| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| West Virginia                                                        |   | 55-0717455                                           |
|----------------------------------------------------------------------|--------|------------------------------------------------------|
| (State or other jurisdiction of  incorporation or organization) |   | (I.R.S. Employer Identification No.)                 |
|                                                                 |   |                                                 |
| 2450 First AvenueP.O. Box 2968Huntington, West Virginia              |   |   25728                                    |
| (Address of Principal Executive Offices)                        |   | (Zip Code)        |

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| Registrant's telephone number, including area code: (304) 528-2700                          |                                                                    |
|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|
|  Securities registered pursuant to Section 12(b) of Act: Common Stock, $1.00 par value | The NASDAQ Stock Market, LLC(Name of each exchange on which registered) |
|   Securities registered pursuant to Section 12(g) of Act: None                         |                                                                    |

|   | Yes oNo x |
|--------|-----------|

|   | Yes oNo x |
|--------|-----------|

|   | Yes xNo o |
|--------|-----------|

|   |  o |
|--------|---------|

| Large accelerated filer o  | Accelerated filer o              |
|---------------------------------|----------------------------------|
| Non-accelerated filter o        | Smaller reporting company x |

|   | Yes oNo x |
|--------|-----------|

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|  Division                                     |   | Sales & Customer Service |    |  Pre-Press |    |  Sheet Printing |  Rotary Printing |    |  Full Color |    |  High Volume Full Color |  Output Solutions |
|----------------------------------------------------|--------|------------------------------|--------------|-----------------|--------------|----------------------|-----------------------|--------------|------------------|--------------|------------------------------|------------------------|
|                                               |   |                         |         |            |         |                 |                  |         |             |         |                         |                   |
|  Huntington                                   |   |  *                      |         |  *         |         |  *              |  *               |         |             |         |                         |                   |
|  Charleston / Morgantown                      |   |  *                      |         |  *         |         |                 |                  |         |             |         |                         |                   |
|  Champion Output Solutions                    |   |   *                     |         |            |         |                 |                  |         |             |         |                         |   *               |
|  Parkersburg                                  |   |  *                      |         |  *         |         |  *              |                  |         |  *          |         |                         |                   |
|  Lexington                                    |   |  *                      |         |  *         |         |                 |                  |         |             |         |                         |                   |
|  Champion Graphic Communications(Baton Rouge) |   |  *                      |         |  *         |         |  *              |                  |         |  *          |         |                         |                   |
|  Champion Graphic Communications(New Orleans) |   |  *                      |         |            |         |                 |                  |         |             |         |                         |                   |
|  Carolina Cut Sheets, Inc.                    |   |  *                      |         |            |         |                 |                  |         |             |         |                         |                   |
|  U.S. Tag & Ticket Company, Inc.          |   |  *                      |         |  *         |         |                 | *                     |         |             |         |                         |                   |
|  Donihe Graphics, Inc.                        |   |  *                      |         |  *         |         |  *              |  *               |         |  *          |         |  *                      |                   |
|  The Merten Company                           |   | *                            |         | *               |         | *                    |                  |         | *                |         |                         |                   |
|  Interform Corporation                        |   |  *                      |         |  *         |         | *                    |                  |         |  *          |         |                         | *                      |
|  Consolidated Graphic Communications          |   | *                            |         | *               |         |                 |                  |         |             |         |                         |                   |
|  Blue Ridge Printing Co., Inc.                |   | *                            |         | *               |         | *                    |                  |         | *                |         |                         |                   |
|  River Cities Printing                        |   | *                            |         | *               |         |                 | *                     |         |             |         |                         |                   |

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|                               |           | Position and offices with Champion;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Name      | Age            | Principal occupation or employment last five years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Marshall T. Reynolds               | 74             | Chief Executive Officer and Chairman of the Board of Directors of the Company from December 1992 to present; President of the Company December 1992 to September 2000; President and General Manager of Harrah and Reynolds, predecessor of the Company from 1964 (and sole shareholder from 1972 to present) to 1993; Chairman of the Board of Directors of River City Associates Inc. (owner of the Pullman Plaza Hotel) since 1989; Chairman of the Board of Directors of Broughton Foods Company from November 1996 to June 1999; Director (from 1983 to November 1993) and Chairman of the Board of Directors (from 1983 to November 1993) of Banc One West Virginia Corporation (formerly Key Centurion Bancshares, Inc.).  |
| Toney K. Adkins          | 61   | President and Chief Operating Officer of the Company since January 2005; Vice President-Administration of the Company from November 1995 to January 2005; President, KYOWVA Corrugated Container Company, Inc. from 1991 to 1996.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  J. Mac Aldridge              | 69             | Senior Vice President of the Company and Division Manager - Stationers since January 2005; Vice President and Division Manager - Stationers from December 1992 to January 2005; Vice President of Company and Division Manager - Huntington from September 1995 to October 1997; President and General Manager of Stationers since November 1989; Sales Representative of Huntington Division of Harrah and Reynolds from July 1983 to October 1989.                                                                                                                                                                                                                                                                              |

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| R. Douglas McElwain | 63 | Senior Vice President and Division Manager - Champion Graphic Communications Division of the Company since January 2005; Vice President and Division Manager - Bourque Printing division of the Company from December 1993 to January 2005; General Manager of Bourque Printing from June 1993 to December 1993; Sales Representative of Charleston Division of Harrah and Reynolds and Company from 1986 until June 1993.                           |
|---------------------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Todd R. Fry         | 45 | Senior Vice President and Chief Financial Officer of the Company since January 2005; Vice President and Chief Financial Officer of the Company from November 1999 to January 2005; Treasurer and Chief Financial Officer of Broughton Foods Company from September 1997 to June 1999; Coopers & Lybrand L.L.P. from 1991 to September 1997.                                                                                                      |
| James A. Rhodes     | 54 | Senior Vice President of the Company since January 2005; Vice President of the Company from March 1999 to January 2005; President of Interform since October 2004; President of Consolidated Graphic Communications Division of Interform since February 1999; Vice President of Sales of Consolidated Graphic Communications from 1996 to 1999; General Sales Manager - Eastern Division of Consolidated Graphic Communications from 1995 to 1996.  |

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|  Property                                     |   |  Division Occupying Property  |   |  Square Feet |   |  Annual Rental |   |  Expiration Of Term |
|----------------------------------------------------|--------|------------------------------------|--------|-------------------|--------|---------------------|--------|--------------------------|
|  2450 1st AvenueHuntington, West Virginia (1) |   |  Chapman Printing- Huntington |   |  85,000      |   |  $116,400      |   |  2013               |
|  1945 5th AvenueHuntington, West Virginia (1) |   |  Stationers                   |   |  37,025      |   |  30,000        |   |  2013               |

----

|  Property                                                                                 |   |  Division Occupying Property    |   |  Square Feet |   |  Annual Rental |   |  Expiration Of Term |
|------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|-------------------|--------|---------------------|--------|--------------------------|
|  615-619 4th AvenueHuntington, West Virginia (1)                                          |   | Stationers                           |   |  59,641      |   |  21,600        |   |  2013               |
|  405 Ann StreetParkersburg, West Virginia (1)                                             |   |  Chapman Printing - Parkersburg |   |  36,614      |   |  57,600        |   |  2013               |
|  890 Russell Cave RoadLexington, Kentucky (1)                                             |   |  Chapman Printing - Lexington   |   |  20,135      |   |  57,600        |   |  2013               |
|  2800 Lynch RoadEvansville, Indiana (1)                                                   |   |  Smith & Butterfield        |   |  42,375      |   |  155,558       |   |  2014               |
|  1901 Mayview RoadBridgeville, Pennsylvania (1)                                           |   |  Interform Corporation          |   |  120,000     |   |  293,503       |   |  2013               |
|  1515 Central ParkwayCincinnati, Ohio (1)                                                 |   |  The Merten Company             |   |  40,000      |   |  107,163       |   |  2011               |
|  1214 Main StreetWheeling, West Virginia (2)                                              |   |  CBI - Wheeling                 |   |  22,000      |   |  37,200        |   | Monthly                  |
|  3000 Washington StreetCharleston, West Virginia (1)                                      |   | Chapman Printing-Charleston          |   |  37,710      |   |  150,000       |   | 2014                     |
|   951 Point Marion RoadMorgantown, West Virginia (1)                                      |   |   Chapman Printing-Charleston   |   |  5,850  |   |  46,020   |   |  2015          |
|   120 Hills Plaza Charleston, West Virginia (3)                                      |   | Champion Output Solutions            |   | 22,523            |   | 115,992             |   |   2011              |
|  Route 2 Industrial LaneHuntington, West Virginia (1)       |   |  The Herald-Dispatch            |   | 35,000            |   | 84,000              |   |  2013               |

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|   |                 |  Fiscal Year 2010       |        |  Fiscal Year 2009 |         |
|--------|----------------------|------------------------------|-------------|------------------------|--------------|
|   |                 | High                         | Low         |                   | High         | Low |   |
|   |  First quarter  |  $1.97                  |  $1.48 |                   |  $ 3.40 |  $ 2.20 |   |
|   |  Second quarter |     1.86 |  1.10  |                   | 3.00         | 1.40 |   |
|   |  Third quarter  |  2.10                   |  1.52  |                   |  1.98   |  1.42 |   |
|   |  Fourth quarter |  1.66                   |  1.10  |                   |  2.09   |  1.65 |   |
|   |                 |                         |        |                   |         |   |   |

|         |                                                                                                             |   Fiscal Year 2011 |  Fiscal Year 2010                                                                       |   |  Fiscal Year 2009 |    |
|--------------|------------------------------------------------------------------------------------------------------------------|-------------------------|----------------------------------------------------------------------------------------------|--------|------------------------|---------|
|    |   First quarter                                                                                             |  $                 |         -         | $      | -                      |  $ | 0.06 |   |
|    |   Second quarter                                                                                            |                    | -                                                                                            |   | -                      |    |  - |   |
|    |   Third quarter                                                                                             |                    | -                                                                                            |   | -                      |    | - |   |
|    |   Fourth quarter                 |                    | -                                                                                            |   | -                      |    | - |   |

----

|                                                                                                                          |   | Year Ended October 31,                          |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|
|                                                                                                                          |   | 2010(4)                                         |   |   | 2009(3) |   |   | 2008 |   |   | 2007 (2) |   |   | 2006 (1) |   |
|                                                                                                                          |   |                                            |   |   |      |   |   | (Restated) |   |   |   |   |   |   |   |
|                                                                                                                          |   | (In thousands, except share and per share data) |
| OPERATING STATEMENT DATA:                                                                                                     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                                                                                     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                                                                                                      |   | $                                               |          80,971 |   |   | $ | 88,990 |   |   | $ | 105,275 |   |   | $ | 104,500 |   |   | $ | 108,475 |   |
| Office products and office furniture                                                                                          |   |                                            | 33,438 |   |   |   | 35,874 |   |   |   | 41,540 |   |   |   | 41,449 |   |   |   | 38,774 |   |
| Newspaper                                                                                                                     |   |                                            |            15,525 |   |   |   | 16,394 |   |   |   | 18,939 |   |   |   | 2,540 |   |   |   | - |   |
| Total revenues                                                                                                                |   |                                            |            129,934 |   |   |   | 141,258 |   |   |   | 165,754 |   |   |   | 148,489 |   |   |   | 147,249 |   |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales & newspaper operating costs:                                                                                |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                                                                                                      |   |                                            |              59,351 |   |   |   | 66,856 |   |   |   | 75,590 |   |   |   | 75,617 |   |   |   | 77,077 |   |
| Office products and office furniture                                                                                          |   |                                            |             23,633 |   |   |   | 24,859 |   |   |   | 28,457 |   |   |   | 28,834 |   |   |   | 26,778 |   |
| Newspaper cost of sales & operating costs                                                                            |   |                                            |                8,327 |   |   |   | 8,715 |   |   |   | 9,492 |   |   |   | 1,188 |   |   |   | - |   |
| Total cost of sales & newspaper operating costs                                                                           |   |                                            |            91,311 |   |   |   | 100,430 |   |   |   | 113,539 |   |   |   | 105,639 |   |   |   | 103,855 |   |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                                                                  |   |                                            |             38,623 |   |   |   | 40,828 |   |   |   | 52,215 |   |   |   | 42,850 |   |   |   | 43,394 |   |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expense                                                                                   |   |                                            |             31,609 |   |   |   | 37,126 |   |   |   | 39,529 |   |   |   | 32,336 |   |   |   | 34,018 |   |
| Restructurings / asset impairments costs                                                                                      |   |                                            |                1,641 |   |   |   | 41,334 |   |   |   | -  |   |   |   | - |   |   |   | -  |   |
| Hurricane and relocation costs, net of recoveries                                                                             |   |                                            | - |   |   |   | (39 | ) |   |   | (33 | )  |   |   | - |   |   |   | (377 | )  |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                 |   |                                            |                5,373 |   |   |   | (37,593 | )  |   |   | 12,719 |   |   |   | 10,514 |   |   |   | 9,753 |   |
| Other income (expense):                                                                                                       |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                                                                               |   |                                            | - |   |   |   | 3 |   |   |   | 66 |   |   |   | 45 |   |   |   | 28 |   |
| Interest expense                                                                                                              |   |                                            |             (5,414 | ) |   |   | (5,185 | ) |   |   | (5,734 | ) |   |   | (1,455 | ) |   |   | (610 | ) |
| Other income (expense)                                                                                                        |   |                                            |              1,013 |   |   |   | (476 | )  |   |   | 70 |   |   |   | 179 |   |   |   | 32 |   |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                                                                             |   |                                            |                972 |   |   |   | (43,251 | )  |   |   | 7,121 |   |   |   | 9,283 |   |   |   | 9,203 |   |
| Income tax (expense) benefit                                                                                             |   |                                            |                  (484 | )  |   |   | 15,730 |   |   |   | (2,463 | ) |   |   | (3,203 | ) |   |   | (3,729 | ) |
| Net income (loss)                                                                                                        |   | $                                               |                488 |   |   | $ | (27,521 | )  |   | $ | 4,658 |   |   | $ | 6,080 |   |   | $ | 5,474 |   |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss)  per share:                                                                                              |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                         |   | $                                               |                0.05 |   |   | $ | (2.76 | )  |   | $ | 0.47 |   |   | $ | 0.61 |   |   | $ | 0.56 |   |
| Diluted                                                                                                                       |   |                                            |                0.05 |   |   |   | (2.76 | )  |   |   | 0.46 |   |   |   | 0.60 |   |   |   | 0.55 |   |
| Dividends per share                                                                   |   | $                                               |                  0.00 |   |   | $ | 0.06 |   |   | $ | 0.24 |   |   | $ | 0.24 |   |   | $ | 0.20 |   |
|                                                                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                                                   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                         |   |                                            |         9,988,000 |   |   |   | 9,988,000 |   |   |   | 9,986,000 |   |   |   | 9,957,000 |   |   |   | 9,818,000 |   |
| Diluted                                                                                                                       |   |                                            |         9,988,000 |   |   |   | 9,988,000 |   |   |   | 10,024,000 |   |   |   | 10,103,000 |   |   |   | 9,972,000 |   |

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| (1)    |   | During the fourth quarter of 2005, the Company incurred various charges resulting from Hurricane Katrina. In 2006 as a result of the hurricane, the Company recorded recoveries of approximately $377,000, or $224,000 net of tax or $0.02 per share on a basic and diluted basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (2)    |   | The revenues associated with the acquisition of The Herald-Dispatch are primarily composed of advertising, circulation and commercial printing revenues. The advertising and circulation revenues are included as a component of the newspaper segment and the commercial printing revenues are recorded as a component of the printing segment. Approximately six weeks of the operations of The Herald-Dispatch are included in the Company's Statement of Operations commencing concurrent with the acquisition in 2007.                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (3)    |   | Includes impairment for goodwill and other intangibles in the fourth quarter of 2009 of $(41.1) million or $(25.5) million net of tax or $(2.55) per share on a basic and diluted basis. The Company also recorded a loss on an interest rate swap agreement resulting from a reclassification from other comprehensive income to other expense, pursuant to the elimination of a LIBOR borrowing option from the Administrative Agent of the Company's Credit Agreement resulting in the ineffectiveness of a cash flow hedge in the amount of $(578,000), net of tax or $(0.06) per share on a basic and diluted basis. The Company also incurred a charge of $(206,000) or $(128,000) net of tax or $(0.01) per share on a basic and diluted basis related to impairment charges associated with property, plant and equipment.  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (4)    |   | Includes charges in 2010 related to a restructuring and profitability enhancement plan of $(1.8) million $(1.1) million net of tax or $(0.11) per share on a basic and diluted basis. The Company also recorded other income in 2010 associated with an interest rate swap agreement, which expired in the fourth quarter of 2010, resulting primarily from a reclassification from other comprehensive income to other income of $0.7 million or $0.4 million net of tax. In the first quarter of 2010, the Company reported $0.3 million or $0.2 million net of tax as other income due to the Administrative Agent of the Company's Credit Agreement eliminating the LIBOR borrowing option resulting in ineffectiveness of a cash flow hedge.                                                                                   |

|                                                        |   |  At October 31,                |
|-------------------------------------------------------------|--------|----------------------------------------------------|
|                                                        |   | 2010                                               |   |   |  2009 |   |   |  2008(Restated) |   |   |  2007 |   |   |  2006 |   |
|                                                        |   |    (in thousands)    |   |
|  BALANCE SHEET DATA:                                   |   |
|  Cash and cash equivalents/negative book cash balances |   | $                                                  | (1,014 | ) |   | $ | 1,159 |   |   | $ | (987 | )  |   | $ | 5,793 |   |   | $ | 5,487 |   |
|  Working capital (1)                                   |   |                                               | 13,150 |   |   |   | (42,579 | )  |   |   | 20,367 |   |   |   | 25,308 |   |   |   |  25,955 |   |
|  Total assets                                          |   |                                               | 92,234 |   |   |   | 101,022 |   |   |   | 141,279 |   |   |   | 149,212 |   |   |   |  65,989 |   |
|  Long-term debt (net of current portion) (2)           |   |                                               | 52,299 |   |   |   | 918 |   |   |   | 66,332 |   |   |   | 79,378 |   |   |   |  4,220 |   |
|  Shareholders' equity                                  |   |                                               | 23,422 |   |   |   | 22,934 |   |   |   | 50,496 |   |   |   | 48,727 |   |   |   |  44,777 |   |

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|                                                             |   | Year Ended October 31, |    |
|------------------------------------------------------------------|--------|------------------------|---------|
|                                                             |   | ($ In thousands)       |    |
|                                                             |   | 2010                   |    |   | 2009 |   |   | 2008 (Restated) |   |
| Revenues:                                                        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                                         |   | $                      | 80,971  |   |   | 62.3 | % |   | $ | 88,990 |   |   | 63.0 | % |   | $ | 105,275 |   |   | 63.5 | % |
| Office products and office furniture                             |   |                   | 33,438  |   |   | 25.7 |   |   |   | 35,874 |   |   | 25.4 |   |   |   | 41,540 |   |   | 25.1 |   |
|     Newspaper                                     |   |                   | 15,525  |   |   | 12.0 |   |   |   | 16,394 |   |   | 11.6 |   |   |   | 18,939 |   |   | 11.4 |   |
| Total revenues                                                   |   |                   | 129,934 |   |   | 100.0 |   |   |   | 141,258 |   |   | 100.0 |   |   |   | 165,754 |   |   | 100.0 |   |
| Cost of sales & newspaper operating costs:                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                                         |   |                   | 59,351  |   |   |  45.7 |   |   |   | 66,856 |   |   | 47.3 |   |   |   | 75,590 |   |   | 45.6 |   |
| Office products and office furniture                             |   |                   | 23,633  |   |   | 18.2 |   |   |   | 24,859 |   |   | 17.6 |   |   |   | 28,457 |   |   | 17.2 |   |
|     Newspaper cost of sales & operating costs |   |                   | 8,327   |   |   |  6.4 |   |   |   | 8,715 |   |   | 6.2 |   |   |   | 9,492 |   |   | 5.7 |   |
| Total cost of sales & newspaper operating costs         |   |                   | 91,311  |   |   | 70.3 |   |   |   | 100,430 |   |   | 71.1 |   |   |   | 113,539 |   |   | 68.5 |   |
| Gross profit                                                     |   |                   | 38,623  |   |   | 29.7 |   |   |   | 40,828 |   |   | 28.9 |   |   |   | 52,215 |   |   | 31.5 |   |
|                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                     |   |                   | 31,609  |   |   | 24.3 |   |   |   | 37,126 |   |   | 26.2 |   |   |   | 39,529 |   |   | 23.8 |   |
|     Restructuring / asset impairments costs  |   |                   | 1,641   |   |   | 1.3 |   |   |   | 41,334 |   |   | 29.3 |   |   |   | - |   |   | 0.0 |   |
| Hurricane and relocation costs, net of recoveries                |   |                   | -       |   |   | - |   |   |   | (39 | ) |   | 0.0 |   |   |   | (33 | )  |   | 0.0 |   |
| Income (loss) from operations                                    |   |                   | 5,373   |   |   | 4.1 |   |   |   | (37,593 | )  |   | (26.6 | ) |   |   | 12,719 |   |   | 7.7 |   |
| Other income (expense):                                          |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                  |   |                   | -       |   |   |  - |   |   |   | 3 |   |   | 0.0 |   |   |   | 66 |   |   | 0.0 |   |
| Interest expense                                                 |   |                   | (5,414  | ) |   | (4.2 | ) |   |   | (5,185 | ) |   | (3.7 | ) |   |   | (5,734 | ) |   | (3.4 | ) |
| Other income                                                     |   |                   | 1,013   |   |   | 0.8 |   |   |   | (476 | )  |   | (0.3 | ) |   |   | 70 |   |   | 0.0 |   |
|                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                |   |                   | 972     |   |   |  0.7 |   |   |   | (43,251 | )  |   | (30.6 | ) |   |   | 7,121 |   |   | 4.3 |   |
| Income tax (expense) benefit                                     |   |                   | (484    | ) |   | (0.3 | ) |   |   | 15,730 |   |   | 11.1 |   |   |   | (2,463 | ) |   | (1.5 | ) |
| Net income (loss)                                                |   | $                      | 488     |   |   | 0.4 | % |   | $ | (27,521 | )  |   | (19.5 | )% |   | $ | 4,658 |   |   | 2.8 | % |
|                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

----

----

        -  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 receivable plus (b) up to the lesser of $6,000,000 or 50% of eligible inventory. 
        -  at the Company's 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 then 6.5:1.00 at April 30, 2010 with 0.5:1.00 step-downs quarterly through April 30, 2011 and 0.25:1.00 quarterly step-downs 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 step-ups 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 the Company to Administrative Agent, including monthly reports and conference calls, quarterly reports by the Company's independent auditors of restructuring charges and organizational expense reductions. 
        -  application of the Company's income tax refunds applied to reduce indebtedness under the Credit Agreement. 
        -  Restrictions on payment of dividends based on various covenant compliance thresholds. 

----

| Payments Due by Fiscal Year     |
|---------------------------------|
| Contractual Obligations         |   |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   |   2015 |   |   | Residual |   |   | Total |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cancelable operating leases |   |   |   | $ | 1,197,476 |   |   | $ | 1,036,174 |   |   | $ | 933,316 |   |   | $ | 359,071 |   |   |  $ |  51,640 |   |   | $ | -  |   |   | $ | 3,577,677 |   |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revolving line of credit        |   |   |   |   | - |   |   |   | 10,425,496 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | -  |   |   |   | 10,425,496 |   |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Term debt                       |   |   |   |   | 5,484,842 |   |   |   | 5,340,514 |   |   |   | 33,462,971 |   |   |   | 3,070,015 |   |   |   | - |   |   |   | -  |   |   |   | 47,358,342 |   |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |   |   | $ | 6,682,318 |   |   | $ | 16,802,184 |   |   | $ | 34,396,287 |   |   | $ | 3,429,086 |   |   |  $ |  51,640 |   |   |  $ | -  |   |   | $ | 61,361,515 |   |

----

----

----

| /s/    | Marshall T. Reynolds                                         |
|--------|--------------------------------------------------------------|
|   | Marshall T. Reynolds                                         |
|   | Chairman and Chief Executive Officer                    |
|   |                                                         |
| /s/    | Toney K. Adkins                                         |
|   | Toney K. Adkins                                              |
|   | President and Chief Operating Executive            |
|   |                                                         |
| /s/    | Todd R. Fry                                                  |
|   | Todd R. Fry                                             |
|   | Senior Vice President and Chief Financial Officer  |
|   |                                                         |

----

----

| (2)        |   |   | Plan of Acquisition                                                        | Stock Purchase Agreement between Company and William G. Williams, Jr., sole shareholder of Syscan Corporation, dated September 7, 2004 filed as Exhibit 2.1 to Form 8-K dated September 7, 2004, filed September 10, 2004, is incorporated herein by reference. |
|------------|--------|--------|----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |   |                                                                       |                                                                                                                                                                                                                                                            |
| (3)        | 3.1    |   | Articles of Incorporation                                                  | Filed as Exhibit 3.1 to Form 10-Q dated June 16, 1997, filed on June 16, 1997, incorporated herein by reference.                                                                                                                                                |
|       |   |   |                                                                       |                                                                                                                                                                                                                                                            |
|       | 3.2    |   | By Laws                                                                    | Filed as Exhibit 3.2 to Form 10-K dated January 21, 2008, filed on January 25, 2008, incorporated herein by reference.                                                                                                                                          |
|       |   |   |                                                                       |                                                                                                                                                                                                                                                            |
| (4)        |   |   | Instruments defining the rights of security holders, including debentures. | See Exhibit 3.1 above.                                                                                                                                                                                                                                          |
|       |   |   |                                                                       |                                                                                                                                                                                                                                                            |
| (10)  |   |   | Material Contracts                                                         | Realty Lease dated January 28, 1993 between ADJ Corp. and Company regarding 2450 1st Avenue, Huntington, West Virginia, filed as Exhibit 10.1 to Form 10-K dated January 27, 1994, filed January 31, 1994, is incorporated herein by reference.            |

----

|   |   |   | Realty Lease dated January 28, 1993 between The Harrah and Reynolds Corporation and Company regarding 615 4th Avenue, Huntington, West Virginia, filed as Exhibit 10.2 to Form 10-K dated January 27, 1994, filed January 31, 1994, is incorporated herein by reference.Realty Lease dated January 28, 1993 between ADJ Corp. and Company regarding 617-619 4th Avenue, Huntington, West Virginia, filed as Exhibit 10.3 to Form 10-K dated January 27, 1994, filed January 31, 1994, is incorporated herein by reference. Realty Lease dated January 28, 1993 between The Harrah and Reynolds Corporation and Company regarding 1945 5th Avenue, Huntington, West Virginia, filed as Exhibit 10.4 to Form 10-K dated January 27, 1994, filed January 31, 1994, is incorporated herein by reference. Realty Lease dated January 28, 1993 between Printing Property Corp. and Company regarding 405 Ann Street, Parkersburg, West Virginia, filed as Exhibit 10.5 to Form 10-K dated January 27, 1994, filed January 31, 1994, is incorporated herein by reference. Realty Lease dated January 28, 1993 between Printing Property Corp. and Company regarding 890 Russell Cave Road, Lexington, filed as Exhibit 10.6 to Form 10-K dated January 27, 1994, filed January 31, 1994, is incorporated herein by reference. Form of Indemnification Agreement between Company and all directors and executive officers, filed as Exhibit 10.4 to Registration Statement on Form S-1, File No. 33-54454, filed on November 10, 1992, is incorporated herein by reference.  |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Executive Compensation Plans and Arrangements | Company's 1993 Stock Option Plan, effective March 22, 1994, filed as Exhibit 10.14 to Form 10- K dated January 27, 1994, filed January 31, 1994, is incorporated herein by reference. Company’s 2003 Stock Option Plan, filed as Exhibit A to proxy statement dated February 12, 2004, filed February 13, 2004, is incorporated herein by reference. Form of Stock Option Agreement pursuant to Company’s 2003 Stock Option Plan filed as Exhibit 10.2 to form 10-Q dated September 10, 2004 filed September 13, 2004, is incorporated herein by reference. Confidentiality and Non-Competition Agreement dated September 7, 2004 among William G. Williams, Jr., Syscan Corporation and the Company, filed as Exhibit 10.2 to Form 8-K dated September 7, 2004, filed September 10, 2004, is incorporated herein by reference. Lease Agreement dated November 1, 1999 between Randall M. Schulz, successor trustee of The Butterfield Family Trust No. 2 and Smith & Butterfield Co., Inc. regarding 2800 Lynch Road, Evansville, Indiana, filed as Exhibit 10.3 to Form 10-K dated January 25, 2000, filed January 28, 2000, is incorporated herein by reference. |
|--------|--------|-----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   |   | Agreement of Lease dated September 25, 1998 between Ronald H. Scott and Frank A. Scott dba St. Clair Leasing Co. and Interform Corporation, regarding 1901 Mayview Road, Bridgeville, Pennsylvania, filed as Exhibit 10.4 to Form 10-K dated January 25, 2000, filed January 28, 2000, is incorporated herein by reference. First Amendment of Real Estate Lease Agreement dated May 6, 2003 by and between Ronald H. Scott and Frank J. Scott dba St. Clair Leasing Company and Interform Corporation, filed as Exhibit 10.1 to Form 8-K filed October 4, 2004, is incorporated herein by reference. Agreement of Lease dated September 1, 2002 between Marion B. and Harold A. Merten, Jr. and The Merten Company regarding 1515 Central Parkway, Cincinnati, Ohio, filed as Exhibit (10.1) to form 10-K dated January 21, 2002, Filed January 25, 2002 is incorporated herein by reference. Agreement Amending and Extending term of lease dated May 24, 2002 between Earl H. and Elaine D. Seibert and Smith and Butterfield Co., Inc. Filed as Exhibit (10.2) to form 10-K dated January 20, 2003, Filed January 24, 2003 is incorporated herein by reference.  |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | Agreement Amending and Extending term of lease dated May 9, 2003 between Champion Industries, Inc. dba, Upton Printing and AMB Property, L.P, filed as Exhibit 10.5 to form 10-K dated January 19, 2004 filed January 26, 2004, is incorporated herein by reference. Agreement of Lease dated as of September 1, 2004, between Williams Land Corporation and Syscan Corporation regarding North Hills Drive and Washington Street, Charleston, West Virginia, filed as Exhibit 10.3 to Form 8-K dated September 7, 2004, filed September 10, 2004, is incorporated herein by reference. Agreement of Lease dated as of September 1, 2004, between Williams Land Corporation and Syscan Corporation regarding 2800 Seventh Avenue, Charleston, West Virginia, filed as Exhibit 10.4 to Form 8-K dated September 7, 2004, filed September 10, 2004, is incorporated herein by reference.  |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   |   | Agreement of Purchase and Sale dated September 7, 2004, between Syscan Corporation and Williams Properties, LLC regarding 811 Virginia Street, East, Charleston, West Virginia, filed as Exhibit 10.5 to Form 8-K dated September 7, 2004, filed September 10, 2004, is incorporated herein by reference. Exercise of Lease renewal option for 2800 Lynch Road Evansville, Indiana dated as of September 22, 2003, filed as Exhibit 10.1 to form 10-K dated January 17, 2005 filed January 31, 2005, is incorporated herein by reference.  |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | Lease Agreement dated October 31, 2005, between SANS LLC and Champion Industries, Inc. dba Chapman Printing Company regarding 951 Point Marion Road Morgantown, West Virginia, filed as Exhibit 10.2 to Form 10-K dated January 16, 2006, filed January 27, 2006, is incorporated herein by reference. Lease Agreement dated June 28, 2006, between White Properties No. II, LLC and Champion Industries, Inc. regarding 120 Hills Plaza Charleston, West Virginia, filed as Exhibit 10.1 to Form 8-K dated July 3, 2006, filed July 3, 2006 is incorporated herein by reference. $642,831.68 term note between Champion Industries, Inc. and First Bank of Charleston, Inc. dated as of August 30, 2006, filed as Exhibit 10.1 to Form 10-K dated January 15, 2007 filed January 28, 2007, is incorporated herein by reference.  |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | $324,408.00 promissory note between Champion Industries, Inc. and First Bank of Charleston, Inc. dated as of March 23, 2007, filed as Exhibit 10.1 to Form 10-Q dated June 8, 2007 filed June 8, 2007, is incorporated herein by reference. Credit Agreement between Champion Industries, Inc. and Fifth Third Bank, filed as Exhibit 10.1 to Form 8-K dated September 14, 2007 filed September 19, 2007, is incorporated herein by reference. $767,852 term loan between Champion Industries, Inc. and First Bank of Charleston, Inc. dated April 22, 2008, filed as Exhibit 10.1 to Form 8-K dated April 25, 2008 filed April 25, 2008, is incorporated herein by reference. Agreement of Lease dated November 1, 2008 between ADJ Corporation and Champion Publishing, Inc. regarding 100 Industrial Lane Property, Huntington, West Virginia, filed as Exhibit 10.1 to Form 10-K dated January 19, 2009, is incorporated herein by reference. $1,000,000 revolving line of credit between Stationers, Inc. and First Sentry Bank dated as of January 13, 2009,filed as Exhibit 10.2 to Form 10-K  dated January 19, 2009, is incorporated herein by reference.  |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   |   | Forbearance Agreement and related Promissory Note and Debt Subordination Agreement dated December 19, 2009  between Champion Industries Inc., Marshall Reynolds and Fifth Third Bank as Lender, L/C Issuer and Administrative Agent for Lenders, filed as Exhibits 10.1, 10.2 and 10.3 to Form 8-K dated January 4, 2010, is incorporated herein by reference.  |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | $600,000 Promissory Note dated June 10, 2009 between Champion Industries, Inc and First Sentry Bank, filed as Exhibit 10.1 to Form 10-K dated January 29, 2010, is incorporated herein by reference.                                                |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                |
|   |   |   | Agreement of Lease dated October 27, 2009 between ADJ Corporation and Champion Industries, Inc. regarding 3000 Washington St. West, Charleston, WV, filed as Exhibit 10.2 to Form 10-K dated January 29, 2010, is incorporated herein by reference. |
|   |   |   |                                                                                                                                                                                                                                                |

|   |   |   | Second Amendment to Credit Agreement and Waiver dated March 31, 2010 between Champion Industries, Inc, Fifth Third Bank as Lender, L/C Issuer and Administrative Agent for Lenders, and the other Lenders party to Champions Credit Agreement dated September 14, 2007, filed as Exhibit 10.1 to Form 8-K dated April 6, 2010, is incorporated herein by reference. 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 Form 8-K dated April 6, 2010, is incorporated herein by reference. Subordinated Promissory  Note dated March 31, 2010 from Champion Industries, Inc. to Marshall Reynolds, filed as Exhibit 10.3 to Form 8-K dated April 6, 2010, is incorporated herein by reference. |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14)   |   | Code of Ethics                                                                                                             | Code of Ethics for the Chief Executive Officer, Chief Operating Officer and Chief Accounting Officer, filed as Exhibit 14 to form 10-K dated January 19, 2004 filed January 26, 2004, is incorporated herein by reference. Code of Business Conduct and Ethics, filed as Exhibit 14.2 to Form 10-K dated January 19, 2004 filed January 26, 2004, is incorporated herein by reference. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                        |
| (16)   |   |                                                                                                                       | Letter of BKD, LLP dated April 20, 2007, filed as Exhibit 16 to Form 8-K dated April 20, 2007, filed April 20, 2007, is incorporated herein by reference.                                                                                                                                                                                                                                   |
|   |   |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                        |
| (21)   |   | Subsidiaries of the Registrant                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                        | Exhibit 21 |   | Page Exhibit 21-p1 |
|   |   |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
| (23.1) |   | Consent of Arnett and Foster, PLLC                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                        | Exhibit 23.1 |   | Page Exhibit 23.1-p1 |
|   |   |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
|   |   |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
|   |   |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
| (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   |

----

| Champion Industries, Inc.                                                                                                                                                                                                                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                             |
| By /s/ Marshall T. Reynolds                                                                                                             |
| Marshall T. Reynolds                                                                                                                                                                                                                                                                                                                  |
| Chief Executive Officer                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                             |
| By /s/ Toney K. Adkins                                                                               |
| Toney K. Adkins                                                                                                                                                                                                                                                                                                                       |
| President and Chief Operating Officer                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                             |
| By /s/ Todd R. Fry                                                     |
| Todd R. Fry                                                                                                                                                                                                                                                                                                                           |
| Senior Vice President and Chief Financial Officer                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                             |
| Date:  January 17, 2011                                                                                                                                                                                                                                                                                                          |

----

|  SIGNATURE AND TITLE                                                                                                                                                                         |   |  DATE             |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
|                                                                                                                                                                                              |   |                   |
|  /s/ Louis J. Akers                                                                                                                                                                          |   |  January 17, 2011 |
| Louis J. Akers, Director                                                                                                                                                                          |   |                   |
|                                                                                                                                                                                              |   |                   |
|  /s/ Philip E. Cline                             |   |  January 17, 2011 |
| Philip E. Cline, Director                                                                                                                                                                         |   |                   |
|                                                                                                                                                                                              |   |                   |
|  /s/ Harley F. Mooney, Jr.                                                                    |   |  January 17, 2011 |
| Harley F. Mooney, Jr., Director                                                                                                                                                                   |   |                   |
|                                                                                                                                                                                              |   |                   |
|  /s/ A. Michael Perry                                           |   |  January 17, 2011 |
| A. Michael Perry, Director                                                                                                                                                                        |   |                   |
|                                                                                                                                                                                              |   |                   |
|  /s/ Marshall T. Reynolds                                                                |   |  January 17, 2011 |
| Marshall T. Reynolds, Director                                                                                                                                                                    |   |                   |
|                                                                                                                                                                                              |   |                   |
|  /s/ Neal W. Scaggs                                   |   |  January 17, 2011 |
| Neal W. Scaggs, Director                                                                                                                                                                          |   |                   |
|                                                                                                                                                                                              |   |                   |
|  /s/ Glenn W. Wilcox, Sr.                                                                |   |  January 17, 2011 |
| Glenn W. Wilcox, Sr., Director                                                                                                                                                                    |   |                   |

----

| Report of Independent Registered Public Accounting Firm | F-2                                                                                                       |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
| Audited Consolidated Financial Statements:              |                                                                                                      |
|                                                    | Consolidated Balance Sheets as of October 31, 2010 and 2009                                               | F-3 |
|                                                    | Consolidated Statements of Operations for the years ended October 31, 2010, 2009 and 2008                 | F-5 |
|                                                    | Consolidated Statements of Shareholders’ Equity for the years ended October 31, 2010, 2009 and 2008 | F-6 |
|                                                    | Consolidated Statements of Cash Flows for the years ended October 31, 2010, 2009 and 2008                 | F-7 |
|                                                    | Notes to Consolidated Financial Statements                                                                | F-8 |
| Schedule II - Valuation and Qualifying Accounts         | F-35                                                                                                      |

----

----

|                                                               |   | October 31,                    |        |
|--------------------------------------------------------------------|--------|--------------------------------|-------------|
|                                                               |   | 2010                           |        |   | 2009 |   |
| Assets                                                             |   |                           |        |   |   |   |
| Current assets:                                                    |   |       |        |   |   |   |
| Cash and cash equivalents                                          |   | $                              | -           |   |   | $ | 1,159,282 |   |
| Accounts receivable, net of allowance of $1,297,000 and $1,353,000 |   |                           | 18,133,748  |   |   |   | 18,424,310 |   |
| Inventories                                                        |   |                           | 9,690,333   |   |   |   | 11,161,977 |   |
|         Income tax refund       |   |                           | 36,293      |   |   |   | 1,911,400 |   |
| Other current assets                                               |   |                           | 652,178     |   |   |   | 925,120 |   |
| Deferred income tax assets                                         |   |                           | 1,144,519   |   |   |   | 1,000,847 |   |
| Total current assets                                               |   |                           | 29,657,071  |   |   |   | 34,582,936 |   |
|                                                               |   |                           |        |   |   |   |   |   |
| Property and equipment, at cost:                                   |   |                           |        |   |   |   |   |   |
| Land                                                               |   |                           | 2,016,148   |   |   |   | 2,016,148 |   |
| Buildings and improvements                                         |   |                           | 11,843,376  |   |   |   | 11,806,238 |   |
| Machinery and equipment                                            |   |                           | 55,025,237  |   |   |   | 57,481,742 |   |
| Furniture and fixtures                                             |   |                           | 4,171,194   |   |   |   | 4,129,537 |   |
| Vehicles                                                           |   |                           | 3,266,898   |   |   |   | 3,145,772 |   |
|                                                               |   |                           | 76,322,853  |   |   |   | 78,579,437 |   |
| Less accumulated depreciation                                      |   |                           | (53,949,280 | ) |   |   | (53,170,108 | ) |
|                                                               |   |                           | 22,373,573  |   |   |   | 25,409,329 |   |
|                                                               |   |                           |        |   |   |   |   |   |
| Goodwill                                                           |   |                           | 15,332,283  |   |   |   | 15,332,283 |   |
|     Deferred financing costs                        |   |                           | 1,267,174   |   |   |   | 1,199,199 |   |
| Other intangibles, net of accumulated amortization                 |   |                           | 5,195,361   |   |   |   | 5,645,078 |   |
|     Trademark and masthead                          |   |                           | 10,001,812  |   |   |   | 10,001,812 |   |
|     Deferred tax asset, net of current portion |   |                           | 8,370,151   |   |   |   | 8,799,518 |   |
| Other assets                                                       |   |                           | 36,561      |   |   |   | 51,738 |   |
|                                                               |   |                           | 40,203,342  |   |   |   | 41,029,628 |   |
| Total assets                                                       |   | $                              | 92,233,986  |   |   | $ | 101,021,893 |   |
|                                                               |   |                           |        |   |   |   |   |   |

----

|                                                                                   |   | October 31, |       |
|----------------------------------------------------------------------------------------|--------|-------------|------------|
|                                                                                   |   | 2010        |       |   | 2009 |   |
| Liabilities and shareholders’ equity                                             |   |        |       |   |   |   |
| Current liabilities:                                                                   |   |        |       |   |   |   |
|         Line of credit                         |   |  $     | -     |   |   |  $ | 8,725,496 |   |
|         Negative book cash balances            |   |        | 1,013,713  |   |   |   | - |   |
| Accounts payable                                                                       |   |        | 4,116,087  |   |   |   | 4,637,199 |   |
| Deferred revenue                                                                       |   |        | 720,549    |   |   |   | 673,368 |   |
| Accrued payroll and commissions                                                        |   |        | 2,115,922  |   |   |   | 2,392,971 |   |
| Taxes accrued and withheld                                                             |   |        | 1,125,726  |   |   |   | 1,391,718 |   |
| Accrued expenses                                                                       |   |        | 1,930,327  |   |   |   | 1,353,898 |   |
|         Other current liabilities    |   |        | -          |   |   |   | 962,893 |   |
| Current portion of long-term debt:                                                     |   |        |       |   |   |   |   |   |
| Notes payable                                                                          |   |        | 5,484,842  |   |   |   | 57,024,424 |   |
| Total current liabilities                                                              |   |        | 16,507,166 |   |   |   | 77,161,967 |   |
|                                                                                   |   |        |       |   |   |   |   |   |
| Long-term debt, net of current portion:                                                |   |        |       |   |   |   |   |   |
| Line of credit                                                                         |   |        | 10,425,496 |   |   |   | - |   |
| Notes payable                                                                          |   |        | 41,873,500 |   |   |   | 918,436 |   |
| Other liabilities                                                                      |   |        | 5,550      |   |   |   | 7,350 |   |
| Total liabilities                                                                      |   |        | 68,811,712 |   |   |   | 78,087,753 |   |
|                                                                                   |   |        |       |   |   |   |   |   |
| Commitments and contingencies-See Note                                                 |   |        |       |   |   |   |   |   |
|                                                                                   |   |        |       |   |   |   |   |   |
| 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                                                                       |   |        | (9,334,249 | ) |   |   | (9,822,383 | )  |
|                                                     |   |        |       |   |   |   |   |   |
| Total shareholders’ equity                                                       |   |        | 23,422,274 |   |   |   | 22,934,140 |   |
| Total liabilities and shareholders’ equity                                       |   | $           | 92,233,986 |   |   | $ | 101,021,893 |   |
|                                                                                   |   |        |       |   |   |   |   |   |

----

|                                                                  |   | Year Ended October 31, |             |
|-----------------------------------------------------------------------|--------|------------------------|------------------|
|                                                                  |   |  2010             |             | 2009 |   |  2008 (Restated) |   |
| Revenues:                                                             |   |                   |             |   |   |   |   |   |   |   |
| Printing                                                              |   | $                      | 80,970,584       |   | $ | 88,989,794 |   | $ | 105,275,191 |   |
| Office products and office furniture                                  |   |                   | 33,437,588       |   |   | 35,874,431 |   |   | 41,540,114 |   |
|     Newspaper                                     |   |                   | 15,525,399  |   |   | 16,393,896 |   |   | 18,939,250 |   |
| Total revenues                                                        |   |                   | 129,933,571      |   |   | 141,258,121 |   |   | 165,754,555 |   |
|                                                                  |   |                   |             |   |   |   |   |   |   |   |
| Cost of sales & newspaper operating costs:                        |   |                   |             |   |   |   |   |   |   |   |
| Printing                                                              |   |                   | 59,350,853       |   |   | 66,856,098 |   |   | 75,590,247 |   |
| Office products and office furniture                                  |   |                   | 23,632,686       |   |   | 24,859,285 |   |   | 28,457,142 |   |
|     Newspaper cost of sales & operating costs |   |                   | 8,327,100   |   |   | 8,714,941 |   |   | 9,492,591 |   |
| Total cost of sales & newspaper operating costs                   |   |                   | 91,310,639       |   |   | 100,430,324 |   |   | 113,539,980 |   |
|                                                                  |   |                   |             |   |   |   |   |   |   |   |
| Gross profit                                                          |   |                   | 38,622,932       |   |   | 40,827,797 |   |   | 52,214,575 |   |
|                                                                  |   |                   |             |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                          |   |                   | 31,608,843       |   |   | 37,126,228 |   |   | 39,528,551 |   |
| Asset impairments/restructuring costs                       |   |                   | 1,640,795   |   |   | 41,333,653  |   |   | -  |   |
| Hurricane and relocation costs, net of recoveries                     |   |                   | -                |   |   | (38,673 | ) |   | (33,411 | )  |
| Income (loss) from operations                                         |   |                   | 5,373,294        |   |   | (37,593,411 | )  |   | 12,719,435 |   |
|                                                                  |   |                   |             |   |   |   |   |   |   |   |
| Other income (expense):                                               |   |                   |             |   |   |   |   |   |   |   |
| Interest income                                                       |   |                   | -                |   |   | 2,771 |   |   | 65,657 |   |
| Interest expense                                                      |   |                   | (5,414,450       | ) |   | (5,184,668 | ) |   | (5,733,677 | ) |
| Other                                                                 |   |                   | 1,013,041        |   |   | (475,488 | )  |   | 69,602 |   |
|                                                                  |   |                   | (4,401,409       | ) |   | (5,657,385 | ) |   | (5,598,418 | ) |
| Income (loss) before income taxes                                     |   |                   | 971,885          |   |   | (43,250,796 | )  |   | 7,121,017 |   |
| Income tax (expense) benefit                                     |   |                   | (483,751         | ) |   | 15,730,172 |   |   | (2,462,856 | ) |
| Net income (loss)                                                     |   | $                      | 488,134          |   | $ | (27,520,624 | )  | $ | 4,658,161 |   |
|                                                                  |   |                   |             |   |   |   |   |   |   |   |
| Earnings (loss) per share:                                            |   |                   |             |   |   |   |   |   |   |   |
| Basic                                                                 |   | $                      | 0.05             |   | $ | (2.76 | ) | $ | 0.47 |   |
| Diluted                                                               |   |                   | 0.05             |   |   | (2.76 | ) |   | 0.46 |   |
|                                                                  |   |                   |             |   |   |   |   |   |   |   |
| Dividends paid per share                                              |   |                   | -                |   |   | 0.06 |   |   | 0.24 |   |
|                                                                  |   |                   |             |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                  |   |                   |             |   |   |   |   |   |   |   |
| Basic                                                                 |   |                   | 9,988,000        |   |   | 9,988,000 |   |   | 9,986,000 |   |
| Diluted                                                               |   |                   | 9,988,000        |   |   | 9,988,000 |   |   | 10,024,000 |   |

----

|                                                     |   |         |                      |    |    | Additional                      |   |               |                            | Other         |    |        |    |
|----------------------------------------------------------|--------|--------------|---------------------------|---------|---------|---------------------------------|--------|--------------------|---------------------------------|---------------|---------|-------------|---------|
|                                                     |   | Common Stock |                      | Paid-In |    | Retained                        |   | Comprehensive      |                            |          |    |
|                                                     |   | Shares       |                      | Amount  |    | Capital                         |   | Earnings (Deficit) |                            | (Loss) income |    | Total       |    |
| Balance, October 31, 2007                                |   |         | 9,968,913                 |    |  $ | 9,968,913                       |   |  $            | 22,733,300                      |          |  $ | 16,036,224  |    |  $ | (11,350 | ) |  $ | 48,727,087 |   |
|                                                     |   |         |                      |    |    |                            |   |               |                            |          |    |        |    |   |   |   |   |   |   |
| Net income for 2008 (Restated)                           |   |         | -                         |    |    | -                               |   |               | -                               |          |    | 4,658,161   |    |   | -  |   |   | 4,658,161 |   |
| Other comprehensive loss (net of tax)                    |   |         | -                         |    |    | -                               |   |               | -                               |          |    | -           |    |   | (546,563 | ) |   | (546,563 | ) |
| Total comprehensive income (Restated)                    |   |         | -                         |    |    | -                               |   |               | -                               |          |    | 4,658,161   |    |   | (546,563 | ) |   | 4,111,598 |   |
| Dividends ($0.24 per share)                              |   |         | -                         |    |    | -                               |   |               | -                               |          |    | (2,396,863  | )       |   | - |   |   | (2,396,863 | ) |
| Stock options exercised                                  |   |         | 19,000                    |    |    | 19,000                          |   |               | 35,310                          |          |    | -           |    |   | - |   |   | 54,310 |   |
| Balance, October 31, 2008 (Restated)                     |   |         | 9,987,913                 |    |    | 9,987,913                       |   |               | 22,768,610                      |          |    | 18,297,522  |    |   | (557,913 | ) |   | 50,496,132 |   |
|                                                     |   |         |                      |    |    |                            |   |               |                            |          |    |        |    |   |   |   |   |   |   |
| Net loss for 2009                                        |   |         |  -                   |    |    | -                               |   |               | -                               |          |    | (27,520,624 | )       |   | - |   |   | (27,520,624 | ) |
| Other comprehensive loss (net of tax)                    |   |         | -                         |    |    | -                               |   |               | -                               |          |    | -           |    |   | (19,823 | ) |   | (19,823 | ) |
| Ineffectiveness hedging loss                             |   |         |            |    |    |      - |   |               |      - |          |    | -           |    |   | 577,736 |   |   | 577,736 |   |
| Total comprehensive loss                                 |   |         | -                         |    |    |                            |   |               |                            |          |    | (27,520,624 | )       |   | 557,913 |   |   | (26,962,711 | ) |
| Dividends ($0.06 per share)                              |   |         | -                         |    |    | -                               |   |               | -                               |          |    | (599,281    | )       |   | - |   |   | (599,281 | ) |
| Balance, October 31, 2009                                |   |         | 9,987,913                 |    |    | 9,987,913                       |   |               | 22,768,610                      |          |    | (9,822,383  | )       |   | - |   |   | 22,934,140 |   |
|                                                     |   |         |                      |    |    |                            |   |               |                            |          |    |        |    |   |   |   |   |   |   |
| Net income for 2010                                      |   |         | -                         |    |    | -                               |   |               | -                               |          |    | 488,134     |    |   |  - |   |   | 488,134 |   |
| Other comprehensive income (net of tax)             |   |         |     - |    |    | -                               |   |               |  -                         |          |    |  -     |    |   | 407,289 |   |   | 407,289 |   |
| Gain on hedging arrangement expiration (net of tax) |   |         | -                         |    |    | -                               |   |               | -                               |          |    | -           |    |   | (407,289 | ) |   | (407,289 | ) |
| Total comprehensive income                               |   |         | -                         |    |    | -                               |   |               | -                               |          |    | 488,134     |    |   | - |   |   | 488,134 |   |
| Balance, October 31, 2010                 |   |         |  9,987,913           |    |  $ |  9,987,913                 |   |  $            |  22,768,610                |          |  $ | (9,334,249  | )  |  $ | - |   |  $ |  23,422,274 |   |

----

|                                                                                                                                               | Year Ended October 31, |           |
|----------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|----------------|
|                                                                                                                                               | 2010                   |           | 2009 |   | 2008 |   |
| Cash flows from operating activities:                                                                                                              |                   |           |   |   |   |   |
| Net income (loss)                                                                                                                             | $                      | 488,134        |   | $ | (27,520,624 | )  | $ | 4,658,161 |   |
|  Adjustments to reconcile net income (loss) to cash  provided by operating activities:                                                   |                   |           |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                                                      |                   | 4,300,662      |   |   | 5,244,938 |   |   | 5,384,509 |   |
| (Gain) loss on sale of assets                                                                                                                 |                   | 15,490         |   |   | (55,719 | ) |   | 4,552 |   |
| Deferred income taxes                                                                                                                              |                   | 14,169         |   |   | (13,957,990 | ) |   | 2,129,999 |   |
|                 Deferred financing costs                                |                   | 372,610        |   |   | 309,471 |   |   | 309,471 |   |
| Bad debt expense                                                                                                                                   |                   | 370,333        |   |   | 876,145 |   |   | 854,283 |   |
| Intangible impairment                                                                                                                         |                   | -              |   |   | 41,127,483 |   |   | - |   |
|                 Asset Impairment                                        |                   |  -        |   |   | 206,170 |   |   | - |   |
|         Restructuring charges                                                                                   |                   | 1,812,325      |   |   | - |   |   | - |   |
|                 (Gain)/Loss on hedging agreements                  |                   | (691,368       | ) |   | 577,736 |   |   | - |   |
| Changes in assets and liabilities:                                                                                                                 |                   |           |   |   |   |   |   |   |   |
| Accounts receivable                                                                                                                                |                   | (79,771        | ) |   | 4,588,233 |   |   | (1,503,868 | ) |
| Deferred revenue                                                                                                                                   |                   | 47,181         |   |   | (63,499 | ) |   | 226,902 |   |
| Inventories                                                                                                                                        |                   | 1,471,644      |   |   | 852,141 |   |   | (509,271 | )  |
| Other current assets                                                                                                                               |                   | 272,942        |   |   | (92,053 | ) |   | 49,469 |   |
| Accounts payable                                                                                                                                   |                   | (1,295,890     | ) |   | (207,527 | ) |   | (635,114 | )  |
| Accrued payroll and commissions                                                                                                                    |                   | (277,049       | ) |   | (333,940 | )  |   | 266,624 |   |
| Taxes accrued and withheld                                                                                                                         |                   | (265,992       | ) |   | 404,333 |   |   | (306,740 | ) |
| Accrued income taxes                                                                                                                               |                   | 1,875,107      |   |   | (1,200,304 | ) |   | (78,657 | ) |
| Accrued expenses                                                                                                                                   |                   | (461,118       | ) |   | 544,710 |   |   | (498,702 | ) |
| Other liabilities                                                                                                                                  |                   | (1,800         | ) |   | (1,800 | ) |   | (1,800 | ) |
| Net cash provided by operating activities                                                                                                          |                   | 7,967,609      |   |   | 11,297,904 |   |   | 10,349,818 |   |
| Cash flows from investing activities:                                                                                                              |                   |           |   |   |   |   |   |   |   |
| Purchase of property and equipment                                                                                                                 |                   | (396,157       | ) |   | (1,993,029 | ) |   | (2,373,122 | ) |
| Proceeds from sale of fixed assets                                                                                                                 |                   | 32,256         |   |   | 160,324 |   |   | 192,749 |   |
| Businesses acquired, net of cash received                                                                                                          |                   | -              |   |   | - |   |   | (1,657,239 | ) |
| Change in other assets                                                                                                                             |                   | 7,753          |   |   | 5,168 |   |   | 52,003 |   |
| Cash surrender value proceeds                                                                                                                      |                   | -         |   |   | 874,397 |   |   | - |   |
| (Increase) decrease in cash surrender value                                                                                                        |                   | -              |   |   | - |   |   | (40,291 | ) |
| Net cash used in investing activities                                                                                                              |                   | (356,148       | ) |   | (953,140 | ) |   | (3,825,900 | ) |
| Cash flows from financing activities:                                                                                                              |                   |           |   |   |   |   |   |   |   |
| Borrowings on line of credit                                                                                                                       |                   | 52,260,000     |   |   | 600,000 |   |   | - |   |
| Payments on line of credit                                                                                                                         |                   | (50,560,000    | ) |   | (1,000,000 | ) |   | (6,415,000 | ) |
|                 Increase (decrease) in negative book cash balances |                   | 1,013,713      |   |   | (986,704 | ) |   | 986,704 |   |
| Proceeds from long-term debt                                                                                                                       |                   | -              |   |   | - |   |   | 767,852 |   |
| Principal payments on long-term debt                                                                                                               |                   | (11,043,871    | ) |   | (7,199,497 | ) |   | (5,314,041 | ) |
| Deferred financing costs                                                                                                                           |                   | (440,585       | )  |   | - |   |   | - |   |
| Proceeds from exercise of stock options                                                                                                            |                   | -              |   |   | - |   |   | 54,310 |   |
| Dividends paid                                                                                                                                     |                   | -              |   |   | (599,281 | ) |   | (2,396,863 | ) |
| Net cash used in financing activities                                                                                                         |                   | (8,770,743     | ) |   | (9,185,482 | )  |   | (12,317,038 | ) |
| Net (decrease) increase in cash and cash equivalents                                                                                          |                   | (1,159,282     | )  |   | 1,159,282 |   |   | (5,793,120 | ) |
| Cash and cash equivalents at beginning of year                                                                                                     |                   | 1,159,282      |   |   | - |   |   | 5,793,120 |   |
| Cash and cash equivalents at end of year                                                                                                           | $                      | -    |   | $ | 1,159,282 |   | $ | -   |   |

----

----

----

| Buildings and improvements                          | 5 - 40 years |
|----------------------------------------------------------|--------------|
| Machinery and equipment                             | 3 - 10 years |
| Furniture and fixtures                    | 5 - 10 years |
| Vehicles         | 3 - 5 years  |

----

----

----

|                                                  |   | October 31,  |            |
|-------------------------------------------------------|--------|-------------------|-----------------|
|                                                  |   | 2010              |            |   | 2009 |   |
| Printing and Newspaper:      |   |              |            |   |   |   |
|     Raw materials       |   | $                 | 2,897,036       |   |   | $ | 2,854,938 |   |
|     Work in process                    |   |              | 1,130,291       |   |   |   | 1,405,320 |   |
|      Finished goods               |   |              |  3,451,815 |   |   |   | 3,765,244 |   |
|  Office products and office furniture            |   |              |  2,211,191 |   |   |   | 3,136,475 |   |
|                                                  |   | $                 | 9,690,333       |   |   |  $ | 11,161,977 |   |

|                                                                                                                                                                                                                                                                                                                                                                                |   | October 31, |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                |   | 2010        |       |   | 2009 |   |
| Installment notes payable to banks and shareholders, due in monthly installments plus interest at rates approximating the bank’s prime rate maturing in various periods ranging from June 2011-September 2014, collateralized by equipment and vehicles. The shareholder note of $3.0 million plus all accrued interest is due in one balloon payment in September 2014. |   |  $     | 4,300,364  |   |   |  $ | 1,310,418 |   |
|  Term loan facility with a syndicate of banks, due in quarterly installments of $1,225,000 plus interest payments equal to the Base Rate plus the applicable margin or the adjusted LIBOR Rate plus the applicable margin maturing September 2013, collateralized by substantially all of the assets of the Company.                                                      |   |        | 43,057,978 |   |   |   | 56,632,442 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |        | 47,358,342 |   |   |   | 57,942,860 |   |
| Less current portion                                                                                                                                                                                                                                                                                                                                                                |   |        | 5,484,842  |   |   |   | 57,024,424 |   |
| Long-term debt, net of current portion                                                                                                                                                                                                                                                                                                                                              |   | $           | 41,873,500 |   |   | $ | 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 receivable plus (b) up to the lesser of $6,000,000 or 50% of eligible inventory. 
          -  at the Company's 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 then 6.5:1.00 at April 30, 2010 with 0.5:1.00 step-downs quarterly through April 30, 2011 and 0.25:1.00 quarterly step-downs 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 step-ups 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 the Company to Administrative Agent, including monthly reports and conference calls, quarterly reports by the Company's independent auditors of restructuring charges and organizational expense reductions. 
          -  application of the Company's income tax refunds applied to reduce indebtedness under the Credit Agreement. 
          -  Restrictions on payment of dividends based on various covenant compliance thresholds. 

----

----

| 2011   |   | $      | 5,484,842        |   |
|--------|--------|--------|------------------|--------|
| 2012   |   |   | 5,340,514        |   |
| 2013   |   |   | 33,462,971       |   |
| 2014   |   |   | 3,070,015        |   |
| 2015   |   |   | -           |   |
|   |   | $      |  47,358,342 |   |

----

|                                                           |   |   |                                                    | Weighted |   |   |   | Weighted |    |   |   | Weighted |   |
|----------------------------------------------------------------|--------|--------|---------------------------------------------------------|----------|--------|--------|--------|----------|---------|--------|--------|----------|--------|
|                                                           |   |   |                                                    | Average  |   |   |   | Average  |    |   |   | Average  |   |
|                                                           |   |   |                                                    | Exercise |   |   |   | Exercise |    |   |   | Exercise |   |
|                                                           |   | 2010   |                                                    | Price    |   | 2009   |   | Price    |    | 2008   |   | Price    |   |
|                                                           |   |   |                                                    |     |   |   |   |     |    |   |   |     |   |
| Outstanding-beginning of year                                  |   |   |         220,000 |     | $      | 4.26   |   |     | 311,000 |   | $      | 4.27     |   |   | 330,000 |   | $ | 4.18 |   |
| Granted                                                        |   |   | -                                                       |     |   | -      |   |     | -       |   |   | -        |   |   | - |   |   | - |   |
| Exercised                                                      |   |   | -                                                       |     |   | -      |   |     | -       |   |   | -        |   |   | (19,000 | )  |   | 2.77 |   |
| Forfeited or expired                                           |   |   | (220,000                                                | )        |   | 4.26   |   |     | (91,000 | )      |   | 4.29     |   |   | - |   |   | - |   |
| Outstanding-end of year                                        |   |   | -                                                       |     |   | -      |   |     | 220,000 |   |   | 4.26     |   |   | 311,000 |   |   | 4.27 |   |
| Weighted average fair value of options granted during the year |   | $      | -                                                       |     |   |   |   | $        | -       |   |   |     |   | $ | - |   |   |   |   |

----

|                        |   | Year Ended October 31, |      |
|-----------------------------|--------|------------------------|-----------|
|                        |   | 2010                   |      | 2009 |   | 2008 (Restated) |   |
| Current (benefit) expense:  |   |                   |      |   |   |   |   |
| Federal                     |   | $                      | (754,195  | ) | $ | (1,601,934 | )  | $ | 463,599 |   |
| State                       |   |                   | (333,390  | ) |   | (170,248 | )  |   | (130,742 | )  |
| Deferred expenses (benefit) |   |                   | 1,571,336 |   |   | (13,957,990 | ) |   | 2,129,999 |   |
|                        |   | $                      | 483,751   |   | $ | (15,730,172 | )  | $ | 2,462,856 |   |

|                                              |   | October 31, |          |
|---------------------------------------------------|--------|-------------|---------------|
|                                              |   | 2010        |          |   | 2009 |   |
| Deferred tax assets:                              |   |        |          |   |   |   |
| Allowance for doubtful accounts                   |   | $           | 475,365       |   |   | $ | 497,795 |   |
| Net operating loss carryforward                   |   |        | 1,812,856     |   |   |   | 555,470 |   |
| Accrued vacation                                  |   |        | 142,749       |   |   |   | 240,311 |   |
| Other accrued liabilities                         |   |        | 682,251       |   |   |   | 265,681 |   |
|     Interest rate swap        |   |        | -             |   |   |   |  385,157 |   |
|     Intangible assets              |   |        | 10,172,785    |   |   |   | 11,784,699 |   |
| Gross deferred tax assets                         |   |        | 13,286,006    |   |   |   | 13,729,113 |   |
|                                              |   |        |          |   |   |   |   |   |
| Deferred tax liabilities:                         |   |        |          |   |   |   |   |   |
| Property and equipment                            |   |        | (3,218,553    | ) |   |   | (3,449,830 | ) |
| Intangible assets                                 |   |        | -   |   |   |   | -   |   |
| Gross deferred tax liability                      |   |        | (3,218,553    | ) |   |   | (3,449,830 | ) |
| Net deferred tax asset before valuation allowance |   |        | 10,067,453    |   |   |   | 10,279,283 |   |
|                                              |   |        |          |   |   |   |   |   |
| Valuation allowance:                              |   |        |          |   |   |   |   |   |
| Beginning balance                                 |   |        | 478,918       |   |   |   | 291,209 |   |
| Increase during the period                        |   |        | 73,865        |   |   |   | 187,709 |   |
| Ending balance                                    |   |        | 552,783       |   |   |   | 478,918 |   |
| Net deferred tax asset                            |   | $           | 9,514,670     |   |   | $ | 9,800,365 |   |

----

|                                    | 2010   |      | 2009   |
|-----------------------------------------|--------|-----------|--------|
| Deferred tax asset - current            | $      | 1,144,519 |   | $ | 1,000,847 |
| Deferred tax assets -non-current   |   | 8,370,151 |   |   | 8,799,518 |
|                                    | $      | 9,514,670 |   | $ | 9,800,365 |

|                                             |   | Year Ended October 31, |       |
|--------------------------------------------------|--------|------------------------|------------|
|                                             |   | 2010                   |       |   | 2009 |   |   | 2008(Restated) |   |
|                                             |   |                   |       |   |   |   |   |   |   |
| Statutory federal income tax rate                |   |                   | 34.0       | % |   |   | (34.0 | )% |   |   | 34.0 | % |
| State taxes, net of federal benefit              |   |                   | (22.1      | ) |   |   | (0.7 | )  |   |   | 3.3 |   |
| Change in valuation allowance                    |   |                   | 7.6        |   |   |   | 0.3 |   |   |   | - |   |
| Selling expenses                                 |   |                   | 7.2        |   |   |   | 0.2 |   |   |   | 1.1 |   |
| Cash surrender value of life insurance accretion |   |                   |  -    |   |   |   | 0.4 |   |   |   | (0.2 | ) |
| State apportionment and deferred tax adjustments |   |                   | 23.3       |   |   |   | (3.1 | ) |   |   | (2.0 | ) |
| Federal and state tax accrual adjustments        |   |                   | -          |   |   |   | (0.1 | )  |   |   | (0.8 | )  |
| Other                                            |   |                   |  (0.2 | )  |   |   | 0.2 |   |   |   | (0.8 | )  |
|     Interest rate swap            |   |                   |  -    |   |   |   | 0.4 |   |   |   | - |   |
| Effective tax rate                               |   |                   |  49.8 | % |   |   | (36.4 | )% |   |   | 34.6 | % |

----

|                                                                                    |   | Year Ended October 31, |    |
|-----------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                    |   | 2010                   |    | 2009 |   | 2008 |   |
| Rent expense paid to affiliated entities                                                |   |                   |    |   |   |   |   |   |   |   |
| for operating facilities                                                                |   | $                      | 517,000 |   | $ | 367,000 |   | $ | 434,000 |   |
| Sales of office products, office furniture and printing services to affiliated entities |   |                   | 913,000 |   |   | 861,000 |   |   | 895,000 |   |

----

| 2011   |   |  $ | 1,197,476 |   |
|--------|--------|---------|-----------|--------|
| 2012   |   |    | 1,036,174 |   |
| 2013   |   |    | 933,316   |   |
| 2014   |   |    | 359,071   |   |
| 2015   |   |    | 51,640    |   |
|   |   | $       | 3,577,677 |   |

----

|  Current assets, net of cash received |   | $      | 2,748,445  |   |
|--------------------------------------------|--------|--------|------------|--------|
|                                       |   |   |       |   |
|  Property, plant and equipment        |   |   | 8,582,200  |   |
|                                       |   |   |       |   |
|  Goodwill                             |   |   | 35,396,335 |   |
|  Trademark & masthead             |   |   | 18,515,316 |   |
|  Subscriber base asset                |   |   | 3,427,755  |   |
|  Advertiser base asset                |   |   | 10,613,497 |   |
|  Total assets                         |   | $      | 79,283,548 |   |
|                                       |   |   |       |   |
|  Current liabilities                  |   | $      | 740,395    |   |
|                                       |   |   |       |   |
|  Net assets acquired                  |   | $      | 78,543,153 |   |

----

|                                       |   | 2007                                 |
|--------------------------------------------|--------|--------------------------------------|
|                                       |   | (in millions, expect per share data) |
|                                       |   |                                 |   |
|  Revenues                             |   |  $                              | 167.5 |
|  Net income                           |   |  $                              | 6.9 |
|                                       |   |                                 |   |
|  Earnings                             |   |                                 |   |
|       Basic       |   |  $                              |  0.69 |
|       Diluted     |   |  $                              |  0.68 |
|                                       |   |                                 |   |
|  Weighted average shares outstanding: |   |                                 |   |
|       Basic       |   |                                 |  10.0 |
|       Diluted     |   |                                 |  10.1 |
|                                       |   |                                 |   |
|                                       |   |                                 |   |

----

----

| 2010                                |   | Printing |        | Office Products & Furniture |   |   | Newspaper        |    |   | Total  |                |
|-------------------------------------|--------|----------|-------------|---------------------------------|--------|--------|------------------|---------|--------|--------|---------------------|
| Revenues                            |   | $        | 90,106,896  |                            |   | $      | 39,691,717       |    |   | $      | 15,525,399          |   |   | $ | 145,324,012 |   |
| Elimination of intersegment revenue |   |     | (9,136,312  | )                               |   |   |  (6,254,129 | )  |   |   | -    |   |   |   |  (15,390,441 | )  |
| Consolidated revenues               |   | $        | 80,970,584  |                            |   | $      | 33,437,588       |    |   | $      | 15,525,399          |   |   | $ | 129,933,571 |   |
| Operating income                    |   |     | 180,802     |                            |   |   | 2,055,990        |    |   |   | 3,136,502           |   |   |   | 5,373,294 |   |
| Depreciation & amortization     |   |     | 3,033,232   |                            |   |   | 131,529          |    |   |   | 1,135,901           |   |   |   | 4,300,662 |   |
| Capital expenditures                |   |     | 742,458     |                            |   |   | 53,556           |    |   |   | 59,496              |   |   |   | 855,510 |   |
| Identifiable assets                 |   |     | 40,203,824  |                            |   |   | 7,558,086        |    |   |   | 35,051,917          |   |   |   | 82,813,827 |   |
| Goodwill                            |   |     | 2,226,837   |                            |   |   | 1,230,485        |    |   |   | 11,874,961          |   |   |   | 15,332,283 |   |
|                                |   |     |        |                            |   |   |             |    |   |   |                |   |   |   |   |   |
| 2009                                |   | Printing |        | Office Products & Furniture |   |   | Newspaper        |    |   | Total  |                |
| Revenues                            |   | $        | 99,463,762  |                            |   | $      | 42,518,613       |    |   | $      | 16,393,896          |   |   | $ | 158,376,271 |   |
| Elimination of intersegment revenue |   |     | (10,473,968 | )                               |   |   | (6,644,182       | )       |   |   | -                   |   |   |   | (17,118,150 | ) |
| Consolidated revenues               |   | $        | 88,989,794  |                            |   | $      | 35,874,431       |    |   | $      | 16,393,896          |   |   | $ | 141,258,121 |   |
| Operating income (loss)             |   |     | (1,166,528  | )                          |   |   | 2,284,729        |    |   |   | (38,711,612         | )  |   |   | (37,593,411 | )  |
| Depreciation & amortization     |   |     | 3,370,162   |                            |   |   | 168,659          |    |   |   | 1,706,117           |   |   |   | 5,244,938 |   |
| Capital expenditures                |   |     | 2,606,836   |                            |   |   | 143,533          |    |   |   | 60,167              |   |   |   | 2,810,536 |   |
| Identifiable assets                 |   |     | 34,276,584  |                            |   |   | 8,757,366        |    |   |   | 47,277,025          |   |   |   | 90,310,975 |   |
| Goodwill                            |   |     | 2,226,837   |                            |   |   | 1,230,485        |    |   |   | 11,874,961          |   |   |   | 15,332,283 |   |
|                                |   |     |        |                            |   |   |             |    |   |   |                |   |   |   |   |   |
| 2008 (Restated)                     |   | Printing |        | Office Products & Furniture |   |   | Newspaper        |    |   | Total  |                |
| Revenues                            |   | $        | 118,634,673 |                            |   | $      | 49,708,630       |    |   |   | 18,939,250          |   |   | $ | 187,282,553 |   |
| Elimination of intersegment revenue |   |     | (13,359,482 | )                               |   |   | (8,168,516       | )       |   |   | -                   |   |   |   | (21,527,998 | ) |
| Consolidated revenues               |   | $        | 105,275,191 |                            |   | $      | 41,540,114       |    |   |   | 18,939,250          |   |   | $ | 165,754,555 |   |
| Operating income                    |   |     | 5,533,022   |                            |   |   | 3,628,716        |    |   |   | 3,557,697           |   |   |   | 12,719,435 |   |
| Depreciation & amortization     |   |     | 3,534,326   |                            |   |   | 214,298          |    |   |   | 1,635,885           |   |   |   | 5,384,509 |   |
| Capital expenditures                |   |     | 2,136,125   |                            |   |   | 84,434           |    |   |   | 152,563             |   |   |   | 2,373,122 |   |
| Identifiable assets                 |   |     | 49,649,845  |                            |   |   | 10,484,177       |    |   |   | 79,447,023          |   |   |   | 139,581,045 |   |
| Goodwill                            |   |     | 2,226,837   |                            |   |   | 1,230,485        |    |   |   | 35,437,456          |   |   |   | 38,894,778 |   |

----

|                                           |   | 2010   |              |    | 2009   |   |        | 2008 (Restated) |   |
|------------------------------------------------|--------|--------|-------------------|---------|--------|--------|-------------|-----------------|--------|
| Revenues:                                      |   |   |              |    |   |   |        |            |   |
| Total segment revenues                         |   | $      | 145,324,012       |    |   | $      | 158,376,271 |            |   | $ | 187,282,553 |   |
| Elimination of intersegment revenue            |   |   |  (15,390,441 | )  |   |   | (17,118,150 | )               |   |   | (21,527,998 | ) |
| Consolidated revenue                           |   | $      | 129,933,571       |    |   | $      | 141,258,121 |            |   | $ | 165,754,555 |   |
|                                           |   |   |              |    |   |   |        |            |   |   |   |   |
| Operating income (loss):                       |   |   |              |    |   |   |        |            |   |   |   |   |
| Total segment operating income (loss)     |   | $      | 5,373,294         |    |   | $      | (37,593,411 | )          |   | $ | 12,719,435 |   |
| Interest income                                |   |   | -       |    |   |   | 2,771       |            |   |   | 65,657 |   |
| Interest expense                               |   |   |  (5,414,450  | )  |   |   | (5,184,668  | )               |   |   | (5,733,677 | ) |
| Other income (loss)                       |   |   | 1,013,041         |    |   |   | (475,488    | )          |   |   | 69,602 |   |
| Consolidated income (loss) before income taxes |   | $      | 971,885           |    |   | $      | (43,250,796 | )          |   | $ | 7,121,017 |   |
|                                           |   |   |              |    |   |   |        |            |   |   |   |   |
| Identifiable assets:                           |   |   |              |    |   |   |        |            |   |   |   |   |
| Total segment identifiable assets              |   | $      | 82,813,827        |    |   | $      | 90,310,975  |            |   | $ | 139,581,045 |   |
| Elimination of intersegment assets             |   |   | 9,420,159         |    |   |   | 10,710,918  |            |   |   | 1,697,800 |   |
| Total consolidated assets                      |   | $      | 92,233,986        |    |   | $      | 101,021,893 |            |   | $ | 141,278,845 |   |

----

|                                                         |   | October 31, 2010       |
|--------------------------------------------------------------|--------|------------------------|
|                                                         |   |  ThreeMonthsEnded |   |  TwelveMonthsEnded |
|                                                         |   |                   |   |   |
| Occupancy related costs                                      | $      | -                 | $ | 1,173,175 |
| Costs incurred to streamline production, personnel and other |   | 103,651                |   | 467,621 |
| Inventory                                                    |   | -                 |   | 171,529 |
| Total                                                        | $      | 103,651                | $ | 1,812,325 |

|                             |   | Occupancy related costs |    | Costs incurred to streamline production, personnel and other |    | Total         |    |
|----------------------------------|--------|-------------------------|---------|--------------------------------------------------------------|---------|---------------|---------|
|                             |   |                    |    |                                                         |    |          |    |
| Balance at October 31, 2009      | $      | -             | $       | -                                                  | $       | -   |    |
| 2010 expenses                    |   | 1,173,175               |    | 467,621                                                      |    | 1,640,796     |    |
| Paid in 2010                     |   | (135,627                | )  | (459,159                                                     | )  | (594,786      | )  |
| Balance at October 31, 2010 | $      | 1,037,548               | $       | 8,462                                                        | $       | 1,046,010     |    |

----

|                      | Fair Value Measurements as of       |   |
|---------------------------|-------------------------------------|--------|
|                      | October 31, 2010 and 2009 |   |
|                      | Level 1                             |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Liabilities:              |                                |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap (2010) | $                                   | -      |   |   | $ | - |   |   | $ | - |   |   | $ | -  |   |
| Interest rate swap (2009) |                                | -      |   |   |   | 962,893 |   |   |   | - |   |   |   | 962,893 |   |

----

|                                               |   | 2010     |             |   | 2009         |   |
|----------------------------------------------------|--------|----------|------------------|--------|--------------|--------|
|                                               |   | Gross    |             |   |         |   |   | Gross |   |   |   |   |
|                                               |   | Carrying |             |   | Accumulated  |   |   | Carrying |   |   | Accumulated |   |
|                                               |   | Amount   |             |   | Amortization |   |   | Amount |   |   | Amortization |   |
| Amortizable intangible assets:                     |   |     |             |   |         |   |   |   |   |   |   |   |
| Non-compete agreement                              |   | $        | 1,000,000   |   |         | $      | 880,952 |   |   | $ | 1,000,000 |   |   | $ | 738,095 |   |
| Customer relationships                             |   |     | 2,451,073   |   |         |   | 782,739 |   |   |   | 2,451,073 |   |   |   | 660,641 |   |
|     Advertising and subscriber base |   |     | 4,989,768   |   |         |   | 1,656,997 |   |   |   | 4,989,768 |   |   |   | 1,509,335 |   |
| Other                                              |   |     | 564,946     |   |         |   | 489,738 |   |   |   | 564,946 |   |   |   | 452,638 |   |
|                                               |   |     | 9,005,787   |   |         |   | 3,810,426  |   |   |   | 9,005,787 |   |   |   | 3,360,709 |   |
|                                               |   |     |             |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Unamortizable intangible assets:                   |   |     |             |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                           |   |     | 15,839,561  |   |         |   | 507,278  |   |   |   | 15,839,561 |   |   |   | 507,278 |   |
|     Trademark and masthead          |   |     | 10,001,812  |   |         |   | -  |   |   |   | 10,001,812 |   |   |   | - |   |
|                                               |   |     | 25,841,373  |   |         |   | 507,278  |   |   |   | 25,841,373 |   |   |   | 507,278 |   |
|                                               |   |     |             |   |         |   |   |   |   |   |   |   |   |   |   |   |
|  Total goodwill and other intangibles         |   | $        | 34,847,160  |   |         | $      | 4,317,704  |   |   | $ | 34,847,160 |   |   | $ | 3,867,987 |   |
|                                               |   |     |             |   |         |   |   |   |   |   |   |   |   |   |   |   |

----

| 2011       |   |  $ | 417,309   |   |
|------------|--------|---------|-----------|--------|
| 2012       |   |    | 292,760   |   |
| 2013       |   |    | 287,261   |   |
| 2014       |   |    | 275,970   |   |
| 2015       |   |    | 269,761   |   |
| Thereafter |   |    | 3,652,300 |   |
|       |   | $       | 5,195,361 |   |

|                                |   | Printing |            |   | Office Products and Furniture |   |      | Newspaper |   |   | Total       |   |
|-------------------------------------|--------|----------|-----------------|--------|-------------------------------|--------|-----------|-----------|--------|--------|-------------|--------|
|                                |   |     |            |   |                          |   |      |      |   |   |        |   |   |   |   |   |
| Balance as of October 31, 2008      |   |     |            |   |                          |   |      |      |   |   |        |   |   |   |   |   |
| Goodwill                            |   | $        | 2,226,837       |   |                          | $      | 1,230,485 |      |   | $      | 35,437,456  |   |   | $ | 38,894,778 |   |
| Accumulated impairment losses       |   |     | -               |   |                          |   | -         |      |   |   | -      |   |   |   | - |   |
|                                |   |     | 2,226,837       |   |                          |   | 1,230,485 |      |   |   | 35,437,456  |   |   |   | 38,894,778 |   |
| Goodwill acquired Fiscal 2009       |   |     | -               |   |                          |   | -         |      |   |   | -           |   |   |   | - |   |
| Impairment losses Fiscal 2009  |   |     | -               |   |                          |   | -         |      |   |   | (23,562,495 | )      |   |   | (23,562,495 | ) |
| Balance at October 31, 2009         |   |     |            |   |                          |   |      |      |   |   |        |   |   |   |   |   |
| Goodwill                            |   |     | 2,226,837       |   |                          |   | 1,230,485 |      |   |   | 35,437,456  |   |   |   | 38,894,778 |   |
| Accumulated Impairment losses       |   |     | -               |   |                          |   | -         |      |   |   | (23,562,495 | )      |   |   | (23,562,495 | ) |
|                                |   |     | 2,226,837       |   |                          |   | 1,230,485 |      |   |   | 11,874,961  |   |   |   | 15,332,283 |   |
| Goodwill acquired Fiscal 2010       |   |     | -               |   |                          |   | -         |      |   |   | -           |   |   |   | - |   |
| Impairment losses Fiscal 2010  |   |     | -               |   |                          |   | -         |      |   |   | -           |   |   |   | - |   |
| Balance at October 31, 2010         |   |     |            |   |                          |   |      |      |   |   |        |   |   |   |   |   |
| Goodwill                            |   |     | 2,226,837       |   |                          |   | 1,230,485 |      |   |   | 35,437,456  |   |   |   | 38,894,778 |   |
|  Accumulated Impairment Losses |   |     | -               |   |                          |   | -         |      |   |   | (23,562,495 | )      |   |   | (23,562,495 | ) |
|                                |   | $        | 2,226,837  |   |                          | $      | 1,230,485 |      |   | $      | 11,874,961  |   |   | $ | 15,332,283 |   |

----

|                                        |   | Printing |   |   | Office Products and Furniture |   |   | Newspaper |   |   | Total      |   |
|---------------------------------------------|--------|----------|--------|--------|-------------------------------|--------|--------|-----------|--------|--------|------------|--------|
|                                        |   |     |   |   |                          |   |   |      |   |   |       |   |   |   |   |   |
| Balance as of October 31, 2008              |   |     |   |   |                          |   |   |      |   |   |       |   |   |   |   |   |
| Trademark and Masthead                      |   | $        | -      |   |                          | $      | -      |      |   | $      | 18,515,316 |   |   | $ | 18,515,316 |   |
| Accumulated impairment losses               |   |     | -      |   |                          |   | -      |      |   |   | -     |   |   |   | - |   |
|                                        |   |     | -      |   |                          |   | -      |      |   |   | 18,515,316 |   |   |   | 18,515,316 |   |
| Trademark and Masthead acquired Fiscal 2009 |   |     | -      |   |                          |   | -      |      |   |   | -          |   |   |   | - |   |
| Impairment losses Fiscal 2009          |   |     | -      |   |                          |   | -      |      |   |   | (8,513,504 | )      |   |   | (8,513,504 | ) |
| Balance at October 31, 2009                 |   |     |   |   |                          |   |   |      |   |   |       |   |   |   |   |   |
| Trademark and Masthead                      |   |     | -      |   |                          |   | -      |      |   |   | 18,515,316 |   |   |   | 18,515,316 |   |
| Accumulated Impairment losses               |   |     | -      |   |                          |   | -      |      |   |   | (8,513,504 | )      |   |   | (8,513,504 | ) |
|                                        |   |     | -      |   |                          |   | -      |      |   |   | 10,001,812 |   |   |   | 10,001,812 |   |
| Trademark and Masthead acquired Fiscal 2010 |   |     | -      |   |                          |   | -      |      |   |   | -          |   |   |   | - |   |
| Impairment losses Fiscal 2010          |   |     | -      |   |                          |   | -      |      |   |   | -          |   |   |   | - |   |
| Balance at October 31, 2010                 |   |     |   |   |                          |   |   |      |   |   |       |   |   |   |   |   |
| Trademark and Masthead                      |   |     | -      |   |                          |   | -      |      |   |   | 18,515,316 |   |   |   | 18,515,316 |   |
|  Accumulated Impairment Losses         |   |     | -      |   |                          |   | -      |      |   |   | (8,513,504 | )      |   |   | (8,513,504 | ) |
|                                        |   | $        | -      |   |                          | $      | -      |      |   | $      | 10,001,812 |   |   | $ | 10,001,812 |   |

|                                                                           |   | Printing |    |   | Office Products and Furniture |   |      | Newspaper |   |   | Total      |   |
|--------------------------------------------------------------------------------|--------|----------|---------|--------|-------------------------------|--------|-----------|-----------|--------|--------|------------|--------|
|                                                                           |   |     |    |   |                          |   |      |      |   |   |       |   |   |   |   |   |
| Balance as of October 31, 2008                                                 |   |     |    |   |                          |   |      |      |   |   |       |   |   |   |   |   |
| Amortizing Intangible Assets (net of amortization expense)                     |   | $        | 938,412 |   |                          | $      | 1,540,998 |      |   | $      | 13,251,431 |   |   | $ | 15,730,841 |   |
| Accumulated impairment losses                                                  |   |     | -       |   |                          |   | -         |      |   |   | -     |   |   |   | - |   |
|                                                                           |   |     | 938,412 |   |                          |   | 1,540,998 |      |   |   | 13,251,431 |   |   |   | 15,730,841 |   |
| Amortizing Intangible Assets (net of amortization expense)acquired Fiscal 2009 |   |     | -       |   |                          |   | -         |      |   |   | -          |   |   |   | - |   |
| Impairment losses Fiscal 2009                                             |   |     | -       |   |                          |   | -         |      |   |   | (9,051,484 | )      |   |   | (9,051,484 | ) |
| Amortization expense                                                           |   |     | 138,571 |   |                          |   | 176,195   |      |   |   | 719,513    |   |   |   | 1,034,279 |   |
| Balance at October 31, 2009                                                    |   |     |    |   |                          |   |      |      |   |   |       |   |   |   |   |   |
| Amortizing Intangible Assets (net of amortization expense)                     |   |     | 799,841 |   |                          |   | 1,364,803 |      |   |   | 12,531,918 |   |   |   | 14,696,562 |   |
| Accumulated Impairment losses                                                  |   |     | -       |   |                          |   | -         |      |   |   | (9,051,484 | )      |   |   | (9,051,484 | ) |
|                                                                           |   |     | 799,841 |   |                          |   | 1,364,803 |      |   |   | 3,480,434  |   |   |   | 5,645,078 |   |
| Amortizing Intangible Assets (net of amortization expense)acquired Fiscal 2010 |   |     | -       |   |                          |   | -         |      |   |   | -          |   |   |   | - |   |
| Impairment losses Fiscal 2010                                             |   |     | -       |   |                          |   | -         |      |   |   | -          |   |   |   | - |   |
| Amortization expense                                                           |   |     | 125,862 |   |                          |   | 176,195   |      |   |   | 147,660    |   |   |   | 449,717 |   |
| Balance at October 31, 2010                                                    |   |     |    |   |                          |   |      |      |   |   |       |   |   |   |   |   |
| Amortizing Intangible Assets (net of amortization expense)                     |   |     | 673,979 |   |                          |   | 1,188,608 |      |   |   | 12,384,258 |   |   |   | 14,246,845 |   |
| Accumulated Impairment Losses                                                  |   |     | -       |   |                          |   | -         |      |   |   | (9,051,484 | )      |   |   | (9,051,484 | ) |
|                                                                           |   | $        | 673,979 |   |                          | $      | 1,188,608 |      |   | $      | 3,332,774  |   |   | $ | 5,195,361 |   |

----

----

|                                                               |   | Income (loss) |        | WeightedAverage Shares |   | PerShareAmount       |   |
|--------------------------------------------------------------------|--------|---------------|-------------|-----------------------------|--------|----------------------|--------|
| Year Ended October 31, 2010                                        |   |          |        |                        |   |                 |   |   |   |   |
| Net Income                                                         |   | $             | 488,134     |                        |   |                 |   |   |   |   |
| Basic earnings per share                                           |   |          |        |                        |   |                 |   |   |   |   |
| Income available to common shareholders                       |   |          | 488,134     |                        |   | 9,988,000            |   | $ | 0.05 |   |
| Effect of dilutive securities stock options                        |   |          |        |                        |   |   -   |   |   |   |   |
| Diluted earnings per share                                    |   |          |        |                        |   |                 |   |   |   |   |
| Income available to common shareholders and assumed conversions    |   | $             | 488,134     |                        |   | 9,988,000            |   | $ | 0.05 |   |
|                                                               |   |          |        |                        |   |                 |   |   |   |   |
| Year Ended October 31, 2009                                        |   |          |        |                        |   |                 |   |   |   |   |
| Net Loss                                                           |   | $             | (27,520,624 | )                           |   |                 |   |   |   |   |
| Basic loss per share                                          |   |          |        |                        |   |                 |   |   |   |   |
| Loss available to common shareholders                              |   |          | (27,520,624 | )                           |   | 9,988,000            |   | $ | (2.76) |   |
| Effect of dilutive securities stock options                        |   |          |        |                        |   |  -    |   |   |   |   |
| Diluted loss per share                                   |   |          |        |                        |   |                 |   |   |   |   |
| Loss available to common shareholders and assumed conversions      |   | $             | (27,520,624 | )                           |   | 9,988,000            |   | $ | (2.76) |   |
|                                                               |   |          |        |                        |   |                 |   |   |   |   |
| Year Ended October 31, 2008 (Restated)                             |   |          |        |                        |   |                 |   |   |   |   |
| Net Income                                                         |   | $             | 4,658,161   |                        |   |                 |   |   |   |   |
| Basic earnings per share                                           |   |          |        |                        |   |                 |   |   |   |   |
| Income available to common shareholders                            |   |          | 4,658,161   |                        |   | 9,986,000            |   | $ | 0.47 |   |
| Effect of dilutive securities stock options                        |   |          |        |                        |   | 38,000               |   |   |   |   |
| Diluted earnings per share                                         |   |          |        |                        |   |                 |   |   |   |   |
| Loss available to common shareholders and assumed conversions |   | $             | 4,658,161   |                        |   | 10,024,000           |   | $ | 0.46 |   |

----

|                                 |   | FirstQuarter |       | SecondQuarter |   | ThirdQuarter |   | FourthQuarter |       |
|--------------------------------------|--------|--------------|------------|---------------|--------|--------------|--------|---------------|------------|
| Revenues                             |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2010                                 |   | $            | 32,387,000 |          | $      | 33,739,000   |   | $             | 31,890,000 |   | $ | 31,918,000 |   |
| 2009                                 |   | $            | 36,891,000 |          | $      | 36,140,000   |   | $             | 34,356,000 |   | $ | 33,871,000 |   |
|                                 |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Gross profit                         |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2010                                 |   | $            | 9,606,000  |          | $      | 10,410,000   |   | $             | 9,028,000  |   | $ | 9,579,000 |   |
| 2009                                 |   | $            | 9,779,000  |          | $      | 10,439,000   |   | $             | 9,666,000  |   | $ | 10,944,000 |   |
|                                 |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Net income (loss)                    |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2010                                 |   | $            | (213,000   | )             | $      | 333,000      |   | $             | (570,000   | ) | $ | 938,000 |   |
| 2009 (Restated)                      |   | $            | (634,000   | )             | $      | 295,000      |   | $             | (307,000   | ) | $ | (26,875,000 | ) |
|  Earnings (loss) per share |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Basic                                |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2010                                 |   | $            | (0.02      | )             | $      | 0.03         |   | $             | (0.06      | ) | $ | 0.09 |   |
| 2009 (Restated)                      |   | $            | (0.06      | )             | $      | 0.03         |   | $             | (0.03      | ) | $ | (2.69 | ) |
|                                 |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Diluted                              |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2010                                 |   | $            | (0.02      | )             | $      | 0.03         |   | $             | (0.06      | ) | $ | 0.09 |   |
| 2009 (Restated)                      |   | $            | (0.06      | )             | $      | 0.03         |   | $             | (0.03      | ) | $ | (2.69 | ) |
|                                 |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Weighted average shares outstanding  |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Basic                                |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2010                                 |   |         | 9,988,000  |          |   | 9,988,000    |   |          | 9,988,000  |   |   | 9,988,000 |   |
| 2009                                 |   |         | 9,988,000  |          |   | 9,988,000    |   |          | 9,988,000  |   |   | 9,988,000 |   |
|                                 |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Diluted                              |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2010                                 |   |         | 9,988,000  |          |   | 9,988,000    |   |          | 9,988,000  |   |   | 9,988,000 |   |
| 2009                                 |   |         | 9,988,000  |          |   | 9,988,000    |   |          | 9,988,000  |   |   | 9,988,000 |   |

----

|  Description                     |   | Balance at beginning of period |      |   | Balances of acquired companies |   |          | Additions charged to costs and expense |   |   | Deductions(1) |   |   | Balance at end of period |       |
|---------------------------------------|--------|--------------------------------|-----------|--------|--------------------------------|--------|---------------|----------------------------------------|--------|--------|---------------|--------|--------|--------------------------|------------|
|  2010                            |   |                           |      |   |                           |   |          |                                   |   |   |          |   |   |                     |       |
|  Allowance for doubtful accounts |   | $                              | 1,353,021 |   |                           | $      | -   |                                   |   | $      | 370,333       |   |   | $                        | (426,411   | ) |   | $ | 1,296,943 |   |
|                                  |   |                           |      |   |                           |   |          |                                   |   |   |          |   |   |                     |       |   |   |   |   |   |
|  2009                            |   |                           |      |   |                           |   |          |                                   |   |   |          |   |   |                     |       |   |   |   |   |   |
|  Allowance for doubtful accounts |   | $                              | 1,851,485 |   |                           | $      | -   |                                   |   | $      | 876,145       |   |   | $                        | (1,374,609 | ) |   | $ | 1,353,021 |   |
|                                  |   |                           |      |   |                           |   |          |                                   |   |   |          |   |   |                     |       |   |   |   |   |   |
|  2008                            |   |                           |      |   |                           |   |          |                                   |   |   |          |   |   |                     |       |   |   |   |   |   |
|  Allowance for doubtful accounts |   | $                              | 1,511,037 |   |                           | $      | -   |                                   |   | $      | 854,283       |   |   | $                        | (513,835   | ) |   |   | 1,851,485 |   |

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