<PAGE>


                                  UNITED STATES
                       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

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002

                   COMMISSION FILE NO. 33-93644 AND 333-51839

                          DAY INTERNATIONAL GROUP, INC.

                             130 West Second Street
                               Dayton, Ohio 45402

                                 (937) 224-4000

State of Incorporation:             Delaware

IRS Employer Identification No.:    31-1436349

Securities Registered Pursuant to Section 12 (b) of the Act:  None

Securities Registered Pursuant to Section 12 (g) of the Act:  None

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. Yes X No

There were 23,298 Common Shares of the Company, $0.01 per share par value,
outstanding as of November 1, 2002.

<PAGE>

                          DAY INTERNATIONAL GROUP, INC.

                                      INDEX

<TABLE>
<CAPTION>

                                                                                      Pages

PART I   FINANCIAL INFORMATION

<S>      <C>                                                                     <C>

Item 1.  Financial Statements:

         Condensed Consolidated Balance Sheets as of September 30, 2002 and
         December 31, 2001                                                                3

         Condensed Consolidated Statements of Operations for the three and nine
         months ended September 30, 2002 and 2001                                         4

         Condensed Consolidated Statements of Cash Flows for the nine months
         ended September 30, 2002 and 2001                                                5

         Notes to Condensed Consolidated Financial Statements                           6 - 17

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of
         Operations                                                                     18 - 22

Item 3.  Quantitative and Qualitative Disclosures About Market Risk                     22 - 23

Item 4.  Controls and Procedures                                                          23

PART II  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K                                                 24

Signature                                                                                 24

Certifications                                                                          25 - 26
</TABLE>

                                       2

<PAGE>

                          PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                 DAY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2002 AND DECEMBER 31, 2001

                                 (IN THOUSANDS)

<TABLE>
<CAPTION>

     ASSETS                                                                    2002          2001
<S>                                                                          <C>           <C>
Cash and cash equivalents                                                    $     728     $     609
Accounts receivable (less allowance for doubtful
  accounts of $2,565 and $1,949)                                                33,451        29,124
Inventories                                                                     35,236        34,276
Other current assets                                                             8,135         9,474
                                                                             ---------     ---------
     Total current assets                                                       77,550        73,483

Property, plant and equipment, net of accumulated depreciation of $36,901
     and $31,054                                                                73,158        72,216
Goodwill, net of accumulated amortization of $19,614                           126,265       125,334
Intangible assets, net of accumulated amortization of $37,867 and $33,127       28,281        32,554
Other assets                                                                    11,968        10,417
                                                                             ---------     ---------
TOTAL ASSETS                                                                 $ 317,222     $ 314,004
                                                                             =========     =========

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accounts payable                                                             $   8,130     $   6,688
Current maturities of long-term debt                                            12,658        12,576
Other current liabilities                                                       23,604        24,185
                                                                             ---------     ---------
     Total current liabilities                                                  44,392        43,449

Long-term and subordinated long-term debt                                      244,894       251,255
Other long-term liabilities                                                     26,695        25,864
Commitments and contingencies
                                                                             ---------     ---------
     Total liabilities                                                         315,981       320,568

Redeemable preferred stock                                                     121,970       109,354

STOCKHOLDERS' EQUITY (DEFICIT):
  Common shares                                                                      1             1
  Contra-equity associated with the assumption of majority shareholder's
     bridge loan                                                               (68,772)      (68,772)
  Retained earnings (deficit)                                                  (48,646)      (41,646)
  Accumulated other comprehensive loss                                          (3,312)       (5,501)
                                                                             ---------     ---------
     Total stockholders' equity (deficit)                                     (120,729)     (115,918)
                                                                             ---------     ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                         $ 317,222     $ 314,004
                                                                             =========     =========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       3
<PAGE>

                 DAY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                            THREE MONTHS                  NINE MONTHS
                                                         2002          2001          2002           2001
<S>                                                    <C>           <C>           <C>           <C>
NET SALES                                              $  66,901     $  61,038     $ 192,121     $ 192,668

COST OF GOODS SOLD                                        42,521        39,890       121,841       124,283
                                                       ---------     ---------     ---------     ---------

GROSS PROFIT                                              24,380        21,148        70,280        68,385

SELLING, GENERAL AND ADMINISTRATIVE                       14,372        13,300        40,750        42,242
RESTRUCTURING COSTS                                                         54           118           673
AMORTIZATION OF INTANGIBLES                                  208         1,115           609         3,332
MANAGEMENT FEES                                              250           250           750           792
                                                       ---------     ---------     ---------     ---------

OPERATING PROFIT                                           9,550         6,429        28,053        21,346

OTHER EXPENSES:
  Interest expense (including amortization of
     deferred financing cost of $587, $576, $1,761
     and $1,728)                                           6,760         7,086        20,233        21,534
  Other (income) expense                                     (63)         (785)         (509)          514
                                                       ---------     ---------     ---------     ---------
                                                           6,697         6,301        19,724        22,048
                                                       ---------     ---------     ---------     ---------

INCOME (LOSS) BEFORE INCOME TAXES                          2,853           128         8,329          (702)

INCOME TAX EXPENSE                                         1,180         1,069         3,329           646
                                                       ---------     ---------     ---------     ---------

INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN
     ACCOUNTING PRINCIPLE                                  1,673          (941)        5,000        (1,348)

CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
     (NET OF TAX EXPENSE OF $394) (Note G)                                               616
                                                       ---------     ---------     ---------     ---------

NET INCOME (LOSS)                                          1,673          (941)        5,616        (1,348)

PREFERRED STOCK DIVIDENDS                                 (4,211)       (3,639)      (12,475)      (10,776)

AMORTIZATION OF PREFERRED STOCK ISSUANCE COSTS               (47)          (47)         (141)         (141)
                                                       ---------     ---------     ---------     ---------

NET LOSS AVAILABLE TO COMMON SHAREHOLDERS
                                                       $  (2,585)    $  (4,627)    $  (7,000)    $ (12,265)
                                                       =========     =========     =========     =========
</TABLE>

         See notes to condensed consolidated financial statements.

                                       4
<PAGE>




                 DAY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                  2002         2001
<S>                                                                             <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                                               $  5,616     $ (1,348)
Adjustments to reconcile net income (loss) to net cash provided by operating
     activities:
  Cumulative effect of change in accounting principle                               (616)
  Depreciation and amortization                                                   10,934       13,331
  Deferred income taxes                                                             (622)      (5,035)
  Foreign currency (gain) loss                                                       (10)         516
  Undistributed earnings of investee                                                (264)
  Non-cash restructuring charge                                                      157
  Change in operating assets and liabilities                                      (2,505)      (1,190)
                                                                                --------     --------
     Net cash provided by operating activities                                    12,690        6,274

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                                              (5,623)      (8,806)
                                                                                --------     --------
     Net cash used in investing activities                                        (5,623)      (8,806)

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on term loan                                                             (9,580)      (1,509)
Net proceeds from revolving credit facility                                        3,150        4,150
                                                                                --------     --------
     Net cash provided by (used in) financing activities                          (6,430)       2,641

EFFECT OF EXCHANGE RATE CHANGES ON CASH                                             (518)        (203)
                                                                                --------     --------

Net increase (decrease) in cash and cash equivalents                                 119          (94)
Cash and cash equivalents at beginning of period                                     609          922
                                                                                --------     --------

Cash and cash equivalents at end of period                                      $    728     $    828
                                                                                --------     --------
NON-CASH TRANSACTIONS:
  Preferred stock dividends                                                     $ 12,475     $ 10,776
                                                                                --------     --------

  Amortization of preferred stock discount                                      $    141     $    141
                                                                                ========     ========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       5
<PAGE>



                          DAY INTERNATIONAL GROUP, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (IN THOUSANDS)

A.       BASIS OF PRESENTATION

The balance sheet as of December 31, 2001, is condensed financial information
derived from the audited balance sheet. The interim financial statements are
unaudited. The financial statements of Day International Group, Inc. (the
"Company") have been prepared in accordance with accounting principles generally
accepted in the United States and, in the opinion of management, reflect all
adjustments (consisting of normal recurring accruals) necessary for a fair
presentation in accordance with generally accepted accounting principles for the
periods presented. The results of operations and cash flows for the interim
periods presented are not necessarily indicative of the results for the full
year. Certain prior year amounts have been reclassified to conform to current
year presentation.

B.       INVENTORIES

Inventories as of September 30, 2002 and December 31, 2001, consist of:

                                                      2002             2001

Finished goods                                       $19,615         $19,094
Work in process                                        5,350           3,932
Raw materials                                         10,271          11,250
                                                     -------         -------
                                                     $35,236         $34,276
                                                     =======         =======

C.       BUSINESS SEGMENTS

The Company produces precision-engineered products, specializing in the design
and customization of consumable image-transfer products for the graphic arts
(printing) industry and consumable fiber handling products for the textile
industry. The Image Transfer segment designs, manufactures and markets
high-quality printing blankets and sleeves, pressroom chemicals and automatic
dampening systems used primarily in the offset and flexographic printing
industries. The Textile Products segment manufactures and markets precision
engineered rubber cots and aprons sold to textile yarn spinners and other
engineered rubber products sold to diverse markets.

Segment performance is evaluated based on operating profit results compared to
the annual operating plan. Intersegment sales and transfers are not material.

The Company manages the two segments as separate strategic business units. They
are managed separately because each business unit requires different
manufacturing processes, technology and marketing strategies.

                                       6
<PAGE>




<TABLE>
<CAPTION>
                                                   THREE MONTHS                 NINE MONTHS
                                                2002            2001         2002         2001
<S>                                           <C>           <C>           <C>           <C>
Third party sales:
  Image Transfer                              $  54,054     $  49,053     $ 156,226     $ 153,446
  Textile Products                               12,847        11,985        35,895        39,222
                                              ---------     ---------     ---------     ---------
     Total                                    $  66,901     $  61,038     $ 192,121     $ 192,668
                                              =========     =========     =========     =========

Segment operating profit:
  Image Transfer                              $   9,039     $   7,646     $  27,670     $  24,392
  Textile Products                                1,986         1,413         4,949         5,403
                                              ---------     ---------     ---------     ---------
     Total                                    $  11,025     $   9,059     $  32,619     $  29,795
                                              =========     =========     =========     =========
</TABLE>

The following is a reconciliation of the segment operating profit reported above
to the amount reported in the consolidated financial statements:

<TABLE>
<CAPTION>
                                                    THREE MONTHS               NINE MONTHS
                                                  2002          2001         2002          2001
<S>                                           <C>           <C>           <C>           <C>
Segment operating profit                      $  11,025     $   9,059     $  32,619     $  29,795
APB #16 depreciation and amortization              (892)       (1,091)       (2,703)       (3,246)
Non-allocated corporate expenses                   (125)         (120)         (386)         (406)
Restructuring costs                                               (54)         (118)         (673)
Amortization of intangibles                        (208)       (1,115)         (609)       (3,332)
Management fees                                    (250)         (250)         (750)         (792)
                                              ---------     ---------     ---------     ---------

     Total operating profit                   $   9,550     $   6,429     $  28,053     $  21,346
                                              =========     =========     =========     =========
</TABLE>

D.       COMPREHENSIVE INCOME (LOSS)

Total comprehensive income (loss) is comprised of net income (loss), net
currency translation gains and losses and net unrealized gains and losses on
cash flow hedges. Total comprehensive income (loss) for the three months ended
September 30, 2002 and 2001 was $1,993 and $(153). Total comprehensive income
(loss) for the nine months ended September 30, 2002 and 2001 was $7,805 and
$(1,441).

E.       CONTINGENCIES

Claims have been made against the Company for the costs of environmental
remedial measures taken or to be taken. Reserves for such liabilities have been
established and no insurance recoveries have been anticipated in the
determination of the reserves. In management's opinion, the aforementioned
claims will be resolved without material adverse effect on the results of
operations, financial position or cash flows of the Company. The Company's
previous parent and its parent, PolyOne, have agreed to indemnify the Company
for certain of the costs associated with these matters.

                                       7
<PAGE>




F.       RESTRUCTURING COSTS

Pre-tax charges of $673 were recorded in the first three quarters of 2001 for
severance and termination costs for relocating the Textile Products operations
from the Asheville, North Carolina, facility to the Greenville, South Carolina,
facility. During the first quarter of 2002, the Company incurred additional
relocation costs of $109, recorded a charge of $157 for write-off of fixed
assets and recorded a reversal of $103 of the reserve for severance costs. As of
September 30, 2002, final severance payments have been paid to 49 associates.

During the fourth quarter of 2001, the Company ceased operations at its Transfer
Media facility in Longwood, Florida. A pre-tax charge of $3,010 was recorded in
2001 for severance costs for 55 associates, write-off of abandoned assets and
costs related to closing the facility. The Company is attempting to sell the
land and building. As of September 30, 2002, final severance payments have been
paid to all associates and the remaining reserve of $45 for severance costs was
reversed in the second quarter of 2002.

A pre-tax charge of $988 was recorded during the fourth quarter of 2001 for
severance costs for 21 associates, costs for relocating the Pressroom Chemicals'
German sales office and the U.S. sales and administrative functions and loss on
the sale of fixed assets. As of September 30, 2002, final severance payments
have been paid to 20 associates.

Below is a summary of the amounts charged against the reserves for severance and
facility shutdown in 2002:

                                                     TEXTILE    IMAGE
                                                    PRODUCTS   TRANSFER

Balance at December 31, 2001                        $   392     $ 1,508
Reversal of reserve                                    (103)
Charges against the reserve for:
     Severance costs                                   (193)       (549)
     Facility shutdown                                             (417)
                                                    -------     -------
Balance at March 31, 2002                                96         542
Reversal of reserve                                                 (45)
Charges against the reserve for:
     Severance costs                                    (46)       (160)
     Facility shutdown                                              (32)
                                                    -------     -------
Balance at June 30, 2002                                 50         305
Charges against the reserve for:
     Severance costs                                    (50)        (80)
     Facility shutdown                                              (21)
                                                    -------     -------
 Balance at September 30, 2002
                                                    $           $   204
                                                    =======     =======

                                       8
<PAGE>



G.       NEW ACCOUNTING PRINCIPLES

In July 2001, the Financial Accounting Standards Board issued SFAS Nos. 141,
"Business Combinations" and 142, "Goodwill and Other Intangible Assets." These
statements will not require amortization of goodwill for periods beginning after
December 15, 2001. Instead an annual review of the recoverability of the
goodwill and intangible assets will be required. These Statements were adopted
as of January 1, 2002. As of January 1, 2002, the Company ceased recording
amortization of goodwill of approximately $3,700 per year and recognized pre-tax
income of $1,010 for the cumulative effect of the change in accounting principle
for the amount of the unamortized deferred credit related to the excess over
cost arising from the TPO acquisition. As of June 30, 2002, the Company has
completed the initial review of the recoverability of goodwill and has
determined that no impairment of goodwill is indicated.

The following is a reconciliation from reported net income (loss) to net income
(loss) adjusted for the amortization of goodwill and the deferred credit related
to an excess over cost:

<TABLE>
<CAPTION>
                                                       THREE MONTHS             NINE MONTHS
                                                       2002       2001        2002       2001
<S>                                                    <C>        <C>         <C>        <C>
Income (loss) before cumulative effect of change in
     accounting principle-as reported                  $ 1,673    $  (941)    $ 5,000    $(1,348)
Amortization of goodwill and deferred credits-net
     of tax benefit                                                   558                  1,666
                                                       -------    -------     -------    -------
Adjusted income (loss) before cumulative effect of
     change in accounting principle                    $ 1,673    $  (383)    $ 5,000    $   318
                                                       =======    =======     =======    =======
</TABLE>

H.       SUPPLEMENTAL CONSOLIDATING INFORMATION

The Company has outstanding $100,000, 11-1/8% Senior Notes and $115,000, 9 1/2%
Senior Subordinated Notes (collectively, the "Notes"). The Company has no assets
or operations other than its wholly-owned investment in Day International, Inc.
("Day International" or "Guarantor"). Day International has provided a full and
unconditional guarantee of the Notes. The wholly-owned foreign subsidiaries of
Day International are not guarantors with respect to the Notes and do not have
any credit arrangements senior to the Notes. The only intercompany eliminations
are the normal intercompany eliminations with regard to intercompany sales and
the Company's investment in the wholly-owned non-guarantor subsidiaries.
Intercompany notes are in place, which effectively transfers the interest
expense from the Company to Day International. The following are the
supplemental combining condensed balance sheets as of September 30, 2002 and
December 31, 2001, and the supplemental combining condensed statements of
operations and cash flows for the three and nine months ended September 30, 2002
and 2001, with the investments in the subsidiaries accounted for using the
equity method. Separate complete financial statements of the Guarantor are not
presented because management has determined that they are not material to the
investors.

                                       9
<PAGE>



                          DAY INTERNATIONAL GROUP, INC.
                 SUPPLEMENTAL COMBINING CONDENSED BALANCE SHEET
                               SEPTEMBER 30, 2002

<TABLE>
<CAPTION>
                                                     DAY
                                            DAY     INTER-
                                          INTER-   NATIONAL        NON-
                                        NATIONAL      INC.        GUARANTOR
                                       GROUP, INC.(GUARANTOR)  SUBSIDIARIES  ELIMINATIONS  CONSOLIDATED
<S>                                   <C>          <C>           <C>           <C>           <C>
ASSETS
Cash and cash equivalents             $     812    $    (812)    $     728    $            $     728
Accounts receivable-net                               13,073        20,378                    33,451
Inventories                                           20,231        15,005                    35,236
Other current assets                                   5,744         2,391                     8,135
                                      ---------    ---------     ---------    ---------     ---------

     TOTAL CURRENT ASSETS                   812       38,236        38,502                    77,550
Intercompany                            256,373       (3,078)        3,078     (256,373)
Property, plant and equipment, net                    47,974        25,184                    73,158
Investment in subsidiaries              (43,494)      32,688       (4,918)       15,724
Intangible and other assets                          150,751        15,763                   166,514
                                      ---------    ---------     ---------     --------     ---------

     TOTAL ASSETS                     $ 213,691     $ 266,571     $ 77,609    $(240,649)    $ 317,222
                                      =========     =========     ========    =========     =========

LIABILITIES AND STOCKHOLDERS'
     EQUITY (DEFICIT)
Accounts payable                      $            $   3,414     $   4,716     $            $   8,130
Current maturities of long-term
     debt                                12,511                        147                     12,658
Other current liabilities                 4,330        7,366        11,908                     23,604
                                      =--------     ---------     --------    ---------     ---------

     TOTAL CURRENT LIABILITIES           16,841       10,780        16,771                    44,392
Intercompany                            (48,252)     312,175         1,961     (265,884)
Long-term and subordinated
     long-term debt                     243,861                      1,033                    244,894
Other long-term liabilities                           18,317         8,378                     26,695
Redeemable preferred stock              121,970                                               121,970
Total stockholders' equity
     (deficit)                         (120,729)     (74,701)       49,466       25,235      (120,729)
                                      ---------    ---------     ---------      --------     ---------

     TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY (DEFICIT)   $ 213,691    $ 266,571     $  77,609    $(240,649)    $ 317,222
                                      =========    =========     =========    =========     =========
</TABLE>

                                       10
<PAGE>
                          DAY INTERNATIONAL GROUP, INC.
                 SUPPLEMENTAL COMBINING CONDENSED BALANCE SHEET

                                DECEMBER 31, 2001

<TABLE>
<CAPTION>

                                                               DAY           DAY
                                                               INTER-        INTER-         NON-
                                                              NATIONAL     NATIONAL INC.  GUARANTOR
                                                              GROUP, INC.  (GUARANTOR)    SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
<S>                                                           <C>           <C>           <C>           <C>           <C>
ASSETS
Cash and cash equivalents                                     $     702     $    (702)    $     609     $            $     609
Accounts receivable - net                                                      12,029        17,095                     29,124
Inventories                                                                    20,687        13,589                     34,276
Other assets                                                                    5,322         4,152                      9,474
                                                              ---------     ---------     ---------     ---------    ---------
      TOTAL CURRENT ASSETS                                          702        37,336        35,445                     73,483
Intercompany                                                    262,642       (13,228)       13,228      (262,642)
Property, plant and equipment - net                                            48,940        23,276                     72,216
Investment in subsidiaries                                      (49,142)       31,138        (5,719)       23,723
Intangible and other assets                                                   155,033        13,272                    168,305
                                                              ---------     ---------     ---------     ---------    ---------
      TOTAL ASSETS                                            $ 214,202     $ 259,219     $  79,502     $(238,919)   $ 314,004
                                                              =========     =========     =========     =========    =========

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accounts payable                                              $             $   3,373     $   3,315     $            $   6,688
Current maturities of long-term debt                             12,511                          65                     12,576
Accrued associate related costs and other expenses                4,512         7,606        12,067                     24,185
                                                              ---------     ---------     ---------     ---------    ---------

      TOTAL CURRENT LIABILITIES                                  17,023        10,979        15,447                     43,449
Intercompany                                                    (46,388)      307,813        14,862      (276,287)
Long-term and subordinated long-term debt                       250,131                       1,124                    251,255
Other long-term liabilities                                                    17,837         8,027                     25,864
Redeemable preferred stock                                      109,354                                                109,354
Total stockholders' equity (deficit)                           (115,918)      (77,410)       40,042        37,368     (115,918)
                                                              ---------     ---------     ---------     ---------    ---------
      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)    $ 214,202     $ 259,219     $  79,502     $(238,919)   $ 314,004
                                                              =========     =========     =========     =========    =========
</TABLE>

                                       11
<PAGE>

                          DAY INTERNATIONAL GROUP, INC.
            SUPPLEMENTAL COMBINING CONDENSED STATEMENT OF OPERATIONS
                      THREE MONTHS ENDED SEPTEMBER 30, 2002

<TABLE>
<CAPTION>

                                                                DAY
                                                DAY           INTER-
                                                Inter-       NATIONAL       NON-
                                                national       INC.       GUARANTOR
                                                Group, Inc. (GUARANTOR)  SUBSIDIARIES ELIMINATIONS CONSOLIDATED

<S>                                             <C>          <C>          <C>          <C>          <C>
Net sales                                       $            $ 38,462     $ 28,439     $            $ 66,901
Cost of goods sold                                             24,348       18,173                    42,521
                                                --------     --------     --------     --------     --------

      Gross profit                                             14,114       10,266                    24,380
Selling, general and administrative                    1        8,364        6,007                    14,372
Amortization of intangibles                                       208                                    208
Management fees                                                   250                                    250
                                                --------     --------     --------     --------     --------
      Operating profit                                (1)       5,292        4,259                     9,550
Other expenses (income):
  Equity in (earnings) of subsidiaries            (1,673)      (2,379)                    4,052
  Interest expense                                              6,699           61                     6,760
  Other (income) expense                              (1)        (281)         219                       (63)
                                                --------     --------     --------     --------     --------
      Income before income taxes                   1,673        1,253        3,979       (4,052)       2,853
Income tax expense (benefit)                                     (420)       1,600                     1,180
                                                --------     --------     --------     --------     --------
      Net income                                $  1,673     $  1,673     $  2,379     $ (4,052)    $  1,673
                                                ========     =========    ========     ========     ========
</TABLE>

                                       12

<PAGE>

                          DAY INTERNATIONAL GROUP, INC.
            SUPPLEMENTAL COMBINING CONDENSED STATEMENT OF OPERATIONS
                      THREE MONTHS ENDED SEPTEMBER 30, 2001


<TABLE>
<CAPTION>
                                                                DAY
                                                DAY           INTER-
                                                Inter-       NATIONAL       NON-
                                                national       INC.       GUARANTOR
                                                Group, Inc. (GUARANTOR)  SUBSIDIARIES ELIMINATIONS CONSOLIDATED
<S>                                            <C>          <C>          <C>          <C>          <C>
Net sales                                      $            $ 37,224     $ 23,814     $            $ 61,038
Cost of goods sold                                            24,183       15,707                    39,890
                                               --------     --------     --------     --------     --------
      Gross profit                                            13,041        8,107                    21,148
Selling, general and administrative                   5        8,330        4,965                    13,300
Restructuring costs                                               54                                     54
Amortization of intangibles                                    1,040           75                     1,115
Management fees                                                  250                                    250
                                               --------     --------     --------     --------     --------
      Operating profit                               (5)       3,367        3,067                     6,429
Other (income) expense:
  Equity in (earnings) loss of subsidiaries         939       (1,345)                      406
  Interest expense                                             7,060           26                     7,086
  Other (income) expense                             (1)        (929)         145                      (785)
                                               --------     --------     --------     --------     --------
      Income (loss) before income taxes            (943)      (1,419)       2,896         (406)         128
Income taxes (benefit)                               (2)        (480)       1,551                     1,069
                                               --------     --------     --------     --------     --------
      Net income (loss)                        $   (941)    $   (939)    $  1,345     $   (406)    $   (941)
                                               ========     ========     ========     ========     ========
</TABLE>


                                       13


<PAGE>
                         DAY INTERNATIONAL GROUP, INC.
            SUPPLEMENTAL COMBINING CONDENSED STATEMENT OF OPERATIONS
                      NINE MONTHS ENDED SEPTEMBER 30, 2002

<TABLE>
<CAPTION>
                                                            DAY
                                                DAY        INTER-
                                              INTER-      NATIONAL       NON-
                                             NATIONAL        INC.     GUARANTOR
                                            GROUP, INC.  (GUARANTOR) SUBSIDIARIES ELIMINATIONS CONSOLIDATED

<S>                                         <C>          <C>          <C>         <C>           <C>
Net sales                                   $             $ 111,596     $80,525     $            $ 192,121
Cost of goods sold                                           70,798      51,043                    121,841
                                            ---------     ---------      ------     ---------     --------

        Gross profit                                         40,798      29,482                     70,280
Selling, general and administrative                55        24,442      16,253                     40,750
Restructuring costs                                             118                                    118
Amortization of intangibles                                     609                                    609
Management fees                                                 750                                    750
                                            ---------     ---------      ------     ---------     --------

        Operating profit                          (55)       14,879      13,229                     28,053
Other expenses (income):
  Equity in (earnings) loss of subsidiaries    (5,648)       (8,344)                   13,992
  Interest expense                                           20,171          62                     20,233
  Other (income) expense                           (2)       (1,534)      1,027                       (509)
                                            ---------     ---------      ------     ---------     --------

        Income before income taxes              5,595         4,586      12,140       (13,992)       8,329
Income tax expense (benefit)                      (21)       (1,062)      4,412                      3,329
                                            ---------     ---------      ------     ---------     --------
        Income before cumulative effect
         of change in accounting
         principles                             5,616         5,648       7,728       (13,992)       5,000
Cumulative effect of change in
accounting principles                                                       616                        616
                                            ---------     ---------      ------     ---------     --------
        Net income                          $   5,616     $   5,648      $8,344     $ (13,992)    $  5,616
                                            =========     =========      ======     =========     ========

</TABLE>
                                       14
<PAGE>

                         DAY INTERNATIONAL GROUP, INC.
            SUPPLEMENTAL COMBINING CONDENSED STATEMENT OF OPERATIONS
                      NINE MONTHS ENDED SEPTEMBER 30, 2001

<TABLE>
<CAPTION>
                                                             DAY
                                               DAY          INTER-
                                              INTER-       NATIONAL        NON
                                             NATIONAL         INC.      GUARANTOR
                                            GROUP, INC.   (GUARANTOR)  SUBSIDIARIES ELIMINATIONS CONSOLIDATED

<S>                                         <C>           <C>          <C>        <C>             <C>
Net sales                                   $             $114,995       $77,673    $             $192,668
Cost of goods sold                                          74,682        49,601                   124,283
                                            ---------     ---------      ------     ---------     --------

        Gross profit                                        40,313        28,072                    68,385
Selling, general and administrative                48       26,835        15,359                    42,242
Restructuring costs                                            673                                     673
Amortization of intangibles                                  3,128           204                     3,332
Management fees                                                792                                     792
                                            ---------     ---------      ------     ---------     --------
        Operating profit                          (48)       8,885        12,509                    21,346
Other (income) expense:
  Equity in (earnings) loss of subsidiaries     1,323       (6,664)                     5,341
  Interest expense                                          21,455            79                    21,534
  Other (income) expense                           (6)        (429)          949                       514
                                            ---------     ---------      ------     ---------     --------
        Income (loss) before income taxes      (1,365)      (5,477)       11,481       (5,341)        (702)
Income taxes (benefit)                            (17)      (4,154)        4,817                       646
                                            ---------     ---------      ------     ---------     --------
        Net income (loss)                   $  (1,348)    $ (1,323)      $ 6,664    $  (5,341) $    (1,348)
                                            =========     ========       =======    =========  ===========
</TABLE>

                                       15
<PAGE>

                         DAY INTERNATIONAL GROUP, INC.
            SUPPLEMENTAL COMBINING CONDENSED STATEMENT OF CASH FLOWS
                      NINE MONTHS ENDED SEPTEMBER 30, 2002

<TABLE>
<CAPTION>
                                                           DAY
                                               DAY         INTER-
                                              INTER-      NATIONAL        NON-
                                             NATIONAL       INC.       GUARANTOR
                                            GROUP, INC.  (GUARANTOR)  SUBSIDIARIES ELIMINATIONS CONSOLIDATED
<S>                                         <C>           <C>            <C>       <C>            <C>
Cash Flows From Operating Activities:
Net income                                  $   5,616     $   5,648      $ 8,344   $  (13,992)    $  5,616
  Adjustments to reconcile net
    income to net cash provided by
    (used in) operating activities:
  Cumulative effect of change in accounting
   principles                                                               (616)                     (616)
  Depreciation and amortization                               8,934        2,000                    10,934
  Equity in (earnings) loss of subsidiaries    (5,648)       (8,344)                   13,992
  Deferred income taxes and other                              (588)         (34)                     (622)
  Foreign currency (gain) loss                                 (160)         150                       (10)
  Undistributed earnings of investee                           (264)                                  (264)
  Non-cash restructuring charge                                 157                                    157
  Changes in operating assets and liabilities    (183)        1,531       (3,853)                   (2,505)
                                            ---------     ---------     --------    ---------     --------
    Net cash provided by (used in)
     operating activities                        (215)        6,914        5,991                    12,690

Cash Flows From Investing Activities:
Capital expenditures                                         (3,375)      (2,248)                  (5,623)
                                            ---------     ---------     --------    ---------     --------
  Net cash used in investing activities                      (3,375)      (2,248)                  (5,623)

Cash Flows From Financing Activities:
Payments on term loan                          (9,450)                      (130)                   (9,580)
Net borrowings on credit facilities             3,150                                                3,150
                                            ---------     ---------     --------    ---------     --------
  Net cash used in financing activities        (6,300)                      (130)                   (6,430)

Intercompany transfers and dividends            6,625        (3,649)      (2,976)
Effects of exchange rates on cash                                           (518)                     (518)
                                            ---------     ---------     --------    ---------     --------

Net increase (decrease) in cash and
 cash equivalents                                 110          (110)         119                       119
Cash and cash equivalents at beginning
  of period                                       702          (702)         609                       609
                                            ---------     ---------      ------    ----------     --------
Cash and cash equivalents at end of period  $     812     $    (812)   $     728   $              $    728
                                            =========     =========    =========   ==========     ========
</TABLE>

                                       16

<PAGE>

                         DAY INTERNATIONAL GROUP, INC.
            SUPPLEMENTAL COMBINING CONDENSED STATEMENT OF CASH FLOWS
                      NINE MONTHS ENDED SEPTEMBER 30, 2001

<TABLE>
<CAPTION>
                                                             DAY
                                               DAY         INTER-
                                              INTER-       NATIONAL       NON
                                             NATIONAL       INC.       GUARANTOR
                                            GROUP, INC.  (GUARANTOR)  SUBSIDIARIES ELIMINATIONS CONSOLIDATED
<S>                                         <C>           <C>            <C>       <C>            <C>
Cash Flows From Operating Activities:
Net income (loss)                           $  (1,348)    $  (1,323)     $6,664    $   (5,341)    $ (1,348)
  Adjustments to reconcile net
    income (loss) to net cash provided by
    operating activities:
  Depreciation and amortization                              11,297       2,034                     13,331
  Equity in (earnings) loss of subsidiaries     1,323        (6,664)                    5,341
  Deferred income taxes and other                            (4,817)       (218)                    (5,035)
  Foreign currency loss                                         120         396                        516
  Changes in operating assets and liabilities     484         1,709      (3,383)                    (1,190)
                                            ---------     ---------      ------     ---------     --------
    Net cash provided by operating activities     459           322       5,493                      6,274

Cash Flows From Investing Activities:
Capital expenditures                                         (5,669)     (3,137)                    (8,806)
                                            ---------     ---------      ------     ---------     --------
  Net cash used in investing activities                      (5,669)     (3,137)                    (8,806)

Cash Flows From Financing Activities:
Payments on term loan                          (1,500)                       (9)                    (1,509)
Net borrowings on credit facilities             4,150                                                4,150
                                            ---------     ---------      ------     ---------     --------
  Net cash provided by (used in)
  financing activities                          2,650                        (9)                     2,641

Intercompany transfers and dividends           (3,335)        5,573      (2,238)
Effects of exchange rates on cash                                          (203)                      (203)
                                            ---------     ---------      ------     ---------     --------
Net increase (decrease) in cash and cash
  equivalents                                    (226)          226         (94)                       (94)
Cash and cash equivalents at beginning
  of period                                       590          (590)        922                        922
                                            ---------     ---------      ------     ---------     --------
Cash and cash equivalents at end of period  $     364     $    (364)     $  828     $             $    828
                                            =========     =========      ======     =========     ========
</TABLE>

                                       17
<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

SAFE HARBOR STATEMENT

This Quarterly Report contains forward-looking statements within the meaning of
the Securities Act of 1933. These are subject to certain risks and
uncertainties, including those identified below, which could affect the
Company's actual results and cause such results to differ materially from those
expressed in forward-looking statements. The words "believe," "anticipate,"
"expect," "intend," "will likely result," "will continue," and similar
expressions identify forward-looking statements.

Factors that could cause actual results to differ materially from the
forward-looking statements include but are not limited to (i) the effect of
leverage, including the limitations imposed by the Company's various debt
instruments; (ii) risks related to significant operations in foreign countries,
including the translation of operating results to the U.S. dollar; (iii) the
timely development and market acceptance of new products; (iv) the effect of
competitive products and pricing; (v) the effect of changing general and
industry specific economic conditions; (vi) the effect of environmental
regulations; and (vii) the potential for technology obsolescence.

While made in good faith and with a reasonable basis based on information
currently available to the Company's management, there is no assurance that any
such forward-looking statements will be achieved or accomplished. The Company is
under no obligation to update any forward-looking statements to the extent it
becomes aware that they are not achieved or likely to be achieved for any
reason.

BASIS OF PRESENTATION

The following table sets forth selected financial information in millions of
dollars and as a percentage of net sales:

<TABLE>
<CAPTION>
                                                       THREE MONTHS                         NINE MONTHS
                                                    2002             2001            2002              2001
                                                  $      %        $      %        $         %        $          %
<S>                                             <C>    <C>       <C>    <C>      <C>      <C>      <C>      <C>
Net sales                                       66.9   100.0     61.0   100.0    192.1    100.0    192.7    100.0
Costs of goods sold                             42.5    63.6     39.9    65.4    121.8     63.4    124.3     64.5
                                               -----   -----    -----   -----    -----    -----    -----    -----
Gross profit                                    24.4    36.4     21.1    34.6     70.3     36.6     68.4     35.5
Selling, general and administrative expense     14.4    21.5     13.3    21.8     40.7     21.2     42.3     21.9
Restructuring costs                                               0.1     0.1      0.1      0.1      0.7      0.4
Amortization of intangibles                      0.2     0.3      1.1     1.8      0.6      0.3      3.3      1.7
Management fees                                  0.2     0.3      0.2     0.4      0.8      0.4      0.8      0.4
                                               -----   -----    -----   -----    -----    -----    -----    -----
Operating profit                                 9.6    14.3      6.4    10.5     28.1     14.6     21.3     11.1
                                               =====   =====    =====   =====    =====    =====    =====    =====
</TABLE>

                                       18
<PAGE>



COMPARISON OF RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2002, COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 2001

Net sales increased $5.9 million (9.6%) to $66.9 million. Image Transfer's sales
increased $5.0 million (10.2%) to $54.1 million, primarily as a result of higher
export sales from the United States and in Europe ($4.3 million) and by positive
foreign currency rate changes of $1.5 million offset by lower sales volume in
the United States of $1.0 million. The lower U.S. Image Transfer sales volume
was as a result of the continuing weak U.S. printing industry. Textile Products'
sales increased $0.9 million (7.2%) to $12.8 million, primarily as a result of
higher sales volume in the United States of $0.3 million and by positive foreign
currency rate changes of $0.6 million.

Gross profit increased $3.2 million (15.3%) to $24.4 million. As a percentage of
net sales, gross profit increased to 36.4% for the three months ended September
30, 2002, compared to 34.6% for the three months ended September 30, 2001,
primarily as a result of benefits realized from the restructuring activities
performed in the second half of 2001 and the first quarter of 2002. Gross profit
has continued to be negatively affected by lower manufacturing yields of digital
products than expected during initial startup.

Selling, general and administrative expense ("SG&A") increased $1.1 million
(8.1%) to $14.4 million. As a percentage of net sales, SG&A decreased slightly
to approximately 21.5% from 21.8%. Foreign currency translation rate changes
increased SG&A by $0.4 million in the third quarter of 2002 compared to the
third quarter of 2001.

Operating profit increased $3.1 million (48.5%) to $9.6 million, primarily as a
result of decrease in amortization of goodwill from the adoption of SFAS No. 142
($0.9 million) and the higher gross margin, offset by higher SG&A expenses. As a
percentage of net sales, operating profit increased to 14.3% for the three
months ended September 30, 2002, from 10.5% for the comparable period in 2001.
Excluding the restructuring charges and the amortization of goodwill in 2001,
operating profit as a percentage of net sales would have been 14.3% in 2002 and
12.1% in 2001. Image Transfer's operating profit increased $1.4 million (18.2%)
to $9.0 million. As a percentage of net sales, Image Transfer's operating profit
increased to 16.7% for the three months ended September 30, 2002, from 15.6% in
2001, primarily as a result of benefits realized from the restructuring
activities performed in 2001. Textile Products' operating profit increased $0.6
million (40.6%) to $2.0 million, excluding the restructuring costs in 2001. As a
percentage of net sales, Textile Products' operating profit (excluding the
restructuring costs in 2001) increased to 15.5% for the three months ended
September 30, 2002, from 11.8% in 2001, primarily as a result of increased
margins on sales from the U.S. operations.

Other income was $0.1 million for the three months ended September 30, 2002,
compared to other income of $0.8 million for the three months ended September
30, 2001. The other (income) expense is primarily due to foreign currency
transaction (gains) losses incurred in the normal course of international

                                       19
<PAGE>

subsidiaries doing business in other than their functional currency as well as a
result of intercompany financing arrangements.

The effective tax rate for the third quarter of 2002 was 41.4%. In 2001 the
Company recorded income tax expense on a loss before taxes. This effect was a
result of non-deductible expenses and international earnings taxable in the
United States.

NINE MONTHS ENDED SEPTEMBER 30, 2002, COMPARED TO NINE MONTHS ENDED SEPTEMBER
30, 2001

Net sales decreased $0.5 million (0.3%) to $192.1 million. Image Transfer's
sales increased $2.8 million (1.8%) to $156.2 million, primarily as a result of
higher export sales from the United States and in Europe ($4.4 million) and by
positive foreign currency rate changes of $1.5 million offset by lower sales
volume in the United States of $5.5 million. The lower U.S. Image Transfer sales
volume was as a result of the continuing weak U.S. printing industry in 2002.
Textile Products' sales decreased $3.3 million (8.5%) to $35.9 million,
primarily as a result of lower sales volume in the United States of $2.4 million
and in Europe of $1.5 million, offset by positive foreign currency rate changes
of $0.6 million. The lower U.S. Textile Products sales volume was primarily a
result of customers consolidating and closing textile mills as a result of weak
demand for U.S. produced textile products combined with a lower global demand
for spun yarn. The strong U.S. dollar over the past several years has reduced
U.S. textile exports and caused an increase of lower-cost textile imports into
the United States.

Gross profit increased $1.9 million (2.8%) to $70.3 million. As a percentage of
net sales, gross profit increased to 36.6% for the nine months ended September
30, 2002, compared to 35.5% for the nine months ended September 30, 2001,
primarily as a result of benefits realized from the restructuring activities
performed in the second half of 2001, offset by lower Textile sales volumes.
Gross profit has continued to be negatively affected by lower manufacturing
yields of digital products than expected during initial startup.

Selling, general and administrative expense ("SG&A") decreased $1.5 million
(3.5%) to $40.7 million. As a percentage of net sales, SG&A decreased to
approximately 21.2% from 21.9%, primarily as a result of benefits realized from
the restructuring activities performed in 2001. Foreign currency translation
rate changes increased SG&A by $0.4 million in the first three quarters of 2002
compared to 2001.

A pre-tax charge of $0.5 million was recorded in the first quarter of 2001 for
severance and termination costs to relocate the Textile Products operations from
its Asheville, North Carolina, facility to its Greenville, South Carolina,
facility. During the first quarter of 2002, the Company reversed $0.1 million of
the reserve. Additionally, a pre-tax charge of $0.3 million has been recorded in
the first quarter ended of 2002 for relocation of machinery and equipment and
write-off of abandoned assets.

During the fourth quarter of 2001, the Company ceased operations at its Transfer
Media facility in Longwood, Florida. A pre-tax charge of $3.0 million was
recorded in 2001 for severance costs for 55 associates, write-off of abandoned
assets and costs related to closing the facility. As of June 30, 2002, final

                                       20
<PAGE>


severance payments have been paid to all associates and the remaining reserve of
$0.1 million for severance costs was reversed in the second quarter of 2002.

Operating profit increased $6.7 million (31.4%) to $28.1 million, primarily as a
result of decrease in amortization of goodwill from the adoption of SFAS No. 142
($2.7 million), the higher gross margin and the reduction in SG&A. As a
percentage of net sales, operating profit increased to 14.6% for the nine months
ended September 30, 2002, from 11.1% for the comparable period in 2001.
Excluding the restructuring charges and the amortization of goodwill in 2001,
operating profit as a percentage of net sales would have been 14.6% in 2002 and
12.8% in 2001. Image Transfer's operating profit increased $3.3 million (13.4%)
to $27.7 million. As a percentage of net sales, Image Transfer's operating
profit increased to 17.7% for the nine months ended September 30, 2002, from
15.9% in 2001, primarily as a result of benefits realized from the restructuring
activities performed in 2001. Textile Products' operating profit decreased $0.5
million (8.4%) to $4.9 million, excluding the restructuring costs in 2002 and
2001, as a result of the decrease in sales volume. As a percentage of net sales,
Textile Products' operating profit (excluding the restructuring costs in 2002
and 2001) was flat at 13.8% for the nine months ended September 30, 2002,
compared to 2001.

Other income was $0.5 million for the nine months ended September 30, 2002,
compared to other expense of $0.5 million for the nine months ended September
30, 2001. The other (income) expense is primarily due to foreign currency
transaction losses incurred in the normal course of international subsidiaries
doing business in other than their functional currency as well as a result of
intercompany financing arrangements.

The effective tax rate benefit for the first three quarters of 2002 was 40.0%.
The Company recorded income tax expense for 2001 on a loss before taxes. This
effect is a result of non-deductible expenses and international earnings taxable
in the United States.

As of January 1, 2002, the Company adopted SFAS Nos. 141, "Business
Combinations" and 142, "Goodwill and Other Intangible Assets" and ceased
recording amortization of goodwill of approximately $3.7 million per year and
recognized pre-tax income of $1.0 million for the cumulative effect of the
change in accounting principle for the amount of the unamortized deferred credit
related to the excess over cost arising from the TPO acquisition. As of June 30,
2002, the Company has completed the initial review of the recoverability of
goodwill and has determined that no impairment of goodwill is indicated.

LIQUIDITY AND CAPITAL RESOURCES

The Company has historically generated sufficient funds from its operations to
fund its working capital and capital expenditure requirements. The Company is
able to maintain relatively low levels of working capital as its converters and
distributors typically carry a greater portion of inventory and finance
receivables of the Company's end users.

                                       21
<PAGE>

Capital expenditures were $5.6 million and $8.8 million for the nine months
ended September 30, 2002 and 2001, respectively.

As of September 30, 2002, there was $7.3 million outstanding under the Revolving
Credit Facility and the Company had approximately $12.2 million available under
the Revolving Credit Facility (calculated by applying the applicable borrowing
base limitation). The Company's aggregate indebtedness at September 30, 2002, is
approximately $257.6 million and the aggregate liquidation preferences of the
Exchangeable Preferred Stock is $60.5 million and the Convertible Preferred
Stock is $62.9 million. The Company is highly leveraged. The Company's ability
to operate its business, service its debt requirements and reduce its total debt
will depend upon its future operating performance, which will be affected by
prevailing economic conditions and financial, business and other factors,
certain of which are beyond its control, as well as the availability of
revolving credit borrowings. See the Company's Annual Report on Form 10-K for a
more extensive discussion of liquidity and capital resources.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

RISKS ASSOCIATED WITH INTERNATIONAL OPERATIONS

The Company conducts a significant amount of business and has operating and
sales facilities in countries outside the United States. As a result, the
Company is subject to business risks inherent in non-U.S. activities, including
political uncertainty, import and export limitations, exchange controls and
currency fluctuations. The Company believes risks related to its foreign
operations are mitigated due to the political and economic stability of the
countries in which its largest foreign operations are located, the stand-alone
nature of the operations, the Company's limited net asset exposure, forward
foreign exchange contract practices and pricing flexibility. Thus, while changes
in foreign currency values do affect earnings, the longer-term economic effect
of these changes should not have a material adverse effect on the Company's
financial condition, results of operations or liquidity.

Certain of the Company's international subsidiaries make purchases in foreign
currencies, mainly intercompany transactions. As a result, they are subject to
transaction exposures that arise from foreign exchange movements between the
date that the foreign currency transaction is recorded and the date it is
consummated. The Company has entered into forward foreign exchange contracts to
protect it against such foreign exchange movements. The contract value of these
foreign exchange contracts was approximately $9.0 million at September 30, 2002
and $9.3 million at December 31, 2001. These contracts generally expire within
three to twelve months. Foreign currency transaction (gains) losses, included in
other (income) expense, were $0.3 million and $(0.8) million for the three
months ended September 30, 2002 and 2001 and zero and $0.5 million for the nine
months ended September 30, 2002 and 2001.

INTEREST RATE RISKS

The Company is subject to market risk from exposure to changes in the interest
rates based on its financing activities. The Company utilizes a mix of debt
maturities along with both fixed- and variable-

                                       22
<PAGE>

rate debt to manage its exposure to changes in interest rates and to minimize
interest expense. The Company does not expect interest rate changes to have a
material effect on income or cash flows in 2002, although there can be no
assurance that interest rates will not materially change.

COMMODITY RISKS

Rubber polymers and fabrics are key components in most of the Image Transfer and
Textile products. The Company is exposed to changes in the costs of these
components. In addition, Image Transfer's pressroom chemical products are
exposed to changes in the cost of certain petroleum-based components. The
largest raw material component in the pressroom chemical products is petroleum
distillates, such as aliphatics and aromatics. When commodity prices increase,
the Company has historically passed on increases to its customers to maintain
its profit margins. Conversely, when commodity prices decline, the Company
generally lowers its sales prices to meet competitive pressures. Because the
Company has historically been able to raise sales prices to offset higher costs,
management believes that a 10% change in the cost of its components could have a
short-term effect until sales price increases take effect, but overall would not
have a material effect on income or cash flows for a fiscal year.

ITEM 4.  CONTROLS AND PROCEDURES

The Company maintains a system of internal accounting controls designed to
provide reasonable assurance that transactions are properly recorded and
summarized so that reliable financial records and reports can be prepared and
assets safeguarded. In addition, a system of disclosure controls is maintained
to ensure that information required to be disclosed is recorded, processed,
summarized and reported in a timely manner to management responsible for the
preparation and reporting of the Company's financial information.

Management assesses the internal control and disclosure control systems as being
effective as they encompass material matters for the three months and nine
months ended September 30, 2002. To the best of management's knowledge, there
were no changes in the internal control and disclosure control systems
subsequent to September 30, 2002, that would significantly affect the control
systems.

                                       23
<PAGE>



                            PART II OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         a.       Exhibits

         (99)     ADDITIONAL EXHIBITS

                  99.1     Certification of the Chief Executive Officer Pursuant
                           to 18 U.S.C. Section 1350, as Adopted Pursuant to
                           Section 906 of the Sarbanes-Oxley Act of 2002
                  99.2     Certification of the Chief Financial Officer Pursuant
                           to 18 U.S.C. Section 1350, as Adopted Pursuant to
                           Section 906 of the Sarbanes-Oxley Act of 2002

         b.       Reports on Form 8-K

                  None

                                    SIGNATURE

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.

                                    Day International Group, Inc.
                                    -----------------------------
                                              (Registrant)


Date:   November 11, 2002        By:   /s/ Thomas J. Koenig
                                     -----------------------------
                                     Thomas J. Koenig
                                     Vice President and Chief Financial Officer
                                     (Principal Financial Officer
                                     and Principal Accounting Officer)


                                       24
<PAGE>



                                 CERTIFICATIONS

I, Dennis R. Wolters, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Day International
      Group, Inc.;

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in this
      quarterly report;

4.    The registrant's other certifying officer and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a) designed such disclosure controls and procedures to ensure that
      material information relating to the registrant, including its
      consolidated subsidiaries, is made known to us by others within those
      entities, particularly during the period in which this quarterly report is
      being prepared;

      b) evaluated the effectiveness of the registrant's disclosure controls and
      procedures as of a date within 90 days prior to the filing date of this
      quarterly report (the "Evaluation Date"); and

      c) presented in this quarterly report our conclusions about the
      effectiveness of the disclosure controls and procedures based on our
      evaluation as of the Evaluation Date;

5.    The registrant's other certifying officer and I have disclosed, based on
      our most recent evaluation, to the registrant's auditors and the board of
      directors:

      a) all significant deficiencies in the design or operation of internal
      controls which could adversely affect the registrant's ability to record,
      process, summarize and report financial data and have identified for the
      registrant's auditors any material weaknesses in internal controls; and

      b) any fraud, whether or not material, that involves management or other
      employees who have a significant role in the registrant's internal
      controls; and

6.    The registrant's other certifying officer and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.

Date:  November 11, 2002               By: /s/ Dennis R Wolters
                                          -----------------------------
                                       Dennis R. Wolters
                                       President and Chief Executive Officer
                                       (Principal Executive Officer)

                                       25

<PAGE>



I, Thomas J. Koenig, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Day International
      Group, Inc.;

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in this
      quarterly report;

4.    The registrant's other certifying officer and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a) designed such disclosure controls and procedures to ensure that
      material information relating to the registrant, including its
      consolidated subsidiaries, is made known to us by others within those
      entities, particularly during the period in which this quarterly report is
      being prepared;

      b) evaluated the effectiveness of the registrant's disclosure controls and
      procedures as of a date within 90 days prior to the filing date of this
      quarterly report (the "Evaluation Date"); and

      c) presented in this quarterly report our conclusions about the
      effectiveness of the disclosure controls and procedures based on our
      evaluation as of the Evaluation Date;

5.    The registrant's other certifying officer and I have disclosed, based on
      our most recent evaluation, to the registrant's auditors and the board of
      directors:

      a) all significant deficiencies in the design or operation of internal
      controls which could adversely affect the registrant's ability to record,
      process, summarize and report financial data and have identified for the
      registrant's auditors any material weaknesses in internal controls; and

      b) any fraud, whether or not material, that involves management or other
      employees who have a significant role in the registrant's internal
      controls; and

6.    The registrant's other certifying officer and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.

Date:  November 11, 2002                 By:  /s/ Thomas J. Koenig
                                              -----------------------------
                                         Thomas J. Koenig
                                         Vice President and Chief Financial
                                         Officer (Principal Financial Officer
                                         and Principal Accounting Officer)

                                       26