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Chicago Graphics Services Firm Buys Schawk, Inc. Units
via NewsEdge Corporation



DES PLAINES, Ill.--(BUSINESS WIRE)--March 6, 2006--Schawk, Inc. (NYSE:SGK), one of North America's leading providers of digital imaging graphic services to the consumer products and brand imaging markets, announced today that it has sold its Book, Publishing, certain Catalog and former Applied Graphics Technologies' New York operations (the "Business Group") for $29 million in cash plus assumed liabilities to The Caps Group Acquisition, LLC. The Caps Group is a supplier of a variety of premedia services. The proceeds of the sale will be used to reduce debt.

The Business Group consists of certain assets of the former Black Dot Group and the former Applied Graphics Technologies, Inc.'s New York business produced at its 33rd St. location, along with certain related work from its previous location in New Jersey. The Business Group volume represents approximately $62 million of revenue on a full-year basis. Substantially all of the Business Group became part of Schawk with the acquisition of Seven Worldwide on January 31, 2005. Schawk anticipates that the transaction will have no material impact on Schawk's net income or earnings per share.

Commenting on the announcement, Schawk President and CEO David Schawk said, "This transaction is a win-win for both Schawk and The Caps Group. We recognized that the value of these operations could be maximized as part of another premedia organization that was focused on the markets that these operations served. As we indicated since the day we acquired Seven Worldwide, we would be evaluating all of their operations, and as a result of this review, we determined that certain operations were non-core assets to Schawk. Therefore, we marketed the Business Group for sale, and the Caps Group was the successful bidder. The Caps Group is positioned to help the Business Group focus on realizing the full value of its service offerings and technologies. The divestiture of the Business Group helps us to pursue our goal of focusing Schawk on its consumer products clients through services for both manufacturers and retailers, and the advertising companies that help them sell their products."

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 177 locations in 13 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, or unanticipated difficulties associated with, integrating the acquired operations of Winnetts and Seven Worldwide, 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 Asia and other 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.

CONTACT: Schawk, Inc. James J. Patterson, 847-827-9494 jpatterson@schawk.com or Dresner Corporate Services Philip Kranz (Investors), 312-780-7240 pkranz@dresnerco.com or Sarah Komuniecki (Media), 312-780-7208 skomuniecki@dresnerco.com KEYWORD: ILLINOIS NEW YORKINDUSTRY KEYWORD: HARDWARE PUBLISHING SOFTWARE MARKETING AGREEMENTSSOURCE: Schawk, Inc.

<<Business Wire -- 03/07/06>>


   







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