SOURCE: Schawk, Inc.

September 13, 2007 10:43 ET

Schawk, Inc. Acquires Protopak Innovations

Package Prototype Company Helps Consumer Product Companies Bring New Brands and Products to Market Faster

DES PLAINES, IL--(Marketwire - September 13, 2007) - Schawk, Inc. (NYSE: SGK), one of the world's leading providers of digital imaging graphic services to the consumer products and brand imaging markets, announced today that it has completed the acquisition of Protopak Innovations, a Toronto, Ontario-based package prototyping company with approximately $6 million in annual revenues.

Protopak Innovations is one of North America's leading package and prototype production houses. Since 1997, they have served the needs of leading consumer packaged goods companies with modeling and prototyping capabilities. These capabilities help clients realize their new product innovations, turning ideas into marketable products faster to meet swiftly evolving consumer demands.

Ruben Padilla, founder and principal of Protopak Innovations, will remain in the Toronto office as managing director. He founded Protopak 10 years ago after a career in sales and marketing with The Coca-Cola Company.

David A. Schawk, president and chief executive officer, said, "Protopak Innovations has become a premier solution provider in package and prototype production, boasting multi-national clients in pharmaceuticals, food and beverage, household products, and health and beauty care. Our acquisition of Protopak is consistent with our strategy to build Schawk's globally integrated brand image management supply chain solutions. Our integrated solutions deliver strategic business value, improved speed to market, enhanced brand consistency, and improved marketplace agility. Protopak will expand the influence, presence and credentials of our current package and prototype production locations in Chicago, Atlanta and Minneapolis."

Ruben Padilla added, "By offering a vertically-integrated operation, which includes a digital studio and a sophisticated digital print shop, we specialize in customizing solutions for every client by providing a single source, which manages each order from prototyping to production; ultimately reducing lead times and still maintaining the client's requirements. With one location and many capabilities, Protopak is able to save its customers time and money. Our versatile company and unique blend of services makes us the preferred vendor for our valued clients who demand a qualified reliable single source."

Schawk, Inc., headquartered in suburban Chicago, is one of the world's largest independent brand image solutions companies. Schawk delivers a broad range of digital pre-media graphic services through 154 locations in 12 countries across North America, Europe, Asia and Australia. Schawk designs, creates and manages images and text for reproduction to exact specifications for a variety of media, including packaging for consumer products, point-of-sale displays and other promotional and advertising materials. Schawk provides its services to the food, beverage, health & beauty, pharmaceutical, home care and consumer products industries. For more information, visit www.schawk.com.

Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities and 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, higher than expected costs, 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, loss of key management and operational personnel, our ability to implement our growth strategy, 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, our ability to implement restructuring plans, 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.

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