Aki 8-K Regulation FD Disclosure

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Exhibit 99.1

SUPPLEMENTAL REGULATION FD DISCLOSURE

DEFINITIONS

        In this Form 8-K, all references to (1) "JIHC" refer to Jostens IH Corp., a wholly owned subsidiary of Jostens Holding, and its subsidiaries, the corporation that operates Jostens and will operate Von Hoffmann and Arcade after giving effect to the Transactions, (2) "Jostens Holding" refer to Jostens Holding Corp., after giving effect to the Transactions, unless the context otherwise requires or it is otherwise indicated, (3) "Jostens" refer to Jostens, Inc. and its subsidiaries, (4) "Von Hoffmann" refer to Von Hoffmann Holdings Inc. and its subsidiaries, after giving effect to the Transactions, unless the context otherwise requires or it is otherwise indicated, (5) "Arcade" refer to AHC I Acquisition Corp. and its subsidiaries, after giving effect to the Transactions, unless the context otherwise requires or it is otherwise indicated, (6) "we", "us", "our companies" and "our businesses" refer to Jostens, Von Hoffmann and Arcade and (7) "Transactions" refer to the "Contribution", "Mergers" and related financing transactions described under "Transactions".

MARKET DATA

        Data relating to market and competitive position contained in this Form 8-K have been prepared based on internal estimates and research as well as from industry and general publications and research, surveys and studies conducted by third parties. Industry publications, studies and surveys generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. While management believes that each of these publications, studies and surveys is reliable, data from third party sources have not been independently verified. While management believes our internal company research is reliable, such research has not been verified by any independent source.

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

        This Form 8-K contains certain forward-looking statements, including, without limitation, statements concerning expected cost savings, operations, economic performance and financial condition, including, in particular, statements relating to our future capital structure and financial condition. The words "may", "might", "will", "should", "estimate", "project", "plan", "anticipate", "expect", "intend", "outlook", "believe" and other similar expressions are intended to identify forward-looking statements and information. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by Management that, although believed to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. The following list represents some, but not necessarily all, of the factors that could cause actual results to differ from historical results or those anticipated or predicted by these forward-looking statements: (i) our substantial indebtedness following the consummation of the Transactions; (ii) our inability to implement our business strategy and achieve anticipated cost savings in a timely and effective manner; (iii) competition from other companies; (iv) the seasonality of our businesses; (v) loss of significant customers or customer relationships; (vi) fluctuations of raw material prices and our reliance on a limited number suppliers; (vii) Jostens' reliance on independent sales representatives; (viii) our reliance on numerous complex information systems; (ix) Von Hoffmann's dependency on the sale of school textbooks; (x) the textbook adoption cycle and levels of government funding for education spending; (xi) the reliance of our businesses on limited production facilities; (xii) the amount of capital expenditures required at our businesses; (xiii) the failure of Arcade's sampling systems to comply with U.S. postal regulations; (xiv) labor disturbances; (xv) environmental regulations; (xvi) foreign currency fluctuations and foreign exchange rates; (xvii) the outcome of litigation; and (xviii) control by our controlling shareholders. We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this Form 8-K may not in fact occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise.

SELECTED BUSINESS INFORMATION

        Arcade is a leading global marketer and manufacturer of multi-sensory and interactive advertising sampling systems that utilize various technologies to engage the senses of touch, sight and smell. Management believes that Arcade has approximately a 50% market share of the scent strip segment of the fragrance sampling market and that, with this market share, Arcade holds the number one position in its market.

        By combining the businesses of Jostens, Von Hoffmann and Arcade in connection with the Transactions, management believes that significant, near-term cost saving opportunities exist. These cost savings will primarily be achieved through procurement initiatives aimed at reducing the costs of materials and services used in our operations and reducing corporate and administrative expenses. Procurement initiatives will focus on our raw materials, but will also encompass other materials and services such as logistics and energy costs. We expect to reduce our corporate and administrative expenses through selected rationalization of certain overhead costs across our three businesses. Through these initiatives, we expect to achieve annual cost savings of between $22 million and $30 million, with approximately $20 million achievable in 2005.

2

THE TRANSACTIONS

        We will become indirectly owned by affiliates of DLJ Merchant Banking Partners III, L.P., or DLJMBP III, affiliates of Kohlberg Kravis Roberts & Co. L.P., or KKR (together with DLJMBP III, the "Sponsors"), other co-investors and certain members of management through a series of transactions. On July 21, 2004, Jostens Holding entered into a contribution agreement with Fusion Acquisition LLC, or Fusion, an affiliate of KKR, pursuant to which Fusion will contribute to Jostens Holding (the "Contribution") all of the stock of Von Hoffmann and Arcade that Fusion will acquire immediately prior to such Contribution pursuant to two separate mergers, or the Mergers. Jostens Holding will then issue shares of its common stock to Fusion. Subsequent to the Contribution, Jostens Holding will cause all of the equity interests of Von Hoffmann and Arcade held by it to be contributed to us, which will result in Von Hoffmann and Arcade becoming our wholly-owned subsidiaries.

        Von Hoffmann and Arcade are each currently controlled by affiliates of DLJ Merchant Banking Partners II, L.P., or DLJMBP II. DLJMBP III currently owns approximately 82.5% of Jostens Holding's outstanding equity, with the remainder held by other co-investors and certain members of management. Upon consummation of the Transactions, KKR will be issued equity interests representing up to 50% of the voting interest and 45% of the economic interest of Jostens Holding, and DLJMBP III will be issued equity interests representing up to 41% of the voting interest and 45% of the economic interest of Jostens Holding, with the remainder held by other co-investors and certain members of management.

        The aggregate transaction value of the Contribution and Mergers, including the assumption of indebtedness, premiums and fees and expenses, is approximately $2.3 billion, including approximately $254.5 million of new equity provided by KKR, approximately $254.5 million of equity rolled over by DLJMBP III, approximately $54.4 million rolled over by other co-investors and certain members of management and approximately $5 million of new equity provided by certain members of management (subject to certain closing adjustments). Approximately $163.1 million of 10¹/4% Senior Discount Notes due 2013 of Jostens Holding will remain outstanding, as of October 4, 2004, and will remain outstanding following the closing.

        We have commenced tender offers to repurchase all of the outstanding 12³/4% Senior Subordinated Notes due 2010 of Jostens, 10¹/4% Senior Notes due 2009 and 10³/8% Senior Subordinated Notes due 2007 of Von Hoffmann Corporation, 13¹/2% Subordinated Exchange Debentures due 2009 of Von Hoffmann Holdings Inc. and 10¹/2% Senior Notes Due 2008 of AKI, Inc. and are soliciting consents from the respective holders of those notes to amend the indentures governing each respective series of notes to eliminate substantially all of the restrictive covenants and effect certain other amendments to those indentures (the requisite consents for which have been received as of the date hereof). The contribution agreement entered into in connection with the Transactions includes a condition to closing that all notes not tendered in connection with the tender offers be redeemed or repurchased, which condition must be satisfied or waived by Fusion and Jostens Holding.

        In connection with the Transactions (assuming an expected closing of October 4, 2004):

•

we intend to enter into the new senior secured credit facilities, consisting of a $150 million Term Loan A Facility and an $870 million Term Loan B Facility, all of which will be drawn at closing, and a $250 million revolving credit facility, approximately $70 million of which will be drawn at closing;



•

we intend to incur $500 million of new senior subordinated indebtedness;



•

Von Hoffmann equity holders will be paid approximately $183.4 million;



•

we intend to pay $76.9 million to holders of Arcade's Amended and Restated Notes and holders of Arcade's Mandatorily Redeemable Preferred Stock will be paid $64.9 million;

3

•

we intend to repay approximately $86 million of indebtedness under our existing revolving credit facility and to draw approximately $70 million under our new revolving credit facility primarily to cover seasonal working capital requirements;



•

we intend to use $1,273.0 million in order to redeem Jostens' 14% Senior Redeemable Payment-in-Kind Preferred Stock and to refinance other outstanding indebtedness of Jostens, Von Hoffmann and Arcade (including accrued interest, tender premiums and prepayment penalties, assuming 100% of the preferred stock is redeemed and 100% of the notes are tendered);



•

we intend to pay approximately $85.8 million of transaction fees and expenses; and



•

we intend to issue new options to purchase shares of common stock of Jostens Holding to certain members of management.

4

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL DATA

        The following unaudited pro forma condensed consolidated financial statements are derived from the historical consolidated financial statements of JIHC, Von Hoffmann and Arcade. The historical consolidated financial data of Combined JIHC set forth below combine the historical consolidated financial data of JIHC, Von Hoffmann and Arcade after July 29, 2003 as a result of common ownership of JIHC, Von Hoffmann and Arcade by affiliates of DLJMBP III effective as of such date. The historical consolidated financial statements of JIHC prior to July 29, 2003 are those of Jostens as the predecessor of JIHC. The selected consolidated financial data of JIHC prior to July 29, 2003 have been prepared using JIHC's historical basis of accounting. The unaudited pro forma condensed consolidated balance sheet gives effect to (1) the Transactions and (2) the reclassification of Lehigh Direct from an asset held for sale to an asset held for use, as if they had all occurred on July 3, 2004. The unaudited pro forma condensed consolidated statements of income for the 2003 fiscal year and the six month periods ended June 28, 2003 and July 3, 2004 give effect to (1) the Transactions, (2) the 2003 Jostens Merger, (3) the Lehigh Press Acquisition and (4) the reclassification of Lehigh Direct from a discontinued operation to a continuing operation as if they had all occurred on December 29, 2002. The unaudited pro forma condensed consolidated statement of income for the 2002 fiscal year ended December 28, 2002 gives effect to (1) the Transactions, (2) the 2003 Jostens Merger and (3) the Lehigh Press Acquisition as if they had all occurred on December 30, 2001. Assumptions underlying the pro forma adjustments are described in the accompanying notes, which should be read in conjunction with these unaudited pro forma condensed consolidated financial statements. The Von Hoffmann and Arcade pro forma financial data have been presented based on their respective four quarters ended December 31 and two quarters ended June 30.

        The 2003 Jostens Merger and the Lehigh Press Acquisition were accounted for utilizing purchase accounting, which resulted in a new valuation for the assets and liabilities of Jostens and Lehigh Press to their fair values. The following unaudited pro forma condensed consolidated financial statements give effect to purchase accounting for these transactions for all periods presented. The combination of JIHC, Von Hoffmann and Arcade has been accounted for as a combination of entities under common control, and as such the historical basis of accounting has not been adjusted.

        The unaudited pro forma adjustments are based upon available information and certain assumptions that we believe are reasonable under the circumstances. The unaudited pro forma financial information is presented for informational purposes only. The unaudited pro forma financial information does not purport to represent what our results of operations or financial condition would actually have been had all of the events described above, including the Transactions, occurred on the dates indicated, nor does it purport to project the results of operations or financial condition of JIHC for any future period or as of any future date.

5

JOSTENS IH CORP.

Unaudited Pro Forma Condensed Consolidated Balance Sheet

		As of July 3, 2004
		Combined JIHC Historical		Adjustments			Pro Forma
		(In thousands)
Assets
Cash and cash equivalents		$	28,527	$	(18,144	)(a)	$	10,421
					38	(b)
Accounts receivable, net			169,169		15,777	(b)		184,946
Inventories, net			96,890		2,893	(b)		99,783
Deferred income taxes			14,573		189	(b)		26,409
					11,647	(c)
Salesperson overdrafts, net			21,414		—			21,414
Prepaid and other current assets			10,585		719	(b)		11,304
Assets held for sale			62,280		(62,280	)(b)		—
	Total current assets		403,438		(49,161	)		354,277
Property and equipment, net			223,700		26,560	(b)		250,260
Goodwill			1,111,041		9,277	(b)		1,120,318
Intangibles, net			627,750		16,000	(b)		643,750
Deferred financing costs, net			33,939		(33,939	)(d)		—
New deferred financing costs, net			—		53,878	(e)		53,878
Other			11,080		—			11,080
		$	2,410,948	$	22,615		$	2,433,563
Liabilities and Shareholders' Equity
Short-term borrowings		$	9,675	$	(9,675	)(a)	$	—
Accounts payable			43,382		6,867	(b)		50,249
Accrued employee compensation and related taxes			40,620		504	(b)		41,124
Commissions payable			45,653		—			45,653
Customer deposits			57,866		—			57,866
Income taxes payable			34,200		353	(b)		—
					(46,200	)(c)
					11,647	(c)
Interest payable			22,564		(22,564	)(a)		—
Current portion old debt			5,150		(5,150	)(a)		—
Current portion new debt					9,975	(a)		9,975
Deferred income taxes			—		—			—
Other accrued liabilities			20,162		489	(b)		20,651
Current portion of discontinued operations			2,770		—			2,770
	Total current liabilities		282,042		(53,754	)		228,288
Old debt			1,260,515		(1,237,652	)(a)		—
					(22,863	)(f)
New debt			—		1,510,025	(a)		1,510,025
Redeemable preferred stock			255,387		(173,903	)(a)		—
					(16,328	)(f)
					(65,156	)(g)
Deferred income taxes			250,844		960	(b)		260,156
					8,352	(c)
Pension liabilities, net			—		—			—
Other noncurrent liabilities			34,144		—			34,144
	Total liabilities		2,082,932		(50,319	)		2,032,613
	Total shareholders' equity		328,016		72,934	(h)		400,950
		$	2,410,948	$	22,615		$	2,433,563

See the accompanying notes to the unaudited pro forma condensed consolidated balance sheet.

6

JOSTENS IH CORP.

Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet

(In thousands)

(a)

Set forth below are the estimated sources and uses of funds pertaining to the Transactions as described in "Use of Proceeds".

(1)	Sources of funds:
	Proceeds from revolving credit facility	$	—
	Proceeds from Term loan A facility (current portion of $5,625)		150,000
	Proceeds from Term loan B facility (current portion of $4,350)		870,000
	Proceeds from new senior subordinated indebtedness		500,000
	Von Hoffmann/Arcade available cash		18,144
	Proceeds from KKR equity contribution		254,500
	Proceeds from management investment		5,000
	Total sources of funds	$	1,797,644
(2)	Uses of funds:
	Repayment of Jostens revolving credit facility	$	9,675
	Repayment of long term debt:
	Jostens term loan		417,705
	Jostens 123/4% Senior Subordinated Notes		203,985
	Von Hoffmann credit facility		23,500
	Von Hoffmann 101/4% Senior Notes		275,000
	Von Hoffmann 103/8% Senior Subordinated Notes		100,000
	Von Hoffmann 131/2% Subordinated Exchange Debentures		44,181
	Arcade credit facility		1,500
	Arcade 101/2% Senior Notes		103,510
	Repurchase of notes held by Arcade shareholders             including $483 of accrued interest		73,904
		$	1,243,285	*
	Repayment or Repurchase of Preferred Stock:
	Repurchase of Jostens Preferred Stock		106,107
	Payment to Arcade Preferred Shareholders		67,796
			173,903
	Payment of accrued interest, excluding $483 related to the Arcades shareholder notes		22,081
	Payment to Von Hoffmann shareholders		183,800
	Payment of transaction fees, expenses and other transaction costs		85,800
	Payment of prepayment penalties/premiums		79,100
	Total uses of funds	$	1,797,644

*	Total repayment of long term debt	1,243,285
	less current liabilities	(5,150	)
	less accrued interest	(483	)
		1,237,652

7

(b)

Reclassification of balance sheet for Lehigh Direct that was reported as an asset held for sale in the historical financial results. In connection with the Transactions, Lehigh Direct will be treated as a business held for use and not as a business held for sale. The reclassification is as follows:

Cash and cash equivalents		$	38
Accounts receivable, net			15,777
Inventories, net			2,893
Deferred income taxes			189
Prepaid and other current assets			719
Assets held for sale			(62,280	)
Property and equipment, net			26,560
Goodwill			9,277
Intangibles			16,000
	Total assets	$	9,173
Accounts payable		$	6,867
Accrued employee compensation and related taxes			504
Income taxes payable			353
Other accrued liabilities			489
Deferred income taxes			960
	Total liabilities	$	9,173

(c)

Reflects the incremental tax effect of the Transactions as follows:

Currently deductible transaction costs	$	7,322
Prepayment penalties (excluding $15,700 of non-deductible preferred stock penalties)		63,400
Unamortized premium related to Von Hoffmann 101/4% Senior Notes		(2,485	)
Unamortized debt issuance costs related to historical debt		33,939
Unamortized original issue discount related to existing Jostens 123/4% Senior Subordinated Notes (tax basis)		13,323
		115,499
Tax rate		40	%
Current tax provision	$	46,200	*
Unamortized premium related to Jostens 123/4% Senior Subordinated Notes (book basis)	$	(20,879	)
Tax rate		40	%
Deferred tax provision	$	(8,352	)
Total tax provision	$	37,848

*

The $46,200 debit to income tax payable resulted in an increase to the deferred tax asset of $11,647.

(d)

Reflects the elimination of unamortized debt issuance costs of $33,939 related to the existing notes and credit facilities that are being repaid in connection with the Transactions.

(e)

Reflects capitalization of estimated debt issuance costs of $53,878 that we will incur in connection with the new senior credit facilities we are entering into and the notes offered hereby.

8

(f)

Reflects gain from unamortized premiums of $20,879 related to the Jostens senior notes, unamortized premiums of $2,485 related to the Von Hoffmann senior notes, unamortized premiums of $16,328 related to the Jostens preferred stock and a loss from $501 discount on the Arcade notes.

(g)

Reflects redemption of Arcade preferred stock with a book value of $132,952 for cash payment to its shareholders of $67,796. The excess $65,156 book value of the preferred stock over the cash payment to the shareholders has been reflected as an adjustment to net income.

(h)

Reflects adjustments to equity consisting of:

Management equity contribution	$	5,000
KKR equity contribution		254,500
Cash to Von Hoffmann shareholders		(183,800	)
Income statement adjustments(1)		(2,766	)
	$	72,934

(1)	Reflects income statement impact as follows:
	Transaction fees and expenses, net of amount capitalized	$	(31,922	)
	Prepayment penalties/premiums*		(79,100	)
	Write-off of historical unamortized debt issuance costs		(33,939	)
	Write-off of historical premiums and discounts on debt and preferred stock		39,191
	Tax impact as described in note (c) above.		37,848
	Arcade net income adjustment as described in note (g) above		65,156
		$	(2,766	)

*

Assumes that 100% of holders tender their notes in the currently outstanding tender offers and that all outstanding preferred stock is redeemed.

9

JOSTENS IH CORP.

Unaudited Pro Forma Condensed Consolidated Statement of Income

		Fiscal Year 2002
		JIHC Historical		Von Hoffmann Historical			Arcade Historical*			Pro Forma Adjustments			Pro Forma
		(In thousands)
Net sales		$	755,984	$	379,437		$	133,202		$	118,741	(a)	$	1,387,364
Cost of products sold			315,961		321,331			80,439			133,031	(b)		850,762
	Gross profit		440,023		58,106			52,763			(14,290	)		536,602
Selling and administrative expenses			306,449		26,177			23,688			65,402	(c)		421,716
Special charges (credits)			—		2,453			(992	)		—			1,461
	Operating income (loss)		133,574		29,476			30,067			(79,692	)		113,425
Interest expense, net			67,326		38,818			23,869			(24,776	)(d)		105,237
Loss (gain) on redemption of debt			1,765		(280	)		(4,085	)		2,600	(e)		—
Other expense (income)			—		(2,773	)		250			73	(f)		(2,450	)
	Income (loss) from continuing operations before income taxes		64,483		(6,289	)		10,033			(57,589	)		10,638
Provision (benefit) for income taxes			36,214		(993	)		7,925			(35,912	)(g)		7,234
Income (loss) from continuing operations		$	28,269	$	(5,296	)	$	2,108		$	(21,677	)	$	3,404

*12 month period ended December 31, 2002

See the accompanying notes to the unaudited pro forma condensed consolidated statement of income.

10

JOSTENS IH CORP.

Unaudited Pro Forma Condensed Consolidated Statement of Income
Fiscal Year 2003

		Combined JIHC Five Months Ended January 4, 2004 Historical			Jostens Seven Months Ended July 29, 2003 Historical		Von Hoffmann Seven Months Ended July 31, 2003 Historical		Arcade Seven Months Ended July 31, 2003 Historical			Pro Forma Adjustments			Pro Forma
		(In thousands, except for ratio)
Net sales		$	486,358		$	504,058	$	233,776	$	64,230		$	121,121	(a)	$	1,409,543
Cost of products sold			323,779			218,594		191,250		41,298			93,446	(b)		868,367
	Gross profit		162,579			285,464		42,526		22,932			27,675			541,176
Selling and administrative expenses			164,588			196,430		12,730		10,793			46,838	(c)		431,379
Transaction costs			226			30,960		—		—			(31,186	)(h)		—
Special charges			1,512			—		390		—			—			1,902
	Operating income (loss)		(3,747	)		58,074		29,406		12,139			12,023			107,895
Interest expense, net			66,691			32,446		23,640		15,056			(35,809	)(d)		102,024
Loss on redemption of debt			503			13,878		—		1,015			(15,396	)(e)		—
Other expense			325			—		287		266			262	(f)		1,140
	Income (loss) from continuing operations before income taxes		(71,266	)		11,750		5,479		(4,198	)		62,966			4,731
Provision (benefit) for income taxes			(19,618	)		8,695		2,252		804			11,084	(g)		3,217
Income (loss) from continuing operations		$	(51,648	)	$	3,055	$	3,227	$	(5,002	)	$	51,882		$	1,514
Other Financial Data:
Ratio of earnings to fixed charges																1.0	x(i)

See the accompanying notes to the unaudited pro forma condensed consolidated statement of income.

11

JOSTENS IH CORP.

Unaudited Pro Forma Condensed Consolidated Statement of Income

		Six Months Ended July 3, 2004
		Combined JIHC Historical		Pro Forma Adjustments			Pro Forma
		(In thousands, except for ratio)
Net sales		$	810,785	$	47,010	(a)	$	857,795
Cost of products sold			482,759		13,463	(b)		496,222
	Gross profit		328,026		33,547			361,573
Selling and administrative expenses			235,502		7,539	(c)		243,041
Special charges			1,229		—			1,229
	Operating income		91,295		26,008			117,303
Interest expense, net			77,759		(26,936	)(d)		50,823
Loss on redemption of debt			420		(420	)(e)		—
Other expense			158		—	(f)		158
	Income from continuing operations before income taxes		12,958		53,364			66,322
Provision for income taxes			3,526		41,573	(g)		45,099
Income from continuing operations		$	9,432	$	11,791		$	21,223
Other Financial Data:
Ratio of earnings to fixed charges								2.3	x(i)

See the accompanying notes to the unaudited pro forma condensed consolidated statement of income.

12

JOSTENS IH CORP.

Unaudited Pro Forma Condensed Consolidated Statement of Income

		Six Months Ended June 28, 2003
		JIHC Historical		Von Hoffmann Historical		Arcade Historical			Adjustments			Pro Forma
		(In thousands)
Net sales		$	496,460	$	198,114	$	53,263		$	67,316	(a)	$	815,153
Cost of products sold			211,750		161,902		34,664			56,506	(b)		464,822
	Gross profit		284,710		36,212		18,599			10,810			350,331
Selling and administrative expenses			180,047		11,089		9,138			32,390	(c)		232,664
Special charges			—		334		—			—			334
	Operating income		104,663		24,789		9,461			(21,580	)		117,333
Interest expense, net			27,475		20,276		11,708			(8,719	)(d)		50,740
Loss on redemption of debt			—		—		1,015			(1,015	)(e)		—
Other expense			—		288		233			69	(f)		590
	Income (loss) from continuing operations before income taxes		77,188		4,225		(3,495	)		(11,915	)		66,003
Provision for income taxes			32,079		1,738		182			10,883	(g)		44,882
Income (loss) from continuing operations		$	45,109	$	2,487	$	(3,677	)	$	(22,798	)	$	21,121

See the accompanying notes to the unaudited pro forma condensed consolidated statement of income.

13

JOSTENS IH CORP.

Notes to Unaudited Pro Forma Condensed Consolidated Statement of Income

(In thousands)

(a)

Represents adjustments to net sales consisting of:

					Six Months Ended
	Fiscal Year
					June 28, 2003		July 3, 2004
	2002		2003
Lehigh Press Acquisition(1)	$	118,741	$	104,815	$	67,316	$	—
Lehigh Direct reclassification(2)		—		16,306		—		47,010
	$	118,741	$	121,121	$	67,316	$	47,010

(1)

Reflects sales of Lehigh Press prior to the Lehigh Press Acquisition.



(2)

Reclassification of sales of Lehigh Direct, which was reported as a discontinued operation in the historical financial results of Von Hoffmann. In connection with the Transactions, Lehigh Direct will no longer be treated as a discontinued operation.

(b)

Represents adjustments to cost of products sold consisting of:

						Six Months Ended
	Fiscal Year
						June 28, 2003		July 3, 2004
	2002		2003
Jostens historical purchase accounting adjustments(1)	$	—	$	(43,330	)	$	—	$	(38,278	)
Jostens depreciation expense(2)		7,908		7,908			4,012		3,584
Jostens order backlog intangible(3)		36,900		36,900			2,400		11,800
Lehigh Press Acquisition(4)		88,022		79,256			50,001		—
Lehigh Direct reclassification(5)		—		12,047			—		34,049
Lehigh Press depreciation expense(6)		201		665			93		2,308
	$	133,031	$	93,446		$	56,506	$	13,463

(1)

Elimination of Jostens' historical purchase accounting adjustments recorded in connection with the 2003 Jostens Merger in the period from July 30, 2003 to July 3, 2004. The adjustment eliminates the effect of amortization of purchase price allocated to the order backlog intangible asset of $2,190 and $34,400 for the fiscal year ended January 3, 2004 and the six months ended July 3, 2004, respectively, incremental depreciation as a result of the write-up of property, plant and equipment of $3,393 and $3,858 for the fiscal year 2003 and the six months ended July 3, 2004, respectively, and sale of inventory of $37,747 for fiscal year 2003.



(2)

Incremental Jostens' depreciation as a result of the purchase price allocated to property, plant and equipment, in applying purchase accounting in connection with the 2003 Jostens Merger, depreciated over the remaining useful lives.



(3)

Reflects Jostens' amortization of purchase price allocated to order backlog intangible, in applying purchase accounting in connection with the 2003 Jostens Merger, as product in backlog is delivered to customers over a 17 month period.



(4)

Reflects cost of products sold related to sales adjustment in (a)(1) above.



(5)

Reclassification of cost of products sold related to sales adjustment in (a)(2) above.

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(6)

Incremental Lehigh Press depreciation as a result of the purchase price allocated to property, plant and equipment, in applying purchase accounting in connection with the Lehigh Press Acquisition, depreciated over the remaining useful lives.

(c)

Represents adjustments to selling and administrative expenses consisting of:

	Fiscal Year						Six Months Ended
	2002			2003			June 28, 2003			July 3, 2004
Jostens historical purchase accounting adjustments(1)	$	—		$	(17,312	)	$	—		$	(20,738	)
Jostens school relationship intangible(2)		33,505			33,505			16,438			16,438
Jostens internally developed software intangible(3)		3,398			3,398			1,699			1,736
Jostens patented/unpatented technology intangible(4)		3,713			3,713			1,820			1,820
Jostens depreciation expense(5)		580			580			(166	)		779
Lehigh Press Acquisition(6)		22,862			19,305			11,702			—
Lehigh Direct reclassification(7)		—			2,045			—			6,029
Lehigh Press depreciation(8)		(2	)		(13	)		(37	)		1,475
Lehigh Press amortization(9)		4,005			3,829			2,002			—
Lehigh Press shareholder expenses(10)		(2,315	)		(1,855	)		(895	)		—
Lehigh Press historical amortization(11)		(344	)		(357	)		(173	)		—
	$	65,402		$	46,838		$	32,390		$	7,539

(1)

Elimination of Jostens' historical purchase accounting adjustments recorded in connection with the 2003 Jostens Merger in the period from July 30, 2003 to July 3, 2004 related to amortization of purchase price allocated to intangibles in applying purchase accounting.



(2)

Reflects amortization over 10 years of purchase price allocated to school relationship intangible, in applying purchase accounting.



(3)

Reflects amortization over two to five years of purchase price allocated to internally developed software intangible, in applying purchase accounting.



(4)

Reflects amortization over three years of purchase price allocated to patented/unpatented technology intangible, in applying purchase accounting.



(5)

Incremental depreciation as a result of the purchase price allocated to property, plant and equipment, in applying purchase accounting in connection with the 2003 Jostens Merger, depreciated over the remaining useful lives.



(6)

Reflects selling and administrative expenses of Lehigh Press incurred prior to the Lehigh Press Acquisition.



(7)

Reclassification of selling and administrative expenses of Lehigh Direct that were reported as a discontinued operation in the historical financial results of Von Hoffmann. In connection with the Transactions, Lehigh Direct will no longer be treated as a discontinued operation.



(8)

Incremental Lehigh Press depreciation as a result of the purchase price allocated to property, plant and equipment, in applying purchase accounting, depreciated over the remaining useful lives.

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(9)

Amortization of purchase price allocated to Lehigh Press non-compete agreements and customer relationship intangibles, in applying purchase accounting in connection with the Lehigh Press Acquisition, over their estimated useful lives.



(10)

Elimination of compensation, fringe benefits and other costs directly associated with two Lehigh Press stockholders whose employment did not continue after completion of the Lehigh Press Acquisition.



(11)

Adjustment for elimination of compensation arrangements associated with these Lehigh Press stockholders.

(d)

Reflects pro forma interest expense resulting from our new capital structure based on an assumed London Interbank Offered Rate, or LIBOR, of 1.98% as follows:

	Fiscal Year						Six Months Ended
	2002			2003			June 28, 2003			July 3, 2004
Revolving credit facility(1)	$	1,871		$	1,871		$	531		$	1,144
Term Loan A Facility(2)		6,657			6,657			3,360			3,171
Term Loan B Facility(3)		41,100			41,100			20,576			20,421
New senior subordinated indebtedness(4)		42,500			42,500			21,250			21,250
Commitment fees(5)		1,041			1,041			566			497
Gold contract fees(6)		316			358			153			290
Other miscellaneous interest expense and fees(7)		4,568			1,313			712			458
Total cash interest expense		98,053			94,840			47,148			47,231
Amortization of capitalized debt issuance costs(8)		7,184			7,184			3,592			3,592
Total pro forma net interest expense		105,237			102,024			50,740			50,823
Less historical net interest expense		(130,013	)		(137,833	)		(59,459	)		(77,759	)
Net adjustment to net interest expense	$	(24,776	)	$	(35,809	)	$	(8,719	)	$	(26,936	)

(1)

Reflects pro forma interest expense on our new revolving credit facility assuming outstanding balances ranging from $18,000 to $96,000 and using an effective interest rate of LIBOR plus 2.50%.



(2)

Reflects pro forma interest expense on our new Term Loan A Facility assuming an initial outstanding balance of $150,000 and scheduled semi-annual amortization and using an effective interest rate of LIBOR plus 2.50%.



(3)

Reflects pro forma interest expense on our new Term Loan B Facility assuming an initial outstanding balance of $870,000 and scheduled semi-annual amortization and using an effective interest rate of LIBOR plus 2.75%.



(4)

Reflects pro forma interest expense on $500,000 of new senior subordinated indebtedness using an interest rate of 8.50%.



(5)

Reflects commitment fees of 0.50% on the undrawn balance of the $250,000 revolving credit facility.



(6)

Represents fees paid under our precious metals consignment arrangement in order to finance our gold inventory.

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(7)

Reflects miscellaneous interest expense related to payments of tax liabilities and deferred compensation arrangements as well as fees incurred to maintain operating bank accounts. For the fiscal year 2003, includes $2,860 for interest expense related to a settlement with the Internal Revenue Service.



(8)

Reflects non-cash amortization of capitalized debt issuance costs over the term of the our senior secured credit facilities.

A¹/8% change in the interest rate on our new indebtedness would have the following effect on pro forma interest expense:

					Six Months Ended
	Fiscal Year
					June 28, 2003		July 3, 2004
	2002		2003
New senior secured credit facilities	$	1,324	$	1,324	$	652	$	660
New senior subordinated indebtedness		625		625		312		312
	$	1,949	$	1,949	$	964	$	972

As of July 3, 2004, the estimated weighted average interest rate on our new borrowings is approximately 5.93%.

(e)

Represents elimination of the historical loss (gain) related to redemption of existing notes and credit facilities that was recorded during the applicable periods as a result of redemptions recorded during such periods. The existing notes and existing credit facilities are being repaid in connection with the Transactions.

(f)

Represents adjustments to other expense consisting of:

						Six Months Ended
	Fiscal Year
						June 28, 2003			July 3, 2004
	2002		2003
Lehigh Press Acquisition other expenses(1)	$	73	$	12,460		$	81		$	—
Lehigh Press Acquisition transaction expenses(2)		—		(12,186	)		—			—
Lehigh Press gain on disposal of fixed assets(3)		—		(12	)		(12	)		—
	$	73	$	262		$	69		$	—

(1)

Reflects other expenses of Lehigh Press incurred prior to or concurrently with the Lehigh Press Acquisition, including transaction expenses in connection with the Lehigh Press Acquisition.



(2)

Reflects expenses incurred by Lehigh Press in connection with the Lehigh Press Acquisition.



(3)

Reflects gain on disposal of fixed assets prior to the Lehigh Press Acquisition.

(g)

Reflects an effective tax rate of 68%. The effective tax rate is higher than the statutory rate due to the relatively large impact of permanent differences on relatively small pre-tax net income. The effective rate for the year is used to record tax expense on an interim basis through the year as required by generally accepted accounting principles. We have assumed a rate of 68% for 2002 for consistency purposes.

(h)

Represents elimination of transaction expenses related to the 2003 Jostens Merger.

(i)

For the purposes of calculating the ratio of earnings to fixed charges (and for any period subsequent to the adoption of SFAS 150, preferred stock dividends), earnings represent income (loss) from continuing operations before income taxes plus fixed charges. Fixed charges consist of interest expense (including capitalized interest) on all indebtedness plus amortization of debt issuance costs (and for any period subsequent to the adoption of SFAS 150, accretion of preferred stock dividends), and the portion of rental expense that we believe is representative of the interest component of rental expenses.

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CONTRACTUAL OBLIGATIONS AND CONTRACTUAL COMMITMENTS

        The following schedule summarizes our contractual obligations and commercial commitments as of July 3, 2004 on a pro forma basis:

		Payments Due by Calendar Year (In thousands)
Contractual Obligations
		Total		2004		2005		2006		2007		2008		2009		Thereafter
				(six months)
Notes		$	500,000	$	—	$	—	$	—	$	—	$	—	$	—	$	500,000
Term loans			1,020,000		—		19,950		19,950		23,700		23,700		23,700		909,000
Operating leases			27,716		4,346		7,612		5,525		3,689		3,155		1,973		1,416
Precious metals forward contracts			7,348		7,348		—		—		—		—		—		—
Foreign currency contracts			2,687		2,687		—		—		—		—		—		—
Minimum royalties			9,206		895		1,200		1,200		1,200		1,200		1,200		2,311
Purchase obligations			20,986		19,437		1,549		—		—		—		—		—
Other long-term obligations			750		—		750		—		—		—		—		—
	Total contractual cash obligations	$	1,588,693	$	34,713	$	31,061	$	26,675	$	28,589	$	28,055	$	26,873	$	1,412,727

        In addition, Jostens, Von Hoffmann and Arcade had $10.8 million, $3.4 million and $0.4 million, respectively, outstanding in the form of letters of credit, on July 3, 2004. The notes and term loans shown above exclude interest payments.

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QuickLinks

Exhibit 99.1

SUPPLEMENTAL REGULATION FD DISCLOSURE
DEFINITIONS
MARKET DATA
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
SELECTED BUSINESS INFORMATION
THE TRANSACTIONS
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL DATA
JOSTENS IH CORP. Unaudited Pro Forma Condensed Consolidated Balance Sheet
JOSTENS IH CORP. Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet (In thousands)
JOSTENS IH CORP. Unaudited Pro Forma Condensed Consolidated Statement of Income
JOSTENS IH CORP. Unaudited Pro Forma Condensed Consolidated Statement of Income Fiscal Year 2003
JOSTENS IH CORP. Unaudited Pro Forma Condensed Consolidated Statement of Income
JOSTENS IH CORP. Unaudited Pro Forma Condensed Consolidated Statement of Income
JOSTENS IH CORP. Notes to Unaudited Pro Forma Condensed Consolidated Statement of Income (In thousands)
CONTRACTUAL OBLIGATIONS AND CONTRACTUAL COMMITMENTS