Industry Update
March 20, 2008

Paper Market Update

It has recently been reported to Delta that the paper market, specifically the ground-wood papers, will see additional price increases through midyear.

The price increases are projected to be approximately 2%-3% cwt each month for the next 3 to 6 months. This is due primarily to paper manufacturers continuing to take capacity out of the market and shutting down large volume production throughout North America. These market conditions will certainly have an impact on availability as well. It is projected that ground-wood stocks will have longer lead times over the course of the next several months.

As we have in the past Delta is actively fighting the proposed price increase, which may reduce the level of change if it does not eliminate the increase.

Delta Printing Solutions continues to streamline its operations in order to gain greater manufacturing efficiencies. However, the projected rise in uncoated text stock is a market condition that will impact the entire printing industry, and remains beyond our immediate control.

Delta is committed to providing our customers with unmatched value, critical-paper availability, and excellence in customer service.

Very truly yours,

Matthew C. Keller
Executive Vice President
Sales and Marketing
Delta Printing Solutions
www.deltaprintingsolutions.com