<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-KSB

         (Mark One)

[X]      Annual report under Section 13 or 15(d) of the Securities Exchange Act
         of 1934.
         For the fiscal year ended December 31, 2000.

[ ]      Transition report under Section 13 or 15(d) of the Securities Act of
         1934. (No fee required).
         For the transition period from _____ to _____.

         Commission file number: 0-11744.

                        PUBLISHERS EQUIPMENT CORPORATION
                 ----------------------------------------------
                 (Name of Small Business Issuer In Its Charter)

              Texas                                      75-1653425
  -------------------------------                    -------------------
  (State or Other Jurisdiction of                      (I.R.S. Employer
   Incorporation or Organization)                     Identification No.)

16660 Dallas Parkway, Suite 1100, Dallas, TX                75248
--------------------------------------------                -----
  (Address of principal executive offices)                (zip code)

                                 (972) 931-2312
                ------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

Securities registered under Section 12(b) of the Exchange Act:

                                                    Name of Each Exchange
                  Title of each class                On Which Registered
                  -------------------               ----------------------
                         None                                 --

Securities registered under Section 12(g) of the Exchange Act:

                                 Title of Class
                           --------------------------
                           Common Stock, No Par Value

         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the issuer was required to file such reports), and (2) has
been subject to such filing requirements for past 90 days.

Yes    X                No
     ----                    ----

         Check if disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to Form 10-KSB.  [ ]

         The issuers revenues for the fiscal year ended December 31, 2000 were
$13,811,014.

         The aggregate market value of the voting stock held by non-affiliates
of the registrant on __________, based on the closing sales price of the common
stock on the Nasdaq Stock Market on that date was approximately $_________.

         Indicated below is the number of shares outstanding of each class of
the issuer's common stock as of ________.


         Title of each class of common stock             Number Outstanding
         -----------------------------------             ------------------
             Common Stock, No Par Value                       5,249,321

                       DOCUMENTS INCORPORATED BY REFERENCE

         Portions of the Proxy Statement for the Annual Meeting of the issuer to
be held during 2000 are incorporated hereby by reference in Part III.

<PAGE>   2

                        PUBLISHERS EQUIPMENT CORPORATION

                   INDEX TO THE DECEMBER 31, 2000 FORM 10-KSB

<TABLE>
<CAPTION>
                                                                       PAGE
                                                                       ----
<S>      <C>                                                           <C>

                                     PART I

Item 1.  Business ................................................      3

Item 2.  Properties ..............................................      5

Item 3.  Legal Proceedings .......................................      6

Item 4.  Submission of Matters to a Vote of
         Security Holders ........................................      6

                                     PART II

Item 5.  Market for Registrant's Common Equity
         and Related Stockholder Matters .........................      6

Item 6.  Management's Discussion and Analysis
         of Financial Condition and Results
         of Operations ...........................................      7

Item 7.  Financial Statements and Supplementary
         Data ....................................................     11

Item 8.  Changes In and Disagreements with
         Accountants on Accounting and
         Financial Disclosure ....................................     26

                                    PART III

Item 9.  Directors, Executive Officers, Promoters
         and Control Persons; Compliance with
         Section 16(a) of the Exchange Act .......................     26

Item 10. Executive Compensation ..................................     26

Item 11. Security Ownership of Certain
         Beneficial Owners and Management ........................     26

Item 12. Certain Relationships and Related
         Transactions ............................................     27

Item 13. Exhibits, Lists and Reports on
         Form 8-K ................................................     27
</TABLE>


                                       2
<PAGE>   3
                                     PART I

Item 1.  Business

                                     General

Publishers Equipment Corporation (the "Company") serves the single-width
newspaper, commercial and semi-commercial printing markets through its
wholly-owned subsidiary, King Press Corporation ("King Press"). King Press,
acquired by the Company in 1984, manufactures and markets single-width web
offset presses worldwide and has been an active force in the market since the
early 1960's. Single-width printing equipment prints two newspaper pages across
at one time and is generally utilized by daily, weekly, and bi-weekly
newspapers, as well as by commercial and semi-commercial printers. The markets
for single-width equipment consist of a large number of individual equipment
users that produce a wide variety of products that includes newspapers, flyers,
inserts, brochures and catalogs.

Until the mid-1960's, publishers and printers in the United States utilized
equipment employing the "letterpress" printing process. During the 1960's, many
newspapers replaced their letterpress equipment with "offset" printing equipment
because of its capability to produce sharper images and better quality color,
qualities important to advertisers who provide a newspaper's principal source of
revenue. The transition to offset presses occurred rapidly in the single-width
newspaper industry due to a relatively low capital investment in existing
letterpresses and a less demanding operating environment. Today, the vast
majority of single-width equipment in production worldwide by publishers and
printers employs the offset printing process. Suppliers of single-width web
offset equipment, including the Company, have continued to make equipment
improvements that enhance speed, productivity and color capabilities in response
to the demands of a changing mix of equipment users and their changing equipment
needs.

The Company was incorporated under the laws of the state of Texas in 1979 and
maintains its principal executive offices at 16660 Dallas Parkway, Suite 1100,
Dallas, Texas 75248, telephone number (972) 931-2312. As of December 31, 2000,
the Company employed 111 persons. King Press' manufacturing personnel are
represented by the International Association of Machinists and Aerospace Workers
of the AFL-CIO under a three-year contract that expires November 20, 2003. All
subsequent references to the Company include Publishers Equipment Corporation
and its wholly-owned subsidiary, King Press, unless the context requires
otherwise.

                        Principal Customers and Marketing

The Company markets its single-width equipment products through sales offices in
the U.S. as well as through independent international sales agents located in
over 50 countries. In addition, the Company's executive officers engage in sales
activities for its single-width equipment products.

In recent years the Company has realigned its international dealer network to
increase effectiveness and expand into new market areas. During 2000, the
Company derived



                                       3
<PAGE>   4


approximately 23 percent of its revenues from foreign sales, which included
customers in Europe, Africa and South America. During 1999, the Company derived
approximately 38 percent of its revenues from foreign sales. (See Item 6.
Results of Operations. Revenues.)

The Company's revenues are derived from sales to a broad base of small
newspapers as well as commercial and semi-commercial printers. During 2000, two
customers accounted for approximately 39 percent of the Company's revenues.
During 1999, three customers accounted for approximately 44 percent of the
Company's revenues.

                             Equipment and Services

The Company's line of single-width offset equipment products meets the needs of
printers and publishers ranging from cost effective presses for newspaper
production to heatset equipment that meets the high quality requirements of
commercial printers.

<TABLE>
<CAPTION>
                  Product                              Application
                  -------                              -----------

         <S>                                         <C>
         News King Printing Press                    Newspaper, Small
         and Add-On Units

         Litho King Printing Press                   Newspaper, Small
         and Add-On Units                            and Mid-Size

         Color King Printing Press                   Newspaper; Semi-
         and Add-On Units                            Commercial, Heatset
                                                     and Non-Heatset

         Process King Printing Press                 Commercial, Heatset
         and Add-On Units                            and Non-Heatset

         Media King Printing Press                   Newspaper, Mid-Size;
         and Add-On Units                            Semi-Commercial, Heatset
                                                     and Non-Heatset

         Print King IV                               Newspaper, Mid-Size;
         Printing Presses and Add-On                 Semi-Commercial, Heatset
         Units                                       and Non-Heatset

</TABLE>

The Company warrants the performance of its products for a period of one year
against defects in both materials and workmanship, in addition to supplemental
contractual warranties and performance guarantees as agreed to with individual
customers. Because of the complex nature of printing presses, the Company's
contracts provide for a continuing involvement with its customers' operations
following the completion of a project in order to assure that the performance of
the equipment meets both contractual obligations and customer requirements.


                                       4

<PAGE>   5


During 2000, approximately $294,000 was charged to operations for warranty
costs, compared to approximately $419,000 charged to operations for warranty
costs in 1999.

                               Product Development

The Company separately funds research and development activities as required to
accomplish its stated goals. In 1990, a heat-set version of the Process King was
introduced for the European market. In 1992, the Company introduced an improved
steel side-framed News King printing unit. In 1993, the Company introduced the
Media King, a modular four-high stackable unit targeted for use by printers and
publishers requiring four color capability in a compact press arrangement, and
the Litho King, a highly featured version of the Company's News King unit. The
first installation of Media King units was completed in late 1994 for a West
European customer. In 1995, 1996 and 1997, the Company's research and
development activities were directed primarily at improvements and modifications
to its current product lines, including the adaptation of equipment for the
printing requirements of the emerging former East Block countries. In 1998, the
Company introduced the Print King IV printing unit, an economical four-high
printing unit designed for four color newspaper and some commercial printing.
This printing unit is a complementary addition to other King Press products. The
first Print King IV printing units were installed at a domestic customer's
location in the first quarter of 1999 and at a foreign customer in the third
quarter of 2000. The Company's new and redesigned products are designed to
enable the Company to compete effectively in both domestic and international
markets.

The Company, in addition, conducts research and development activities in
connection with customer contracts for new and improved equipment, with the cost
of these activities included in the contract price. Currently, research and
development activities are directed towards new single-width equipment products
that will complement the Company's current products and services, as well as
improvements to the Company's current product lines.

During 2000, the Company spent approximately $125,000 on such research and
development activities. During 1999, the Company spent approximately $152,000 on
research and development activities not connected with customer contracts.

                                   Competition

King Press' operations compete on a worldwide basis, principally with U.S. based
Heidelberg Web Press, Inc., Goss Graphic Systems, Inc., Dauphin Graphic
Machines, Inc. and Solna International AB. The Company believes its single-width
presses provide a price/performance combination superior to its competitors.

Item 2.  Properties

The Company leases 1,925 square feet for its principal executive offices at
16660 Dallas Parkway, Suite 1100, Dallas, Texas, which is used for its corporate
management offices. The lease on this office expires in 2001, at which time the
Company may negotiate a renewal of the lease.



                                       5
<PAGE>   6


The Company owns a 137,000 square foot office and manufacturing facility in
Joplin, Missouri, which is used as the principal offices of King Press.

Item 3.  Legal Proceedings

The Company has from time to time become involved in various claims and lawsuits
incidental to their businesses. In the opinion of management of the Company, any
ultimate liability arising out of currently pending claims and lawsuits will not
have a material adverse effect on the consolidated financial condition or
results of operations of the Company.

Item 4.  Submission of Matters to a Vote of Security Holders

Not applicable.

                                     PART II

Item 5.   Market for Registrant's Common Equity and Related
          Stockholder Matters

The Company's common stock traded on the Nasdaq Stock Market under the symbol
PECN from 1986 to 1995, and prior to 1986 and subsequent to 1995 in the
over-the-counter market. The following table sets forth the range of the daily
high and low sales prices for the common stock, as reported by the National
Association of Securities Dealers, Inc. through NASDAQ for all periods after
January 1, 1998.

<TABLE>
<CAPTION>

                                                          Stock
                                                  ----------------------
                                                  High               Low
                                                  ----               ---
<S>                                               <C>                <C>
1999
         First Quarter........................    0.31               0.22
         Second Quarter.......................    0.25               0.20
         Third Quarter........................    0.25               0.19
         Fourth Quarter.......................    0.24               0.16

2000
         First Quarter........................    0.29               0.18
         Second Quarter.......................    0.29               0.16
         Third Quarter........................    0.16               0.13
         Fourth Quarter.......................    0.16               0.06

2001
         First Quarter........................    0.08               0.06
         (Through March 15, 2001)
</TABLE>



                                       6
<PAGE>   7


As of March 16, 2001, there were approximately 396 record holders of the
Company's common stock.

The Company has not paid any dividends on its common stock since its inception.
Periodically, the Company will consider the payment of dividends in light of the
Company's earnings, capital requirements, financial condition and other factors,
but there is no assurance that the Company will decide to pay dividends in the
future. The loan agreement pertaining to the Company's revolving line of credit
includes restrictions on the payment of dividends.

Item 6.  Management's Discussion and Analysis of Financial
                       Condition and Results of Operations


                        Financial Position and Liquidity

King Press was supported from January 1, 2000, to December 10, 2000, by a
secured $2,000,000 revolving line of credit and a secured $2,500,000 term loan
that was scheduled to mature July 15, 2001. Effective December 11, 2000, King
Press Corporation entered into a new credit arrangement with a new lender that
replaced the existing revolving line of credit and term loan with its old
lender.

The new line of credit consists of a secured $1,000,000 revolving line of credit
for domestic sales that expires May 31, 2003; a secured $2,000,000 revolving
line of credit for foreign sales, guaranteed by the United States Export-Import
Bank, that expires May 31, 2003; and, a secured $3,000,000 term loan that
expires December 11, 2003. The loan agreement pertaining to the revolving lines
of credit and term loan includes restrictions on indebtedness, liens, the
disposal of assets and requires that certain financial ratios be maintained; and
provides security through a cross collateralization of all King Press
Corporation assets and the guarantee of the Company.

At December 31, 2000, King Press had no borrowings outstanding under the
domestic revolving line of credit, $2,000,000 outstanding under the foreign
revolving line of credit and a balance of $3,000,000 owed under the term loan,
$200,000 of which is current. King Press was in compliance with or had obtained
waivers for all loan agreement covenants at December 31, 2000.

At December 31, 2000, the Company has $500,000 owed under a Convertible
Subordinated Note due December 31, 2002. During the third quarter of 2000, the
holder of the Note reduced the principal amount owed from $1,000,000 to
$500,000, and extended the maturity of the $500,000 balance remaining under the
Note from December 31, 2000, to December 31, 2002.

The Company's backlog at December 31, 2000, totaled $3,867,000 compared to
$3,387,000 at December 31, 1999.



                                       7
<PAGE>   8


                              Results of Operations

Revenues. Revenues of $13,811,000 for 2000 compare to $11,591,000 for 1999, an
increase of approximately 19 percent. Revenues derived from sales to domestic
customers increased approximately 47 percent in 2000 compared to 1999,
reflecting larger average contract values in the current year. The Company's
domestic business mix in 2000 contained a higher level of heatset equipment
sales for commercial printing applications than occurred in 1999. The glossy
four-color product produced on the Company's press equipment in a commercial
printing operation requires a substantial amount of auxiliary equipment that the
Company must purchase from other OEM suppliers. This auxiliary equipment adds to
the contract value and revenues recognized by the Company for sales of heatset
printing equipment.

During the fourth quarter of 2000, the Company shipped a large heatset equipment
order containing its top of the line Process King printing units to a national
pizza chain store operation that brought certain printing requirements in-house.
This order represented a significant expansion of the Company's customer base
and is a development that the Company will attempt to build on. It followed
another large order for heatset equipment delivered to an existing King Press
customer in the first quarter of 2000.

Domestic printing equipment markets remained active in 2000, although having
experienced offsetting developments in the two most important factors governing
equipment sales. Print advertising expenditures, which represent the major
source of income for the Company's customer base, grew during the year, while
newsprint cost, which can account for as much as 20 percent of a newspaper's
expenses, also increased during the year.

Trade publications report that total domestic newspaper advertising expenditures
grew by approximately 5.6 percent in 2000, after having increased by
approximately 5.4 percent in 1999. Classified advertising, the largest category,
is estimated to have increased by approximately 5.5 percent in 2000, after
having increased 4.0 percent in 1999. National and retail advertising
expenditures are estimated to have grown 14.1 percent and 4.0 percent
respectively in 2000, compared to corresponding rates of 17.7 percent and 2.8
percent in 1999.

Developments and trends in newsprint cost are not as positive. Domestic
newsprint cost was volatile in the decade of the `90s, reaching a high of over
$700 a metric ton in 1995, declining to close to $500 a metric ton in 1997 and
averaging approximately $559 a metric ton in 2000, an increase of approximately
11 percent over 1999.

Looking forward to 2001, trade publications forecast total print advertising
expenditures to slow to an approximate 5.0 percent growth over 2000. Classified
is forecast to grow by 5.3 percent, with national and retail growing
approximately 10.4 percent and 3.0 percent respectively. This forecast matches a
"soft landing" outlook for the U.S. economy in the current downturn. Advertising
growth can be expected to slow substantially if the country enters a recession.


                                       8
<PAGE>   9


Classified and retail print advertising expenditures rates have been affected by
the growth of e-commerce, and although online advertising has not yet had a
material effect on total print advertising expenditures, this issue could become
a concern as e-commerce continues to expand. Domestic newspapers have responded
to this diversion of an important revenue source by investing in websites that
utilize their news gathering services, with many of them carrying classified
advertising. The Company is monitoring all developments in this area and does
not expect the growth of online commerce to have a significant effect on its
equipment sales in the near term.

Domestic newspapers also face a slow decline in circulation and readership due
to the availability of alternative news sources, primarily television. To
reverse the declines in readership and circulation, and increase the
effectiveness of advertising, newspapers have improved services for both readers
and advertisers by increasing targeted distribution of their products.
Newspapers have increased local news coverage and included targeted supplements,
inserts and circulars with their publications.

As a result of increased targeting, the business mix of newspapers has included
a growing number of short press-run products that are produced more cost
effectively, with less waste, on single-width press equipment as sold by the
Company. The Company has delivered equipment for this purpose to a leading U.S.
newspaper group, and is pursuing other such orders.

Also in recent years, domestic demand for printing equipment has been marked by
the need for increased product color capability. The Company responded to this
demand by the introduction of the Media King printing press, and more recently
the PRINT KING IV printing press. These printing presses feature high quality
4-color capability with space saving vertically stackable printing units that
can be purchased as part of a new press or as add-ons to existing King Press
equipment. The first domestic order of PRINT KING IV equipment was placed in
successful production in 1999 and the first foreign order was delivered in the
third quarter of 2000. Both installations have generated interest from local
sales prospects.

The Company has a substantial list of domestic sales prospects, many of which
were developed at the large domestic graphic arts trade show "NEXPO" held in
Chicago in September of 2000. The Company had a static display of its printing
equipment at this event.

Revenues derived from sales to foreign customers decreased approximately 27
percent in 2000 compared to 1999, but did include the important delivery of
PRINT KING IV to a customer in France in the third quarter. The European market
area has had a strong "buy local" mentality and this new installation will
provide a good showcase for King Press products for other European sales
prospects.

Foreign revenues accounted for approximately 23 percent of total revenues in
2000 compared to approximately 38 percent in 1999. The Company has a strong list
of foreign sales prospects, and expects foreign revenues to remain a significant
component of its total revenues. Many new sales prospects were developed at the
large international trade show "DRUPA" held in Dusseldorf, Germany in June of
2000, and at the "IFRA" trade show held in Amsterdam in October. Both



                                       9
<PAGE>   10


domestic and foreign trade shows provide excellent insight into market demand
patterns and competitive equipment offerings, and also provide an opportunity to
meet with the Company's domestic and international sales representatives and
coordinate the activities of both.

Gross Profit. Gross profit of 2,437,000, or 17.6 percent of revenues, for 2000
compares to $2,332,000, or 20.1 percent of revenues, for 1999. The reduction in
gross profit expressed as a percent of revenues in 2000 is a result of increased
sales of heatset equipment in the Company's business mix and lower profit
margins on equipment orders delivered under contract during the year. Auxiliary
equipment included in orders for heatset equipment increase contract revenues,
but decreases contract profit margins because such equipment is purchased from
other OEM suppliers.

Selling, General and Administrative Expense. Selling, general and administrative
expense of $2,481,000, or 18.0 percent of revenues, for 2000 compares to
$2,453,000, or 21.2 percent of revenues, for 1999. The reduction in selling,
general, and administrative expense expressed as a percent of revenues in 2000
is attributable to their being controlled to a nominal increase on a substantial
increase in revenues.

Other Income (Expense). Interest expense of $443,000 for 2000, derived primarily
from borrowings under the King Press Corporation revolving line of credit and
term note, compares to $374,000 for 1999 derived from these same sources (See
Financial Position and Liquidity). Net other income of $28,000 in 2000 compares
to net other income of $13,000 in 1999.

Extraordinary Gain. During the third quarter of 2000, the holder of the
Company's $1,000,000 Convertible Subordinated Note forgave $500,000 of the
principal amount owed, resulting in an extraordinary gain of $500,000 for the
quarter and year.

Provision for Taxes. The Company utilized available net operating loss
carryforwards to offset federal and state income tax liabilities for 2000. (See
Note 7 of Notes to Consolidated Financial Statements).

Net Income (Loss). Net income of $42,000, or 0.3 percent of revenues, for 2000
compares to a net loss of $481,000, or 4.1 percent of revenues, for 1999.



                                       10
<PAGE>   11


Item 7.   Financial Statements and Supplementary Data


<TABLE>
<CAPTION>

                  Index to Consolidated Financial Statements
                  and Financial Statement Schedules:                                  Page
                                                                                      ----
<S>                                                                                   <C>
                  Report of Independent Public Accountants......................       12

                  Consolidated Balance Sheet as of
                    December 31, 2000...........................................       13

                  Consolidated Statements of Operations -
                    two years in the period ended
                    December 31, 2000...........................................       14

                  Consolidated Statements of Shareholders'
                    Equity - two years in the period
                    ended December 31, 2000.....................................       15

                  Consolidated Statements of Cash Flows -
                    two years in the period ended
                    December 31, 2000...........................................       16

                  Notes to Consolidated Financial
                    Statements..................................................       17
</TABLE>




                                       11

<PAGE>   12
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To the Board of Directors and Shareholders of
Publishers Equipment Corporation:

We have audited the accompanying consolidated balance sheet of Publishers
Equipment Corporation (a Texas corporation) and subsidiary as of December 31,
2000, and the related consolidated statements of operations, shareholders'
equity and cash flows for each of the two years in the period ended December 31,
2000. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Publishers Equipment
Corporation and subsidiary as of December 31, 2000, and the results of their
operations and their cash flows for each of the two years in the period ended
December 31, 2000, in conformity with accounting principles generally accepted
in the United States.



                                                           ARTHUR ANDERSEN LLP


Tulsa, Oklahoma
  March 2, 2001






                                       12






<PAGE>   13

                        PUBLISHERS EQUIPMENT CORPORATION


CONSOLIDATED BALANCE SHEET


<TABLE>
<CAPTION>
                                                                                December 31,
                                                                                    2000
                                                                                ------------
<S>                                                                             <C>
ASSETS
    Current assets:
       Cash and cash equivalents ..........................................     $  1,307,737
       Trade accounts receivable (net of allowance for
            doubtful accounts of $30,000) .................................        1,561,076
       Inventories (Note 3) ...............................................        7,909,995
       Prepaid expenses and other current assets ..........................           95,603
                                                                                ------------
           Total current assets ...........................................       10,874,411
                                                                                ------------
    Property, plant and equipment, at cost:
       Land ...............................................................           30,138
       Building ...........................................................        1,689,265
       Transportation equipment ...........................................           62,634
       Furniture and fixtures .............................................          878,670
       Machinery and tools ................................................        1,783,618
                                                                                ------------
                                                                                   4,444,325
       Less accumulated depreciation ......................................        3,426,981
                                                                                ------------
           Net property, plant and equipment ..............................        1,017,344
                                                                                ------------
    Other non-current assets ..............................................           72,620
                                                                                ------------
                                                                                $ 11,964,375
                                                                                ============

LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
       Trade accounts payable .............................................     $  1,521,642
       Accrued liabilities ................................................        1,105,700
       Accrued warranty expense (Note 4) ..................................          127,000
       Customer deposits ..................................................           79,500
       Current portion long-term debt .....................................          200,000
                                                                                ------------
           Total current liabilities ......................................        3,033,842
                                                                                ------------

    Long-term debt (Note 5) ...............................................        5,300,000
                                                                                ------------
    Other liabilities .....................................................           97,385
                                                                                ------------
    Contingencies and commitments (Note 6)
    Shareholders' equity (Notes 8 and 9):
       Common stock, no par value; 9,000,000 shares authorized,
            5,295,035 issued ..............................................       19,314,871
       Treasury stock, 45,714 shares at cost ..............................         (168,496)
       Retained deficit ...................................................      (15,613,227)
                                                                                ------------
           Total shareholders' equity .....................................        3,533,148
                                                                                ------------
                                                                                $ 11,964,375
                                                                                ============
</TABLE>

                See accompanying notes.



                                       13
<PAGE>   14

                        PUBLISHERS EQUIPMENT CORPORATION


CONSOLIDATED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                                               Years ended December 31,
                                                                2000              1999
                                                            ------------      ------------

<S>                                                         <C>               <C>
Revenues ..............................................     $ 13,811,014      $ 11,590,802

Cost of revenues ......................................       11,373,596         9,258,658
                                                            ------------      ------------

Gross profit ..........................................        2,437,418         2,332,144

Selling, general and administrative
    expenses ..........................................        2,480,535         2,453,543
                                                            ------------      ------------

Operating loss ........................................          (43,117)         (121,399)

Other income (expense):
   Interest expense ...................................         (443,218)         (374,191)
   Interest income ....................................               --             1,483
   Other income, net ..................................           27,885            13,380
                                                            ------------      ------------

Loss before taxes .....................................         (458,450)         (480,727)

Provision for income taxes ............................               --                --
                                                            ------------      ------------

Loss before extraordinary gain ........................         (458,450)         (480,727)

Extraordinary gain from forgiveness of debt,
 net of income tax effects of $0 (Note 13) ............          500,000                --
                                                            ------------      ------------

Net income (loss) .....................................     $     41,550      $   (480,727)
                                                            ============      ============

Loss per share before extraordinary gain:
   Basic ..............................................     $      (0.09)     $      (0.09)
   Diluted ............................................     $      (0.09)     $      (0.09)

Earnings (loss) per share after extraordinary gain:
   Basic ..............................................     $       0.01      $      (0.09)
   Diluted ............................................     $       0.01      $      (0.09)

Weighted average shares outstanding:
   Basic ..............................................        5,249,321         5,234,787
   Diluted ............................................        5,249,321         5,234,787
</TABLE>


               See accompanying notes.



                                       14
<PAGE>   15

                        PUBLISHERS EQUIPMENT CORPORATION


                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY


                     Years ended December 31, 1999 and 2000


<TABLE>
<CAPTION>
                                                        Series A
                                                      Convertible
                                                    Preferred Stock                      Common Stock
                                             ------------------------------      -----------------------------
                                                Shares            Amount            Shares           Amount
                                             ------------      ------------      ------------     ------------
<S>                                          <C>               <C>               <C>              <C>

Balance at December 31, 1998 ...........           29,068      $    200,000         5,265,967     $ 19,114,871
  Issuance of shares upon conversion
    of preferred stock (Note 8) ........          (14,534)         (100,000)           14,534          100,000
  Net loss .............................               --                --                --               --
                                             ------------      ------------      ------------     ------------

Balance at December 31, 1999 ...........           14,534           100,000         5,280,501       19,214,871
  Issuance of shares upon conversion
    of preferred stock (Note 8) ........          (14,534)         (100,000)           14,534          100,000
  Net income ...........................               --                --                --               --
                                             ------------      ------------      ------------     ------------

Balance at December 31, 2000 ...........               --      $         --         5,295,035     $ 19,314,871
                                             ============      ============      ============     ============

<CAPTION>


                                                    Treasury Stock
                                             -----------------------------
                                                Shares           Amount       Retained Deficit       Total
                                             ------------     ------------    ----------------    ------------
<S>                                          <C>              <C>               <C>               <C>

Balance at December 31, 1998 ...........           45,714     $   (168,496)     $(15,174,050)     $  3,972,325
  Issuance of shares upon conversion
    of preferred stock (Note 8) ........               --               --                --                --
  Net loss .............................               --               --          (480,727)         (480,727)
                                             ------------     ------------      ------------      ------------

Balance at December 31, 1999 ...........           45,714         (168,496)      (15,654,777)        3,491,598
  Issuance of shares upon conversion
    of preferred stock (Note 8) ........               --               --                --                --
  Net income ...........................               --               --            41,550            41,550
                                             ------------     ------------      ------------      ------------

Balance at December 31, 2000 ...........           45,714     $   (168,496)     $(15,613,227)     $  3,533,148
                                             ============     ============      ============      ============
</TABLE>


   See accompanying notes.


                                       15
<PAGE>   16

                        PUBLISHERS EQUIPMENT CORPORATION


CONSOLIDATED STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                        Years ended December 31,
                                                                         2000              1999
                                                                     ------------      ------------
<S>                                                                  <C>               <C>

Cash flows from operating activities:
   Net income (loss) ...........................................     $     41,550      $   (480,727)
Adjustments to reconcile net income (loss) to
     net cash provided by (used in) operating activities:
           Depreciation and amortization .......................          144,465           182,579
           Extraordinary gain ..................................         (500,000)               --

Change in assets and liabilities:
           Decrease (increase) in accounts receivable ..........         (785,259)          645,329
           Decrease (increase) in inventories ..................          769,334          (464,262)
           Decrease in other current assets ....................           17,574            75,118
           Increase in non-current assets ......................          (72,620)               --
           Increase in accounts payable and
                 accrued liabilities ...........................          753,147           332,082
           Increase (decrease) in accrued warranty expense .....           26,823          (356,216)
           Decrease in customer deposits .......................          (22,888)         (480,118)
                                                                     ------------      ------------
   Net cash provided by (used in) operations ...................          372,126          (546,215)
                                                                     ------------      ------------

Cash flows from investing activities:
      Sale of property, plant and equipment ....................               --            16,336
      Additions to property, plant and equipment ...............               --          (251,657)
                                                                     ------------      ------------
   Net cash used in investing activities .......................               --          (235,321)
                                                                     ------------      ------------

Cash flows from financing activities:
      Total borrowings .........................................       12,909,247         8,701,420
      Total repayments .........................................      (12,016,547)       (7,919,187)
                                                                     ------------      ------------
   Net cash provided by financing activities ...................          892,700           782,233
                                                                     ------------      ------------

Net increase in cash and cash equivalents ......................        1,264,826               697
Cash and cash equivalents at beginning of period ...............           42,911            42,214
                                                                     ------------      ------------
Cash and cash equivalents at end of period .....................     $  1,307,737      $     42,911
                                                                     ============      ============
</TABLE>


           See accompanying notes.



                                       16
<PAGE>   17

                        PUBLISHERS EQUIPMENT CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.       NATURE OF OPERATIONS

Publishers Equipment Corporation (the "Company") is a multinational manufacturer
of single-width newspaper, commercial and semi-commercial printing presses. The
Company markets its products through its wholly-owned subsidiary, King Press
Corporation ("King Press"). King Press was acquired by the Company in 1984 and
has served printing equipment markets since the early 1960's. Presses are sold
primarily to small newspapers as well as commercial and semi-commercial printers
and publishers located throughout the world.

During 2000, the Company incurred an operating loss of $43,117 and had net cash
provided by operations of $372,126. In response to the operating results, the
Company is taking steps to strengthen its domestic sales force by the addition
of regional sales representatives in strategic locations. Domestic markets for
printing equipment were active in 2000 and the Company believes that
opportunities will exist for increased domestic sales in 2001. By such additions
to its sales force, the Company expects to be successful in increasing revenues
and profitability in 2001.

The Company arranged a new, expanded credit facility at year end 2000 to support
its King Press subsidiary in 2001 and afterwards. The new credit facility
consists of a $1,000,000 revolving line of credit to support domestic equipment
sales and a $2,000,000 revolving line of credit guaranteed by the Export-Import
Bank of the United States to support foreign equipment sales that expire May 31,
2003, and a $3,000,000 term note that matures December 11, 2003. The new
facility increases the funds available to the Company's operations by
$1,000,000.

Management believes that cash provided by operations and borrowings under the
new credit agreement will provide the Company with adequate cash flow to meet
its obligations. However, no assurance can be given that the operating goals
will be achieved and that all assets will be realized in the normal course of
operations.

2.       SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION - The Consolidated Financial Statements of the
Company include the accounts of Publishers Equipment Corporation and King Press
Corporation. All significant intercompany transactions are eliminated.

REVENUE RECOGNITION - Revenues are considered to have been earned when the
Company has substantially accomplished what it must do to be entitled to the
benefits represented by the revenues. This recognition normally occurs upon
shipment. Installation revenue is recognized as services are provided.



                                       17
<PAGE>   18

                        PUBLISHERS EQUIPMENT CORPORATION


NOTES (Continued)


ACCOUNTS RECEIVABLE - A majority of the Company's accounts receivable are due
from companies in the printing industry. Credit is extended based on evaluation
of the customer's financial condition and, generally, collateral is not
required.

INVENTORIES - Inventories are stated at the lower of cost (first-in, first-out)
or market.

DEPRECIATION - Depreciation is determined for financial reporting by the
straight-line method using the following estimated useful lives:

               Building                                         30 years
               Transportation equipment                          3 years
               Furniture and fixtures                      3 to 10 years
               Machinery and tools                         2 to 20 years

For income tax purposes, depreciation is determined by accelerated methods.

RESEARCH AND DEVELOPMENT COSTS - The costs and expenses related to basic
research, engineering, and product development are expensed as incurred. During
2000 and 1999, research and development costs aggregated approximately $125,000
and $152,000, respectively.

INCOME TAXES - Deferred income taxes are provided for differences between the
financial statement and tax bases of assets and liabilities using enacted tax
rates (See Note 7).

EARNINGS PER SHARE - Basic earnings per common share are computed by dividing
net income by the weighted average number of shares of common stock outstanding
during the reporting period. Diluted earnings per common share are determined on
the assumed exercise of dilutive options as determined by applying the treasury
stock method.

CASH EQUIVALENTS - The Company considers all highly liquid instruments purchased
with a maturity of three months or less to be cash equivalents.

USE OF ESTIMATES - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.



                                       18
<PAGE>   19

                        PUBLISHERS EQUIPMENT CORPORATION

NOTES (Continued)


3.       INVENTORIES

<TABLE>
<CAPTION>
                                            December 31,
                                                2000
                                            ------------

<S>                                         <C>
         Raw materials ................     $     81,663
         Work-in process ..............          640,155
         Finished goods ...............        7,953,785
         Used presses .................          231,986
                                            ------------

                                               8,907,589
         Less inventory reserves ......         (997,594)
                                            ------------

                                            $  7,909,995
                                            ============
</TABLE>

4.       WARRANTY

The Company warrants the performance of its products for a period of one year
against defects in both materials and workmanship, in addition to supplemental
contractual warranties and performance guarantees as agreed to with individual
customers.

Warranty expense provided was approximately $294,000 in 2000 and $419,000 in
1999, and is included in cost of revenues in the accompanying Consolidated
Statements of Income.

5.       DEBT

<TABLE>
<CAPTION>
                                                                                December 31,
                                                                                    2000
                                                                                ------------
<S>                                                                             <C>

         Amount outstanding under the King Press bank
          domestic revolving line of credit, interest
          at U.S. Prime Rate plus 1.0% (10.5% at
          December 31, 2000) due May 31, 2003, secured
          by all real and personal property of King
          Press ...........................................................     $         --
</TABLE>



                                       19
<PAGE>   20

                        PUBLISHERS EQUIPMENT CORPORATION


NOTES (Continued)


<TABLE>
<S>                                                                       <C>
         Amount outstanding under the King Press
          foreign revolving line of credit, interest
          at U.S. Prime Rate (9.5% at December 31,
          2000) due May 31, 2003, secured by all real
          and personal property and the guaranties of
          the Export-Import Bank of the United
          States .................................................        2,000,000

         Amount outstanding under the King Press bank
          term loan, interest at 10.50%, due December
          11, 2003, monthly payments of principal of
          $16,667, secured by all real and personal
          property of King Press .................................        3,000,000

         Subordinated note, convertible into common
          stock at $7.50 per share (subject to
          anti-dilution provisions), interest at
          German Prime Rate (4.75% at December 31,
          2000) due December 31, 2002,
          unsecured ..............................................          500,000
                                                                       ------------

                                                                          5,500,000
         Less current maturities .................................          200,000
                                                                       ------------


                                                                       $  5,300,000
                                                                       ============
Maturities of long-term debt are as follows:

2001 .............................................................          200,000
2002 .............................................................          700,000
2003 .............................................................        4,600,000
                                                                       ------------

                                                                       $  5,500,000
                                                                       ============
</TABLE>

At December 31, 2000, King Press may borrow up to $2,000,000 under a foreign
revolving credit line and $1,000,000 under a domestic revolving line of credit,
both of which expire May 31, 2003. At December 31, 2000, King Press had
$2,000,000 outstanding under the foreign revolving credit line and no borrowings
under the domestic revolving credit line. At December 31, 2000, King Press had a
balance owing of $3,000,000 under the term loan, $200,000 of which is current.
The loan agreement pertaining to the revolving lines of credit and term loan
includes restrictions on indebtedness, liens, disposal of assets and requires
that certain financial ratios be maintained. At



                                       20
<PAGE>   21

                        PUBLISHERS EQUIPMENT CORPORATION


NOTES (Continued)


December 31, 2000, the Company was in compliance with or had obtained waivers
for all provisions of the loan agreement.

The Company paid interest of approximately $440,000 in 2000 and $359,000 in
1999.

Interest Rate Risk Management

In December 2000, the Company entered into an interest rate swap with a bank to
reduce the impact of interest rate fluctuations on its operating results and
cash flows. Under the terms of this agreement, the Company receives a fixed rate
of 9.20% on $3,000,000 of its bank debt. This swap expires on December 11, 2003.

Fair Value of Financial Instruments

The Company values financial instruments as required by Statement of Financial
Accounting Standards No. 107, "Disclosures About Fair Value of Financial
Instruments." The Company's financial instruments consist of cash and cash
equivalents, accounts receivable, accounts payable and debt. The carrying amount
of cash and cash equivalents, accounts receivable and accounts payable
approximate fair value because of the short-term nature of these items. The
carrying amount of long-term debt to banks approximates fair value because the
terms of the debt are at market rates.

The fair value of the interest rate hedge is the amount at which the fixed
interest rate differs from the quoted market rate. At December 31, 2000, the
fair value of the interest rate swap was an asset of approximately $27,000.

6.       CONTINGENCIES

The Company has from time to time become involved in various claims and lawsuits
incidental to its business. In the opinion of management, any liability arising
out of currently pending claims and lawsuits will not have a material adverse
effect on the consolidated financial condition or results of operations of the
Company.

7.       INCOME TAXES

The Company applies the provisions of Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes." SFAS 109 requires
recognition of deferred tax liabilities and assets for the expected future
consequences of events that have been included in a company's financial
statements and tax returns in different years. Under this method, deferred tax
liabilities and assets are determined based on the difference between the
financial statement and tax bases of assets and liabilities using enacted tax
rates. SFAS 109 required that deferred tax assets be



                                       21
<PAGE>   22

                        PUBLISHERS EQUIPMENT CORPORATION


NOTES (Continued)


reduced by a valuation allowance if it is more likely than not that some portion
or all of the deferred tax asset will not be realized.

The Company had no provision for federal or state income taxes for 2000 or 1999.
The following is a reconciliation of the U.S. Federal statutory rate to the
effective tax rate.

<TABLE>
<CAPTION>
                                                               2000             1999
                                                            ----------       ----------

<S>                                                        <C>             <C>
U.S. Federal statutory rate (benefit)                               34%             (34)%
Loss producing no current tax benefit                               --               34%
Utilization of net operating loss carryforwards                    (34)%             --
                                                            ----------       ----------

                                                                     0%               0%
                                                            ==========       ==========
</TABLE>

At December 31, 2000, the Company had deferred tax liabilities of $135,000,
deferred tax assets of $3,074,000 and a valuation allowance of $2,939,000. The
principal temporary differences included above are net operating loss
carryforwards ($1,913,000), general business credits ($193,000), minimum tax
credit (108,000), uniform inventory cost capitalization ($252,000), depreciation
$135,000 and accruals and other ($608,000).

The Company has net operating loss carryforwards of $5,626,000 and general
business credit carryforwards of $193,000. The net operating loss carryforward
and the general business credit carryforwards expire beginning in 2004 and 1999,
respectively.

8.       PREFERRED STOCK

In connection with the acquisition of a Swedish subsidiary whose operations were
discontinued in 1991, the Company issued 145,349 shares of its Series A
Convertible Preferred Stock ("Series A"), no par value (250,000 shares
authorized), to AB Bonnierforetagen. The terms of the Series A shares provide
that such shares shall be nonvoting stock with a nonparticipating liquidation
preference of $6.88 per share. The Series A shares shall be entitled to receive
dividends at the same rate as the common stock on an "as converted" basis. The
terms of the Series A further provide that all of the issued shares will be
converted to common stock ratably over a 10 year period commencing January 1,
1991. The Series A will not be convertible at the option of the holder unless
and until the occurrence of certain events, such as a merger, recapitalization
or change in control of the Company. The Series A shares are convertible at a
rate of one share of preferred stock for one share of common stock and the
conversion rate is subject to certain anti-dilution adjustments. On each January
1, 1992 through 2000, 14,534 shares of the Series A converted to 14,534 shares
of common stock. As a result of the foregoing, the Company has converted to
common stock the entire issue of Series A convertible preferred stock.



                                       22
<PAGE>   23

                        PUBLISHERS EQUIPMENT CORPORATION


NOTES (Continued)


9.       STOCK OPTIONS AND PREEMPTIVE RIGHTS

The Company has granted incentive stock options to key employees and directors
of the Company at prices equal to the greater of $0.25 or market value at date
of grant. The stock options are exercisable in 25% cumulative annual
installments beginning at the date of grant.

A summary of option transactions in 1999 and 2000 follows:

<TABLE>
<CAPTION>
                                         Options        Total Option
                                        (Shares)            Price
                                      ------------      ------------
<S>                                   <C>              <C>

Outstanding at
  December 31, 1998 .............          318,992      $    168,541

Granted .........................            1,500               375
Cancelled .......................         (119,250)         (116,250)
Exercised .......................               --                --
                                      ------------      ------------

Outstanding at
  December 31, 1999 .............          201,242      $     52,666

Granted .........................               --                --
Cancelled .......................           (2,000)             (500)
Exercised .......................               --                --
                                      ------------      ------------

Outstanding at
  December 31, 2000 .............          199,242      $     52,166
                                      ------------      ------------

Exercisable at end of 2000 ......          198,117

Common stock reserved for
  options at end of 2000 ........          255,733

Exercise price of options
  outstanding at end of 2000 ....    $ 0.25 - $ 1.00
</TABLE>



                                       23
<PAGE>   24

                        PUBLISHERS EQUIPMENT CORPORATION


NOTES (Continued)


10.      EMPLOYEE BENEFIT PLANS

The Company has a 401(k) plan available to the non-bargaining unit employees of
the Company after six months of service. The plan provides for voluntary
contributions from participating employees. A participant may elect to make
contributions up to the maximum permissible amount (the lesser of $30,000 or 25%
of the participant's annual compensation) on a before tax basis. The 401(k) plan
allows the Company to make voluntary contributions to the accounts of
participating employees.

Employees of the Company participate in defined contribution pension plans.
Contributions to the pension plans are based on hours worked and wages earned.
The cost of the bargaining unit defined contribution pension plan was
approximately $135,000 in both 2000 in 1999.

Effective January 1, 2000, the defined contribution pension plan for
non-bargaining unit employees was merged into the 401(k) plan. For 2000, the
Company made a contribution of approximately $124,000 to the 401(k) plan, and
for 1999 a contribution of approximately $139,000 was made to the non-bargaining
unit defined contribution pension plan.

11.      EXPORT SALES

Included in revenues are export sales to foreign customers which aggregated
approximately $3,181,000 in 2000 and $4,356,000 in 1999.

12.      SIGNIFICANT CUSTOMERS

During 2000, two customers accounted for approximately 39 percent of the
Company's revenues. During 1999, three customers accounted for approximately 44
percent of the Company's revenues.

13.      EXTRAORDINARY GAIN

During the third quarter of 2000, the holder of the Company's $1,000,000
Convertible Subordinated Note forgave $500,000 of the principal amount owed,
resulting in an extraordinary gain of $500,000 for the quarter and year.

14.      NEW ACCOUNTING PRONOUNCEMENTS

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" ("SFAS 133"). SFAS 133 establishes accounting and
reporting standards requiring that every derivative instrument (including
certain derivative instruments embedded in other contracts) be



                                       24
<PAGE>   25

PUBLISHERS EQUIPMENT CORPORATION


NOTES (Continued)


recorded in the balance sheet as either an asset or liability measured at its
fair value. SFAS 133 requires that changes in the derivative's fair value be
recognized currently in earnings unless specific hedge accounting criteria are
met. Special accounting for qualifying hedges allows a derivative's gains and
losses to offset related results on the hedged item in the statement of
operations. Companies must formally document, designate and assess the
effectiveness of transactions that receive hedge accounting.

SFAS 133 was originally effective for fiscal years beginning after June 15,
1999; however, Statement Of Financial Accounting Standards No. 137, "Accounting
for Derivative Instruments and Hedging Activities-Deferral of the Effective Date
of FASB Statement No. 133-An amendment of FASB Statement No. 133" extended
implementation to fiscal years beginning after June 15, 2000, which would be the
Company's fiscal year 2001 beginning January 1, 2001. The Company has evaluated
the impact of adopting SFAS 133 effective January 1, 2001, and does not expect
it to have a material impact on its reported financial condition, results of
operations and cash flows.





                                       25
<PAGE>   26

Item 8.           Changes In and Disagreements with Accountants on Accounting
                  and Financial Disclosure

Not applicable.

                                    PART III

Item 9.           Directors, Executive Officers, Promoters and Control Persons;
                  Compliance with Section 16(a) of the Exchange Act

Executive Officers Of The Company

<TABLE>
<CAPTION>
                  Name                   Age               Present Position
                  ----                   ---               ----------------

<S>                                      <C>           <C>
               Evans Kostas               66           Chairman of the Board
                                                       Chief Executive Officer
                                                       and President

               Roger R. Baier             58           Chief Financial Officer
                                                       and Vice President
                                                       Finance
</TABLE>

Both of the Executive Officers of the Company have served in their present
capacities for the Company for at least the past five years.

[The remaining information required by Part III, Items 9, 10, 11 and 12 are set
forth in the Proxy Statement to be delivered to Shareholders in connection with
the Company's Annual Meeting of Shareholders presently scheduled to be held on
June 15, 2001, which information is incorporated herein by reference.]

Item 10.          Executive Compensation

The information concerning executive compensation is set forth in the Proxy
Statement under the heading "Executive Compensation", which information is
incorporated herein by reference.

Item 11.          Security Ownership of Certain Beneficial Owners and Management

The information concerning Security Ownership of Certain Beneficial Owners and
Management is set forth in the Proxy Statement under the heading "Security
Ownership of Management and Principal Shareholders", which information is
incorporated herein by reference.



                                       26
<PAGE>   27

Item 12.          Certain Relationships and Related Transactions

The information concerning Certain Relationships and Related Transactions is set
forth in the Proxy Statement under the heading "Certain Transactions", which
information is incorporated herein by reference.

Item 13.          Exhibits, Lists and Reports on Form 8-K

(a)      Exhibits.

         See Index to Exhibits.

(b)      Reports on Form 8-K.

         Not applicable.



                                       27
<PAGE>   28

                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

PUBLISHERS EQUIPMENT CORPORATION

By:     /s/ Evans Kostas
        ------------------------------------
            Evans Kostas                            Date:     March 6, 2001
            Chairman of the Board,                       -----------------------
            President and Chief Executive Officer

         In accordance with the Exchange Act, the report has been signed below
by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.

<TABLE>
<CAPTION>
Signature                                    Title                              Date
---------                                    -----                              ----

<S>                                 <C>                                    <C>
/s/ Evans Kostas                    Chairman of the Board                  March 6, 2001
------------------------            President and Chief                    ----------------------
Evans Kostas                        Executive Officer

/s/ Roger R. Baier                  Vice President-Finance                 March 6, 2001
------------------------            and Treasurer (Principal               ----------------------
Roger R. Baier                      Financial and Accounting
                                    Officer)

/s/ Simon Bonnier                   Director                               March 6, 2001
------------------------                                                   ----------------------
Simon Bonnier

/s/ James K. Feeney                 Director                               March 6, 2001
------------------------                                                   ----------------------
James K. Feeney

/s/ Robert S. Hamilton              Director                               March 6, 2001
------------------------                                                   ----------------------
Robert S. Hamilton

/s/ Ole B. Rygh                     Director                               March 6, 2001
------------------------                                                   ----------------------
Ole B. Rygh

/s/ Reinhart Siewert                Director                               March 6, 2001
------------------------                                                   ----------------------
Reinhart Siewert
</TABLE>



                                       28
<PAGE>   29

                        PUBLISHERS EQUIPMENT CORPORATION

                                INDEX TO EXHIBITS

<TABLE>
<CAPTION>
     EXHIBIT NO.                    DESCRIPTION                                    PAGE
     -----------                    -----------                                    ----

<S>                        <C>                                                  <C>
          3.1              Articles of Incorporation of the
                           Company, together with Articles of
                           Amendment and Form of Amendment                             *

          3.2              Articles of Amendment to Articles of
                           Incorporation of the Company, filed
                           with the Office of the Secretary of
                           State of Texas on June 2, 1988                             **

          3.3              Certificate of Correction of Articles
                           of Incorporation of the Company, filed
                           with the Office of the State of Texas
                           on April 9, 1990                                          ***

          3.4              Amended and Restated Bylaws of the
                           Company                                                   ***

         10.1              Loan Agreement, dated as of December
                           11, 2000, between King Press and Bank
                           of America, N.A.                                            P

         10.2              Revolving Promissory Note, dated as of
                           December 11, 2000, between King Press
                           and Bank of America, N.A.                                   P

         10.3              Revolving Promissory Note, dated as of
                           December 11, 2000, between King Press
                           and Bank of America, N.A.                                   P

         10.4              Term Note, dated as of December 11,
                           2000, between King Press and Bank of
                           America, N.A.                                               P

         10.5              Master Agreement, dated as of December 11,
                           2000, between King Press and International
                           Swap Dealers Association, Inc.                              P

         10.6              Security Agreement, dated as of
                           December 11, 2000, between King Press
                           and Bank of America, N.A.                                   P
</TABLE>



                                       29
<PAGE>   30

<TABLE>
<CAPTION>
     EXHIBIT NO.                    DESCRIPTION                                    PAGE
     -----------                    -----------                                    ----

<S>                        <C>                                                  <C>
         10.7              Publishers Equipment Corporation Stock
                           Option Plan, as Amended                                   ***

         10.8              Purchase Agreement for 7% Convertible
                           Subordinated Notes Due 1993, dated as
                           of December 6, 1986, by and among the
                           Company, Windmoller & Holscher                           ****

         10.9              Employment Agreement, dated as of May
                           2, 1988, as Amended by and between the
                           Company and Robert S. Hamilton                           ****

         21                Subsidiaries of the Company                                30

                                                                    Jurisdiction
                                  Name                            of Incorporation
                                  ----                            ----------------
                           King Press Corporation                     Missouri

                           Applied Graphics, Inc.                       Texas

         23                Consent of Independent Public
                           Accountants                                               123
</TABLE>

----------

*        Incorporated by reference from the Exhibits to the Company's
         Registration Statement on Form S-1 (Registration No. 2-28017).

**       Incorporated by reference from the Exhibits to the Company's Annual
         Report on Form 10-K for the year ended December 31, 1988.

***      Incorporated by reference from the Exhibits to the Company's Annual
         Report on Form 10-K for the year ended December 31, 1989.

****     Incorporated by reference from the Exhibits to the Company's Annual
         Report on Form 10-KSB for the year ended December 31, 1992.





                                       30