EXHIBIT 10.18


                     LEASE EXTENSION AND EXPANSION AGREEMENT



          THIS AGREEMENT made the 17th day of February,  2000,  between  KERZNER
ASSOCIATES  LIMITED,  a Limited  Partnership,  having  an office at 4  Corporate
Drive,  Cranbury,  New Jersey 08512-3610  (Landlord) and DISC GRAPHICS,  INC., a
Delaware  corporation,  located  at 198 Green Pond  Road,  Rockaway,  New Jersey
(Tenant).

          WHEREAS,  Landlord and Tenant (by its affiliated company DISC GRAPHICS
LABEL  GROUP,  INC.)  entered  into a Lease  Agreement  dated June 14, 1995 (the
Original  Lease) for  premises  located at 198 Green  Pond Road,  Rockaway,  New
Jersey,  consisting  of 8,400  square  feet of  rental  area  more or less  (the
Existing Area); and

          WHEREAS,  by letter  agreement  between the parties dated February 11,
1999, the Lease is scheduled to terminate on June 30, 2000; and

          WHEREAS,  Landlord anticipates that approximately 5,950 square feet of
rental area  contiguous  with the rental  area  covered by the Lease will become
available  for rental to Tenant as of July 1, 2000 (the  Additional  Area);  and

          WHEREAS,  Landlord and Tenant desire and intend to set forth the terms
of an  extension  of the  Lease,  together  with  the  terms  of  rental  of the
Additional Area upon the terms and conditions hereafter set forth;

         NOW  THEREFORE,   IN  CONSIDERATION  of  the  mutual  covenants  herein
contained, the parties agree as follows:

                                 ORIGINAL LEASE

          1.  Original  Lease  Extension - Landlord  and Tenant  hereby agree to
extend  the  term of the  Original  Lease  for a  period  of  seven  (7)  years,
commencing July 1, 2000 and ending June 30, 2007.

          2. Rent for Extension Term - The annual rent during the Extension Term
shall be as follows:  (a) Years one and two, $44,100 per annum, payable in equal
monthly  installments  of $3,675;  (b) Years three  through  seven,  $48,300 per
annum, payable in equal monthly installments of $4,025.

                                 ADDITIONAL AREA

          3.  Description  of  Additional  Area - Subject to the  provisions  of
paragraph 13th (infra) Landlord does hereby lease to Tenant 5,950 square feet of
rental area contiguous  with the rental area of the Original  Lease,  located at
198  Green  Pond  Road,  Rockaway,   New  Jersey,  in  the  building  containing
approximately  48,000 square feet of rental area.

          4.  Site  Percentage  -  The  Site  Percentage   attributable  to  the
Additional Area is 12.4% of the rentable area of the site.

          5.  Term for  Additional  Area - The term for the  Additional  Area is
seven (7) years, commencing July 1, 2000 and ending June 30, 2007.

          6. Rent for Additional  Area - The annual rent for the Additional Area
shall be as  follows:

                    (a) Years one and two, $38,377 per annum, payable in monthly
          installments of $3,198;

                    (b) Years three through seven,  $38,972 per annum payable in
          monthly installments of $3,248.

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          7. Security  Deposit - Upon execution hereof Tenant shall deposit with
Landlord the sum of $3,500 as security for the rental of the Additional Area.

          8.  Parking - Modifying  paragraph 37 of the  Original  Lease,  Tenant
shall have the right to use a total of 23 parking spaces (13 associated with the
Existing Space and 10 associated with the Additional  Space), 17 of which may be
used on a  non-exclusive  basis and in common with other tenants of the Building
and 6 of  which,  inclusive  of  existing  exclusive  spaces,  proximate  to the
entrances of the Existing Space and the Additional Space. These exclusive spaces
shall be  designated  by the  Landlord  and  shall be for the  exclusive  use of
Tenant.  Tenant may, at its expense,  post signs at each  exclusive  use parking
space designating it as reserved for Tenant.

                       PROVISIONS COMMON TO ORIGINAL LEASE
                               AND ADDITIONAL AREA

         9.  Assignment  and Subletting - If Tenant desires to assign this Lease
or sub-let all or any portion of the Existing  Area or Additional  Area,  Tenant
shall  communicate  to Landlord in writing at least sixty (60) days prior to the
date that  Tenant  would like to assign the Lease or sub-let  the  premises  the
following information:

          1. Name and address of the proposed assignee or sub-lessee

          2. Terms and conditions of the proposed assignment or sub-letting

          3. Nature and character of the proposed business

          4.  Banking,  financial and other credit  information  relating to the
proposed assignee or sub-lessee  reasonably sufficient to enable the Landlord to
determine the proposed assignees or sub-lessees financial responsibility.

          After receipt of the  requested  information  Landlord  shall have the
option (i) to recapture  the proposed  sub-leased  or assigned  area so that the
prospective  assignee  or  sub-lessee  shall  become  the  direct  Tenant of the
Landlord and the Tenant  shall be fully  released  from any and all  obligations
hereunder,  except such  obligations  accruing prior to the date of termination.
For the purposes of this clause,  date of termination shall be the date that the
term of the new Lease with the assignee or sub-lessee  commences.  (ii) Landlord
may  consent to the  assignment  of this  Lease or  sub-letting  of the  demised
premises,  upon  compliance  with the following  terms and  conditions:

          (a) The assignee or sub-lessee shall assume by written  instrument all
the  obligations  of this  Lease  and a copy of the  Assignment  and  Assumption
Agreement shall be furnished to the Landlord within ten days of its execution;

          (b) Tenant and any assignee or  sub-lessee  shall be and remain liable
for the observing of all covenants  and  provisions of this Lease  including but
not limited to the payment of fixed rent and additional rent provided for herein
throughout the term of this Lease;

          (c)  Tenant and any  assignee  or  sub-lessee  shall  promptly  pay to
Landlord any and all rent  received for  assignment or  sub-letting  as and when
received in excess of the rent  required to be paid by Tenant under the terms of
this Lease, and

          (d)  Tenant  and the  assignee  or  sub-lessee  shall  defend and hold
Landlord harmless from and against any and all claims from broker's  commissions
or other claims in connection with the assignment or sub-letting.

          (e)  Tenant  may not  assign  or  sub-let  all or part of the  Demised
Premises to any present or former Tenant at 198 Green Pond Road,  Rockaway,  New
Jersey.

<PAGE>
     In the alternative:

          (iii)  Landlord  may  deny  consent  to  assignment  of the  Lease  or
sub-letting of the demised premises;  except the Landlord shall not unreasonably
deny, condition or delay its consent.


         (iv) In the event Landlord  consents to the assignment or  sub-letting,
Tenant shall reimburse  Landlord on demand for any reasonable  costs that may be
incurred by Landlord in connection  with any  assignment or sub-lease  including
but without  limitation,  the costs of making  investigation as to the financial
acceptability of the proposed  assignee or sub- lessee;  legal costs incurred in
connection with preparation or review of any documents  arising  therefrom;  and
costs of tenant review including reasonable legal expenses for same.

          (v)  Notwithstanding  anything  to  the  contrary  contained  in  this
paragraph 9:

          a. on  written  notice  to  Landlord,  but  without  Landlord's  prior
consent,  Tenant  may  assign  the Lease or  sublet  all or any  portion  of the
Existing Area or the  Additional  Area to a subsidiary or affiliated  company in
which it has a controlling interest,  provided Tenant remains fully liable under
the Lease; and

          b. on written  notice to Landlord and with  Landlord's  prior consent,
which shall not be  unreasonably  denied,  conditioned  or delayed,  but without
Landlord's right to recapture the proposed assigned space, Tenant may assign all
but not less than all of the Existing Area or  Additional  Area it then occupies
to an entity that  acquires all or  substantially  all of the stock or assets of
Tenant or with which Tenant otherwise combines, provided such entity's net worth
is at least as favorable as Tenant's.

          10. Landlord's Work - Prior to occupancy by Tenant, Landlord agrees to
close the existing  opening at the north demising wall of the  additional  area.
Except for such work, the Additional Area is leased in "as is" condition.

          11. Tenant's Work - Immediately upon occupying the Additional Area, at
its  expense  Tenant  will join the  Existing  Area and the  Additional  Area by
creating two openings in the common,  non-bearing  north  demising  wall, one of
which will be 16' wide by 12' high and the other will be 8' wide by 8' high. All
work will be performed by competent and where necessary  licensed craftsmen in a
workmanlike  manner and consistent  with the standards of the original  building
construction.  Upon vacating the premises, at the request of the Landlord and at
Tenant's  expense,  Tenant  will  restore  the  demising  wall  to its  original
condition.  Tenant  also  intends to install in the  Additional  Space  printing
equipment of the nature,  size and weight of that present in the Existing  Area.
Landlord hereby consents to such  construction  and to the  installation of such
equipment,  and such consent  satisfied the requirements of paragraph 6th of the
Original  Lease.

<PAGE>
          12.  Option to Renew -  Provided  it has fully  complied  with all the
terms,  covenants and conditions of this Lease,  Tenant shall have the option to
renew the same either for the Existing Area or the Additional Area, or both, for
a five (5) year term commencing July 1, 2007 and terminating  June 30, 2012 (the
Option Period);  provided however, that written notice of exercise of the option
shall be given by Tenant to Landlord at least six (6) months prior to the end of
the term of this extended  Lease.  Annual rent during the Option Period shall be
as follows:

          (i) Existing  Area (8,400  square feet)  $53,130 per annum  payable in
monthly installments of $4,427.50;

          (ii) Additional area (5,950 square feet)  $42,869.75 per annum payable
in monthly installments of $3,572.48.

All other terms and conditions of the Original Lease as heretofore amended,  and
supplemented or modified by this Agreement,  shall be applicable during the term
of this extended lease and the Option Period.

          13.  Present  Lease Terms - (a)  Paragraph  4th of the Original  Lease
entitled  "Operational  Costs and  Taxes" is hereby  amended  to delete the last
sentence;  and  paragraph  39 of said Lease is  superceded  by the terms of this
Agreement.  (b) Except as otherwise  amended or  superceded by the terms of this
Agreement,  all terms, covenants and conditions of the Original Lease as amended
and  supplemented,  shall  remain in full force and effect and are  incorporated
herein by reference.

          14.  Additional  Area - The  Additional  Area being leased by terms of
this Agreement is presently  occupied by Ridge Associates.  Tenant is aware that
Ridge Associates has informed Landlord of its intent to vacate the said premises
on or prior to June 30, 2000. In the event,  however,  Ridge Associates fails to
do so,  Landlord will promptly  make and  diligently  pursue an effort to remove
said Tenant by judicial process or otherwise,  it being  represented by Landlord
that the Lease between Landlord and Ridge  Associates  terminates as of June 30,
2000. The terms of this Agreement of Lease  Extension and Expansion shall become
operative  with  respect  to  the  Additional  Space  only  when,  as and if the
additional area is in fact vacated as herein provided.

         IN WITNESS  WHEREOF,  the parties hereto have set their hands and seals
the day and year first above written.


                                        KERZNER ASSOCIATES LTD.


                                        By: /s/ Sandy Kerzner
                                        ---------------------
                                        Sandy Kerzner




Attest:
                                        DISC GRAPHICS, INC.


/s/ Debra A. Sluter                     By: /s/ Frank A. Bress
-------------------                     ----------------------
Notary Public                           Frank A. Bress