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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 October 22, 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 October 21, 2003.<br>
99.2&nbsp; Tables to press release of Registrant dated October 21,
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 October 21, 2003, which reports Registrant's third 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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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;&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;&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;
October 22, 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>
&nbsp;</font></B></P>
<B>
<P align=center>GBC REPORTS 3<SUP>rd</SUP> QUARTER 2003 RESULTS<br>
Improved EPS and Total Segment Operating Income on Stable
Sales</P>
</B>
<P>Northbrook, IL, October 21, 2003 -- General Binding Corporation (Nasdaq:
GBND) today announced results for the third quarter of 2003. Sales totaled $175
million, approximately level with last year, and total segment operating income
for the quarter increased by $2.0 million, or 16%. In addition, the Company
reported diluted earning per share of $0.30 per share, compared to a net loss
last year of $(0.03) per share, which included $2.5 million of charges.</P>
<P>"We are not yet seeing sustained revenue growth across our businesses, as
soft markets and capital spending constraints at many of our customers continued
to affect us in the third quarter," said Dennis Martin, GBC's Chairman,
President and CEO. "Strong sales trends with some of our new products are being
offset by declines in more traditional lines of business, particularly the
visual communication boards in our Commercial and Consumer Group and the U.S.
commercial films business in the Industrial and Print Finishing Group. While GBC
still enjoys strong name brand recognition and leading product positions in the
majority of its markets, pricing pressure in certain markets is intensifying
from both customers and competitors."</P>
<P>"Despite current market conditions, we are continuing to effectively manage
the controllable areas of our businesses through the Operational Excellence
initiatives we have been executing across the organization. Our margins continue
to improve, and our operating costs continue to decline as a result of these
activities."</P>
<P>"In addition, our ongoing focus on generating free cash flow allowed us to
reduce our net debt by about $23 million during the quarter. Interest expense is
also down materially as a result of lower interest rates achieved through the
refinancing we completed at the end of the second quarter, as well as lower debt
levels during the quarter."</P><U>
<B>
<P>3<SUP>rd</SUP> Quarter 2003 Results</P></B></U>
<P>Financial results for the quarter included the following highlights:</P>
<blockquote>
  <p>Sales totaled $175 million, roughly flat with the $176 million recorded
    for the third quarter of 2002. International sales within all of the Groups
    were positively affected by exchange rate movements. Sales in the Commercial
    and Consumer Group were stable at $119 million relative to last year, as
    continuing lower demand in visual communication products was offset by
    growth in the three-ring binder business. The Industrial and Print Finishing
    Group's sales were down $1.2 million, or 3.4%, as lower domestic commercial
    films sales were not completely offset by higher international films sales.
    Sales in the Europe Group were up $0.7 million, or 3.3%, due to favorable
    exchange rates. </p>
  <p>The Company's gross profit margin increased by 0.5 points to 39.9%
    compared to the prior year, as the favorable impact of Operational
    Excellence initiatives and foreign exchange rates offset the adverse effect
    of slightly lower sales volumes and certain mix changes in the Commercial
    and Consumer Group.
  <p>Selling, service and administrative expenses were down $1.4 million, or
    2.5%, compared to prior year, primarily due to lower levels of discretionary
    spending in the Commercial and Consumer Group.
  <p>Total segment operating income was $15.1 million, up $2.0 million
    compared to last year. Operating income in the Commercial and Consumer Group
    increased $2.0 million due to lower operating expenses. Income in the
    Industrial and Print Finishing Group was roughly flat, as reduced sales in
    the US commercial films business were offset by lower operating expenses.
    The Europe Group's operating income was up $0.5 million due to an improved
    gross profit margin resulting from sourcing initiatives and favorable
    exchange rates. Corporate expenses were higher in 2003 primarily due to
    increases in medical and insurance costs.
  <p>Interest expense totaled $7.6 million, down 25% from the $10.1 million
    recorded last year. The decrease was primarily due to lower interest rates
    on the Company's borrowings resulting from the Company's refinancings
    completed in the second quarter, as well as lower average debt levels during
    the quarter.
  <p>Net income totaled $0.30 per diluted share, compared to a net loss last
    year of $(0.03) per share, which included $2.5 million of charges.
  <p>Total net debt at the end of the quarter, adjusted for cash and
    equivalents, was $311 million, down $23 million from the amount outstanding
    at the end of the second quarter of the year and down a cumulative $12
    million from year-end.
</blockquote>
<U>
<B>
<P>Nine-Month Results</P></B></U>
<P>For the first nine months of 2003, sales were $516 million, down 1.3% from
the same period last year. The net loss for the period was $(0.01) per share,
including pre-tax charges totaling $9.8 million, compared to a net loss of
$(5.24) per share last year, including pre-tax charges of $8.0 million and the
cumulative effect of the accounting change of $79 million, net of tax.</P><U>
<B>
<P>Conference Call</P></B></U>
<P>On October 22, 2003, at 10:00 a.m. Central Time, GBC's management will host a
conference call to discuss the Company's third 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

www.gbc.com or at www.streetevents.com.</P>
<P>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.</P><I><FONT size=2>
<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></FONT>
</I>
<FONT size=2>
<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>
<P>&nbsp;</P>
</FONT>
<B>
<P align=center>&nbsp;</P>
<P align=center>EXHIBIT 99.2<br>
GBC PRESS RELEASE AND TABLES</P>
<P align=right>Exhibit A to&nbsp;<br>
2003 Q3 Earnings Release&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><font size="2">GENERAL BINDING CORPORATION<br>
THREE AND NINE MONTHS&nbsp; ENDED SEPTEMBER 30, 2003<br>
</font>
</B>
<font size="2">(Amounts in Thousands except Per Share Amounts)</font></P>
<TABLE borderColor=#000000 cellSpacing=0 cellpadding=0 width=638 border=0 height="587">
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="138" colSpan=3 height=21><B>
      <P align=center><font face="Times New Roman" size="2">Three Months Ended<br>
      <u>September 30,</u></font></B></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="163" colSpan=3 height=21><B>
      <P align=center><font face="Times New Roman" size="2">Nine Months Ended<br>
      <u>September 30,</u></font></B></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21><B><U>
      <P><font face="Times New Roman" size="2">CONSOLIDATED SUMMARY OF INCOME</font></U></B></P></TD>
    <TD vAlign=bottom width="75" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font> </u> </B></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font> </u> </B></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font> </u> </B></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font> </u> </B></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Net sales</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 175,092</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 175,911</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 515,677</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">$522,509</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Cost of sales:</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=32>
      <P></P></TD>
    <TD vAlign=bottom width="375" colSpan=2 height=32><P><font face="Times New Roman" size="2">Product cost of sales, including
      development<br>
      and engineering</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      105,143</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      106,590</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      310,066</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      316,830</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="375" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Inventory rationalization and write-down charges</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">-</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">-</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">-</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">672</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Selling, service and administrative</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">54,665</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">56,081</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">168,630</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">169,881</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Amortization of intangible assets</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">188</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">187</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">565</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">664</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Restructuring and other:</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="375" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Restructuring</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">-</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">1,303</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">9,789</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">6,433</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="375" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Other</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">-</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">119</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">-</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">877</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Interest expense</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">7,546</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">10,053</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">27,091</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">30,298</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Other expense (income), net</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><u><font face="Times New Roman" size="2">&nbsp;69</font></u></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><u><font face="Times New Roman" size="2">&nbsp;1,222</font></u></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><u><font face="Times New Roman" size="2">&nbsp;(119)</font></u></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><u><font face="Times New Roman" size="2">&nbsp;420</font></u></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21><P><font face="Times New Roman" size="2">Income (loss) before taxes and cumulative<br>
      effect of accounting change</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      7,481</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      356</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      (345)</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2"><br>
      (3,566)</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Income tax expense (benefits)</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">2,595</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">777</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">(190)</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">627</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=19>
      <P><font face="Times New Roman" size="2">Cumulative effect of accounting change, net of taxes (1)</font></P></TD>
    <TD vAlign=bottom width="75" height=19>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="3" height=19>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=19>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="5" height=19>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=19>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="6" height=19>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=19>
      <P align=right><u><font face="Times New Roman" size="2">79,024</font></u></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P><font face="Times New Roman" size="2">Net income (loss)<br>
&nbsp;</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 4,886<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (421)<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (155)<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (83,217)<br>
      =======</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Earnings per share:</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="375" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Basic</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=20>
      <P><font face="Times New Roman" size="2">Before cumulative effect of accounting change</font></P></TD>
    <TD vAlign=bottom width="75" height=20>
      <P align=right><font face="Times New Roman" size="2">$ 0.31</font></P></TD>
    <TD vAlign=bottom width="3" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=20>
      <P align=right><font face="Times New Roman" size="2">$ (0.03)</font></P></TD>
    <TD vAlign=bottom width="5" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=20>
      <P align=right><font face="Times New Roman" size="2">$ (0.01)</font></P></TD>
    <TD vAlign=bottom width="6" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=20>
      <P align=right><font face="Times New Roman" size="2">$ (0.26)</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P><font face="Times New Roman" size="2">Cumulative effect of accounting change</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><u><font face="Times New Roman" size="2">(4.98)</font></u></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P><font face="Times New Roman" size="2">Net income (loss) per share</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 0.31<br>
      ====</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (0.03)<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (0.01)<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (5.24)<br>
      =====</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="375" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Diluted</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=25>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=25>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=25>
      <P><font face="Times New Roman" size="2">Before cumulative effect of accounting change</font></P></TD>
    <TD vAlign=bottom width="75" height=25>
      <P align=right><font face="Times New Roman" size="2">$ 0.30</font></P></TD>
    <TD vAlign=bottom width="3" height=25>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=25>
      <P align=right><font face="Times New Roman" size="2">$ (0.03)</font></P></TD>
    <TD vAlign=bottom width="5" height=25>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=25>
      <P align=right><font face="Times New Roman" size="2">$ (0.01)</font></P></TD>
    <TD vAlign=bottom width="6" height=25>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=25>
      <P align=right><font face="Times New Roman" size="2">$ (0.26)</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P><font face="Times New Roman" size="2">Cumulative effect of accounting change</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><u><font face="Times New Roman" size="2">-</font></u></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><u><font face="Times New Roman" size="2">(4.98)</font></u></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="20" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="8" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="359" height=21>
      <P><font face="Times New Roman" size="2">Net income (loss) per share</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 0.30<br>
      ====</font></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (0.03)<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (0.01)<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><font face="Times New Roman" size="2">$ (5.24)<br>
      =====</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Avg. common shares outs. (basic)</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      15,984 </FONT></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      15,927 </FONT></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      15,966 </FONT></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      15,866 </FONT></P></TD>
  </TR>
  <tr>
    <TD vAlign=bottom width="403" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Avg. common shares outs. (diluted)</font></P></TD>
    <TD vAlign=bottom width="75" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      16,553 </FONT></P></TD>
    <TD vAlign=bottom width="3" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="70" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      15,927 </FONT></P></TD>
    <TD vAlign=bottom width="5" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="68" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      15,966 </FONT></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="73" height=21>
      <P align=right><FONT face='Times New Roman' size="2">
      15,866 </FONT></P></TD>
  </tr>
  <TR>
    <TD vAlign=bottom width="703" colSpan=10 height=21>&nbsp;
      <p><font face="Times New Roman" size="2">(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.</font></TD>
  </TR>
  </TABLE>
<P align="right"><b><font face="Times,Times New Roman" size="3">Exhibit
B to<br>
2003 Q3 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 borderColor=#000000 cellSpacing=0 cellpadding=0 width=635 border=0 height="600">
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="190" height=18 colspan="3"><B><P align=center><font face="Times New Roman" size="2">Net Sales<br>
      Three Months Ended<br>
      <u>September 30,</u></font></P></B></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="201" height=18 colspan="3"><B>
      <P align=center><font face="Times New Roman" size="2">Net Sales<br>
      Nine Months Ended<br>
      <u>September 30,</u></font></P></B></TD>
  </TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u> </B></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u> </B></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u> </B></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u> </B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Commercial and Consumer Group</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 118,818</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 119,165</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 339,855</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 347,415</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Industrial and Print Finishing Group</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">33,853</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">35,033</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">102,091</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">104,507</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Europe</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><u><font face="Times New Roman" size="2">22,421</font></u></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><u><font face="Times New Roman" size="2">21,713</font></u></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><u><font face="Times New Roman" size="2">73,731</font></u></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><u><font face="Times New Roman" size="2">70,587</font></u></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Total</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 175,092<br>
      =======</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 175,911<br>
      =======</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 515,677<br>
      =======</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 522,509<br>
      =======</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="190" colSpan=3 height=18><B><P align=center><font face="Times New Roman" size="2">Segment<br>
      Operating Income (1)<br>
      Three Months Ended<br>
      <u>September 30,</u></font></B></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="201" colSpan=3 height=18><B>
      <P align=center><font face="Times New Roman" size="2">Segment<br>
      Operating Income (1)<br>
      Three Months Ended<br>
      <u>September 30,</u></font><u> </u> </B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u></B></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u></B></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u></B></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u></B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Commercial and Consumer Group</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 16,417</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 14,442</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 39,321</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 42,467</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Industrial and Print Finishing Group</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">4,495</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">4,363</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">13,460</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">13,816</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Europe</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">185</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">(363)</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">2,679</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">(183)</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Unallocated corporate items</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><u><font face="Times New Roman" size="2">(6,001)</font></u></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><u><font face="Times New Roman" size="2">(5,389)</font></u></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><u><font face="Times New Roman" size="2">(19,044)</font></u></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><u><font face="Times New Roman" size="2">(20,966)</font></u></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Total</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 15,096<br>
      ======</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 13,053<br>
      ======</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 36,416<br>
      ======</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 35,134<br>
      ======</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="9" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="3" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="10" height=15>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=15>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="406" colSpan=7 height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">Reconciliation of Segment Operating
    Income</font></u></B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="190" colSpan=3 height=18><B><P align=center><font face="Times New Roman" size="2">Three Months Ended<br>
      <u>September 30,</u></font></B></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="201" colSpan=3 height=18><B>
      <P align=center><font face="Times New Roman" size="2">Nine Months Ended<br>
      <u>September 30,</u></font></B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u> </B></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u> </B></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u> </B></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u> </B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Total segment operating income</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 15,096</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 13,053</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 36,416</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">$ 35,134</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Interest expense</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">7,546</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">10,053</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">27,091</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">30,298</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Restructuring and other expenses</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2">-</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2">1,422</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2">9,789</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2">7,982</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="199" height=18>
      <P><font face="Times New Roman" size="2">Other expense (income)</font></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="2" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><u><font face="Times New Roman" size="2">69</font></u></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><u><font face="Times New Roman" size="2">1,222</font></u></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><u><font face="Times New Roman" size="2">(119)</font></u></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><u><font face="Times New Roman" size="2">420</font></u></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="196" colSpan=3 height=18>
      <P><font face="Times New Roman" size="2">Income (loss) before taxes and cumulative effect
      of accounting change</font></P></TD>
    <TD vAlign=bottom width="88" height=18>
      <P align=right><font face="Times New Roman" size="2"><br>
      <br>
      $ 7,481<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="9" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="81" height=18>
      <P align=right><font face="Times New Roman" size="2"><br>
      <br>
      $ 356<br>
      ====</font></P></TD>
    <TD vAlign=bottom width="3" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="80" height=18>
      <P align=right><font face="Times New Roman" size="2"><br>
      <br>
      $ (345)<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="10" height=18>
      <P></P></TD>
    <TD vAlign=bottom width="99" height=18>
      <P align=right><font face="Times New Roman" size="2"><br>
      <br>
      $ (3,566)<br>
      ======</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom colSpan=10 height=18 width="608">
      <P><br>
      <font face="Times New Roman" size="2">Notes<br>
      (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.</font></P>
      </TD></TR>
  </TABLE>
<p align="right">&nbsp;</p>
<p align="right"><font size="3"><b>Exhibit C to<br>
2003 Q3 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=643 border=0 height="600">
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21><B>
      <P align=center><font face="Times New Roman" size="2">September 30,<br>
      <u>2003</u></font></B></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21><B>
      <P align=center><font face="Times New Roman" size="2">December 31,<br>
      <u>2002</u></font></B></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21><B><U>
      <P><font face="Times New Roman" size="2">BALANCE SHEET SUMMARY</font></U></B></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21></TD>
    <TD vAlign=bottom width="6" height=21>
    </TD>
    <TD vAlign=bottom width="85" height=21></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21><B><U>
      <P><font face="Times New Roman" size="2">Assets</font></U></B></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Current assets:</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="297" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Cash and equivalents</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 11,271</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 18,251</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="297" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Receivables, net</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">127,744</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">121,709</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="297" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Inventories</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">90,093</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">91,920</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="297" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Other</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">34,489</font></u></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">34,913</font></u></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P><font face="Times New Roman" size="2">Total current assets</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">263,597</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">266,793</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Capital assets, net</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">95,785</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">106,877</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Other assets</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">186,955</font></u></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">180,839</font></u></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21><B>
      <P><font face="Times New Roman" size="2">Total Assets</font></B></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 546,337<br>
      =======</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 554,509<br>
      =======</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21><B><U>
      <P><font face="Times New Roman" size="2">Liabilities and Stockholders' Equity</font></U></B></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Current liabilities:</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="297" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Accounts payable</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 46,345</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 50,459</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="297" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Accrued liabilities</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">92,208</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">86,579</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="297" colSpan=2 height=21>
      <P><font face="Times New Roman" size="2">Notes payable and current maturities</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">19,428</font></u></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">26,653</font></u></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P><font face="Times New Roman" size="2">Total current liabilities</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">157,981</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">163,691</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Long-term debt less current maturities</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">302,649</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">314,766</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Other long-term liabilities</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">33,851</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">33,921</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Total stockholders' equity</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">51,856</font></u></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><u><font face="Times New Roman" size="2">42,131</font></u></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21><B>
      <P><font face="Times New Roman" size="2">Total Liabilities and Stockholders' Equity</font></B></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 546,337<br>
      =======</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 554,509<br>
      =======</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="64" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=20>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=20>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=bottom colSpan=10 height=17 width="621"><B>
      <P align=center><font face="Times New Roman" size="2">SELECTED FINANCIAL INFORMATION</font></B><font face="Times New Roman" size="2"><br>
      (Amounts in Thousands)</font></P>
      <P align=center>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="174" colSpan=3 height=21><B>
      <P align=center><font face="Times New Roman" size="2">Three Months Ended<br>
      <u>September 30,</u></font></B></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="147" colSpan=3 height=21><B>
      <P align=center><font face="Times New Roman" size="2">Nine Months Ended<br>
      <u>September 30,</u></font></B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="64" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u> </B></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u> </B></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2003</font></u> </B></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21><B>
      <P align=center><u><font face="Times New Roman" size="2">2002</font></u> </B></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P align=center><font face="Times New Roman" size="2">(Unaudited)</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Depreciation and amortization expense</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 6,191<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 6,980<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 19,906<br>
      ======</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 22,088<br>
      ======</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="317" colSpan=3 height=21>
      <P><font face="Times New Roman" size="2">Capital expenditures</font></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 1,944<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 2,103<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 5,950<br>
      =====</font></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P align=right><font face="Times New Roman" size="2">$ 6,294<br>
      =====</font></P></TD></TR>
  <TR>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="14" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="277" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="64" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="13" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="6" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="85" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="28" height=21>
      <P></P></TD>
    <TD vAlign=bottom width="74" height=21>
      <P></P></TD></TR>
  <TR>
    <TD vAlign=top width="14" height=21>
      <P></P></TD>
    <TD vAlign=top width="14" height=21>
      <P></P></TD>
    <TD vAlign=top width="277" height=21>
      <P></P></TD>
    <TD vAlign=top width="64" height=21>
      <P></P></TD>
    <TD vAlign=top width="13" height=21>
      <P></P></TD>
    <TD vAlign=top width="85" height=21>
      <P></P></TD>
    <TD vAlign=top width="6" height=21>
      <P></P></TD>
    <TD vAlign=top width="85" height=21>
      <P></P></TD>
    <TD vAlign=top width="28" height=21>
      <P></P></TD>
    <TD vAlign=top width="74" height=21>
      <P></P></TD></TR></TABLE>
</BODY>
[{"type": "8-K", "sequence": "1", "filename": "gbceightkq303.htm", "description": "GBC Q3 PRESS RELEASE", "secsgml_size_bytes": 90925}]
{"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": "03951288"}, "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 October 22, 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 October 21, 2003.
99.2  Tables to press release of Registrant dated October 21,
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 October 21, 2003, which reports Registrant's third 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
October 22, 2003
2
EXHIBIT 99.1
GBC REPORTS 3
rd
QUARTER 2003 RESULTS
Improved EPS and Total Segment Operating Income on Stable
Sales
Northbrook, IL, October 21, 2003 -- General Binding Corporation (Nasdaq:
GBND) today announced results for the third quarter of 2003. Sales totaled $175
million, approximately level with last year, and total segment operating income
for the quarter increased by $2.0 million, or 16%. In addition, the Company
reported diluted earning per share of $0.30 per share, compared to a net loss
last year of $(0.03) per share, which included $2.5 million of charges.
"We are not yet seeing sustained revenue growth across our businesses, as
soft markets and capital spending constraints at many of our customers continued
to affect us in the third quarter," said Dennis Martin, GBC's Chairman,
President and CEO. "Strong sales trends with some of our new products are being
offset by declines in more traditional lines of business, particularly the
visual communication boards in our Commercial and Consumer Group and the U.S.
commercial films business in the Industrial and Print Finishing Group. While GBC
still enjoys strong name brand recognition and leading product positions in the
majority of its markets, pricing pressure in certain markets is intensifying
from both customers and competitors."
"Despite current market conditions, we are continuing to effectively manage
the controllable areas of our businesses through the Operational Excellence
initiatives we have been executing across the organization. Our margins continue
to improve, and our operating costs continue to decline as a result of these
activities."
"In addition, our ongoing focus on generating free cash flow allowed us to
reduce our net debt by about $23 million during the quarter. Interest expense is
also down materially as a result of lower interest rates achieved through the
refinancing we completed at the end of the second quarter, as well as lower debt
levels during the quarter."
3
rd
Quarter 2003 Results
Financial results for the quarter included the following highlights:
Sales totaled $175 million, roughly flat with the $176 million recorded
    for the third quarter of 2002. International sales within all of the Groups
    were positively affected by exchange rate movements. Sales in the Commercial
    and Consumer Group were stable at $119 million relative to last year, as
    continuing lower demand in visual communication products was offset by
    growth in the three-ring binder business. The Industrial and Print Finishing
    Group's sales were down $1.2 million, or 3.4%, as lower domestic commercial
    films sales were not completely offset by higher international films sales.
    Sales in the Europe Group were up $0.7 million, or 3.3%, due to favorable
    exchange rates.
The Company's gross profit margin increased by 0.5 points to 39.9%
    compared to the prior year, as the favorable impact of Operational
    Excellence initiatives and foreign exchange rates offset the adverse effect
    of slightly lower sales volumes and certain mix changes in the Commercial
    and Consumer Group.
Selling, service and administrative expenses were down $1.4 million, or
    2.5%, compared to prior year, primarily due to lower levels of discretionary
    spending in the Commercial and Consumer Group.
Total segment operating income was $15.1 million, up $2.0 million
    compared to last year. Operating income in the Commercial and Consumer Group
    increased $2.0 million due to lower operating expenses. Income in the
    Industrial and Print Finishing Group was roughly flat, as reduced sales in
    the US commercial films business were offset by lower operating expenses.
    The Europe Group's operating income was up $0.5 million due to an improved
    gross profit margin resulting from sourcing initiatives and favorable
    exchange rates. Corporate expenses were higher in 2003 primarily due to
    increases in medical and insurance costs.
Interest expense totaled $7.6 million, down 25% from the $10.1 million
    recorded last year. The decrease was primarily due to lower interest rates
    on the Company's borrowings resulting from the Company's refinancings
    completed in the second quarter, as well as lower average debt levels during
    the quarter.
Net income totaled $0.30 per diluted share, compared to a net loss last
    year of $(0.03) per share, which included $2.5 million of charges.
Total net debt at the end of the quarter, adjusted for cash and
    equivalents, was $311 million, down $23 million from the amount outstanding
    at the end of the second quarter of the year and down a cumulative $12
    million from year-end.
Nine-Month Results
For the first nine months of 2003, sales were $516 million, down 1.3% from
the same period last year. The net loss for the period was $(0.01) per share,
including pre-tax charges totaling $9.8 million, compared to a net loss of
$(5.24) per share last year, including pre-tax charges of $8.0 million and the
cumulative effect of the accounting change of $79 million, net of tax.
Conference Call
On October 22, 2003, at 10:00 a.m. Central Time, GBC's management will host a
conference call to discuss the Company's third 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

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 Q3 Earnings Release
GENERAL BINDING CORPORATION
THREE AND NINE MONTHS  ENDED SEPTEMBER 30, 2003
(Amounts in Thousands except Per Share Amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
CONSOLIDATED SUMMARY OF INCOME
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net sales
$ 175,092
$ 175,911
$ 515,677
$522,509
Cost of sales:
Product cost of sales, including
      development
and engineering
105,143
106,590
310,066
316,830
Inventory rationalization and write-down charges
-
-
-
672
Selling, service and administrative
54,665
56,081
168,630
169,881
Amortization of intangible assets
188
187
565
664
Restructuring and other:
Restructuring
-
1,303
9,789
6,433
Other
-
119
-
877
Interest expense
7,546
10,053
27,091
30,298
Other expense (income), net
69
1,222
(119)
420
Income (loss) before taxes and cumulative
effect of accounting change
7,481
356
(345)
(3,566)
Income tax expense (benefits)
2,595
777
(190)
627
Cumulative effect of accounting change, net of taxes (1)
-
-
-
79,024
Net income (loss)
$ 4,886
=====
$ (421)
=====
$ (155)
=====
$ (83,217)
=======
Earnings per share:
Basic
Before cumulative effect of accounting change
$ 0.31
$ (0.03)
$ (0.01)
$ (0.26)
Cumulative effect of accounting change
-
-
-
(4.98)
Net income (loss) per share
$ 0.31
====
$ (0.03)
=====
$ (0.01)
=====
$ (5.24)
=====
Diluted
Before cumulative effect of accounting change
$ 0.30
$ (0.03)
$ (0.01)
$ (0.26)
Cumulative effect of accounting change
-
-
-
(4.98)
Net income (loss) per share
$ 0.30
====
$ (0.03)
=====
$ (0.01)
=====
$ (5.24)
=====
Avg. common shares outs. (basic)
15,984
15,927
15,966
15,866
Avg. common shares outs. (diluted)
16,553
15,927
15,966
15,866
(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 Q3 Earnings Release
GENERAL
BINDING CORPORATION
SEGMENT INFORMATION
(Amounts in Thousands)
Net Sales
Three Months Ended
September 30,
Net Sales
Nine Months Ended
September 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Commercial and Consumer Group
$ 118,818
$ 119,165
$ 339,855
$ 347,415
Industrial and Print Finishing Group
33,853
35,033
102,091
104,507
Europe
22,421
21,713
73,731
70,587
Total
$ 175,092
=======
$ 175,911
=======
$ 515,677
=======
$ 522,509
=======
Segment
Operating Income (1)
Three Months Ended
September 30,
Segment
Operating Income (1)
Three Months Ended
September 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Commercial and Consumer Group
$ 16,417
$ 14,442
$ 39,321
$ 42,467
Industrial and Print Finishing Group
4,495
4,363
13,460
13,816
Europe
185
(363)
2,679
(183)
Unallocated corporate items
(6,001)
(5,389)
(19,044)
(20,966)
Total
$ 15,096
======
$ 13,053
======
$ 36,416
======
$ 35,134
======
Reconciliation of Segment Operating
    Income
Three Months Ended
September 30,
Nine Months Ended
September 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Total segment operating income
$ 15,096
$ 13,053
$ 36,416
$ 35,134
Interest expense
7,546
10,053
27,091
30,298
Restructuring and other expenses
-
1,422
9,789
7,982
Other expense (income)
69
1,222
(119)
420
Income (loss) before taxes and cumulative effect
      of accounting change
$ 7,481
=====
$ 356
====
$ (345)
=====
$ (3,566)
======
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 Q3 Earnings Release
GENERAL BINDING CORPORATION
BALANCE SHEET
(Amounts in Thousands)
September 30,
2003
December 31,
2002
BALANCE SHEET SUMMARY
Assets
(Unaudited)
Current assets:
Cash and equivalents
$ 11,271
$ 18,251
Receivables, net
127,744
121,709
Inventories
90,093
91,920
Other
34,489
34,913
Total current assets
263,597
266,793
Capital assets, net
95,785
106,877
Other assets
186,955
180,839
Total Assets
$ 546,337
=======
$ 554,509
=======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 46,345
$ 50,459
Accrued liabilities
92,208
86,579
Notes payable and current maturities
19,428
26,653
Total current liabilities
157,981
163,691
Long-term debt less current maturities
302,649
314,766
Other long-term liabilities
33,851
33,921
Total stockholders' equity
51,856
42,131
Total Liabilities and Stockholders' Equity
$ 546,337
=======
$ 554,509
=======
SELECTED FINANCIAL INFORMATION
(Amounts in Thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2003
2002
2003
2002
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Depreciation and amortization expense
$ 6,191
=====
$ 6,980
=====
$ 19,906
======
$ 22,088
======
Capital expenditures
$ 1,944
=====
$ 2,103
=====
$ 5,950
=====
$ 6,294
=====