During the course of the year, the Company’s organizational resources were concentrated into three core competencies: Decorating Solutions—our core label business; Graphic Services—our digital prepress and cylinder engraving operations; Packaging Services—our design, assembly and fulfillment services business. These three competencies are represented in the marketplace by knowledgeable national account teams to deliver speed-to-market results for customers on a higher performance scale. the benchmarks we have chosen to measure our performance. Our Vision is  to be a premier resource of global packaging solutions. Product leadership  and operational excellence are the ways  we will achieve it. Our V 2 Continuous Improvement  Process is driving Multi-Color to sustain  its reputation as the industry’s high-value,  cost-effective producer. When you read about our many V 2 success stories (see page 7), you see the improvements our teams are creating everyday. As an example of our productivity gains, today three of our gravure printing presses are doing the work of five presses a  year ago. Strengthened Management Team We continue to add knowledge and  talent to our organization. In February 2004 Don Kneir was named president of our Decorating Solutions division. Don is responsible for the day-to-day management of our core label business, including new product development, customer relations and profitable growth.  Continuously improving the skill levels of our sales, marketing and operations associates is vital to the execution of our Value Proposition as we move forward into FY 2005.  Improved Productivity to Drive Satisfaction and Profits. Productivity gains—reducing waste, accelerating production cycles and speeding new commercial products to market—are Our strategic plan is working and we  are poised to achieve long-term growth  from each of our key objectives: > Building the Multi-Color brand—  Our spectrum of products and services  is more extensive and integrated than ever before. A pipeline of new product developments—from new substrates to “no substrate” technologies—will truly mark the Multi-Color brand as unique  and revolutionary. > More productive sales performance— Our national account and end user sales teams will continue to expand our Decorating Solutions and Packaging Services customer base, and deliver new market sales with greater productivity. > Imbed continuous improvement— V$^{2}$’s proven ability to improve productivity will be implemented company-wide throughout FY 2005. > Pursue selective acquisitions that strengthen our core business while achieving our financial objectives.  Our Drivers of Success As I reflect on the successes and challenges we experienced for the year just ended, I am confident in our Company’s future ability to satisfy markets and sustain long-term growth. Together with a strengthened management team, our 600 talented Multi-Color associates will continue to skillfully execute our strategic plan. On a daily basis our people are the very heart of our success. It is my privilege to be part of this innovative organization. Sim no Key Highlights: We Focus on Strategies for Sustained Growth  Other significant highlights from the year attested to Multi-Color’s broad-based strengths: 3 > Purchased and integrated the heat transfer label business from Tennessee-based International Playing Card and Label Co. Inc. in July 2003. > Based on the strength of our 5-year averages in return on equity, sales and EPS growth, Multi-Color was rated the “7th Most Up and Coming Company” in Forbes Magazine’s 200 Best Small Companies report issued in October 2003. > In the same report, Forbes rated the  Multi-Color Board of Directors with the second highest score for excellence in corporate governance among the 3500 corporations evaluated. > Multi-Color shares split 3 for 2 in November 2003, increasing liquidity and attesting to Management’s confidence in  operations going forward. Francis D. Gerace President and  Chief Executive Officer