| West      Virginia                                                  |   | 55-0717455                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification No.) |

|  Large accelerated      filer o |  Accelerated filer      o   |  Non-accelerated filer      o                       | Smaller reporting      company þ |
|--------------------------------------|--------------------------------------------|----------------------------------------------------------|---------------------------------------|
|                                 |                                       |  (Do not check      if a smaller reporting company) |                                  |

|  Class                                        |   |  Outstanding      at April 30, 2010 |
|----------------------------------------------------|--------|------------------------------------------|
|  Common      stock, $1.00 par value per share |   |  9,987,913 shares                   |

|                                                                                                                                 |  Page      No. |
|--------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|  Part      I.   Financial      Information                                                                       |                |
|   Item 1.  Financial      Statements                                                                                  |                |
|     Consolidated Balance Sheets      (Unaudited)                                                                 | 3                   |
|     Consolidated Statements      of Operations (Unaudited)                                                  | 5                   |
|     Consolidated Statements      of Shareholders' Equity (Unaudited)                                        | 6                   |
|     Consolidated Statements of Cash      Flows (Unaudited)                                                       | 7                   |
|     Notes to Consolidated Financial      Statements                                                              | 8                   |
|   Item 2.  Management’s Discussion and      Analysis of Financial Condition and Results of      Operations | 16                  |
|   Item 3a.  Quantitative and Qualitative      Disclosure About Market Risk                                            |  22            |
|   Item 4T.  Controls      and Procedures                                                                              | 22                  |
|  Part      II. Other      Information                                                                                      |                |
|   Item 1A.  Risk    Factors                                                                                           |   23      |
|   Item 6.       Exhibits                                                                                              | 23                  |
|  Signatures                                                                                                                     | 24                  |

----

| ASSETS                                                                                                |   | April      30,  |   |   |    | October      31, |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------------|--------|--------|---------|------------------|--------|
|                                                                                                  |   | 2010(Unaudited) |   |   |    | 2009(Audited)    |   |
| Current      assets:                                                                                  |   |            |   |   |    |             |   |
|           Cash and cash equivalents                                               | $      | -               |   |   | $  | 1,159,282        |   |
|           Accounts receivable, net of allowance of $1,437,000 and      $1,353,000 |   | 17,880,390      |   |   |    | 18,424,310       |   |
|      Inventories                                                             |   | 10,193,261      |   |   |    | 11,161,977       |   |
|  Income tax refund                                                                               |   | 1,974,678       |   |   |    | 1,911,400        |   |
|           Other current assets                                                    |   | 1,309,117       |   |   |    | 925,120          |   |
|           Deferred income tax assets                                              |   | 1,060,509       |   |   |    | 1,000,847        |   |
|     Total current      assets                                                     |   | 32,417,955      |   |   |    | 34,582,936       |   |
|                                                                                                  |   |            |   |   |    |             |   |
|           Property and equipment, at cost:                                        |   |            |   |   |    |             |   |
|      Land                                                                    |   | 2,016,148       |   |   |    | 2,016,148        |   |
|      Buildings and      improvements                                         |   | 11,823,196      |   |   |    | 11,806,238       |   |
|      Machinery and      equipment                                            |   | 57,304,123      |   |   |    | 57,481,742       |   |
|      Furniture and      fixtures                                             |   | 4,134,979       |   |   |    | 4,129,537        |   |
|      Vehicles                                                                |   | 3,141,722       |   |   |    | 3,145,772        |   |
|                                                                                                  |   | 78,420,168      |   |   |    | 78,579,437       |   |
|      Less accumulated      depreciation                                      |   | (54,623,569     | )      |   |    | (53,170,108      | )      |
|                                                                                                  |   | 23,796,599      |   |   |    | 25,409,329       |   |
|                                                                                                  |   |            |   |   |    |             |   |
|          Goodwill                                                                      |   | 15,332,283      |   |   |    | 15,332,283       |   |
|          Deferred financing costs                                                      |   | 1,309,464       |   |   |    | 1,199,199        |   |
| Other intangibles,      net of accumulated amortization                                               |   | 5,420,285       |   |   |    | 5,645,078        |   |
|          Trademark      & masthead                                            |   | 10,001,812      |   |   |    | 10,001,812       |   |
|     Deferred tax asset, net of currentportion                                          |   | 8,526,272       |   |   |    | 8,799,518        |   |
|           Other assets                                                            |   | 343,308         |   |   |    | 51,738           |   |
|                                                                                                  |   | 40,933,424      |   |   |    | 41,029,628       |   |
|     Total      assets                                                             | $      | 97,147,978      |   |   | $       | 101,021,893      |   |

----

| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                                           | April      30,  |       | October      31, |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|------------|------------------|---------|
|                                                                                                                                                                                                                      | 2010(Unaudited) |       | 2009(Audited)    |    |
| Current      liabilities:                                                                                                                                                                                                 |            |       |             |    |   |   |
|     Notes      payable, line of credit                                                                                                                                                                |  $         | -          |             |  $ | 8,725,496  |   |
|          Negative book cash balances                                                                                                                                                                       |            | 1,298,725  |             |    | - |   |
|   Accounts      payable                                                                                                                                                                                         |            | 4,768,715  |             |    | 4,637,199 |   |
|   Accrued payroll and      commissions                                                                                                                                                                          |            | 2,085,166  |             |    | 2,392,971 |   |
|   Taxes accrued and      withheld                                                                                                                                                                               |            | 1,620,605  |             |    | 1,391,718 |   |
|   Accrued      expenses                                                                                                                                                                                         |            | 2,148,271  |             |    | 2,027,266 |   |
|          Other current liabilities                                                                                                                                                                         |            | 442,560    |             |    | 962,893  |   |
|   Current portion of long-term      debt:                                                                                                                                                                       |            |       |             |    |   |   |
|                   Notes payable                                                                                                                               |            | 5,389,767  |             |    | 57,024,424 |   |
|      Total current      liabilities                                                                                                                                                              |            | 17,753,809 |             |    | 77,161,967 |   |
|                                                                                                                                                                                                                      |            |       |             |    |   |   |
| Long-term      debt, net of current portion:                                                                                                                                                                              |            |       |             |    |   |   |
| Notes      payable, line of credit                                                                                                                                                                                        |            | 10,105,496 |             |    | - |   |
|              Notes payable, term                          |            | 46,085,557 |             |    | 918,436 |   |
|        Other      liabilities                                                                                                                                                          |            | 6,450      |             |    | 7,350 |   |
|      Total liabilities                                                                                                                                                                           |            | 73,951,312 |             |    | 78,087,753 |   |
| Shareholders’      equity:                                                                                                                                                                                          |            |       |             |    |   |   |
|   Common stock, $1 par value, 20,000,000 shares      authorized;  9,987,913 shares issued and      outstanding                                                                                        |            | 9,987,913  |             |    | 9,987,913 |   |
|   Additional paid-in      capital                                                                                                                                                                               |            | 22,768,610 |             |    | 22,768,610 |   |
|   Retained      deficit                                                                                                                                                                                         |            | (9,701,608 | )                |    | (9,822,383) |   |
|     Other      comprehensive income                                                                                                                                               |            | 141,751    |             |    | - |   |
|      Total shareholders’      equity                                                                                                                                                       |            | 23,196,666 |             |    | 22,934,140 |   |
|  Total liabilities and shareholders’      equity                                                                                                                                                               | $               | 97,147,978 |             | $       | 101,021,893 |   |

----

|                                                                        |   | Three      Months EndedApril      30, | Six      Months EndedApril      30, |   |
|----------------------------------------------------------------------------------|--------|---------------------------------------|-------------------------------------|--------|
|                                                                             |   |                                  |                                |   |   |  (Restated) |   |   |   |   |   |  (Restated) |   |
|                                                                             |   |                                  | 2010                                |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                                                        |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
|   Printing                                                             |   | $                                     | 21,716,395                          |   | $ | 23,172,311 |   | $ | 41,465,866 |   | $ | 46,313,132 |   |
|   Office products and office      furniture                            |   |                                  | 8,352,579                           |   |   | 9,105,845 |   |   | 16,614,293 |   |   | 18,343,247 |   |
|   Newspaper                                                            |   |                                  | 3,670,371                           |   |   | 3,861,516 |   |   | 8,046,432 |   |   | 8,374,306 |   |
|     Total      revenues                                      |   |                                  | 33,739,345                          |   |   | 36,139,672 |   |   | 66,126,591 |   |   | 73,030,685 |   |
|                                                                             |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales & newspaper operating costs:                              |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
|   Printing                                                             |   |                                  | 15,494,951                          |   |   | 17,143,914 |   |   | 30,216,325 |   |   | 35,118,707 |   |
|   Office products and office      furniture                            |   |                                  | 5,817,480                           |   |   | 6,424,851 |   |   | 11,748,501 |   |   | 13,121,501 |   |
|   Newspaper cost of sales & operating      costs              |   |                                  | 2,022,702                           |   |   | 2,132,349 |   |   | 4,151,308 |   |   | 4,572,651 |   |
|     Total cost of sales & newspaper      operating costs |   |                                  | 23,335,133                          |   |   | 25,701,114 |   |   | 46,116,134 |   |   | 52,812,859 |   |
| Gross      profit                                                                |   |                                  | 10,404,212                          |   |   | 10,438,558 |   |   | 20,010,457 |   |   | 20,217,826 |   |
|                                                                             |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
|     Selling,      general and administrative expenses        |   |                                  | 8,466,761                           |   |   | 8,813,674 |   |   | 17,183,406 |   |   | 18,590,787 |   |
|                                                                             |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
| Income      from operations                                                      |   |                                  | 1,937,451                           |   |   | 1,624,884 |   |   | 2,827,051 |   |   | 1,627,039 |   |
| Other      income (expenses):                                                    |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
|           Interest income                                    |   |                                  | -                                   |   |   | 47 |   |   | - |   |   | 2,771 |   |
|           Interest expense                                   |   |                                  | (1,362,639                          | )      |   | (1,169,984 | ) |   | (2,932,450 | ) |   | (2,269,317 | ) |
|           Other                                              |   |                                  | 7,085                               |   |   | 10,653 |   |   | 311,666 |   |   | 34,766 |   |
|                                                                             |   |                                  | (1,355,554                          | )      |   | (1,159,284 | ) |   | (2,620,784 | ) |   | (2,231,780 | ) |
|                                                                             |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
| Income (loss)      before income taxes                                      |   |                                  | 581,897                             |   |   | 465,600 |   |   | 206,267 |   |   | (604,741) |   |
|           Income tax (expense) benefit                       |   |                                  | (248,436                            | )      |   | (170,185 | ) |   | (85,492 | ) |   | 265,787 |   |
| Net      income (loss)                                                           |   | $                                     | 333,461                             |   | $ | 295,415 |   | $ | 120,775 |   | $ | (338,954) |   |
|                                                                             |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) per share                                                   |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
|           Basic                                              |   | $                                     | 0.03                                |   | $ | 0.03 |   | $ | 0.01 |   | $ | (0.03) |   |
|           Diluted                                            |   | $                                     | 0.03                                |   | $ | 0.03 |   | $ | 0.01 |   | $ | (0.03) |   |
|                                                                             |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                        |   |                                  |                                |   |   |   |   |   |   |   |   |   |   |
|           Basic                                              |   |                                  | 9,988,000                           |   |   | 9,988,000 |   |   | 9,988,000 |   |   | 9,988,000 |   |
|           Diluted                                            |   |                                  | 9,988,000                           |   |   | 9,988,000 |   |   | 9,988,000 |   |   | 9,988,000 |   |
| Dividends      per share                                                         |   | $                                     | -                                   |   | $ | - |   | $ | - |   | $ | 0.06 |   |

----

|                                                    |              |      |    |    | Additional |   |                      |       |   Other  |    |       |   |
|---------------------------------------------------------|-------------------|-----------|---------|---------|------------|--------|---------------------------|------------|--------------------|---------|------------|--------|
|                                                    | Common      Stock |      | Paid-In |    | Retained   |   |   Comprehensive |       |               |    |
|                                                    | Shares            |      | Amount  |    | Capital    |   | Deficit                   |       |   Income |    | Total      |   |
| Balance, October 31,      2009                          |              | 9,987,913 |    |  $ | 9,987,913  |   |  $                   | 22,768,610 |               |  $ | (9,822,383 | )      |  $ | - |   |  $ | 22,934,140 |   |
|                                                    |              |      |    |    |       |   |                      |       |               |    |       |   |   |   |   |   |   |   |
| Comprehensive      income:                              |              |      |    |    |       |   |                      |       |               |    |       |   |   |   |   |   |   |   |
|   Net income for 2010                    |              | -         |    |    | -          |   |                      | -          |               |    | 120,775    |   |   |  - |   |   | 120,775 |   |
| Other      comprehensive income (net of tax)            |              | -         |    |    | -          |   |                      | -          |               |    | -          |   |   | 141,751 |   |   | 141,751 |   |
|     Total      comprehensive income |              | -         |    |    | -          |   |                      | -          |               |    | 120,775    |   |   | 141,751 |   |   | 262,526 |   |
| Balance,      April 30, 2010                            |              | 9,987,913 |    | $       | 9,987,913  |   | $                         | 22,768,610 |               | $       | (9,701,608 | )      | $ |  141,751 |   | $ | 23,196,666 |   |

----

|                                                                                           |   | Six      Months Ended April 30, |        |
|------------------------------------------------------------------------------------------------|--------|---------------------------------|-------------|
|                                                                                           |   |                            |        |  (Restated) |   |
|                                                                                           |   | 2010                            |        | 2009 |   |
| Cash      flows from operating activities:                                                     |   |                            |        |   |   |
| Net      income (loss)                                                                         |   | $                               | 120,775     |   | $ | (338,954) |   |
| Adjustments      to reconcile net income (loss) to cash      provided by operating activities: |   |                            |        |   |   |   |   |
|   Depreciation and      amortization                                                 |   |                            | 2,188,029   |   |   | 2,622,704 |   |
|   Gain on sale of      assets                                                        |   |                            | 10,686      |   |   | (15,844 | ) |
|   Deferred income      taxes                                                         |   |                            | 119,082     |   |   | 889,435 |   |
|   Deferred financing      costs or compensation                                 |   |                            | 161,550     |   |   | 154,735 |   |
|   Bad debt      expense                                                              |   |                            | 201,298     |   |   | 514,607 |   |
|   Gain on hedging      agreements                                                    |   |                            | (284,079    | ) |   | -  |   |
|   Changes in assets      and liabilities:                                            |   |                            |        |   |   |   |   |
|     Accounts      receivable                                               |   |                            | 342,622     |   |   | 4,532,512 |   |
|     Inventories                                                            |   |                            | 968,716     |   |   | 904,526 |   |
|     Other current      assets                                              |   |                            | (383,997    | ) |   | (588,923 | ) |
|     Accounts      payable                                                  |   |                            | 131,517     |   |   | (1,261,903 | ) |
|     Accrued      payroll                                                   |   |                            | (307,805    | ) |   | (464,739 | ) |
|     Taxes accrued and      withheld                                        |   |                            | 228,887     |   |   | 446,397 |   |
|     Income      taxes                                                      |   |                            | (63,280     | ) |   | (1,160,406) |   |
|     Accrued      expenses                                                  |   |                            | 121,005     |   |   | 316,229 |   |
|     Other      liabilities                                                 |   |                            | (900        | ) |   | (900 | ) |
|           Net cash provided by operating activities                        |   |                            | 3,554,106   |   |   | 6,549,476 |   |
|                                                                                           |   |                            |        |   |   |   |   |
| Cash      flows from investing activities:                                                     |   |                            |        |   |   |   |   |
| Purchases      of property and equipment                                                       |   |                            | (179,393    | ) |   | (1,544,375 | ) |
| Proceeds      from sales of property                                                           |   |                            | 20,192      |   |   | 55,008 |   |
| Change in      other assets                                                               |   |                            | (297,570    | ) |   | 2,584 |   |
|           Net cash used in investing activities                            |   |                            | (456,771    | ) |   | (1,486,783 | ) |
|                                                                                           |   |                            |        |   |   |   |   |
| Cash      flows from financing activities:                                                     |   |                            |        |   |   |   |   |
| Borrowings      on line of credit                                                              |   |                            | 20,440,000  |   |   | 600,000 |   |
| Payments      on line of credit                                                                |   |                            | (19,060,000 | ) |   | - |   |
| Increase      (decrease) in negative book cash balances                                   |   |                            | 1,298,725   |   |   | (459,355) |   |
| Principal      payments on long-term debt                                                      |   |                            | (6,663,527  | ) |   | (4,604,061 | ) |
| Payments      on debt amendment costs                                                          |   |                            | (271,815    | ) |   | -  |   |
| Dividends      paid                                                                            |   |                            | -           |   |   | (599,277 | ) |
|           Net cash used in financing activities                            |   |                            | (4,256,617  | ) |   | (5,062,693 | ) |
| Net      decrease in cash and cash equivalents                                            |   |                            | (1,159,282  | ) |   | - |   |
| Cash      and cash equivalents, beginning of period                                            |   |                            | 1,159,282   |   |   | - |   |
| Cash      and cash equivalents, end of period                                                  |   | $                               | -           |   | $ | - |   |

----

----

|                                       |   | April      30, |       | October      31, |   |
|--------------------------------------------|--------|----------------|------------|------------------|--------|
|                                       |   | 2010           |       | 2009             |   |
| Printing      and newspaper:               |   |           |       |             |   |
|     Rawmaterials       |   | $              | 2,847,382  |             | $      | 2,854,938 |   |
|     Work in    process |   |           | 1,371,423  |             |   | 1,405,320 |   |
|     Finished    goods  |   |           | 3,400,416  |             |   | 3,765,244 |   |
| Office      products and office furniture  |   |           | 2,574,040  |             |   | 3,136,475 |   |
|                                       |   | $              | 10,193,261 |             | $      | 11,161,977 |   |

|                                                      |   | April      30, |       | October      31, |    |
|-----------------------------------------------------------|--------|----------------|------------|------------------|---------|
|                                                      |   | 2010           |       | 2009             |    |
| Installment      notes payable to banks & shareholder |   |  $        | 4,292,882  |             |  $ | 1,310,418 |   |
| Term      loan facility with a bank                  |   |           | 47,182,442 |             |    | 56,632,442 |   |
|                                                      |   |           | 51,475,324 |             |    | 57,942,860 |   |
| Less      current portion                                 |   |           | 5,389,767  |             |    | 57,024,424 |   |
| Long-term      debt, net of current portion               |   | $              | 46,085,557 |             | $       | 918,436 |   |

----

      -  a $17,000,000 revolving credit  facility with a sublimit of up to $3,000,000 for letters of credit and  $3,000,000 for swing line loans. Outstanding borrowings, thereunder, may not  exceed the sum of (1) up to 85% of eligible receivables plus (b) up to the  lesser of $6,000,000 or 50% of eligible inventory.  
      -  at Champions option, interest at  a LIBOR Rate, so long as no default exists. 
      -  post-default increase in  interest rate of 2%. 
      -  amendment of various financial  covenants. 
      -  fixed charge coverage ratio is  required to be 1.0:1.0 through January 31, 2011; 1.1:1.0 through January 31,  2012 and 1.20:1.00 thereafter. 
      -  leverage ratio shall not be  greater the 6.5:1.00 at April 30, 2010 with 0.5:1.00 stepdowns quarterly  through April 30, 2011 and 0.25:1.00 quarterly stepdowns through April 30,  2012. 
      -  minimum EBITDA pursuant to a  quarterly build up commencing with the three months ended April 30, 2010 of  $2,700,000, the six months ended July 31, 2010 of $5,400,000, the nine months  ended October 31, 2010 of $8,900,000 and the twelve months ended January 31,  2011 of $11,800,000, thereafter varying quarterly stepups culminating in  twelve months trailing EBITDA of $14,300,000 at October 31, 2012. 
      -  maximum capital expenditures are  limited to $2,000,000 per fiscal year  for the years ended October 31,  2010 and 2011 and $2,500,000 thereafter. 
      -  enhanced reporting by Champion  to Administrative Agent, including monthly reports and conference calls,  quarterly reports by Champions independent auditors of restructuring charges  and organizational expense reductions. 
      -  application of Champion's income  tax refunds applied to reduce indebtedness under the Credit  Agreement. 

----

|                                 |   | Payments      Due by Fiscal Year |
|--------------------------------------|--------|----------------------------------|
| Contractual      Obligations         |   | 2010                             |   | 2011 |   | 2012 |   | 2013 |   | 2014 |   |   | Total |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Non-cancelable      operating leases |   | $                                | 682,638 |   | $ | 1,096,190 |   | $ | 932,343 |   |  $ | 845,884 |   |  $ | 271,640 |   |  $ | 3,828,695 |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revolving      line of credit        |   |                             | - |   |   | - |   |   |  10,105,496 |   |   | - |   |   | - |   |   |  10,105,496 |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Term      debt                       |   |                             | 2,709,650 |   |   | 5,358,068 |   |   | 5,218,711 |   |   |  35,118,880 |   |   | 3,070,015 |   |   | 51,475,324 |   |
|                                 |   | $                                | 3,392,288 |   | $ | 6,454,258 |   | $ | 16,256,550 |   | $ | 35,964,764 |   | $ | 3,341,655 |   | $ | 65,409,515 |   |

----

| 2010      Quarter 2                      |   | Printing |       | Office      Products & Furniture |   | Newspaper  |   | Total  |       |
|------------------------------------------|--------|----------|------------|--------------------------------------|--------|------------|--------|--------|------------|
|                                     |   |     |       |                                 |   |       |   |   |       |
| Revenues                                 |   | $        | 24,535,723 |                                 | $      | 9,954,527  |   | $      | 3,670,371  |   | $ | 38,160,621 |   |
| Elimination      of intersegment revenue |   |     | (2,819,328 | )                                    |   | (1,601,948 | )      |   | -          |   |   | (4,421,276 | ) |
| Consolidated      revenues               |   | $        | 21,716,395 |                                 | $      | 8,352,579  |   | $      | 3,670,371  |   | $ | 33,739,345 |   |
|                                     |   |     |       |                                 |   |       |   |   |       |   |   |   |   |
| Operating      income                    |   |     | 646,608    |                                 |   | 582,585    |   |   | 708,258    |   |   | 1,937,451 |   |
| Depreciation      & amortization     |   |     | 766,334    |                                 |   | 31,103     |   |   | 172,951    |   |   | 970,388 |   |
| Capital      expenditures                |   |     | 141,388    |                                 |   | 5,442      |   |   | 18,088     |   |   | 164,918 |   |
| Identifiable      assets                 |   |     | 42,351,465 |                                 |   | 7,135,218  |   |   | 35,861,620 |   |   | 85,348,303 |   |
| Goodwill                                 |   |     | 2,226,837  |                                 |   | 1,230,485  |   |   | 11,874,961 |   |   | 15,332,283 |   |
|                                     |   |     |       |                                 |   |       |   |   |       |   |   |   |   |
| 2009      Quarter 2                      |   | Printing |       | Office      Products & Furniture |   | Newspaper  |   | Total  |       |
|                                     |   |     |       |                                 |   |       |   |   |       |   |   |   |   |
| Revenues                                 |   | $        | 25,871,730 |                                 | $      | 10,777,243 |   | $      | 3,861,516  |   | $ | 40,510,489 |   |
| Elimination      of intersegment revenue |   |     | (2,699,419 | )                                    |   | (1,671,398 | )      |   | -          |   |   | (4,370,817 | ) |
| Consolidated      revenues               |   | $        | 23,172,311 |                                 | $      | 9,105,845  |   | $      | 3,861,516  |   | $ | 36,139,672 |   |
|                                     |   |     |       |                                 |   |       |   |   |       |   |   |   |   |
| Operating      income                    |   |     | 691,331    |                                 |   | 548,318    |   |   | 385,235    |   |   | 1,624,884 |   |
| Depreciation      & amortization     |   |     | 834,143    |                                 |   | 45,569     |   |   | 426,672    |   |   | 1,306,384 |   |
| Capital      expenditures                |   |     | 968,343    |                                 |   | 10,734     |   |   | 4,551      |   |   | 983,628 |   |
| Identifiable      assets                 |   |     | 45,622,789 |                                 |   | 8,929,626  |   |   | 78,657,542 |   |   | 133,209,957 |   |
| Goodwill                                 |   |     | 2,226,837  |                                 |   | 1,230,485  |   |   | 35,437,456 |   |   | 38,894,778 |   |

----

| 2010      Year to Date                   |   |  Printing |       | Office      Products&      Furniture |   |  Newspaper |   | Total   |       |
|------------------------------------------|--------|----------------|------------|------------------------------------------|--------|-----------------|--------|---------|------------|
|                                     |   |           |       |                                     |   |            |   |    |       |   |   |   |   |
| Revenues                                 |   | $              | 46,931,754 |                                     | $      | 19,846,919      |   | $  | 8,046,432  |   | $ | 74,825,105 |   |
| Elimination      of intersegment revenue |   |           | (5,465,888 | )                                        |   | (3,232,626      | )      |    | -          |   |   | (8,698,514 | ) |
| Consolidated      revenues               |   | $              | 41,465,866 |                                     | $      | 16,614,293      |   | $  | 8,046,432  |   | $ | 66,126,591 |   |
|                                     |   |           |       |                                     |   |            |   |    |       |   |   |   |   |
| Operating      income                    |   |           | 152,045    |                                     |   | 951,837         |   |    | 1,723,169  |   |   | 2,827,051 |   |
| Depreciation      & amortization     |   |           | 1,552,524  |                                     |   | 68,936          |   |    | 566,569    |   |   | 2,188,029 |   |
| Capital      expenditures                |   |           | 322,467    |                                     |   | 9,488           |   |    | 43,429     |   |   | 375,384 |   |
| Identifiable      assets                 |   |           | 42,351,465 |                                     |   | 7,135,218       |   |    | 35,861,620 |   |   | 85,348,303 |   |
| Goodwill                                 |   |           | 2,226,837  |                                     |   | 1,230,485       |   |    | 11,874,961 |   |   | 15,332,283 |   |

| 2009      Year to Date                   |   |  Printing |       | Office      Products&      Furniture |   |  Newspaper |   | Total   |       |
|------------------------------------------|--------|----------------|------------|------------------------------------------|--------|-----------------|--------|---------|------------|
|                                     |   |           |       |                                     |   |            |   |    |       |   |   |   |   |
| Revenues                                 |   | $              | 51,684,048 |                                     | $      | 21,788,166      |   | $  | 8,374,306  |   | $ | 81,846,520 |   |
| Elimination      of intersegment revenue |   |           | (5,370,916 | )                                        |   | (3,444,919      | )      |    | -          |   |   | (8,815,835 | ) |
| Consolidated      revenues               |   | $              | 46,313,132 |                                     | $      | 18,343,247      |   | $  | 8,374,306  |   | $ | 73,030,685 |   |
|                                     |   |           |       |                                     |   |            |   |    |       |   |   |   |   |
| Operating      income (loss)             |   |           | (218,420)  |                                     |   | 797,969         |   |    | 1,047,490  |   |   | 1,627,039 |   |
| Depreciation      & amortization     |   |           | 1,674,256  |                                     |   | 95,958          |   |    | 852,490    |   |   | 2,622,704 |   |
| Capital      expenditures                |   |           | 1,436,316  |                                     |   | 67,871          |   |    | 40,188     |   |   | 1,544,375 |   |
| Identifiable      assets                 |   |           | 45,622,789 |                                     |   | 8,929,626       |   |    | 78,657,542 |   |   | 133,209,957 |   |
| Goodwill                                 |   |           | 2,226,837  |                                     |   | 1,230,485       |   |    | 35,437,456 |   |   | 38,894,778 |   |

----

|                                                |   | Three      months | Six      months |
|-----------------------------------------------------|--------|-------------------|-----------------|
|                                                |   |              | 2010            |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                           |   |              |            |   |   |   |   |   |   |   |   |   |   |
| Total      segment revenues                         |   | $                 | 38,160,621      |   | $ | 40,510,489 |   | $ | 74,825,105 |   | $ | 81,846,520 |   |
| Elimination      of intersegment revenue            |   |              | (4,421,276      | ) |   | (4,370,817 | ) |   | (8,698,514 | ) |   | (8,815,835 | ) |
| Consolidated      revenue                           |   | $                 | 33,739,345      |   | $ | 36,139,672 |   | $ | 66,126,591 |   | $ | 73,030,685 |   |
|                                                |   |              |            |   |   |   |   |   |   |   |   |   |   |
| Operating      income:                              |   |              |            |   |   |   |   |   |   |   |   |   |   |
| Total      segment operating income                 |   | $                 | 1,937,451       |   | $ | 1,624,884 |   | $ | 2,827,051 |   | $ | 1,627,039 |   |
| Interest      income                                |   |              | -               |   |   | 47 |   |   | - |   |   | 2,771 |   |
| Interest      expense                               |   |              | (1,362,639      | ) |   | (1,169,984 | ) |   | (2,932,450 | ) |   | (2,269,317 | ) |
| Other      income                                   |   |              | 7,085           |   |   | 10,653 |   |   | 311,666 |   |   | 34,766 |   |
| Consolidated      income (loss) before income taxes |   | $                 | 581,897         |   | $ | 465,600 |   | $ | 206,267 |   | $ | (604,741) |   |
|                                                |   |              |            |   |   |   |   |   |   |   |   |   |   |
| Identifiable      assets:                           |   |              |            |   |   |   |   |   |   |   |   |   |   |
| Total      segment identifiable assets              |   | $                 | 85,348,303      |   | $ | 133,209,957 |   | $ | 85,348,303 |   | $ | 133,209,957 |   |
| Assets      not allocated to a segment              |   |              | 11,799,675      |   |   | 2,398,851 |   |   | 11,799,675 |   |   | 2,398,851 |   |
| Total      consolidated assets                      |   | $                 | 97,147,978      |   | $ | 135,608,808 |   | $ | 97,147,978 |   | $ | 135,608,808 |   |

----

|                    |   | Fair      Value Measurements as of |                                              |
|-------------------------|--------|------------------------------------|---------------------------------------------------|
|                    |   | April      30, 2010                |                                              |
|                    |   | Level      1                       |                                              |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Liabilities:            |   |                               |                                              |   |   |   |   |   |   |   |   |   |
| Interest      rate swap |   | $                                  |              - |   |   | $ | 442,560 |   |   | $ |              - |   |   | $ | 442,560 |   |

|                    |   | Fair      Value Measurements as of |                                              |
|-------------------------|--------|------------------------------------|---------------------------------------------------|
|                    |   | April      30, 2009                |                                              |
|                    |   | Level      1                       |                                              |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Liabilities:            |   |                               |                                              |   |   |   |   |   |   |   |   |   |
| Interest      rate swap |   | $                                  |              - |   |   | $ | 1,289,119 |   |   | $ |              - |   |   | $ | 1,289,119 |

----

|                                                                |   | Percentage      of Total Revenues     |
|---------------------------------------------------------------------|--------|---------------------------------------|
|                                                                |   | Three      Months EndedApril      30, | Six      Months EndedApril      30, |
|                                                                |   |                                  |   |   |   | (Restated) |   |   |   |   |   |  (Restated) |   |
|                                                                |   |                                  | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                                           |   |                                  |   |   |   |   |   |   |   |   |   |                         |   |
|               Printing      |   |                                  | 64.4 | % |   | 64.1 | % |   | 62.7 | % |   | 63.4 | % |
|    Office products and office furniture              |   |                                  | 24.8 |   |   | 25.2 |   |   | 25.1 |   |   | 25.1 |   |
|               Newspaper     |   |                                  | 10.8 |   |   | 10.7 |   |   | 12.2 |   |   | 11.5 |   |
|     Total      revenues                         |   |                                  | 100.0 |   |   | 100.0 |   |   | 100.0 |   |   | 100.0 |   |
|                                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales and newspaper operating costs:              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|          Printing      |   |                                  | 45.9 |   |   | 47.4 |   |   | 45.7 |   |   |                   48.0 |   |
|          Office      products and office furniture   |   |                                  | 17.3 |   |   | 17.8 |   |   | 17.7 |   |   | 18.0 |   |
|    Newspaper      cost of sales and operating costs  |   |                                  | 6.0 |   |   | 5.9 |   |   | 6.3 |   |   | 6.3 |   |
|    Total cost of sales and newspaper operating      costs |   |                                  | 69.2 |   |   | 71.1 |   |   | 69.7 |   |   | 72.3 |   |
|              Gross profit        |   |                                  | 30.8 |   |   | 28.9 |   |   | 30.3 |   |   | 27.7 |   |
| S  Selling,      general and administrative expenses      |   |                                  | 25.1 |   |   | 24.4 |   |   | 26.0 |   |   | 25.5 |   |
| Income      from operations                                         |   |                                  | 5.7 |   |   | 4.5 |   |   | 4.3 |   |   | 2.2 |   |
|           Interest income                       |   |                                  | 0.0 |   |   | 0.0 |   |   | 0.0 |   |   | 0.0 |   |
|           Interest expense                      |   |                                  | (4.0 | ) |   | (3.2 | ) |   | (4.4 | ) |   | (3.1 | ) |
|      Other      income                     |   |                                  | 0.0 |   |   | 0.0 |   |   | 0.4 |   |   | 0.0 |   |
|                                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before taxes                                |   |                                  | 1.7 |   |   | 1.3 |   |   | 0.3 |   |   | (0.9) |   |
|           Income tax benefit (expense)          |   |                                  | (0.7 | ) |   | (0.5 | )  |   | (0.1 | ) |   | 0.4 |   |
| Net      income (loss)                                              |   |                                  | 1.0 | % |   | 0.8 | % |   | 0.2 | % |   | (0.5) | % |

----

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----

----

|  | a)      Exhibits: |   |   |
|--|-------------------|--------|--------|

| (10.1) | Second      Amendment and Waiver to Credit Agreement dated March 31, 2010 among      Champion Industries, Inc. and Fifth Third Bank, as Lender, L/C Issuer and      Administrative Agent for Lenders, filed as Exhibit 10.1 to Current Report      on Form 8-K filed on April 6, 2010, is incorporated herein by      reference. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10.2) | Contribution      Agreement and Cash Collateral Security Agreement dated March 31, 2010      among Marshall Reynolds, Champion Industries, Inc. and Fifth Third Bank,      as Administrative Agent for Lenders, filed as Exhibit 10.2 to Current      Report on Form 8-K filed on April 6, 2010, is incorporated herein by      reference. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10.3) | Subordinated      Promissory Note dated March 31, 2010 from Champion Industries, Inc. to      Marshall Reynolds, filed as Exhibit 10.3 to Current Report on Form 8-K      filed on April 6, 2010, is incorporated herein by    reference. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (31.1) | Principal      Executive Officer Certification Pursuant to Section 302 of the      Sarbanes-Oxley act of 2002 - Marshall T. Reynolds                                                       |   | Exhibit      31.1 Page Exhibit 31.1-p1 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|
|   |                                                                                                                                                                                       |   |                                   |
| (31.2) | Principal      Financial Officer Certification Pursuant to Section 302 of the      Sarbanes-Oxley act of 2002 - Todd R. Fry                                                                |   | Exhibit      31.2 Page Exhibit 31.2-p1 |
|   |                                                                                                                                                                                       |   |                                   |
| (31.3) | Principal      Operating Officer Certification Pursuant to Section 302 of the      Sarbanes-Oxley act of 2002 - Toney K. Adkins                                                            |   | Exhibit      31.3 Page Exhibit 31.3-p1 |
|   |                                                                                                                                                                                       |   |                                   |
| (32)   | Marshall      T. Reynolds, Todd R. Fry and Toney K. Adkins Certification Pursuant to 18      U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the      Sarbanes-Oxley act of 2002 |   | Exhibit      32 Page Exhibit 32-p1     |

----

| Date: June      10, 2010 | /s/      Marshall T. Reynolds                         |
|-------------------------------|-------------------------------------------------------|
|                          | Marshall      T. Reynolds                             |
|                          | Chief      Executive Officer                          |
|                          |                                                  |
|                          |                                                  |
| Date: June      10, 2010 | /s/      Toney K. Adkins                              |
|                          | Toney      K. Adkins                                  |
|                          | President      and Chief Operating Officer            |
|                          |                                                  |
|                          |                                                  |
| Date: June      10, 2010 | /s/      Todd R. Fry                                  |
|                          | Todd      R. Fry                                      |
|                          | Senior      Vice President and Chief FinancialOfficer |

----