General:

We are printers for the gift wrap paper industry, and use a computerized laser system. We also do commercial printing and engraving. We have recently begun to experience significant price competition from low-cost printing operations in other countries, particularly China. In response to this competitive pressure we began in 2003 to diversify our customer base to national retail chain stores, and to broaden our product line into different types of packaging products and pre-gift wrap products. We also began to source a portion of our product line from China. We expect that portion of our business to increase.

Our wholly owned real estate subsidiary,...