SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                  FORM 10-Q

                               QUARTERLY REPORT

                      Pursuant to Section 13 or 15(d) of
                      the Securities Exchange Act of 1934


           January 31, 1996                           1-6528
----------------------------------------   ------------------------------
     For the quarterly period ended            Commission file number


                     WALLACE COMPUTER SERVICES, INC.
   ---------------------------------------------------------------------
          (Exact Name of Registrant as Specified in its Charter)


                   Delaware                            36-2515832
   --------------------------------------  ------------------------------------
      (State or Other Jurisdiction of      (I.R.S. Employer Identification No.)
      Incorporation or Organization)


         4600 W. Roosevelt Road, Hillside, Illinois           60162
       ----------------------------------------------   -----------------
         (Address of Principal Executive Offices)          (ZIP CODE)


           (312) 626-2000                          22,860,175
  ---------------------------------  ----------------------------------------
  (Registrant's Telephone Number,       Number of Common Shares Outstanding
     Including Area Code)                     as of February 29,1996)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.


                           X   Yes           No
                        -------      -------


<PAGE>
                       Wallace Computer Services, Inc.          Page 2
                                   FORM 10-Q
                  For Quarterly Period Ended January 31, 1996
                              
                         Part I  Financial Information

Item 1.  Financial Statements
--------------------------------------

     The information furnished herein reflects all adjustments which are, in
     the opinion of management,necessary to a fair statement of the results of
     operations and financial position for the six months ended
     January 31, 1996, subject to year-end audit by independent public
     accountants.  These adjustments are of a normal, recurring nature.

                Wallace Computer Services, Inc. and Subsidiary
                   Consolidated Income Statement (Unaudited)

<TABLE>
<CAPTION>
                                                For the Six Months Ended
                                                       January 31
                                       -----------------------------------------
                                                       %                     %
                                           1996      Sales       1995      Sales
                                       ------------  -----   ------------  -----
<S>                                    <C>           <C>    <C>          <C>
Net Sales                              $433,983,000  100.0  $334,518,000  100.0

Cost and Expenses
  Cost of goods sold (Note 1)           272,866,000   62.9   215,315,000   64.4
  Selling and administrative expenses    74,683,000   17.2    63,174,000   18.9
  Provision for depreciation and
       amortization                      21,499,000    5.0    17,824,000    5.3
  Hostile takeover expenses (Note 5)      6,911,000    1.6             0    0.0
                                      -------------  -----  ------------  ----- 
    Total costs and expenses           $375,959,000   86.6  $296,313,000   88.6 
                                      -------------  -----  ------------  ------
  Operating Income                       58,024,000   13.4    38,205,000   11.4
                                      -------------  -----  ------------  ----- 
  Interest income                        (1,413,000)  (0.3)   (1,984,000)  (0.6)
  Interest expense                          553,000    0.1       694,000    0.2 
                                      -------------  -----  ------------  ------
  Income before Income Taxes             58,884,000   13.6    39,495,000   11.8 
  Provision for Income Taxes (Note 4)    22,535,000    5.2    14,416,000    4.3
                                      -------------  -----  ------------  -----
  Net Income                            $36,349,000    8.4   $25,079,000    7.5
                                      =============  =====  ============  =====
Net Income per Share                          $1.60                $1.12
                                               ====                 ====
Average Common Shares Outstanding        22,731,000           22,419,000
                                         ==========           ==========
Dividends Declared Per Share                  $0.43                $0.37
                                              =====                =====

</TABLE>
The accompanying notes are an integral part of this statement.

<PAGE>
                       Wallace Computer Services, Inc.          Page 3
                                   FORM 10-Q
                  For Quarterly Period Ended January 31, 1996


                Wallace Computer Services, Inc. and Subsidiary
                   Consolidated Income Statement (Unaudited)

<TABLE>
<CAPTION>
                                               For the Three Months Ended
                                                       January 31
                                       ----------------------------------------
                                                       %                    %
                                           1996      Sales      1995      Sales
                                       ------------  -----  ------------  -----
<S>                                    <C>           <C>    <C>           <C>    
Net Sales                              $219,545,000  100.0  $176,165,000  100.0

Cost and Expenses
  Cost of goods sold (Note 1)           136,535,000   62.2   113,695,000   64.5
  Selling and administrative expenses    37,706,000   17.2    32,913,000   18.7
  Provision for depreciation and
       amortization                      10,944,000    5.0     9,060,000    5.1
  Hostile takeover expenses (Note 5)      2,879,000    1.3             0    0.0
                                       ------------  -----  ------------  -----
    Total costs and expenses           $188,064,000   85.7  $155,668,000   88.4
                                       ------------  -----  ------------  -----
  Operating Income                       31,481,000   14.3    20,497,000   11.6
                                       ------------  -----  ------------  -----
  Interest income                          (561,000)  (0.3)     (963,000)  (0.5)
  Interest expense                          219,000    0.1       300,000    0.2
                                       ------------  -----  ------------  ----- 
  Income before Income Taxes             31,823,000   14.5    21,160,000   12.0
  Provision for Income Taxes (Note 4)    12,252,000    5.6     7,724,000    4.4
                                       ------------  -----  ------------  -----
    Net Income                          $19,571,000    8.9   $13,436,000    7.6
                                       ============  =====  ============  =====
Net Income per Share                          $0.86                $0.60
                                              =====                =====
Average Common Shares Outstanding        22,756,000           22,443,000
                                         ==========            =========
Dividends Declared Per Share                 $0.215                $0.37
                                             ======                =====
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
                                                                         Page 4
                Wallace Computer Services, Inc. and Subsidiary
                          Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                 January 31, 1996  July 31, 1995
                                                   (Unaudited)        (Audited)
                                                -----------------  -------------
<S>                                                 <C>            <C>    
Assets
Current Assets
  Cash and Cash Equivalents                          $27,671,000    $10,815,000
  Short-term Investments (Note 3)                      2,884,000     30,242,000
  Accounts Receivable                                153,287,000    130,036,000
  Less-Allowance for Doubtful Accounts                 3,292,000      2,671,000
                                                    ------------   ------------
 Net Receivables                                     149,995,000    127,365,000
  Inventories (Note 1)                                91,907,000     79,523,000
  Advances and Prepaid Expenses                       16,114,000     10,927,000
                                                    ------------   ------------
     Total Current Assets                            288,571,000    258,872,000
                                                    ------------   ------------
Property, Plant and Equipment, at Cost               519,616,000    487,207,000
Less-Reserves for Depreciation and Amortization      249,278,000    230,691,000
                                                    ------------   ------------
  Net Property, Plant and Equipment                  270,338,000    256,516,000
                                                    ------------   ------------
Intangible Assets Arising from Acquisitions           26,201,000     26,575,000
Cash Surrender Value of Life Insurance                31,583,000     26,836,000
Systems Development Costs                             19,073,000     15,253,000
Other Assets                                           5,377,000      8,650,000
                                                    ------------   ------------
  Total Assets                                      $641,143,000   $592,702,000
                                                    ============   ============
Liabilities and Stockholders' Equity
Current Portion of Long-Term Debt                       $150,000       $205,000
Accounts Payable                                      39,668,000     24,209,000
Accrued Salaries, Wages, Profit Sharing and Other     40,136,000     41,308,000
                                                    ------------   ------------
  Total Current Liabilities                           79,954,000     65,722,000
                                                    ------------   ------------
Long-Term Debt                                        25,600,000     25,600,000
Deferred Income Taxes                                 26,326,000     24,095,000
Deferred Compensation and Retirement Benefits         22,325,000     21,167,000
Stockholders' Equity
  Common Stock (Note 2) Outstanding-22,834,772
      shares at January 31, 1996 and
      22,689,563 shares at July 31, 1995              22,835,000     22,689,000
  Additional Capital                                  49,978,000     45,800,000
  Retained Earnings                                  414,361,000    387,810,000
  Unrealized Loss on Securities (Note 3)                (236,000)      (181,000)
                                                    ------------   ------------
  Total Stockholders' Equity                         486,938,000    456,118,000
                                                    ------------   ------------
Total Liabilities and Stockholders' Equity          $641,143,000   $592,702,000
                                                    ============   ============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
                Wallace Computer Services, Inc. and Subsidiary          Page 5
               Consolidated Statement of Cash Flows (Unaudited)

<TABLE>
<CAPTION>
                                                   For the Six Months Ended
                                                           January 31
                                                    ----------------------------
                                                         1996          1995
                                                    -------------  -------------
<S>                                                  <C>            <C>  
Cash Flows from Operating Activities:
  Net income from operations                         $36,349,000    $25,079,000
  Adjustments to reconcile net income to net
    cash provided by operating activities:
     Depreciation and amortization                    21,499,000     17,824,000
     Deferred taxes                                    2,231,000     (1,306,000)
     (Gain)/loss on disposal of property                 (47,000)        10,000
  Changes in assets and liabilities
     Accounts receivable                             (22,630,000)   (26,353,000)
     Inventories                                     (12,384,000)    (3,915,000)
     Advances and prepaid expenses                    (5,187,000)      (737,000)
     Other assets                                    (10,714,000)    (4,022,000)
     Accounts payable and other liabilities           13,576,000      2,706,000
     Accrued income taxes                                      0       (560,000)
     Deferred compensation and retirement benefits     1,158,000      1,971,000
                                                    -------------   ------------
  Net cash provided by operating activities           23,851,000     10,697,000
                                                    -------------   ------------
Cash Flows from Investing Activities:
  Capital expenditures                               (32,792,000)   (25,087,000)
  Short-term investments                              27,358,000     16,849,000
  Long-term investments                                   38,000              0
  Proceeds from disposal of property                      77,000         26,000
  Unrealized loss on securities (Note 3)                 (55,000)      (594,000)
  Purchase of Lampro Graphics                                  0     (4,911,000)
                                                   --------------  -------------
  Net cash used in investing activities               (5,374,000)   (13,717,000)
                                                   --------------  -------------
Cash Flows from Financing Activities:
  Proceeds from issuance of common and
     treasury stock                                    4,324,000      3,318,000
  Cash dividends paid                                 (9,085,000)    (7,727,000)
  Amounts paid on long-term debt                         (55,000)    (3,129,000)
  Proceeds from issuance of short-term debt                    0      4,829,000
  Proceeds from issuance of long-term debt                     0        100,000
  Retirement of short-term and acquired debt                   0     (6,474,000)
  Proceeds from construction funds held by trustee     3,195,000        838,000
                                                    -------------  -------------
  Net cash used in financing activities               (1,621,000)    (8,245,000)
                                                    -------------  -------------
Net changes in cash and cash equivalents              16,856,000    (11,265,000)
Cash and cash equivalents at beginning of year        10,815,000     17,587,000
                                                    -------------  -------------
Cash and cash equivalents at January 31              $27,671,000     $6,322,000
                                                    =============  =============
Supplemental Disclosure:
  Interest paid (net of interest capitalized)        $  (108,000)  $    (53,000)
  Income taxes paid (net of refunds received)         25,547,000     16,711,000
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
                 Wallace Computer Services, Inc. and Subsidiary         Page 6
                   Notes to Consolidated Financial Statements
                               January 31, 1996
                                  (Unaudited)

Note 1 - Inventories

     Inventories at January 31, 1996, and July 31, 1995,
     were as follows:
<TABLE>
<CAPTION>
                              January 31, 1996  July 31, 1995
                              ----------------  -------------
          <S>                      <C>            <C>
          Raw materials            $24,090,000    $25,981,000
          Work in process            1,588,000      2,060,000
          Finished products         66,229,000     51,482,000
                              ----------------  -------------
                                   $91,907,000    $79,523,000
                              ================  =============
</TABLE>
     Certain inventories are stated on the last-in, first- out (LIFO) basis
     for their labor and material content, and other inventories are stated
     on the first-in, first-out (FIFO) basis.

     Because the inventory determination under the LIFO method can only be
     made at the end of each fiscal year based on the inventory levels and
     costs at that time, interim period LIFO determinations must necessarily be
     based upon management's estimates of expected year-end inventory levels
     and costs.

Note 2 - Stock Options

     As of January 31, 1996, options to purchase 506,833 shares of common
     stock were outstanding and 726,541 shares of common stock were available
     for future grants under the Company's Stock Option and Employee Stock
     Purchase Plans.

     The Company has authorized 50,000,000 shares of common stock and has
     issued 22,834,772 as of January 31, 1996. Of these shares,  986,780 have
     been repurchased and been reissued under the Employee Stock Purchase
     Plan and through the exercise of stock options.  The number of shares
     held in treasury at January 31, 1996 is 0.  At July 31, 1995,
     22,796,176 shares had been issued of which 986,780 had been repurchased
     and 880,167 have been reissued.  The number of shares held in treasury
     at July 31, 1995 was 106,613.

Note 3 - Changes in Accounting

     Effective August 1, 1994, the Company adopted Statement of Financial
     Accounting Standards No. 115 (SFAS 115), "Accounting for Certain
     Investments in Debt and Equity Securities." .  The adoption of this
     statement had no impact on net income, but decreased shareholders'
     equity by $181,000 at July 31, 1995, and by $236,000 at January 31, 1996
     (net of tax).

<PAGE>

                       Wallace Computer Services, Inc.          Page 7
                                    FORM 10-Q
                  For Quarterly Period Ended January 31, 1996

Note 3 - Accounting Change (continued)


     The amortized cost and market value of investments as of July 31, 1995,
     and as of January 31, 1996 were as follows:

<TABLE>
<CAPTION>
     July 31, 1995              Amortized    --Unrealized Holding-      Market
     -------------                Cost          Gains      Losses        Value
                               ------------  ----------  ---------  ------------
 <S>                           <C>            <C>         <C>       <C>
 Available-for-Sale
      State, Municipal &
      Other Govt Debt          $21,293,000    $113,000    $23,000   $21,383,000
      Equity                     9,251,000           0    392,000     8,859,000
     Held-to-Maturity
      State, Municipal &
      Other Govt Debt                    0           0          0             0
                               -----------    --------   --------   ----------- 
Total Short-term
       Investments             $30,544,000    $113,000   $415,000   $30,242,000
                               ===========    ========   ========   =========== 
Long-term Available
    -for-Sale
             Equity             $1,992,000          $0        $0     $1,992,000
                               ===========    ========   ========    ===========
</TABLE>
<TABLE>
<CAPTION>


    January 31, 1996            Amortized    Unrealized Holding       Market
    ---------------------         Cost         Gains      Losses       Value
                              ------------   ---------   -------   -----------
 <S>                            <C>          <C>         <C>       <C>
 Available-for-Sale
      State, Municipal &
      Other Govt Debt              $67,000           0    $15,000      $52,000
      Equity                     3,210,000           0    378,000    2,832,000
     Held-to-Maturity
      State, Municipal &
      Other Govt Debt                    0           0          0            0
                                ----------   ---------   --------   ----------
       Total Short-term
       Investments              $3,277,000           0   $393,000   $2,884,000
                                ==========   =========   ========   ==========  
   Long-term Available
   -for-Sale Equity             $1,955,000          $0         $0   $1,955,000
                                ==========   =========   ========   ==========
</TABLE>
     Maturities for all debt securities classified as short-term are less
     than one year.  The long-term investment is included in the 'Other
     Assets' section of the balance sheet.

     In the six months ended January 31, 1996, proceeds on the sale of
     available-for-sale securities were $23,323,000, with gross realized
     losses of $107,000.  The amortized cost of these securities was based
     on specific identification.  No securities during the period were
     classified as trading securities.  The change in net unrealized loss
     on available-for-sale securities from July 31, 1995 to January 31, 1996
     was $55,000 (net of tax).

     There have been no sales of held-to-maturity securities other than at
     their maturity date.
<PAGE>
                          Wallace Computer Services, Inc.            Page 8
                                  FORM 10-Q
                  For Quarterly Period Ended January 31, 1996

Note 4 - Income Taxes


     Effective August 1, 1995, the Company increased its effective tax rate
     from 37% to 38%.  Effective November 1, 1995, the Company again increased
     its effective tax rate from 38% to 38.5%.  These changes were primarily
     due to a reduction in tax-free investment income.  The income tax rate
     for the first half of fiscal 1995 was 36.5%.

Note 5 - Hostile Takeover Expense Commitments

     Included in hostile takeover expenses is $3,000,000 for the quarter
     and $5,000,000 for the six months ended January 31, 1996 related to a
     letter agreement with Goldman Sachs & Co. ("Goldman Sachs") dated
     July 30, 1995.  Pursuant to the letter agreement (the "Letter
     Agreement"), the company has retained Goldman Sachs as financial advisor
     with respect to the unsolicited tender offer from FRDK, Inc., a wholly
     owned subsidiary of Moore Corporation Limited, (the "Offer") and certain
     other possible transactions.  Pursuant to the Letter Agreement, the
     Company has agreed to pay: (a) a fee of $500,000, payable on the date of
     the Letter Agreement (which amount has been paid and is creditable
     against any fees payable under clause (b), (c) or (d) below); (b) if 15%
     or more of the outstanding stock of the Company is acquired by Moore or
     any other person or group (including the Company), in one or a series of
     transactions, or if all or substantially all of the assets of the
     Company are transferred, in one or a series of transactions, by way of a
     sale, distribution or liquidation, a fee equal to 0.62% of the aggregate
     value of all such transactions (in the event at least 50% of the
     outstanding stock of the Company is acquired by Moore or any other
     person, such aggregate value will be determined as if such acquisition
     were of 100% of the stock of the Company); (c) if the Company or any
     entity formed or owned in substantial part or controlled by the Company
     or one or more members of senior management of the Company or any employee
     benefit plan of the Company or any of its subsidiaries effects certain
     recapitalization transactions, a fee equal to 0.62% of the aggregate
     value of such transaction; (d) if the Company sells, distributes or
     liquidates all of its assets, or a portion of its assets having an
     aggregate value of $50 million or more, and no fee is otherwise payable
     pursuant to clause (b) or (c) above, a fee based upon the aggregate
     value of such transaction pursuant to a schedule ranging from 2.00% if
     the aggregate value of the transaction is $50 million, to 0.75% if the
     aggregate value of the transaction is $750 million or more; and (e) in
     the event no transaction of the type described in clause (b) or (c)
     above has been consummated by any of the following dates, a fee of $1.5
     million on each such date as of which no transaction has been
     consummated: October 31, 1995, January 31, 1996, April 30, 1996,
     July 31, 1996 and October 31, 1996.  Any fee paid pursuant to clause (e)
     shall be creditable against any fee payable under clause (b), (c) or (d)
     above.  Any fee paid under clause (b) above shall be creditable against
     any fee subsequently paid under clause (c) above, and vice versa.

     Goldman Sachs acted as the Company's financial advisor with regard to
     the Moore proxy solicitation.  No additional fee was or will be paid to
     Goldman Sachs in connection therewith.

     The Letter Agreement may be terminated at any time by either party
     thereto, with or without cause, effective upon receipt of written notice
     to that effect.  Goldman Sachs will be entitled to the transaction fee set
     forth above if at any time prior to the expiration of eighteen months
     after such termination a transaction of the type contemplated by clause
     (b), (c) or (d) above is consummated and, in the case of a transaction
     contemplated by clause (b) or (d), there was contact with the acquiring
     party, or any affiliate thereof, regarding such a transaction during the
     period of Goldman Sachs' engagement.  Any fee paid under clause (e) shall,
     however, be credited against any such transaction fee.
<PAGE>
                       Wallace Computer Services, Inc.          Page 9
                                  FORM 10-Q
                  For Quarterly Period Ended January 31, 1996

                   Report of Independent Public Accountants
         ------------------------------------------------------------

To the Stockholders of Wallace Computer Services, Inc.

We have reviewed the accompanying consolidated balance sheet of Wallace Computer
Services, Inc., (a Delaware Corporation) and subsidiary as of January 31,
1996, and the related consolidated statements of income for the three-month and
six-month periods ended January 31, 1996 and 1995, and the consolidated
statements of cash flows for the six-month periods ended January 31, 1996,
and 1995.  These financial statements are the responsibility of the company's
management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters.  It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the financial statements referred to above for them to be
in conformity with generally accepted accounting principles.

Arthur Andersen LLP
Chicago, Illinois
February 20, 1996
<PAGE>
                       Wallace Computer Services, Inc.          Page 10
                                   FORM 10-Q
                  For Quarterly Period Ended January 31, 1996

Item 2.   Management's Discussion and Analysis of Financial
Condition and Results of Operations
------------------------------------------------------------


     Results of Operations
     ------------------------------

     There have been no material changes in financial condition since the
     preceding fiscal year which ended July 31, 1995.

     For the three month period ended January 31, 1996, net sales increased
     24.6% to $219,545,000.  Net income for the second quarter increased
     45.7% to $19,571,000 or 86 cents per share, from $13,436,000 or 60 cents
     per share in fiscal 1995.  Pretax income for the quarter was up by
     $10,663,000 or 50.4%.  The after tax impact of expenses related to the
     hostile takeover attempt by Moore Corporation Limited was $1,770,000 or
     8 cents per share.  The second quarter includes the recognition of an
     additional $1,500,000 of expense relating to the Goldman Sachs letter
     agreement.  The impact of the Goldman Sachs fees pursuant to the letter
     agreement will be fully recognized in the fiscal year ended July 31, 1996.
     For the six month period ended January 31, 1996, net sales increased
     29.7% to $433,983,000.  Net income for the first half increased 44.9% to
     $36,349,000 or $1.60 per share, from $25,079,000 or $1.12 per share in
     fiscal 1995.  Pretax income for the half was up by $19,389,000 or 49.1%.
     The after tax impact of hostile takeover expenses was $4,270,000 or
     19 cents per share.

     Cost of goods sold represented 62.2% of sales versus 64.5% in the second
     quarter of fiscal 1995.  The second quarter of fiscal 1996 includes a
     LIFO credit of approximately $1.2 million or 3.4 cents per share.  The
     credit is due to a decrease in paper prices offset by higher finished
     goods inventory levels anticipated by year-end.  Cost of goods sold for
     the first half was 62.9% in fiscal 1996 versus 64.4% in fiscal 1995.
     Total LIFO credits for the first half were $1.0 million or 2.8 cents per
     share.  The LIFO provision for the first half of 1995 was $3.6 million
     or 10.3 cents per share.

     Selling and administrative expenses were 17.2% of sales versus 18.7% in
     the second quarter last year.  For the first half of fiscal 1996,
     expenses are 17.2% of sales versus 18.9% in fiscal 1995.  These
     decreases are attributable to maintaining fixed costs while increasing
     sales.

     The provision for depreciation and amortization is up 20.6% in the first
     half from fiscal 1995.  This increase is the result of the Company's
     continued reinvestment in capital resources and system development.

     Interest income for the first half decreased by $571,000 or 28.8% from
     the same period one year ago. The reduction is due to the decrease in
     cash and short-term investments attributable to reinvestment in the
     Company through capital expenditures and acquisitions.  Interest
     expense, which is shown net of capitalized interest, decreased $141,000
     or 20.3% between years.  The reduction of interest expense is due to the
     retirement of $6,110,000 of debt during fiscal 1995.

     Operating income for the quarter was up $10,984,000 or 53.6%.  For the
     first half, operating income was up $19,819,000 or 51.9%.  For fiscal
     1996 this represents 13.4% to sales versus 11.4% for fiscal 1995.
<PAGE>
                       Wallace Computer Services, Inc.          Page 11
                                   FORM 10-Q
                  For Quarterly Period Ended January 31, 1996

Item 2.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations (continued)
-------------------------------------------------------------------------
        Liquidity and Capital Resources
     ------------------------------------------

     Working capital increased by $15,467,000 from July 31, 1995, with a
     current ratio of 3.6 at January 31, 1996.  Long-term debt includes
     $23,500,000 of industrial revenue bonds at rates ranging from 3.3% to
     3.45%, as well as $2,100,000 related to acquisitions made in the prior
     fiscal year.  Long-term debt currently represents 5.0% of total
     capitalization.

     Capital expenditures for the first six months totaled $32,792,000.  For
     the full fiscal year, capital expenditures are expected to be $60.0
     million, which are expected to be financed through internally generated
     funds and by the Industrial Revenue Bond for our Lebanon facility.

     Stockholders' equity increased by 6.8% to $486.9 million at January 31,
     1996.

     Cash balances remain adequate to fund current operations.  There have
     been no borrowings under short- term lines of bank credit thus far in
     this fiscal year.

     Current inventory levels are believed to be in-line with the inventory
     levels necessary to satisfy customer demand.  The company anticipates
     having adequate sources of supply of raw materials to meet future
     business requirements.

     Common Stock
     -------------------

     On September 7, 1995, the Board of Directors increased the annualized
     dividend rate to $.86 per share, a 16.2% increase from fiscal 1995.

     Other
     -------

     Effective February 1, 1996, the Company sold the Lasermax division to
     Stralfors A.B. of Ljungby, Sweden in a cash transaction which
     approximates book value.  It is not anticipated that the sale will
     affect the earnings forecast for fiscal 1996.

     On February 8, 1996 the Company completed the acquisition of Forms
     Engineering Company.  The acquisition was a cash transaction and will be
     accounted for using the purchase method.  Though the acquisition is
     anticipated to be additive to fiscal 1996 earnings, it is not expected to
     have a material impact.
<PAGE>

                      Wallace Computer Services, Inc.          Page 12
                                   FORM 10-Q
                  For Quarterly Period Ended January 31, 1996
                              
                          Part II  Other Information
                      ---------------------------------

Item 1    Legal Proceedings
-----------------------------------

     THE MOORE ACTION.  On July 31, 1995, Moore Corporation Limited ("Moore")
     and FRDK, Inc. ("FRDK") commenced an action in the United States
     District Court for the District of Delaware by filing a complaint (the
     "Moore Action") against the Company and each of the directors of the
     Company, entitled MOORE CORPORATION LIMITED AND FRDK, INC. V. WALLACE
     COMPUTER SERVICES, INC., ROBERT J. CRONIN, THEODORE DIMITRIOU, FRED F.
     CANNING, WILLIAM N. LANE, III, NEELE E. STEARNS, JR., R. DARRELL EWERS,
     RICHARD F. DOYLE AND WILLIAM E. OLSEN.  The Moore Action, as amended by
     the Amended and Supplemental Complaint filed on October 17, 1995,
     asserts, among other things, that the use of certain anti-takeover
     devices and other defensive measures by the Company is not proportionate
     nor within the range of reasonable responses to the tender offer made by
     FRDK, a wholly owned subsidiary of Moore, to purchase all outstanding
     shares of common stock of the Company, together with associated
     preferred stock purchase rights (the "Rights") issued pursuant to the
     Rights Agreement, dated as of March 14, 1990 (the "Rights Agreement"), at 
     a price of $60.00 net to the seller in cash (the "Offer"), and is in
     breach of the directors' fiduciary duties to the Company's stockholders.
     The Moore Action also asserts that the Offer and a merger with FRDK or
     another wholly owned subsidiary of Moore (the "Proposed Merger") and
     proxy solicitation comply or will comply with all applicable laws and
     other obligations and seeks a declaratory judgment that the Offer and the
     Proposed Merger and proxy solicitation comply with all applicable laws
     and other obligations.  The Moore Action seeks: (i) preliminary and
     permanent injunctive relief prohibiting the Company, its directors,
     officers and certain other related parties from taking steps to impede
     the ability of the Company's stockholders to consider and make their own
     determination as to whether to accept the terms of the Offer or give or
     withhold consent to the terms of the proxy solicitation, or taking any
     other action to thwart or interfere with the Offer, the Proposed Merger
     or the proxy solicitation; (ii)(a) to compel the Company's directors to
     redeem the Rights or amend the Rights Agreement to make the Rights
     inapplicable to the Offer and the Proposed Merger, and (b) preliminary
     and permanent injunctive relief enjoining the Company, its directors,
     officers and certain other related parties from taking any action to
     implement and distribute the Rights and from taking actions pursuant to
     the Rights Agreement; (iii)(a) to compel the Company's directors to
     approve the Offer and the Proposed Merger for the purposes of Section
     203 of the Delaware General Corporation Law ("Section 203"),and (b)
     preliminary and permanent injunctive relief enjoining the Company, its
     directors, officers and certain other related parties from taking any
     actions to enforce or apply Section 203 that would interfere with the
     Offer; and (iv)(a) to compel the Company's directors to approve the
     Offer and the Proposed Merger for purposes of Article Ninth of the Restated
     Certificate of Incorporation of the Company ("Article Ninth"), and (b)
     preliminary and permanent injunctive relief enjoining the Company, its
     directors, officers and certain other related parties from taking any
     actions to enforce or apply Article Ninth that would interfere with the
     Offer.  On August 15, 1995, the Company and each of the directors of the
     Company filed a Motion to Dismiss the Moore Action.  On September 19,
     1995, the United States District Court for the District of Delaware
     denied the Motion to Dismiss.  On September 25, 1995, the Company and
     its directors filed an Answer and Counterclaim in the United States
     District Court for the District of Delaware in connection with the
     Moore Action.  The counterclaim brought against Moore, Bidder and Reto
     Braun, Chairman of the Board and Chief Executive Officer of Moore,
     asserts (i) that the effect of the transactions contemplated by the
     Offer to Purchase may be substantially to lessen competition in a
     relevant market and therefore violate Section 7 of the Clayton Act,
     15 U.S.C. Section 18; and (ii) that Moore, the Bidder, and Mr. Braun
     have made false and misleading statements of fact in connection with the
<PAGE>

                      Wallace Computer Services, Inc.                Page  13
                                FORM 10-Q
                  For Quarterly Period Ended January 31, 1996

Item 1    Legal Proceedings (continued)
---------------------------------------      
     Offer and their proxy solicitation materials.  The counterclaim seeks
     declaratory and injunctive relief (i) enjoining Moore and the Bidder
     from acquiring any voting securities of the Company and (ii) enjoining
     Moore, the Bidder and Mr. Braun from acquiring any shares of Common
     Stock of the Company until 60 days after they have fully complied with
     the Securities Exchange Act of 1934, as amended.  On December 4, 1995,
     the United State District Court for the District of Delaware issued an
     Order and an Opinion.  Pursuant to the Order and Opinion, the Court
     denied Moore and the Bidder's motion for a preliminary injunction with
     respect to the breach of fiduciary claim.  In addition, the Court
     granted Moore and the Bidder's motion to dismiss the Company's antitrust
     counterclaim.  On January 23, 1996, the Court entered a final judgment
     dismissing all claims in the action with prejudice.  On January 29,
     1996, the Company filed a notice of appeal with the District Court in
     order to appeal the Court's dismissal of the Company's antitrust
     counterclaim described above.

     STOCKHOLDER ACTIONS.  The Company and its directors have been named
     as defendants in three purported class actions filed between July 31,
     1995 and August 3, 1995 on behalf of the public stockholders of the
     Company in the Court of Chancery of the State of Delaware in and for
     New Castle County.  These actions are entitled: BERNARD KOFF V. THEODORE
     DIMITRIOU, FRED CANNING, WILLIAM N. LANE, NEELE E. STEARNS, JR., ROBERT J.
     CRONIN, DARRELL R. EWERS, RICHARD F. DOYLE, WILLIAM E.OLSEN, AND WALLACE
     COMPUTER SERVICES, INC.; KITTY LAPERRIERE V. WALLACE COMPUTER SERVICES,
     INC., THEODORE DIMITRIOU AND ROBERT J. CRONIN ; AND ROBIN K. PITTMAN 
     v. THEODORE DIMITRIOU, FRED F. CANNING, WILLIAM N. LANE, III, NEELE E.
     STEARNS, JR., ROBERT J. CRONIN, DARRELL R. EWERS, RICHARD F. DOYLE,
     WILLIAM E. OLSEN, AND WALLACE COMPUTER SERVICES, INC. (collectively, the
     "Stockholder Actions").  The complaints in the Stockholder Actions
     contain substantially similar allegations, and allege breach of
     fiduciary duty claims arising out of the proposal by FRDK to acquire the
     Company.  The complaints in the Stockholder Actions also seek
     substantially similar relief, including declaratory and injunctive relief
     barring defendants from breaching their fiduciary duties to plaintiffs
     and the putative class members and taking steps to impede any offer to
     acquire the Company, as well as damages in an unspecified amount.  On
     September 22, 1995, the plaintiffs in KOFF V. DIMITRIOU, et al. and
     LAPERRIERE V. WALLACE COMPUTER SERVICES, INC. et al. filed an Amended
     Class Action Complaint, which, among other things, consolidates the
     actions such plaintiffs filed in the Court of Chancery of the State of
     Delaware.  The Amended Class Action Complaint, among other things, seeks
     injunctive relief with respect to enforcement of certain amendments to
     the Company's Profit Sharing Plan and Profit Sharing Trust.  On November
     21, 1995, the plaintiffs in KOFF v. DIMITRIOU, et al. and LAPERRIER V.
     WALLACE COMPUTER SERVICES, INC., et al. filed a Second Amended Class Action
     Complaint in the Court of Chancery of the State of Delaware.  The
     plaintiffs' counsel in the Stockholders Actions has extended the time in
     which the Company must answer or otherwise respond to the complaint
     until ten days from the date plaintiffs' counsel requests such a response.

Items 2 and 3  None
-------------------
<PAGE>
                      Wallace Computer Services, Inc.          Page 14
                                   FORM 10-Q
                 For Quarterly Period Ended January 31, 1996

Item 4    Submission of Matters to a Vote of Security Holders
-------------------------------------------------------------
     The Company held its annual meeting of stockholders on December 8, 1995. 
     The annual meeting was adjourned and reconvened on January 5, 1996.  At
     the reconvened annual meeting, the Inspectors of Election submitted
     the final results of the meeting.  The results are as follows:

       1)   Election of three directors for the class of directors whose
            terms are expiring at the 1995 Annual Meeting.

<TABLE>
<CAPTION>
                                            For        Withhold
                                         ----------    -------- 
                   <S>                    <C>          <C>  
                   Robert J. Cronin        6,007,763   553,743
                   R. Darrell Ewers        6,008,643   552,863
                   Neele E. Stearns, Jr.   6,009,788   551,718

                   Albert W. Isenman III  12,768,938   131,484
                   Curtis A. Hessler      12,769,278   131,144
                   Robert P. Rittereiser  12,769,378   131,044
</TABLE>

       2) Moore's proposal to remove all members of the Board of Directors of
          the Company, other than Moore's director nominees if they are then
          directors of the Company.
<TABLE>
                       For        Against    Abstain
                    ----------   ---------   -------
                    <S>          <C>         <C> 
                    13,573,971   5,571,564   316,973

</TABLE>
       3) Moore's proposal to amend the company's By-laws to fix the number of
          directors of the Company at five.
<TABLE>
                        For        Against    Abstain
                    ----------   ---------   -------- 
                     <S>          <C>         <C>         
                     13,574,701   5,569,027   317,400
</TABLE>

       4) Moore's proposal to repeal each provision of the Company's By-laws
          or amendment thereto adopted without stockholder approval
          subsequent to February 15, 1995 and prior to the 1995 Annual Meeting.
<TABLE>
                         For        Against    Abstain
                     ----------    ---------   -------
                     <S>           <C>         <C>
                     13,508,342    5,632,629   315,157
</TABLE>
  
       5) Ratification of the appointment of Arthur Andersen LLP as the
          Company's independent public accountants for fiscal year 1996.

<TABLE>
                         For       Against     Abstain
                      ----------   -------    ---------
                      <S>          <C>        <C>
                      14,239,747   183,627    5,039,052

</TABLE>
     At the reconvened annual meeting, Albert W. Isenman III, Curtis A.
     Hessler and Robert P. Rittereiser were elected directors of the Company.
     They joined Richard F. Doyle, William E. Olsen, Theodore Dimitriou, Fred F.
     Canning and William N. Lane III on the Board of Directors.  Proposals 2 and
     3 failed to obtain the affirmative vote of 80% of the outstanding shares

<PAGE>

                      Wallace Computer Services, Inc.          Page 15
                                   FORM 10-Q
                  For Quarterly Period Ended January 31, 1996

Item 4    Submission of Matters to a Vote of Security Holders (continued)
-------------------------------------------------------------------------
     and consequently were not adopted.  Proposal 4 obtained the affirmative
     vote of a majority of the shares represented and entitled to vote at the
     annual meeting and consequently was adopted.  Proposal 5 obtained the
     affirmative vote of stockholders holding a majority of the shares
     entitled to vote and consequently was adopted.  On January 5, 1996, the
     Board of Directors increased the size of the Board from eight to nine
     members and elected Mr. Cronin to fill the resulting vacancy.

Item 5    None
-------------------

Item 6    Exhibits
-----------------------
     (a)  Exhibits

       3.1     Amended & Restated By-Laws of Registrant effective as of
               January 5, 1996.

       27.1    Financial Data Schedule

     (b)  Reports on Form 8-K

       No reports on Form 8-K have been filed by the Company during the
       quarter ended January 31, 1996.
<PAGE>

                                                             Page 16
                      Wallace Computer Services, Inc.
                                  FORM 10-Q
                 For Quarterly Period Ended January 31, 1996

 
                                 SIGNATURES
                            ---------------------


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




                        WALLACE COMPUTER SERVICES, INC.





         March 6, 1996                  /s/ ROBERT J. CRONIN
     --------------------        -------------------------------------
             Date                          Robert J. Cronin
                                 President and Chief Executive Officer



        March 6, 1996                 /s/ MICHAEL J. HALLORAN
     -------------------        ---------------------------------------
            Date                        Michael J. Halloran
                                Vice President,Chief Financial Officer,
                                      and Assistant Secretary
                                   (Principal Accounting Officer)