**Exhibit 99.1**

 

**INDEPENDENTAUDITORS’ REPORT**

 

 

To the Board of Directors and Shareholders ofZomax IncorporatedPlymouth, Minnesota

 

We have audited the financial statements ofZomax Incorporated and Subsidiaries as of December 26, 2003 and December 27,2002, and for the years then ended, and have issued our report thereon datedMarch 11, 2004; such report is included elsewhere in this Form 10-K.  Our audits also included the 2003 and 2002financial statement schedules of Zomax Incorporated and Subsidiaries, listed inthe accompanying index at Item 15(a). These financial statement schedules are the responsibility of theCorporation’s management.  Ourresponsibility is to express an opinion based on our audits.  In our opinion, such 2003 and 2002 financialstatement schedules, when considered in relation to the 2003 and 2002 basicfinancial statements taken as a whole, present fairly, in all materialrespects, the information set forth therein. The financial statement schedule for the year ended December 28, 2001was audited by other auditors who have ceased operations.  Those auditors expressed an opinion, intheir report dated January 25, 2002, that such 2001 financial statementschedule, when considered in relation to the 2001 basic financial statementstaken as a whole, presented fairly, in all material respects, the informationset forth therein.

 

 
| **/s/ Deloitte & Touche LLP** |   |
|-----------------------------------|--------|
| Minneapolis, Minnesota            |
| March 11, 2004                    |

 

*The following report isa copy of a report previously issued by Arthur Andersen LLP (“Andersen”), whichreport has not been reissued by Andersen.*

 

 

**REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS**

 

ToZomax Incorporated:

 

Wehave audited, in accordance with auditing standards generally accepted in theUnited States, the consolidated financial statements included in the ZomaxIncorporated and Subsidiaries’ annual report to shareholders incorporated byreference in this Form 10-K, and have issued our report thereon dated January25, 2002.  Our audit was made for the purposeof forming an opinion on those statements taken as a whole.  The schedule of valuation and qualifyingaccounts is the responsibility of the company’s management and is presented forpurposes of complying with the Securities and Exchange Commission’s rules andis not part of the basic financial statements. This schedule has been subjected to the auditing procedures applied inthe audit of the basic financial statements and, in our opinion, fairly statesin all material respects the financial data required to be set forth therein inrelation to the basic financial statements taken as a whole.

 

ArthurAndersen LLP

 

Minneapolis,Minnesota,

January 25, 2002

 

** **

**ZOMAX INCORPORATED**

**Schedule II - Valuation and Qualifying Accounts**

**Year Ended December 26, 2003**

 
| **Description**                      |   | **Balance at  beginning  of period** |      | **Charges to  costs and  expenses** |     | **Charged to  other  accounts** |   | **Write-offs,  net of  recoveries** |     | **Balance at  end of  period** |      |
|--------------------------------------|--------|--------------------------------------|-----------|-------------------------------------|----------|---------------------------------|--------|-------------------------------------|----------|--------------------------------|-----------|
|                                 |   |                                 |      |                                |     |                            |   |                                |     |                           |      |
| **Allowance for doubtful accounts:** |   |                                 |      |                                |     |                            |   |                                |     |                           |      |
|                                 |   |                                 |      |                                |     |                            |   |                                |     |                           |      |
| For the year ended December 26, 2003 |   | $                                    | 1,937,000 |                                | (420,000 | )                               | — |                                | (155,000 | )                              | 1,362,000 |   |
|                                 |   |                                 |      |                                |     |                            |   |                                |     |                           |      |
| For the year ended December 27, 2002 |   | $                                    | 2,234,000 |                                | 234,000  |                            | — |                                | (531,000 | )                              | 1,937,000 |   |
|                                 |   |                                 |      |                                |     |                            |   |                                |     |                           |      |
| For the year ended December 28, 2001 |   | 2,408,000                            |      | 295,000                             |     | —                          |   | (469,000                            | )        | 2,234,000                      |      |

 

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