Contents

2   Letter To Shareholders
6   Forms Solutions Group
8   Promotional Solutions Group
10  Financial Solutions Group
12  Selected Financial Data
13  Management's Discussion and Analysis
18  Ten-Year Financial Review
20  Consolidated Financial Statements
40  Independent Auditors' Report



Financial Highlights


  Annual Summary

<TABLE>

<CAPTION>                     Fiscal Years Ended     % Increase
                              2004         2003      (Decrease)
                              ----         ----      ----------
<S>                       <C>          <C>           <C>
Net Sales                 $259,360,000 $240,757,000       7.7
Earnings before income
  taxes                     28,890,000   24,345,000      18.7
Income taxes                10,939,000    9,098,000      20.2
Net earnings                17,951,000   15,247,000      17.7
Dividends                   10,146,000   10,093,000        .5
Per share of common
  stock:
     Basic net earnings           1.10          .94      17.0
     Diluted net earnings         1.08          .93      16.1
     Dividends                     .62          .62        --
Weighted average number of
  shares of common stock
  outstanding - basic       16,358,107   16,284,575        .5
Weighted average number of
  shares of common stock
  outstanding - diluted     16,601,838   16,478,140        .8
</TABLE>

                                1
<PAGE>
Letter to Shareholders

We  are  pleased to report our best per share earnings since  the
1996  fiscal year.  The employees of our company are particularly
gratified with these results, as the printing business has become
increasingly  competitive  in  the  last  decade.   The  printing
industry in general has declined in both revenue and earnings the
past  three years.  Ennis Business Forms, Inc. continues to be  a
printing  company, but not of only the business forms with  which
we  have  been  traditionally associated.  Ennis has  been  in  a
transition  from over dependence on the old-line forms  business,
and  the  2004 fiscal year has demonstrated our progress.   While
the  printing  of forms will continue to be important,  the  non-
traditional forms and other printed products produced 45% of  our
revenue and 39% of our profits the past fiscal year.

Continuing economic pressure on the companies in our industry has
hastened a pattern of consolidation.  As an active participant in
that  process, Ennis Business Forms, Inc. was able  to  reach  an
agreement  to  purchase Calibrated Forms Company last  year.   We
will   continue  to  pursue  acquiring  respected  print  related
enterprises.   While Calibrated is still primarily in  the  forms
business,  it is a quality organization, which fits  our  culture
well.   Their  results  have  proven  our  expectations  correct.
Future  acquisitions will continue the same pattern of prospects.
Our  acquisition strategy is to continue to expand our  portfolio
of  product  lines to include more than traditional forms,  while
continuing to consider high quality forms companies that  provide
an opportunity for superior industry returns.

Our  entry  point to the marketplace will continue to be  through
indirect  market  channels.  Our customers include  distributors,
printers,  large  direct sellers and various other  organizations
that resell our products.  In the past year, the marketplace  has
changed  significantly for manufacturers who sell direct as  they
continue   to  consolidate  into  mega-enterprises.    As   these
consolidated companies integrate, there will be opportunities due
to  strategic  decisions  by  the surviving  entity  and  fallout
opportunities   as  their  current  customers   move   into   new
relationships.

The  distributor  organizations have a window of opportunity  for
accounts  that  were  traditionally  available  only  to   direct
sellers.  Distributors  can  penetrate  these  companies  through
superior  service  and better-targeted solutions.   However,  the
number  of  indirect  selling manufacturers are  also  declining,
decreasing  the number of supply options to the indirect  selling
community.   Ennis  now has a wider footprint of  facilities  and
product  lines  than any company supplying through  the  indirect
market channel.  In addition, if a distributor is able to acquire
a   large   business   account,  an  organization   with   Ennis'
capabilities  and  financial  strength  will  be  essential.   We
believe  these  advantages position us  well  in  the  continuing
market evolution of the printing industry.

Since  we  are  convinced that our future  in  printing  is  more
diverse  than  simply  forms, we will  ask  the  shareholders  to
approve a name change for your company.  Our recommended name  is
Ennis, Inc., from our current name of Ennis Business Forms,  Inc.
Our  sales and marketing materials have moved to the "Ennis" name
for several years, and we believe it is time to make it official.
The  names  are  closely related, and we foresee  no  significant
costs associated with the change.  The organization structure  of
our  three  separate  operating units, which are  currently  well
established,  will  continue.  By removing  the  words  "business
forms"  from  the  corporate name, it  will  help  the  marketing
efforts of the non-forms groups.

                                2
<PAGE>

Promotional Solutions Group

This  group's  target  customers are more  closely  tied  to  the
strength  of the economy than the traditional forms products.   A
core  customer group is advertising agencies, which thrive  in  a
growing  economy.  The advertising market continued  to  be  soft
this  past  year,  and subsequently, the revenue  of  Promotional
Solutions  was  down  by 5%.  This slowdown  did  provide  us  an
opportunity  to concentrate on improving the internal  operations
of  these manufacturing facilities.  The results were apparent in
the financials, as the Promotional Solutions Group improved their
profitability by 11%.

As the growth rate in the U.S. market has increased, we have seen
a  corresponding  change  in new business  opportunities.   While
quoting activity remains at an all time high, we already have new
customer commitments that more than surpass last year's decline.

In  order to handle the new business, we have transferred control
of  a  Dallas  plant site from the Forms Solutions Group  to  the
Promotional Solutions Group.  The plant currently houses Connolly
Tool  and  Machine Co, which is downsizing to accept new printing
and fulfillment capacity.

The  group's  areas  of growth are in point-of-purchase  signage,
labels,   screen-printing,   presentation   folders,   commercial
printing,  fulfillment  of  products  and  printing  on   plastic
substrates.    Additional  equipment  and  process   improvements
include  additional  plastics printing  capabilities,  new  label
capacities and computer to plate technologies.

Financial Solutions Group

The  Financial  Solutions  Group focuses  on  security  and  MICR
related   documents,   primarily,  for  the  financial   services
industry.   This  group  is  composed  of  the  former  Northstar
facilities, which has been a part of Ennis for over three  years.
The acquisition continues to be a success and has now returned in
cash flow all of the original debt incurred for the purchase.

This  past  fiscal year saw the completion of  the  move  of  the
Nevada,  Iowa facility to a larger facility and the consolidation
of a small plant in Colorado, into that new building. While these
moves had no immediate revenue impact, they did contribute to the
profit improvement of the group, which was a positive 40%.

While  the  Financial Solutions Group is less cyclical  than  the
Promotional Solutions Group, they do have some customers that are
sensitive to the Gross Domestic Product (GDP) growth rate.  As  a
result, the negotiable documents business was down this year  and
resulted in a slight overall decline in the group's revenue.  The
management of the group focused on improving an already excellent
level  of  service  and  performance,  which  they  believe  will
increase their market share.

Michael  D. Magill ("Mike"), their new leader since early spring,
offers  additional discussion of their direction in  this  annual
report's  group  segment presentation.   Mike  has  an  extensive
background  in  the financial industry, which includes  executive
positions  in  a  major financial institution, CEO  of  Safeguard
Business  Systems Inc. - a major supplier of checks and forms  to
the financial industry.
                                3
<PAGE>

Mike  joined the Company after Safeguard was acquired by  another
company.   We  are  pleased to have someone of Mike's  depth  and
experience on the Ennis team.

Forms Solutions Group

The  Forms Solutions Group continues to perform well above  their
industry  peers.   We  believe this trend  is  sustainable.   Our
information  and  control systems are the  key  to  our  industry
advantage.  The Ennis financial reporting system is the  best  we
have  seen in this industry, and this system enables us to  react
more  quickly to changes in the incoming order flows.  This group
also  has  new  E-commerce capabilities,  which  will  give  them
additional advantage in this very competitive market.

The  addition of Calibrated improved the Forms Solutions  Group's
position  with the important Pro Distributor market.  This  group
of  distributors will become increasingly important as the  large
directs  consolidate, and Calibrated is a key  supplier  to  this
market  segment.   The  integration of the sales,  marketing  and
accounting  functions  into the Ennis system  is  complete.   The
former  owners  of Calibrated, Jim Amyx and Kim Brown,  were  key
factors  in the smooth transition.  Jim has now chosen to  retire
in  Texas, and Kim is still in Columbus spending time focusing on
her  young  family  and other interests.   They  have  both  been
outstanding at assisting Ennis whenever asked, and we  wish  them
both a well earned break.

2004 Fiscal Year Results

Revenues  for  the  fiscal  year  ended  in  February  2004  were
$259,360,000  compared to $240,757,000 in the  prior  year.   Net
earnings  for  the  fiscal  year  were  $17,951,000  compared  to
$15,247,000 in fiscal year 2003.  The increases in both  revenues
and  earnings  were primarily attributable to the acquisition  of
Calibrated Forms Co. in November 2002.

Financial Condition

The  Company  continues its strong financial  condition.   As  of
February  29, 2004, the current ratio was 2.5 to 1, the  debt  to
equity  ratio  was .07 to 1, and its return on  equity  was  17%.
During the fiscal year, we reduced long-term debt by $11,038,000.

Dividend Policy

The Board of Directors considers the Company's dividend policy to
be one of its most important considerations. The Company is proud
of the fact that our Board has declared a dividend in one hundred
twenty-three consecutive fiscal quarters.  The Board of Directors
reviews the dividend policy on a quarterly basis and continues to
believe  quarterly dividends at the current rate will best  serve
the interests of all of the shareholders for the present time.

New Director

The  addition  of  Mr. Alejandro Quiroz to  the  Ennis  Board  of
Directors was the only Board change this year.  Mr. Quiroz filled
the seat left vacant by the retirement of Mr. Kenneth Overstreet.
He  is  currently Chairman  of the Board of The PRINTER Group and

                                4
<PAGE>

has  extensive  experience  in  the printing industry of both the
United States and Mexico. Alex brings extensive industry contacts
and  an  international perspective  to our Board.  He has already
proven himself a valuable member of our Board of Directors.

The Future

The  Sarbanes-Oxley Act, signed into law in June of 2002, is  the
most  sweeping  business  reform legislation  enacted  since  the
1930's.   The impact is not only being felt by public  companies,
but  also  by attorneys, public accountants, management,  broker-
dealers,  boards and their committees.  Over the past  year,  the
Securities  and  Exchange Commission has issued an  unprecedented
number  of  regulations  to  interpret  the  Sarbanes-Oxley  Act.
Additionally,  the  New York Stock Exchange  has  mirrored  those
regulations with their own updated regulations to affect  greater
access to boards and improved governance procedures for companies
listed  on the Exchange.  Due to the enactment of Sarbanes-Oxley,
the  past  year  has become the year of regulation for  corporate
governance and all aspects of financial reporting.

Ennis has moved swiftly to follow the new rules under the Act  by
strengthening  our  board  committee  structures   and   enacting
committee  charters,  as well as Governance  Guidelines  for  the
Board.  The Company has posted these Charters and Guidelines with
our  Code  of  Ethics  on  the Ennis  website.   The  Company  is
currently  addressing  the Section 404 control  requirements  and
anticipates completing the process in the third quarter  of  this
financial  year.   Ennis has always followed a very  conservative
approach  to  its  financial reporting.   Through  its  continued
implementation  of  its  new  Enterprise  Reporting  Program,  we
believe  our  operational  practices  will  clearly  support  the
financial controls to ensure the accuracy and timeliness  of  our
financial reports.

We  continue  to be active in the consolidation of  the  printing
industry.  We are in discussion with several companies.  However,
this  does  not  mean  that we will conclude these  transactions.
Ennis has been very careful about the quality of its acquisitions
and  will  continue  that  policy.  We  believe  the  integration
accomplished before signing the deal is often more important than
post-closing  integration.  Our management  sees  the  successful
assimilation  of new companies as a testament to the  success  of
our process.

Ennis'  total return to shareholders has been positive  the  last
three   years,  and  our  employees  are  proud  to  reward   our
shareholders  for  their  support.  The  printing  industry  will
continue  to  be  a  competitive and difficult market,  but  your
employees are committed to continuing to better that trend.



Keith S. Walters
Chairman, CEO and President


                                5
<PAGE>


FORMS SOLUTIONS GROUP

Success  is  defined as an achievement of a  set  goal  by  which
others  will  measure  themselves against.   How  does  one  rate
success in this industry?  Should we measure it by our ability to
provide distributors with stable profit opportunities year  after
year?  Is it judged by our years of experience and expertise?  Or
is  the  most important aspect our dedication to building  strong
customer  and employee relationships?  The Ennis Forms  Solutions
Group's  continued success can be attributed  to  each  of  these
factors  along  with  our  strong financial  standing,  embracive
acquisition philosophy, ever-growing product lines and dedication
to being the industry leader.  These combined elements will allow
us to continually succeed in this competitive industry.

Sales Growth & Industry Leadership

During  the 2004 fiscal year, the Forms Solutions Group  overcame
numerous  obstacles.  Despite an overall decline in the  industry
and  a  slow  economy,  the  Company  responded  with  impressive
numbers,  including  near  record  levels  of  both  profits  and
revenue.   The  combined  growth and  efforts  of  our  12  forms
manufacturing facilities has enabled Ennis to become the  largest
wholesale  manufacturer in the forms industry.   This  heightened
status offers us the ability to better serve our distributor base
and  develop  strong  alliances with our  vendors.   These  newly
formed  partnerships  will play a major  role  in  the  continued
success of the Forms Solutions Group.

Product & Facility Expansion

As  the  traditional forms market continues  to  decline,  it  is
imperative that Ennis progressively introduce unique products and
services  that  will  help  increase the  profit  margin  of  our
customers.   During  the past year, the Forms  Solutions  Group's
facilities  have  added  numerous  new  items  to  their  product
offering,  while  streamlining some existing product  lines.   By
taking these steps, they will be able to provide lower prices and
sustain profit margins.

In  addition to these new products, acquisitions continue to play
a  key  role  in the overall growth and strategy of Ennis'  Forms
Solutions  Group.   The  Company is in good  position  to  pursue
acquisition  opportunities, in order to increase our capabilities
and  nationwide  reach  with the goal  of  providing  a  complete
solution for customers and greater value to the shareholders.

                                6
<PAGE>


Last  year's inclusion of Calibrated Forms Company has proven  to
be  very  beneficial to the Forms Solutions Group.   Our  overall
commitment  to  growth, strong financial position  and  low  debt
levels  has  put  us at a definite advantage to  consider  future
expansion.

Improved Levels of Quality & Service

The  Forms Solutions Group understands that providing exceptional
quality and outstanding service are vital parts of maintaining  a
successful   business   within  this   industry.    The   Company
continually  strives  to insure that our products,  services  and
people  exceed customers' expectations.  In the past year  alone,
Ennis  has  installed new cost control systems  in  many  of  our
plants,  in  order to help measure our processes.  These  systems
provide information to managers, which allow them to maximize the
utilization  of their people and equipment.  Due to this  focused
effort  at  particular facilities, the quality level of  products
has shown improvement throughout the year.  Ennis is currently in
the  process  of  implementing this system throughout  the  Forms
Solutions Group.

With instability playing a part in this declining market, one  of
our strongest assets is considered to be our stable and dedicated
team  of  employees.  Their ability to encompass new skills  with
trusted  work  practices  has  enabled  Ennis  to  integrate  new
processes and products into plants with minimum disruption.   The
average  tenure  of an employee in the Forms Solutions  Group  is
well  above  the  industry norm, which truly helps  differentiate
this group from our competitors.

The  Forms  Solutions  Group's mission is  simple.   We  must  be
willing   to   go  the  distance  by  offering  customers   sales
opportunities and services other companies do not.  Regardless of
the  maturity  of this market, Ennis has risen to  the  challenge
year  after year.  Our Forms Solutions Group has led the industry
and  proven that even in a highly competitive and mature  market,
there are some companies that will always succeed.

                                7
<PAGE>


PROMOTIONAL SOLUTIONS GROUP

The  economic  climate of the past year presented  challenges  to
many  businesses.  Commercial printing in general  experienced  a
reduction in sales volume as customers looked for ways to  reduce
expenses,  in  order to preserve profits or reduce  losses.   The
task  was challenging, however, core customer relationships  have
remained  strong  through  this  period  of  reduced  promotional
budgets.    As   the  economy  slowly  begins  to  improve,   the
Promotional  Solutions Group is poised to renew  its  growth  and
continue to succeed in this competitive market.

Adams McClure & Cost Reduction

Adams  McClure  continues to be one of the top  twenty  Point-of-
Purchase  printers in the United States.  Our division  has  been
engaged  in  substantial cost reduction measurements  during  the
2004  fiscal  year.  Two major facilities were consolidated  into
one,  and  we  negotiated a new reduced cost agreement  with  our
major  pre-press  supplier,  which will  inevitably  enhance  our
competitive position in the market.

In  the  past year, Adams McClure has been impacted by  the  slow
economy  and  restricted  promotional  budgets  of  our  existing
customers,  which resulted in a profit decrease.  Our efforts  to
grow  sales with new customers have been intense and are expected
to  render results in this coming year.  We have been involved in
extensive  planning with several new and existing customers  that
provide  commitments  for increased business  within  the  coming
year.   Current  trends  show  that the  spending  for  point-of-
purchase promotional printing is improving as the economy grows.

To  differentiate  us  from other commercial printing  companies,
Adams  McClure  offers  a  complete fulfillment  and  warehousing
program  to customers.  This service is unmatched in the industry
and will set Adams McClure apart from the rest.

Admore & Customer Loyalty

Admore  is deemed one of the most successful presentation  folder
manufacturers  in  the  nation  and  a  valuable  member  of  the
Promotional Solutions Group.  The Admore Line secured a continual
growth  pattern  by  cross selling and  promoting  to  the  Forms
Solutions Group customer base, which in turn helped increase  our
overall  sales.  Our Designs-by-Industry line of products  offers
traditional  Ennis distributors reliable and easy  solutions  for
customers.   These pre-designed folders and envelopes  feature  a
personalization option and cater to a variety of industries.

                                8
<PAGE>


Admore's steady progress during the 2004 fiscal year can also  be
attributed to the installation of a state-of-the-art computer-to-
plate  processing system.  This system has allowed us to be  more
responsive  to customers who have shorter lead times and  special
color   processing   needs.   In  addition,   Admore's   enhanced
capabilities  offer  support to the other  Promotional  Solutions
Group  divisions  by  providing  them  with  superior  commercial
printing and improved color processing.

Wolfe City Opportunities

During this past fiscal year, the Wolfe City Label & Tag division
of  the  Promotional  Solutions Group  continued  to  expand  our
technical  capabilities,  in order to  position  us  for  further
product  development  and  growth  opportunities.   The  recently
acquired  ability  to supply high color labels for  multiple  new
applications  has  opened  the doors  to  new  markets  for  this
division.  A concentrated marketing effort for custom labels  was
started in the fourth quarter of fiscal year 2004.  This campaign
will result in an increased visibility within the marketplace and
will tout the enhanced capability developed this year.  The Label
&  Tag  division  is also working closely with Adams  McClure  in
producing a top-quality promotional label offering and will be  a
key supplier for Adams McClure during this coming year.

The  traditionally  strong  cotton  tag  business  suffered  some
weakness this past year.  Regardless of this decline, Wolfe  City
Label  &  Tag  has  maintained  our  strong  industry  stance  in
dominating  market  share  with  this  product.   To  uphold  our
position, we must continue to provide a technical edge and always
remain a step ahead of the competition.

The  Advertising Concepts division, located within the Wolfe City
facility,  has expanded their product offering and also increased
their  cross-selling to the traditional Ennis customer base.   As
the  economy  continues  to  improve,  the  Advertising  Concepts
division is expected to continue growing.

As  we look towards a new year, the prospect for sales growth  is
extremely  positive.  The business climate is improving,  and  as
the  economy  recovers, corporations will once again  be  in  the
position  to develop lavish advertising campaigns, which  utilize
promotional  printing and advertising specialty  products  in  an
effort to increase their market share.

                                9
<PAGE>


FINANCIAL SOLUTIONS GROUP

Success  in the financial forms industry is not just measured  in
sales  and  profits,  but also by the ability  of  a  company  to
provide  security, technology and the necessary  product  quality
that meet the needs of this ever-changing market.  As part of the
Financial  Solutions  Group of Ennis,  General  Financial  Supply
(GFS)  and  Northstar successfully provide internal  bank  forms,
negotiable  and  non-negotiable security  documents,  specialized
business  forms and secured fulfillment services to the financial
services industry.

The  end users of our financial products and services include all
sizes  of  banks and financial institutions, processors  of  MICR
encoded  documents,  and  others  whose  documents  have  special
requirements and security features.  Each of these customers  has
demanding  forms  requirements and depends on  the  accuracy  and
document  integrity  of  products from  our  Financial  Solutions
Group.

Sales Performance

Performance in fiscal year 2004 was impacted both positively  and
negatively  by  actions begun in the previous  year  and  by  the
effects  of the economy.  During fiscal year 2003, our GFS  plant
in  Iowa  moved into a larger facility to accommodate growth  and
continue  to  meet  the  demands  of  a  growing  customer  base.
Management  also  made  the decision to close  our  manufacturing
facility  in  Golden, Colorado and transfer existing business  to
Nevada,  Iowa.  These changes led to the substantial  improvement
of net profits during the year.

Sales  growth at Northstar was negatively impacted  by  the  poor
economy  which  reduced the amount of money orders  and  official
checks  the general public uses in their day-to-day transactions.
In  order  to  offset  this decline, Northstar  has  several  new
proposals  with  large customers to expand their current  product
mix by providing additional products and services.  Northstar has
also   begun  providing  a  new  product  category  through   our
distributor base.

In  addition  to meeting the needs of their current distributors,
the  Financial Solutions Group has concentrated on educating  and
equipping  Ennis' traditional forms dealers for  success  in  the
financial  printing industry.  Since the acquisition of Northstar
in 2000, this has become an increasingly important goal.  Efforts
to  cross-sell  and  market  to these  customers  through  Ennis'
position in the forms market continues to increase.

                               10

<PAGE>


Product Expertise & Security

Product  expertise  and  quality are two of  the  most  important
concerns  for end users of our financial products and  are  areas
both  GFS and Northstar continue to be recognized for.  Recently,
the  North  American  Security Products  Organization  recognized
Northstar  as being among the first certified security  providers
in   North  America.   This  non-profit  security  standards  and
accreditation organization is dedicated to bringing a  recognized
level  of  security  and  credibility to  the  security  products
industry.

Northstar  is  the only printer in the country  to  achieve  this
designation and had to meet rigorous formal audits and maintain a
commitment  to  security excellence throughout the  organization.
The  end  users of our products recognize the value of  having  a
supplier  that is willing to invest in their products'  security,
and  we  feel  this certification positions us to build  on  this
trust.

Technology

Another  area  of  value  that  the  Financial  Solutions   Group
continues  to  invest  in  is our use of  technology.   Today  we
receive orders over the internet, process those orders digitally,
transmit files from computer-to-plate, and the end product can be
scanned  and processed digitally.  This group currently processes
more  than  100,000 orders a year on our secure  web  site.   The
Financial  Solutions  Group  will continue  to  be  a  leader  in
developing the technology required to better serve our customers.
It  is  our intent to serve our customers through innovation  and
technology  to provide them with the best possible  products  and
services.   Many  of  the  steps we have  taken  lead  to  faster
production  and  reduced  costs  for  both  our  plants  and  the
customer.

Conclusion

The  Financial Solutions Group continues to focus on new  product
opportunities,  as  well  as providing  our  customers  with  new
services to aid in their businesses.  The enactment of the  Check
21  Act last October will take the check collection process high-
tech  by  eliminating the paper pushing that passes  through  the
U.S.  mail.   These  changes  will  have  a  profound  effect  on
financial printing companies.  The Financial Solutions  Group  is
positioned to be a leader throughout these changes, and  we  will
continue  to  supply  our customers with  the  most  current  and
innovative financial products in the industry.


                               11
<PAGE>



Selected Financial Data
<TABLE>
<CAPTION>
Fiscal Years Ended    2004      2003      2002       2001      2000
(In thousands, except
   per share amounts)
<S>                 <C>       <C>       <C>        <C>       <C>
Net sales           $259,360  $240,757  $236,923   $229,186   $176,600
Net earnings          17,951    15,247    14,966     13,177     15,123

Per share of common
   stock:
     Basic net
       earnings         1.10       .94       .92        .81        .93
     Diluted net
       earnings         1.08       .93       .92        .81        .93
     Dividends           .62       .62       .62        .62        .62
Total assets         154,043   152,537   139,034    142,854    102,934
Long-term debt         7,800    18,135     9,170     23,555        462

</TABLE>

                               12
<PAGE>

Management's Discussion and Analysis

Overview

Ennis  Business Forms, Inc. was organized under the laws of Texas
in   1909.  Ennis  Business  Forms,  Inc.  and  its  subsidiaries
(collectively  "Ennis"  or  the "Company") prints and  constructs
a  broad  line of business forms and other business products  for
national distribution.  Distribution of business forms and  other
business  products  throughout the  United  States  is  primarily
through   independent  dealers.  These  include  business   forms
distributors, stationers, printers, computer software  developers
and advertising agencies, among others.

On November 14, 2002, the Company acquired all of the outstanding
shares of Calibrated Forms Co., (Calibrated).  The purchase price
for the transaction was $22,038,000, less liabilities excluded of
$7,195,000.  Calibrated designs, manufactures and markets printed
business  forms within the wholesale business forms  marketplace.
Calibrated became part of the Forms Solutions Group.

The  Company  operates  in three business  segments.   The  first
segment,  the Forms Solutions Group is primarily in the  business
of  manufacturing  and selling business forms and  other  printed
business products primarily to distributors located in the United
States.   The second segment, the Promotional Solutions Group  is
comprised  of  Adams McClure (design, production and distribution
of  printed and electronic media), Admore (presentation products)
and  Wolfe  City (flexographic printing, advertising  specialties
and  Post-it (registered trademark) Notes).   The third segment,
the  Financial Solutions Group designs, manufactures and  markets
printed forms and specializes in internal bank forms, secure  and
negotiable documents and custom products.

Economic pressure and the contraction of the traditional business
forms  industry continue to impact each segment of  the  Company.
As  a  result, the Company continues to concentrate  on  reducing
other  costs where sales are declining.  The installation of  the
Company's Enterprise Resource Planning Software (ERP) System has
decreased  the  waste in materials in the plants which  have  the
system.   The  Company is continuing to install  the  ERP  System
throughout  the  organization.  The Company is also  focusing  on
increasing sales where the market is expanding.  In addition, the
Company  will  continue  to search for acquisition  opportunities
that will expand our mix of products away from traditional forms,
as  well  as stragetic acquisitions within the traditional  forms
industry.

Liquidity and Capital Resources

Cash Flow

Cash provided by operating activities amounted to $26,249,000  in
fiscal year ended 2004, approximately $3,633,000, or 16.1% higher
than  the  $22,616,000 provided in fiscal year ended 2003.   This
increase  in  cash provided by operating activities  was  due  to
higher net income and increased collection of receivables.

Working Capital

The  Company  has  maintained a strong  financial  position  with
working  capital  at  fiscal year ended 2004  of  $38,205,000,  a
decrease  of 3.8% from the beginning of the year, and  a  current
ratio  of 2.5 to 1.  The decrease in working capital is primarily
due to the use of funds and operating profit to pay dividends and
long-term  debt.    The  Company  has  $15,067,000  in  cash  and
equivalents.

Credit Facility

The Company has $14,135,000 in long-term debt.  Effective January
3, 2003, the Company executed an amendment to its existing credit
facility  whereby the Revolving Credit Facility was increased  to
$30,000,000,  due  to  the acquisition  of  Calibrated,  and  the
outstanding  balance  of  the  term  loan  was  merged  into  the
Revolving  Credit Facility with an interest rate  of  LIBOR  plus
..75%  and a maturity date of January 3, 2006.    The Company made
scheduled payments of $6,700,000 and pre-paid $4,000,000  of  the
debt  financing during the fiscal year ended 2004.   The  Company
anticipates   repaying  the  long-term  debt  with  payments   of
$1,500,000  per  quarter  and a final payment  of  $1,800,000  in
January 2006.  The available line of credit at fiscal year  ended
2004 was approximately $16,200,000.

                               13
<PAGE>

Pension

The  Company  is  required to make contributions to  its  defined
benefit pension plan.  These contributions are required under the
minimum  funding requirements of the Employee Retirement  Pension
Plan  Income  Security Act (ERISA).  The Company  anticipates  it
will  pay $2,500,000 for the fiscal year ended 2005.  The Company
made  pension contributions in the amount of $7,100,000  for  the
fiscal year ended 2004.

Inventory

The  Company believes current inventory levels are sufficient  to
satisfy  customer demand and anticipates having adequate  sources
of raw materials to meet future business requirements.

Capital Expenditures

Capital expenditures for the next fiscal year are expected to  be
between $5,000,000 and $6,000,000 and are expected to be financed
through  internally  generated  funds.  The  Company  expects  to
generate  sufficient cash flow from its operating  activities  to
more than cover its operating and other capital requirements  for
the foreseeable future.

Commitments

The following table aggregates the Company's expected contractual
obligations and commitments subsequent to fiscal year ended 2004:

                      Payments due by period (in thousands)
                      -------------------------------------
                                                      2009 and
                      2005    2006     2007    2008   thereafter
                      ----    ----     ----    ----   ----------
Industrial revenue
  bonds and other    $  335  $   --    $  --    $ --     $  --
Revolving credit
  facility            6,000   7,800       --      --        --
Revolving credit
  facility -            322     115       --      --        --
  interest
Operating lease
  obligations         1,361     465      209     106         4


Accounting Standards

In December 2002, the Financial Accounting Standards Board (FASB)
issued  Statements  of Financial Accounting  Standards  No.  148,
"Accounting   for    Stock-Based   Compensation-Transition    and
Disclosure-an  Amendment  to  FASB   Statement  No.  123"   (SFAS
No.148).   SFAS No. 148 provides alternate methods of  transition
for  a  voluntary  change  to  the fair  value  based  method  of
accounting  for stock-based employee compensation.  In  addition,
SFAS  No. 148  amends the disclosure requirements of  "Accounting
for   Stock-Based  Compensation"  (SFAS  No.  123)   to   require
prominent  disclosures  in  both  annual  and  interim  financial
statements  about  the  method of accounting  used  in  reporting
results.     To  date, the Company has not adopted SFAS  No.  123
utilizing  any of the transition methods of SFAS  No.  148.   The
FASB  recently issued an exposure draft for public comment and  a
final standard is expected in the second half of 2004.  Tentative
decisions  by  the FASB indicate that expensing of stock  options
will  be  required for fiscal years beginning after December  15,
2004.

                               14
<PAGE>

Results of Operations
2004 as compared to 2003

Net  sales  in  2004 increased 7.7% from 2003.  The increase  was
attributable to the inclusion of revenue for the full fiscal year
ended   2004   from   the  Company's  newly  acquired   business.
Calibrated Forms Co., Inc. (Calibrated) was acquired in  November
2002 to augment the Forms Solutions Group.  This Group, excluding
Calibrated, continued to be impacted by both the general  economy
and industry declines and accordingly had a decrease in sales  of
2.4%.   The Financial Solutions Group sales experienced a  slight
decrease  of  .3%.  The Promotions Solutions Group  continued  to
experience  the  negative  impact  of  the  general  economy  and
business declines and had a decrease in sales of 1.6%.

Gross  profit  margin increased to 26.4% in 2004 as  compared  to
26.3%  in  2003.  The Forms Solutions Group gross  profit  margin
decreased from 28.0% in fiscal 2003 to 26.6% in fiscal 2004.  The
Financial  Solutions  Group and the Promotional  Solutions  Group
both  increased from 26.6% and 21.9% in fiscal 2003 to 27.8%  and
23.1%, respectively, in fiscal 2004.  The general weakness in the
economy  and  the  decline in the forms industry  contributed  to
lower  prices  in  the Forms Solutions Group.  In  addition,  the
gross profit margin decreased due to a combination of lower fixed
cost absorption resulting from decreased sales volumes in certain
plants  and  a  shift  in  mix  to lower  margin  products.   The
Financial  Solutions  Group and the Promotional  Solutions  Group
both experienced increases in profit margin due to more efficient
fixed cost absorption and an increase in the volume of profitable
sales.

Selling,  general  and  administrative  expenses  increased  2.6%
during  fiscal 2004 as compared to 2003.  The Financial Solutions
Group  and the Promotional Solutions Group accounted for  a  2.4%
and   2.0%   decrease  in  selling,  general  and  administrative
expenses,   respectively.   Effective  cost  reduction   programs
implemented in the groups accounted for the reduction.  The Forms
Solutions Group and Corporate selling, general and administrative
expenses increased 4.4% and 2.6%, respectively.  The increase  in
the  Forms  Solutions Group is primarily due to the inclusion  of
Calibrated  for the full fiscal year ended 2004.    The  increase
in Corporate expense is primarily due to the centralization, on a
Corporate  level, of the administrative and accounting  functions
of recent acquisitions.

Investment income decreased 82.6% in 2004 as compared to 2003 due
to  declines in interest rates.  Interest expense decreased  from
$1,306,000 in fiscal 2003 to $830,000 in fiscal 2004 as a  result
of  the reduction of long-term financial debt and the declines in
interest rates.  Other expenses were flat in 2004 as compared  to
2003.

The  Company's  effective  federal and  state  income  tax  rate
remained relatively constant from 2003 to 2004, increasing .5%.

Results of Operations
2003 as compared to 2002

Net  sales  in  2003 increased 1.6% from 2002.   Sales  increased
primarily as a result of the inclusion of Calibrated.  The  Forms
Solutions  Group, excluding Calibrated, continued to be  impacted
by both the general economy and industry declines and accordingly
had  a  decrease in sales of 2.4%.  The Financial Solutions Group
sales  increased slightly and accounted for .4%  of  the  overall
increase   in   net  sales.   The  Promotional  Solutions   Group
experienced  a  decrease  in sales of 1.1%  due  to  the  general
economy and business declines.

The gross profit margin decreased to 26.3% in 2003 as compared to
27.4%   in  2002.   The  Forms  Solutions  Group,  the  Financial
Solutions Group, and the Promotional Solutions Group gross profit
margin all decreased from 29.6%, 27.5%, and 23.1% in fiscal  2002
to  28.0%,  26.6%,  and  21.9%,  respectively,  in  fiscal  2003.
Excluding  Calibrated, the decrease in the Forms Solutions  Group
resulted  from  less fixed cost absorption due to the  net  sales
decrease  as  noted above.  In addition, the general weakness  in
the economy and the decline in the forms industry contributed  to
lower  prices  in  the  Forms  Solutions  Group.   The  Financial
Solutions  Group  gross  profit  margin  decreased   due   to   a
combination  of  lower  fixed  cost  absorption  resulting   from
decreased sales volumes in certain plants and a shift in  mix  to
lower  margin  products.  In addition, a move to a new  operating
facility in one of the locations, which was completed in July  of
2002,  exacerbated the reduction in margins due to costs incurred
for  the move and incurrence of operational inefficiencies during
the  move  period.  The Promotional Solutions Group gross  profit
margin decreased due to less fixed cost absorption resulting from
sales decline.

                               15
<PAGE>

Selling,  general  and  administrative  expenses  decreased  3.7%
during  fiscal 2003 as compared to 2002. The Financial  Solutions
Group  and Promotional Solutions Group accounted for a  4.1%  and
2.2%  decrease  in selling, general and administrative  expenses,
respectively.  The  elimination  of  goodwill  expense   in   the
Financial   Solutions  Group  and  Promotional  Solutions   Group
resulting  from the adoption of SFAS No. 142 accounted  for  2.9%
and  .9%  respectively of the total decrease in selling,  general
and  administrative expenses.  Effective cost reduction  programs
implemented  in  the groups accounted for the  remainder  of  the
reduction.   The  Forms  Solutions Group and  Corporate  selling,
general  administrative expenses increased and offset  the  total
decrease 1.3% and 1.3%, respectively.  The increase in the  Forms
Solutions   Group  is  primarily  a  result  of  the   Calibrated
acquisition.  The increase in the Corporate expenses is primarily
a result of an increase in depreciation related to the Company 's
Enterprise Resource Planning Software (ERP) System that continues
to be placed in service company-wide.

Investment income decreased 72.5% in 2003 as compared to 2002 due
to  declines in interest rates.  Interest expense decreased  from
$1,949,000 in fiscal 2002 to $1,306,000 in fiscal 2003 due to the
reduction   of   Northstar   Computer  Forms,  Inc.   (Northstar)
financial debt and to declines in interest rates.  Other expenses
decreased  6.1% in 2003 as compared to 2002 primarily  due  to  a
higher gain on sale of assets in 2003 as compared to 2002.

The  Company's effective federal and state income  tax  rate  for
2003  was  37.4%, as compared to 2002's effective rate of  38.7%.
The primary reason for the decrease is due to the elimination  of
non-deductible goodwill expense for the year ended  February  28,
2003 as a result of the adoption of SFAS No. 142.

Critical Accounting Policies and Judgments

In  preparing our financial statements, we are required  to  make
estimates  and  assumptions  that  affect  the  disclosures   and
reported  amounts of assets and liabilities at the  date  of  the
financial  statements and the reported amounts  of  revenues  and
expenses  during the reporting period.  We evaluate our estimates
and judgments on an ongoing basis, including those related to bad
debts,  inventory  valuations,  property,  plant  and  equipment,
intangible  assets and income taxes.  We base our  estimates  and
judgments  on historical experience and on various other  factors
that we believe to be reasonable under the circumstances.  Actual
results   may  differ  materially  from  these  estimates   under
different  assumptions or  conditions.  The Company believes  the
following accounting policies  are the most critical due to their
affect   on   the   Company's   more  significant  estimates  and
judgments  used  in  preparation  of  its  consolidated financial
statements.

The   Company  maintains  a  defined-benefit  pension  plan   for
employees.   Included in our financial results are pension  costs
which  are  measured using actuarial valuations.   The  actuarial
assumptions used may differ from actual results.

We  exercise  judgment  in evaluating our long-lived  assets  for
impairment.   The Company assesses the impairment  of  long-lived
assets which includes other intangible assets, goodwill and plant
and   equipment  whenever  events  or  changes  in  circumstances
indicate  that  the carrying value may not be  recoverable.   The
Company  assesses  the  impairment  of  goodwill  annually.    In
performing tests of impairment, the Company must make assumptions
regarding  the estimated future cash flows and other  factors  to
determine  the fair value of the respective assets  in  assessing
the  recoverability  of its goodwill and other  intangibles.   If
these  estimates or the related assumptions change,  the  Company
may be required to record impairment charges for these assets  in
the future.  Actual results could differ from assumptions made by
management.   We believe our businesses will generate  sufficient
undiscounted  cash flow to more than recover the  investments  we
have  made  in  property, plant and equipment,  as  well  as  the
goodwill  and  other  intangibles recorded as  a  result  of  our
acquisitions.   The  Company  cannot predict  the  occurrence  of
future  impairment triggering events nor the impact  such  events
might have on its reported asset values.

Revenue  is  generally recognized upon shipment for  all  printed
products.  Revenue from fixed price contracts for the design  and
construction  of tools, dies and special machinery is  recognized
using the percentage of completion method of accounting.

                               16

<PAGE>

Derivative  instruments are recognized on the  balance  sheet  at
fair  value. Changes in fair values of derivatives are  accounted
for based upon their intended use and designation.  The Company's
interest  rate  swaps are held for purposes other  than  trading.
The  Company  utilized swap agreements related to  its  term  and
revolving  loans  to  effectively fix the  interest  rate  for  a
specified  principal amount of the loans.  Amounts receivable  or
payable  under  interest  rate swap agreements  are  recorded  as
adjustments to interest expense.  The swaps have been  designated
as  a  cash flow hedge, and the after tax effect of the  mark-to-
market  valuation  that  relates  to  the  effective  amount   of
derivative  financial instrument is recorded as an adjustment  to
accumulated  other comprehensive income with the offset  included
in accrued expenses.

As  part  of the process of preparing our consolidated  financial
statements, we are required to estimate our income taxes in  each
jurisdiction  in which we operate that imposes a tax  on  income.
This  process involves estimating our actual current tax exposure
together  with  assessing  temporary differences  resulting  from
different  treatment  of items for tax and  accounting  purposes.
These  differences result in deferred tax assets and liabilities,
which  are included in our consolidated balance sheet.   We  must
then  assess the likelihood that our deferred tax assets will  be
recovered from future taxable income and to the extent we believe
that  recovery  is  not  likely, we must  establish  a  valuation
allowance.  To the extent we establish a valuation allowance,  we
must  include  an  expense  within  the  tax  provision  in   the
consolidated  statements of income.  In the  event  that  accrual
results  differ  from these estimates, our provision  for  income
taxes could be materially impacted.

Certain Factors That May Affect Future Results

The Forms Solutions Group sells a mature product line of business
forms  and other printed business products.  The demand for  this
product   line  may  decrease  with  increasing  electronic   and
paperless forms and filings.

The Promotional and Financial Solutions Groups are dependent upon
certain  major customers.  The loss of such customers may  affect
the revenue and earnings of the Groups.

The Company has various contracts with suppliers that are subject
to  change upon renewal and may not provide the same cost  ratios
for future periods.

Market Risk

The  Company  is exposed to market risk from changes in  interest
rates on debt.  A discussion of the Company's accounting policies
for  derivative  instruments  is  included  in  the  Summary   of
Significant  Accounting Policies in the Notes to the Consolidated
Financial Statements.

The  Company's net exposure to interest rate risk consists  of  a
floating  rate debt instrument that is benchmarked  to  U.S.  and
European short-term interest rates.  The Company may from time to
time  utilize  interest  rate swaps to manage  overall  borrowing
costs  and  reduce exposure to adverse fluctuations  in  interest
rates.  The  Company  does  not use  derivative  instruments  for
trading  purposes.  The Company is exposed to interest rate  risk
on   short-term  and  long-term  financial  instruments  carrying
variable  interest rates.  The Company's variable rate  financial
instruments, including the outstanding credit facilities, totaled
$12  million  at  fiscal  year ended 2004.   The  impact  on  the
Company's  results  of  operations of a one-point  interest  rate
change  on the outstanding balance of the variable rate financial
instruments  as  of fiscal year ended 2004 would  be  immaterial.
This  market risk discussion contains forward-looking statements.
Actual  results may differ materially from this discussion  based
upon general market conditions and changes in domestic and global
financial markets.


Management's  letter  to  shareholders, operations  overview  and
discussion, and analysis of results of operations contain forward-
looking statements that reflect the  Company's current view  with
respect  to  future revenues and earnings.  These statements  are
subject to numerous uncertainties, including (but not limited to)
the  rate  at  which  the traditional business  forms  market  is
contracting,  the application of technology to the production  of
business forms, demand for the  Company's products in the context
of the contracting market, variability in the prices of paper and
other  raw materials, and competitive conditions in the  business
forms  market.   Because  of  such  uncertainties,  readers   are
cautioned  not  to  place undue reliance on such  forward-looking
statements which speak only as of April 14, 2004.

                               17
<PAGE>
<TABLE>
<CAPTION>
Ten-Year Financial Review
(In thousands, except per share amounts)
Fiscal years        2004       2003      2002       2001
ended
                    ----       ----      ----       ----
<S>               <C>        <C>       <C>        <C>
Net sales         $259,360   $240,757  $236,923   $229,186

Earnings before
  income taxes     28,890      24,345    24,403     21,571

Provision for
  income taxes     10,939       9,098     9,437      8,394

Net earnings       17,951      15,247    14,966     13,177

      As a % of
         sales        6.9%        6.3%      6.3%       5.7%

      Per common
          share -
          diluted   $1.08       $0.93     $0.92      $0.81

Dividends          10,146      10,093    10,089     10,075

      Per share       .62         .62       .62        .62

Shareholders'
  equity          110,582      96,903    96,035     91,540

      Per share -
          basic      6.76        5.95      5.89       5.63

Current assets     63,605      65,012    62,646     58,263

Current
  liabilities      25,400      25,294    23,966     17,908

Net working
  capital          38,205      39,718    38,680     40,355

Ratio of current
   assets to
   current
   liabilities      2.5:1       2.6:1     2.6:1      3.3:1

Depreciation
  of plant
  and equipment     9,216       9,156     8,683      8,313

Additions to
  property,
  plant and
  equipment         4,543       3,763     2,254      3,594

</TABLE>
                               18
<PAGE>


<TABLE>
<CAPTION>
 Ten-Year Financial Review
 (In thousands, except per share amounts)
   2000      1999       1998       1997      1996       1995
   ----      ----       ----       ----      ----       ----
 <C>       <C>        <C>        <C>       <C>        <C>
 $176,600  $159,690   $162,962   $161,969  $150,071   $147,920

   24,041    22,558     15,805     21,485    30,104     32,041

    8,918     8,448      5,597      7,992    11,487     12,025

   15,123    14,110     10,208     13,493    18,617     20,016

      8.6%      8.8%       6.3%       8.3%     12.4%      13.5%

    $0.93     $0.87      $0.62      $0.82     $1.13      $1.22

   10,068    10,116     10,191     10,110     9,782      9,453

      .62       .62        .62       .615      .595       .575

   88,267    83,499     81,672     81,586    78,195     69,338

     5.45      5.12       4.97       4.96      4.76       4.22

   43,305    52,676     53,660     52,627    67,544     59,265

   10,525     8,367     10,396     10,307    13,054     12,976

   32,780    44,309     43,264     42,320    54,490     46,289


    4.1:1     6.3:1      5.2:1      5.1:1     5.2:1      4.6:1

    5,389     4,941      5,634      4,475     3,553      3,499

    2,988     3,663      9,576     13,575     6,106      4,010
</TABLE>
                               19
<PAGE>


Consolidated
 Statements of
 Earnings
 (In thousands,
 except share and
 per share amounts)
<TABLE>
<CAPTION>
                                         Fiscal Years Ended
                                     2004       2003      2002
                                     ----       ----      ----
  <S>                              <C>        <C>        <C>
  Net sales                        $259,360   $240,757   $236,923
  Costs and expenses:
    Cost of sales                   190,812    177,485    171,935
    Selling, general and
      administrative
      expenses                       38,521     37,559     39,000
                                   --------   --------    -------
                                    229,333    215,044    210,935
                                   --------   --------    -------
        Earnings from operations     30,027     25,713     25,988
                                   --------   --------    -------
  Other income (expense):
    Investment income                    29        167        608
    Interest expense                   (830)    (1,306)    (1,949)
    Other                              (336)      (229)      (244)
                                   --------   --------    -------

                                     (1,137)    (1,368)    (1,585)
                                   --------   --------    -------
        Earnings before income
          taxes                      28,890     24,345     24,403
  Provision for income taxes         10,939      9,098      9,437
                                   --------   --------    -------
        Net earnings               $ 17,951   $ 15,247   $ 14,966
                                    =======    =======    =======

  Net earnings per share of
    common stock - basic          $    1.10  $     .94  $     .92
                                  =========  =========  =========
   Net earnings per share of
    common stock - diluted        $    1.08  $     .93  $     .92
                                  =========  =========  =========

  Weighted average number of
    common shares outstanding -
    basic                        16,358,107 16,284,575 16,272,121

  Weighted average number of
    common shares outstanding -
    diluted                      16,601,838 16,478,140 16,318,718
</TABLE>

 See accompanying notes to consolidated financial statements.


                              20
<PAGE>



Consolidated Statements of Cash Flows
(In thousands)
<TABLE>
<CAPTION>                                      Fiscal Years Ended
                                             2004     2003     2002
                                             ----     ----     ----
<S>                                       <C>      <C>       <C>
Cash flows from operating activities:
  Net earnings                            $17,951  $15,247   $14,966
  Adjustments to reconcile net
    to earnings net cash provided by
    operating activities:
      Depreciation                          9,216    9,156     8,683
      Amortization                            132       38     1,613
      Gain on the sale of equipment           (65)     (93)      (26)
      Other                                    75       --        --
      Changes in operating assets and
        liabilities:
          Receivables                       2,277      (48)    1,244
          Prepaid expenses                   (314)     (98)       (5)
          Inventories                        (617)     (42)      866
          Contract costs in excess
            of billing                        875     (711)       --
          Other current assets                314     (452)    1,551
          Accounts payable and accrued
            expenses                        1,017     (578)      770
          Other assets and liabilities     (4,612)     197    (2,069)
                                           ------   ------    ------
             Net cash provided by
               operating activities        26,249   22,616    27,593
                                           ------   ------    ------

Cash flows from investing activities:
  Capital expenditures                     (4,543)  (3,763)   (2,254)
  Purchase of operating assets, net of
    cash acquired                              --  (20,522)       --
  Proceeds from disposal of property          176      176        35
  Redemption of investments                    --    1,802     1,348
  Other                                      (179)     (38)       90
                                           ------   ------    ------
        Net cash used in investing
          activities                       (4,546) (22,345)     (781)
                                           ------   ------    ------

Cash flows from financing activities:
  Debt issued to finance acquisitions          --   15,000        --
  Repayment of debt issued to finance
    acquisitions                          (11,038)  (7,540)   (8,890)
  Dividends                               (10,146) (10,093)  (10,089)
  Purchase of treasury stock                   (7)     (55)       (3)
  Proceeds from exercise of stock options     695      593        22
  Other                                        --     (496)     (636)
                                           ------   ------    ------
        Net cash used in financing
          activities                      (20,496)  (2,591)  (19,596)
                                           ------   ------    ------

Net change in cash and cash equivalents     1,207   (2,320)    7,216
Cash and cash equivalents at beginning
  of year                                  13,860   16,180     8,964
                                           ------   ------    ------

Cash and cash equivalents at end of year  $15,067  $13,860   $16,180
                                           ======   ======    ======
</TABLE>

See accompanying notes to consolidated financial statements.





                               21
<PAGE>


Consolidated Balance Sheets
(In thousands, except share and par value amounts)

<TABLE>
<CAPTION>                                  Fiscal Years Ended
                                             2004       2003
                                             ----       ----
<S>                                       <C>        <C>
Assets
Current assets:
  Cash and cash equivalents               $ 15,067   $ 13,860
  Receivables, principally trade, less
    allowance for doubtful
    receivables of $1,771 in
    2004 and $1,294 in 2003                 29,800     32,077
  Prepaid expenses                           2,022      1,708
  Inventories                               13,721     13,104
  Contract costs in excess of billings          92        967
  Other current assets                       2,903      3,296
                                           -------    -------

        Total current assets                63,605     65,012
                                           -------    -------

Property, plant and equipment, at cost:
  Plant, machinery and equipment            96,423     94,350
  Land and buildings                        28,362     26,653
  Other                                     16,811     16,507
                                           -------    -------
                                           141,596    137,510
  Less accumulated depreciation             95,116     86,246
                                           -------    -------

        Net property, plant and equipment   46,480     51,264
                                           -------    -------

Goodwill                                    34,420     34,241

Other assets                                 9,538      2,020
                                           -------    -------
                                          $154,043   $152,537
                                           =======    =======
</TABLE>
                               22
<PAGE>



Consolidated Balance Sheets
(In thousands, except share and par value amounts)



                                             Fiscal Years Ended
                                               2004      2003
                                               ----      ----

Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable                         $  5,804  $  6,644
  Accrued expenses:
    Employee compensation and benefits        7,908     6,784
    Taxes other than income                   1,427     1,430
    Other                                     3,926     3,398
  Current installments of long-term debt      6,335     7,038
                                            -------   -------
        Total current liabilities            25,400    25,294
                                            -------   -------

Accrued pension                                  --     2,130
Long-term debt, less current installments     7,800    18,135
Deferred credits, principally income taxes   10,261    10,075

Shareholders' equity:
  Series A junior participating preferred
    stock of $10 par value. Authorized
    1,000,000 shares; none issued                --        --
  Common stock of $2.50 par value.
    Authorized 40,000,000 shares;
    issued 21,249,860 shares                 53,125    53,125
  Additional paid in capital                    126       461
  Retained earnings                         145,653   137,848
  Accumulated other comprehensive income
    (loss):
      Minimum pension liability, net of
        deferred taxes of $0 and $3,005          --    (4,982)
      Unrealized gain (loss) on
        derivative instruments, net of
        deferred taxes of $70 and $149.        (114)     (243)
                                            -------   -------
          Total accumulated other
            comprehensive loss                 (114)   (5,225)
                                            -------   -------

                                            198,790   186,209

  Treasury stock, 4,856,626 and 4,916,877
    shares, respectively                     88,208    89,306
                                            -------   -------

          Total shareholders' equity        110,582    96,903
                                            -------   -------

                                           $154,043  $152,537
                                            =======   =======

See accompanying notes to consolidated financial statements.








                               23
<PAGE>

Consolidated Statements of Changes in Shareholders' Equity
(In thousands, except share amounts):

<TABLE>
<CAPTION>
                                                          Accumulated
                     Common Stock     Additional              Other      Treasury Stock
                     ------------     Paid-in  Retained  Comprehensive   --------------
                    Shares    Amount  Capital  Earnings  Income (Loss)    Shares   Amount   Total
                    ------    ------  ------   -------   -------------    ------   ------   -----
<S>             <C>         <C>      <C>     <C>       <C>            <C>         <C>       <C>
Balance
 February 28,
 2001           21,249,860  $53,125  $1,040  $127,817  $    --        (4,979,095) $(90,442) $91,540
  Net earnings          --       --      --    14,966       --                --        --   14,966
  Cumulative
   effect of
   accounting
   change for
   derivative
   instruments          --       --      --        --     (504)               --        --     (504)
  Unrealized
   gain on
   Derivative
   Instruments                                             103                                  103
                                                                                             ------
  Comprehensive
   income                                                                                    14,565
  Dividends
   declared
   ($.62 per
   share)              --        --      --   (10,089)      --               --        --   (10,089)
  Treasury stock
   issued              --        --      --        --       --            2,500        22        22
  Treasury stock
   purchases           --        --      --        --       --             (327)       (3)       (3)
               ----------    ------  ------    -------  ------         --------    ------    ------

Balance
 February 28,  21,249,860   $53,125  $1,040   $132,694 $  (401)      (4,976,922) $(90,423) $ 96,035
 2002
  Net earnings         --        --      --     15,247      --               --        --    15,247
  Unrealized
   gain on
   derivative                                              158                                  158
   instruments
  Minimum
   pension
   liability,
   net of
   tax effect                                           (4,982)                              (4,982)
                                                                                             ------
  Comprehensive
   income                                                                                    10,423
  Dividends
   declared
   ($.62 per
   share)              --        --     --     (10,093)     --              --        --    (10,093)
  Treasury
   stock
   issued              --        --   (579)         --      --          64,500     1,172        593
  Treasury
   stock
   purchases           --        --     --          --      --          (4,465)      (55)       (55)
               ----------    ------  ------    -------  ------       ---------   -------     ------
Balance
 February 28,
 2003          21,249,860   $53,125 $  461    $137,848 $(5,225)     (4,916,887) $(89,306)   $96,903
  Net earnings         --        --     --      17,951      --              --        --     17,951
  Unrealized
   gain on
   derivative
   instruments                                             129                                  129
  Minimum
   pension
   liability,
   net of
   tax effect                                            4,982                                4,982
                                                                                            -------
  Comprehensive
   income                                                                                    23,062
  Dividends
   declared
   ($.62 per
   share)               --       --       --  (10,146)      --              --        --    (10,146)
  Treasury stock
   issued               --       --     (410)      --       --          60,825     1,105        695
  Treasury stock
   purchases            --       --       --       --       --            (564)       (7)        (7)
  Other                 --       --       75       --       --              --        --         75
                ----------   ------  -------   ------   ------       ---------     ------   -------

Balance
 February 29,
 2004           21,249,860  $53,125  $  126  $145,653  $  (114)     (4,856,626)  $(88,208) $110,582
                ==========   ======  ======   =======   ======       =========     ======   =======
</TABLE>
See accompanying notes to consolidated financial statements.

                                       24
<PAGE>


Notes to Consolidated Financial Statements

(1)  Significant Accounting Policies and General Matters

Nature  of Operations.  Ennis Business Forms, Inc. and its wholly
owned  subsidiaries (the Company) is principally in the  business
of  manufacturing  and selling business forms and  other  printed
business  products to customers primarily located in  the  United
States.

Basis  of  Consolidation.  The consolidated financial  statements
include  the  accounts  of  the  Company  and  its  wholly  owned
subsidiaries.    All   significant  intercompany   accounts   and
transactions  have been eliminated.  Certain accounts  have  been
reclassified to present comparable results.  The Company's fiscal
years ended February 29, 2004, February 28, 2003 and February 28,
2002 (fiscal years ended 2004, 2003 and 2002, respectively).

Cash and Cash Equivalents.  The Company invests cash in excess of
daily  operating  requirements in income  producing  investments.
There  were  no investments at either fiscal year ended  2004  or
fiscal  year  ended  2003.  All such investments  (consisting  of
Eurodollar  deposits of U.S. banks) have an original maturity  of
90 days or less and are considered to be cash equivalents.

Inventory.  The Company values the raw material content  of  most
of its business forms inventories at the lower of last-in, first-
out  (LIFO) cost or market.  At fiscal years ended 2004 and 2003,
approximately  75% of business forms inventories  are  valued  at
LIFO  with  the remainder of inventories valued at the  lower  of
first-in, first-out (FIFO) cost or market.  The Company  provides
reserves for excess and obsolete inventory based upon analysis of
quantities on hand, recent sales volumes and reference to  market
prices.

Property,  Plant and Equipment.  Depreciation of property,  plant
and  equipment is provided by the straight-line method  at  rates
presently considered adequate to amortize the total cost over the
useful  lives of the assets, which range from 3 to 11  years  for
plant  machinery and equipment and 10 to 40 years  for  buildings
and  improvements.   Repairs  and  maintenance  are  expensed  as
incurred.    Renewals   and  betterments  are   capitalized   and
depreciated  over  the  remaining life of the  specific  property
unit.   The Company capitalizes all significant leases which  are
in substance acquisitions of property.

Goodwill  and Other Intangible Assets.  Effective March 1,  2002,
the  Company adopted Statement of Financial Accounting  Standards
No.  142, "Goodwill and Other Intangible Assets" (SFAS No.  142).
Under  this  standard, goodwill and intangibles  with  indefinite
useful  lives  are no longer amortized.  Instead,  SFAS  No.  142
requires  that goodwill and intangible assets deemed to  have  an
indefinite  useful  life be tested for impairment  (by  reporting
unit) upon adoption of SFAS No. 142 and annually thereafter.  The
Company performs its annual impairment analysis during the  third
quarter of each year.  The Company has determined that there  are
three reporting units, as defined by SFAS No. 142, including  the
Forms  Solutions Group, Promotional Solutions Group and Financial
Solutions Group.  Other acquired intangibles are primarily  trade
names  and are being amortized on a straight-line basis over  ten
years.

Impairment  of  Long-Lived Assets and  Long-Lived  Assets  to  Be
Disposed Of. Long-lived assets, including intangible assets,  are
reviewed   for   impairment  whenever  events   or   changes   in
circumstances indicate that the carrying amount of an  asset  may
not be recoverable.  Recoverability of assets to be held and used
is measured by a comparison of the carrying amount of an asset to
future  undiscounted net cash flows expected to be  generated  by
the  asset.   If  such assets are considered to be impaired,  the
impairment  to be recognized is based upon future discounted  net
cash  flows.  Assets to be disposed of are reported at the  lower
of the carrying amount or fair value less costs to sell.

Fair Value of Financial Instruments.  The carrying amount of cash
and   cash   equivalents,  receivables   and   accounts   payable
approximates  fair value because of the short maturity  of  these
instruments.   Long-term debt as of fiscal years ended  2004  and
2003,  approximates  its fair value.  The related  interest  rate
swaps were recorded at fair value at fiscal years ended 2004  and
2003.  See also Note 3.

Derivative  Financial Instruments.  The Company's  interest  rate
swaps  are  held  for purposes other than trading.   The  Company
utilized swap agreements related to its term and revolving  loans
to  effectively  fix the interest rate for a specified  principal
amount  of  the  loans.   Amounts  receivable  or  payable  under
interest  rate  swap agreements are recorded  as  adjustments  to
interest  expense.  This swap has been designated as a cash  flow
hedge  and  the after-tax effect of the mark-to-market  valuation
that  relates  to  the  effective amount of derivative  financial
instrument  is  recorded as an adjustment  to  accumulated  other
comprehensive  income  with  the  offset  included   in   accrued
expenses.

                               25
<PAGE>

Revenue  Recognition.   Revenue  is  generally  recognized   upon
shipment  of  all  printed products.  Revenue  from  fixed  price
contracts  for  the design and construction of  tools,  dies  and
special   machinery  is  recognized  using  the   percentage   of
completion method of accounting.

Advertising Expenses.  The Company expenses advertising costs  as
incurred.   Catalog and brochure preparation and printing  costs,
which  are  considered direct response advertising, are amortized
to  expense  over the life of the catalog which typically  ranges
from   three   to   twelve  months.   Advertising   expense   was
approximately $1,434,000, $1,528,000, and $1,207,000, during  the
fiscal  years ended 2004, 2003 and 2002, respectively.   Included
in advertising expense is amortization related to direct response
advertising  of $537,000, $474,000, and $415,000 for  the  fiscal
years  ended  2004,  2003  and 2002,  respectively.   Unamortized
direct  response  advertising costs  included  in  other  current
assets  at  fiscal  years ended 2004 and 2003 were  $193,000  and
$137,000, respectively.

Income Taxes.  Deferred tax assets and liabilities are recognized
for  the  estimated  future  tax  consequences  attributable   to
differences between the financial statement carrying  amounts  of
existing  assets and liabilities and their respective  tax  bases
and  operating loss and tax credit carry forwards.  Deferred  tax
assets  and  liabilities  are measured using  enacted  tax  rates
expected  to apply to taxable income in the years in which  those
temporary  differences are expected to be recovered  or  settled.
The effect on deferred tax assets and liabilities of a change  in
tax rates is recognized in income in the period that includes the
enactment date.

Credit  Risk.   The  Company's financial  instruments  which  are
exposed  to  credit risk consist of its trade  receivables.   The
trade  receivables are geographically dispersed primarily  within
the continental United States. Credit losses are provided for  in
the financial statements.

Earnings  Per  Share.  Basic earnings per share  is  computed  by
dividing earnings by the weighted average number of common shares
outstanding  during the period.  Diluted earnings  per  share  is
computed  by dividing earnings by the weighted average number  of
common  shares  outstanding plus the number of additional  shares
that   would  have  been  outstanding  if  potentially   dilutive
securities  had been issued using the Treasury stock method.   At
fiscal  years  ended  2004, 2003, and 2002, 10,500,  70,250,  and
369,000  of  options,  respectively, were  not  included  in  the
diluted  earnings  per share computation because  their  exercise
price  exceeded the average fair market value for  the  Company's
stock  for  the year.  There is no difference in the  denominator
used  for  basic and diluted earnings per share for  all  periods
presented.

Accumulated   Other  Comprehensive  Income.   Accumulated   other
comprehensive loss consists of the unrealized portion of  changes
in  the  fair  value  of the Company's cash flow  hedge  and  the
minimum   pension   liability.   Amounts  charged   directly   to
Shareholders' Equity related to the Company's interest rate  swap
and pension plan are included in "other comprehensive income."

Estimates.  The preparation of financial statements in conformity
with generally accepted accounting principles requires management
to  make  estimates  and  assumptions that  affect  the  reported
amounts  of  assets and liabilities and disclosure of  contingent
assets  and  liabilities at the date of the financial  statements
and  the  reported  amounts of revenue and  expenses  during  the
reporting  period.   Actual  results  could  differ  from   these
estimates.

Shipping  and  Handling Costs.  Amounts billed to  customers  for
shipping  and handling costs are included in revenue and  related
costs are included in cost of sales.

Stock Based Compensation.  The Company accounts for employee  and
director stock-based compensation arrangements in accordance with
the  provisions  of Accounting Principles Board Opinion  No.  25,
"Accounting  for  Stock Issued to Employees" (APB  No.  25),  and
related   interpretations,  and  complies  with  the   disclosure
provisions  of  Statement of Financial Accounting  Standards  No.
123, "Accounting for Stock-Based Compensation" (SFAS No. 123) and
Statement of Accounting Standards No. 148, "Accounting for Stock-
Based  Compensation - Transition and Disclosure" (SFAS No.  148).
Under  APB No. 25, compensation expense for fixed awards is based
upon  the  difference, if any, on the date of grant  between  the
estimated  fair  value of the Company's stock  and  the  exercise
price  and is amortized over the vesting period.  All stock-based
awards to non-employees, if any, are accounted for at their  fair
value.  The  Company  is required  to  disclose the pro forma net
income as  if  the  fair value method defined in SFAS No. 123 had
been applied.

                               26

<PAGE>

The  following  table represents the effect  on  net  income  and
earnings  per share as if the Company had applied the fair  value
based method and recognition provisions of SFAS No. 123 to stock-
based  Employee  Compensation for  the  fiscal  years  ended  (in
thousands, except per share amounts):


                                     2004        2003       2002
                                     ----        ----       ----

     Net earnings, as reported     $17,951     $15,247    $14,966
      Deduct total stock-based
       employee compensation
       expense determined under
       fair value based methods
       for all awards, net of
       related tax effects             (42)       (138)      (138)
                                    ------     -------    -------
     Pro forma net earnings        $17,909     $15,109    $14,828
                                    ======     =======    =======

   Earnings per share:
     As reported - diluted           $1.08        $.93       $.92
     Pro forma - diluted              1.08         .92        .91


As  required,  the  pro forma disclosures above  include  options
granted  since  March  1,  1996.  Consequently,  the  effects  of
applying SFAS No. 123 for providing pro forma disclosures may not
be  representative  of  the effects on reported  net  income  for
future  years until all options outstanding are included  in  the
pro  forma  disclosures.  For purposes of pro forma  disclosures,
the  estimated fair value of stock-based compensation  plans  and
other  options is amortized to expense primarily over the vesting
period.

In  December 2002, the FASB issued SFAS No. 148, "Accounting  for
Stock-Based  Compensation and Disclosure."  SFAS No.  148  amends
the transition and disclosure provisions of SFAS No. 123.  If the
Company  had adopted the prospective transition method prescribed
by  SFAS  No.  148  at the beginning of fiscal year  ended  2004,
compensation  expense  of $42,000 would have  been  recorded  for
fiscal  year ended 2004.  After related income tax effects,  this
would  have  reduced net income by $26,000.   Basic  and  diluted
earnings  per share would have remained the same for fiscal  year
ended 2004.

Recent   Accounting  Pronouncements.   In  December   2002,   the
Financial Accounting Standards Board (FASB) issued Statements  of
Financial  Accounting Standards No. 148, "Accounting  for  Stock-
Based Compensation-Transition and Disclosure-an Amendment to FASB
Statement  No.  123"  (SFAS  No.148).   SFAS  No.  148   provides
alternate  methods of transition for a voluntary  change  to  the
fair  value  based method of accounting for stock-based  employee
compensation.   In addition, SFAS No. 148 amends  the  disclosure
requirements  of "Accounting for Stock-Based Compensation"  (SFAS
No.  123)  to  require prominent disclosures in both  annual  and
interim financial statements about the method of accounting  used
in  reporting results.  To date, the Company has not adopted SFAS
No.  123 utilizing any of the transition methods of SFAS No. 148.
The FASB recently issued an exposure draft for public comment and
a  final  standard  is  expected in  the  second  half  of  2004.
Tentative decisions by the FASB indicate that expensing of  stock
options  will  be  required  for  fiscal  years  beginning  after
December 15, 2004.

                               27
<PAGE>


(2)  Inventories

The following table summarizes the components of inventory at the
different  stages  of  production  at  fiscal  years  ended   (in
thousands):


                                     2004        2003
                                     ----        ----
      Raw material                 $ 6,911     $ 6,664
      Work-in-process                1,393       1,161
      Finished goods                 5,417       5,279
                                    ------      ------
                                   $13,721     $13,104
                                   =======      ======


The  excess of current costs at FIFO over LIFO stated values  was
approximately  $3,761,000 and $3,877,000 at  fiscal  years  ended
2004  and 2003, respectively.  The Company provides reserves  for
excess  and  obsolete inventory based upon analysis of quantities
on  hand,  recent sales volumes and reference to  market  prices.
For  fiscal years ended 2004 and 2003, the reserves were $244,000
and $150,000, respectively.

There were no significant liquidations of LIFO inventories during
the fiscal years ended 2004 and 2003.

(3)  Long-Term Debt

Long-term  debt consisted of the following at fiscal years  ended
(in thousands):

                                           2004        2003
                                           ----        ----
     Revolving credit facility          $13,800     $24,500
     Industrial revenue bonds               335         670
     Other                                   --           3
                                         ------      ------
                                         14,135      25,173
     Less current installments            6,335       7,038
                                         ------      ------
     Long-term debt                     $ 7,800     $18,135
                                         ======      ======

                               28
<PAGE>

The  availability under the revolving credit facility is  reduced
quarterly  by  $1,500,000 until the loan matures  on  January  3,
2006,  at which time all amounts outstanding are payable in full.
Interest payments are required monthly at LIBOR plus .75  percent
(1.84%  as  of  February  29,  2004).   Availability  under   the
revolving  credit  facility  at  fiscal  year  ended   2004   was
$16,200,000.

The   industrial  revenue  bonds  are  obligations  of  Northstar
Computer  Forms,  Inc.  (Northstar)  and  require  one  remaining
principal  repayment  of  $335,000  in  August  2004.    Interest
payments  are  required  monthly at a variable  rate  based  upon
comparable   tax-exempt   issues.    The   revenue   bonds    are
collateralized by an outstanding irrevocable direct-pay letter of
credit  with  a  financial institution equal to  the  outstanding
principal amount of the revenue bonds.

The  Company  utilized a swap agreement related to the  revolving
credit facility to effectively fix the interest rate at 3.20% for
a  pre-set  principal amount of the loan.  The pre-set  principal
amount  of  the  loan  covered  by the  swap  agreement  declines
quarterly  in  connection with expected principal  reduction  and
totaled $12,000,000 at fiscal year ended 2004.  The fair value of
the  swap  agreements at fiscal year ended 2004 was approximately
$(195,000).

The  revolving credit facility is unsecured and contains  certain
restrictive  covenants,  including  restrictions  on   additional
indebtedness, investments in or advances to others,  acquisitions
of  other  businesses, declaration and payment of  dividends  and
repurchase of capital stock.

Total interest paid in fiscal years ended 2004, 2003 and 2002 was
$830,000, $1,291,000, and $1,702,000, respectively.


(4)  Shareholders' Equity

In  fiscal  1999, the Company adopted a Shareholder Rights  Plan,
which  provides  that the holders of the Company's  common  stock
receive  one preferred share purchase right (a "Right") for  each
share  of  the  Company's  common stock  they  own.   Each  Right
entitles  the  holder to buy one one-thousandth  of  a  share  of
Series  A Junior Participating Preferred Stock, par value  $10.00
per  share,  at a purchase price of $27.50 per one one-thousandth
of  a share, subject to adjustment.  The Rights are not currently
exercisable,  but  would  become exercisable  if  certain  events
occurred relating to a person or group acquiring or attempting to
acquire 15% or more of the outstanding shares of common stock  of
the  Company.  Under those circumstances, the holders  of  Rights
would be entitled to buy shares of the Company's common stock  or
stock  of  an  acquiror of the Company at a  50%  discount.   The
Rights expire on November 4, 2008, unless earlier redeemed by the
Company.

(5)  Stock Options

At  fiscal  year ended 2004, the Company has two incentive  stock
option  plans: the 1998 Option and Restricted Stock Plan and  the
1991  Incentive Stock Option Plan. The Company has 704,952 shares
of  unissued  common stock reserved under the stock option  plans
for issuance to officers and directors, and supervisory employees
of  the Company and its subsidiaries.  The exercise price of each
option  granted equals the quoted market price of  the  Company's
common  stock on the date of grant, and an option's maximum  term
is  ten  years.  Options may be granted at different times during
the year and vest over a five-year period.

The  per  share  weighted-average fair value of  options  granted
during  fiscal years ended 2004, 2003, and 2002 was $1.75, $1.96,
and  $0.91,  respectively, on the date of grant using  the  Black
Scholes  option-pricing model with the following weighted-average
assumptions for the fiscal years ended:


                                     2004       2003     2002
                                     ----       ----     ----

    Expected dividend yield          4.38%      5.01%    7.03%
    Stock price volatility          23.24%     22.50%   23.40%
    Risk-free interest rate          2.89%      4.64%    4.86%
    Expected option term           5 years    5 years  5 years

                               29
<PAGE>

Following is a summary of transactions of incentive stock options
during the three fiscal years ended in 2004:

                                                 Weighted
                                      Number     Average
                                        of       Exercise
                                      Shares      Price
                                      ------      -----

       Outstanding at February 2001
        (211,688 shares
         exercisable)                794,500     $ 9.86
       Granted                        65,000       7.90
       Terminated                    (55,500)     17.21
                                     -------

       Outstanding at February 2002
        (291,375 shares
         exercisable)                804,000       9.20
       Granted                        35,000      13.28
       Terminated                     (6,750)     10.84
       Exercised                     (64,500)      9.19
                                     -------

       Outstanding at February 2003
        (376,438 shares              767,750       9.37
         exercisable)
       Granted                        40,000      12.46
       Terminated                    (47,750)     11.34
       Exercised                     (60,825)     11.42
                                     -------

       Outstanding at February 2004
        (445,425 shares
         exercisable)                699,175     $ 9.23
                                     =======     ======


The  following table summarizes information about incentive stock
options outstanding at fiscal year ended 2004:

<TABLE>
<CAPTION>               Options Outstanding         Options Exercisable
                   -----------------------------    -------------------
                               Weighted
                                Average
                               Remaining  Weighted             Weighted
                              Contractual  Average              Average
    Exercise         Number       Life    Exercise     Number  Exercise
     Prices       Outstanding (In Years)   Price    Exercisable  Price
 ---------------  -----------  ---------  --------  -----------  -----
 <S>              <C>         <C>        <C>        <C>         <C>
 $7.06 to $10.31   568,675       5.5     $  8.58      377,425  $  9.08
  11.06 to 12.00    90,000       4.9       11.34       60,000    11.18
  13.28 to 15.63    40,500       8.3       13.67        8,000    13.34
                   -------                            -------
  7.06 to 15.63    699,175       5.6        9.23      445,425     9.44
                   =======                            =======
</TABLE>

                               30
<PAGE>

(6)  Income Taxes

The components of the provision for income taxes for fiscal years
ended 2004, 2003, and 2002 are (in thousands):

                                    2004     2003    2002
                                    ----     ----    ----
   Current:
      Federal                     $ 8,752  $ 8,688  $8,546
      State and local               1,127    1,040   1,051
   Deferred                         1,060     (630)   (160)
                                   ------   ------   -----
   Total provision for
    income taxes                  $10,939  $ 9,098  $9,437
                                   ======   ======   =====

   Total income taxes paid        $10,208  $10,088  $8,085
                                   ======   ======   =====

The  following  summary  reconciles the  statutory  U.S.  Federal
income tax rate to the Company's effective tax rate:

                                      2004       2003     2002
                                      ----       ----     ----

   Statutory rate                     35.0%      35.0%    35.0%
   Provision for state income
     taxes, net of Federal
     income tax benefit                2.8        2.8      2.8
   ESOP pass-through dividend
     deduction                          --         --     (0.5)
   Goodwill, non-deductible             --         --      1.6
   Other                                .1%      (0.4)    (0.2)
                                     -----       ----     ----
          Effective tax rate          37.9%      37.4%    38.7%
                                      ====       ====     ====


The  components of deferred income tax assets and liabilities are
summarized as follows (in thousands) for fiscal years ended:


                                              2004      2003
                                              ----      ----
     Current deferred asset:
       Allowance for doubtful receivables    $  666    $  486
       Inventory valuation                      366       392
       Employee compensation and benefits     1,346     1,797
       Other                                    235       396
                                              -----     -----
                                             $2,613    $3,071
                                              =====     =====
     Noncurrent deferred liability:
       Depreciation                          $6,480    $7,197
       Intangibles amortization and
         impairments                           (560)     (856)
       Prepaid pension cost                   2,027       966
       Partnership interest                     200       200
       Other                                    357       357
                                              -----     -----
                                             $8,504    $7,864
                                              =====     =====




                               31
<PAGE>
(7)  Employee Benefit Plans

The  Company  and  certain subsidiaries  have  a  noncontributory
defined  benefit  retirement plan covering substantially  all  of
their employees.  Benefits are based on years of service and  the
employee's average compensation for the highest five compensation
years preceding retirement or termination.  The Company's funding
policy is to contribute annually an amount in accordance with the
requirements of ERISA.

The  Company's  pension plan asset allocation  for  fiscal  years
ended 2004 and 2003 by asset category, is as follows:


                                               2004     2003
     Equities:                                 ----     ----

                  S&P 500 Index Fund            41%      36%
                  S&P Midcap Index Fund          3%       3%
     Fixed Income:
                  Low Duration Fund              4%       6%
                  Bond Index Fund               19%      27%
                  Intermediate Government /
                    Credit Bond Index Fund      18%      13%
                  Stable Return Fund            15%      15%
                                              ----     ----
     Total                                     100%     100%
                                              ====     ====


The  Company's  target asset allocation is 40% equities  and  60%
fixed  income,  with a 10% plus or minus factor  based  upon  the
combined judgments of the Company's Administrative Committee  and
its  investment advisors.  The larger than normal amounts in  the
Stable Return Funds at fiscal years ended 2004 and 2003, were the
result of cash contributions at the end of each fiscal year which
were  subsequently invested per the target asset allocation after
the respective year ends.

The Company estimates the long-term rate of return on plan assets
will  be  8%  based upon target asset allocation at  fiscal  year
ended  2004.   Expected  returns are  developed  based  upon  the
information obtained from the Company's investment advisors.  The
advisors  provide  ten-year  historical  and  five-year  expected
returns  on the fund in the target asset allocation.  The  return
information  is weighted based upon the asset allocation  at  the
end  of  the  fiscal year.  The expected rate of  return  at  the
beginning  of the fiscal year ended 2004 was 8.5%, the rate  used
in the calculation of the current year pension expense.

Pension  expense for fiscal years 2004, 2003, and  2002  included
the following components (in thousands):

                                        2004     2003     2002
                                        ----     ----     ----
     Service cost-benefits earned
       during the current period       $1,337   $1,475   $1,520
     Interest cost on projected
       benefit obligation               2,359    2,554    2,739
     Expected return on plan assets    (2,193)  (2,483)  (2,391)
     Net amortization and deferral        901      368     (236)
                                       ------    -----    -----

         Net periodic pension cost     $2,404   $1,914   $1,632
                                        =====    =====    =====


Assumptions used in accounting for the defined benefit plans  for
fiscal years 2004, 2003, and 2002 are as follows:

                                     2004       2003      2002
                                     ----       ----      ----

   Weighted average discount rate    6.50%      6.50%     7.25%
   Earnings progression              3.50%      4.50%     4.50%
   Expected long-term rate of
      return on plan assets          8.50%      9.25%     9.25%

                               32
<PAGE>


Amounts recognized in the consolidated balance sheets for fiscal
years ended 2004 and 2003 consist of (in thousands):


                                           2004       2003

     Prepaid benefit cost                 $2,852     $2,266
     Contributions                         7,100      2,500
     Net periodic pension cost            (2,404)    (1,914)
     Accumulated other comprehensive
       income                                 --     (4,982)
                                          ------     ------
     Net amount recognized                $7,548    $(2,130)
                                          ======     ======


The  accumulated  benefit  obligation  for  the  defined  benefit
pension  plan  was  $34,667,000 for fiscal year  ended  2004  and
$31,400,000 for fiscal year ended 2003.

Assets  and  obligations for fiscal years 2004 and  2003  are  as
follows (in thousands):


                                           2004        2003

   Projected benefit obligation:
   Beginning of year                     $37,445     $36,101
   Service and interest cost               3,696       4,029
   Actuarial gain (loss)                   3,274        (166)
   Benefits paid                          (3,075)     (2,518)
                                          ------      ------

   End of year                            41,340      37,446
                                          ------      ------

   Fair value of plan assets:
   Beginning of year                     $26,216     $27,714
   Company contributions                   7,100       2,500
   Net gains (losses)                      4,550      (1,480)
   Benefits paid                          (3,075)     (2,518)
                                          ------      ------

   End of year                            34,791      26,216
                                          ------      ------

   Funded status                          (6,549)    (11,230)
   Unrecognized losses and prior
     service cost                         14,097      14,082
   Additional minimum pension liability       --      (4,982)
   Unrecognized net transition asset
     being recognized over the average
     remaining service life                   --          --
                                          ------      ------

   Total pension asset (liability)      $  7,548    $ (2,130)
                                         =======     =======

(8)  Acquisitions and Disposal

On  November  14, 2002, the Company completed its acquisition  of
all  of  the  outstanding  stock of Calibrated  Forms  Co.,  Inc.
(Calibrated)  a  company  which is  principally  engaged  in  the
design,  manufacture  and  marketing of  printed  business  forms
within the wholesale business forms marketplace.  Calibrated  was
acquired to help strengthen the Company in the wholesale business
forms  marketplace.  Calibrated became a wholly owned  subsidiary
and   operates  as  part  of  the  Forms  Solutions  Group.   The
acquisition  was  financed  with an additional  $15,000,000  draw
against  the  Company's Revolving Credit Facility.  The  purchase
price  for  the  transaction was  $22,038,000,  less  liabilities
excluded  of  $7,195,060,  and  the  liabilities  excluded   were
evidenced  by two promissory notes bearing interest at 3.75%  per
annum which were paid January 3, 2003.  In addition, the Purchase
Agreement provides for additional consideration in the form of an
earn out, however, the terms were not met, and the earn out is no
longer  applicable.   The acquisition was accounted  for  by  the
purchase   method.   Approximately  $2,400,000  of  the  goodwill
related  to  the  Calibrated acquisition is  deductible  for  tax
purposes.


                               33
<PAGE>


The  following is a summary of the purchase price allocation  (in
thousands):

          Cash                                      $1,516
          Accounts receivable                        3,573
          Inventory                                    840
          Other assets                               1,308
          Fixed assets                               5,397
          Goodwill                                  12,252
          Trade name                                 1,325
          Accounts payable and accrued
            liabilities                             (4,173)
                                                    ------

               Total purchase price                $22,038
                                                    ======


The  accompanying consolidated financial statements  include  the
operations  of  Calibrated since the date  of  acquisition.   The
following table presents certain operating information on  a  pro
forma basis as though Calibrated had been acquired as of March 1,
2001, after including the estimated impact of adjustments such as
amortization  of  intangible assets,  interest  expense,  reduced
interest income and related tax effects (in thousands, except per
share amount) for the fiscal year ended:

                                            Unaudited
                                              2003
                                              ----
      Pro forma net sales                   $270,125
      Pro forma net earnings                  15,581
      Pro forma net earnings per share -
        diluted                                  .95


The  pro  forma  results are not necessarily indicative  of  what
would have occurred if the acquisition had been in effect for the
period presented.


                               34
<PAGE>


(9)  Goodwill and Other Intangible Assets
     ------------------------------------

Goodwill  represents the excess of the purchase  price  over  the
fair value of net assets of acquired businesses.  Effective March
1,  2002,  the Company adopted Statement of Financial  Accounting
Standards  No. 142, "Goodwill and other Intangible Assets"  (SFAS
No.  142).   Under  the provision of SFAS No. 142,  goodwill  and
intangible assets deemed to have indefinite lives are  no  longer
amortized  but  are  subject  to  annual  impairment   tests   in
accordance with the statement.

The Company's initial review for impairment of goodwill and other
intangible  assets  performed  during  fiscal  year  ended   2002
indicated  no  impairment of these assets as of  March  1,  2002.
During  the fourth quarter of fiscal year ended 2004, the Company
performed its annual review for impairment of goodwill and  other
intangible  assets as of fiscal year ended 2004.  Based  on  this
review,  no  impairment  was recorded.   The  Company  must  make
assumptions  regarding  estimated future  cash  flows  and  other
factors  to determine the fair value of the respective assets  in
assessing   the   recoverability  of  its  goodwill   and   other
intangibles.   If  these  estimates or  the  related  assumptions
change,  the Company may be required to record impairment charges
for these assets in the future.

Prior  to the adoption of SFAS No. 142, amortization expense  was
recorded  for  goodwill  and  other intangibles  with  indefinite
lives.   The following table sets forth a reconciliation  of  net
earnings  (in  thousands) and net earnings per share  information
for  the three fiscal years ended 2004 as though SFAS No. 142 had
been in effect at the beginning of fiscal year ended 2002.

                                       2004     2003     2002
                                       ----     ----     ----

     Reported net income             $17,951  $15,247  $14,966
     Goodwill amortization, net of
       tax benefit                        --       --      973
                                      ------   ------   ------

     Adjusted net income             $17,951  $15,247  $15,939
                                      ======   ======   ======

     Diluted earnings per share:
      Reported net income            $  1.08  $   .93  $   .92
      Goodwill amortization, net
        of tax benefit                    --       --      .06
                                      ------   ------   ------

      Adjusted diluted earnings
        per share                    $  1.08  $   .93  $   .98
                                      ======   ======   ======


The cost of purchased trade names is based on appraised values at
the date of acquisition and is amortized on a straight-line basis
over  the  estimated useful life (10 years) of such trade  names.
The  Company  assesses the recoverability of  its  definite-lived
intangible  assets primarily based on its current and anticipated
future  undiscounted cash flows.  At fiscal year ended 2004,  the
Company  does  not believe there has been any impairment  of  its
intangible   assets.   The  Company  expects  to  record   annual
amortization  expense of approximately $132,000  in  fiscal  year
ended 2005, $132,000 in 2006, $132,000 in 2007, $132,000 in  2008
and  $132,000  in  2009 related to its intangible  assets  as  of
fiscal year ended 2004.

The  changes  in the carrying amount of goodwill for  the  fiscal
years ended 2003 and 2004 are as follows:

                      Forms   Promotional  Financial
                    Solutions  Solutions   Solutions
                      Group      Group      Group     Total
                      ------     ------     ------    ------
   Balance as of
     March 1, 2002  $  1,358  $  6,579     $14,014   $21,951
   Goodwill
     acquired
     during the year  12,290        --          --    12,290
                     -------    ------      ------   -------


   Balance as of
     March 1, 2003    13,648     6,579      14,014    34,241
   Goodwill
     acquired
     during the year     179        --          --       179
                      ------    ------      ------    ------

   Balance as of
     fiscal year
     ended 2004      $13,827   $ 6,579     $14,014   $34,420
                      ======    ======      ======    ======

                               35

<PAGE>


(10) Related Party Transaction
     --------------------------
On  December 18, 2002, the Company purchased its new headquarters
site  from  the  Corporation  for  the  Economic  Development  of
Midlothian, a special purpose corporation ("Corporation"),  which
is  an affiliate of the City of Midlothian, Texas.  This site was
formerly owned by a corporation which is an affiliate of  Kenneth
G.  Pritchett,  a Director of the Company, and is  located  in  a
business  park  which is being developed by Mr.  Pritchett.   Mr.
Pritchett  has  owned  and  developed  a  substantial  amount  of
commercial real estate in this area for many years.   An  ad  hoc
committee  of the Board, of which Mr. Pritchett was a  non-voting
member, conducted an extensive search for a new site in the  area
and  concluded  that this site was the most suitable  for  Ennis.
Ennis  had  previously  held  discussions  with  the  Corporation
regarding  its  policy of purchasing, developing  and  re-selling
business  sites as a matter of policy to attract new business  to
the city to increase its tax base.  After the site was identified
by  the Committee and approved by the Board, Ennis indicated  its
interest in purchasing the property from the Corporation, and the
Corporation  then purchased the property from Mr.  Pritchett  for
$780,000  on  December  12, 2002, below  independently  appraised
value.  Subsequently, on December 18, 2002, the Corporation  sold
the  property  to Ennis at the same price.  However,  Ennis  will
receive  a  $300,000  cash  incentive  from  the  Corporation  on
occupancy.  Mr. Pritchett is not a member of the Midlothian  city
council nor an officer or director of the Corporation and did not
participate  in the negotiation of the price of the  property  to
Ennis.   The Corporation had the power and authority to  make  an
independent  decision  to  sell the  property  to  Ennis  and  to
determine the sale price.  The selection and purchase of the site
was  unanimously  approved  by  the  Board,  with  Mr.  Pritchett
abstaining.









                               36

<PAGE>


(11) Segment Information

The  Company  operates  three  business  segments.   The  Forms
Solutions  Group is primarily in the business of  manufacturing
and  selling business forms and other printed business products
to  customers  primarily  located in the  United  States.   The
Promotional  Solutions  Group is  comprised  of  Adams  McClure
(design,  production and distribution of printed and electronic
media),   Admore   (presentation  products)  and   Wolfe   City
(flexographic  printing,  advertising specialties  and  Post-it
(registered  trademark) Notes).  On June 6, 2000,  the  Company
acquired  Northstar (manufacturer and seller of  official  bank
checks, money orders, and internal bank forms) which became the
Financial  Solutions Group.  On November 14, 2002, the  Company
acquired  Calibrated which became part of the  Forms  Solutions
Group.   Corporate information is included to reconcile segment
data  to  the  consolidated financial statements  and  includes
assets   and  expenses  related  to  the  Company's   corporate
headquarters and other administrative costs.  Segment data  for
the  fiscal years ended 2004, 2003 and 2002 were as follows (in
thousands):

<TABLE>
<CAPTION>           Forms    Promotional  Financial
                  Solutions   Solutions   Solutions             Consolidated
                    Group       Group       Group    Corporate     Totals
                    -----       -----       -----    ---------     ------
 <S>              <C>         <C>         <C>        <C>          <C>
 Fiscal year
   ended
   2004:
 Net sales        $142,006    $67,024     $50,330     $    --     $259,360
 Depreciation        3,288      2,355       2,959         614        9,216
 Amortization          132         --          --          --          132
 Segment earnings
   (loss) before
   income taxes     21,830      7,433       6,876      (7,249)      28,890
 Segment assets    100,053     32,726      15,633       5,631      154,043
 Capital
   expenditures      1,408        620       1,011       1,504        4,543

 Fiscal year
   ended
   2003:
 Net sales        $118,763    $70,847     $51,147     $    --     $240,757
 Depreciation        2,829      2,320       3,174         833        9,156
 Amortization           38         --          --          --           38
 Segment earnings   18,850      6,670       4,916      (6,091)      24,345
   (loss) before
   income taxes
 Segment assets     71,595     36,355      39,730       4,857      152,537
 Capital
   expenditures        631        699         772       1,661        3,763

 Fiscal year
   ended
   2002:
 Net sales        $113,390    $73,496     $50,037     $    --     $236,923
 Depreciation        2,460      2,322       3,378         523        8,683
 Amortization          106        392       1,115          --        1,613
 Segment earnings
   (loss) before
   income taxes     20,514      7,354       2,422      (5,887)      24,403
 Segment assets     55,260     36,671      41,831       5,272      139,034
 Capital
   expenditures        685        416         734         419        2,254
</TABLE>

"Post-it" is a registered trademark of 3M.



                               37
<PAGE>

(12) Quarterly Information (Unaudited)
(In thousands, except per share amounts)

<TABLE>
<CAPTION>                         For the Three Months Ended
                                  --------------------------
                               May 31   August 31   November 30 February 29
                                -----   ---------   ----------- -----------
<S>                           <C>       <C>         <C>         <C>
 Fiscal year ended 2004:
      Net sales               $64,874   $65,003      $66,398     $63,085
      Gross profit             16,550    17,507       17,574      16,917
      Net earnings              4,104     4,497        4,475       4,875
      Dividends paid            2,533     2,535        2,537       2,541
      Per share of common
        stock:
          Basic net earnings      .25       .28          .27         .30
          Diluted net             .25       .27          .27         .29
           earnings
          Dividends              .155      .155         .155        .155

                               May 31   August 31   November 30 February 28
                               ------   ---------   ----------- -----------
 Fiscal year ended 2003:
      Net sales               $57,743   $56,646      $59,151     $67,217
      Gross profit             15,004    15,596       15,591      17,081
      Net earnings              3,300     3,817        3,675       4,455
      Dividends paid            2,522     2,524        2,524       2,523
      Per share of common
        stock:
          Basic net earnings      .20       .24          .23         .27
          Diluted net
            earnings              .20       .23          .23         .27
          Dividends              .155      .155         .155        .155
</TABLE>









                               38
<PAGE>
(13) Commitments

The  Company  leases its facilities under operating  leases  that
expire  on various dates through fiscal year ended 2008.   Future
minimum  lease commitments required under noncancelable operating
leases  for  each of the fiscal years ending are as  follows  (in
thousands):

                           2005   $ 1,361
                           2006       465
                           2007       209
                           2008       106
                           2009         4
                           --------------
                           Total  $ 2,145
                           ==============

Rent  expense  attributable  to such leases  totaled  $2,024,000,
$2,120,000, and $1,971,000 for the fiscal years ended 2004, 2003,
and 2002, respectively.

In  the ordinary course of business the Company also enters  into
real  property  leases, which require the Company  as  lessee  to
indemnify  the  lessor  from  liabilities  arising  out  of   the
Company's   occupancy   of   the   properties.    The   Company's
indemnification  obligations  are  generally  covered  under  the
Company's general insurance policies.

The  Company  is  party  to various claims,  legal  actions,  and
complaints  arising  in  the ordinary  course  of  business.  The
Company  is self-insured with respect to potential losses related
to  workers' compensation claims.  The Company maintains reserves
for  anticipated self-insurance losses.  Although the results  of
any  litigation  or  claim  cannot be predicted  with  certainty,
management  believes that the outcome of pending  litigation  and
claims,   when  considered  in  conjunction  with  self-insurance
reserves established, will not have a material adverse effect  on
the  Company's financial position, results of operations or  cash
flows.









                               39
<PAGE>



                 Report of Independent Auditors



Board of Directors and Shareholders
Ennis Business Forms, Inc.

We  have audited the accompanying consolidated balance sheets  of
Ennis  Business Forms, Inc. and subsidiaries (the Company) as  of
February  29,  2004  and  February  28,  2003,  and  the  related
consolidated  statements  of earnings, shareholders'  equity  and
cash  flows for the three years in the period ended February  29,
2004.   These financial statements are the responsibility of  the
Company's  management.   Our  responsibility  is  to  express  an
opinion on these financial statements based on our audit.

We  conducted  our  audits in accordance with auditing  standards
generally accepted in the United States.  Those standards require
that we plan and perform the audit to obtain reasonable assurance
about  whether  the  financial statements are  free  of  material
misstatement.   An  audit includes examining, on  a  test  basis,
evidence  supporting the amounts and disclosures in the financial
statements.   An  audit  also includes assessing  the  accounting
principles used and significant estimates made by management,  as
well  as evaluating the overall financial statement presentation.
We  believe  that our audits provide a reasonable basis  for  our
opinion.

In our opinion, the consolidated financial statements referred to
above  present fairly, in all material respects, the consolidated
financial position of Ennis Business Forms, Inc. and subsidiaries
as   of  February  29,  2004  and  February  28,  2003,  and  the
consolidated results of their operations and their cash flows for
the  three  years  in  the period ended  February  29,  2004,  in
conformity with accounting principles generally accepted  in  the
United States.

As  discussed  in Notes 1 and 9 to the financial  statements,  in
2003 the Company changed its method of accounting for goodwill.


                                   /s/ Ernst & Young LLP


Dallas, Texas
April 14, 2004









                               40