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<P align=center>UNITED STATES <BR>SECURITIES AND EXCHANGE
COMMISSION<BR>Washington, D.C. 20549</P>
<P align=center>FORM 8-K</P>
<P align=center>CURRENT REPORT</P></B>
<P align=center><FONT size=2>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</FONT></P>
<P align=center><FONT size=2>
Report as of July 23, 2003</FONT></P><B>
<P align=center>GENERAL BINDING CORPORATION</B><FONT size=2><BR>(Exact name of
registrant as specified in its charter)</FONT></P><B>
<P align=center>Delaware</B><FONT size=2><br>
(State or other jurisdiction of incorporation or
organization)<b><br>
</b></FONT></P>
<P align=center><b><font size="3">0-2604</font></b><FONT size=2><br>
</FONT>(<FONT size=2>Commission File Number)&nbsp;<br>
</P>
</FONT><B>
<P align=center>36-0887470</B><FONT size=2><br>
(I.R.S. employer identification No.)</P></FONT><B>
<P align=center>One GBC Plaza,<br>
Northbrook, Illinois 60062</B><FONT size=2><br>
(Address of principal executive offices, including zip code)</P>
</FONT><B>
<P align=center>(847) 272-3700</B><FONT size=2><br>
(Registrant's telephone number, including area
code)</FONT></P>
<P align=center>&nbsp;</P><B><FONT size=2>
<P>Item 7. Financial Statements and Exhibits.</FONT></B><FONT size=2><br>
<br>
(c) Exhibits.</P>
99.1&nbsp; Press release of Registrant dated July 22, 2003.<br>
99.2&nbsp; Tables to press release of Registrant dated July 22,
2003.
<p><B>Item 9. Regulation FD Disclosure (Information furnished in this Item 9 is
furnished pursuant to Item 12).</p>
</B>
<P>Registrant is furnishing its press release and related tables to the press
release dated July 22, 2003, which reports Registrant's second quarter 2003
results, pursuant to Item 12, "Results of Operations and Financial Condition",
of Form 8-K. The press release and related tables are included herewith as
Exhibits 99.1 and 99.2, respectively, and are incorporated herein by
reference.</P>
</FONT>
<P align="center"><font size="3">1</font></P>
<P align="center">&nbsp;</P>
<FONT size=2>
<P align="center"><B>SIGNATURES</P></B>
<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.</P>
<P><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
GENERAL BINDING CORPORATION</B></P>
<P><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b>By: <U>/s/ Steven Rubin<br>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Steven Rubin<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Vice President, Secretary &amp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
General Counsel<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
July 23, 2003</P>
</FONT>
<P align="center">&nbsp;</P>
<P align="center"><font size="3">2</font></P>
<P align="center">&nbsp;</P>
<P align="center"><font size="3"><b>EXHIBIT 99.1</b></font><B><font size="3"><br>
GBC REPORTS 2<SUP>nd</SUP> QUARTER 2003 RESULTS<br>
Total Segment Operating Income Stable on Slightly Lower
Sales<br>
Company Takes Steps to Improve Profitability</font></P>
</B>
<P><font size="3">Northbrook, IL, July 22, 2003 -- General Binding Corporation (Nasdaq: GBND)
today announced results for the second quarter of 2003. Total segment operating
income for the quarter was comparable to the level posted last year, despite a
sales decline of 1.8% reflecting the continuing weak economy. In addition, the
Company reported a net loss for the quarter of $(0.32) per share, including a
pre-tax charge of $8.4 million for certain cost improvement initiatives,
compared to net income last year of $0.13 per share, which included $1.7 million
of charges.</font> </P>
<P><font size="3">In response to the soft sales environment and to improve its profitability,
GBC announced several initiatives during the quarter. These initiatives are
anticipated to generate over $2 million of profitability improvement in 2003,
and more than $10 million of annualized improvement after the expected
completion of the initiatives in mid-year 2004. The Company reported $8.4
million of charges related to these initiatives in the second quarter. GBC also
announced the refinancing of its senior credit facility during the quarter,
which, together with two other recent financings, are expected to generate over
$4 million of annualized interest payment savings.</font></P>
<P><font size="3">"The weak economy continues to affect sales in certain areas of our
business," said Dennis Martin, GBC's Chairman, President and CEO. "However, the
Operational Excellence initiatives we undertook throughout the organization last
year to generate cost savings and increases in productivity levels have helped
considerably to stabilize our results this year. The new programs we recently
announced should contribute significant improvements in GBC's efficiencies and
profitability."</font></P><B><U>
<P><font size="3">2<SUP>nd</SUP> Quarter 2003 Results</font></P></U>
</B>
<P><font size="3">Financial results for the quarter included the following highlights:</font></P>
<blockquote>
  <font size="3">
  Sales in the quarter totaled $171.2 million, down $3.2 million, or 1.8%,
    from the second quarter of 2002. International sales within the Groups were
    positively affected by exchange rate movements. Sales in the Commercial and
    Consumer Group declined by $4.9 million, or 4.2%, in the quarter over the
    prior year, due primarily to continuing lower demand in visual communication
    products, partially offset by growth in the 3-ring binder business. The
    Industrial and Print Finishing Group's sales were down $0.9 million, or
    2.7%, as lower domestic commercial films sales were not completely offset by
    higher international sales. Sales in the Europe Group were up $2.6 million,
    or 11.7%, primarily due to favorable exchange rates.</font>
  <p><font size="3">The Company's gross profit for the quarter decreased by $1.6 million, or
    0.2 points over the prior year to 39.8%, primarily related to the adverse
    effect of lower sales volumes and certain mix changes in the Commercial and
    Consumer Group, partially offset by the favorable impact of Operational
    Excellence initiatives.</font>
  <p><font size="3">Selling, service and administrative expenses were down $1.9 million, or
    3.3%, in the quarter compared to prior year, primarily due to lower levels
    of discretionary spending and variable expenses, partially offset by the
    adverse effect of exchange rate movements on international expenses.</font>
  <p><font size="3">Total segment operating income for the quarter was roughly flat compared
    to last year at $11.6 million. Operating income in the Commercial and
    Consumer and the Industrial and Print Finishing Groups were down $2.7
    million and $0.7 million, respectively, as a result of lower sales and lower
    gross profit margins. The Europe Group's operating income was up $1.9
    million due primarily to the favorable effect of exchange rates and lower
    costs.</font>
  <p><font size="3">Restructuring expense in the quarter totaled $8.4 million. This expense
    was related to the manufacturing rationalization and workforce reduction
    programs detailed below. In the second quarter of 2002, restructuring and
    other charges totaled $1.7 million.</font>
  <p><font size="3">Interest expense in the quarter totaled $10.2 million, roughly flat to
    the $10.0 million from the prior year. Included in interest expense for the
    quarter was $1.1 million related to the loss on the extinguishment of the
    Company's prior credit facility which was refinanced in June 2003.</font>
  <p><font size="3">A net loss was reported for the quarter of $(0.32) per share, including
    a pre-tax charge of $8.4 million for the aforementioned cost improvement
    initiatives, compared to net income last year of $0.13 per share, which
    included $1.7 million of charges.</font>
  <p><font size="3">Total net debt at the end of the quarter, adjusted for cash and
    equivalents, was $334 million, up roughly $11 million from the amount
    outstanding at the beginning of the year.</font>
</blockquote>
<B><U>
<P><font size="3">Six-Month Results</font></P></U>
</B>
<P><font size="3">For the first six months of 2003, sales were $340.6 million, down 1.7% from
the same period last year. The net loss for the period was $(0.32) per share,
including pre-tax charges totaling $9.8 million. For the same period last year,
the Company reported a net loss of $(5.23) per share, including charges of $6.6
million and the cumulative effect of accounting changes totaling $79
million.</font></P><B><U>
<P><font size="3">Company Comments</font></P></U>
</B>
<P><font size="3">"In response to the continuing weak economy, we have continued to look hard
at our organization to improve our profitability," continued Mr. Martin, "and we
recently announced several major initiatives that should reduce expenses and
realign a portion of our manufacturing operations for improved profitability and
efficiencies."</font></P>
<P><font size="3">"We also significantly improved our capital structure by completing the
refinancing of our senior credit facility during the quarter," continued Mr.
Martin. "This was an important financial milestone for GBC. We enhanced our
financial flexibility by significantly reducing our interest payments and
achieving a maturity date of January 2008."</font></P>
<P><font size="3">"Overall," Mr. Martin concluded, "the successful implementation of GBC's
Operational Excellence initiatives has helped us weather the lack of top line
growth. We are confident that the new initiatives we undertook this quarter and
our continuing focus on long-term sales and marketing initiatives position us
well to drive growth in shareholder value as the economy improves."</font></P><B><U>
<P><font size="3">Recent Actions To Improve Profitability</font></P></U>
</B>
<P><font size="3">On July 17, the Company announced several measures to improve its cost
structure and reduce its expenses. These initiatives are anticipated to generate
over $2 million of profitability improvement in 2003 and more than $10 million
of annualized improvement after the expected completion of the initiatives in
mid-year 2004, and they include:</font></P>
<blockquote>
  <font size="3">
  Booneville, MS Manufacturing Rationalization -- As part of its ongoing
    Operational Excellence Program, GBC has begun relocating certain
    labor-intensive office products manufacturing operations from its Booneville
    facility to its Nuevo Laredo, Mexico facility and outsourcing several other
    product lines. As a result, the Booneville workforce will be reduced by
    about 250 employees from a total of 660 over the next 12 months.</font>
  <p><font size="3">Workforce Reduction Program - In addition to the workforce reduction
    actions in Booneville, the Company has recently completed a reduction in
    staffing of about 115 employees at other GBC locations, bringing the total
    number of employees affected company-wide to approximately 365, or about 9%
    of GBC's total employees.</font>
</blockquote>
<P><font size="3">The Company expects to take charges totaling approximately $9.5 million
related to these cost reduction programs, of which $8.4 million was recognized
in the second quarter of 2003. The cash portion of the charges is estimated at
about $4 million, principally related to severance expenses. The remaining
charges will be non-cash and are mainly related to asset impairments at the
Booneville facility.</font></P><B><U>
<P><font size="3">Senior Credit Facility Refinancing</font></P></U>
</B>
<P><font size="3">On June 30, GBC announced the refinancing of its primary senior credit
facility. The new $197.5 million facility includes a $72.5 million multicurrency
revolving credit line and a $125 million term loan. The maturity date on the new
facility is January 15, 2008, and it provides for significantly lower interest
rates compared to the previous facility. The facility, led by Harris Bank,
LaSalle Bank and General Electric Capital Corporation, should provide the
financial flexibility and liquidity to support all of GBC's currently
anticipated operating and capital requirements.</font></P>
<P><font size="3">GBC was successful in reducing the size of the new facility by more than $90
million from the previous facility primarily as a result of debt reduction
achieved through the successful execution of its Operational Excellence Program
and approximately $30 million of aggregate proceeds from two other recent
financings. The annualized interest payment savings from these financings is
expected to be more than $4 million.</font></P><B><U>
<P><font size="3">Financial Reporting Changes</font></P></U>
</B>
<P><font size="3">Beginning with its second quarter results, the Company's financial reporting
has been modified to reflect the strategic organizational restructuring
announced in late-2002. This change more closely aligns GBC's marketing, sales
and support functions around its key customers and end-consumers and eliminates
operational overlap. The realignment primarily consisted of combining three of
the Company's four business units into the following two new Groups:</font></P>
<U>
    <blockquote>
      <font size="3">
      Commercial and Consumer Group</font></U> <font size="3"> (combination of the Document Finishing
    Group, Office Products Group, the Education division and the Asia/Pacific
    region). This combined group will focus on branding and marketing strategies
    for "consumer-ready" products that leverage GBC's leadership among customers
    of its binding, laminating and information-display products in the work,
    school and home environments.</font><U>
    <p><font size="3">Industrial and Print Finishing Group</font></U> <font size="3"> (combination of the Films Group
    and the Automated Finishing division). This combined group will target
    print-for-pay and other finishing customers who use GBC's professional-grade
    finishing equipment and supplies as part of their mass production or
    sophisticated, professional applications.</font>
</blockquote>
<B><U>
<P><font size="3">Conference Call</font></P></U>
</B>
<P><font size="3">On July 23, 2003, at 10:00 a.m. Central Time, GBC's management will host a
conference call to discuss the Company's second quarter 2003 results. The live
presentation, and an archived replay, will be available via an internet webcast
and can be accessed from the investor relations section of GBC's website at http://www.gbc.com
or at www.streetevents.com.</font></P>
<P><font size="3">GBC is a world leader in products that bind, laminate, and display
information enabling people to accomplish more at work, school and home. GBC's
products are marketed in over 100 countries under the GBC, Quartet, and Ibico
brands, and they help people enhance printed materials and organize and
communicate ideas.</font></P>
<FONT size=2>
<I>
<P>This press release includes forward-looking statements involving
uncertainties and risks, and there can be no assurance that actual results will
not differ from the Company's expectations. The words "should," "believe,"
"anticipates," "plans," "may," "expects" and other expressions that indicate
future events and trends identify forward-looking statements. Factors that could
cause materially-different results include, among other things, competition
within the office products and lamination film products markets, effects of
general economic conditions, the restructuring activities associated with the
integration and go-to-market strategies of the Company's business units, the
ability of the Company's distributors to successfully market the Company's
products and other risks described in the Company's filings with the S.E.C. The
Company assumes no obligation to update its forward-looking statements.</P></I>
<P>Contact: Paul J. Bors, Corporate Treasurer<br>
(847) 291-6187<br>
inv-rel@gbc.com (E-mail)<br>
www.gbc.com (GBC's web site)</P>
</FONT>
<P align="center">&nbsp;</P>
<B>
<P align=center>EXHIBIT 99.2<br>
GBC PRESS RELEASE AND TABLES</P>
<P align=right>Exhibit A to&nbsp;<br>
2003 Q2 Earnings Release&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><font size="2">GENERAL BINDING CORPORATION<br>
THREE AND SIX MONTHS&nbsp; ENDED JUNE 30, 2003<br>
</font>
</B>
<font size="2">(Amounts in Thousands except Per Share Amounts)</font></P>
<TABLE cellSpacing=0 cellPadding=2 width=672 border=0>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16>
      <P></P></TD>
    <TD vAlign=top width="158" colSpan=3 height=16><B><FONT face=Arial size=2>
      <P align=center>Three Months Ended</FONT></B></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="165" colSpan=3 height=16><B><FONT face=Arial size=2>
      <P align=center>Six Months Ended</P></FONT></B></TD>
  </TR>
  <TR>
    <TD vAlign=top width="20" height=17>
      <P></P></TD>
    <TD vAlign=top width="13" height=17>
      <P></P></TD>
    <TD vAlign=top width="280" height=17>
      <P></P></TD>
    <TD vAlign=top width="158" height=17 colspan="3"><B><FONT face=Arial size=2>
      <P align=center>June 30,</P></FONT></B></TD>
    <TD vAlign=top width="1" height=17>
      <P></P></TD>
    <TD vAlign=top width="165" height=17 colspan="3"><B><FONT face=Arial size=2>
      <P align=center>June 30,</P></FONT></B></TD>
  </TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=17><B><U><FONT face=Arial
      size=2>
      <P>CONSOLIDATED SUMMARY OF INCOME</FONT></U></B></P></TD>
    <TD vAlign=top width="75" height=17><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="1" height=17>
      <P></P></TD>
    <TD vAlign=top width="71" height=17><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD>
    <TD vAlign=top width="1" height=17>
      <P></P></TD>
    <TD vAlign=top width="73" height=17><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="3" height=17>
      <P></P></TD>
    <TD vAlign=top width="77" height=17><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16>
      <P></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=center>(Unaudited)</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=center>(Unaudited)</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=center>(Unaudited)</FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=center>(Unaudited)</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Net sales</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>$ 171,150 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>$ 174,336 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>$ 340,585 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>$346,598 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Cost of sales:</FONT></P></TD>
    <TD vAlign=top width="75" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16>
      <P></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="299" colSpan=2 height=16><FONT face=Arial size=2>
      <P>Product cost of sales, including development</FONT></P></TD>
    <TD vAlign=top width="75" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16>
      <P></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16><FONT face=Arial size=2>
      <P>and engineering</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>102,958 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>103,990 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>204,923 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>210,240 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="299" colSpan=2 height=16><FONT face=Arial size=2>
      <P>Inventory rationalization and write-down charges</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>- </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>600 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>- </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>672 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Selling, service and administrative</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>56,416 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>58,315 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>113,965 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>113,800 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Amortization of intangible assets</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>189 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>214 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>377 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>477 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Restructuring and other:</FONT></P></TD>
    <TD vAlign=top width="75" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16>
      <P></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="299" colSpan=2 height=16><FONT face=Arial size=2>
      <P>Restructuring</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>8,384 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>961 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>9,789 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>5,130 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="299" colSpan=2 height=16><FONT face=Arial size=2>
      <P>Other</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>- </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>133 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>- </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>758 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Interest expense</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>10,247 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>9,953 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>19,545 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>20,245 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Other expense (income), net</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>137 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>(1,560)</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>(188)</FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>(802)</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16><FONT face=Arial size=2>
      <P>(Loss) income before taxes and cumulative</FONT></P></TD>
    <TD vAlign=top width="75" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16>
      <P></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16><FONT face=Arial size=2>
      <P>effect of accounting change</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>(7,181)</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>1,730 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>(7,826)</FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>(3,922)</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16>
      <P></P></TD>
    <TD vAlign=top width="75" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16>
      <P></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Income tax benefits</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>(2,057)</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>(367)</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>(2,785)</FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>(150)</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Cumulative effect of accounting change, net of taxes (1)</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;-&nbsp;</u> </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;-&nbsp;</u> </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;-&nbsp;</u> </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 79,024</u></FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16><FONT face=Arial size=2>
      <P>Net (loss) income</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>$ (5,124)<br>
      ======</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>$ 2,097<br>
      ===== </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>$ (5,041)<br>
      ======</FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>$ (82,796)<br>
      =======</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Earnings per share:</FONT></P></TD>
    <TD vAlign=top width="75" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16>
      <P></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="299" colSpan=2 height=16><FONT face=Arial size=2>
      <P>Basic and diluted</FONT></P></TD>
    <TD vAlign=top width="75" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16>
      <P></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16>
      <P></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16><FONT face=Arial size=2>
      <P>Before cumulative effect of accounting change</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>$ (0.32)</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>$ 0.13 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>$ (0.32)</FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>$ (0.24)</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16><FONT face=Arial size=2>
      <P>Cumulative effect of accounting change</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</u></FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</u></FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</u></FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp; (4.99)</u></FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16>
      <P></P></TD>
    <TD vAlign=top width="13" height=16>
      <P></P></TD>
    <TD vAlign=top width="280" height=16><FONT face=Arial size=2>
      <P>Net income (loss) per share</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial size=2>
      <P align=right>$ (0.32)<br>
      =====</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial size=2>
      <P align=right>$ 0.13<br>
      ====</FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial size=2>
      <P align=right>$ (0.32)<br>
      =====</FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>$ (5.23)<br>
      =====</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Avg. common shares outs. (basic)</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>15,961 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>15,868 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>15,956 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>15,838 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="325" colSpan=3 height=16><FONT face=Arial size=2>
      <P>Avg. common shares outs. (diluted)</FONT></P></TD>
    <TD vAlign=top width="75" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>15,961 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="71" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>16,528 </FONT></P></TD>
    <TD vAlign=top width="1" height=16>
      <P></P></TD>
    <TD vAlign=top width="73" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>15,956 </FONT></P></TD>
    <TD vAlign=top width="3" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial color=#ff0000
size=2>
      <P align=right>15,838 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="20" height=16><FONT face=Arial size=2>
      <P>(1)</FONT></P></TD>
    <TD vAlign=top width="633" colSpan=9 height=16><FONT face=Arial size=2>
      <P>GBC implemented SFAS No. 142, "Goodwill and other Intangible Assets,"
      in the first quarter of 2002. SFAS No. 142 subjects goodwill to a
      fair-value based impairment test. As a result of applying the impairment
      tests, GBC recorded a gross goodwill impairment of $110.0 million and an
      offsetting tax benefit of $31.0 million. These impairment charges were
      recorded as of January 1, 2002. This charge is non-cash and had no impact
      on the Company's operations. </FONT></P></TD></TR>
</TABLE><P align="left">&nbsp;</P><P align="right"><b><font face="Times,Times New Roman" size="3">Exhibit
B to<br>
2003 Q2 Earnings Release</font></b></P><P align="center"><font face="Times,Times New Roman" size="2"><b>GENERAL
BINDING CORPORATION<br>
SEGMENT INFORMATION<br>
</b>(Amounts in Thousands)</font></P>
<TABLE cellSpacing=0 cellPadding=2 width=650 border=0>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="163" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Net Sales<br>
      Three Months Ended</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="155" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Net Sales<br>
      Six Months Ended</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="163" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="155" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="270" height=18 colspan="2"><FONT face=Arial size=2>
      <P>Commercial and Consumer Group</P></FONT></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>$ 111,467 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>$ 116,323 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>$ 221,037 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>$ 228,250 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="270" height=18 colspan="2"><FONT face=Arial size=2>
      <P>Industrial and Print Finishing Group</P></FONT></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>34,704 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>35,651 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>68,238 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>69,474 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18><FONT face=Arial size=2>
      <P>Europe</FONT></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp; 24,979</u> </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp; 22,362</u> </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp; 51,310</u> </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp; 48,874</u> </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18><FONT face=Arial size=2>
      <P>Total</FONT></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>$ 171,150<br>
      ======= </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>$ 174,336<br>
      ======= </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>$ 340,585<br>
      ======= </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>$ 346,598<br>
      ======= </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18>
      <P></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="163" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Segment<br>
      Operating Income (1)<br>
      Three Months Ended</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="155" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Segment<br>
      Operating Income (1)<br>
      Six Months Ended</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="163" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="155" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT></B></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18>
      <P></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="270" height=18 colspan="2"><FONT face=Arial size=2>
      <P>Commercial and Consumer Group</P></FONT></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>$ 12,044 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>$ 14,738 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>$ 22,904 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>$ 28,025 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="270" height=18 colspan="2"><FONT face=Arial size=2>
      <P>Industrial and Print Finishing Group</P></FONT></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>4,646 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>5,367 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>8,965 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>9,453 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18><FONT face=Arial size=2>
      <P>Europe</FONT></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>1,206 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>(682)</FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>2,494 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>180 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18><FONT face=Arial size=2>
      <P>Unallocated corporate items</FONT></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp; (6,309)</u></FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp; (7,606)</u></FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;(13,043)</u></FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;(15,577)</u></FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18><FONT face=Arial size=2>
      <P>Total</FONT></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>$ 11,587<br>
      ====== </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>$ 11,817<br>
      ====== </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>$ 21,320<br>
      ====== </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>$ 22,081<br>
      ======</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=15>
      <P></P></TD>
    <TD vAlign=top width="176" height=15>
      <P></P></TD>
    <TD vAlign=top width="88" height=15>
      <P></P></TD>
    <TD vAlign=top width="5" height=15>
      <P></P></TD>
    <TD vAlign=top width="79" height=15>
      <P></P></TD>
    <TD vAlign=top width="5" height=15>
      <P></P></TD>
    <TD vAlign=top width="67" height=15>
      <P></P></TD>
    <TD vAlign=top width="5" height=15>
      <P></P></TD>
    <TD vAlign=top width="66" height=15>
      <P></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="70" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="335" colSpan=7 height=18><B><FONT face=Arial size=2>
      <P align=center>Reconciliation of Segment Operating
    Income</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="163" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Three Months Ended</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="155" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Six Months Ended</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="163" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="155" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18>
      <P></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="270" height=18 colspan="2"><FONT face=Arial size=2>
      <P>Total segment operating income</P></FONT></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>$ 11,587 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>$ 11,817 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>$ 21,320 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>$ 22,081 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18><FONT face=Arial size=2>
      <P>Interest expense</FONT></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>10,247 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>9,953 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>19,545 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>20,245 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="270" height=18 colspan="2"><FONT face=Arial size=2>
      <P>Restructuring and other expenses</P></FONT></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right>8,384 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right>1,694 </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right>9,789 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right>6,560 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="176" height=18><FONT face=Arial size=2>
      <P>Other (income) expense</FONT></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 137</u> </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;(1,560)</u></FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; (188)</u></FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; (802)</u></FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18>
      <P></P></TD>
    <TD vAlign=top width="270" colSpan=2 height=18><FONT face=Arial size=2>
      <P>Income before taxes and cumulative effect of accounting change </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18><FONT face=Arial size=2>
      <P align=right><br>
      $ (7,181)<br>
      ======</FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18><FONT face=Arial size=2>
      <P align=right><br>
      $ 1,730<br>
      ===== </FONT></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18><FONT face=Arial size=2>
      <P align=right><br>
      $ (7,826)<br>
      ======</FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18><FONT face=Arial size=2>
      <P align=right><br>
      $ (3,922)<br>
      ======</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="198" colSpan=2 height=18><U><FONT face=Arial size=2>
      <P>Notes:</FONT></U></P></TD>
    <TD vAlign=top width="88" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="79" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="67" height=18>
      <P></P></TD>
    <TD vAlign=top width="5" height=18>
      <P></P></TD>
    <TD vAlign=top width="66" height=18>
      <P></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="70" height=18>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="16" height=18><FONT face=Arial size=2>
      <P>(1)</FONT></P></TD>
    <TD vAlign=top width="622" colSpan=10 height=18><FONT face=Arial size=2>
      <P>Segment operating income is defined as net sales less product cost of
      sales, selling, service and administrative expenses and amortization of
      intangibles. Inventory rationalization and write-down charges,
      restructuring and other expenses are not included in segment results.
      Additionally, certain expenses of a corporate nature and certain shared
      expenses are not allocated to the business groups.</FONT></P></TD></TR>
</TABLE>
<p align="right"><font size="3"><b>Exhibit C to<br>
2003 Q2 Earnings Release</b></font></p>
<p align="center"><font size="2"><b>GENERAL BINDING CORPORATION<br>
BALANCE SHEET<br>
</b>(Amounts in Thousands)</font></p>
<TABLE borderColor=#000000 cellSpacing=0 cellPadding=0 width=650 border=0>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="17" height=15>
      <P></P></TD>
    <TD vAlign=top width="223" height=15>
      <P></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><B><FONT face=Arial size=2>
      <P align=center>December 31,</FONT></B></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=16><B><U><FONT face=Arial
      size=2>
      <P>BALANCE SHEET SUMMARY</FONT></U></B></P></TD>
    <TD vAlign=top width="94" height=16>
      <P></P></TD>
    <TD vAlign=top width="15" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="7" height=16>
      <P></P></TD>
    <TD vAlign=top width="93" height=16><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD>
    <TD vAlign=top width="11" height=16>
      <P></P></TD>
    <TD vAlign=top width="74" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><B><U><FONT face=Arial
      size=2>
      <P>Assets</FONT></U></B></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=center>(Unaudited)</FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15>
      <P></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><FONT face=Arial size=2>
      <P>Current assets:</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15>
      <P></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15>
      <P></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="242" colSpan=2 height=15><FONT face=Arial size=2>
      <P>Cash and equivalents</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>$ 6,996 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>$ 18,251 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="242" colSpan=2 height=15><FONT face=Arial size=2>
      <P>Receivables, net</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>125,546 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>121,709 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="242" colSpan=2 height=15><FONT face=Arial size=2>
      <P>Inventories</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>88,940 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>91,920 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="242" colSpan=2 height=15><FONT face=Arial size=2>
      <P>Other</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>35,595 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>34,913 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="17" height=15>
      <P></P></TD>
    <TD vAlign=top width="223" height=15><FONT face=Arial size=2>
      <P>Total current assets</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>257,077 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>266,793 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><FONT face=Arial size=2>
      <P>Capital assets, net</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>98,224 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>106,877 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><FONT face=Arial size=2>
      <P>Other assets</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right><u>&nbsp; 187,363</u> </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right><u>&nbsp; 180,839</u> </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=16>
      <P></P></TD>
    <TD vAlign=top width="17" height=16>
      <P></P></TD>
    <TD vAlign=top width="223" height=16><B><FONT face=Arial size=2>
      <P>Total Assets</FONT></B></P></TD>
    <TD vAlign=top width="94" height=16>
      <P></P></TD>
    <TD vAlign=top width="15" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>$ 542,664<br>
      ======= </FONT></P></TD>
    <TD vAlign=top width="7" height=16>
      <P></P></TD>
    <TD vAlign=top width="93" height=16><FONT face=Arial size=2>
      <P align=right>$ 554,509<br>
      ======= </FONT></P></TD>
    <TD vAlign=top width="11" height=16>
      <P></P></TD>
    <TD vAlign=top width="74" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=16>
      <P></P></TD>
    <TD vAlign=top width="17" height=16>
      <P></P></TD>
    <TD vAlign=top width="223" height=16>
      <P></P></TD>
    <TD vAlign=top width="94" height=16>
      <P></P></TD>
    <TD vAlign=top width="15" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD>
    <TD vAlign=top width="7" height=16>
      <P></P></TD>
    <TD vAlign=top width="93" height=16>
      <P></P></TD>
    <TD vAlign=top width="11" height=16>
      <P></P></TD>
    <TD vAlign=top width="74" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><B><U><FONT face=Arial
      size=2>
      <P>Liabilities and Stockholders' Equity</FONT></U></B></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15>
      <P></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15>
      <P></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><FONT face=Arial size=2>
      <P>Current liabilities:</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15>
      <P></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15>
      <P></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="242" colSpan=2 height=15><FONT face=Arial size=2>
      <P>Accounts payable</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>$ 42,909 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>$ 50,459 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="242" colSpan=2 height=15><FONT face=Arial size=2>
      <P>Accrued liabilities</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>80,506 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>86,579 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="242" colSpan=2 height=15><FONT face=Arial size=2>
      <P>Notes payable and current maturities</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>20,901 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>26,654 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="17" height=15>
      <P></P></TD>
    <TD vAlign=top width="223" height=15><FONT face=Arial size=2>
      <P>Total current liabilities</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>144,316 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>163,692 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><FONT face=Arial size=2>
      <P>Long-term debt less current maturities</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>320,141 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>314,766 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><FONT face=Arial size=2>
      <P>Other long-term liabilities</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right>32,883 </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right>33,920 </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=15><FONT face=Arial size=2>
      <P>Total stockholders' equity</FONT></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp; 45,324</u> </FONT></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15><FONT face=Arial size=2>
      <P align=right><u>&nbsp;&nbsp;&nbsp; 42,131</u> </FONT></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=16>
      <P></P></TD>
    <TD vAlign=top width="17" height=16>
      <P></P></TD>
    <TD vAlign=top width="317" height=16 colspan="2"><B><FONT face=Arial size=2>
      <P>Total Liabilities and Stockholders' Equity</P></FONT></B></TD>
    <TD vAlign=top width="15" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16><FONT face=Arial size=2>
      <P align=right>$ 542,664<br>
      ======= </FONT></P></TD>
    <TD vAlign=top width="7" height=16>
      <P></P></TD>
    <TD vAlign=top width="93" height=16><FONT face=Arial size=2>
      <P align=right>$ 554,509<br>
      ======= </FONT></P></TD>
    <TD vAlign=top width="11" height=16>
      <P></P></TD>
    <TD vAlign=top width="74" height=16>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=15>
      <P></P></TD>
    <TD vAlign=top width="17" height=15>
      <P></P></TD>
    <TD vAlign=top width="223" height=15>
      <P></P></TD>
    <TD vAlign=top width="94" height=15>
      <P></P></TD>
    <TD vAlign=top width="15" height=15>
      <P></P></TD>
    <TD vAlign=top width="77" height=15>
      <P></P></TD>
    <TD vAlign=top width="7" height=15>
      <P></P></TD>
    <TD vAlign=top width="93" height=15>
      <P></P></TD>
    <TD vAlign=top width="11" height=15>
      <P></P></TD>
    <TD vAlign=top width="74" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=10 height=19 width="648"><B><FONT face=Arial size=2>
      <P align=center>SELECTED FINANCIAL INFORMATION</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=10 height=15 width="648"><FONT face=Arial size=2>
      <P align=center>(Amounts in Thousands)</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=18>
      <P></P></TD>
    <TD vAlign=top width="17" height=18>
      <P></P></TD>
    <TD vAlign=top width="223" height=18>
      <P></P></TD>
    <TD vAlign=top width="190" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Three Months Ended</FONT></B></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="182" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>Six Months Ended</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=18>
      <P></P></TD>
    <TD vAlign=top width="17" height=18>
      <P></P></TD>
    <TD vAlign=top width="223" height=18>
      <P></P></TD>
    <TD vAlign=top width="190" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="182" colSpan=3 height=18><B><FONT face=Arial size=2>
      <P align=center>June 30,</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=18>
      <P></P></TD>
    <TD vAlign=top width="17" height=18>
      <P></P></TD>
    <TD vAlign=top width="223" height=18>
      <P></P></TD>
    <TD vAlign=top width="94" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="15" height=18>
      <P></P></TD>
    <TD vAlign=top width="77" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="93" height=18><B><FONT face=Arial size=2>
      <P align=center>2003</FONT> </B></P></TD>
    <TD vAlign=top width="11" height=18>
      <P></P></TD>
    <TD vAlign=top width="74" height=18><B><FONT face=Arial size=2>
      <P align=center>2002</FONT> </B></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=18>
      <P></P></TD>
    <TD vAlign=top width="17" height=18>
      <P></P></TD>
    <TD vAlign=top width="223" height=18>
      <P></P></TD>
    <TD vAlign=top width="94" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="15" height=18>
      <P></P></TD>
    <TD vAlign=top width="77" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="93" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD>
    <TD vAlign=top width="11" height=18>
      <P></P></TD>
    <TD vAlign=top width="74" height=18><FONT face=Arial size=2>
      <P align=center>(Unaudited) </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=18>
      <P></P></TD>
    <TD vAlign=top width="17" height=18>
      <P></P></TD>
    <TD vAlign=top width="223" height=18>
      <P></P></TD>
    <TD vAlign=top width="94" height=18>
      <P></P></TD>
    <TD vAlign=top width="15" height=18>
      <P></P></TD>
    <TD vAlign=top width="77" height=18>
      <P></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="93" height=18>
      <P></P></TD>
    <TD vAlign=top width="11" height=18>
      <P></P></TD>
    <TD vAlign=top width="74" height=18>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=18><FONT face=Arial size=2>
      <P>Depreciation and amortization expense</FONT></P></TD>
    <TD vAlign=top width="94" height=18><FONT face=Arial size=2>
      <P align=right>$ 6,852 </FONT></P></TD>
    <TD vAlign=top width="15" height=18>
      <P></P></TD>
    <TD vAlign=top width="77" height=18><FONT face=Arial size=2>
      <P align=right>$ 7,742 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="93" height=18><FONT face=Arial size=2>
      <P align=right>$ 13,715 </FONT></P></TD>
    <TD vAlign=top width="11" height=18>
      <P></P></TD>
    <TD vAlign=top width="74" height=18><FONT face=Arial size=2>
      <P align=right>$ 15,108 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="263" colSpan=3 height=18><FONT face=Arial size=2>
      <P>Capital expenditures</FONT></P></TD>
    <TD vAlign=top width="94" height=18><FONT face=Arial size=2>
      <P align=right>$ 2,583 </FONT></P></TD>
    <TD vAlign=top width="15" height=18>
      <P></P></TD>
    <TD vAlign=top width="77" height=18><FONT face=Arial size=2>
      <P align=right>$ 2,503 </FONT></P></TD>
    <TD vAlign=top width="7" height=18>
      <P></P></TD>
    <TD vAlign=top width="93" height=18><FONT face=Arial size=2>
      <P align=right>$ 4,006 </FONT></P></TD>
    <TD vAlign=top width="11" height=18>
      <P></P></TD>
    <TD vAlign=top width="74" height=18><FONT face=Arial size=2>
      <P align=right>$ 4,191 </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="19" height=16>
      <P></P></TD>
    <TD vAlign=top width="17" height=16>
      <P></P></TD>
    <TD vAlign=top width="223" height=16>
      <P></P></TD>
    <TD vAlign=top width="94" height=16>
      <P></P></TD>
    <TD vAlign=top width="15" height=16>
      <P></P></TD>
    <TD vAlign=top width="77" height=16>
      <P></P></TD>
    <TD vAlign=top width="7" height=16>
      <P></P></TD>
    <TD vAlign=top width="93" height=16>
      <P></P></TD>
    <TD vAlign=top width="11" height=16>
      <P></P></TD>
    <TD vAlign=top width="74" height=16>
      <P></P></TD></TR></TABLE>
</BODY>
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{"company-data": {"conformed-name": "GENERAL BINDING CORP", "cik": "0000040461", "assigned-sic": "3579", "irs-number": "360887470", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-02604", "film-number": "03799036"}, "business-address": {"street1": "ONE GBC PLZ", "city": "NORTHBROOK", "state": "IL", "zip": "60062", "phone": "8472723700"}, "mail-address": {"street1": "ONE GBC PLZ", "city": "NORHBROOK", "state": "IL", "zip": "60062"}}
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Report as of July 23, 2003
GENERAL BINDING CORPORATION
(Exact name of
registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or
organization)
0-2604
(
Commission File Number)
36-0887470
(I.R.S. employer identification No.)
One GBC Plaza,
Northbrook, Illinois 60062
(Address of principal executive offices, including zip code)
(847) 272-3700
(Registrant's telephone number, including area
code)
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1  Press release of Registrant dated July 22, 2003.
99.2  Tables to press release of Registrant dated July 22,
2003.
Item 9. Regulation FD Disclosure (Information furnished in this Item 9 is
furnished pursuant to Item 12).
Registrant is furnishing its press release and related tables to the press
release dated July 22, 2003, which reports Registrant's second quarter 2003
results, pursuant to Item 12, "Results of Operations and Financial Condition",
of Form 8-K. The press release and related tables are included herewith as
Exhibits 99.1 and 99.2, respectively, and are incorporated herein by
reference.
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.
GENERAL BINDING CORPORATION
By:
/s/ Steven Rubin
Steven Rubin
Vice President, Secretary &
General Counsel
July 23, 2003
2
EXHIBIT 99.1
GBC REPORTS 2
nd
QUARTER 2003 RESULTS
Total Segment Operating Income Stable on Slightly Lower
Sales
Company Takes Steps to Improve Profitability
Northbrook, IL, July 22, 2003 -- General Binding Corporation (Nasdaq: GBND)
today announced results for the second quarter of 2003. Total segment operating
income for the quarter was comparable to the level posted last year, despite a
sales decline of 1.8% reflecting the continuing weak economy. In addition, the
Company reported a net loss for the quarter of $(0.32) per share, including a
pre-tax charge of $8.4 million for certain cost improvement initiatives,
compared to net income last year of $0.13 per share, which included $1.7 million
of charges.
In response to the soft sales environment and to improve its profitability,
GBC announced several initiatives during the quarter. These initiatives are
anticipated to generate over $2 million of profitability improvement in 2003,
and more than $10 million of annualized improvement after the expected
completion of the initiatives in mid-year 2004. The Company reported $8.4
million of charges related to these initiatives in the second quarter. GBC also
announced the refinancing of its senior credit facility during the quarter,
which, together with two other recent financings, are expected to generate over
$4 million of annualized interest payment savings.
"The weak economy continues to affect sales in certain areas of our
business," said Dennis Martin, GBC's Chairman, President and CEO. "However, the
Operational Excellence initiatives we undertook throughout the organization last
year to generate cost savings and increases in productivity levels have helped
considerably to stabilize our results this year. The new programs we recently
announced should contribute significant improvements in GBC's efficiencies and
profitability."
2
nd
Quarter 2003 Results
Financial results for the quarter included the following highlights:
Sales in the quarter totaled $171.2 million, down $3.2 million, or 1.8%,
    from the second quarter of 2002. International sales within the Groups were
    positively affected by exchange rate movements. Sales in the Commercial and
    Consumer Group declined by $4.9 million, or 4.2%, in the quarter over the
    prior year, due primarily to continuing lower demand in visual communication
    products, partially offset by growth in the 3-ring binder business. The
    Industrial and Print Finishing Group's sales were down $0.9 million, or
    2.7%, as lower domestic commercial films sales were not completely offset by
    higher international sales. Sales in the Europe Group were up $2.6 million,
    or 11.7%, primarily due to favorable exchange rates.
The Company's gross profit for the quarter decreased by $1.6 million, or
    0.2 points over the prior year to 39.8%, primarily related to the adverse
    effect of lower sales volumes and certain mix changes in the Commercial and
    Consumer Group, partially offset by the favorable impact of Operational
    Excellence initiatives.
Selling, service and administrative expenses were down $1.9 million, or
    3.3%, in the quarter compared to prior year, primarily due to lower levels
    of discretionary spending and variable expenses, partially offset by the
    adverse effect of exchange rate movements on international expenses.
Total segment operating income for the quarter was roughly flat compared
    to last year at $11.6 million. Operating income in the Commercial and
    Consumer and the Industrial and Print Finishing Groups were down $2.7
    million and $0.7 million, respectively, as a result of lower sales and lower
    gross profit margins. The Europe Group's operating income was up $1.9
    million due primarily to the favorable effect of exchange rates and lower
    costs.
Restructuring expense in the quarter totaled $8.4 million. This expense
    was related to the manufacturing rationalization and workforce reduction
    programs detailed below. In the second quarter of 2002, restructuring and
    other charges totaled $1.7 million.
Interest expense in the quarter totaled $10.2 million, roughly flat to
    the $10.0 million from the prior year. Included in interest expense for the
    quarter was $1.1 million related to the loss on the extinguishment of the
    Company's prior credit facility which was refinanced in June 2003.
A net loss was reported for the quarter of $(0.32) per share, including
    a pre-tax charge of $8.4 million for the aforementioned cost improvement
    initiatives, compared to net income last year of $0.13 per share, which
    included $1.7 million of charges.
Total net debt at the end of the quarter, adjusted for cash and
    equivalents, was $334 million, up roughly $11 million from the amount
    outstanding at the beginning of the year.
Six-Month Results
For the first six months of 2003, sales were $340.6 million, down 1.7% from
the same period last year. The net loss for the period was $(0.32) per share,
including pre-tax charges totaling $9.8 million. For the same period last year,
the Company reported a net loss of $(5.23) per share, including charges of $6.6
million and the cumulative effect of accounting changes totaling $79
million.
Company Comments
"In response to the continuing weak economy, we have continued to look hard
at our organization to improve our profitability," continued Mr. Martin, "and we
recently announced several major initiatives that should reduce expenses and
realign a portion of our manufacturing operations for improved profitability and
efficiencies."
"We also significantly improved our capital structure by completing the
refinancing of our senior credit facility during the quarter," continued Mr.
Martin. "This was an important financial milestone for GBC. We enhanced our
financial flexibility by significantly reducing our interest payments and
achieving a maturity date of January 2008."
"Overall," Mr. Martin concluded, "the successful implementation of GBC's
Operational Excellence initiatives has helped us weather the lack of top line
growth. We are confident that the new initiatives we undertook this quarter and
our continuing focus on long-term sales and marketing initiatives position us
well to drive growth in shareholder value as the economy improves."
Recent Actions To Improve Profitability
On July 17, the Company announced several measures to improve its cost
structure and reduce its expenses. These initiatives are anticipated to generate
over $2 million of profitability improvement in 2003 and more than $10 million
of annualized improvement after the expected completion of the initiatives in
mid-year 2004, and they include:
Booneville, MS Manufacturing Rationalization -- As part of its ongoing
    Operational Excellence Program, GBC has begun relocating certain
    labor-intensive office products manufacturing operations from its Booneville
    facility to its Nuevo Laredo, Mexico facility and outsourcing several other
    product lines. As a result, the Booneville workforce will be reduced by
    about 250 employees from a total of 660 over the next 12 months.
Workforce Reduction Program - In addition to the workforce reduction
    actions in Booneville, the Company has recently completed a reduction in
    staffing of about 115 employees at other GBC locations, bringing the total
    number of employees affected company-wide to approximately 365, or about 9%
    of GBC's total employees.
The Company expects to take charges totaling approximately $9.5 million
related to these cost reduction programs, of which $8.4 million was recognized
in the second quarter of 2003. The cash portion of the charges is estimated at
about $4 million, principally related to severance expenses. The remaining
charges will be non-cash and are mainly related to asset impairments at the
Booneville facility.
Senior Credit Facility Refinancing
On June 30, GBC announced the refinancing of its primary senior credit
facility. The new $197.5 million facility includes a $72.5 million multicurrency
revolving credit line and a $125 million term loan. The maturity date on the new
facility is January 15, 2008, and it provides for significantly lower interest
rates compared to the previous facility. The facility, led by Harris Bank,
LaSalle Bank and General Electric Capital Corporation, should provide the
financial flexibility and liquidity to support all of GBC's currently
anticipated operating and capital requirements.
GBC was successful in reducing the size of the new facility by more than $90
million from the previous facility primarily as a result of debt reduction
achieved through the successful execution of its Operational Excellence Program
and approximately $30 million of aggregate proceeds from two other recent
financings. The annualized interest payment savings from these financings is
expected to be more than $4 million.
Financial Reporting Changes
Beginning with its second quarter results, the Company's financial reporting
has been modified to reflect the strategic organizational restructuring
announced in late-2002. This change more closely aligns GBC's marketing, sales
and support functions around its key customers and end-consumers and eliminates
operational overlap. The realignment primarily consisted of combining three of
the Company's four business units into the following two new Groups:
Commercial and Consumer Group
(combination of the Document Finishing
    Group, Office Products Group, the Education division and the Asia/Pacific
    region). This combined group will focus on branding and marketing strategies
    for "consumer-ready" products that leverage GBC's leadership among customers
    of its binding, laminating and information-display products in the work,
    school and home environments.
Industrial and Print Finishing Group
(combination of the Films Group
    and the Automated Finishing division). This combined group will target
    print-for-pay and other finishing customers who use GBC's professional-grade
    finishing equipment and supplies as part of their mass production or
    sophisticated, professional applications.
Conference Call
On July 23, 2003, at 10:00 a.m. Central Time, GBC's management will host a
conference call to discuss the Company's second quarter 2003 results. The live
presentation, and an archived replay, will be available via an internet webcast
and can be accessed from the investor relations section of GBC's website at http://www.gbc.com
or at www.streetevents.com.
GBC is a world leader in products that bind, laminate, and display
information enabling people to accomplish more at work, school and home. GBC's
products are marketed in over 100 countries under the GBC, Quartet, and Ibico
brands, and they help people enhance printed materials and organize and
communicate ideas.
This press release includes forward-looking statements involving
uncertainties and risks, and there can be no assurance that actual results will
not differ from the Company's expectations. The words "should," "believe,"
"anticipates," "plans," "may," "expects" and other expressions that indicate
future events and trends identify forward-looking statements. Factors that could
cause materially-different results include, among other things, competition
within the office products and lamination film products markets, effects of
general economic conditions, the restructuring activities associated with the
integration and go-to-market strategies of the Company's business units, the
ability of the Company's distributors to successfully market the Company's
products and other risks described in the Company's filings with the S.E.C. The
Company assumes no obligation to update its forward-looking statements.
Contact: Paul J. Bors, Corporate Treasurer
(847) 291-6187
inv-rel@gbc.com (E-mail)
www.gbc.com (GBC's web site)
EXHIBIT 99.2
GBC PRESS RELEASE AND TABLES
Exhibit A to
2003 Q2 Earnings Release
GENERAL BINDING CORPORATION
THREE AND SIX MONTHS  ENDED JUNE 30, 2003
(Amounts in Thousands except Per Share Amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
CONSOLIDATED SUMMARY OF INCOME
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net sales
$ 171,150
$ 174,336
$ 340,585
$346,598
Cost of sales:
Product cost of sales, including development
and engineering
102,958
103,990
204,923
210,240
Inventory rationalization and write-down charges
-
600
-
672
Selling, service and administrative
56,416
58,315
113,965
113,800
Amortization of intangible assets
189
214
377
477
Restructuring and other:
Restructuring
8,384
961
9,789
5,130
Other
-
133
-
758
Interest expense
10,247
9,953
19,545
20,245
Other expense (income), net
137
(1,560)
(188)
(802)
(Loss) income before taxes and cumulative
effect of accounting change
(7,181)
1,730
(7,826)
(3,922)
Income tax benefits
(2,057)
(367)
(2,785)
(150)
Cumulative effect of accounting change, net of taxes (1)
-
-
-
79,024
Net (loss) income
$ (5,124)
======
$ 2,097
=====
$ (5,041)
======
$ (82,796)
=======
Earnings per share:
Basic and diluted
Before cumulative effect of accounting change
$ (0.32)
$ 0.13
$ (0.32)
$ (0.24)
Cumulative effect of accounting change
-
-
-
(4.99)
Net income (loss) per share
$ (0.32)
=====
$ 0.13
====
$ (0.32)
=====
$ (5.23)
=====
Avg. common shares outs. (basic)
15,961
15,868
15,956
15,838
Avg. common shares outs. (diluted)
15,961
16,528
15,956
15,838
(1)
GBC implemented SFAS No. 142, "Goodwill and other Intangible Assets,"
      in the first quarter of 2002. SFAS No. 142 subjects goodwill to a
      fair-value based impairment test. As a result of applying the impairment
      tests, GBC recorded a gross goodwill impairment of $110.0 million and an
      offsetting tax benefit of $31.0 million. These impairment charges were
      recorded as of January 1, 2002. This charge is non-cash and had no impact
      on the Company's operations.
Exhibit
B to
2003 Q2 Earnings Release
GENERAL
BINDING CORPORATION
SEGMENT INFORMATION
(Amounts in Thousands)
Net Sales
Three Months Ended
Net Sales
Six Months Ended
June 30,
June 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Commercial and Consumer Group
$ 111,467
$ 116,323
$ 221,037
$ 228,250
Industrial and Print Finishing Group
34,704
35,651
68,238
69,474
Europe
24,979
22,362
51,310
48,874
Total
$ 171,150
=======
$ 174,336
=======
$ 340,585
=======
$ 346,598
=======
Segment
Operating Income (1)
Three Months Ended
Segment
Operating Income (1)
Six Months Ended
June 30,
June 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Commercial and Consumer Group
$ 12,044
$ 14,738
$ 22,904
$ 28,025
Industrial and Print Finishing Group
4,646
5,367
8,965
9,453
Europe
1,206
(682)
2,494
180
Unallocated corporate items
(6,309)
(7,606)
(13,043)
(15,577)
Total
$ 11,587
======
$ 11,817
======
$ 21,320
======
$ 22,081
======
Reconciliation of Segment Operating
    Income
Three Months Ended
Six Months Ended
June 30,
June 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Total segment operating income
$ 11,587
$ 11,817
$ 21,320
$ 22,081
Interest expense
10,247
9,953
19,545
20,245
Restructuring and other expenses
8,384
1,694
9,789
6,560
Other (income) expense
137
(1,560)
(188)
(802)
Income before taxes and cumulative effect of accounting change
$ (7,181)
======
$ 1,730
=====
$ (7,826)
======
$ (3,922)
======
Notes:
(1)
Segment operating income is defined as net sales less product cost of
      sales, selling, service and administrative expenses and amortization of
      intangibles. Inventory rationalization and write-down charges,
      restructuring and other expenses are not included in segment results.
      Additionally, certain expenses of a corporate nature and certain shared
      expenses are not allocated to the business groups.
Exhibit C to
2003 Q2 Earnings Release
GENERAL BINDING CORPORATION
BALANCE SHEET
(Amounts in Thousands)
June 30,
December 31,
BALANCE SHEET SUMMARY
2003
2002
Assets
(Unaudited)
Current assets:
Cash and equivalents
$ 6,996
$ 18,251
Receivables, net
125,546
121,709
Inventories
88,940
91,920
Other
35,595
34,913
Total current assets
257,077
266,793
Capital assets, net
98,224
106,877
Other assets
187,363
180,839
Total Assets
$ 542,664
=======
$ 554,509
=======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 42,909
$ 50,459
Accrued liabilities
80,506
86,579
Notes payable and current maturities
20,901
26,654
Total current liabilities
144,316
163,692
Long-term debt less current maturities
320,141
314,766
Other long-term liabilities
32,883
33,920
Total stockholders' equity
45,324
42,131
Total Liabilities and Stockholders' Equity
$ 542,664
=======
$ 554,509
=======
SELECTED FINANCIAL INFORMATION
(Amounts in Thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Depreciation and amortization expense
$ 6,852
$ 7,742
$ 13,715
$ 15,108
Capital expenditures
$ 2,583
$ 2,503
$ 4,006
$ 4,191