SHARONVILLE, Ohio, Nov. 5 /PRNewswire-FirstCall/ -- Multi-Color Corporation ("Multi-Color") today announced the signing of a Letter of Intent (a.k.a. Heads of Agreement) to acquire Collotype International Holdings Pty. Ltd. ("Collotype").

Headquartered in Adelaide, South Australia, Australia, Collotype is the world's leading pressure sensitive wine and spirits label manufacturer with market leadership in Australia, the United States and South Africa and a growing provider of labels in the fast-moving consumer goods marketplace.

Multi-Color, headquartered in the Cincinnati, Ohio area, is a leading supplier of a broad range of innovative label solutions to the North American consumer products marketplace, including in-mold labels (IMLs), heat transfer labels (HTLs), cut-and-stack and pressure sensitive labels and shrink sleeves.

Multi-Color President and CEO Frank Gerace said, "This transaction will be a large step towards our strategy of building a global platform in the consumer labels business, capable of serving premium brands by leveraging complimentary technologies, innovation, talent and customer relationships. I am especially pleased to welcome Nigel Vinecombe and his management team to Multi-Color upon closing of the transaction and look forward to growing our business together."

Commenting on the deal, Collotype Group Managing Director Nigel Vinecombe added, "Collotype and Multi-Color are natural partners -- both businesses are recognized for leadership in quality, innovation, technology and services to our customers. The Collotype management team is excited about contributing to the growth of the combined group."

Upon completion of the transaction, Nigel Vinecombe will become President of Multi-Color's International Business Unit. Don Kneir will continue as President of Multi-Color's North American Business Unit.

The acquisition, to be paid for with a combination of cash and stock, is expected to be accretive to earnings immediately upon completion. Financial terms will be disclosed upon the completion of the transaction, expected within 60 days. The transaction is subject to final negotiation and execution of a definitive share purchase agreement and satisfaction of customary closing conditions. Multi-Color expects to draw down its revolving credit facility to finance the transaction.

About Multi-Color Corporation (http://www.multicolorcorp.com/)

Sharonville, Ohio based Multi-Color Corporation is a premier global resource of innovative decorating solutions to consumer product and food and beverage companies, national retailers and container manufacturers worldwide. Multi-Color is one of the world's largest producers of in-mold labels (IMLs) and heat transfer labels (HTLs), and a major manufacturer of high-quality cut- and-stack and pressure sensitive labels and shrink sleeves. Multi-Color has eight manufacturing locations in the United States. Its products are shipped to more than 650 customers in the United States, Canada, Mexico, and Central and South America.

Forbes magazine has chosen Multi-Color as one of the Forbes 200 Best Small Companies for 2007. Multi-Color is ranked 86th in this prestigious group.

For additional information on Multi-Color, please visit http://www.multicolorcorp.com/.

For additional information on Collotype, please visit http://www.collotype.com/.

Safe Harbor Statement

Multi-Color believes certain statements contained in this report that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied. Any forward-looking statement speaks only as of the date made. Multi-Color undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made.

Statements concerning expected financial performance, on-going business strategies, and possible future actions which Multi-Color intends to pursue in order to achieve strategic objectives constitute forward-looking information. Implementation of these strategies and the achievement of such financial performance are each subject to numerous conditions, uncertainties and risk factors. Factors which could cause actual performance by Multi-Color to differ materially from these forward-looking statements include, without limitation, factors discussed in conjunction with a forward-looking statement; changes in general economic and business conditions; the ability to consummate and successfully integrate acquisitions; the success and financial condition of Multi-Color's significant customers; competition; acceptance of new product offerings; changes in business strategy or plans; quality of management; Multi-Color's ability to maintain an effective system of internal control; availability, terms and development of capital; cost and price changes; availability of raw materials; business abilities and judgment of personnel; changes in, or the failure to comply with, government regulations, legal proceedings and developments; increases in general interest rate levels affecting Multi-Color's interest costs; and terrorism and political unrest. Multi-Color undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Dawn H. Bertsche, Chief Financial Officer of Multi-Color
Corporation, +1-513-345-1108

Web site: http://www.multicolorcorp.com/
http://www.collotype.com/