On October 1, 2010, the Company acquired all of the shares of Monroe Etiquette in France for Euro 8 million, less net debt assumed. The selling shareholder received 89% of the purchase price in the form of cash at closing. The remaining 11% of the purchase price will be paid in cash, but is deferred for five years after closing. The third quarter fiscal results include the results of Monroe Etiquette.

Net revenues increased 26% to $83.4 million from $66.0 million in the prior year quarter. The CentroStampa and Monroe Etiquette acquisitions contributed $15.5 million or 23% of the revenue increase. The remaining increase was due to a 3% favorable foreign exchange impact. Excluding the impact of acquisitions and foreign exchange, the impact of organic sales volume and pricing was comparable to the prior year quarter.

Gross profit increased $4.8 million or 42% compared to the prior year quarter. The acquisitions of CentroStampa and Monroe Etiquette contributed 38% to the gross profit increase. The remaining increase was due primarily to the impact of foreign exchange and improved operating efficiencies. Gross margins increased to 19% from 17% of sales revenues compared to the prior year quarter.

Selling, general and administrative (SG&A) expenses, adjusted to exclude the impact of acquisitions and special charges, decreased by 1% compared to the prior year quarter due primarily to reductions in headcount and other cost decreases partially offset by the impact of foreign exchange. SG&A expenses, as reported, increased 29% and adjusted for special charges, increased by 25% compared to the prior year quarter. Special charges included in SG&A expenses for the third quarter of fiscal 2011 consisted of $297,000 for acquisition and China start-up related expenses. The increase in SG&A related to the two acquisitions was $1.6 million and represents 26% of the adjusted SG&A increase.

During the third quarter of fiscal 2010, the Company relocated its corporate headquarters from Sharonville, Ohio to its Batavia, Ohio facility in order to consolidate certain employees into existing owned office space. In connection with the relocation, the Company recorded a pre-tax charge of $1.2 million for remaining lease obligations and other costs related to the Sharonville facility. During the third quarter of fiscal 2011, the Company entered into a contract to sublease the remaining unoccupied space and recorded a pre-tax reduction to the initial charge of $258,000 to incorporate the impact of the additional sublease income.

Operating income increased $4.5 million compared to the prior year quarter. Adjusted for special charges, operating income increased 65% to $8.3 million from $5.1 million. The CentroStampa and Monroe Etiquette acquisitions contributed 54% to the adjusted operating income increase. The remaining increase in operating income is due primarily to improved operating efficiencies, other cost decreases and the impact of foreign exchange.

Interest expense increased to $2 million compared to $1.2 million in the prior year due primarily to the increase in debt borrowings to finance the acquisitions of CentroStampa and Monroe Etiquette. Also contributing to the increase was the impact of higher interest rates and higher interest expense related to the present value adjustments of various lease and other liabilities.

The Company’s effective tax rate was 25% in the third quarter of fiscal 2011 compared to 21% in the same period of the prior year due primarily to an increase in income in higher tax jurisdictions, partially offset by the release of reserves for uncertain tax positions whose statute of limitations expired during the third quarter of fiscal 2011. The Company expects its annual effective tax rate to be approximately 30% in fiscal year 2011.

Diluted EPS increased to $0.36 cents per diluted share from $0.18 cents. Excluding the impacts of the special charges noted below, adjusted diluted EPS increased 42% to $0.37 cents per diluted share from $0.26 cents. Adjusted net income increased 52% to $4.8 million compared to $3.2 million in the prior year.

Net Income and Diluted EPS, as reported.

Acquisition and China Start-up Expenses, Net of Tax

Net Facility Closure Expense, Net of Tax

Adjusted Net Income and Diluted EPS (Non-GAAP)

On July 1, 2010, the Company completed the acquisition of European wine, spirit & olive oil label specialist, Guidotti CentroStampa S.p.A., based in Tuscany, Italy, for Euro 50.5 million with approximately 80% of the proceeds in the form of cash and 20% in the form of 934,567 shares of Multi-Color stock. The second and third quarter fiscal 2011 results include the results of CentroStampa.

Net revenues increased 20% to $248.1 million from $207.6 million. The CentroStampa and Monroe Etiquette acquisitions contributed 13% of the revenue increase. The remaining increase was due to a 5% increase in sales volume and mix and a 3% favorable foreign exchange impact, partially offset by a 1% unfavorable pricing impact.

Gross profit increased $12.4 million or 33% compared to the prior year. Adjusted for special charges, gross profit increased $12.9 million or 35%. The acquisitions of CentroStampa and Monroe Etiquette contributed 18% to the adjusted gross profit increase. The remaining increase was due to higher sales volumes, foreign exchange and improved operating efficiencies. Gross margins increased to 20% from 18% of sales revenues compared to the prior year.

Adjusted for special charges, selling, general and administrative (SG&A) expenses, as a percent of sales, decreased from 9.0% to 8.7% compared to the prior year. SG&A expenses increased by 29% compared to the prior year. Adjusted for special charges,

SG&A expenses increased by 15% compared to the prior year. The special charges included in SG&A expenses for the nine months ending December 31, 2010 were primarily comprised of $1.7 million in severance and accelerated stock compensation charges and $1.3 million in acquisition and China start-up related expenses. The two acquisitions contributed a 14% increase to adjusted SG&A.

Operating income increased by $8.7 million or 53% compared to the prior year. Adjusted for special charges, operating income increased 55% to $28.5 million from $18.4 million in the prior year. The CentroStampa and Monroe Etiquette acquisitions contributed 22% to the adjusted operating income increase. The remaining increase in operating income is due primarily to the increase in sales volume, foreign exchange, improved operating efficiencies and other cost decreases.

Interest expense increased to $5.3 million compared to $3.6 million in the prior year due primarily to the increase in debt borrowings to finance the acquisitions of CentroStampa and Monroe Etiquette. Also contributing to the increase was the impact of higher interest rates and higher interest expense related to the present value adjustments of various lease and other liabilities.

The Company’s effective tax rate was 30% for the nine months ended December 31, 2010 compared to 28% in the same period of the prior year due primarily to an increase in income in higher tax jurisdictions, partially offset by the release of reserves for uncertain tax positions whose statute of limitations expired during the third quarter of fiscal 2011. The Company expects its annual effective tax rate to be approximately 30% in fiscal year 2011.

Diluted EPS increased 41% to $1.10 cents per diluted share from $0.78 cents. Excluding the impacts of the special charges noted below, adjusted diluted EPS increased 43% to $1.27 cents per diluted share from $0.89 cents. Adjusted net income increased 50% to $16.4 million compared to $11.0 million in the prior year.

Net Income and Diluted EPS, as reported

Severance and Accelerated Stock Compensation Expense, Net of Tax

Acquisition and China Start-Up Expenses, Net of Tax

Inventory Purchase Accounting Charge, Net of Tax

Net Facility Closure Expense, Net of Tax

Adjusted Net Income and Diluted EPS (Non-GAAP)

Revenues

Cost of Goods Sold

Gross Profit

Gross Margin

Selling, General & Administrative

Facility Closure Expense/(Income), net

Operating Income

Other (Income) Expense

Interest Expense

Income before Taxes

Provision for Taxes

Net Income

Basic Earnings Per Share

Diluted Earnings Per Share

Basic Shares Outstanding

Diluted Shares Outstanding

Current Assets

Total Assets

Current Liabilities

Total Liabilities

Stockholders’ Equity

Total Debt

Gross Profit, as reported

Inventory Purchase Accounting Charge

Adjusted Gross Profit (Non-GAAP)

Adjusted Gross Profit (Non-GAAP) as a % of Revenues

Operating Income, as reported

Severance and Accelerated Stock Compensation Expense

Acquisition and China Start-Up Expense

Inventory Purchase Accounting Charge

Facility Closure Expense, net

Adjusted Operating Income (Non-GAAP)

Adjusted Operating Income (Non-GAAP) as a % of Revenues

SG&A Expenses, as reported

Severance and Accelerated Stock Compensation Expense

Acquisition and China Start-Up Expense

Adjusted SG&A Expenses (Non-GAAP)

Adjusted SG&A Expenses (Non-GAAP) as a % of Revenues