Contents

     2  Letter To Shareholders
     6  Leading The Way
     8  Forms Solutions Group
    10  Promotional Solutions Group
    12  Financial Solutions Group
    14  Selected Financial Data
    14  Management's Discussion and Analysis
    18  Ten-Year Financial Review
    20  Consolidated Financial Statements
    36  Independent Auditor's Report



Annual Summary
--------------

<TABLE>

<CAPTION>                                  Fiscal Year Ended
                                 February 28, 2002    February 28, 2001   % Increase
                                 -----------------    -----------------   ----------
<S>                                <C>                  <C>                  <C>
Net Sales                          $236,923,000         $229,186,000          3.4%
Earnings before income taxes         24,403,000           21,571,000         13.1
Income taxes                          9,437,000            8,394,000         12.4
Net earnings                         14,966,000           13,177,000         13.6
Dividends                            10,089,000           10,075,000           .1
Per share of common stock:
   Diluted earnings                         .92                  .81         13.6
   Dividends                                .62                  .62           --
Weighted average number of
   shares of common stock
  outstanding - diluted              16,318,718           16,257,897           .4


</TABLE>
                                1
<PAGE>
Letter to the Shareholders

Our goals for fiscal year 2002 were primarily in the areas of
integrating our acquisition of the Financial Solutions Group,
improving operations in the Promotional Solutions Group, and the
development of new market channels in the Forms Solutions Group.
The revenues of our Company have grown by 34.2% in the last two
years, and a period of internal focus was appropriate.

As the year began, we had no idea of the challenges that would
face our country during the 2002 fiscal year.  As the events of
9/11 unfolded, the business climate took a bearish turn, which
influenced the economy, the rest of the year.  The impact on the
stock market was dramatic, further dampening economic and
consumer activity.  In this cautious environment, our planned
internal focus for the year proved to be a prudent strategy.

Promotional Solutions Group

Our first area of concentration was in resolving the problems we
had encountered in the Promotional Solutions Group last year.  As
explained in the previous annual report, the consolidation of
facilities into the Denver operations and additional new business
opportunities caused problems, which impacted our fourth quarter
of fiscal year 2001.  Those problems were eliminated in the first
quarter of 2002, and the Promotional Solutions Group was able to
return to its planned role.  While FY 2002 was an extremely poor
year for the advertising business, (a major market segment for
our group), Adams McClure, our recent acquisition and major entry
in this market, was able to grow 23%, and return cash flow and
profits to the acquisition model expectations.  In addition, our
opportunities in the Point-of-Purchase (POP) market continue to
look positive.  We expect to see continued growth in this arena,
with continued focus on improving the profitability.

Financial Solutions Group

The Financial Solutions Group continues to be a very successful
acquisition.  While the market in general was soft last year,
Northstar continued to increase its market share in several key
products.  We were pleased to announce the extension of our
contract with Travelers Express Company.  This contract is for
the printing and fulfillment of negotiable documents, and will
continue through 2005.  After a decline in activity in the
previous year, the General Financial Supply (GFS) division of
Northstar experienced growth through FY 2002.  The impact of
consolidation in the financial services industry is a major
driver in this market.  General Financial Supply's primary
facility in Nevada, Iowa will gain significant building space
this year.  An agreement has been reached with the city of
Nevada, Iowa to do a like-kind exchange for a larger building.
The new building will increase our available manufacturing and
warehouse space by 150%, without a major increase in operating
expenses.  This will enable GFS to better serve the internal bank
forms market, which includes items such as bank envelopes, cash
tickets, teller receipts and other products.  The cash flow from
the Northstar companies continues to be strong and has been more
than sufficient to service the debt incurred to purchase
Northstar.


                                2
<PAGE>

Forms Solutions Group

The Forms Solutions Group continues to lead the forms industry in
its financial performance.  We believe that the management of the
operations in this group is the primary reason we enjoy the
industry's best returns.  Our successful implementation of a
proprietary planning and control package over the last three
years is a key to our success.  This process enables our managers
to anticipate problem areas very early in a business cycle, and
take the appropriate actions before excess costs are incurred.
The past year was an excellent example of their ability to make
timely adjustments.  As the economy slowed early in the year, and
then cooled much faster after 9/11, they reacted quickly to the
information which the system provided.  New internal software
from our major software upgrade will only further enhance this
capability.  With all the inherent problems and risks in changing
to an enterprise software system, we are happy to report that we
have a number of plants now operating well on the new platform.
We will substantially add to that number of plants in fiscal year
2003.

The Forms Solutions Group remains firmly committed to its
position as a partner to the reseller community.  We are
gratified to see the distributor market continuing to make
strides in gaining additional market share from the direct
selling channel.  We believe this is a testament to the added
service the distributor channel delivers to the end user.   One
of the most important services that this channel offers the
customer is their vast experience in printing and fulfillment.
Ennis has responded to our resellers by adding additional
products, warehousing and fulfillment capabilities.  We are also
finding new paths to the end user through our reselling partners.
We hope to see these initiatives fully develop in the coming
year.

Fiscal Year 2002 Results

Our goal of internal focus and increased earnings was achieved.
Specifically, for the fiscal 2002 twelve-month period, the
Company reported net earnings of $14,966,000 or $.92 per diluted
share, compared with net earnings of $13,177,000 or $.81 per
diluted share for the fiscal 2001 year.  This was a 13.6%
increase over last year.  Net sales amounted to $236,923,000 as
compared to $229,186,000 for the same period last year, an
increase of 3.4%.

Financial Condition

Our financial condition remains very strong.  As of February
2002, the ratio of current assets to current liabilities was 2.6
to 1 with a debt to equity ratio of .1 to 1.  Our Return on
Equity amounted to 16%.  The acquisition debt has been reduced
from $36,500,000 at the time of purchase, to $16,900,000 in just
21 months.

Financial reporting is an area that has received an extreme
amount of press recently.  Ennis is proud to say that we have
continued to follow a very conservative approach in our reporting
to our shareholders.  We continue to accomplish our results
without resorting to restructuring charges, an achievement dating
back to 1972.


                                3
<PAGE>

We have not and will not use alternate reporting formats,
generally characterized by the term pro forma, to communicate our
financial results.  While recognizing that such reporting methods
are quite common in public companies today, we believe that
Generally Accepted Accounting Principles (GAAP) is the only
standard to report financial results, and creates less confusion
for the investor.  Except as required by GAAP, no pro forma
operating results are included in the Company's financial
statements and related footnotes.



Dividend Policy

The Company's dividend policy will continue to be an important
part of our delivery of value to our shareholders.  A sustained
dividend payment provides a strong indication of a company's
financial health.  Ennis shareholders enjoyed a dividend of $.62
a share last year.  In a difficult year for the stock market,
many Ennis shareholders called to express their comfort with the
reliability of the dividend check each quarter.  While we
recognize that not all investors see dividends in this light, we
are still proud of the fact that Ennis has now paid a dividend
for 29 consecutive years.  The Board of Directors and Company
Management will continue to review various uses of the company
cash on a regular basis, but it is our belief that the dividend
is of great importance to the majority of our stockholders.  With
our continued excellent cash flow, the Board of Directors does
not anticipate a change in the Company's dividend policy.

Moving Forward

There was no acquisition activity for the past year, as was the
plan.  As you read earlier, we concentrated our cash flow on
retiring debt.  The printing industry continues to provide buying
opportunities for companies in a stable financial position.  We
will investigate those companies for products that add value to
the Ennis product offering, or bring a new service to our
customer base.  Several companies are currently available at the
time of this printing.  We will continue to investigate, but
remain committed to buy only good value at a fair price.  We have
learned from many examples in the industry that buying at a
reasonable price is the first step in a successful acquisition.
Ennis intends to continue to be conservative in investing its
shareholder's assets.

The cross-selling of Ennis products to customers of the three
product groups is a major opportunity for fiscal 2003.  We now
have multiple success stories of customer migration between our
business units.  At our annual management meeting this past
February, a major theme of our agenda was cross-selling to our
customers.  The first challenge has been to educate our own
workforce to the diverse product offering now available from
Ennis.  As that process continues, we are seeing success with our
current forms customer base.  Recent activity includes Point-of-
Purchase products sold through large distributors, resellers and
manufacturing companies.  The Financial Solutions Group has
delivered several new opportunities to the Forms Solutions Group,
and the reverse is also true.


                                4
<PAGE>

The Ennis National Marketing Department is now playing a larger
role in directing this activity, and has recently developed
product literature to assist our resellers in understanding the
entire Ennis line of printed products.  We believe that the
coming year will see a meaningful increase in this type of
activity.

We would like to thank our shareholders, customers, and employees
for their continued support.  While it has been a difficult year
for our country and its citizens, the Ennis operations
concentrated on the work at hand and delivered a profitable year.
Our constant commitment to increasing shareholder value through
solid fiscal and operating decisions will continue as the
platform of our future.



Keith S. Walters
Chairman, CEO & President

                                5
<PAGE>

Leading the Way

Through Times of Change

Ennis continues to set an industry standard through times of
change by constantly thinking of new ways to provide printed
business product solutions; to expand through internal growth and
acquisitions; and to strategically plan for tomorrow's changes in
the industry. We will continue to lead the way in our industry
today, tomorrow and long into the future, through strength in
history, connecting with customers and providing solutions.

Through Strength of Our History

Ennis is among the largest private-label printed business
products suppliers in the United States.  Founded in 1909, we
have established ourselves as an industry leader built on quality
products and solid financial ground. We began with tags to serve
the cotton farming industry and later introduced sales books.
Ennis established a foundation that has been preserved over the
years. Register and multi-part forms were next, which brought
about the business forms and supplies line, labels and software
compatible forms and checks. Advancements enabled Ennis to
improve upon its existing product line to provide advertising
specialties, presentation products, awards and ribbons,
commercial printing, adding more facilities and Ennis employees.

In the last few years, Ennis acquired the Adams McClure and
Northstar companies.  These acquisitions enabled Ennis to further
diversify its product offering with Point-of-Purchase displays,
packaging, lenticular items, internal bank forms and negotiable
documents.  Today, 29 manufacturing facilities in 12 states
comprise the complete product distribution network, offering
unmatched national coverage to compliment its diverse product
offering.  Because of Ennis' history of strength and continued
growth, we are able to connect with our customers on the quality
products and solutions they require.

Through Connecting With Customers

Ennis continues to have strength by connecting with our
customers. Connecting with customers just doesn't happen
overnight. It comes from understanding who they are today and
designing products and services that they need for tomorrow.  By
connecting with our customers, we have changed our operating
structure with the formation of distinct solutions groups to
concentrate on our Company's historical strengths, while moving
toward aggressive solutions.  By finding out what the customer
needs, Ennis has obtained an ever-growing number of distributors.
Ennis is able to research, develop and manufacture products to
keep up with the demands of the ever-changing marketplace.


                                6
<PAGE>

The Ennis HOT Line was recently relocated from Ennis, Texas to
the corporate office in DeSoto, Texas, as part of a refocusing
effort. Now more than ever the HOT Line will act as a liaison
connecting the Ennis network with our customers.  This improved
connection will insure that we are constantly in touch with
customer issues and are able to address opportunities as soon as
they arise.

Another part of this refocus is providing marketing materials,
such as promotional catalogs, brochures and postcards. Improved
customer service allows us to better serve our customers and
provide quality solutions that they have come to expect from
Ennis.

Through Providing Solutions

The range of our Company's line of products is constantly
broadening thanks to the three solutions groups - Forms,
Promotional and Financial - research efforts to improve products,
and anticipate needs for new applications.  With these solutions
groups, Ennis serves its customers as a "one-stop" source for an
extensive line of traditional, as well as non-traditional printed
business products.

Providing solutions with product selling tools to educate our
customers on what Ennis manufactures and helping them provide
solutions to their customers, continues to be the focus of our
National Marketing Department.  Our new corporate image campaign
has succeeded over the last year to provide high quality graphic
design and marketing strategies through mediums of advertising.

Ennis also provides personalized service to its customers through
its Cooperative Marketing Program.  The program allows
distributors to purchase promotional literature, such as
catalogs, brochures and postcards, blank or personalized with
their company information, as well as a program for distributor
versions of Ennis' online stores.


Through Our Continued Success

Indeed, much was accomplished in our history to provide a solid
foundation that allows Ennis to continue to grow.  Our stability
and ability to connect with and provide solutions for our
customers, enables Ennis to continue our focus of satisfying our
customers and leading the way to a successful future.


                                7
<PAGE>

Forms Solutions Group

Stability in an Unstable Marketplace

The events of this past year have and continue to have a dramatic
effect on our industry and our nation.  Ennis' Forms Solutions
Group is no exception and the group's FY 2002 figures reflect the
challenges many in our country have had to face.

The Forms Solutions Group, while never satisfied with a sales
decline, should nonetheless be proud of the overall results in
very uncertain economic times. Few, if any, companies in our
industry are able to match our group's overall performance.

The Forms Solutions Group remains the leading wholesale
manufacturer of traditional business forms and related products.
The group's fourteen manufacturing facilities located across the
country enable customers to not only choose from an extensive
product offering, but also choose the plant location, which best
serves their geographic need.

The Forms Solutions Group recognizes the importance of its
financial stability to our shareholders, our customers and our
industry. The Forms Solutions Group understands the commitment
that Ennis Business Forms, Inc. has made to the business forms
industry and is confident that the group will continue to lead
and prosper in this segment for many years.

We have the ability to build on our strengths and advantages and
also recognize and react to change when necessary.

Building on Our Advantages

One of the strengths of our group continues to be a large diverse
customer base. As we move forward, we must capitalize on this
advantage by leveraging our relationship with these customers
into more and broader product sales.

FY 2002 was our first full year with three distinct groups. This
past year the Promotional, Financial, and Forms Solutions Groups
learned about each other's products, processes, customers, and
markets and have had some success at cross-selling. The groups
have committed in FY 2003 to use our customer relationship
strengths to capitalize on this opportunity.

Acquisitions and consolidations have resulted in standardization
and aggregate purchasing, providing Ennis with a competitive
advantage.  Our nationwide network of manufacturing plants,
provide the resources and capacity to develop single source
solutions for end-users through our distributors, and yet deliver
from our regional facilities.  This minimizes freight time and
costs.


                                8
<PAGE>

Each year we continue to see consolidation within our industry.
Competitors, customers, and suppliers either consolidate (bought,
sold or merged) or simply cease to exist. There is a clear
reduction in industry capacity, with the result being widespread
consolidation.  In this environment vendors and customers are
seeking a stable, dependable, and reliable manufacturer of
business forms.  Ennis is rapidly becoming the manufacturer of
choice.

We have added equipment and upgraded existing production
equipment to better serve the market demand.   The supply chain
we now bring to the market reduces cycle time and product costs.
The low debt load of Ennis provides an operating maneuverability
and stability rare in our industry today.  Pro-distributors,
printers, and even direct sell manufacturers are seeking
partnerships with Ennis as the preferred source for the future.
In the past, distributor penetration of the Fortune 1000 and even
Fortune 500 accounts with Ennis products was difficult.  Ennis
produced products have now begun flowing to and through this
segment, and the future holds a number of exciting opportunities
for Ennis and their distributors in this regard.

Creating Opportunities

The rock solid financial base of our company has allowed us to
plan for the future, developing specific value-added programs for
market channels and customer segments.

With the combined efforts of the three solutions groups, Ennis
offers the most comprehensive product offering in the industry.
More attention has been focused on leveraging existing
relationships company-wide to allow the full breadth of Ennis'
product line to be offered to clients searching for business
forms and other product solutions.  Plant managers are all
devoting significant time creating opportunities through a
company-wide formal CRM (Customer Relationship Management)
Program.

Current Ennis programs are in place to help the distributor in
the selling process.  Selling tools such as end user directed
marketing materials, e-commerce and Internet solutions, as well
as the knowledge supplied from Ennis personnel are helping our
distributor base.

To grow we must help these distributors in their selling efforts.
The Forms Solutions Group recognizes this as a natural evolution
in our industry. These circumstances will offer challenges and
change for our group in the future, and we are positioned well to
evaluate these opportunities.


                                9
<PAGE>

Promotional Solutions Group

Looking Back

The fiscal year 2002 has been a year of transition for the
Promotional Solutions Group.  This transition has been a result
of both internal changes within the company and external factors
related to the industry and the economy.  Our internal structure
has been strengthened, and as a group we have been able to
provide our customers with innovative promotional solutions
during the challenging times presented by the economy and events
of the past year.

In early last year, Adams McClure went through a time of
restructuring and renewed focus in order to overcome inadequate
financial results following the consolidation of operations into
the Denver plants during fiscal year 2001.  The result was a
change in management structure, evaluation and elimination of
unprofitable product lines and business segments, and an
aggressive cost reduction program.  Through all the changes, we
remained focused on our core strengths and a business objective
that would provide sales growth.  Adams McClure accomplished
overall sales growth during the past year of 23%, despite a
reduction in sales revenue associated with the elimination of non-
profitable accounts, low margin business segments, and the
transfer of business to other Ennis locations.  The Promotional
Solutions Group's fiscal 2002 sales were $73,496,000  compared to
$72,642,000 in 2001.  Utilizing a strong track record with major
corporate customers, we have expanded business within our current
client base as well as developed new customers.  In both cases,
we were able to build strong customer relationships because we
fulfill the need for quality, dependability, and comprehensive
capabilities which allow our customers to successfully produce
and distribute large promotional programs.  The impact of these
changes during the past year has resulted in an improvement of
$3.6 million in profit, when comparing 2002 and 2001.

Admore has implemented a new marketing strategy to grow through
traditional presentation product sales, as well as unique custom
designed programs.  This new marketing campaign and a lower,
competitive, price strategy has shown returns in the first few
months of implementation.  We are aggressively promoting the new
Admore to our customers through our new catalog, sales kit and
advertising campaign.  Additional marketing tools used to cross-
sell to the Forms Solutions Group's customers have opened up new
opportunities.

The Wolfe City Tag & Label facility continues to develop new
products.  These new products are the result of customer
requests, equipment refitting efficiencies, as well as employee
developed programs.  We anticipate these changes will allow for
additional opportunities through our traditional distributors in
the Forms Solutions Group and new opportunities from our
Promotional Solutions Group partners.

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 to preserve profits or reduce losses.  As companies
focused on maintaining market share and consumer confidence, they
looked for cost-effective ways to promote products and services.


                               10
<PAGE>

The Promotional Solutions Group product line of Point-of-Purchase
(POP) advertising, labels, presentation products and temporary
promotional programs provided solutions of accomplishing that
goal for our customers.  As our customers looked for solutions
that allowed them to react quickly to a changing economy, we were
prepared to provide the experience, capability, capacity and
quality necessary to produce complete promotional programs in
very short time frames.

Moving Forward

The Promotional Solutions Group continues to look at cost
reduction measures in an effort to further improve profitability,
and we will continue to utilize a refined marketing effort that
presents our ability to provide the promotional solutions that
our customers need.

Our ability to react quickly to the needs of our customers
presents many challenges.  Production processes must be
effectively managed in order to produce efficiently, while
maintaining the flexibility needed to accommodate last minute
changes demanded by the marketplace.  We are improving our
integrated and centralized estimating, scheduling, and job
costing system to provide the tools and information necessary to
manage our manufacturing processes effectively.  An improved
purchasing system implemented last year continues to assign the
raw materials that are needed in the most cost effective manner,
while maintaining inventory balances at the lowest possible
levels.  The Promotional Solutions Group plants continue to work
together to develop complete programs.  We also provide
opportunities to other Ennis facilities based on their capability
to produce elements within large promotional programs. We will
continue to provide the most cost effective options for our
customers.

As we enter a new year, the prospect for continued sales growth
looks very good.  The business climate is improving, and if the
economy improves, corporations will continue to develop
advertising campaigns which utilize promotional printing in an
effort to increase market share.  We plan to continue our
marketing campaign to our current channels in order to increase
overall company awareness, with additional emphasis on the
successful programs we currently manage.  We look forward to
continued sales growth by expanding services to our existing
clients, and by expanding our customer base.

The Promotional Solutions Group's focus will continue to be on
providing a complete, one-stop, resource for advertising and
promotional programs.  We will continue to develop and
incorporate new technologies and capabilities that allow us to
provide a more fully integrated program for our customers.  As
new opportunities evolve, and as the promotional market continues
to demand quick reaction and accurate execution, we will have the
technology, capability, and expertise to meet those requirements.


                               11
<PAGE>

Financial Solutions Group

The Financial Solutions Group performed well during this year of
economic change.  We experienced a growth in revenue and an
increase in profit.  The group is comprised of five plants that
provide products and services for the financial industry.  These
plants are the former Northstar Computer Forms which was acquired
by Ennis in June of 2000.  The group is divided into four
business segments:  internal bank forms, negotiable documents,
business forms, and distribution services.  Northstar uses
multiple channels of distribution to provide products and
services to the four market segments.  Most of the business is
sold through distributors and manufacturing reps. Internal bank
forms are also sold to the Top 200 banks in the country and to
the major printing companies in the forms industry.  The end
users include financial institutions and processors of MICR
encoded documents.

The Economy

Financial institution acquisitions and divestitures slowed as a
result of the economy this past year.  This gave our group the
opportunity to focus attention on internal programs.  Northstar
has now completed a full fiscal year as a part of the Ennis
family.  The transition has been smooth and the opportunity to
cross-sell products and services, even in the more difficult
economic conditions, has been an improvement over the prior year.
Northstar continues to be the leading provider of internal bank
forms and negotiable products in the industry.  Last year was a
near record year in spite of economic softness.

Internal Focus

The slower economy provided the group with a chance to
concentrate on improving products and services to existing
customers.  The major accomplishment for the year was obtaining a
three-year extension of our official check and money order
contract with Travelers Express Company.  We provide 100% of the
MICR requirements for this financial item processor.

In last year's annual report, we spoke of the integration and
cross-selling of the Forms Solutions Group's and the Financial
Solutions Group's products and services to Safeguard Business
Systems.  Northstar created a digital print-on-demand laser
printing solution for Safeguard in the production of their
business check requirements, including commercial deposit tickets
and stamps.  This provided extensive use of laser printing
technology which eliminated film, proofs, printing plates, and
mechanical numbering machines.

The group made presentations to four of the Top 200 banks and
received additional business from three of them.  Many of the
larger banks are looking for solutions in laser printing, e-
commerce, image processing, and total forms management.

                               12
<PAGE>

Northstar has the technology and capacity to offer a turn-key
solution. The volume of internal bank forms should increase as
the economy recovers and bank mergers/acquisitions heat up again.

In our efforts to expand products and services, we started a
program to furnish check base stock to several of our key
distributors.  This check stock, which exceeds all ANSI
standards, is used by banks with their own table-top laser
printing systems.  It is an excellent way for banks to be assured
they are using the latest materials that combat fraud and
counterfeiting.

The Company is focusing on expanding business in the negotiable
documents area.  Currently we are operating under a letter of
intent and negotiating a contract with a major MICR item
processor.  This customer approached Northstar because of their
MICR expertise and ability to print and distribute secure
documents.  A selling point was our ability to use the Internet
to process color proofs, to place orders, and to track shipping
information.

Future Direction

This past year, the greatest change in operations revolved around
e-commerce solutions for our customers.  These activities range
from providing one day service through laser printing, to using
barcode systems for forms management and inventory control.  Our
e-commerce activities have significantly lowered the amount of
time that orders remain in production.  We are able to offer the
customer significantly better inventory turns by increasing print-
on-demand for short order quantities and reducing the need for
high inventory levels in longer run requirements.  Northstar's e-
commerce platforms are undergoing continual change because of the
dynamic changes in technology.  The use of database systems has
greatly enhanced the amount of online information relating to
order status and shipment tracking available to our customers at
their convenience.

Last year we reported that Northstar is the first industry leader
to put holograms on bank documents in order to reduce fraud and
counterfeiting.  This product offering is now a full two-shift
operation and has involved several major banks going to custom
designed holograms to serve a dual purpose of security and
marketing.  We will continue to use holograms, watermarks, and
thermochromic inks as the basis for providing the most secure
product line offered by a major printer.

In the future, Northstar will use e-commerce combined with our
expertise in combating fraud and counterfeiting to increase our
products and services to financial institutions and processors of
MICR documents.  Our focus will continue to strengthen our
position as the leading security documents printer in the United
States.  Technologies employed will be MICR, bar codes, ICR, OCR,
secure inks, taggents, watermarks, and holograms.  As technology
changes, Northstar will continue to offer customer solutions with
added value at very competitive prices.

                               13
<PAGE>


Selected Financial Data
-----------------------
<TABLE>

<CAPTION>
Years ended February 28 or 29     2002      2001      2000      1999     1998
(In thousands, except per share   ----      ----      ----      ----     ----
amounts)
-------------------------------
<S>                             <C>       <C>       <C>      <C>       <C>
Net sales                       $236,923  $229,186  $176,600  $159,690 $162,962
Net earnings                      14,966    13,177    15,123    14,110   10,208
Net earnings per basic and
   diluted share of common stock     .92       .81       .93       .87      .62
Total assets                     139,034   142,854   102,934    94,335   94,474
Long-term debt                     9,170    23,555       462         7      206
Cash dividends per share             .62       .62       .62       .62      .62
   of common stock

</TABLE>


Management's Discussion and Analysis



Liquidity and Capital Resources
The Company has maintained a strong financial position with
working capital at February 28, 2002 of $38,680,000, a decrease
of 4.2% from the beginning of the year, and a current ratio of
2.6 to 1.  The decrease is due to the maturation of long term
debt and reclassification of the $5,000,000 bank revolving credit
facility to current liabilities resulting from amending the loan
agreement.  The Company has $16,180,000 in cash and cash
equivalents, $1,802,000 in short term investments, and $9,170,000
in long-term debt, less current installments.  The Company's
acquisition in fiscal 2001 of Northstar Computer Forms, Inc.
(Northstar) for approximately $44,153,000 was financed with
$36,500,000 in bank loans with the balance being provided by
internal cash resources.  The Company made scheduled payments of
$5,380,000 and pre-paid $3,510,000 of the debt financing during
the year ended February 28, 2002.  The Company anticipates
repaying the long-term debt of $1,850,000 per quarter until it is
extinguished in June 2003.  The Company expects to generate
sufficient cash flow to more than cover its operating and other
capital requirements for the foreseeable future.



Accounting Standards
Effective March 1, 2001, the Company adopted Statement of
Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities" (SFAS No. 133).
This statement establishes accounting and reporting standards for
derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities. It
requires that all derivatives be 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.  This swap has been
designated as a

                               14
<PAGE>
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.

Effective March 1, 2002, the Company has adopted the provisions
of Statement of Financial Accounting Standards No. 142, "Goodwill
and Intangible Assets" (SFAS No. 142).  The Company tested for
impairment using projected cash flows and representative earnings
multiples for the industry.  Based on the test, no impairment of
goodwill is indicated.  Adoption of SFAS No. 142 is estimated to
increase after-tax earnings by approximately $.06 per diluted
share for the fiscal year 2003 due to goodwill no longer being
amortized.

In August 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" (SFAS No. 144),
which is effective for the Company beginning March 1, 2002 and
supercedes SFAS No. 121, "Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to be Disposed Of" (SFAS
No. 121).  SFAS No. 144 provides a single method of accounting
for long-lived assets to be disposed of and retains requirements
found in SFAS No. 121 with regard to the impairment of long-lived
assets.  The Company is in the process of evaluating the impact
of the provisions of SFAS No. 144.



Results of Operations
2002 as compared to 2001
Net sales in 2002 increased 3.4% from 2001.  Sales increased
primarily as a result of the inclusion of Northstar Computer
Forms, Inc. (Northstar) for the full fiscal year 2002 compared to
the nine month period subsequent to its acquisition in fiscal
2001.  Northstar, now known as the Financial Solutions Group, was
acquired in June of 2000.  Northstar accounted for a 5.8%
increase in sales.  The Promotional Solutions Group sales
increased slightly and accounted for .4% of the increase.  The
Forms Solution Group experienced a decrease in sales of 2.8% due
to the general economy and business declines.

The gross profit margin remained constant at 27.4% in fiscal
years 2001 and 2002.  The Financial Solutions Group and
Promotional Solutions Group gross profit margin increased from
25.7% and 21.3%, respectively, in fiscal 2001 to 27.5% and 23.1%,
respectively, in fiscal 2002. The increase in profit margin at
Adams McClure, a member of the Promotional Solutions Group, is a
result of operating initiatives implemented by management to
address consolidation and integration problems.  The increase in
profit margin in the Financial Solutions Group results from
better fixed cost absorption due to increased sales.  The Forms
Solutions Group gross profit margin decreased from 31.1% in
fiscal 2001 to 29.6% in fiscal 2002.  The decrease is a result of
less fixed cost absorption due to decreased sales as noted above.

Selling, general and administrative expenses decreased 3.4%
during fiscal 2002 as compared to 2001.  The decrease in selling,
general and administrative expenses was primarily attributable to
successful consolidation and integration initiatives implemented
by management in the Promotional Solutions Group accounting for a
6.6% reduction.  Selling, general and administrative expenses in
the Corporate segment and Forms Solution Group accounted for 1.1%
and 1.9% of the reduction, respectively, due to cost reduction
programs.  The inclusion of Northstar for the full fiscal year
2002 offset the total decrease by 6.2%.

                               15
<PAGE>

Investment and other income decreased 26.3% in 2002 as compared
to 2001 due to decreases in interest rates for the year.
Interest expense decreased from $2,046,000 in fiscal 2001 to
$1,949,000 in fiscal 2002 as a result of reductions of Northstar
financing debt.  Other income (expense) decreased 181% in 2002 as
compared to 2001.  Other income in 2001 included a pre-tax gain
of $653,000 resulting from the sale of the Louisville facility.

The Company's effective federal and state income tax rate for
2002 was 38.7%, as compared to 2001's effective rate of 38.9%.
The primary reason for the decrease is the recognition of tax
benefits related to the charitable contribution of one of the
Company's warehouse buildings in fiscal 2002.


2001 as compared to 2000
Net sales in 2001 increased 29.8% from 2000.  The increase was
attributable to revenue from the Company's newly acquired
businesses.  Northstar, acquired June 6, 2000, which operates as
our Financial Solutions Group accounted for 19.0% of the increase
in net sales.  Adams McClure L.P. (Adams McClure), acquired
November 4, 1999, part of our Promotional Solutions Group
accounted for 10.6% of the increase in net sales.

The gross profit margin decreased from 29.9% in fiscal 2000 to
27.4% in fiscal 2001.  The decrease in gross profit margin is
primarily a result of the consolidation and integration of our
Louisville operations with our Adams McClure operations in
Denver.  In addition, the decrease in gross margin is
attributable to the fact that our acquisitions, as reflected in
the Promotional Solutions Group and the Financial Solutions
Group, typically have lower gross profit margins than that of the
Forms Solutions Group.

Selling, general and administrative expenses increased 30.8%
during fiscal 2001 as compared to 2000.  The increase in selling,
general and administrative expenses was attributable to the
acquisition of Northstar and Adams McClure.

Investment income decreased 28.2% in 2001 as compared to 2000 as
a result of using funds previously available for investment for
the Company's recent acquisitions.  Interest expense increased
from $40,000 in fiscal 2000 to $2,046,000 in fiscal 2001 as a
result of the $36,500,000 debt issued to finance the Northstar
acquisition.  Other income decreased 70% in 2001 as compared to
2000.  Other income in 2001 includes a pre-tax gain of $653,000
resulting from the sale of the Louisville facility while other
income in 2000 included a pre-tax gain of $1,182,000 from the
sale of rental property in Boulder City, Nevada.

The Company's effective federal and state income tax rate for
2001 was 38.9%, as compared to 2000's effective rate of 37.1%.
The primary reason for the increase is due to non-deductible
goodwill from the acquisition of Northstar in fiscal 2001 and the
recognition of tax benefits related to the charitable
contribution of one of the Company's office buildings in fiscal
2000.


Critical Accounting Policies and Judgements
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,

                               16
<PAGE>

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 from these estimates.

We exercise judgment in evaluating our long-lived assets for
impairment.  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.

Revenue is 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.

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.  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.




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 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 $17.91 million at February
28, 2002.  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 February 28, 2002 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 for traditional forms products,
variability in the prices of paper and other raw materials, and
competitive conditions associated with the Company's products.
Because of such uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements which speak
only as of April 5, 2002.

                               17
<PAGE>
Financial Data
Ten Year Financial Review
<TABLE>

<CAPTION>
Fiscal Years
(In thousands, except per share and per dollar of sales amounts)
<S>                             2002        2001       2000       1999
                                ----        ----       ----       ----
                              <C>         <C>        <C>        <C>
Net sales                     $236,923    $229,186   $176,600   $159,690

Earnings before income taxes    24,403      21,571     24,041     22,558

Provision for income taxes       9,437       8,394      8,918      8,448

Net earnings                    14,966      13,177     15,123     14,110

     Per dollar of sales          .063        .057       .086       .088

     Per common share -
       diluted                     .92         .81        .93        .87

Dividends                       10,089      10,075     10,068     10,116

     Per share                     .62         .62        .62        .62

Shareholders' equity            96,035      91,540     88,267     83,499

     Per share                    5.89        5.63       5.45       5.12

Current assets                  62,646      58,263     43,305     52,676

Current liabilities             23,966      17,908     10,525      8,367

Net working capital             38,680      40,355     32,780     44,309

Ratio of current assets
  to current liabilities         2.6:1       3.3:1      4.1:1      6.3:1

Depreciation of plant
  and equipment                  8,683       8,313      5,389      4,941

Additions to property,
  plant and equipment            2,254       3,594      2,988      3,663
</TABLE>

                               18
                             <PAGE>
Financial Data
Ten Year Financial Review

   1998      1997       1996       1995      1994       1993
   ----      ----       ----       ----      ----       ----

 $162,962  $161,969   $150,071   $147,920  $140,369   $136,498

   15,805    21,485     30,104     32,041    31,039     32,276

    5,597     7,992     11,487     12,025    11,582     11,584

   10,208    13,493     18,617     20,016    19,457     21,252

     .063      .083       .124       .135      .139       .156

      .62       .82       1.13       1.22      1.16       1.21

   10,191    10,110      9,782      9,453     9,270      9,400

      .62      .615       .595       .575      .555       .535

   81,672    81,586     78,195     69,338    58,897     60,565

     4.97      4.96       4.76       4.22      3.52       3.52

   53,660    52,627     67,544     59,265    48,519     48,928

   10,396    10,307     13,054     12,976    12,548     12,087

   43,264    42,320     54,490     46,289    35,971     36,841


    5.2:1     5.1:1      5.2:1      4.6:1     3.9:1      4.0:1

    5,634     4,475      3,553      3,499     3,805      4,086

    9,576    13,575      6,106      4,010     2,215      1,315

                               19
 <PAGE>



Consolidated Statements of Earnings
<TABLE>

<CAPTION>
FOR THE YEARS ENDED FEBRUARY 28 OR 29       2002        2001       2000
                                            ----        ----       ----
(In thousands, except share and per
share amounts)
<S>                                       <C>         <C>         <C>
Net sales                                 $236,923    $229,186    $176,600
Costs and expenses:
  Cost of sales                            171,935     166,340     123,815
  Selling, general and
    administrative expenses                 39,000      40,356      30,856
                                          --------    --------    --------
                                           210,935     206,696     154,671
                                          --------     --------   --------
      Earnings from operations              25,988      22,490      21,929
                                          --------    --------    --------
Other income (expense):
  Investment income                            608         826       1,150
  Interest expense                          (1,949)     (2,046)        (40)

  Other                                       (244)        301       1,002
                                          --------    --------    --------
                                            (1,585)       (919)      2,112
                                          --------    --------    --------
      Earnings before income taxes          24,403      21,571      24,041
Provision for income taxes                   9,437       8,394       8,918
                                          --------    --------    --------
      Net earnings                       $  14,966   $  13,177   $  15,123
                                         =========   =========   =========

Net earnings per share of common
  stock-basic and diluted                $     .92   $     .81   $     .93
                                         =========   =========  ==========

Weighted average number of common
  shares outstanding - diluted          16,318,718  16,257,897  16,249,861

</TABLE>
See accompanying notes to consolidated financial statements.

                               20
<PAGE>


Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
FOR THE YEARS ENDED FEBRUARY 28 OR 29        2002       2001     2000
                                             ----       ----     ----
(In thousands)
<S>                                        <C>        <C>       <C>
Cash flows from operating activities:
  Net earnings                             $14,966    $13,177   $15,123
  Adjustments to reconcile net earnings
  to net cash provided by operating
  activities:
    Depreciation                             8,683      8,313     5,389
    Amortization                             1,613      1,417       485
    Impairment of long-lived assets             --         --       611
    Gain on the sale of property, plant
      and equipment                            (26)      (709)   (1,234)
    Deferred income tax benefit (expense)     (160)      (169)    1,721


    Other                                      (28)       474        97
    Changes in operating assets and
    liabilities:
      Receivables                            1,244      1,128    (4,620)
      Prepaid expenses                          (5)      (293)      226
      Inventories                              866     (1,117)      573
      Other current assets                   1,711      1,852       178
      Other assets                          (2,069)       950      (181)
      Accounts payable and accrued
        expenses                               798     (2,266)    1,709
                                            ------     ------    ------
        Net cash provided by operating
          activities                        27,593     22,757    20,077
                                            ------     ------    ------

Cash flows from investing activities:
  Capital expenditures                      (2,254)   (3,594)    (2,988)
  Purchase of operating assets, net of
    cash acquired                               --   (34,339)   (17,319)
  Proceeds from disposal of property            35     1,141      1,971
  Redemption (purchase) of investments       1,348     5,853     (9,003)
  Other                                         90        --         --
                                            ------    ------     ------
        Net cash used in investing
        activities                            (781)  (30,939)   (27,339)
                                            ------    ------     ------

Cash flows from financing activities:
  Debt issued to finance Northstar
    acquisition                                 --    36,500         --
  Repayment of debt issued to finance
    Northstar acquisition                   (8,890)  (10,850)        --
  Dividends                                (10,089)  (10,075)   (10,068)
  Purchase of treasury stock                    (3)       (2)    (1,537)
  Proceeds from exercise of stock options       22       173         --
  Other                                       (636)     (637)       213
                                            ------    ------     ------
        Net cash provided by (used in)
        financing activities               (19,596)   15,109    (11,392)
                                            ------    ------     ------

Net change in cash and cash equivalents      7,216     6,927    (18,654)
Cash and cash equivalents at beginning of
  year                                       8,964     2,037     20,691
                                            ------    ------     ------

Cash and cash equivalents at end of year   $16,180   $ 8,964    $ 2,037
                                            ======    ======     ======
</TABLE>
See accompanying notes to consolidated financial statements.
                               21
<PAGE>

Consolidated Balance Sheets

FOR THE YEARS ENDED FEBRUARY 28                 2002      2001
(In thousands, except share and par value       ----      ----
amounts)

Assets
Current assets:
  Cash and cash equivalents                  $ 16,180  $  8,964
  Investment securities                         1,802       980
  Receivables, principally trade, less
    allowance for doubtful receivables of
    $1,486 and $1,484, respectively            28,713    29,957
  Prepaid expenses                                814       819
  Inventories                                  12,222    13,088
  Contract costs in excess of billings            256       364
  Other current assets                          2,659     4,091
                                              -------   -------
        Total current assets                   62,646    58,263
                                              -------   -------

Investment securities                              --     2,170
Property, plant and equipment:
  Plant machinery and equipment                91,679    90,927
  Land and buildings                           22,564    22,504
  Other                                        14,934    13,944
                                              -------   -------
                                              129,177   127,375
  Less accumulated depreciation                77,834    69,594
                                              -------   -------
        Net property, plant and equipment      51,343    57,781
                                              -------   -------

Goodwill, net                                  21,951    23,615
Other assets                                    3,094     1,025
                                              -------   -------
                                             $139,034  $142,854
                                              =======   =======

Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable                           $  5,568  $  6,067
  Accrued expenses:
    Employee compensation and benefits          4,770     4,161
    Taxes other than income                       970       870
    Other                                       3,623     2,634
  Current installments of long-term debt        9,035     4,176
                                              -------   -------
        Total current liabilities              23,966    17,908
                                              -------   -------

Long-term debt, less current installments       9,170    23,555
Deferred credits, principally income taxes      9,863     9,851

Shareholders' equity:
  Series A junior participating preferred
    stock, $10 par value
      Authorized 1,000,000 shares; none issued     --        --
  Common stock, $2.50 par value.
      Authorized 40,000,000 shares;
        issued 21,249,860 shares               53,125    53,125
  Additional paid in capital                    1,040     1,040
  Retained earnings                           132,694   127,817
  Accumulated other comprehensive income
    (loss)                                       (401)       --
                                              -------   -------
                                              186,458   181,982
  Treasury stock, 4,976,922 and 4,979,095
    shares, respectively                      (90,423)  (90,442)
                                              -------   -------

        Total shareholders' equity             96,035    91,540
                                              -------   -------

                                             $139,034  $142,854
                                              =======   =======


See accompanying notes to consolidated financial statements.
                               22
<PAGE>


Notes to Consolidated Financial Statements

(1)  Significant Accounting Policies and General Matters

Nature of Operations.  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.

Cash and Cash Equivalents.  The Company invests cash in excess of
daily operating requirements in income producing investments.
Such amounts, at February 28, 2002 and 2001, totaled $13,200,000
and $5,475,000, respectively.  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.

Investment Securities.  Investment securities at February 28,
2002 and 2001 consist of U.S. Treasury Notes.  The Company has
the ability and intent to hold these securities until maturity;
therefore, they are classified as held-to-maturity as either
current or non-current assets depending on maturity dates, and
are reflected at amortized cost in the accompanying consolidated
financial statements.

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.

Intangible Assets.  Goodwill is amortized on the straight-line
basis over periods from 15 to 40 years.  Other acquired
intangibles are principally non-compete agreements and are being
amortized on the straight-line basis over 5 years.  At February
28, 2002 and 2001, accumulated amortization of intangible assets
amounted to $5,026,000 and $3,219,000, respectively.

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.  In the
second quarter of the fiscal year ended February 29, 2000, the
Company charged to expense $611,000 resulting from impairment of
intangible assets relating to the Company's InstaColor
(registered trademark) product line.

Fair Value of Financial Instruments.  The carrying amount of cash
and cash equivalents, investment securities, receivables and
accounts payable approximates fair value because of the short
term maturity of these instruments.  Long-term debt as of
February 28, 2002 and 2001 approximates its fair value and the
related interest rate swap was recorded at fair value at February
28, 2002.  See also Notes 2 and 4.

                               23
<PAGE>

Derivative Financial Instruments.  Effective March 1, 2001, the
Company adopted Statement of Financial Accounting Standards No.
133, "Accounting for Derivative Instruments and Hedging
Activities" (SFAS No. 133).  This statement establishes
accounting and reporting standards for derivative instruments,
including certain derivative instruments embedded in other
contracts, and for hedging activities. It requires that all
derivatives be 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.  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 instruments recorded as an adjustment to
accumulated other comprehensive income with the offset included
in accrued expenses.

Revenue Recognition.  Revenue is 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.

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 $1,207,000, $1,847,000, and $2,014,000 during the
years ended February 28 or 29, 2002, 2001, and 2000,
respectively.  Included in advertising expense is amortization
related to direct response advertising of $415,000, $840,000, and
$976,000 for the years ended February 28 or 29, 2002, 2001, and
2000, respectively.  Unamortized direct response advertising
costs included in other current assets at February 28, 2002 and
2001 were $117,000 and $164,000, 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 and
investment securities.  The trade receivables are geographically
dispersed primarily within the continental United States and the
investment securities are generally restricted to investment
grade commercial paper, Eurodollar deposits of U.S. banks, and
U.S. Government obligations.

Earnings Per Share.  Basic earnings per share is computed by
dividing net earnings by the weighted average number of common
shares outstanding during the period.  Diluted earnings per share
is computed by dividing net 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
February 28 or 29, 2002, 2001 and 2000, 369,000, 602,000, and
611,750 of options, respectively, were not included in the
diluted earnings per share computation because their exercise
price exceeded the average fair market value of the Company's
stock for the year.  The difference in the number of shares used
for basic and diluted earnings per share for all periods
presented is diminimus and results in basic and diluted net
earnings per share being the same amounts.

                               24
<PAGE>

Comprehensive Income.  Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" (SFAS No.
130), requires amounts charged directly to Shareholders' Equity
related to the Company's interest rate swap agreement to be
included in "Other Comprehensive Income."  See Note 5.

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).
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.

Recent Accounting Pronouncements.  In June 2001, the Financial
Accounting Standards Board (FASB) issued Statements of Financial
Accounting Standards No. 141, "Business Combinations" (SFAS No.
141), and No. 142, "Goodwill and Other Intangible Assets" (SFAS
No. 142), effective for fiscal years beginning after December 15,
2001.  Under the new rules, goodwill and intangible assets deemed
to have indefinite lives will no longer be amortized but will be
subject to annual impairment tests.  Other intangible assets will
continue to be amortized over their useful lives.  Effective
March 1, 2002, the Company has adopted SFAS No. 142.  Based on
the required goodwill impairment test performed, no impairment of
goodwill is indicated.  Adoption of SFAS No. 142 will increase
after-tax earnings by approximately $.06 per diluted share for
the fiscal year 2003 due to goodwill no longer being amortized.

In August 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" (SFAS No. 144),
which is effective for the Company beginning March 1, 2002 and
supercedes, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed Of" (SFAS No. 121).
SFAS No. 144 provides a single method of accounting for long-
lived assets to be disposed of and retains requirements found in
SFAS No. 121 with regard to the impairment of long-lived assets.
The Company is in the process of evaluating the impact of the
provisions of SFAS No. 144.

                               25
<PAGE>

(2)  Investment Securities
Amortized cost and estimated fair value of investment securities
classified as held-to-maturity were as follows (in thousands):

                                             Gross
                                           Unrealized
                              Amortized   Holding Gains   Estimated
 February 28, 2002              Cost        (Losses)      Fair Value
                                ----        --------      ----------

 Investment securities due
   in less than one year      $1,802          $20           $1,822
                               =====           ==            =====

 February 28, 2001
 Investment securities:
   Due in less than one year  $  980         $ (4)          $  976
   Due in one to two years     2,170           37            2,207
                               -----           --            -----
 Total investment securities  $3,150         $ 33           $3,183
                               =====           ==            =====

(3)  Inventories
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 February 28, 2002 and 2001,
approximately 67% and 65%, respectively, 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 following table summarizes the components of inventory at the
different stages of production at February 28 (in thousands):


                                          2002        2001
                                          ----        ----
      Raw material                      $ 6,065     $ 7,159
      Work-in-process                     1,216       1,220
      Finished goods                      4,941       4,709
                                         ------      ------
                                        $12,222     $13,088
                                         ======      ======


The excess of current costs over LIFO stated values was
approximately $3,904,000 and $3,730,000 at February 28, 2002 and
2001, respectively.

There were no significant liquidations of LIFO inventories during
the year ended February 28, 2002.  During Fiscal 2001 and 2000,
inventory quantities were reduced.  This reduction resulted in a
liquidation of LIFO inventory quantities carried at lower costs
prevailing in prior years as compared with the cost of fiscal
year 2001 and 2000 purchases, the effect of which decreased cost
of sales by approximately $151,000 and $1,222,000, respectively,
and increased net earnings by approximately $95,000 ($0.01 per
share) and $768,000 ($0.05 per share), respectively.

                               26
<PAGE>

(4) Long-Term Debt
Long-term debt consisted of the following at February 28 (in
thousands):

                                               2002         2001
                                               ----         ----
     Term loan                              $11,900      $20,150
     Revolving credit facility                5,000        5,500
     Industrial revenue bonds                 1,005        1,340
     Other                                      300          741
                                             ------       ------
                                             18,205       27,731
     Less current installments                9,035        4,176
                                             ------       ------
     Long-term debt                         $ 9,170      $23,555
                                             ======       ======

The term loan is due in quarterly installments of $850,000
commencing on September 30, 2000 and continuing each quarter
until the loan is paid in full on June 30, 2003.  Interest
payments are required monthly at LIBOR plus 0.925 percent (2.78%
as of February 28, 2002).

The revolving credit facility matures on January 15, 2003, at
which time all amounts outstanding are payable in full.  Interest
payments are required monthly at LIBOR plus 0.8 percent (2.65% as
of February 28, 2002).  There were no additional borrowings
available under the revolving credit facility at February 28,
2002.

The industrial revenue bonds require annual principal repayments
of $335,000 until fully paid 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 swap agreements related to the term loan and
revolving credit facility to effectively fix the interest rate at
6.89% for a pre-set principal amount of the loans.  The pre-set
principal amount of the loans covered by the swap agreements
declines quarterly in connection with expected principal
reductions and totaled $16,900,000 at February 28, 2002.  In
connection with the Company's adoption, effective March 1, 2001,
of SFAS No. 133, the swap agreement was determined to be an
effective cash flow hedge and the fair value of the swap
agreement at March 1, 2001 of approximately $825,000 has been
recorded as a cumulative effect of accounting change, net of tax,
and charged to Other Comprehensive Income (Loss) with the credit
included in accrued expenses.  The fair value of the swap at
February 28, 2002 was approximately ($658,000) and the change in
the fair value of the loss from March 1, 2001, net of tax, has
been charged to Other Comprehensive Income (Loss).

The term loan and revolving credit facility are unsecured and
contain 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 2002, 2001 and 2000 was $1,914,000,
$2,014,000 and $48,000, respectively.

                               27
<PAGE>

(5)  Shareholders' Equity
Following is a summary of transactions in shareholders' equity accounts for the
three years ended February 28, 2002 (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,
1999           21,249,860  $53,125   $1,040   $122,307      $  --      (4,996,397) $(92,973) $83,499

  Net earnings         --       --       --     15,123         --              --        --   15,123
  Dividends
  declared
  ($.62 per
  share)               --       --       --    (10,068)        --              --        --  (10,068)
  Treasury
  stock issued         --       --       --     (1,382)        --         138,599     2,632    1,250
  Treasury
  stock
  purchases            --       --       --         --         --        (200,250)   (1,537)  (1,537)
                ---------   ------    -----    -------      -----       ---------   -------   ------

Balance
February 29,
2000           21,249,860   53,125    1,040    125,980         --      (5,058,048)  (91,878)  88,267

  Net earnings         --       --       --     13,177         --              --        --   13,177
  Dividends
  declared
  ($.62 per
  share)               --       --       --    (10,075)        --              --        --  (10,075)
  Treasury
  stock issued         --       --       --     (1,265)        --          79,223     1,438      173
  Treasury
  stock
  purchases            --       --       --         --         --            (270)       (2)      (2)
               ----------   ------    -----    -------      -----       ---------   -------   ------

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,
2002           21,249,860  $53,125   $1,040   $132,694      $(401)     (4,976,922) $(90,423) $96,035
               ==========   ======    =====    =======       ====       =========    ======   ======
</TABLE>
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, other than
the acquiring person or group, would be entitled to buy shares of the Company's
common stock or stock of an acquirer of the Company at a 50% discount.  The
Rights expire on November 4, 2008, unless earlier redeemed by the Company.

                                       28
<PAGE>

(6)  Stock Options
At February 28, 2002, 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 865,527 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 February 28 or 29, 2002, 2001, and
2000, was $0.91, $0.72, and $0.73, respectively, on the date of
grant using the Black Scholes option-pricing model with the
following weighted-average assumptions:


                                      2002       2001      2000
                                      ----       ----      ----

     Expected dividend yield          7.03%      8.26%     8.90%
     Stock price volatility          23.40%     21.92%    22.15%
     Risk-free interest rate          4.86%      6.24%     5.25%
     Expected option term           5 years    5 years   6 years



Had compensation cost for the Company's incentive stock option
plans been determined consistent with SFAS No. 123, the Company's
net earnings and net earnings per share would have been reduced
to the pro forma amounts indicated below (in thousands, except
per share amounts):


                                        2002     2001     2000
                                        ----     ----     ----

      Net earnings:
       As reported                    $14,966  $13,177  $15,123

       Pro forma                       14,828   13,034   15,006

      Earnings per share:
       As reported - basic and diluted    .92      .81      .93
       Pro forma - basic and diluted      .91      .80      .92

                               29
<PAGE>
Following is a summary of transactions of incentive stock options
during the 2002, 2001 and 2000 fiscal years:


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

     Outstanding at February 28, 1999
      (170,774 shares exercisable)        499,962    $12.17
     Granted                              185,000      8.69
     Terminated                           (73,212)    14.98
                                          -------

     Outstanding at February 29, 2000
      (132,375 shares exercisable)        611,750     10.78
     Granted                              271,723      7.12
     Terminated                           (88,973)     7.79
                                          -------

     Outstanding at February 28, 2001
      (211,688 shares exercisable)        794,500      9.86
     Granted                               65,000      7.90
     Terminated                           (55,500)    17.21
                                          -------

     Outstanding at February 28, 2002
      (291,375 shares exercisable)        804,000    $ 9.20
                                          =======



The following table summarizes information about incentive stock options
outstanding at February 28, 2002:


<TABLE>
<CAPTION>
                                 Options Outstanding                   Options Exercisable
                       -----------------------------------------     ------------------------
                                 Weighted Average
                                    Remaining        Weighted                     Weighted
                        Number     Contractual        Average          Number      Average
   Exercise Prices   Outstanding  Life (In Years)  Exercise Price   Exercisable Exercise Price
   ---------------   -----------  --------------   --------------   ----------- --------------

   <S>                   <C>           <C>            <C>             <C>          <C>
   $ 7.06 to $10.31      669,250       7.4            $ 8.66          162,875      $ 9.74
    11.06 to  12.00       98,500       4.5             11.14           92,250       11.13
    13.81 to  15.63       36,250       1.8             13.83           36,250       13.83
                         -------                                      -------
   $ 7.06 to  15.63      804,000       6.8            $ 9.20          291,375      $10.69
                         =======                                      =======
</TABLE>
                                       30
<PAGE>

(7)  Income Taxes
The components of the provision for income taxes for fiscal years
2002, 2001 and 2000 are (in thousands):

                                           2002       2001      2000
                                           ----       ----      ----

     Current:
       Federal                            $8,546     $7,661    $6,195
       State and local                     1,051        902     1,002
     Deferred                               (160)      (169)    1,721
                                           -----      -----     -----
     Total provision for income taxes     $9,437     $8,394    $8,918
                                           =====      =====     =====

     Total income taxes paid              $8,085     $9,503    $7,609
                                           =====      =====     =====

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

                                             2002       2001     2000
                                             ----       ----     ----

    Statutory rate                          35.0%      35.0%     35.0%
    Provision for state income taxes,
      net of Federal income tax benefit      2.8        2.7       2.7
    ESOP pass-through dividend deduction    (0.5)      (0.6)     (0.5)
    Goodwill, non-deductible                 1.6        1.3        --
    Other                                   (0.2)       0.5      (0.1)
                                            ----       ----      ----
            Effective tax rate              38.7%      38.9%     37.1%
                                            ====       ====      ====


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

                                                    February 28
                                                  2002       2001
                                                  ----       ----
     Current deferred asset:
       Allowance for doubtful receivables       $  559     $  558
       Inventory valuation                         380        290
       Employee compensation and benefits        1,460      1,408
       Other                                       (11)       (32)
                                                 -----      -----
                                                $2,388     $2,224
                                                 =====      =====
     Noncurrent deferred liability:
       Depreciation                             $7,735     $8,166
       Intangibles amortization                   (297)      (344)
       Prepaid pension cost                        762        563
       Other                                       556        368
                                                 -----      -----
                                                $8,756     $8,753
                                                 =====      =====


                               31
<PAGE>

(8)  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 cost of the plan and balances of plan
assets and obligations are shown below:


Pension expense for fiscal years 2002, 2001 and 2000 included the
following components (in thousands):

<TABLE>
<CAPTION>                                   2002      2001      2000
                                            ----      ----      ----
     <S>                                   <C>      <C>        <C>
     Service cost - benefits earned
        during the current period         $1,520    $1,474     $1,478
     Interest cost on projected benefit
       obligation                          2,739     2,439      2,658
     Expected return on plan assets       (2,391)   (2,496)    (2,846)
     Net amortization and deferral          (236)     (467)      (348)
                                           -----     -----      -----

        Net periodic pension cost         $1,632    $  950     $  942
                                           =====     =====      =====
</TABLE>

Assumptions used in accounting for the defined benefit plans for
fiscal years 2002, 2001 and 2000 are as follows:

                                             2002      2001     2000
                                             ----      ----     ----

     Weighted average discount rate         7.25%     7.50%    7.75%
     Earnings progression                   4.50%     4.50%    4.50%
     Expected long-term rate of return on
       plan assets                          9.25%     9.25%    9.25%


Assets and obligations for fiscal years 2002 and 2001 are as
follows (in thousands):

                                                  February 28
                                               2002         2001
                                               ----         ----
     Projected benefit obligation
     Beginning of year                      $36,888      $31,875
     Service and interest cost                4,259        3,912
     Actuarial (gain) loss                   (3,299)       2,141
     Benefits paid                           (1,747)      (1,040)
                                             ------       ------

     End of year                             36,101       36,888
                                             ------       ------


     Fair value of plan assets
     Beginning of year                      $26,210      $27,380
     Company contributions                    3,672           --
     Net losses                                (420)        (130)
     Benefits paid                           (1,747)      (1,040)
                                             ------       ------

     End of year                             27,715       26,210
                                             ------       ------

     Excess of projected benefit
       obligation over plan assets           (8,386)     (10,678)
     Unrecognized losses and prior
       service cost                          10,708       11,652
     Unrecognized net transition asset
       being recognized over the
       average remaining service life           (56)        (748)
                                             ------       ------


     Prepaid pension cost                   $ 2,266      $   226
                                             ======       ======

                               32
<PAGE>


(9)  Acquisitions and Disposal
On November 4, 1999, the Company purchased the general and
limited partnership interests in Adams McClure, L.P.  The
$16,926,000 purchase price for this transaction consisted of
$1,250,000 in cash, $1,250,000 in stock (138,599 shares of the
Company's common stock) and assumption of certain liabilities of
Adams McClure, L.P. amounting to approximately $14,426,000 which
were immediately paid by the Company.  The acquisition was
accounted for by the purchase method and goodwill of $3,467,000
is being amortized over a period of 15 years.

On November 15, 1999, the Company purchased the land, building,
production equipment, furniture and fixtures, name and operations
of American Forms, Inc.  The $2,248,000 purchase price included a
promissory note to pay $525,000 over three years.  The
acquisition was accounted for by the purchase method and goodwill
of $313,000 is being amortized over a period of 15 years.

On June 6, 2000, the Company completed its acquisition of the
outstanding stock of Northstar for approximately $44,153,000.
The acquisition was financed with $36,500,000 in bank loans with
the balance being provided by internal cash resources.  Northstar
became a wholly owned subsidiary and operates as the Financial
Solutions Group.  The acquisition was accounted for by the
purchase method and goodwill of approximately $14,644,000 is
being amortized over a period of 15 years.

The accompanying consolidated financial statements include the
operations of Northstar since the date of acquisition.  The
following table presents certain operating information on a pro
forma basis as though Northstar had been acquired as of March 1,
2000, after including the estimated impact of adjustments such as
amortization of goodwill and depreciation, interest expense,
reduced interest income and related tax effects (in thousands,
except per share amount):

                                           FOR THE YEAR ENDED
                                            FEBRUARY 28, 2001
                                           ------------------
      Pro forma net sales                            $240,000
      Pro forma net earnings                           13,350
      Pro forma net earnings per share -
        basic and diluted                                 .82

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

                               33
<PAGE>

(10) 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.  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 February 28 or 29, 2002, 2001 and 2000 and
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
       February 28, 2002:
     Net sales                   $113,390     $73,496     $50,037   $    --   $236,923
     Depreciation and
       amortization                 2,566       2,714       4,493       523     10,296
     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


     Fiscal year ended
       February 28, 2001:
     Net sales                   $119,857     $72,642      $36,687  $    --   $229,186
     Depreciation and
       amortization                 3,699       2,883        2,623      525      9,730
     Segment earnings (loss)
       before income taxes         22,782       3,763          753   (5,727)    21,571
     Segment assets                43,738      40,213       45,490   13,413    142,854
     Capital expenditures           1,993         458           --    1,143      3,594


     Fiscal year ended
       February 29, 2000:
     Net sales                   $121,451     $55,149      $    --  $    --  $176,600
     Depreciation and
       amortization                 2,458       2,888           --      528     5,874
     Segment earnings (loss)
       before income taxes         22,300       5,985           --   (4,244)   24,041
     Segment assets                42,950      43,332           --   16,652   102,934
     Capital expenditures             829         169           --    1,990     2,988
</TABLE>

"Post-it" is a registered trademark of 3M.
                                       34
<PAGE>


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

                                        May   August  November  February
                                        ---   ------  --------  --------
     Fiscal year ended February 28, 2002:
         Net sales                   $59,823  $58,695   $59,458  $58,947
         Gross profit                 16,081   16,966    16,699   15,242
         Net earnings                  3,408    4,047     3,870    3,641
         Dividends paid                2,522    2,522     2,523    2,522
         Per share of common stock:
           Basic and diluted net
            earnings                     .21      .25       .24      .22
           Dividends                    .155     .155      .155     .155

     Fiscal year ended February 28, 2001:
         Net sales                   $49,347  $58,805   $61,382  $59,652
         Gross profit                 14,687   17,133    17,442   13,584
         Net earnings                  3,854    3,785     4,023    1,515
         Dividends paid                2,510    2,522     2,522    2,521
         Per share of common stock:
           Basic and diluted net
            earnings                     .24      .23       .25      .09
           Dividends                    .155     .155      .155     .155



Notes:
Gross profit and net earnings for the fourth quarter of fiscal
2001 were adversely affected by the consolidation and
integration of the Company's Louisville operations with its
Adams McClure operations in Denver.  The impact of this event
reduced net earnings approximately $0.10 per share.


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

                     2003          $2,014
                     2004           1,379
                     2005             961
                     2006             487
                     2007             205
                     Thereafter       103
                                   ------
                     Total         $5,149
                                   ======

Rent expense attributable to such leases totaled $1,971,000,
$1,695,000 and $744,000 for the years ended February 28 or 29, 2002,
2001 and 2000, respectively.


                               35
<PAGE>
                 Report of Independent Auditors


Board of Directors and Shareholders

Ennis Business Forms, Inc.

We  have  audited the accompanying consolidated balance sheet  of
Ennis  Business Forms, Inc. and subsidiaries (the Company) as  of
February  28,  2002, and the related consolidated  statements  of
earnings  and cash flows for the year then ended. 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.  The  consolidated   financial
statements  of the Company for the two years in the period  ended
February  28,  2001 were audited by other auditors whose  report,
dated  April 12, 2001, expressed an unqualified opinion on  those
statements.

We  conducted  our  audit 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 audit provides a reasonable basis  for  our
opinion.

In  our  opinion,  the  2002  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 28,  2002,  and  the  consolidated
results  of  their operations and their cash flows for  the  year
then  ended,  in conformity with accounting principles  generally
accepted in the United States.


                     /S/  Ernst & Young LLP


Dallas, Texas
April 5, 2002

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