Food and Events

The Company, during the quarter, generated $13.1 million in EBITDA (earningsbefore interest, taxes, depreciation, amortization and impairment and othercharges) compared to $21.5 million for the comparable quarter last year. For theyear ending February 28, 2009, the Company generated $75.5 million in EBITDAcompared to $90.2 million for the comparable period last year. Reconciliation of GAAP to Non-GAAP measure (dollars in thousands): Three months endedYear ended February 28, February 29, February 28, February 29,2009 2008 2009 2008 Earnings (loss) before income taxes (GAAP)$(60,545)$16,608 $(13,059)$69,785Interest expense 6601,395 3,3635,678 Depreciation/amortization3,1443,501 12,860 14,727Impairment of goodwill and trademarks67,851 - 67,851 - Other items (1)2,000- 4,500- EBITDA (Non-GAAP) $13,110$21,504 $75,515$90,190 (1) - includes $2 million in obsolescence charges during the quarter consideredhigher than normal rates and $2.5 million in charges related to the bankruptcyfiling of a large apparel account. Keith Walters, Chairman, President & CEO, commented by saying, "The fourthquarter was an extremely difficult quarter. We saw double digit volume declinesin both our sectors, which placed pressure on each sectors` operating margins.Our apparel sector continues to be impacted by the sluggish retail landscape,which contributed to a temporary increase in manufacturers` inventory levels.This resulted in intensified pricing pressures in the marketplace, from bothdomestic and international competitors.

During the quarter, we commenced costreduction initiatives in both our sectors and will continue to adjust our coststo coincide with projected volume levels. While the fourth quarter wasdifficult, we performed better than most of our competition, due to ourdisciplined approach to business. As we enter fiscal year 2010, the economy andretail continues to be soft, but we are aggressively looking for ways to reduceour costs. In addition, we are moving forward with our apparel expansion plansinto Agua Prieta, Mexico, which once completed, should significantly reduce ourmanufacturing and distribution costs. Overall, fiscal year 2010 is shaping up tobe a challenging year as well, but we continue to feel confident in our abilityto navigate these challenging times. We enter the year with excellent liquidity,low leverage ratio and a strong balance sheet, which should allow us to takeadvantage of unique opportunities that a prolonged recession may present." About EnnisEnnis, Inc. () is primarily engaged in the production of and saleof business forms, apparel and other business products.

The Company is one ofthe largest private-label printed business product suppliers in the UnitedStates. Headquartered in Midlothian, Texas, the Company has production anddistribution facilities strategically located throughout the United States ofAmerica, Mexico and Canada, to serve the Company`s national network ofdistributors. The Company, together with its subsidiaries, operates in twobusiness segments: the Print Segment ("Print") and Apparel Segment ("Apparel").The Print Segment is primarily engaged in the business of manufacturing andselling business forms, other printed business products, printed and electronicmedia, presentation products, flex-o-graphic printing, advertising specialtiesand Post-it Notes, internal bank forms, secure and negotiable documents,envelopes and other custom products. The Apparel Segment manufactures T-Shirtsand distributes T-Shirts and other active-wear apparel through six distributioncenters located throughout North America. Safe Harbor Under The Private Securities Litigation Reform Act of 1995Certain statements contained in this press release that are not historical factsare forward-looking statements that involve a number of known and unknown risks,uncertainties and other factors that could cause the actual results, performanceor achievements of the Company to be materially different from any futureresults, performance or achievement expressed or implied by such forward-lookingstatements. The words "anticipate," "preliminary," "expect," "believe," "intend"and similar expressions identify forward-looking statements. The PrivateSecurities Litigation Reform Act of 1995 provides a "safe harbor" for suchforward-looking statements.