Financial News

ENNIS, INC. REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2007

10/3/2007

Midlothian, Texas September 25, 2007 -- Ennis, Inc. (the "Company"), (NYSE: EBF), today reported financial results for the three and six months ended August 31, 2007.

Highlights

- Revenues increased 2.1% over the same six months last year from approximately $296.8 million to approximately $302.9 million.

- Print Segment revenues increased by 5.8% over the same six months last year, from $159.4 million to $168.7 million.

Financial Overview

Our net sales decreased slightly over the quarter from $151.7 million for the three months ended August 31, 2006 to $150.1 million for the three months ended August 31, 2007. Our print sales for the quarter were $83.6 million, compared to $82.3 million for the same quarter last year. Our apparel sales for the quarter were $66.5 million, compared to $69.5 million for the same quarter last year. Overall our margins during the quarter increased from 25.2% to 25.7% for the three months ended August 31, 2006 and 2007, respectively. Our print margins increased from 24.9% to 27.8%, while our apparel margins decreased from 25.6% to 23.1%, for the three months ended August 31, 2006 and 2007, respectively. Net earnings for the quarter decreased slightly from $11.6 million for the three months ended August 31, 2006 to $11.1 million for the three months ended August 31, 2007. Our diluted earnings per share decreased from $.45 per share to $.43 per share for the three months ended August 31, 2006 and 2007, respectively.

For the period, our net sales increased from $296.8 million for the six months ended August 31, 2006 to $302.9 million for the six months ended August 31, 2007. Our print sales for the six months ended August 31, 2007 were $168.7 million, compared to $159.4 million for the same period last year. Our apparel sales for the six months ended August 31, 2007 were $134.2 million, compared to $137.5 million for the same period last year. Print margins increased from 25.0% to 27.1%, while our apparel margins decreased from 26.4% to 23.4%, for the six months ended August 31, 2006 and 2007, respectively. Our net earnings for the period decreased from $23.0 million for the six months ended August 31, 2006 to $21.9 million for the six months ended August 31, 2007. Our diluted earnings per share decreased from $.89 per share to $.85 per share for the six months ended August 31, 2006 and 2007, respectively.

The increase in the print sales for the period related primarily to the increased sales from our Block acquisition offset by the continued decline in our commercial print operations. Our apparel sales during the quarter and period continues to be impacted, as previously discussed, by our inventory levels in certain SKU's and sizes at the beginning of the year which has hindered our ability to capture certain sales opportunities during the first six months of this year. While this has impacted sales to date, management believes the current inventory levels will allow apparel's sales to return to more expected levels over the remainder of this fiscal year.

The Company generated $22.8 million in EBITDA (earnings before interest, taxes, depreciation and amortization) during the quarter, compared to $24.5 million for the comparable quarter last year. For the six month period, the Company generated $45.3 million in EBITDA, compared to $48.8 million for the comparable period last year. Reconciliation of Non-GAAP to GAAP measure (dollars in thousands):

Keith Walters, Chairman, President & CEO, commented by saying, "We are pleased with the year-to-date operational performance of our Print Segment as this is evidence of the effectiveness of our cost reduction programs implemented during the start of this fiscal year. While our Apparel Segment's sales to date have been impacted by their beginning inventory levels in certain SKU's and sizes, the current inventory levels should allow growth trends to return to expected levels. In addition, while margins are running lower than the previous year due to the additional costs associated with our Mexican cut/sew operations, as previously discussed, we now feel we have these costs realigned and proper processes in place so we would expect these also to return to more normalized levels. Overall, we feel good about the second half of our fiscal year, based on programs now in place at our Apparel Segment together with the current operational performance of the Print Segment."

About Ennis

Ennis, Inc. (www.ennis.com) (formerly Ennis Business Forms, Inc.) is primarily engaged in the production of and sale of business forms, apparel and other business products. The Company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, Texas, the Company has production and distribution facilities strategically located throughout the United States of America, Mexico and Canada, to serve the Company's national network of distributors. The Company, together with its subsidiaries, operates in two business segments: the Printing Segment and Apparel Segment. The Printing Segment is primarily engaged in the business of manufacturing and selling business forms, other printed business products, printed and electronic media, presentation products, flex-o-graphic printing, advertising specialties and Post-it Notes, internal bank forms, secure and negotiable documents, envelopes and other custom products. The Apparel Segment manufactures T-Shirts and distributes T-Shirts and other active-wear apparel through six distribution centers located throughout North America.

Safe Harbor Under The Private Securities Litigation Reform Act of 1995

Certain statements contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The words "anticipate," "preliminary," "expect," "believe," "intend" and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These statements are subject to numerous uncertainties, which include, but are not limited to, the Company's ability to effectively manage its business functions while growing its business in a rapidly changing environment, the Company's ability to adapt and expand its services in such an environment, the variability in the prices of paper and other raw materials. Other important information regarding factors that may affect the Company's future performance is included in the public reports that the Company files with the Securities and Exchange Commission. The Company undertakes no obligation to revise any forward-looking statements or to update them to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.

For Further Information Contact:

Mr. Keith S. Walters, Chairman, Chief Executive Officer and President
Mr. Michael D. Magill, Executive Vice President
Mr. Richard L. Travis, Jr., Chief Financial Officer
Ennis, Inc.
2441 Presidential Parkway
Midlothian, Texas 76065
Phone: (972) 775-9801
Fax: (972) 775-9820
www.ennis.com