| 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)        |

----

| 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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----

----

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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          | 73             | 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     | 60   | 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              | 68             | 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.                                                                                                                                                                                                                                                                                                  |

----

| R.      Douglas McElwain | 62 | 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         | 44 | 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.                                                                                                                |
| Walter      R. Sansom    | 80 | Secretary      of the Company since December 1992; Production Coordinator of the Company      since December 1992 and of Harrah and Reynolds from August 1968 to      December 1992.                                                                                                                                                                                                                                                                                                    |
| James      A. Rhodes     | 53 | 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           |   |  121,640            |   |  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             |   |  2010                    |
|  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       |   |  42,000        |   |  2010               |
|        120      Hills Plaza Charleston,      West Virginia (3)                       |   | Champion Output Solutions                    |   | 22,523                 |   | 115,992                  |   |        2011              |
|  1539-A River Oaks Road New Orleans, Louisiana (2)                                        |   | Champion      Graphic Communications         |   | 3,000                  |   | 36,000                   |   |   2011              |
|  1639-51      7th AvenueHuntington, West Virginia (1)                                     |   | The      Herald-Dispatch                     |   | 14,000                 |   | 39,600              |   |  Terminated      in 2009 |
|  Route 2 Industrial LaneHuntington, West Virginia (1)       |   |  The      Herald-Dispatch               |   | 35,000            |   | 84,000              |   |  2013                    |

----

----

----

|   |                      |  Fiscal Year 2009       |        |  Fiscal      Year 2008 |              |
|--------|---------------------------|------------------------------|-------------|-----------------------------|-------------------|
|   |                      | High                         | Low         |                        | High              | Low |   |
|   |  First      quarter  |  $3.40                  |  $2.20 |                        |  $      6.30 |  $      4.45 |   |
|   |  Second quarter      |     3.00 |  1.40  |                        | 5.92              | 4.55 |   |
|   |  Third      quarter  |  1.98                   |  1.42  |                        |  5.16        |  4.25 |   |
|   |  Fourth      quarter |  2.09                   |  1.65  |                        |  5.45        |  3.07 |   |
|   |                      |                         |        |                        |              |   |   |

|         |                                                                                                                  |  Fiscal      Year 2010 |   |  Fiscal      Year 2009 |   |  Fiscal      Year 2008 |    |
|--------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------|--------|-----------------------------|--------|-----------------------------|---------|
|    |        First      quarter                                                                                        |                        | $      | -                           |   | $                           | 0.06    |   | $ |  0.06 |   |
|    |        Second quarter                                                                                            |                        |   | -                           |   |                        |  - |   |   |  0.06 |   |
|    |        Third      quarter                                                                                        |                        |   | -                           |   |                        | -       |   |   |  0.06 |   |
|    |        Fourth quarter                 |                        |   | -                           |   |                        | -       |   |   |  0.06 |   |

----

|                                                                     |   | Year      Ended October 31,                          |
|--------------------------------------------------------------------------|--------|------------------------------------------------------|
|                                                                     |   | 2009 (3)                                        |   |   | 2008  |   |   | 2007 (2) |   |   | 2006 (1) |   |   | 2005 (1) |   |
|                                                                     |   |                                                 |   |   |         (Restated) |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   | (In      thousands, except share and per share data) |
| OPERATING      STATEMENT DATA:                                           |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                                                 |   | $                                                    | 88,990 |   |   | $ | 105,275 |   |   | $ | 104,500 |   |   | $ | 108,475 |   |   | $ | 100,308 |   |
| Office      products and office furniture                                |   |                                                 | 35,874 |   |   |   | 41,540 |   |   |   | 41,449 |   |   |   | 38,774 |   |   |   | 36,467 |   |
| Newspaper                                                                |   |                                                 | 16,394 |   |   |   | 18,939 |   |   |   | 2,540 |   |   |   | - |   |   |   | - |   |
| Total      revenues                                                      |   |                                                 | 141,258 |   |   |   | 165,754 |   |   |   | 148,489 |   |   |   | 147,249 |   |   |   | 136,775 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales & newspaper operating costs:                      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                                                 |   |                                                 | 66,856 |   |   |   | 75,590 |   |   |   | 75,617 |   |   |   | 77,077 |   |   |   | 72,828 |   |
| Office      products and office furniture                                |   |                                                 | 24,859 |   |   |   | 28,457 |   |   |   | 28,834 |   |   |   | 26,778 |   |   |   | 25,694 |   |
| Newspaper      cost of sales & operating costs                  |   |                                                 | 8,715 |   |   |   | 9,492 |   |   |   | 1,188 |   |   |   | - |   |   |   | - |   |
| Total      cost of sales & newspaper operating costs                 |   |                                                 | 100,430 |   |   |   | 113,539 |   |   |   | 105,639 |   |   |   | 103,855 |   |   |   | 98,522 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                        |   |                                                 | 40,828 |   |   |   | 52,215 |   |   |   | 42,850 |   |   |   | 43,394 |   |   |   | 38,253 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expense                         |   |                                                 | 37,126 |   |   |   | 39,529 |   |   |   | 32,336 |   |   |   | 34,018 |   |   |   | 34,797 |   |
| Asset      impairments costs                                             |   |                                                 | 41,334 |   |   |   | -  |   |   |   | -  |   |   |   | -  |   |   |   | -  |   |
| Hurricane      and relocation costs, net of recoveries                   |   |                                                 | (39 | ) |   |   | (33) |   |   |   | - |   |   |   | (377 | )  |   |   | 1,021  |   |
|                                                                     |   |                                                 |  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      income from operations                                       |   |                                                 | (37,593 | ) |   |   | 12,719 |   |   |   | 10,514 |   |   |   | 9,753 |   |   |   | 2,435 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                     |   |                                                 | 3 |   |   |   | 66 |   |   |   | 45 |   |   |   | 28 |   |   |   | 18 |   |
| Interest      expense                                                    |   |                                                 | (5,185 | ) |   |   | (5,734 | ) |   |   | (1,455 | ) |   |   | (610 | ) |   |   | (610 | ) |
| Other      (expense) income                                              |   |                                                 | (476 | ) |   |   | 70 |   |   |   | 179 |   |   |   | 32 |   |   |   | 120 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      income before income taxes                              |   |                                                 | (43,251 | ) |   |   | 7,121 |   |   |   | 9,283 |   |   |   | 9,203 |   |   |   | 1,963 |   |
| Income      tax benefit (expense)                                   |   |                                                 | 15,730 |   |   |   | (2,463 | ) |   |   | (3,203 | ) |   |   | (3,729 | ) |   |   | (846 | ) |
| Net      (loss) income                                                   |   | $                                                    | (27,521 | ) |   | $ | 4,658 |   |   | $ | 6,080 |   |   | $ | 5,474 |   |   | $ | 1,117 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      earnings per share:                                          |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                    |   | $                                                    | (2.76 | ) |   | $ | 0.47 |   |   | $ | 0.61 |   |   | $ | 0.56 |   |   | $ | 0.11 |   |
| Diluted                                                                  |   |                                                 | (2.76 | ) |   |   | 0.46 |   |   |   | 0.60 |   |   |   | 0.55 |   |   |   | 0.11 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      per share         |   | $                                                    | 0.06 |   |   | $ | 0.24 |   |   | $ | 0.24 |   |   | $ | 0.20 |   |   | $ | 0.20 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares      outstanding:                         |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                    |   |                                                 | 9,988,000 |   |   |   | 9,986,000 |   |   |   | 9,957,000 |   |   |   | 9,818,000 |   |   |   | 9,735,000 |   |
| Diluted                                                                  |   |                                                 | 9,988,000 |   |   |   | 10,024,000 |   |   |   | 10,103,000 |   |   |   | 9,972,000 |   |   |   | 9,809,000 |   |
|                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (1)    |   | During      the fourth quarter of 2005, the Company incurred various charges resulting      from Hurricane Katrina. As a result of the hurricane, the Company recorded      a pre-tax charge of $1,021,000 or $581,000 net of tax or $0.06 per      share on a basic and diluted basis. In 2006, 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 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.  |

|                                                             |   |  At      October 31,                |
|------------------------------------------------------------------|--------|---------------------------------------------------------|
|                                                             |   | 2009                                                    |   |   |  2008      (Restated) |   |   |  2007 |   |   |  2006 |   |   |  2005 |   |
|                                                             |   |    (in      thousands)    |   |
|  BALANCE      SHEET DATA:                                   |   |
|  Cash      and cash equivalents/Negative book cash balances |   | $                                                       | 1,159 |   |   | $ | (987 | ) |   | $ | 5,793 |   |   | $ | 5,487 |   |   | $ | 3,662 |   |
|  Working      capital (1)                                   |   |                                                    | (42,579 | ) |   |   | 20,367 |   |   |   | 25,308 |   |   |   | 25,955 |   |   |   |  26,081 |   |
|  Total      assets                                          |   |                                                    | 101,022 |   |   |   | 141,279 |   |   |   | 149,212 |   |   |   | 65,989 |   |   |   |  61,645 |   |
|  Long-term      debt (net of current portion) (2)           |   |                                                    | 918 |   |   |   | 66,332 |   |   |   | 79,378 |   |   |   | 4,220 |   |   |   |  6,761 |   |
|  Shareholders'      equity                                  |   |                                                    | 22,934 |   |   |   | 50,496 |   |   |   | 48,727 |   |   |   | 44,777 |   |   |   |  40,752 |   |

----

----

----

----

|                                                   |   | Year      Ended October 31, |    |
|--------------------------------------------------------|--------|-----------------------------|---------|
|                                                   |   | ($      In thousands)       |    |
|                                                   |   | 2009                        |    |   | 2008      (Restated) |   |   | 2007 |   |
| Revenues:                                              |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                               |   | $                           | 88,990  |   |   | 63.0 | % |   | $ | 105,275 |   |   | 63.5 | % |   | $ | 104,500 |   |   | 70.4 | % |
| Office      products and office furniture              |   |                        | 35,874  |   |   | 25.4 |  |   |   | 41,540 |   |   | 25.1 |  |   |   | 41,449 |   |   | 27.9 |  |
| Newspaper                                              |   |                        | 16,394  |   |   | 11.6 |   |   |   | 18,939 |   |   | 11.4 |   |   |   | 2,540 |   |   | 1.7 |   |
| Total      revenues                                    |   |                        | 141,258 |   |   | 100.0 |  |   |   | 165,754 |   |   | 100.0 |  |   |   | 148,489 |   |   | 100.0 |  |
| Cost      of sales & newspaper operating costs:    |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Printing                                               |   |                        | 66,856  |   |   | 47.3 |  |   |   | 75,590 |   |   | 45.6 |  |   |   | 75,617 |   |   | 50.9 |  |
| Office      products and office furniture              |   |                        | 24,859  |   |   | 17.6 |  |   |   | 28,457 |   |   | 17.2 |  |   |   | 28,834 |   |   | 19.4 |  |
| Newspaper      cost of sales & operating costs     |   |                        | 8,715   |   |   | 6.2 |   |   |   | 9,492 |   |   | 5.7 |   |   |   | 1,188 |   |   | 0.8 |   |
| Total      cost of sales and newspaper operating costs |   |                        | 100,430 |   |   | 71.1 |  |   |   | 113,539 |   |   | 68.5 |  |   |   | 105,639 |   |   | 71.1 |  |
| Gross      profit                                      |   |                        | 40,828  |   |   | 28.9 |  |   |   | 52,215 |   |   | 31.5 |  |   |   | 42,850 |   |   | 28.9 |  |
|                                                        |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      General and Administrative expenses       |   |                        | 37,126  |   |   | 26.2 |  |   |   | 39,529 |   |   | 23.8 |  |   |   | 32,336 |   |   | 21.8 |  |
| Asset      Impairment Costs                            |   |                        | 41,334  |   |   | 29.3 |   |   |   | - |   |   | 0.0 |   |   |   | - |   |   |   |   |
| Hurricane      and relocation costs, net of recoveries |   |                        | (39     | ) |   | 0.0 |  |   |   | (33 | ) |   | 0.0 |  |   |   | - |   |   | 0.0 |  |
| (Loss)      income from operations                     |   |                        | (37,593 | ) |   | (26.6 | ) |   |   | 12,719 |   |   | 7.7 |  |   |   | 10,514 |   |   | 7.1 |  |
| Other      income (expense):                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                   |   |                        | 3       |   |   | 0.0 |  |   |   | 66 |   |   | 0.0 |  |   |   | 45 |   |   | 0.0 |  |
| Interest      expense                                  |   |                        | (5,185  | ) |   | (3.7 | ) |   |   | (5,734 | ) |   | (3.4 | ) |   |   | (1,455 | ) |   | (0.9 | ) |
| Other      income                                      |   |                        | (476    | ) |   | (0.3 | ) |   |   | 70 |   |   | 0.0 |  |   |   | 179 |   |   | 0.1 |  |
|                                                   |   |                        |         |  |   |  |   |   |   |  |  |   |   |   |   |   |  |  |   |   |   |
| (Loss)      income before income taxes                 |   |                        | (43,251 | ) |   | (30.6 | ) |   |   | 7,121 |   |   | 4.3 |  |   |   | 9,283 |   |   | 6.3 |  |
| Income      tax benefit (expense)                      |   |                        | 15,730  |  |   | 11.1 |  |   |   | (2,463 | ) |   | (1.5 | ) |   |   | (3,203 | ) |   | (2.2 | ) |
| Net      (loss) income                                 |   | $                           | (27,521 | ) |   | (19.5 | )% |   | $ | 4,658 |   |   | 2.8 | % |   | $ | 6,080 |   |   | 4.1 | % |
|                                                   |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

----

| Payments      Due by Fiscal Year     |
|--------------------------------------|
| Contractual      Obligations         |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | Residual |   |   | Total |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cancelable      operating leases |   | $ | 1,281,076 |   |   | $ | 1,105,785 |   |   | $ | 932,343 |   |   | $ | 845,884 |   |   | $ | 271,640 |   |   | $ | -  |   |   | $ | 4,436,728 |   |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revolving      line of credit        |   |   | 8,725,496  |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | -  |   |   |   | -  |   |   |   | 8,725,496  |   |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Term      debt                       |   |   | 57,024,424 |   |   |   | 375,729 |   |   |   | 290,573 |   |   |   | 182,119 |   |   |   | 70,015 |   |   |   | -  |   |   |   | 57,942,860 |   |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   | $ | 67,030,996 |   |   | $ | 1,481,514 |   |   | $ | 1,222,916 |   |   | $ | 1,028,003 |   |   | $ | 341,655 |   |   |  $ | -  |   |   | $ | 71,105,084 |   |

----

----

----

----

----

| /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. Employment      Agreement dated September 7, 2004 among William G. Williams, Jr., Syscan      Corporation and the Company, filed as Exhibit 10.1 to Form 8-K dated      September 7, 2004, filed September 10, 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. $10,000,000      revolving credit agreement by and among the Company and its subsidiaries      and National City Bank dated as of April 1, 1999, filed as Exhibit 10.2 to      Form 10-K dated January 25, 2000, filed January 28, 2000, 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. Business      Loan Agreement, $1,440,000 commercial loan between Bourque Printing      Company and Hibernia National Bank together with promissory note dated as      of March 19, 2003,filed as Exhibit 10.1 to form 10-K dated January 19,      2004 filed January 26, 2004, is incorporated herein by      reference. Commercial      Security Agreement, $450,050 commercial loan between Champion Industries,      Inc. and First Century Bank dated as of March 2, 2003, filed as Exhibit      10.2 to form 10-K dated January 19, 2004 filed January 26, 2004, is      incorporated herein by      reference. |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |   |
|--------|--------|--------|--------|

----

|   |   |   |   Business      Loan Agreement, $351,000 commercial loan between Champion Industries, Inc.      and City National Bank together with promissory note dated as of August      14, 2003, filed as Exhibit 10.3 to form 10-K dated January 19, 2004 filed      January 26, 2004, is      incorporated herein by reference. Revolving      Credit Agreement, $10,000,000 revolving line of credit between Champion      Industries, Inc. and United Bank, Inc. dated as of August 1, 2003, filed      as Exhibit 10.4 to form 10-K dated January 19, 2004 filed January 26,      2004, 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      Amending and Extending term of lease dated October 1, 2003 between Bourque      Printing dba, Upton Printing and M. Field Gomila Et. Al. , filed as      Exhibit 10.6 to form 10-K dated January 19, 2004 filed January 26, 2004,      is      incorporated herein by reference. Promissory      Note, $122,500 between Champion Industries, Inc. and Community Trust Bank      dated as of January 9, 2003, filed as Exhibit 10.7 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. $1,000,000      Business Loan Agreement and promissory note by and between the Company and      Community Trust Bank, N.A. as of March 19, 2004, filed as Exhibit 10.2 to      form 10-K dated January 17, 2005 filed January 31, 2005, is incorporated      herein by reference. $1,000,000      revolving line of credit between Stationers, Inc. and First Sentry Bank      dated as of April 7, 2004, filed as Exhibit 10.3 to form 10-K dated      January 17, 2005 filed January 31, 2005, is incorporated herein by      reference. $600,075      term note between Bourque Printing, Inc. and First Century Bank dated as      of September 9, 2004, filed as Exhibit 10.4 to form 10-K dated January 17,      2005 filed January 31, 2005, is incorporated herein by      reference. $3,920,000 promissory note and security agreement between Champion      Industries, Inc. and United Bank, Inc. dated as of October 26, 2004, filed      as Exhibit 10.5 to Form 10-K dated January 17, 2005 filed January 31,      2005, is incorporated herein by reference. Modification      letter to promissory note between Bourque Printing and Hibernia National      Bank, Inc. dated December 28, 2004, filed as Exhibit 10.6 to Form 10-K      dated January 17, 2005 filed January 31, 2005, is incorporated herein by      reference.  |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   |   |  First      Amendment to Revolving Credit Agreement between Champion Industries, Inc.      and United Bank, Inc. Filed as Exhibit 10.1 to Form 8-K dated February 15,      2005, filed February 16, 2005, is incorporated herein by      reference. Second      Amendment to Revolving Credit Agreement between Champion Industries, Inc.      and United Bank, Inc. Filed as Exhibit 10.1 to form 8-K dated July 11,      2005, filed July 11, 2005, is incorporated herein by      reference. $605,095      term note between Champion Industries, Inc. and First Century Bank dated      as of July 27, 2005.  Filed as Exhibit 10.1 to Form 10-Q dated      September 9, 2005, filed September 9, 2005, is incorporated herein by      reference. $1,000,000      revolving line of credit between Stationers, Inc. and First Sentry Bank      dated as of October 7, 2005, filed as exhibit 10.1 to Form 10-K dated      January 16, 2006 filed January 27, 2006, 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. $1,200,000 term note between Champion Industries, Inc. and      Community Trust Bank, Inc. dated as of July 28, 2006, filed as Exhibit      10.1 to Form 10-K dated January 15, 2007 filed January 28, 2007, 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. $10,000,000      promissory note between Champion Industries, Inc. and United Bank, Inc.,      filed as Exhibit 10.2 to form 8-K dated March 20, 2007 filed March 22,      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. $1,000,000      revolving line of credit between Stationers, Inc. and First Sentry Bank      dated as of April 7, 2007, filed as exhibit 10.2 to Form 10-Q dated June      8, 2007 filed June 8, 2007, is incorporated herein by      reference. $267,013      master loan agreement between Champion Industries, Inc. and US Bancorp      Equipment Finance dated as of May 30, 2007, filed as Exhibit 10.1 to Form      10-Q dated September 10, 2007 filed September 11, 2007, is      incorporated herein by reference. $1,750,000      promissory note between Champion Industries, Inc. and Community Trust      Bank, Inc. dated as of June 12, 2007, filed as Exhibit 10.2 to Form      10-Q dated September 10, 2007 filed September 11, 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.   |
|--|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (10.1)       |   |                                                                                                                                 | $600,000      Promissory Note dated June 10, 2009 between Champion Industries, Inc and      First Sentry Bank.Page Exhibit (10.1)                                                                                                                                                                                                                                                                                              |
|--------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (10.2)  |   |                                                                                                                                 | Agreement      of Lease dated October 27, 2009 between ADJ Corporation and Champion      Industries, Inc. regarding 3000 Washington St. West, Charleston,      WV. Page Exhibit (10.2)                                                                                                                                                                                                                                    |
|         |   |                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (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 27, 2010                                                                                                                                                                                                                                                                                                               |

----

|  SIGNATURE      AND TITLE                                                                                                                                                                              |   |  DATE                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|
|                                                                                                                                                                                                        |   |                             |
|  /s/ Louis J. Akers                                                                                                                                                                                    |   |  January      27, 2010      |
| Louis      J. Akers, Director                                                                                                                                                                               |   |                             |
|                                                                                                                                                                                                        |   |                             |
|  /s/      Philip E.      Cline                             |   |  January      27,      2010 |
| Philip      E. Cline, Director                                                                                                                                                                              |   |                             |
|                                                                                                                                                                                                        |   |                             |
|  /s/      Harley F. Mooney,      Jr.                                                                    |   |  January      27, 2010      |
| Harley      F. Mooney, Jr., Director                                                                                                                                                                        |   |                             |
|                                                                                                                                                                                                        |   |                             |
|  /s/      A. Michael      Perry                                           |   |  January      27, 2010      |
| A.      Michael Perry, Director                                                                                                                                                                             |   |                             |
|                                                                                                                                                                                                        |   |                             |
|  /s/      Marshall T.      Reynolds                                                                |   |  January      27,      2010 |
| Marshall      T. Reynolds, Director                                                                                                                                                                         |   |                             |
|                                                                                                                                                                                                        |   |                             |
|  /s/      Neal W.      Scaggs                                   |   |  January      27, 2010      |
| Neal      W. Scaggs, Director                                                                                                                                                                               |   |                             |
|                                                                                                                                                                                                        |   |                             |
|  /s/      Glenn W. Wilcox,      Sr.                                                                |   |  January      27, 2010      |
| 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, 2009 and 2008                                                    | F-3 |
|                                                         | Consolidated      Statements of Operations for the years ended October 31, 2009, 2008 and      2007                 | F-5 |
|                                                         | Consolidated      Statements of Shareholders’ Equity for the years ended October 31, 2009,      2008 and 2007 | F-6 |
|                                                         | Consolidated      Statements of Cash Flows for the years ended October 31, 2009, 2008 and      2007                 | F-7 |
|                                                         | Notes      to Consolidated Financial Statements                                                                     | F-8 |
| Schedule      II - Valuation and Qualifying Accounts         | F-41                                                                                                                |

----

----

|                                                                         |   | October      31, |        |
|------------------------------------------------------------------------------|--------|------------------|-------------|
|                                                                         |   | 2009             |        |   | 2008      (Restated) |   |
| Assets                                                                       |   |             |        |   |   |   |
| Current      assets:                                                         |   |             |        |   |   |   |
| Cash      and cash equivalents                                               |   | $                | 1,159,282   |   |   | $ | - |   |
| Accounts      receivable, net of allowance of $1,353,000 and $1,851,000 |   |             | 18,424,310  |   |   |   | 23,888,688 |   |
| Inventories                                                                  |   |             | 11,161,977  |   |   |   | 12,014,118 |   |
|              Income tax refund            |   |             | 1,911,400   |   |   |   | 711,096 |   |
| Other      current assets                                                    |   |             | 925,120     |   |   |   | 833,066 |   |
| Deferred      income tax assets                                              |   |             | 1,000,847   |   |   |   | 1,130,742 |   |
| Total      current assets                                                    |   |             | 34,582,936  |   |   |   | 38,577,710 |   |
|                                                                         |   |             |        |   |   |   |   |   |
| Property      and equipment, at cost:                                        |   |             |        |   |   |   |   |   |
| Land                                                                         |   |             | 2,016,148   |   |   |   | 2,120,689 |   |
| Buildings      and improvements                                              |   |             | 11,806,238  |   |   |   | 12,110,480 |   |
| Machinery      and equipment                                                 |   |             | 57,481,742  |   |   |   | 55,407,620 |   |
| Furniture      and fixtures                                                  |   |             | 4,129,537   |   |   |   | 4,089,466 |   |
| Vehicles                                                                     |   |             | 3,145,772   |   |   |   | 3,144,682 |   |
|                                                                         |   |             | 78,579,437  |   |   |   | 76,872,937 |   |
| Less      accumulated depreciation                                           |   |             | (53,170,108 | ) |   |   | (49,764,709 | ) |
|                                                                         |   |             | 25,409,329  |   |   |   | 27,108,228 |   |
|                                                                         |   |             |        |   |   |   |   |   |
| Cash      surrender value of officers’ life insurance                  |   |             | -           |   |   |   | 874,397 |   |
| Goodwill                                                                     |   |             | 15,332,283  |   |   |   | 38,894,778 |   |
|          Deferred financing costs                             |   |             | 1,199,199   |   |   |   | 1,508,669 |   |
| Other      intangibles, net of accumulated amortization                      |   |             | 5,645,078   |   |   |   | 15,730,841 |   |
|          Trademark and masthead                               |   |             | 10,001,812  |   |   |   | 18,515,316  |   |
|     Deferred      tax asset, net of current portion      |   |             | 8,799,518   |   |   |   | -  |   |
| Other      assets                                                            |   |             | 51,738      |   |   |   | 68,906 |   |
|                                                                         |   |             | 41,029,628  |   |   |   | 75,592,907 |   |
| Total      assets                                                            |   | $                | 101,021,893 |   |   | $ | 141,278,845 |   |
|                                                                         |   |             |        |   |   |   |   |   |

----

|                                                                                        |   | October      31, |            |
|---------------------------------------------------------------------------------------------|--------|------------------|-----------------|
|                                                                                        |   | 2009             |            |   | 2008      (Restated) |   |
| Liabilities      and shareholders’ equity                                             |   |             |            |   |   |   |
| Current      liabilities:                                                                   |   |             |            |   |   |   |
|              Line of credit                         |   |  $          | 8,725,496  |   |   |  $ | -  |   |
|         Negative      book cash balances            |   |             | -               |   |   |   | 986,704  |   |
| Accounts      payable                                                                       |   |             | 4,637,199       |   |   |   | 4,844,725 |   |
| Accrued      payroll and commissions                                                        |   |             | 2,392,971       |   |   |   | 2,726,911 |   |
| Taxes      accrued and withheld                                                             |   |             | 1,391,718       |   |   |   | 987,385 |   |
| Accrued      expenses                                                                       |   |             | 2,027,266       |   |   |   | 1,546,055 |   |
|              Other current liabilities    |   |             | 962,893         |   |   |   | -  |   |
| Current      portion of long-term debt:                                                     |   |             |            |   |   |   |   |   |
| Notes      payable                                                                          |   |             | 57,024,424      |   |   |   | 7,118,543 |   |
| Total      current liabilities                                                              |   |             | 77,161,967      |   |   |   | 18,210,323 |   |
|                                                                                        |   |             |            |   |   |   |   |   |
| Long-term      debt, net of current portion:                                                |   |             |            |   |   |   |   |   |
| Line      of credit                                                                         |   |             | -               |   |   |   | 9,125,496 |   |
| Notes      payable                                                                          |   |             | 918,436         |   |   |   | 57,206,307 |   |
| Deferred      income tax liabilities                                                        |   |             | -               |   |   |   | 5,301,581 |   |
| Other      liabilities                                                                      |   |             | 7,350           |   |   |   | 939,006 |   |
| Total      liabilities                                                                      |   |             | 78,087,753      |   |   |   | 90,782,713 |   |
|                                                                                        |   |             |            |   |   |   |   |   |
| 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) earnings                                                            |   |             | (9,822,383      | ) |   |   | 18,297,522 |   |
|              Other comprehensive loss                    |   |             | -               |   |   |   | (557,913 | ) |
| Total      shareholders’ equity                                                       |   |             | 22,934,140      |   |   |   | 50,496,132 |   |
| Total      liabilities and shareholders’ equity                                       |   | $                | 101,021,893     |   |   | $ | 141,278,845 |   |
|                                                                                        |   |             |            |   |   |   |   |   |

----

|                                                                       |   | Year      Ended October 31, |        |
|----------------------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                                       |   |  2009                  |        | 2008      (Restated) |   |  2007 |   |
| Revenues:                                                                  |   |                        |        |   |   |   |   |   |   |   |
| Printing                                                                   |   | $                           | 88,989,794  |   | $ | 105,275,191 |   | $ | 104,500,337 |   |
| Office      products and office furniture                                  |   |                        | 35,874,431  |   |   | 41,540,114 |   |   | 41,448,642 |   |
|     Newspaper                                          |   |                        | 16,393,896  |   |   | 18,939,250 |   |   | 2,540,377  |   |
| Total      revenues                                                        |   |                        | 141,258,121 |   |   | 165,754,555 |   |   | 148,489,356 |   |
|                                                                       |   |                        |        |   |   |   |   |   |   |   |
| Cost      of sales & newspaper operating costs:                        |   |                        |        |   |   |   |   |   |   |   |
| Printing                                                                   |   |                        | 66,856,098  |   |   | 75,590,247 |   |   | 75,616,988 |   |
| Office      products and office furniture                                  |   |                        | 24,859,285  |   |   | 28,457,142 |   |   | 28,834,642 |   |
|     Newspaper      cost of sales & operating costs |   |                        | 8,714,941   |   |   | 9,492,591 |   |   | 1,187,444  |   |
| Total      cost of sales & newspaper operating costs                   |   |                        | 100,430,324 |   |   | 113,539,980 |   |   | 105,639,074 |   |
|                                                                       |   |                        |        |   |   |   |   |   |   |   |
| Gross      profit                                                          |   |                        | 40,827,797  |   |   | 52,214,575 |   |   | 42,850,282 |   |
|                                                                       |   |                        |        |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses                          |   |                        | 37,126,228  |   |   | 39,528,551 |   |   | 32,335,593 |   |
| Asset      impairments costs                                          |   |                        | 41,333,653  |   |   | -  |   |   | -  |   |
| Hurricane      and relocation costs, net of recoveries                     |   |                        | (38,673     | ) |   | (33,411 | ) |   | - |   |
| (Loss)      Income from operations                                         |   |                        | (37,593,411 | ) |   | 12,719,435 |   |   | 10,514,689 |   |
|                                                                       |   |                        |        |   |   |   |   |   |   |   |
| Other      income (expense):                                               |   |                        |        |   |   |   |   |   |   |   |
| Interest      income                                                       |   |                        | 2,771       |   |   | 65,657 |   |   | 45,021 |   |
| Interest      expense                                                      |   |                        | (5,184,668  | ) |   | (5,733,677 | ) |   | (1,455,470 | ) |
| Other                                                                      |   |                        | (475,488    | ) |   | 69,602 |   |   | 179,126 |   |
|                                                                       |   |                        | (5,657,385  | ) |   | (5,598,418 | ) |   | (1,231,323 | ) |
| (Loss)      income before income taxes                                |   |                        | (43,250,796 | ) |   | 7,121,017 |   |   | 9,283,366 |   |
| Income      tax benefit (expense)                                |   |                        | 15,730,172  |   |   | (2,462,856 | ) |   | (3,203,226 | ) |
| Net (loss) income                                                          |   | $                           | (27,520,624 | ) | $ | 4,658,161 |   | $ | 6,080,140 |   |
|                                                                       |   |                        |        |   |   |   |   |   |   |   |
| (Loss)      earnings per share:                                       |   |                        |        |   |   |   |   |   |   |   |
| Basic                                                                      |   | $                           | (2.76       | ) | $ | 0.47 |   | $ | 0.61 |   |
| Diluted                                                                    |   |                        | (2.76       | ) |   | 0.46 |   |   | 0.60 |   |
|                                                                       |   |                        |        |   |   |   |   |   |   |   |
| Dividends      paid per share                                              |   |                        | 0.06        |   |   | 0.24 |   |   | 0.24 |   |
|                                                                       |   |                        |        |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                  |   |                        |        |   |   |   |   |   |   |   |
| Basic                                                                      |   |                        | 9,988,000   |   |   | 9,986,000 |   |   | 9,957,000 |   |
| Diluted                                                                    |   |                        | 9,988,000   |   |   | 10,024,000 |   |   | 10,103,000 |   |

----

|                                                                                          |  |                   |                    |         |   | Additional                           |  |                         |                                      | Other |   |             |   |
|------------------------------------------------------------------------------------------|--|-------------------|--------------------|---------|---|--------------------------------------|--|-------------------------|--------------------------------------|-------|---|-------------|---|
|                                                                                          |  | Common      Stock |                    | Paid-In |   | Retained                             |  | Comprehensive           |                                      |       |   |
|                                                                                          |  | Shares            |                    | Amount  |   | Capital                              |  | Earnings      (Deficit) |                                      | Loss  |   | Total       |   |
| Balance,      October 31, 2006                                                           |  |                   | 9,922,913          |         | $ | 9,922,913                            |  | $                       | 22,636,620                           |       | $ | 12,217,152  |   | $ | - |  | $ | 44,776,685 |  |
| Net      income for 2007                                                                 |  |                   | -                  |         |   | -                                    |  |                         | -                                    |       |   | 6,080,140   |   |  | - |  |  | 6,080,140 |  |
| Other      comprehensive loss (net of tax)                                               |  |                   | -                  |         |   | -                                    |  |                         | -                                    |       |   | -           |   |  | (11,350 | ) |  | (11,350 | ) |
| Total      comprehensive income                                                          |  |                   | -                  |         |   | -                                    |  |                         | -                                    |       |   | 6,080,140   |   |  | (11,350 | ) |  | 6,068,790 |  |
| Dividends      ($0.24 per share)                                                         |  |                   | -                  |         |   | -                                    |  |                         | -                                    |       |   | (2,389,417  | ) |  | - |  |  | (2,389,417 | ) |
| Stock      options exercised                                                             |  |                   | 46,000             |         |   | 46,000                               |  |                         | 96,680                               |       |   | -           |   |  | - |  |  | 142,680 |  |
| Cumulative      effect of adjustment resulting from adoption of SAB 108, net of      tax |  |                   | -                  |         |   | -                                    |  |                         | -                                    |       |   | 128,349     |   |  | - |  |  | 128,349 |  |
| 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 | ) |
| Stock      options exercised                                                             |  |                   | -                  |         |   | -                                    |  |                         | -                                    |       |   |        |   |  |   |  |  |   |  |
| Balance,      October 31, 2009                                                           |  |                   | 9,987,913          |         | $ | 9,987,913                            |  | $                       | 22,768,610                           |       | $ | (9,822,383  | ) | $ | - |  | $ | 22,934,140 |  |

----

|                                                                                                                                              |   | Year      Ended October 31, |                      |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------------------------|
|                                                                                                                                              |   | 2009                        |                      | 2008      (Restated) |   | 2007 |   |
| Cash      flows from operating activities:                                                                                                        |   |                        |                      |   |   |   |   |
| Net      (loss) income                                                                                                                            |   | $                           | (27,520,624               | ) | $ | 4,658,161 |   | $ | 6,080,140 |   |
|  Adjustments      to reconcile net (loss) income to cash      provided      by operating activities:                                         |   |                        |                      |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                                                                |   |                        | 5,244,938                 |   |   | 5,384,509 |   |   | 3,992,640 |   |
| (Gain)      loss on sale of assets                                                                                                           |   |                        | (55,719                   | ) |   | 4,552 |   |   | 49,758 |   |
| Deferred      income taxes                                                                                                                        |   |                        | (13,957,990               | ) |   | 2,129,999 |   |   | (15,194 | ) |
|                      Deferred financing costs                          |   |                        | 309,471                   |   |   | 309,471  |   |   |   - |   |
| Bad      debt expense                                                                                                                             |   |                        | 876,145                   |   |   | 854,283 |   |   | 491,934 |   |
| Intangible      impairment                                                                                                                   |   |                        | 41,127,483                |   |   | - |   |   | - |   |
|                Asset      Impairment                                   |   |                        | 206,170                   |   |   | - |   |   | - |   |
|                Loss      on hedging agreements                    |   |                        | 577,736                   |   |   | - |   |   | - |   |
| Changes      in assets and liabilities:                                                                                                           |   |                        |                      |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                                          |   |                        | 4,588,233                 |   |   | (1,503,868 | ) |   | (927,958 | ) |
| Inventories                                                                                                                                       |   |                        | 852,141                   |   |   | (509,271 | ) |   | 4,232 |   |
| Other      current assets                                                                                                                         |   |                        | (92,053                   | ) |   | 49,469 |   |   | (166,758 | ) |
| Accounts      payable                                                                                                                             |   |                        | (207,527                  | ) |   | (635,114 | ) |   | 959,552 |   |
| Accrued      payroll and commissions                                                                                                              |   |                        | (333,940                  | ) |   | 266,624 |   |   | 298,569 |   |
| Taxes      accrued and withheld                                                                                                                   |   |                        | 404,333                   |   |   | (306,740 | ) |   | (132,206 | ) |
| Accrued      income taxes                                                                                                                         |   |                        | (1,200,304                | ) |   | (78,657 | ) |   | (1,825,842 | ) |
| Accrued      expenses                                                                                                                             |   |                        | 481,211                   |   |   | (271,800 | )  |   | 248,251 |   |
| Other      liabilities                                                                                                                            |   |                        | (1,800                    | ) |   | (1,800 | ) |   | (377,434 | ) |
| Net      cash provided by operating activities                                                                                                    |   |                        | 11,297,904                |   |   | 10,349,818 |   |   | 8,679,684 |   |
| Cash      flows from investing activities:                                                                                                        |   |                        |                      |   |   |   |   |   |   |   |
| Purchase      of property and equipment                                                                                                           |   |                        | (1,993,029                | ) |   | (2,373,122 | ) |   | (3,530,050 | ) |
| Proceeds      from sale of fixed assets                                                                                                           |   |                        | 160,324                   |   |   | 192,749 |   |   | 146,857 |   |
| Businesses      acquired, net of cash received                                                                                                    |   |                        | -                         |   |   | (1,657,239 | ) |   | (1,214,283 | ) |
| Goodwill      and other intangible additions                                                                                                      |   |                        | -                         |   |   | - |   |   | (45,811 | ) |
| Change      in other assets                                                                                                                       |   |                        | 5,168                     |   |   | 52,003 |   |   | 127,657 |   |
| Cash      surrender value proceeds                                                                                                                |   |                        | 874,397                   |   |   | - |   |   | 291,836 |   |
| (Increase)      decrease in cash surrender value                                                                                                  |   |                        | -                         |   |   | (40,291 | ) |   | 76,754 |   |
| Net      cash used in investing activities                                                                                                        |   |                        | (953,140                  | ) |   | (3,825,900 | ) |   | (4,147,040 | ) |
| Cash      flows from financing activities:                                                                                                        |   |                        |                      |   |   |   |   |   |   |   |
| Borrowings      on line of credit                                                                                                                 |   |                        | 600,000                   |   |   | - |   |   | 12,101,000 |   |
| Payments      on line of credit                                                                                                                   |   |                        | (1,000,000                | ) |   | (6,415,000 | ) |   | (12,101,000 | ) |
|                (Decrease)      increase in negative book cash balances |   |                        | (986,704                  | ) |   | 986,704 |   |   |  - |   |
| Proceeds from      long-term debt                                                                                                                 |   |                        | -                         |   |   | 767,852 |   |   | 2,654,254 |   |
| Principal      payments on long-term debt                                                                                                         |   |                        | (7,199,497                | ) |   | (5,314,041 | ) |   | (4,313,471 | ) |
| Financing      costs paid                                                                                                                         |   |                        |          - |   |   | - |   |   | (320,147 | )  |
| Proceeds      from exercise of stock options                                                                                                      |   |                        | -                         |   |   | 54,310 |   |   | 142,680 |   |
| Dividends      paid                                                                                                                               |   |                        | (599,281                  | ) |   | (2,396,863 | ) |   | (2,389,417 | ) |
| Net      cash used in financing activities                                                                                                   |   |                        | (9,185,482                | ) |   | (12,317,038 | )  |   | (4,226,101 | ) |
| Net      increase (decrease) in cash and cash equivalents                                                                                    |   |                        | 1,159,282                 |   |   | (5,793,120 | ) |   | 306,543 |   |
| Cash      and cash equivalents at beginning of year                                                                                               |   |                        | -                         |   |   | 5,793,120 |   |   | 5,486,577 |   |
| Cash      and cash equivalents at end of year                                                                                                     |   | $                           | 1,159,282                 |   | $ | - |   | $ | 5,793,120 |   |

----

----

----

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

----

----

----

----

|                                                                                                                                                |   | Year      Ended October 31, |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                                                                                                                |   | 2009 (1)                    |        | 2008 (1)      (Restated)   |   | 2007      (1) |   |
|                                                                                                                                                |   |                        |        |   |   |   |   |   |   |   |
| Net      (loss) income as reported                                                                                                             |   | $                           | (27,520,624 | ) | $ | 4,658,161 |   | $ | 6,080,140 |   |
| Deduct:      Total stock-based employee compensation expense determined under the fair      value method for all awards, net of related tax effects |   |                        | -           |   |   | - |   |   | - |   |
| Pro      forma net (loss) income                                                                                                          |   | $                           | (27,520,624 | ) | $ | 4,658,161 |   | $ | 6,080,140 |   |
| (Loss)      earnings per share:                                                                                                                |   |                        |        |   |   |   |   |   |   |   |
| Basic,      as reported                                                                                                                             |   | $                           | (2.76       | ) | $ | 0.47 |   | $ | 0.61 |   |
| Basic,      pro forma                                                                                                                               |   | $                           | (2.76       | ) | $ | 0.47 |   | $ | 0.61 |   |
|                                                                                                                                                |   |                        |        |   |   |   |   |   |   |   |
| Diluted,      as reported                                                                                                                           |   | $                           | (2.76       | ) | $ | 0.46 |   | $ | 0.60 |   |
| Diluted,      pro forma                                                                                                                             |   | $                           | (2.76       | ) | $ | 0.46 |   | $ | 0.60 |   |

----

----

----

----

----

|                                                       |   | October      31,  |             |
|------------------------------------------------------------|--------|------------------------|------------------|
|                                                       |   | 2009                   |             |   | 2008 |   |
| Printing      and Newspaper:      |   |                   |             |   |   |   |
|     Raw materials            |   | $                      | 2,854,938        |   |   | $ | 3,137,060 |   |
|          Work in process                    |   |                   | 1,405,320        |   |   |   | 1,929,581 |   |
|           Finished goods               |   |                   | 3,765,244        |   |   |   | 3,867,023 |   |
|  Office      products and office furniture            |   |                   | 3,136,475        |   |   |   | 3,080,454 |   |
|                                                       |   | $                      |  11,161,977 |   |   |  $ | 12,014,118 |   |

|                                                                                                                                                                                                                                                                                                                            |   | October      31, |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|
|                                                                                                                                                                                                                                                                                                                            |   | 2009             |       |   | 2008 |   |
| Installment      notes payable to banks, due in monthly installments plus interest at rates      approximating the bank’s prime rate maturing in various periods ranging      from June 2011-June 2014, collateralized by equipment      and vehicles.                                                               |   |  $          | 1,310,418  |   |   |  $ | 749,850 |   |
|  Term      loan facility with a bank, 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. |   |             | 56,632,442 |   |   |   | 63,575,000 |   |
|                                                                                                                                                                                                                                                                                                                            |   |             | 57,942,860 |   |   |   | 64,324,850 |   |
| Less      current portion                                                                                                                                                                                                                                                                                                       |   |             | 57,024,424 |   |   |   | 7,118,543 |   |
| Long-term      debt, net of current portion                                                                                                                                                                                                                                                                                     |   | $                | 918,436    |   |   | $ | 57,206,307 |   |

----

----

| 2010   |   | $      |      57,024,424                                       |   |
|--------|--------|--------|--------------------------------------------------------------------------------|--------|
| 2011   |   |   |           375,729            |   |
| 2012   |   |   |           290,573            |   |
| 2013   |   |   |           182,119            |   |
| 2014   |   |   |             70,015 |   |
|   |   | $      | 57,942,860                                                                     |   |

----

|                                                                |   |   |                                                                      | Weighted |   |   |   | Weighted |    |   |   | Weighted |   |
|---------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|----------|--------|--------|--------|----------|---------|--------|--------|----------|--------|
|                                                                |   |   |                                                                      | Average  |   |   |   | Average  |    |   |   | Average  |   |
|                                                                |   |   |                                                                      | Exercise |   |   |   | Exercise |    |   |   | Exercise |   |
|                                                                |   | 2009   |                                                                      | Price    |   | 2008   |   | Price    |    | 2007   |   | Price    |   |
|                                                                |   |   |                                                                      |     |   |   |   |     |    |   |   |     |   |
| Outstanding-beginning      of year                                  |   |   |            311,000 |     | $      | 4.27   |   |     | 330,000 |   | $      | 4.18     |   |   | 382,000 |   | $ | 4.01 |   |
| Granted                                                             |   |   |                                                                      |     |   |   |   |     | -       |   |   | -        |   |   | - |   |   | - |   |
| Exercised                                                           |   |   | -                                                                         |     |   | -      |   |     | (19,000 | )      |   | 2.77     |   |   | (46,000 | )  |   | 3.10 |   |
| Forfeited      or expired                                           |   |   | (91,000                                                                   | )        |   | 4.29   |   |     | -       |   |   | -        |   |   | (6,000 | ) |   | 2.49 |   |
| Outstanding-end      of year                                        |   |   | 220,000                                                                   |     |   | 4.26   |   |     | 311,000 |   |   | 4.27     |   |   | 330,000 |   |   | 4.18 |   |
| Weighted      average fair value of options granted during the year |   | $      | -                                                                         |     |   |   |   | $        | -       |   |   |     |   | $ | - |   |   |   |   |

| Exercise |   | Number      |    | Remaining |   |
|----------|--------|-------------|---------|-----------|--------|
| Price    |   | Outstanding |    | Life      |   |
| 4.26     |   |        | 220,000 |      |   | 0.96 |   |
|     |   |        |    |      |   |   |   |

----

|                             |   | Year      Ended October 31, |        |
|----------------------------------|--------|-----------------------------|-------------|
|                             |   | 2009                        |        | 2008      (Restated) |   | 2007 |   |
| Current      expense (benefit):  |   |                        |        |   |   |   |   |
| Federal                          |   | $                           | (1,601,934  | ) | $ | 463,599 |   | $ | 2,666,371 |   |
| State                            |   |                        | (170,248    | ) |   | (130,742 | )  |   | 552,049 |   |
| Deferred      expenses (benefit) |   |                        | (13,957,990 | ) |   | 2,129,999 |   |   | (15,194 | ) |
|                             |   | $                           | (15,730,172 | ) | $ | 2,462,856 |   | $ | 3,203,226 |   |

|                                                                           |   | October      31, |       |
|--------------------------------------------------------------------------------|--------|------------------|------------|
|                                                                           |   | 2009             |       |   | 2008      (Restated) |   |
| Deferred      tax assets:                                                      |   |             |       |   |   |   |
| Allowance      for doubtful accounts                                           |   | $                | 497,795    |   |   | $ | 697,181 |   |
| Net      operating loss carryforward of acquired companies                     |   |             | 555,470    |   |   |   | 393,911 |   |
| Accrued      vacation                                                          |   |             | 240,311    |   |   |   | 253,127 |   |
| Other      accrued liabilities                                                 |   |             | 265,681    |   |   |   | 184,093 |   |
|     Interest      rate swap                                |   |             | 385,157    |   |   |   |  371,943 |   |
|          Intangible assets                                      |   |             | 11,784,699 |   |   |   | -  |   |
| Gross      deferred tax assets                                                 |   |             | 13,729,113 |   |   |   | 1,900,255 |   |
|                                                                           |   |             |       |   |   |   |   |   |
| Deferred      tax liabilities:                                                 |   |             |       |   |   |   |   |   |
| Property      and equipment                                                    |   |             | (3,449,830 | ) |   |   | (3,325,252 | ) |
| Intangible      assets                                                         |   |             | -          |   |   |   | (2,454,633 | ) |
| Gross      deferred tax liability                                              |   |             | (3,449,830 | ) |   |   | (5,779,885 | ) |
| Net      deferred tax asset (liabilities) before valuation      allowance |   |             | 10,279,283 |   |   |   | (3,879,630 | )  |
|                                                                           |   |             |       |   |   |   |   |   |
| Valuation      allowance:                                                      |   |             |       |   |   |   |   |   |
| Beginning      balance                                                         |   |             | 291,209    |   |   |   | 291,209 |   |
| Increase      during the period                                                |   |             | 187,709    |   |   |   | - |   |
| Ending      balance                                                            |   |             | 478,918    |   |   |   | 291,209 |   |
| Net      deferred tax asset (liabilities)                                      |   | $                | 9,800,365  |   |   | $ | (4,170,839 | )  |

----

|                                         |   |   |            |   |                 |   |
|----------------------------------------------|--------|--------|-----------------|--------|----------------------|--------|
|                                         |   | 2009   |            |   | 2008      (Restated) |   |
| Deferred      tax asset - current            |   | $      | 1,000,847       |   |                 | $      | 1,130,742 |   |
| Deferred      tax assets -non-current   |   |   | 8,799,518  |   |                 |   | - |   |
| Deferred      tax liability - long-term      |   |   | -               |   |                 |   | (5,301,581 | ) |
|                                         |   | $      | 9,800,365       |   |                 | $      | (4,170,839 | ) |

|                                                  |   | Year      Ended October 31, |   |
|-------------------------------------------------------|--------|-----------------------------|--------|
|                                                  |   | 2009                        |   |   | 2008      (Restated) |   |   | 2007 |   |
|                                                  |   |                        |   |   |   |   |   |   |   |
| Statutory      federal income tax rate                |   |                        | (34.0  | )% |   |   | 34.0 | % |   |   | 34.0 | % |
| State      taxes, net of federal benefit              |   |                        | (0.7   | ) |   |   | 3.3 |   |   |   | 5.7 |   |
| Change      in valuation allowance                    |   |                        | 0.3    |   |   |   | - |   |   |   | (0.1 | )  |
| Selling      expenses                                 |   |                        | 0.2    |   |   |   | 1.1 |   |   |   | 0.7 |   |
| Cash      surrender value of life insurance accretion |   |                        | 0.4    |   |   |   | (0.2 | ) |   |   | (0.2 | ) |
| Amended state      returns                       |   |                        | -      |   |   |   | - |   |   |   | (0.8 | )  |
| State      apportionment tax accrual adjustments      |   |                        | 0.3    |   |   |   | (3.6 | )  |   |   | (1.9 | ) |
| Federal      and state tax accrual adjustments        |   |                        | (0.1   | ) |   |   | (0.8 | )  |   |   | (0.7 | )  |
| Other                                                 |   |                        | (3.2   | ) |   |   | 0.8 |   |   |   | (2.2 | ) |
|          Interest rate swap            |   |                        | 0.4    |   |   |   |   |   |   |   |   |   |
| Effective      tax rate                               |   |                        | (36.4  | )% |   |   | 34.6 | % |   |   | 34.5 | % |

----

| Unrecognized      tax benefit at November 1, 2008 |   |  $ | 36,000  |    |
|---------------------------------------------------|--------|---------|---------|---------|
| Other                                             |   |    | (36,000 | )  |
| Settlements/Audits                           |   |    | -       |    |
| Unrecognized      tax benefit at October 31, 2009 |   |  $ | -       |    |

----

|                                                                                              |   | Year      Ended October 31, |    |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                              |   | 2009                        |    | 2008 |   | 2007 |   |
| Rent      expense paid to affiliated entities                                                     |   |                        |    |   |   |   |   |   |   |   |
| for      operating facilities                                                                     |   | $                           | 367,000 |   | $ | 434,000 |   | $ | 434,000 |   |
| Sales      of office products, office furniture and printing services to affiliated      entities |   |                        | 861,000 |   |   | 895,000 |   |   | 934,000 |   |

----

| 2010     |   | $      | 1,281,076 |   |
|----------|--------|--------|-----------|--------|
| 2011     |   |   | 1,090,785 |   |
| 2012     |   |   | 932,343   |   |
| 2013     |   |   | 845,884   |   |
| 2014     |   |   | 271,640   |   |
| Residual |   |   | -    |   |
|     |   | $      | 4,436,728 |   |

----

----

|  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 |
|                                            |   |                                      |   |
|                                            |   |                                      |   |

----

----

| 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                    |   |     | (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                 |   |     | 49,718,525  |                                 |   |   | 1,822,983  |    |   |   | 49,480,385  |   |   |   | 101,021,893 |   |
| Goodwill                                 |   |     | 2,226,837   |                                 |   |   | 1,230,485  |    |   |   | 11,874,961  |   |   |   | 15,332,283 |   |
|                                     |   |     |        |                                 |   |   |       |    |   |   |        |   |   |   |   |   |
| 2008                                     |   | 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                 |   |     | 54,152,606  |                                 |   |   | 5,228,906  |    |   |   | 81,897,333  |   |   |   | 141,278,845 |   |
| Goodwill                                 |   |     | 2,226,837   |                                 |   |   | 1,230,485  |    |   |   | 35,437,456  |   |   |   | 38,894,778 |   |
|                                     |   |     |        |                                 |   |   |       |    |   |   |        |   |   |   |   |   |
| 2007                                     |   | Printing |        | Office      Products & Furniture |   |   | Newspaper  |    |   | Total  |        |
| Revenues                                 |   | $        | 117,241,620 |                                 |   | $      | 49,881,702 |    |   |   | 2,540,377   |   |   | $ | 169,663,699 |   |
| Elimination      of intersegment revenue |   |     | (12,741,283 | )                                    |   |   | (8,433,060 | )       |   |   | -           |   |   |   | (21,174,343 | ) |
| Consolidated      revenues               |   | $        | 104,500,337 |                                 |   | $      | 41,448,642 |    |   |   | 2,540,377   |   |   | $ | 148,489,356 |   |
| Operating      income                    |   |     | 6,416,551   |                                 |   |   | 3,438,459  |    |   |   | 659,679     |   |   |   | 10,514,689 |   |
| Depreciation      & amortization     |   |     | 3,576,975   |                                 |   |   | 211,167    |    |   |   | 204,498     |   |   |   | 3,992,640 |   |
| Capital      expenditures                |   |     | 4,919,357   |                                 |   |   | 145,471    |    |   |   | 203,086     |   |   |   | 5,267,914 |   |
| Identifiable      assets                 |   |     | 57,020,668  |                                 |   |   | 10,339,686 |    |   |   | 81,851,237  |   |   |   | 149,211,591 |   |
| Goodwill                                 |   |     | 2,226,837   |                                 |   |   | 1,230,485  |    |   |   | 35,396,335  |   |   |   | 38,853,657 |   |

----

|                                         |   | 2009   |        |   | 2008      (Restated) |   |        | 2007   |   |
|----------------------------------------------|--------|--------|-------------|--------|----------------------|--------|-------------|--------|--------|
| Revenues:                                    |   |   |        |   |                 |   |        |   |   |
| Total      segment revenues                  |   | $      | 158,376,271 |   |                 | $      | 187,282,553 |   |   | $ | 169,663,699 |   |
| Elimination      of intersegment revenue     |   |   | (17,118,150 | )      |                 |   | (21,527,998 | )      |   |   | (21,174,343 | ) |
| Consolidated      revenue                    |   | $      | 141,258,121 |   |                 | $      | 165,754,555 |   |   | $ | 148,489,356 |   |
|                                         |   |   |        |   |                 |   |        |   |   |   |   |   |
| Operating      income:                       |   |   |        |   |                 |   |        |   |   |   |   |   |
| Total      segment operating income     |   | $      | (37,593,411 | )      |                 | $      | 12,719,435  |   |   | $ | 10,514,689 |   |
| Interest      income                         |   |   | 2,771       |   |                 |   | 65,657      |   |   |   | 45,021 |   |
| Interest      expense                        |   |   | (5,184,668  | )      |                 |   | (5,733,677  | )      |   |   | (1,455,470 | ) |
| Other      (loss) income                |   |   | (475,488    | )      |                 |   | 69,602      |   |   |   | 179,126 |   |
| Consolidated      income before income taxes |   | $      | (43,250,796 | )      |                 | $      | 7,121,017   |   |   | $ | 9,283,366 |   |
|                                         |   |   |        |   |                 |   |        |   |   |   |   |   |
| Identifiable      assets:                    |   |   |        |   |                 |   |        |   |   |   |   |   |
| Total      segment identifiable assets       |   | $      | 101,021,893 |   |                 | $      | 141,278,845 |   |   | $ | 149,211,591 |   |
| Elimination      of intersegment assets      |   |   | -           |   |                 |   | -           |   |   |   | - |   |
| Total      consolidated assets               |   | $      | 101,021,893 |   |                 | $      | 141,278,845 |   |   | $ | 149,211,591 |   |

----

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

----

|                                                    |   | 2009     |       |   | 2008         |   |
|---------------------------------------------------------|--------|----------|------------|--------|--------------|--------|
|                                                    |   | Gross    |       |   |         |   |   | Gross |   |   |   |   |
|                                                    |   | Carrying |       |   | Accumulated  |   |   | Carrying |   |   | Accumulated |   |
|                                                    |   | Amount   |       |   | Amortization |   |   | Amount |   |   | Amortization |   |
| Amortizable      intangible      assets:                |   |     |       |   |         |   |   |   |   |   |   |   |
| Non-compete      agreement                              |   | $        | 1,000,000  |   |         | $      | 738,095 |   |   | $ | 1,000,000 |   |   | $ | 595,238 |   |
| Customer      relationships                             |   |     | 2,451,073  |   |         |   | 660,641 |   |   |   | 2,451,073 |   |   |   | 538,544 |   |
|          Advertising and subscriber base |   |     | 4,989,768  |   |         |   | 1,509,335 |   |   |   | 14,041,252 |   |   |   | 789,820 |   |
| Other                                                   |   |     | 564,946    |   |         |   | 452,638 |   |   |   | 564,946 |   |   |   | 402,828 |   |
|                                                    |   |     | 9,005,787  |   |         |   | 3,360,709 |   |   |   | 18,057,271 |   |   |   | 2,326,430 |   |
|                                                    |   |     |       |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Unamortizable      intangible      assets:              |   |     |       |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                |   |     | 15,839,561 |   |         |   | 507,278 |   |   |   | 39,402,056 |   |   |   | 507,278 |   |
|          Trademark and masthead          |   |     | 10,001,812 |   |         |   | - |   |   |   | 18,515,316 |   |   |   | - |   |
|                                                    |   |     | 25,841,373 |   |         |   | 507,278 |   |   |   | 57,917,372 |   |   |   | 507,278 |   |
|                                                    |   |     |       |   |         |   |   |   |   |   |   |   |   |   |   |   |
|  Total      goodwill and other intangibles         |   | $        | 34,847,160 |   |         | $      | 3,867,987 |   |   | $ | 75,974,643 |   |   | $ | 2,833,708 |   |
|                                                    |   |     |       |   |         |   |   |   |   |   |   |   |   |   |   |   |

----

| 2010       |   | $      | 449,718   |   |
|------------|--------|--------|-----------|--------|
| 2011       |   |   | 417,308   |   |
| 2012       |   |   | 292,761   |   |
| 2013       |   |   | 287,261   |   |
| 2014       |   |   | 275,970   |   |
| Thereafter |   |   | 3,922,060 |   |
|       |   | $      | 5,645,078 |   |

|                                             |   | 2009   |        |   | 2008   |   |
|--------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Balance      as of November 1, 2008 and 2007     |   | $      | 38,894,778  |   |   | $      | 38,853,657 |   |
| Goodwill      acquired during the year additions |   |   | -           |   |   |   | 41,121 |   |
| Impairment      of intangibles                   |   |   | (23,562,495 | )      |   |   | - |   |
| Balance      as of October 31, 2009 and 2008     |   | $      | 15,332,283  |   |   | $      | 38,894,778 |   |

----

|  GOODWILL                       |   |                       |       |   |                      |   |      |   |   |   |                  |    |
|--------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|-----------|--------|--------|--------|-----------------------|---------|
|                                 |   | October      31, 2008      |       |   | Amortization Expense |   |      | Other  |   |   | October      31, 2009 |    |
| Printing                             |   | $                          | 2,226,837  |   |                      | $      | -         |   |   | $      | -                     |    |   | $ | 2,226,837 |   |
| Office      products & furniture |   |                       | 1,230,485  |   |                      |   | -         |   |   |   | -                     |    |   |   | 1,230,485 |   |
| Newspaper                            |   |                       | 35,437,456 |   |                      |   | -         |   |   |   | (23,562,495           | )  |   |   | 11,874,961 |   |
| Total                                |   | $                          | 38,894,778 |   |                      | $      | -         |   |   | $      | (23,562,495           | )       |   | $ | 15,332,283 |   |
|                                 |   |                       |       |   |                      |   |      |   |   |   |                  |    |   |   |   |   |
|                                 |   | October      31, 2007      |       |   | Amortization Expense |   |      | Other  |   |   | October      31, 2008 |    |
| Printing                             |   | $                          | 2,226,837  |   |                      | $      | -         |   |   | $      | -                     |    |   | $ | 2,226,837 |   |
| Office      products & furniture |   |                       | 1,230,485  |   |                      |   | -         |   |   |   | -                     |    |   |   | 1,230,485 |   |
| Newspaper                            |   |                       | 35,396,335 |   |                      |   | -         |   |   |   | 41,121                |    |   |   | 35,437,456 |   |
| Total                                |   | $                          | 38,853,657 |   |                      | $      | -         |   |   | $      | 41,121                |    |   | $ | 38,894,778 |   |
|                                 |   |                       |       |   |                      |   |      |   |   |   |                  |    |   |   |   |   |
|        OTHER      INTANGIBLES   |   |                       |       |   |                      |   |      |   |   |   |                  |    |   |   |   |   |
|                                 |   | October      31, 2008      |       |   | Amortization Expense |   |      | Other  |   |   | October      31, 2009 |    |
| Printing                             |   | $                          | 586,021    |   |                      | $      | 314,766   |   |   | $      | -                     |    |   | $ | 271,255 |   |
| Office      products & furniture |   |                       | 1,893,389  |   |                      |   | -         |   |   |   | -                     |    |   |   | 1,893,389 |   |
| Newspaper                            |   |                       | 31,766,747 |   |                      |   | 719,513   |   |   |   | (17,564,988           | )       |   |   | 13,482,246 |   |
| Total                                |   | $                          | 34,246,157 |   |                      | $      | 1,034,279 |   |   | $      | (17,564,988           | )       |   | $ | 15,646,890 |   |
|                                 |   |                       |       |   |                      |   |      |   |   |   |                  |    |   |   |   |   |
|                                 |   | October      31, 2007 |       |   | Amortization      Expense |   |      | Other  |   |   | October      31, 2008 |    |
| Printing                             |   | $                          | 925,210    |   |                      | $      | 339,189   |   |   | $      | -                     |    |   | $ | 586,021 |   |
| Office      products & furniture |   |                       | 1,900,537  |   |                      |   | 7,148     |   |   |   | -                     |    |   |   | 1,893,389 |   |
| Newspaper                            |   |                       | 32,468,810 |   |                      |   | 702,063   |   |   |   | -                     |    |   |   | 31,766,747 |   |
| Total                                |   | $                          | 35,294,557 |   |                      | $      | 1,048,400 |   |   | $      | -                     |    |   | $ | 34,246,157 |   |

----

----

|                                                                      |   | (Loss)      income |        | WeightedAverage Shares |   | PerShareAmount |   |
|---------------------------------------------------------------------------|--------|--------------------|-------------|-----------------------------|--------|----------------|--------|
| 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                                           |   |               |        |                        |   |           |   |   |   |   |
| Income      available to common shareholders and assumed conversions      |   | $                  | 4,658,161   |                        |   | 10,024,000     |   | $ | 0.46 |   |
|                                                                      |   |               |        |                        |   |           |   |   |   |   |
| Year      Ended October 31, 2007                                          |   |               |        |                        |   |           |   |   |   |   |
| Net      income                                                           |   | $                  | 6,080,140   |                        |   |           |   |   |   |   |
| Basic      earnings per share                                             |   |               |        |                        |   |           |   |   |   |   |
| Income      available to common shareholders                              |   |               | 6,080,140   |                        |   | 9,957,000      |   | $ | 0.61 |   |
| Effect      of dilutive securities stock options                          |   |               |        |                        |   | 146,000        |   |   |   |   |
| Diluted      earnings per share                                           |   |               |        |                        |   |           |   |   |   |   |
| Income      available to common shareholders and assumed conversions      |   | $                  | 6,080,140   |                        |   | 10,103,000     |   | $ | 0.60 |   |

----

|                                     |   | FirstQuarter |       | SecondQuarter |   | ThirdQuarter |   | FourthQuarter |       |
|------------------------------------------|--------|--------------|------------|---------------|--------|--------------|--------|---------------|------------|
| Revenues                                 |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2009                                     |   | $            | 36,891,000 |          | $      | 36,140,000   |   | $             | 34,356,000 |   | $ | 33,871,000 |   |
| 2008                                     |   | $            | 40,967,000 |          | $      | 40,104,000   |   | $             | 40,501,000 |   | $ | 44,183,000 |   |
|                                     |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Gross      profit                        |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2009                                     |   | $            | 9,779,000  |          | $      | 10,439,000   |   | $             | 9,666,000  |   | $ | 10,944,000 |   |
| 2008                                     |   | $            | 12,897,000 |          | $      | 12,770,000   |   | $             | 12,272,000 |   | $ | 14,276,000 |   |
|                                     |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Net      income (loss)                   |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2009      (Restated)                     |   | $            | (634,000   | )             | $      | 295,000      |   | $             | (307,000   | ) | $ | (26,875,000 | ) |
| 2008      (Restated)                     |   | $            | 937,000    |          | $      | 1,054,000    |   | $             | 726,000    |   | $ | 1,941,000 |   |
|  Earnings per      share       |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Basic                                    |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2009      (Restated)                     |   | $            | (0.06      | )             | $      | 0.03         |   | $             | (0.03      | ) | $ | (2.69 | ) |
| 2008      (Restated)                     |   | $            | 0.09       |          | $      | 0.11         |   | $             | 0.07       |   | $ | 0.19 |   |
|                                     |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Diluted                                  |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2009      (Restated)                     |   | $            | (0.06      | )             | $      | 0.03         |   | $             | (0.03      | ) | $ | (2.69 | ) |
| 2008      (Restated)                     |   | $            | 0.09       |          | $      | 0.10         |   | $             | 0.07       |   | $ | 0.19 |   |
|                                     |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Weighted      average shares outstanding |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Basic                                    |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2009                                     |   |         | 9,988,000  |          |   | 9,988,000    |   |          | 9,988,000  |   |   | 9,988,000 |   |
| 2008                                     |   |         | 9,981,000  |          |   | 9,988,000    |   |          | 9,988,000  |   |   | 9,988,000 |   |
|                                     |   |         |       |          |   |         |   |          |       |   |   |   |   |
| Diluted                                  |   |         |       |          |   |         |   |          |       |   |   |   |   |
| 2009                                     |   |         | 9,988,000  |          |   | 9,988,000    |   |          | 9,988,000  |   |   | 9,988,600 |   |
| 2008                                     |   |         | 10,045,000 |          |   | 10,041,000   |   |          | 10,023,000 |   |   | 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 |       |
|--------------------------------------------|--------|-------------------------------------|-----------|--------|-------------------------------------|--------|---------|---------------------------------------------|--------|--------|---------------|--------|--------|-------------------------------|------------|
|  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 |   |
|                                       |   |                                |      |   |                                |   |    |                                        |   |   |          |   |   |                          |       |   |   |   |   |   |
|  2007                                 |   |                                |      |   |                                |   |    |                                        |   |   |          |   |   |                          |       |   |   |   |   |   |
|  Allowance      for doubtful accounts |   | $                                   | 1,557,895 |   |                                | $      | 117,768 |                                        |   | $      | 491,934       |   |   | $                             | (656,560   | ) |   |   | 1,511,037 |   |

----