<PAGE>   1
                       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, 2000                               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)


     2275 Cabot Drive   Lisle, Illinois                        60532
-----------------------------------------------------    -----------------
(Address of Principal Executive Offices)                  (ZIP CODE)


         (630) 588-5000                                40,353,470
-----------------------------------     ----------------------------------------
(Registrant's Telephone Number,             (Number of Common Shares Outstanding
      Including Area Code)                             as of March 1, 2000)


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>   2


                     Wallace Computer Services, Inc.                      Page 2
                                    FORM 10-Q
                   For Quarterly Period Ended January 31, 2000

                          Part I Financial Information
                       ----------------------------------

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

         The information furnished herein reflects all adjustments which are, in
         the opinion of the management, necessary to a fair statement of the
         results of operations and financial position for the six months ended
         January 31, 2000, subject to year-end audit by independent public
         accountants. These adjustments are of a normal, recurring nature.

                           Wallace Computer Services, Inc. and Subsidiaries
                               Consolidated Income Statement (Unaudited)
<TABLE>
<CAPTION>

                                                                For the Six Months Ended
                                                                       January 31
                                        -----------------------------------------------------------------
                                                                      %                              %
                                                     2000           Sales           1999           Sales
                                        -----------------------------------------------------------------
<S>                                               <C>               <C>          <C>               <C>
Net Sales                                         $771,864,000      100.0        $761,221,000      100.0

Cost and Expenses
     Cost of goods sold (Note 1)                   536,634,000       69.5         525,264,000       69.0
     Selling and administrative expenses           133,518,000       17.3         123,522,000       16.2
     Provision for depreciation and
          amortization                              39,322,000        5.1          37,985,000        5.0
                                               ---------------     ------     ---------------     ------
          Total costs and expenses                 709,474,000       91.9         686,771,000       90.2
                                               ---------------     ------     ---------------     ------
     Operating Income                               62,390,000        8.1          74,450,000        9.8
                                               ---------------     ------     ---------------     ------
     Interest income                                (1,602,000)      (0.2)           (591,000)      (0.1)
     Interest expense                               15,915,000        2.1          15,000,000        2.0
                                               ---------------     ------     ---------------     ------
     Income before Income Taxes                     48,077,000        6.2          60,041,000        7.9
     Provision for Income Taxes                     19,231,000        2.5          24,016,000        3.2
                                               ---------------     ------     ---------------     ------
          Net Income                              $ 28,846,000        3.7        $ 36,025,000        4.7
                                               ===============     ======     ===============     ======
Basic Earnings per Share                                 $0.69                          $0.85
                                               ===============                ===============
Diluted Earnings per Share                               $0.69                          $0.85
                                               ===============                ===============
Average Common Shares Outstanding                   41,866,000                     42,264,000
                                               ===============                ===============
Diluted Common Shares Outstanding                   41,999,000                     42,466,000
                                               ===============                ===============
Dividends Declared Per Share                             $0.33                          $0.32
                                               ===============                ===============
</TABLE>

The accompanying notes are an integral part of this statement.



<PAGE>   3



                         Wallace Computer Services, Inc.                  Page 3
                                    FORM 10-Q
                   For Quarterly Period Ended January 31, 2000

                          Part I Financial Information
                       ----------------------------------

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

         The information furnished herein reflects all adjustments which are, in
         the opinion of the management, necessary to a fair statement of the
         results of operations and financial position for the three months ended
         January 31, 2000, subject to year-end audit by independent public
         accountants. These adjustments are of a normal, recurring nature.

                             Wallace Computer Services, Inc. and Subsidiaries
                                 Consolidated Income Statement (Unaudited)
<TABLE>
<CAPTION>

                                                               For the Three Months Ended
                                                                       January 31
                                        -----------------------------------------------------------------
                                                                     %                              %
                                                     2000          Sales            1999          Sales
                                        -----------------------------------------------------------------
<S>                                               <C>               <C>          <C>               <C>
Net Sales                                         $384,248,000      100.0        $376,306,000      100.0

Cost and Expenses
     Cost of goods sold (Note 1)                   271,915,000       70.8         258,128,000       68.6
     Selling and administrative expenses            67,710,000       17.6          60,134,000       16.0
     Provision for depreciation and
          amortization                              19,736,000        5.1          19,249,000        5.1
                                               ---------------     ------     ---------------     ------
          Total costs and expenses                 359,361,000       93.5         337,511,000       89.7
                                               ---------------     ------     ---------------     ------
     Operating Income                               24,887,000        6.5          38,795,000       10.3
                                               ---------------     ------     ---------------     ------
     Interest income                                  (661,000)      (0.2)           (290,000)      (0.1)
     Interest expense                                8,435,000        2.2           7,426,000        2.0
                                               ---------------     ------     ---------------     ------
     Income before Income Taxes                     17,113,000        4.5          31,659,000        8.4
     Provision for Income Taxes                      6,845,000        1.8          12,664,000        3.4
                                               ---------------     ------     ---------------     ------
          Net Income                              $ 10,268,000        2.7        $ 18,995,000        5.0
                                               ===============     ======     ===============     ======
Basic Earnings per Share                                 $0.25                          $0.45
                                                          ====                           ====
Diluted Earnings per Share                               $0.25                          $0.45
                                                          ====                           ====
Average Common Shares Outstanding                   41,377,000                     41,782,000
                                               ===============                ===============
Diluted Common Shares Outstanding                   41,455,000                     42,059,000
                                               ===============                ===============
Dividends Declared Per Share                            $0.165                          $0.16
                                                        ======                         ======
</TABLE>


The accompanying notes are an integral part of this statement.



<PAGE>   4


             Wallace Computer Services, Inc. and Subsidiaries            Page 4
                           Consolidated Balance Sheet
<TABLE>
<CAPTION>

                                                             January 31, 2000         July 31, 1999
                                                                 (Unaudited)            (Audited)
Assets                                                       -----------------       ---------------
------
<S>                                                         <C>                   <C>
Current Assets
     Cash and cash equivalents                                 $            0        $    8,033,000
     Accounts receivable                                          302,287,000           297,677,000
     Less-allowance for doubtful accounts                           5,419,000             5,582,000
                                                               --------------        --------------
         Net receivables                                          296,868,000           292,095,000
     Inventories (Note 1)                                         116,557,000           107,540,000
     Prepaid taxes                                                 33,472,000            37,422,000
     Advances and prepaid expenses                                  5,328,000             3,284,000
                                                               --------------        --------------
         Total current assets                                     452,225,000           448,374,000
                                                               --------------        --------------
Property, plant and equipment, at cost                            880,518,000           846,898,000
Less-reserves for depreciation and amortization                   439,593,000           409,891,000
                                                               --------------        --------------
     Net property, plant and equipment                            440,925,000           437,007,000
                                                               --------------        --------------
Intangible assets arising from acquisitions                       310,768,000           306,117,000
Cash surrender value of life insurance                             60,560,000            58,796,000
Systems development costs                                          53,764,000            43,337,000
Other assets                                                        4,045,000             4,028,000
                                                               --------------        --------------
     Total assets                                              $1,322,287,000        $1,297,659,000
                                                               ==============        ==============
Liabilities and Stockholders' Equity
Current Liabilities
     Current portion long-term debt                            $    2,635,000        $    2,290,000
     Short-term notes payable                                      43,586,000            21,222,000
     Accounts payable                                              79,565,000            85,577,000
     Accrued salaries, wages, profit sharing and other             74,731,000            82,776,000
                                                               --------------        --------------
           Total current liabilities                              200,517,000           191,865,000
                                                               --------------        --------------
Long-term debt                                                    448,759,000           416,653,000
Deferred income taxes                                              63,855,000            64,438,000
Deferred compensation and retirement benefits                      32,658,000            31,992,000
Other long-term liabilities                                         8,396,000             9,144,000
Stockholders' equity
     Common stock (Note 2)- issued shares of
         45,764,054 at January 31, 2000 and July 31, 1999          45,764,000            45,764,000
     Additional capital                                            37,737,000            37,528,000
     Deferred compensation                                          4,771,000             3,883,000
     Retained earnings                                            590,517,000           581,392,000
     Treasury stock  (at cost)- 5,263,462 shares at
         January 31, 2000 and 3,546,243 shares at
         July 31, 1999                                           (110,687,000)          (85,000,000)
                                                               --------------        --------------
     Total stockholders' equity                                   568,102,000           583,567,000
                                                               --------------        --------------
Total liabilities and stockholders' equity                     $1,322,287,000        $1,297,659,000
                                                               ==============        ==============
</TABLE>

The accompanying notes are an integral part of this statement.

<PAGE>   5


             Wallace Computer Services, Inc. and Subsidiaries            Page 5
                Consolidated Statement of Cash Flows (Unaudited)
<TABLE>
<CAPTION>

                                                               For the Six Months Ended
                                                                     January 31
                                                           ----------------------------
                                                               2000            1999
Cash Flows from Operating Activities:                      ------------    ------------
<S>                                                        <C>             <C>
     Net income from operations                            $ 28,846,000    $ 36,025,000
     Adjustments to reconcile net income to net
       cash provided by operating activities:
         Depreciation and amortization                       39,322,000      37,985,000
         Deferred taxes                                        (168,000)     (5,550,000)
         Gain on disposal of property                          (326,000)       (556,000)
     Changes in assets and liabilities
         Accounts receivable                                 (2,861,000)    (24,047,000)
         Inventories                                         (8,730,000)      4,753,000
         Advances and prepaid expenses                       (1,985,000)       (328,000)
         Prepaid taxes                                        3,950,000        (288,000)
         Other assets                                       (15,745,000)    (21,431,000)
         Accounts payable and other liabilities             (15,320,000)    (10,412,000)
         Accrued income taxes                                  (750,000)      9,328,000
         Deferred compensation and retirement benefits          666,000         914,000
                                                           ------------    ------------
     Net cash provided by operating activities               26,899,000      26,393,000
                                                           ------------    ------------
Cash Flows from Investing Activities:
     Capital expenditures                                   (34,305,000)    (26,359,000)
     Proceeds from disposal of property                       2,457,000       5,226,000
     Net construction funds held by trustee                           0       1,280,000
     Other capital investments-acquisitions                  (9,496,000)              0
                                                           ------------    ------------
     Net cash used in investing activities                  (41,344,000)    (19,853,000)
                                                           ------------    ------------
Cash Flows from Financing Activities:
     Treasury stock transactions                            (30,872,000)    (21,837,000)
     Cash dividends paid                                    (13,699,000)    (13,372,000)
     Net proceeds from short-term debt                       21,864,000       9,748,000
     Retirement of long-term debt                           (10,432,000)    (38,580,000)
     Proceeds from issuance of long-term debt                39,551,000      54,000,000
                                                           ------------    ------------
     Net cash provided by/(used in) financing activities      6,412,000     (10,041,000)
                                                           ------------    ------------
Net changes in cash and cash equivalents                     (8,033,000)     (3,501,000)
Cash and cash equivalents at beginning of year                8,033,000       3,501,000
                                                           ------------    ------------
Cash and cash equivalents at January 31                    $          0    $          0
                                                           ============    ============
Supplemental Disclosure:
     Interest paid (net of interest capitalized)           $ 11,911,000    $ 10,557,000
     Income taxes paid (net of refunds received)             18,397,000      15,815,000
</TABLE>



The accompanying notes are an integral part of this statement.


<PAGE>   6


                  Wallace Computer Services, Inc. and Subsidiaries        Page 6
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)

Note 1 - Inventories

         Inventories at January 31, 2000, and July 31, 1999, were as follows:

                                         January 31, 2000      July 31, 1999
                                         ----------------      --------------
                  Raw materials               $12,936,000        $18,043,000
                  Work in process              18,468,000         16,948,000
                  Finished products            85,153,000         72,549,000
                                         ----------------      --------------
                                             $116,557,000       $107,540,000
                                         ================      ==============

         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, 2000, options to purchase 2,472,090 shares of common
         stock were outstanding and 3,437,088 shares of common stock were
         available for future grants under the Company's Stock Incentive and
         Employee Stock Purchase Plans.

         The Company has authorized 100,000,000 shares of common stock and
         issued 45,764,054 as of January 31, 2000. Of these shares, 5,263,462
         were held in treasury as of January 31, 2000. The number of shares held
         in treasury at July 31, 1999 was 3,546,243.


Note 3 - Segment Reporting

         The Company adopted SFAS No. 131 for fiscal year-ended 1999. The
         Company operates in two business segments. Each segment offers
         distinctive products and services and are managed separately because of
         their unique production, distribution, and marketing requirements. The
         Company's two reportable segments are Forms and Labels, and Integrated
         Graphics.

         The principal products and services supplied by the Forms and Labels
         Segment include the design, manufacture and sales of both paper based
         and electronic business forms, the manufacture of both electronic data
         processing (EDP) labels and prime labels, and the manufacture and
         distribution of a standard line of office products. The principal
         products and services supplied by the Integrated Graphics Segment
         include the design and manufacture of high-color, high quality
         marketing and promotional materials, and the manufacture of direct
         response printing materials.



<PAGE>   7


                Wallace Computer Services, Inc. and Subsidiaries          Page 7
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)

Note 3 - Segment Reporting (continued)

         The Company's accounting policies for the segments are the same as
         those described in the Summary of Significant Accounting Policies in
         the Company's 1999 Annual Report. Management evaluates segment
         performance based on segment profit or loss before interest and income
         taxes. Net interest expense and income taxes are not allocated to
         segments. Transfers between segments, which are not significant, are
         accounted for at standard cost.

         Summarized segment data and a reconciliation to the consolidated totals
         for the six months ended January 31, 2000, and January 31, 1999 and
         three months ended January 31, 2000, and January 31, 1999 as follows:


Six Months Ended January 31, 2000         External    Income before
(Amounts in Thousands)                       Sales    Income Taxes
-------------------------------------------------------------------
Forms and Labels Segment                   $395,356   $ 46,199
Integrated Graphics Segment                 376,508     16,191
-------------------------------------------------------------------
Segment Total                               771,864     62,390
-------------------------------------------------------------------
Net Interest Expense                              0    (14,313)
-------------------------------------------------------------------
Consolidated                               $771,864   $ 48,077
===================================================================


Six Months Ended January 31, 1999         External    Income before
(Amounts in Thousands)                       Sales    Income Taxes
-------------------------------------------------------------------
Forms and Labels Segment                   $392,914   $ 54,640
Integrated Graphics Segment                 368,307     19,810
-------------------------------------------------------------------
Segment Total                               761,221     74,450
-------------------------------------------------------------------
Net Interest Expense                              0    (14,409)
-------------------------------------------------------------------
Consolidated                               $761,221   $ 60,041
===================================================================


Three Months Ended January 31, 2000       External    Income before
(Amounts in Thousands)                       Sales    Income Taxes
-------------------------------------------------------------------
Forms and Labels Segment                   $193,691   $ 20,796
Integrated Graphics Segment                 190,557      4,091
-------------------------------------------------------------------
Segment Total                               384,248     24,887
-------------------------------------------------------------------
Net Interest Expense                              0     (7,774)
-------------------------------------------------------------------
Consolidated                               $384,248   $ 17,113
===================================================================




<PAGE>   8


              Wallace Computer Services, Inc. and Subsidiaries            Page 8
                 Notes to Consolidated Financial Statements
                              January 31, 2000
                                 (Unaudited)

Note 3 - Segment Reporting (continued)

Three Months Ended January 31, 1999       External    Income before
(Amounts in Thousands)                       Sales     Income Taxes
-------------------------------------------------------------------
Forms and Labels Segment                   $193,624        $ 30,037
Integrated Graphics Segment                 182,682           8,758
-------------------------------------------------------------------
Segment Total                               376,306          38,795
-------------------------------------------------------------------
Net Interest Expense                              0          (7,136)
-------------------------------------------------------------------
Consolidated                               $376,306        $ 31,659
===================================================================

There are no material changes in Segment Assets from Fiscal Year-End 1999.

Note 4 - Accounting for the Costs of Computer Software Developed or Obtained for
         Internal Use

         In fiscal 2000, the Company adopted Statement of Position (SOP) 98-1,
         "Accounting for the Costs of Computer Software Developed or Obtained
         for Internal Use". The statement requires that certain costs, such as
         preliminary project costs and training, related to internally developed
         software must be expensed as incurred. Implementation of this standard
         has not affected the Company's financial condition or results of
         operations.

Note 5 - Reporting on the Costs of Start-up Activities

         In April 1998, the American Institute of Certified Public Accountants
         issued SOP 98-5, "Reporting on the Costs of Start-up Activities", which
         requires costs of start-up activities and organization costs to be
         expensed as incurred. The Company adopted this standard in the first
         quarter of fiscal 2000. Implementation of this standard has not
         affected the Company's financial condition or results of operations.

Note 6 - Accounting for Derivative Instruments and Hedging Activities

         In June 1998, the Financial Accounting Standards Board issued SFAS No.
         133, "Accounting for Derivative Instruments and Hedging Activities".
         This standard requires that an entity recognize derivatives as either
         assets or liabilities on its balance sheet and measure those
         instruments at fair value. As a result of SFAS No. 137, "Accounting for
         Derivative Instruments and Hedging Activities - Deferral of the
         Effective Date of SFAS No. 133", the Company will adopt this standard
         in the first quarter of fiscal 2001. Based on current circumstances,
         the Company does not believe that application of SFAS No. 133 will have
         a material effect on the Company's financial condition or results of
         operations.

Note 7 - Subsequent Events - Restructuring and Other

         On February 29, 2000, the Company announced a plan to restructure its
         operations to increase long-term profitability. In conjunction with
         this program four manufacturing facilities will be closed,
         approximately 300 employees will be eliminated and certain
         underutilized and abandoned equipment and software will be written off.
         The Company estimates the total cost of the program will be in the
         range of $35 million to $45 million with the majority of costs being
         incurred in the third quarter of fiscal 2000. No charges were incurred
         related to this restructuring in the second quarter of fiscal 2000.

<PAGE>   9

                Wallace Computer Services, Inc. and Subsidiaries         Page 9
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)


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

         For the three-month period ended January 31, 2000, net sales increased
         2.1% to $384.2 million. Adjusting for acquisitions and divestitures,
         net sales were up 4.2% over the same quarter a year ago. The Company
         estimates unit growth for the quarter was flat, while increasing paper
         prices had the effect of increasing sales by approximately 4%. For the
         six-month period ended January 31, 2000, net sales increased 1.4% to
         $771.9 million. Adjusting for acquisitions and divestitures, net sales
         were up 3.6% over the same period a year ago. The estimated unit growth
         for the six-month period was approximately 1%.

         Roughly one third of sales are sold to customers under a written
         contract with the Company, which is consistent with the second quarter
         a year ago. Contract sales provide the Company a stable sales base
         which leads to an increased, more consistent asset utilization of its
         facilities. A significant portion of contract sales are sales to
         customers managed by the W.I.N. system.

         The Company is also hiring experienced sales representatives to
         continue to capitalize on local transactional business. The combination
         of higher transactional sales and increased contract sales is important
         in providing stability to the Company's profitability and utilization
         rates.

         Net income for the second quarter decreased 45.9% to $10.3 million or
         25 cents per share (both basic and diluted), down from $19.0 million or
         45 cents per share (both basic and diluted) in the same quarter a year
         ago. Net income for the six-month period ending January 31, 2000
         decreased 19.9% to $28.8 million or 69 cents per share (both basic and
         diluted), down from $36.0 million or 85 cents per share (both basic and
         diluted).

         Cost of sales for the quarter was 70.8% of sales for the quarter as
         compared to 68.6% in the second quarter of last year. The second
         quarter includes a LIFO charge of $1,119,000 or 1.6 cents per share
         versus a LIFO credit of $592,000 or 0.9 cents per share in the second
         quarter of last year. Cost of sales for the six-month period ended
         January 31, 2000 was 69.5% of sales as compared to 69.0% in the same
         period a year ago. Total LIFO charges in the first half of fiscal year
         2000 were $1,690,000 or 2.4 cents per share versus LIFO credits of
         $592,000 or 0.9 cents per share in the same period a year ago.

         Year over year, the Forms and Labels segment's sales were unchanged at
         $193.7 million, with operating income of $20.8 million and operating
         margin of 10.7%, down from the prior year quarter of $30.0 million and
         operating margin of 15.5%. Adjusting for acquisitions and divestitures,
         net sales in this segment increased 4.1%. For the six-month period
         ended January 31, 2000, segment sales increased slightly from $392.9
         million to $395.4 million, with operating income of $46.2 million and
         operating margin of 11.7%, down from prior year-to-date of $54.6
         million and operating margin of 13.9%. Adjusting for acquisitions and
         divestitures, net sales in this segment increased 5.8% from the same
         period a year ago. The impact of rising paper prices continues to
         adversely affect operating margins in this segment. The majority of the
         LIFO impact discussed in the preceding paragraph relates to this
         segment. In January, the Company started to see the benefits of
         increased sales prices arising from the September 1999 paper price
         increase.




<PAGE>   10
                Wallace Computer Services, Inc. and Subsidiaries        Page 10
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)


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

         Year over year, the Integrated Graphics segment's sales increased from
         $182.7 million to $190.6 million, with operating income of $4.1 million
         and operating margin of 2.1%, down from prior year quarter of $8.8
         million and operating margin of 4.8%. Adjusting for acquisitions and
         divestitures, net sales in this segment increased 4.4%. For the
         six-month period ended January 31, 2000, segment sales increased
         slightly from $368.3 million to $376.5 million, with operating income
         of $16.2 million and operating margin of 4.3%, down from prior
         year-to-date operating income of $19.8 million and operating margin of
         5.4%. Adjusting for the acquisitions and divestitures, net sales in
         this segment increased 1.5% from the same period a year ago. While
         sales did grow over the prior year, they did not grow in line with
         Company expectations. At the same time, manufacturing expenses
         increased in anticipation of higher sales volumes. A portion of the
         restructuring plan announced in February 2000 is aimed at addressing
         the build-up of expenses. The closing of certain under-performing
         plants has been announced and workforce reductions in other areas
         within the segment will take place in the third quarter.

         Selling and administrative expenses for the quarter were 17.6% of sales
         versus 16.0% in the second quarter of last year. For the six months
         ended January 31, the ratio to sales was 17.3% versus 16.2%. Included
         in the current quarter is a one-time charge of $2.3 million for
         executive retirement benefits. The majority of the remaining increase
         continues to relate to the expansion in the Company's information
         technology infrastructure and positioning for business-to-business
         eCommerce. There has also been an increase in year over year expenses
         in the financial division as the Company has added personnel and
         improved financial systems. Selling expense has increased as the
         Company has hired a number of sales representatives, including
         experienced sales representatives, in order to increase the
         transactional business. The restructuring previously mentioned and
         other cost reduction opportunities have been identified which should
         bring these expenses back to historical levels by the fourth fiscal
         quarter of this year.

         Fiscal year 1999 year-to-date total selling & administrative
         expenditures includes $1,053,000 of Year 2000 related programming
         expenses, of which $541,000 relates to the second quarter fiscal year
         1999, compared to no charges in the current fiscal year period to date.
         Total Year 2000 costs are the same as disclosed in the Company's 1999
         Annual Report.

         The Company's effort to address Year 2000 compliance issues included
         (i) evaluating internal computing infrastructure, business applications
         and production systems for Year 2000 compliance, and (ii) replacing or
         remediating systems and applications as necessary to assure such
         compliance. The Company's efforts in these respects were completed as
         of December 31, 1999.

         Substantially all of the Company's Software, firmware, hardware
         (including embedded chips) and equipment used in its printing
         operations, including its pre-press and press equipment and its
         equipment used to finish and deliver its products, were not materially
         affected by a Year 2000 related failure. Also, the Company did not
         experience any Year 2000 related problems caused by key suppliers or
         customers whose systems interact with those of the Company
         (collectively, "Trading Partners'). In addition, the Company did not
         experience any Year 2000 related failure caused by utility companies,
         telecommunication services providers, delivery services, the financial
         services industry and other suppliers outside of its control.

         There are many suppliers of paper, ink and other materials used in
         printing operations. Thus the Company believes that it is not
         materially dependent on any one supplier. The passing of December 31,
         1999 and other high-risk dates (i.e. February 29, 2000) with no major
         negative Year 2000 impact from a



<PAGE>   11
               Wallace Computer Services, Inc. and Subsidiaries         Page 11
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)


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

         U.S. standpoint mitigates the risk of any future major Year 2000
         related disruptions. Nonetheless, the Company relies upon utility
         companies, telecommunication service providers, delivery services, the
         financial services industry and other suppliers outside of its control
         and there can be no assurance that such suppliers or other third
         parties (which the company believes is the most likely "worst case
         scenario") could result in the reduction or suspension of one or more
         of the Company's operations and could have a material adverse effect on
         the Company. Due to the multiple locations of the Company's
         manufacturing facilities and redundancy of capabilities, localized
         interruptions would not be expected to have a material adverse effect
         on the Company. However, in the unlikely case of a systemic failure,
         such as widespread and prolonged telecommunications or electrical
         failures, the primary business risks of the Company would include, but
         not be limited to, loss of customers or orders, increased operating
         costs, inability to obtain supplies and inventory on a timely basis,
         disruptions in product shipments or other business interruptions of a
         material nature, as well as possible legal actions, any of which could
         have a material, adverse effect on the Company's business, results of
         operations and financial condition.

         Depreciation and amortization for the quarter was $19.7 million or 5.1%
         of sales versus $19.2 million or 5.1% of sales in the second quarter a
         year ago. For the six-month period ended January 31, 2000, depreciation
         and amortization was $39.3 million or 5.1% of sales versus $38.0
         million or 5.0% of sales in the same period a year ago. Of the total,
         software amortization and development represents $1.8 million for the
         quarter versus $1.4 million in the second quarter a year ago. For the
         six-month period ended January 31, 2000, software amortization and
         development was $3.3 million versus $2.5 million in the same period a
         year ago. The unamortized balance of all capitalized computer software
         at January 31, 2000 was $53.8 million, a 24.1% increase from fiscal
         year-end, due primarily to ongoing enhancements to the Company's order
         entry, customer service, and inventory management system.

         Interest expense for the quarter was $8.4 million, up from $7.4 million
         last year. For the six months ended January 31, 2000, interest expense
         increased slightly from $15.0 million to $15.9 million. The increase is
         primarily due to slightly increased debt levels along with rising
         interest rates as compared to a year ago. Interest income for the
         quarter increased $371,000 from the second quarter of last year and
         increased $1.0 million for the six-month period to date. Most of the
         increase is related to increased returns on the cash surrender value of
         life insurance policies.

         Some of the financial ratios for the twelve months ended January 31,
         2000 were: Return on Net Sales of 4.5%, Return on Average Assets of
         5.3%, and Return on Equity of 12.3%.

         Liquidity and Capital Resources
         -------------------------------

         Working capital decreased by $4.8 million from July 31, 1999, primarily
         due to the increase in short-term notes payable, the proceeds of which
         were used to fund the stock repurchase program. The current ratio at
         January 31, 2000 was 2.3 to 1.

         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.



<PAGE>   12


               Wallace Computer Services, Inc. and Subsidiaries         Page 12
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)


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

         Of the outstanding debt as of January 31, 2000, $230.0 million has been
         borrowed under a five-year Credit Agreement ("Credit Facility"), which
         provides for a maximum aggregate principal amount available to be
         borrowed of $500 million. The borrowings under the Credit Facility are
         classified as long-term debt as of January 31, 2000 since the Company
         has the intent and ability to carry that debt long-term. The Company
         has $200 million of Senior Term Notes with institutional investors with
         a book value of $183.1 million classified as long-term debt with the
         earliest maturity in 2006.

         In addition to the credit facility and the senior notes, the Company
         has unsecured money market lines of $185.0 million under which $43.6
         million was borrowed at January 31, 2000, and is classified as
         short-term debt.

         Of the remaining long-term debt, $23.5 million is made up of industrial
         revenue bonds at rates ranging from 3.3% to 3.4%. The balance of $14.8
         million relates to acquisitions, $6.5 million to the former owners of
         acquired businesses, with the rest being long-term debt from the
         Graphic acquisition.

         Total debt currently represents 46.6% of total capitalization. The
         maximum amount as authorized by the Board of Directors for total
         borrowings is limited to $600 million.

         Capital expenditures for the first six months of this year totaled
         $34.3 million. For the full fiscal year, capital expenditures are
         expected to be in the range of $62 to $64 million, which are expected
         to be financed through internally generated funds and by borrowing
         against our revolving credit facility.

         Stockholders' equity decreased 2.7% to $568.1 million at January 31,
         2000.


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

         On September 8, 1999, the Board of Directors increased the annualized
         dividend rate to $0.66 per share, a 3.1% increase from fiscal 1999.

         During the first six months of fiscal 2000, the Company purchased
         2,187,000 shares of Wallace common stock. Total repurchases through
         January 31, 2000 against the $100 million authorized by the Board in
         June 1997 have been $87.8 million.







<PAGE>   13


               Wallace Computer Services, Inc. and Subsidiaries         Page 13
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)


                            Part II Other Information
                            --------------------------

Items 1 through 3          None
-----------------

Item 4  Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------

The Company held its annual meeting of stockholders on November 3, 1999. The
results of the three proposals put to a shareholder vote are as follows:

1) Election of directors for the class of directors

                                          For         Withheld
                                       ----------    ----------
Robert J. Cronin                       34,895,928      412,936
Neele E. Stearns Jr                    34,910,844      398,020
Michael T. Riordan                     34,901,582      407,282

2) Approval of an amendment to the 1997 Stock Incentive Plan to increase the
number of shares of Common Stock reserved for issuance thereunder


            For             Against         Abstain
       --------------     ------------     ---------
         30,281,870        4,881,074        145,920

3) Ratification of the appointment of Arthur Andersen LLP as the Company's
independent public accountants for the fiscal year 2000

             For            Against         Abstain
       --------------     ------------     ---------
         35,147,099          97,635          64,130





Item 5    Other Information
---------------------------
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: Certain statements in this filing and elsewhere (such as in other filings
by the Company with the Securities and Exchange Commission, press releases,
presentations by the Company or its management, and oral statements) may
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements, other than statements
of historical facts, that address activities, events, or developments that the
Company expects or anticipates may occur in the future, including such things as
future capital expenditures (including the amount and nature thereof), business
strategy and measures to implement strategy, competitive strengths, goals,
expansion and growth of the


<PAGE>   14


                Wallace Computer Services, Inc. and Subsidiaries        Page 14
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)


                      Part II Other Information (continued)
                      -------------------------------------

Item 5    Other Information (continued)
---------------------------------------
Company's and its subsidiaries' business and operations, plans, references to
future success and other such matters are forward-looking statements. These
forward-looking statements involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance or achievements of
the Company to materially differ from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, among other things, general economic, market or business
conditions, changes in laws or regulations; the opportunities (or lack thereof)
that may be presented to and pursued by the Company and its subsidiaries;
successful integration of acquisitions; labor market conditions; changes in
postal rates and paper prices; the ability of the Company to retain its
customers who generally do not operate under long-term contracts with the
Company; the potential unpredictability of the Company's net sales due to
seasonal and other factors which can lead to fluctuations in quarterly and
annual operating results; the ability of the Company to keep pace with
technological advancements in the industry; the effect of technical advancements
on the demand for the Company's goods and services; and the risk of damage to
the Company's data centers and manufacturing facilities or interruptions in the
Company's telecommunications links.



<PAGE>   15
               Wallace Computer Services, Inc. and Subsidiaries         Page 15
                   Notes to Consolidated Financial Statements
                                January 31, 2000
                                   (Unaudited)




Item 6   Exhibits and Reports on Form 8-K
-----------------------------------------
(a)    Exhibits

  10.1 Wallace Computer Services, Inc. Separation Agreement and General
       Release between the Company and Robert J. Cronin, dated January 18,
       2000, filed herewith.

  10.2 2000 Deferred Compensation/Capital Accumulation Plan of the Registrant
       (form previously filed as Exhibit 10.2 to Registrant's Quarterly
       Report on Form 10-Q for the quarter ended October 31, 1995, and
       incorporated herein by reference to such report).

  10.3 2000 Deferred Compensation/Capital Accumulation Plan for Directors of
       the Registrant (form previously filed as Exhibit 10.3 to Registrant's
       Quarterly Report on Form 10-Q for the quarter ended October 31, 1995,
       and incorporated herein by reference to such report).

  10.4 Wallace Computer Services, Inc. Consulting Agreement between the Company
       and Robert J. Cronin, dated January 18, 2000, filed herewith.

  27.1 Financial Data Schedule

(b)    Reports on Form 8-K

   (1) A report on Form 8-K was filed on January 19, 2000
       announcing the retirement of Robert J. Cronin from the
       position of Chairman of the Board and Chief Executive
       Officer of the Registrant and the appointment of Neele E.
       Stearns as Chairman of the Board and Michael O. Duffield as
       Interim Chief Executive Officer.



<PAGE>   16



                                                                        Page 16

                                 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 16, 2000                         /s/ Michael O. Duffield
   -----------------------------   ------------------------------------------
             Date                              Michael O. Duffield
                                   Acting Chief Executive Officer, President,
                                              and Chief Operating Officer


         March 16, 2000                         /s/ John J. DeCoster
   -----------------------------   ------------------------------------------
             Date                               John J. DeCoster
                                             Vice-President, Controller
                                           (Principal Accounting Officer)