Cadmus Communications Expands India Content Operations to Support Continued Strong Growth

RICHMOND, Va., June 22  /PRNewswire-FirstCall/ -- Cadmus Communications Corporation (NASDAQ:CDMS) today announced that KnowledgeWorks Global Limited ("KGL"), a wholly owned Cadmus subsidiary based in India, with operations in Mumbai and Chennai, India and a service center in Southampton, UK, has added significant capacity to its operations as a result of continued strong growth in volume.  KGL's staffing has grown from approximately 80 employees in 2003 to over 550 full-time employees today. In May of this year, KGL expanded both its Mumbai and Chennai facilities, adding capacity to accommodate 350 additional associates, as a result of the strong organic and new business growth in Cadmus' scholarly, educational and magazine publishing markets.

KGL provides a full range of content processing, content management and related services to scholarly and educational publishers, and other organizations on a global basis.  Services include account management, editorial, issue management, design, conversion, composition, coding, and content management services.  In addition, content services can be provided on Xyvision, 3B2, Quark, TeX, InDesign, and all other major content processing systems and platforms.  Finally, KGL provides services either in combination with Cadmus' United States-based content sites or directly from India to publishers in the United States or Europe.  In February of 2006, KGL received ISO 9001/2000 certification in recognition for its strong commitment to process improvement, quality controls, and associate training programs.

Atul Goel, chief operating officer, of KGL commented that, "Within our Mumbai operation, KGL provides legacy content conversion services as well as ongoing content processing services to many of the leading scholarly publishers in the U.S.  These publishers enjoy the convenience and familiarity of working with their U.S.-based Cadmus service teams while still having access to more cost-effective India-based production resources. Our Chennai operation provides direct full-service support and production to scholarly and educational publishers in both the U.S. and Europe with production teams supporting all major typesetting platforms as well as issue management and copy editing services."

"Cadmus and KGL have built proven technology tools and processes that support publishers in a global market.  We have an integrated pagination system that allows Cadmus associates in both the United States and India to access and work on pages simultaneously so that we can respond cost- effectively and quickly to customer needs," commented Mr. Goel.  "Even more than our robust technology solutions, it is our associates who give us our competitive edge.  KGL has consistently invested in its associates by providing world-class facilities, advanced automation, and continuous training and feedback.  We also employ a significant number of home-based workers which allows us to accommodate their personal commitments and gives us greater flexibility to scale our operations according to business demands.  Our customers regularly compliment us on the high quality of our XML coding and our ability to handle large complex projects."

Bruce V. Thomas, president and chief executive officer of Cadmus, remarked, "We are very pleased with the strong and broad-based growth we are seeing from our KGL operations.  We are seeing organic growth in existing accounts.  We are seeing growth in the educational and other new markets we have entered.  We are seeing growth from publishers in Europe.  And we are highly optimistic that, with additional sales resources devoted to our content business, this growth will not only continue but accelerate.  From my many trips to India, I know that Mr. Goel and his staff will be more than ready to handle this growth.  As a result of their efforts, we can now drive even more growth with complete confidence that schedules and quality will in no way be adversely impacted."

"Cadmus ... Serving Education, Science, Health"

Cadmus Communications Corporation provides end-to-end, integrated graphic communications services to professional publishers, not-for-profit societies and corporations.  Cadmus is the world's largest provider of content management and production services to scientific, technical and medical journal publishers, the fifth largest periodicals printer in North America, and a leading provider of specialty packaging and promotional printing services. Additional information about Cadmus is available at http://www.cadmus.com/.

KnowledgeWorks Global Limited ("KGL") is an Indian-based content services company that is owned by Cadmus Communications Corporation. KGL provides a full range of content processing, content management, XML coding and related services to scholarly, educational, and trade publishers around the world. KGL operates two processing centers in India, Mumbai and Chennai, with employees skilled in major publishing production platforms including XyVision, 3B2, TeX, Quark and InDesign. Additional information about KGL is available at http://www.kwglobal.com/.

Statements contained in this release relating to Cadmus' future prospects and performance are "forward-looking statements" that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.  Factors that could cause actual results to differ materially from management's expectations include but are not limited to: (1) the overall economic environment, (2) the equity market performance and interest rate environment, which can impact our pension liability, (3) the impact of price increases for energy and other materials and services affected by higher oil and fuel prices, (4) our ability to grow revenue and market share in the educational and government services markets, (5) significant price pressure in the markets in which we compete, (6) the loss of significant customers or the decrease in demand from customers, (7) our ability to continue to obtain improved efficiencies and lower production costs, (8) the financial condition and ability to pay of certain customers, (9) our ability to implement and realize the expected benefits associated with our equipment replacement and consolidation plan, including our ability to successfully complete certain consolidation initiatives and effect other restructuring actions,  (10) our ability to operate effectively in markets outside of North America, and (11) our ability to realize the tax benefits associated with certain transactions.  Other risk factors are detailed from time to time in our Securities and Exchange Commission filings.  The information provided in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements made herein. 

DATASOURCE: Cadmus Communications Corporation



CONTACT:  Paul K. Suijk, Senior Vice President and CFO of Cadmus

Communications Corporation, [phone]; Atul Goel, President and COO of

KnowledgeWorks Global Limited, [phone] 



Web site:  http://www.cadmus.com/

http://www.kwglobal.com/



Company News On-Call:  http://www.prnewswire.com/comp/115581.html

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