**Exhibit99.1**

 
| FOR:                       | ** ** | **Consolidated Graphics, Inc.**   |
|----------------------------|------------|-----------------------------------|
|                       |       |                              |
| CONTACT:                   |       | G. Christopher Colville           |
|                       |       | Executive Vice  President/        |
|                       |       | Chief Financial Officer           |
|                       |       | Consolidated Graphics,  Inc.      |
|                       |       | (713) 787-0977                    |
|                       |       |                              |
| **For  Immediate Release** |       | Christine Mohrmann/Eric  Boyriven |
|                       |       | Financial Dynamics                |
|                       |       | (212) 850-5600                    |

 

**CONSOLIDATEDGRAPHICS REPORTS THIRD QUARTER 2005 FINANCIAL RESULTS**

***- Record Revenue of $209 Million -***

***- Diluted Earnings Per Share of $.68 vs. $.39 in Prior Year-***

***- Projects Fourth Quarter Results of $.57 Per Diluted Share-***

 

**HOUSTON,TEXAS – February 2, 2005 - Consolidated Graphics, Inc. (NYSE: CGX)**today announced results for its third quarter ended December 31, 2004.

 

Revenue for the December quarterwas $208.6 million, up 9% compared to $191.1 million in the September quarterand up 13% compared to $184.2 million a year ago.  Net income for the December quarter was$9.7 million, or $.68 per diluted share, representing increases of 29% and 28%compared to net income of $7.6 million and diluted earnings per share of $.53in the September quarter.  Comparedto the December quarter a year ago, net income increased 78% and dilutedearnings per share increased 74%. Overall, December quarter revenues were at a record level forConsolidated Graphics, and operating margins improved to 7.8%.

 

For the nine months endedDecember 31, 2004, total sales were $581.3 million, up 11% compared to $524.7million for the comparable period a year ago. Net income for the first nine months of this year was $24.1 million, or$1.70 per diluted share, up 75% and 70% compared to $13.8 million and $1.00 perdiluted share last year.

 

 “We are very pleased to report third quarterresults that significantly exceeded our expectations,” commented Joe R. Davis,Chairman and Chief Executive Officer.  “Inaddition to capturing additional market share through internal growth andacquisitions, we benefited from election-related printing that was much morerobust than we had projected.  Of our 13%quarterly increase in revenue over the year-ago levels, internal growth andacquisitions each contributed 3% and election-related printing contributed 7%.  This quarter’s results evidence the scaleadvantages of our industry 

 

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leading market positionand our commitment to drive top-line growth and improve operating margins.”

 

Mr. Davis added, “Wecontinue to strengthen our balance sheet, which further increases our abilityto grow our business through investments in technology and a disciplined acquisitionprogram.  Capital expenditures totaled $8.0million in the quarter, bringing our year-to-date investment in new technologyand equipment to $19.0 million.  On theacquisition front, the pending addition of the seven Kelmscott companies willsignificantly expand our Midwest and West Coast presence.  We also continue to evaluate a number ofother acquisition opportunities that would complement our national footprintand enhance our customer service offerings.”

 

Mr. Davis concluded, “Forthe fourth quarter, and consistent with our performance throughout the year, weexpect to use our business model to leverage continuing improvement in economicand industry conditions to generate strong year-over-year growth in revenuesand diluted earnings per share.  Revenuesare projected to increase 5% over year-ago levels to $192 million, with dilutedearnings per share increasing 30% to $.57. These projected results do not include contribution from anyacquisitions we may complete during the quarter, including Kelmscott.”

 

Consolidated Graphicswill host a conference call today, February 2, 2005, at 11 a.m. EasternTime, to discuss its third quarter 2005 results.  The conference call will be simultaneouslybroadcast live over the Internet. Listeners may access the live Web cast at the Company’s homepage,www.consolidatedgraphics.com.

 

  Consolidated Graphics, Inc. is one of thenation’s leading commercial sheetfed, web and digital printing companies.  Through its network of printing companies in25 states, the Company produces high-quality customized printed materials for abroad customer base that includes many of the most recognized companies in thecountry.  Consolidated Graphics alsooffers an extensive and growing range of digital and Internet-based servicesand solutions marketed through CGXSolutions. Consolidated Graphics is focused on adding value to its operatingcompanies by providing financial and operational strengths, management supportand technological advantages associated with a national organization. For moreinformation, visit the Company’s Web site athttp://www.consolidatedgraphics.com.

 

This press releasecontains forward-looking statements, which involve known and unknown risks,uncertainties or other factors that could cause actual results to materiallydiffer from the results, performance or other expectations implied by theseforward-looking statements.  ConsolidatedGraphics’ expectations regarding future sales and profitability assume, amongother things, stability in the economy and reasonable growth in the demand forits products, the continued availability of raw materials at affordable prices,retention of its key management and operating personnel, as well as otherfactors detailed in Consolidated Graphics’ filings with the Securities andExchange Commission.  The forward-lookingstatements, assumptions and factors stated or referred to in this press releaseare based on information available to Consolidated Graphics today.  Consolidated Graphics expressly disclaims anyduty to provide updates to these forward-looking statements, assumptions andother factors after the day of this release to reflect the occurrence of eventsor circumstances or changes in expectations.

 

*(Table tofollow)*

 

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**CONSOLIDATEDGRAPHICS, INC.**

###### **ConsolidatedIncome Statement**

*(Inthousands, except per share amounts)*

 
| ** **                           | ** ** | **Three Months Ended  December 31,** | ** ** | **Nine Months Ended  December 31,** | ** ** |
|--------------------------------------|------------|-------------------------------------------|------------|------------------------------------------|------------|
| ** **                           | ** ** | **2004**                                  | ** ** | **2003**                                 | ** ** | **2004** | ** ** | **2003** | ** ** |
| Sales                                |       | $                                         | 208,640    |                                     | $          | 184,238 |   | $ | 581,298 |   | $ | 524,691 |   |
| Cost  of Sales                       |       | 157,077                                   |       | 141,034                                  |       | 437,753 |   | 401,046 |   |
| Gross  Profit                        |       | 51,563                                    |       | 43,204                                   |       | 143,545 |   | 123,645 |   |
| Selling  Expenses                    |       | 21,232                                    |       | 19,539                                   |       | 60,458 |   | 56,229 |   |
| General  and Administrative Expenses |       | 14,140                                    |       | 12,640                                   |       | 40,796 |   | 39,107 |   |
| Operating  Income                    |       | 16,191                                    |       | 11,025                                   |       | 42,291 |   | 28,309 |   |
| Interest  Expense, net               |       | 1,083                                     |       | 2,032                                    |       | 3,879 |   | 5,762 |   |
| Income  before Taxes                 |       | 15,108                                    |       | 8,993                                    |       | 38,412 |   | 22,547 |   |
| Income  Taxes                        |       | 5,364                                     |       | 3,507                                    |       | 14,275 |   | 8,736 |   |
| Net  Income                          |       | $                                         | 9,744      |                                     | $          | 5,486 |   | $ | 24,137 |   | $ | 13,811 |   |
|                                 |       |                                      |       |                                     |       |   |   |   |   |
| Earnings  Per Share                  |       |                                      |       |                                     |       |   |   |   |   |
| Basic                                |       | $                                         | .71        |                                     | $          | .41 |   | $ | 1.77 |   | $ | 1.03 |   |
| Diluted                              |       | $                                         | .68        |                                     | $          | .39 |   | $ | 1.70 |   | $ | 1.00 |   |
|                                 |       |                                      |       |                                     |       |   |   |   |   |
| Weighted  Average Shares Outstanding |       |                                      |       |                                     |       |   |   |   |   |
| Basic                                |       | 13,666                                    |       | 13,470                                   |       | 13,623 |   | 13,409 |   |
| Diluted                              |       | 14,259                                    |       | 13,947                                   |       | 14,180 |   | 13,769 |   |

 

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