First Graphics is pleased to announce that it has signed an agreement for the sale of its Pietermaritzburg manufacturing facility to Creo Inc (NASDAQ: CREO; TSX: CRE). This agreement follows the announcement by Creo that it intends to manufacture its own proprietary thermal computer-to-plate (CTP) plates.

First Graphics has also concluded an agreement with Creo where Creo will supply First Graphics with both conventional and CTP plates in addition to the existing agreement for the distribution of Creo CTP devices and workflow software in South Africa.

Campbell M. Smillie, Chairman and CEO of First Graphics explains the background behind this sale agreement as follows, "From the time that the directors of First Graphics decided to invest in a new coil line facility in their Pietermaritzburg operation in 1999, we recognised that sooner or later we would need to develop a relationship with one of the world's major litho suppliers in order to realise its full potential. We therefore entered into an agreement with Creo to use its thermal CTP emulsion technology to begin producing a world-class plate for both the domestic and export markets. This relationship has reached a point at which it is now in the interests of all parties that Creo acquires the manufacturing operation to significantly expand its capacity in line with strategic objectives."

Smillie continued, "This agreement therefore is great news all round. It is great news for our Pietermaritzburg employees who will now be part of the most dynamic, growth oriented company in the lithographic plate business.

It is great news for our customers in the local South African and international printing industry as it brings a new and fully committed player into the CTP consumable arena, and it is great news for the remaining 150 employees of First Graphics as it provides the resources necessary to drive the company to its next level of growth within the South African printing industry."

For more information contact Melody Pereira, First Graphics, 011 799 3800.

About First Graphics

First Graphics, a major imaging solutions company, is a leading supplier of equipment, technology and consumables to the printing industry, with a history that can be traced back five decades. First Graphics has wide experience in the printing and publishing market and many years of providing imaging solutions to the communications industry. Its national presence ensures top-class service in all the major commercial areas. The company has branches in Johannesburg, Cape Town, Durban and Port Elizabeth, as well as an export branch that deals with countries throughout Africa.