20,536
  Prepaid expenses and other current assets            9,356         8,192
  Income tax receivable                                2,943         2,565
  Deferred income taxes                                  347           992
                                                ------------  ------------
Total current assets                                 162,992       133,274

Property and equipment, net                           48,684        50,247
Goodwill, net                                        193,626       187,664
Other intangible assets, net:
  Customer relationships                              36,461        36,321
  Other                                                  817         1,284
Deferred income taxes                                    868         1,424
Other assets                                           6,411         6,005
                                                ------------  ------------

Total assets                                    $    449,859  $    416,219
                                                ============  ============

Liabilities and stockholders' equity
Current liabilities:
  Trade accounts payable                        $     21,930  $     16,957
  Accrued expenses                                    64,007        64,079
  Deferred income taxes                                3,260           205
  Income taxes                                         1,038        14,600
  Current portion of long-term debt                   29,587        12,858
                                                ------------  ------------
Total current liabilities                            119,822       108,699
                                                ------------  ------------

Long-term liabilities:
  Long-term debt                                      37,080        64,707
  Deferred income taxes                                9,135         2,059
  Other long-term liabilities                         19,696        15,920
                                                ------------  ------------
Total long-term liabilities                           65,911        82,686
                                                ------------  ------------

Stockholders' equity:
  Common stock, $0.008 par value, 40,000,000
   shares authorized, 30,506,252 and  29,855,796
   shares issued at December 31, 2010 and 2009,
   respectively; 25,761,334  and 25,108,894
   shares outstanding at December 31, 2010 and
   2009, respectively                                    224           220
  Additional paid-in capital                         200,205       191,701
  Retained earnings                                  113,258        85,953
  Accumulated comprehensive income, net               11,247         7,804
  Treasury stock, at cost, 4,744,918 and
   4,746,902 shares of common stock at
   December 31, 2010 and 2009, respectively          (60,808)      (60,844)
                                                ------------  ------------
Total stockholders' equity                           264,126       224,834
                                                ------------  ------------

Total liabilities and stockholders' equity      $    449,859  $    416,219
                                                ============  ============




                               Schawk, Inc.
                          Segment Financial Data
                                (Unaudited)
                              (In thousands)

                                 Three Months Ended
                                    December 31,      Increase (Decrease)
                                --------------------  -------------------
                                  2010       2009       Amount    Percent
                                ---------  ---------  ---------  --------
Sales to external clients:
North America                   $ 101,662  $ 104,991  $  (3,329)     (3.2)%
Europe                             17,139     18,537     (1,398)     (7.5)%
Asia Pacific                        8,784      8,658        126       1.5 %
Intercompany sales elimination     (9,069)   (10,280)     1,211     (11.8)%
                                ---------  ---------  ---------

Sales to external clients       $ 118,516  $ 121,906  $  (3,390)     (2.8)%
                                =========  =========  =========

Operating segment income
 (loss):
North America                   $  17,522  $  17,969  $    (447)     (2.5)%
Europe                                959      1,656       (697)    (42.1)%
Asia Pacific                        1,218      2,102       (884)    (42.1)%
Corporate                          (6,197)   (11,457)     5,260      45.9 %
                                =========  =========  =========

Operating segment income        $  13,502  $  10,270  $   3,232      31.5 %
                                =========  =========  =========



                                 Twelve Months Ended
                                    December 31,      Increase (Decrease)
                                --------------------  -------------------
                                   2010      2009       Amount   Percent
                                ---------  ---------  ---------  --------
Sales to external clients:
North America                   $ 399,658  $ 390,713  $   8,945       2.3 %
Europe                             66,238     67,409     (1,171)     (1.7)%
Asia Pacific                       31,393     29,348      2,045       7.0 %
Intercompany sales elimination    (36,663)   (35,024)    (1,639)      4.7 %
                                ---------  ---------  ---------

Sales to external clients       $ 460,626  $ 452,446  $   8,180       1.8 %
                                =========  =========  =========

Operating segment income
 (loss):
North America                   $  68,428  $  56,734  $  11,694      20.6 %
Europe                              3,812      3,836        (24)     (0.6)%
Asia Pacific                        4,855      7,389     (2,534)    (34.3)%
Corporate                         (27,529)   (32,175)     4,646      14.4 %
                                ---------  ---------  ---------

Operating segment income        $  49,566  $  35,784  $  13,782      38.5 %
                                =========  =========  =========



                               Schawk, Inc.
                Reconciliation of Non-GAAP measures to GAAP
                                (Unaudited)
                   (In Thousands, Except Share Amounts)



                           Three Months Ended       Twelve Months Ended
                              December 31,              December 31,
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  ------------ -----------  -----------
Income before income
 taxes - GAAP           $    11,710  $      8,153 $    42,404  $    27,094
Adjustments:
  Acquisition integration
   and restructuring
   expenses                   1,237         2,813       1,974        6,459
  Business and
   systems integration
   expenses                     915            --       1,564           --
  Remediation and related
   expenses                      --           441          --        4,484
  Multiemployer pension
   withdrawal (income)
   expense                     (700)        1,800        (200)       1,800
  Impairment of
   long-lived assets (1)          8         1,305         688        1,441
  Indemnity settlement           --            --          --       (4,986)
  Foreign currency loss
   (gain)                        62           547       2,306         (542)
                        -----------  ------------ -----------  -----------
Adjusted income before
 income tax - non GAAP       13,232        15,059      48,736       35,750
Adjusted income tax
 provision - non GAAP         5,810         7,007      17,616       12,639
                        -----------  ------------ -----------  -----------

Adjusted net income -
 non GAAP               $     7,422  $      8,052 $    31,120  $    23,111
                        ===========  ============ ===========  ===========

Weighted average common
 and common stock
 equivalents outstanding
 - GAAP (diluted)            26,156        25,308      25,883       25,001
                        ===========  ============ ===========  ===========

Earnings per diluted
 share - GAAP           $      0.24  $       0.15 $      1.25  $      0.78
Adjustments - net of
 tax effects:
  Acquisition integration
   and restructuring
   expenses                    0.04          0.07        0.05         0.17
  Business and
   systems integration
   expenses                    0.02            --        0.04           --
  Remediation and related
   expenses                      --          0.01          --         0.11
  Multiemployer pension
   withdrawal (income)
   expense                    (0.02)         0.04       (0.01)        0.04
  Impairment of
   long-lived assets             --          0.03        0.02         0.04
  Indemnity settlement           --            --          --        (0.20)
  Foreign currency loss
   (gain)                        --          0.02        0.07        (0.01)
  Effective settlement of
   certain income tax
   audits                        --            --       (0.22)          --
                        -----------  ------------ -----------  -----------

Adjusted earnings per
 diluted share - non
 GAAP                   $      0.28  $       0.32 $      1.20  $      0.93
                        ===========  ============ ===========  ===========


Income tax provision  -
 GAAP                   $     5,388  $      4,434 $     9,984  $     7,597
Adjustments: (2)
  Acquisition integration
   and restructuring
   expenses                     325         1,021         604        2,166
  Business and
   systems integration
   expenses                     363            --         621           --
  Remediation and related
   expenses                      --           175          --        1,781
  Multiemployer pension
   withdrawal (income)
   expense                     (278)          715         (79)         715
  Impairment of
   long-lived assets              3           518         273          563
  Foreign currency (gain)
   loss                           9           144         583         (183)
  Effective settlement of
   certain income tax
   audits                        --            --       5,630           --
                        -----------  ------------ -----------  -----------

Adjusted income tax
 provision - non GAAP   $     5,810  $      7,007 $    17,616  $    12,639
                        ===========  ============ ===========  ===========



(1) Please see the Company's discussion related to certain insurance
    recoveries in its 2010 Form 10-K.
(2) Adjustments have been tax-effected at the jurisdictions' statutory
    rates.





                               Schawk, Inc.
Reconciliation of Non-GAAP Adjusted EBITDA and Management Adjusted EBITDA
                                (Unaudited)
                              (In Thousands)

                                       Three Months       Twelve Months
                                          Ended               Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2010      2009      2010      2009
                                    --------  --------- --------  --------
Net income - GAAP                   $  6,322  $   3,719 $ 32,420  $ 19,497
Interest expense                       1,800      2,428    7,201     9,225
Income tax expense                     5,388      4,434    9,984     7,597
                                    --------  --------- --------  --------
Adjusted Income - non GAAP            13,510     10,581   49,605    36,319
Depreciation and amortization
 expense                               4,353      4,444   17,611    18,653
Impairment of long-lived assets            8      1,305      688     1,441
Non-cash restructuring charges            --         --       --       210
Stock based compensation                 472        447    1,886     1,737
                                    --------  --------- --------  --------

Adjusted EBITDA - non GAAP            18,343     16,777   69,790    58,360

Permitted add backs on debt
 covenants:
Loss on sale of property and
 equipment                                --         --       --        44
Pro-forma effect of acquisitions
 and asset sales                          81         --    1,104        --
Acquisition integration and
 restructuring expenses(1)                --         --       --     3,000

                                    --------  --------- --------  --------
Adjusted EBITDA for covenant
 compliance - non GAAP                18,424     16,777   70,894    61,404

Acquisition integration and
 restructuring expenses                1,237      2,813    1,974     3,249
Business and systems integration
 expenses                                915         --    1,564        --
Pro-forma effect of acquisitions
 and asset sales                         (81)        --   (1,104)       --
Multiemployer pension plan
 withdrawal (income) expense            (700)     1,800     (200)    1,800
Indemnity settlement income               --         --       --    (4,986)
Foreign exchange loss (gain)              62        547    2,306      (542)
Remediation and related expenses          --        441       --     4,484
                                    --------  --------- --------  --------

Management adjusted EBITDA - non
 GAAP                               $ 19,857  $  22,378 $ 75,434  $ 65,409
                                    ========  ========= ========  ========


(1) Capped at $3.0 million for 2009 per the Company's new debt agreements.
    Amounts in excess of $3.0 million are included as an adjustment for
    Management adjusted EBITDA.

Use of Non-GAAP Adjusted EBITDA, Adjusted EBITDA for covenant compliance, and Management adjusted EBITDA

Adjusted EBITDA, as presented within this release, is defined as earnings before interest, income taxes, depreciation and amortization, and other certain non-cash items. Adjusted EBITDA for covenant compliance, as defined in the Company's January 2010 debt agreements, is defined as Adjusted EBITDA excluding certain items, including items that are generally considered non-operating, as permitted under the Company's current revolving credit facility, and is used by management to gauge its ongoing compliance with the Company's principal debt covenants, as well as pricing on its revolving credit facility. Management adjusted EBITDA is used to evaluate the core operating activities of the Company from period to period. None of the measures presented above represent cash flows from operations as defined by generally accepted accounting principles, should not be considered as an alternative to net income or cash flow from operations as an indicator of our operating performance, and are not indicative of cash available to fund all cash flow needs. These measures also may be inconsistent with similar measures presented by other companies or EBITDA as defined under guidance from the Securities and Exchange Commission.

Contact Information: AT SCHAWK, INC.: Timothy Allen Vice President, Finance Operations and Investor Relations 847-827-9494 Timothy.Allen@schawk.com AT DRESNER CORPORATE SERVICES: Investors: Philip Kranz 312-780-7240 pkranz@dresnerco.com