Good day, everyone, and welcome to Standard Register's fourth quarter and full year 2007 conference call. As a reminder, the presentation slides for today's conference are available by accessing the Investor Center's section of the Standard Register website at www.standardregister.com/investorcenter. Before we begin, a spokesperson from Standard Register will read a brief statement.

This report includes forward-looking statements covered by the Private Securities Litigation Reform Act of 1995. Because such statements deal with the future events, they are subject to various risks and uncertainties, and actual results for fiscal year 2008 and beyond could differ materially from the company's current expectations. Forward-looking statements are identified by words such as anticipates, projects, expects, plans, intends, believes, estimates, targets and other similar expressions that indicate trends and future events. Factors that could cause the company's results to differ materially from those expressed in forward-looking statements include, without limitation, variation in demand and acceptance of the company's products and services, the frequency, magnitude and timing of paper and other raw material price changes, general business and economic conditions beyond the company's control, the timing of the completion and integration of acquisitions, the consequences of competitive factors in the marketplace, cost containment strategies and the company's success in attracting and retaining key personnel. Additional information concerning factors that could cause actual results to differ materially from those projected is contained in the company's filing with the Securities and Exchange Commission, including its report on Form 10-K for the year ended December 30, 2007. The company undertakes no obligation to revise or update forward-looking statements as a result of new information, since these statements may no longer be accurate or timely.

Thank you. We will now turn the conference over to Mr. Dennis Rediker, President and Chief Executive Officer of Standard Register. Mr. Rediker, please go ahead.

Thank you and good morning everyone, and welcome to the fourth quarter and year-end Earnings Call. As usual Craig Brown, CFO and Bob Cestelli, VP of Investor Relations are here with me. I'm going to make a few comments, but my comments are going to not talk about the numbers so much, just talk about the sort of framework and the things I want you to think about as Craig goes through explanation of the numbers, so you have a way to understand the way we are looking at things. So with that, I'll just launch into it. In our last call, on the third quarter call, we reported significantly improved operating profit, and in this case and all of my discussion, operating profit is defined as profit before restructuring, impairment and pension amortization and settlement. Our third quarter '07 profit benefited from our cost reduction initiative that we started in July and a significant portion of that cost reduction came from headcount reduction, mainly in the form of mid-management position consolidation and other SG&A reductions. As you will hear, as you read already, this carrying over into the fourth quarter results, so that the second half is kind of a new base for improved results for the company. And the cost reduction initiative, we target a $40 million annualized cost reduction, of which we expected about $15 million in '07 and rest in '08. Currently, when we go through it, we see that we've got a run rate tract that we can see to achieve about $35 million of that cost reduction during '08 and of course we will be striving to achieve the rest and maybe even more. We do have solid activity in terms of bringing new accounts into the company and that's important because as you…

Thank you, Dennis. Good morning, everyone. Before we go through the P&L and few of the balance sheet and cash flow items, I thought I would touch on three items. First I want to talk about is our costs reduction program. Also I have comment on our pension settlement charge in the quarter. And I will end with a comment about some changes that we have in the works with regard to our segment reporting. With regard to the cost reduction program, you will recall that we have targeted a $40 million annualized savings and as of the end of this year, we are running currently at a rate of about annualized savings of around $35 million, so we have done a good of moving toward our target. Our goal for the second half of '07 compared to the first half of '07 was to save $15 million, which would be a $30 million annualized rate. And we have exceeded that goal as the $35 million annualized savings number indicates. And we have programs in place and we are still working toward the original target of $40 million. The cost of this restructuring program amounted to about $8 million, so there was a favorable comparison between the cost of restructuring and the annualized $35 million in savings. As Dennis indicated, the vast majority of this will accrue the bottom line, but we are reinvesting some of it for long-term investment, long-term growth. So if you look at our year or so, in 2007 it becomes to some extent a tale of two different halves, the first half versus the second half. Our second half was $12 million lower in revenue compared to the first half, some of that related to seasonality of our third quarter which is typically weaker. But…

(Operator Instructions) We already have our first question from Jamie Clement from Sidoti & Company.

Jamie?

Hello.

Jamie?

Yeah. Craig, I can hear you.

At Sidoti and we are glad you are on the call.

Thank you very much. I appreciate that. Good morning, Dennis and Craig, let me ask you a little bit about some of the reinvestment plans in 2008. And obviously, Craig alluded or Dennis, I forgot whose prepared remarks this was in, and obviously '07 a tale of two halves, if you will. To me in kind of looking at the $40 million some odd of operating income excluding pension-related items, restructuring and all that, a low double-digit growth number in 2008. To me assumes that you're going to be taking a reasonable step back off the level of profitability on that you all showed in the second half of 2007. I mean I just sort of the way I kind of get to my numbers. Can you talk a little bit about, first of all, is that accurate? And second of all, are any of the cost, the investment cost that you are talking about, I mean if you are talking about additions to the sales force, how long does it typically takes salesmen to ramp up? Are there costs that you're going to be facing in the near-term, and for example in 2009 you might not be facing? Can you give us a little bit more clarity on that?

Sure. Let me just sort of just build off the second half. I think that's where you started your question?

Yes.

So the second half, if you would add the operating profit before restructuring amortization and the pension charges, you have about $32.7 million.

Okay.

That included as I indicated about $5 million of non-recurring.

Yes.

So back that off and you are $27.5 million or so.

Yes.

Multiply that by 2, and now you are running at annualized rate of about $55 million.

Yes.

Now, we signaled that we -- in Dennis' comment I think he mentioned that we expected to continue to see a favorable mix change in our business but at the traditional products, we are going to continue to be under pressure and so net-net, for revenue, we expect our revenue in '08 to be not significantly different than '07.

Right.

But if you compare that total year revenue that would result in '08 under that assumption to our second half revenue run rate, you would see that that is still a step up for us considering the run rate.

Yes.

Now, if you take that revenue increase, which would be $10 million, $11 million, $12 million or something there versus the second half and apply a margin to that, you might add another let's just say $3 million or so to that $55 million operating profit number we got to a moment ago.

Yes.

Follow me?

Yes.

So that put us in the high 50s 58 or so.

Right.

In terms of investments, we have merit increase that we pay here and comp kind of things that are going to be in the just say $4 million to $ 5 million range. We have marketing programs that we are kicking off, Dennis mentioned a couple of things on sales, and so if you were to just take for sake of this discussion, about $8 million okay, off that $58 million, you are around $50 million.

Yes.

That $50 million compared to the $45 million is about a low double digit.

Right.

Okay. Now that's kind of the baseline.

Yes.

Now in giving guidance, we are not giving you the best it could possibly be.

Right.

What we are giving you is sort of some guidance to get you to a logic.

Right.

Now, there are other things going on of course. We are still targeting our $40 million, so that could be another $5 million.

Right.

We could do a little better in revenue.

Yeah.

And the mix effect will probably help us. So those are all positives.

Right.

The negative side, we had very good healthcare experience this year, exceptionally good. We aren't necessarily going to count on that again.

Yeah.

And paper costs have been announced, we have an increase in paper costs coming up.

Sure.

And we will recover that, but we don't always recover immediately, it's a quarter or two. So that's going to be a little bit of solution as we go long, but we think we will recover as we always do. So those are pluses and minuses. So rather than be on the upside of every one of those pluses and the downside of every one of those minuses, we have decided to signal the number that we gave. So that's our explanation.

Sure. And just if I one other, and I know that there was a list of questions. But if you are expanding the sales force, presumably that is to address proceed needs in the growth of your areas of your business, I assume that's right, right?

Well, yeah, it's to develop new talent, especially for the new products and services and capabilities, but also we need to continue to bring people along in our sales force to be replacing the ones that get a little older and retire.

Sure. Although that presumably would not be something, I mean I guess temporarily that would cost your money. But how long does it typically take a salesman to ramp up in your organization?

Generally speaking, our overall objective here is to improve the productivity of our force of the sales people that are in the sort of one to five years with us. We would expect a sales person after the first year to sort of the earning they are keeping contributing. They don't really reach because it's more complicated custom solution sell. We really don't reach, most of them don't reach the sort of a good real potential for probably year two or three.

Okay. Thanks very much. I'll let somebody else get on. Thank you.

You are welcome.

Our next question is from Charles Strauzer from CJS Securities. Your line is open, sir.

Hello Charles.

Can you here me okay.

Here we got you now.

All right, great. Dennis, if you could talk a little bit more about the top line and the decline year-over-year that you saw in the quarter. How much do you think of that is attributable to some of the (inaudible) in the financial industry?

Well, I think we don't really do a lot a with the back room stuff that they might slow down on. We're actually out where the transactions occur. So generally speaking, people are still going to conduct the transactions even if they have smaller amount. Although the financial institution that we served particularly banks, as you know are having a hard time, so they are getting a lot meaner. Let's put it that way. And they are willing to take more risks in terms of driving cost reductions. So we are having to do a lot of work to be more responsive on pricing and at the same time reducing our cost to try to offset that, but the net effect of that is going to be a little bit of a decline there.

And the things that you can do for your financial customers to help them maybe offset some of those costs by providing them with different digital solutions etcetera, are you kind of talking about that, are you developing those types of products and services?

Yeah. Absolutely, for example as mailing cost go up, postage cost, it all startling how much money the financial institutions have to spend to provide notices to their customers and clients. And we developed an innovative approach to that and we have lot of our banking customers taking that approach up now and that's a good product, saves the money and it's good for us, and we're actually expanding our capacity in that area. So we tried to bring those solutions. Other things can happen, for example, in the area of misappropriation of prescription drugs to illicit uses. We have implemented our secure prescription program across the sort of gold standard on that as our implementation with the State of New York and we are now looking to expand that to other place. We have a fairly focused effort on that. And in fact there are some legislation that says somewhere in the course of '08, keep moving the target, but somewhere in the course of '08 all the states for Medicare and Medicaid prescriptions have to be on tamper-proof prescription pads. So we are competing heavily in that area. So in all cases, we tried to do that. Manufacturing is another area. Of course if the housing slows down and the hard goods go into housing upgrades and renovations and so forth, might slowdown some and we offer a solution to help them to change over faster without loss production to reduce their inventory of documentation that goes in the box and the required regulatory compliances safety labels and so forth. So this is what we try to do, help our customers improve their operation in response to their environment. So those things in the financial services or in the housing market aren't going to be very helpful, but we think we offer solutions that will help our customers do better in those environments.

Okay, great. Thanks. And if you could, maybe spend a few minutes to address the filing by the third?

Yeah. Over the last couple of years, especially as new people come in to their trust department, they like to get refreshed on what's going on with the company and they look at the terms of the trust and they say what we got to talk to the company about this. So this happens periodically and it has happened over the past few years. More recently, the trustee has felt some cover on the principal holdings of the trust to be standard registered shares. They felt that was a pretty good cover for them. There has been some recent precedent in the law that says even if that is the desire of the beneficiaries of the trust, for this year responsibility of the trustee is to try to take care of the trust. So in order to make sure they've got all their (inaudible) to put themselves in the best possible position to say they are executing on their responsibility, they changed the filing last year from the 13G to 13D. Now 13D says they want to take a little more active role in the affairs of the company, and generally speaking they are supposed to describe in that filing what their intention is. What they put in their filing was everything including the kitchen sink that they might do. So it was just simply everything that a 13D filing could possibly mean was what they put in. So far we've had no communication from Fifth Third about anything. They just simply made the filing and we haven't even had any conversation with them about it. So we think it's just a way for them to make sure they are in the best possible position to exercise their duty to the trustees and providing themselves the best possible cover from a legal point of view.

Great. Thanks for the explanation, Dennis. Craig, can you just go through a couple housekeeping items on the financials. What were cash taxes in the quarter that were paid?

Probably zero.

Okay.

It might be some smaller amount but we have an NOL and I don't believe the cash taxes were much of anything.

What are your expectations for '08 for cash taxes?

Pretty much zero.

Okay.

We've a net operating loss of about $23 million or so and we expect to use that as we go through the year. We won't use it all, but we'll use good amount.

Very good. And then on the remaining debt is that still roughly where it's been?

I am sorry, I couldn't catch that.

The interest rate on the existing debt (inaudible)?

I'll have to call with that to give you a precise number, I know it moved around a little bit recently. There has been on change in the revolver, but I just don't know what it right now, I should know that, Bob will call you with that.

Not a problem there. And then just generally give thoughts on use of cash flow for the year besides the dividend?

You are talking about 2008 or 2007?

2008, I am sorry.

Well, the major items I think that we would look forward would be CapEx we talked about that was about, we said about $23 million. If the Board continue to approve the dividend, it would be about $27 million round numbers. Pension contributions would be $20 million. Interest payments probably $3.5 million to $4 million range. And those are the major payments. We also pay some retirement benefits that are nonqualified plan that typically runs about $6 million.

Got it. And then if you look at all of the restructuring charges that were taken in the year, how much of that was cash related?

The charges for the year, how much on the 2007?

Correct.

Restructuring spending in 2007 was just under $8 million, it was $7.6 million in the year and I think our P&L showed an accrual of $8 million. So there is probably another $400,000 or so left to be spent on our restructuring in '08.

Great. And then, Craig, when you look at the pension amortization going down to about $22 million to $21 million in 2008, do you expect that to continue to decelerate over the coming years beyond that?

Over the last three quarter we got from actuaries indicated that was the case and it would continue to drop off at a good rate going forward. And as I indicated also that they do their final mop up on this in a coming weeks, and so we'll see where that ends up and we will let people know in the next call where that lands. And it obviously depends on how things going in the market and so forth. But to the extent we have any kind of an actuarial miss in 2007 that will go in to the calculation, but it dribbled out over many years and so it won't have a significant effect, I don't think.

Got it.

I think that number is reasonably close.

Got it. Thank you very much.

You are welcome.

At this time gentlemen, we have no further questions in queue.

Okay. Well, thank you very much for joining us on the call. We appreciate the questions. I think you can see that we are making progress and moving forward. We have given the best guidance we can at this time. Certainly, we want to exceed in those things. So, we would like to do better and we will strive to do that. But, it is the guidance that we have. So we will talk to you next time. Thank you very much.