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Business Description

PIP was a California corporation from June 28, 1968 until October 20, 1987 when it reincorporated under Delaware law and became a Delaware corporation. "PIP" refers to Postal Instant Press, the predecessor California Corporation, arid Postal Iristarit Press, Inc., the successor Delaware Corporation. In February 1989, PIP became a wholly-owned subsidiary of PIP Holdings Corporation ("PIP Holdings") by an Agreement and Plan of Merger, driginally dated as of March 30, 1988, and later amended (the "Merger Agreement"), among Pff, PiP Holdings (a company formed by a group of investors, including certain former executives of PIP), Kane-Miller Coip., a Delaware corporation ("Kane-MiHer"), certain stockholders of Kane-Miller, and PEP Acquisition Corporation, a wholly^owned subsidiary of PIP Holdings. In August 1992, PIP Holdings was rrierged into PiP, which was the surviving entity after the merger.

Prior Experience

PIP is a wholly owned subsidiary of FSI. FSI is a wholly owned subsidiary of KOAH, Inc., a Delaware corporation with its principal office in Armonk, New York (“KOAH”). KOAH also owns 100% of Kampgrounds of America, Inc., a Montana corporation (“KOA”) incorporated June 3, 1960, with its principal place of business at 550 North 3 P* Street, Billings, Montana 59101. Since its incorporation, KOA has franchised and owned campgrounds throughout the United States, Canada, Japan and Mexico. KOA has never offered nor owned any PIP Centers, KOA has not offered franchises in any other lines of business

Business Offered

PIP may permit you to open and operate 1 or more additional PEP Centers within your Territory (individually, a "PIP Satellite"); A PIP Satellite is usually a limited service PIP Center and you will provide services typically limited to retail order-taking, photocopying, desktop publishing and document creation. In a full service PIP Center, you will provide printing and other related services. You may only own and operate a.PIP Satellite if you already own and operate a full service PIP Center. You must sign a PIP Satellite Addendum (Exhibit C) for each PIP Satellite in your Territory. (Unless otherwise stated, PIP Centers and PIP Satellites means "PIP Centers" in this disclosure document.)

Initial Fees

If you are a prospective PIP Center Franchisee who does not already have an existing PiP Fr^mchise Agreement, you must pay an Initial Franchise Fee of $25,000. You pay a $10,000 deposit with your signed Franchise Agreement, and this deposit will be refimded to you if your desired Territory or your financing is not approved by PIP, or if PIP does not approve your application. Otherwise, the $10,000 deposit is ndn-reftmdable. You pay the balance of the franchisee fee of $15,000 upon approval of your financing, or if you are not applying for financing, before you attend the two-week initial training program. This pa>rnent of $15,000 is non-refundable

Financing

Niether PiP nor any PIP affiliate offers direct or indirgct financing to you.^ We dd nOt guarantee your notes lease or Obligation

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.