VIRCO MFG CORPORATION — Proxy Solicitation & Information Statement 2005

May 5, 2005

DEF 14A 1 v08550ddef14a.htm VIRCO MFG. CORP. def14a PAGEBREAK

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SCHEDULE 14A

(Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION

PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934

Filed by the Registrant þ Filed by a Party other than the Registrant ¨

Check the appropriate box: — ¨ Preliminary Proxy Statement	Confidential, for Use of the Commission Only (as
þ Definitive Proxy Statement	permitted by Rule 14a-6(e)(2))
¨ Definitive Additional Materials
¨ Soliciting Material Pursuant to §240.14a-12

VIRCO MFG. CORPORATION

(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

þ	No fee required.
¨	Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.

(1) Title of each class of securities to which transaction applies:

(2) Aggregate number of securities to which transaction applies:

(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 :

(4) Proposed maximum aggregate value of transaction:

(5) Total fee paid:

¨ Fee paid previously with preliminary materials.

| ¨ | Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the
date of its filing. |
| --- | --- |
| (1) | Amount Previously Paid: |

(2) Form, Schedule or Registration Statement No.:

(3) Filing Party:

(4) Date Filed:

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Virco Mfg. Corporation

2027 Harpers Way

Torrance, California 90501

link1 "NOTICE OF ANNUAL MEETING OF STOCKHOLDERS"

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

To Be Held on June 7, 2005

The Annual Meeting of Stockholders of Virco Mfg. Corporation, a Delaware corporation, will be held at 10:00 a.m. on Tuesday, June 7, 2005, at 2027 Harpers Way, Torrance, California, for the following purposes:

| 1. To elect three directors to serve until the 2008 Annual
Meeting of Stockholders and until their successors are elected
and qualified; |
| --- |
| 2. To ratify the appointment of Ernst & Young LLP
as the Company’s independent auditors for fiscal year 2005;
and |
| 3. To transact such other business as may properly come
before the meeting. |

These items are more fully described in the following pages, which are made part of this notice.

The Board of Directors has fixed the close of business on April 22, 2005, as the record date for the determination of stockholders entitled to notice of and to vote at the Annual Meeting and any adjournments and postponements thereof. To ensure that your vote is recorded promptly, please vote as soon as possible, even if you plan to attend the annual meeting. Most stockholders have three options for submitting their vote: (1) via the Internet, (2) by phone or (3) by mail, using the paper proxy card. For further details, see your proxy card. If you have Internet access, we encourage you to record your vote on the Internet . It is convenient for you, and it also saves your Company significant postage and processing costs.

By Order of the Board of Directors
/s/ Robert E. Dose
Robert E. Dose
Secretary

Torrance, California

May 4, 2005

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TOC

TABLE OF CONTENTS

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS	1
PROXY STATEMENT	1
GENERAL INFORMATION	1
RECORD DATE AND VOTING	1
PROPOSAL 1 ELECTION OF DIRECTORS	2
BOARD COMMITTEES, MEETINGS &
COMPENSATION	3
SECURITY OWNERSHIP	5
EXECUTIVE COMPENSATION	7
EMPLOYMENT CONTRACTS AND CHANGE OF CONTROL
ARRANGEMENTS	10
COMPENSATION COMMITTEE INTERLOCKS AND
INSIDER PARTICIPATION	10
CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS	10
REPORT ON EXECUTIVE COMPENSATION	11
REPORT OF THE AUDIT COMMITTEE	12
STOCKHOLDER RETURN PERFORMANCE
PRESENTATION	13
RELATIONSHIP WITH INDEPENDENT AUDITORS	14
PROPOSAL 2 RATIFICATION OF APPOINTMENT OF
INDEPENDENT AUDITORS	15

/TOC

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TOC /TOC

Virco Mfg. Corporation

2027 Harpers Way

Torrance, California 90501

link1 "PROXY STATEMENT"

PROXY STATEMENT

link1 "ANNUAL MEETING OF STOCKHOLDERS, June 7, 2005"

ANNUAL MEETING OF STOCKHOLDERS, June 7, 2005

link1 "GENERAL INFORMATION"

GENERAL INFORMATION

This Proxy Statement is being mailed to stockholders of Virco Mfg. Corporation, a Delaware corporation (the “Company”), on or about May 10, 2005, in connection with the solicitation by the Board of Directors of proxies to be used at the Annual Meeting of Stockholders of the Company to be held on Tuesday, June 7, 2005 at 10:00 a.m at 2027 Harpers Way, Torrance, California, and any and all adjournments and postponements thereof.

The cost of preparing, assembling and mailing the Notice of Annual Meeting of Stockholders, Proxy Statement and form of proxy and the solicitation of proxies will be paid by the Company. Proxies may be solicited in person or by telephone, telegraph, e-mail or other electronic means by personnel of the Company who will not receive any additional compensation for such solicitation. The Company will pay brokers or other persons holding stock in their names or the names of their nominees for the expenses of forwarding soliciting material to their principals.

link1 "RECORD DATE AND VOTING"

RECORD DATE AND VOTING

The close of business on April 22, 2005, has been fixed as the record date for the determination of stockholders entitled to notice of and to vote at the meeting. On that date there were 13,099,825 shares of the Company’s Common Stock, par value $.01 per share, outstanding. All voting rights are vested exclusively in the holders of the Company’s Common Stock. Each share is entitled to one vote on any matter that may be presented for consideration and action by the stockholders, except that as to the election of directors, stockholders may cumulate their votes. Because three directors are to be elected, cumulative voting means that each stockholder may cast a number of votes equal to three times the number of shares actually owned. That number of votes may be cast for one nominee, divided equally among each of the nominees or divided among the nominees in any other manner. The proxy holders will have authority, in their discretion, to vote cumulatively for less than all of the nominees.

In all matters other than the election of directors, the affirmative vote of the majority of shares of Common Stock present in person or represented by proxy at the meeting and entitled to vote on the subject matter would be the act of the stockholders. Directors will be elected by a plurality of the votes of the Common Stock present in person or represented by proxy. Abstentions will be treated as the equivalent of a negative vote for the purpose of determining whether a proposal has been adopted and will have no effect for the purpose of determining whether a director has been elected. Broker non-votes are not counted for the purpose of determining the votes cast on a proposal.

Proxies will be voted for management’s nominees for election as directors and in accordance with the recommendations of the Board of Directors contained in the Proxy Statement, unless the stockholder otherwise directs in his or her proxy. Where the stockholder has appropriately directed how the proxy is to be voted, it will be voted according to his or her direction. Any stockholder has the power to revoke his or her proxy at any time before it is voted at the meeting by submitting written notice of revocation to the Secretary of the Company at 2027 Harpers Way, Torrance, California 90501, by filing a duly executed proxy bearing a later date, either in person at the annual meeting, via the Internet, by telephone, or by mail. Please consult the instructions included with your proxy card.

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link1 "PROPOSAL 1 ELECTION OF DIRECTORS"

PROPOSAL 1

ELECTION OF DIRECTORS

The Certificate of Incorporation of the Company provides for the division of the Board of Directors into three classes as nearly equal in number as possible. In accordance with the Certificate of Incorporation, the Board of Directors has nominated Donald S. Friesz, Glen D. Parish and James R. Wilburn (each of whom is currently a director) to serve as directors in Class II of the Board of Directors with a term expiring in 2008.

It is intended that the proxies solicited by this Proxy Statement will be voted in favor of the election of Messrs. Friesz, Parish and Wilburn, unless authority to do so is withheld. Should any of such nominees be unable to serve as a director or should any additional vacancy occur before the election (which events are not anticipated), proxies may be voted for a substitute nominee selected by the Board of Directors or the authorized number of directors may be reduced. If for any reason the authorized number of directors is reduced, the proxies will be voted, in the absence of instructions to the contrary, for the election of the remaining nominees named in this Proxy Statement. In the event that any person other than the nominees named below should be nominated for election as a director, the proxies may be voted cumulatively for less than all of the nominees.

The following table sets forth certain information with respect to each of the nominees, as well as each of the six continuing directors. The Board of Directors recommends that you vote “FOR” the election of the Class II nominees.

Name	Age	Principal Occupation	Director — Since
Nominees for Directors Whose Terms Expire in 2008:
Donald S. Friesz	75	Vice President Sales and Marketing of the Company from 1982 to
February 1996. Mr. Friesz has been retired since 1996.	1992
Glen D. Parish	67	Vice President of the Company and General Manager of the Conway
Division from 1999 to 2004; previously Vice President of Conway
Sales and Marketing. Mr. Parish has been retired since 2004.	1999
James R. Wilburn	72	Dean of the School of Public Policy, Pepperdine University,
since September 1997; previously Dean of the School of Business
and Management, Pepperdine University (1982-1994); Professor of
Business Strategy, Pepperdine University (1994-1996); director
of First Fidelity Thrift since February 1995.	1986
Continuing Directors Whose Terms Expire in 2006:
Robert A. Virtue	72	Chairman of the Board and Chief Executive Officer of the Company
since 1990; President of the Company since August 1982.	1956
Robert K. Montgomery	66	Partner of Gibson, Dunn & Crutcher LLP law firm since 1971.	2000
Donald A. Patrick	80	Vice President and founder of Diversified Business Resources,
Inc. (mergers, acquisitions and business consultants) since 1988.	1983

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Name	Age	Principal Occupation	Director — Since
Continuing Directors Whose Terms Expire in 2007:
Douglas A. Virtue	46	Executive Vice President of the Company since December 1997;
previously General Manager of the Torrance Division of the
Company	1992
Evan M. Gruber	51	Chief Executive Officer and Chairman of the Board of Class
Leasing, Inc. since 2004; previously Chief Executive Officer and
Chairman of the Board of Modtech Holdings, Inc.	2002
Albert J. Moyer	61	Board member of QAD Inc., LaserCard Corporation, Collectors
Universe, Inc. and California Amplifier, Inc.; Chief Financial
Officer for QAD Inc. (1998-2000); President of the commercial
division of the Profit Recovery Group International, Inc.
(2000); consultant to QAD Inc. (2000-2002); Chief Financial
Officer of Allergan Inc. (1995-1998)	2004

link1 "BOARD COMMITTEES, MEETINGS & COMPENSATION"

BOARD COMMITTEES, MEETINGS & COMPENSATION

Each director of the Company serving in 2004 attended at least 75% of the 2004 meetings of the Board of Directors and each committee on which he served. The Board of Directors held 6 meetings in 2004. The following directors are “independent” as defined by the American Stock Exchange listing standards, which constitutes a majority of the Board of Directors: Messrs. Friesz, Gruber, Moyer, Montgomery, Patrick and Wilburn. Directors who are also officers of the Company receive no additional compensation for their services as directors. Other directors received a retainer of $4,000 per quarter, an additional annual retainer of $2,000 per year for Committee chairmen, a fee of $1,000 for each Board meeting, a fee of $500 for each telephonic Board meeting and a fee of $750 for each committee meeting attended. In 2004, Messrs. Friesz, Gruber, Moyer, Montgomery, Patrick and Wilburn each received options to purchase 2,000 shares of Common Stock at $6.89 per share. The Company has established a pension plan for non-employee directors who have served as such for at least 10 years, providing for a series of quarterly payments (equal to the portion paid to the non-employee directors’ annual service fee) for such director’s lifetime following the date on which such director ceases to be a director for any reason other than death. Effective December 31, 2003, the Company froze all future benefit accruals under the Plan.

The Board of Directors has an Audit Committee that in 2004 was composed of Messrs. Gruber (Chair) Friesz, Moyer and Patrick. The Audit Committee held three on-site meetings and six telephonic meetings in 2004. The Audit Committee acts pursuant to a written charter adopted by the Board of Directors. The functions of the Audit Committee include reviewing the financial statements of the Company, the scope of the annual audit by the Company’s independent auditors and the audit reports rendered by such independent auditors. The Audit Committee also has the other responsibilities enumerated in its charter, and examines and considers additional matters as it deems appropriate. The Audit Committee’s charter is available to stockholders on our website, at www.virco.com. Each of the Audit Committee members is an “independent director” as defined by the listing standards of the American Stock Exchange. The Board of Directors has determined that Mr. Gruber, who is the chair of the Audit Committee, qualifies as the “audit committee financial expert”, as that term is defined in Item 401(h)(2) of Regulation S-K of the Securities Exchange Act of 1934. The Board reevaluates the composition of the Audit Committee on an annual basis to ensure that its composition remains in the best interests of the Company and its stockholders.

The Board of Directors has a Compensation Committee that in 2004 was composed of Messrs. Patrick (Chair), Montgomery and Wilburn, all of whom are “independent” as defined in the listing standards of the American Stock Exchange. The function of this Committee is to make recommendations to the Board regarding changes in salaries and benefits. The Compensation Committee held two meetings in 2004. The Compensation Committee acts pursuant to a written charter adopted by the Board of Directors, a copy of which is available to stockholders on our website, at www.virco.com.

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The Board of Directors has a Corporate Governance/ Nominating Committee which is comprised of Messrs. Montgomery (Chair), Friesz, Gruber, Patrick, Moyer and Wilburn, all of whom are non-management directors and “independent directors” as defined in the listing standards of the American Stock Exchange. During fiscal 2004, the Corporate Governance/ Nominating Committee held two meetings in executive sessions outside the presence of management and intends to do so in fiscal 2005 as well.

The Corporate Governance/ Nominating Committee’s function is to identify and recommend from time to time candidates for nomination for election as directors of the Company. Candidates may come to the attention of the Corporate Governance/ Nominating Committee through members of the Board of Directors, stockholders or other persons. Consideration of new Board nominee candidates typically involves a series of internal discussions, review of information concerning candidates and interviews with selected candidates. Candidates are evaluated at regular or special meetings, and may be considered at any point during the year, depending on the Company’s needs. The Corporate Governance/ Nominating Committee acts pursuant to a written charter adopted by the Board of Directors, a copy of which is available to stockholders on our website, at www.virco.com. In evaluating nominations, the Corporate Governance/ Nominating Committee considers a variety of criteria, including business experience and skills, independence, judgment, integrity, the ability to commit sufficient time and attention to Board of Directors activities and the absence of potential conflicts with the Company’s interests. The Corporate Governance/ Nominating Committee has not established any specific minimum qualification standards for nominees to the Board, although from time to time the Corporate Governance/ Nominating Committee may identify certain skills or attributes ( e.g., financial experience, business experience) as being particularly desirable to meet specific Board needs that may arise. To recommend a prospective nominee for the Corporate Governance/ Nominating Committee’s consideration, you may submit a candidate’s name and qualifications to Virco’s Corporate Secretary at 2027 Harpers Way, Torrance, California 90501.

Any stockholder interested in communicating with members of the Board of Directors or any of the committees of the Board of Directors may send written communications to the Board of Directors or any of the directors to the Company at 2027 Harpers Way, Torrance, California 90501, Attention: Robert E. Dose, Secretary. Communications received in writing are forwarded to the Board of Directors or to any individual director or directors to whom the communication is directed, unless, in his discretion, the Secretary determines that the communication is of a commercial or frivolous nature, is unduly hostile, threatening, illegal, does not reasonably relate to the Company or its business, or is otherwise inappropriate for the Board’s consideration. In such cases, some of that correspondence may be forwarded elsewhere in the Company for review and possible response. The Secretary has the authority to discard or disregard any inappropriate communications or to take other appropriate actions with respect to any such inappropriate communications. Directors are expected to attend the annual meetings of stockholders. Last year all directors attended the annual meeting.

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link1 "SECURITY OWNERSHIP"

SECURITY OWNERSHIP

Shares Owned By Management and Principal Stockholders

The following table sets forth information as of April 22, 2005 (unless otherwise indicated), relating to the beneficial ownership of the Company’s Common Stock (i) by each person known by the Company to own beneficially more than 5% of the outstanding shares of Common Stock of the Company, (ii) by each director or nominee of the Company, (iii) by each executive officer of the Company named in the Summary Compensation Table below and (iv) by all executive officers and directors of the Company as a group. The number of shares beneficially owned is deemed to include shares of Common Stock in which the persons named have or share either investment or voting power. Unless otherwise indicated, the mailing address of each of the persons named is 2027 Harpers Way, Torrance, California 90501.

	Amount and Nature — of Beneficial	Percent of
Name of Beneficial Owner	Ownership(1)	Class
Bruce S. Sherman/Gregg J. Powers(2)	1,606,071		12.26	%
Nancy Virtue-Cutshall(3)	929,896		7.10	%
Rodger Virtue	673,972		5.14	%
Kathleen Virtue-Young(4)	671,076		5.12	%
Robert A. Virtue	333,815		2.55	%
Chairman of the Board of Directors, Chief Executive Officer(5)
Douglas A. Virtue	567,960		4.34	%
Director, Executive Vice President
Donald S. Friesz	75,495		(6)
Director
Evan M. Gruber	4,020		(6)
Director
Albert J. Moyer	400		(6)
Director
Robert K. Montgomery	5,787		(6)
Director
Glen D. Parish	26,833		(6)
Director, Former Vice President, General Manager
Donald A. Patrick	63,659		(6)
Director
James R. Wilburn	21,224		(6)
Director
Robert E. Dose	52,680		(6)
Vice President Finance, Secretary, Treasurer
Lori L. Swafford	24,302		(6)
Vice President, Legal Affairs
Larry O. Wonder	32,293		(6)
Vice President, Sales
All executive officers and directors as a group (19 persons)	1,310,025	(7)	9.66	%(7)

(1) Except as indicated in the footnotes to this table and pursuant to applicable community property laws, to the knowledge of the Company, the persons named in this table have sole voting and investment power with respect to all shares beneficially owned by them. For purposes of this table, a person is deemed to have “beneficial ownership” as of a given date of any security that such person has the right to acquire within 60 days after such date. Amounts for Messrs. Robert Virtue, Douglas Virtue, Friesz, Gruber, Moyer, Montgomery, Parish, Patrick, Wilburn, Dose, Swafford, Wonder, and all executive officers and

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| | directors as a group, include 7,027, 5,658, 8,056, 2,520, 400,
5,787, 5,218, 10,591, 10,591, 41,799, 19,252, 23,758 and
210,832 shares issuable upon exercise of options,
respectively, and 13,703, 10,475, 0, 0, 0, 0, 6,384, 0, 0,
5,501, 961, 6,565 and 46,403 shares held under the
Company’s 401(k) Plan as of April 22, 2005,
respectively. |
| --- | --- |
| (2) | As of February 14, 2005, according to public filings. Bruce
S. Sherman is Chief Executive Officer of Private Capital
Management, Inc. (“PCM”) and Gregg J. Powers is
President of PCM. In these capacities, Messrs. Sherman and
Powers exercise shared dispositive and voting power with respect
to 1,606,071 shares held by PCM’s clients and managed by
PCM. Mr. Sherman has sole dispositive and voting power with
respect to 50,123 shares. Messrs. Sherman and Powers
disclaim beneficial ownership for the shares held by PCM’s
clients and disclaim the existence of a group. The address for
Messrs. Sherman and Powers is 8889 Pelican Bay Blvd.,
Naples, Florida 34108. |
| (3) | Includes 345,463 shares held by a trust of which
Ms. Cutshall is the sole trustee. |
| (4) | Includes 159,153 shares held by a trust of which Ms. Young
is the trustee possessing both voting and dispositive power over
these shares. |
| (5) | Does not include 1,655,237 shares owned beneficially by
Mr. Robert Virtue’s adult children, including
Mr. Douglas Virtue, as to which Mr. Robert Virtue disclaims
beneficial ownership. |
| (6) | Less than 1%. |
| (7) | Douglas Virtue is Robert Virtue’s son. The total number of
shares beneficially owned by Mr. Robert A. Virtue, his
brothers Raymond W. Virtue and Richard J. Virtue, his sister,
Nancy Virtue-Cutshall, their children and their mother,
Mrs. Julian A. Virtue, aggregate 6,170,789 shares or 47.10%
of the total shares of Common Stock outstanding. Robert A.
Virtue, Richard J. Virtue, Raymond W. Virtue, Nancy
Virtue-Cutshall and certain of their respective spouses and
children (the “Stockholders”) and the Company have
entered into an agreement with respect to certain shares of the
Company’s Common Stock received by the Stockholders as
gifts from the founder, Julian A. Virtue, including shares
received in subsequent stock dividends in respect of such
shares. Under the agreement, each Stockholder who proposes to
sell any of such shares is required to provide the remaining
Stockholders notice of the terms of such proposed sale. Each of
the remaining Stockholders is entitled to purchase any or all of
such shares on the terms set forth in the notice. The Company
may purchase any shares not purchased by such remaining
Stockholders on such terms. The agreement also provides for a
similar right of first refusal in the event of the death or
bankruptcy of a Stockholder, except that the purchase price for
the shares is to be based upon the then prevailing sales price
of the Company’s Common Stock on the American Stock
Exchange. |

All information with respect to beneficial ownership of the shares referred to above is based upon filings made by the respective beneficial owners with the Securities and Exchange Commission or information provided to the Company by such beneficial owners.

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link1 "EXECUTIVE COMPENSATION"

EXECUTIVE COMPENSATION

Summary Compensation Table

The following table sets forth the compensation for services rendered in all capacities to the Company and its subsidiaries during the years indicated for the Chief Executive Officer and the other four most highly compensated officers of the Company:

				Long-Term
		Annual Compensation		Compensation
				Restricted
				Stock	All Other
Name and Principal Position	Year	Salary(1)	Bonus	Awards(2)	Compensation(3)
Robert A. Virtue	2004	$ 385,811	$ —	$ —	$ —
Chairman of the Board and	2003	393,923	—	—	9,400
Chief Executive Officer	2002	387,461	—	—	9,400
Robert E. Dose	2004	216,378	—	103,650	—
Vice President, Finance,	2003	202,553	—	—	4,700
Secretary and Treasurer	2002	186,825	—	—	4,500
Douglas A. Virtue	2004	214,903	—	—	—
Executive Vice President	2003	184,996	—	—	3,900
	2002	208,175	—	—	3,900
Larry O. Wonder	2004	203,235	—	103,650	3,900
Vice President, Sales	2003	189,754	—	—	3,900
	2002	181,677	—	—	3,900
Lori L. Swafford	2004	197,810	—	103,650	—
Vice President, Legal Affairs	2003	165,020	—	—	2,600
	2002	167,277	—	—	2,600

| (1) | Excludes compensation in the form of other personal benefits,
which, for each of the executive officers, did not exceed the
lesser of $50,000 or 10% of the total of annual salary and bonus
reported for each year. |
| --- | --- |
| (2) | Granted pursuant to the Company’s 1997 Stock Incentive
Plans. |
| (3) | Consists primarily of amounts representing the value of
Company-paid split-dollar premiums under the Management
Employees Life Insurance Plan. See “Management Employees
Life Insurance Plan” and “Executive Survivorship Life
Insurance Plan.” The foregoing amounts represent the
actuarial value of the benefit to the executive officers of the
current year’s insurance premium paid by the Company in
excess of that required to fund the death benefits under the
policies. Effective January 2004, the Company terminated the
life insurance plan, other than for one employee due to
extenuating circumstances. The Company intends to eliminate the
plan for active employees altogether prior to January 31,
2006. |

Option Grants in Last Fiscal Year

The Company did not grant any stock options or stock appreciation rights to any of the executive officers named in the Summary Compensation Table above during the fiscal year ended January 31, 2005.

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Aggregated Option Exercises and Year-End Option Values

Shown below is information relating to the exercise of stock options during the fiscal year ended January 31, 2005, for each executive officer of the Company named in the Summary Compensation Table above:

			Number of Unexercised — Options at	Value of Unexercised — In-the-Money Options
	Shares Acquired	Value	Fiscal Year-End	at Fiscal Year-End(1)
Name	on Exercise	Realized	(Exercisable/Unexercisable)	(Exercisable/Unexercisable)
Robert A. Virtue	—	$ —	7,027/—	$ —/ —
Robert E. Dose	—	—	41,799/—	32,295/—
Douglas A. Virtue	—	—	23,758/—	—/ —
Larry O. Wonder	—	—	5,685/—	5,496/—
Lori L. Swafford	—	—	19,252/—	—/ —

(1) Calculated using closing price on January 31, 2005 of $7.85.

Aggregated Restricted Stock Awards and Year-End Award Values

Shown below is information relating to the grant of restricted stock awards during the fiscal year ended January 31, 2005, for each executive officer of the Company named in the Summary Compensation Table above:

			Number of Unexercised — Awards at	Value of Unexercised — Awards at
	Shares Acquired	Value	Fiscal Year-End	Fiscal Year-End(1)
Name	on Exercise	Realized	(Exercisable/Unexercisable)	(Exercisable/Unexercisable)
Robert A. Virtue	—	$ —	—/—	$ —/—
Robert E. Dose	—	—	—/15,000	—/103,650
Douglas A. Virtue	—	—	—/—	—/—
Larry O. Wonder	—	—	—/15,000	—/103,650
Lori L. Swafford	—	—	—/15,000	—/103,650

(1) Calculated using closing price on January 31, 2005 of $7.85.

Securities Authorized for Issuance Under Equity Compensation Plans

The following table provides information with respect to compensation plans (including individual compensation arrangements) under which equity securities of Virco are authorized for issuance to employees or non-employees (such as directors, consultants, advisors, vendors, customers, suppliers or lenders), as of January 31, 2005:

			Number of securities
			remaining available for
			future issuance under
	Number of securities to	Weighted-average	equity compensation
	be issued upon exercise	exercise price of	plans (excluding
	of outstanding options,	outstanding options,	securities reflected in
Plan category	warrants and rights	warrants and rights	column (a))
	(a)	(b)	(c)
Equity compensation plans approved by security holders	368,000	$ 11.17	120,000
Equity compensation plans not approved by security holders	None	None	None
Total	368,000	$ 11.17	120,000

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Virco Important Performers Plan

In August 1985, the Board of Directors adopted the Virco Important Performers Plan (the “VIP Plan”), which is a nonqualified plan providing additional retirement and death benefits for certain employees identified by the Board of Directors or the committee administering the plan as contributing materially to the continued growth, development and future business of the Company. The VIP Plan provides that each officer or employee whose annual base salary exceeds $95,000 will be a participant in the plan. Benefits under the VIP Plan are payable to or on behalf of each participant upon retirement, normally at age 62, or upon death prior to retirement. The Company is funding its obligations under the VIP Plan through the purchase of life insurance policies on the participants.

Under the VIP Plan, each participant will receive a benefit payable at retirement equal to 50% of the average base salary during the last five years offset by the monthly benefit accrued under the Employees Retirement Plan. Retirement benefits provided under the plan vest 30% after three years of service and fully after 10 years of service. Participants with fewer than ten years of participation who retire after reaching age 62 will be entitled to a reduced pro rata benefits based on the number of years they have participated in the VIP Plan.

In the event of the death of a participant prior to retirement, death benefits are payable for a 15-year period to the deceased participant’s beneficiaries.

Effective December 31, 2003, the Company froze benefit accruals under the plan. It is the intent of the Company to restore a retirement benefit when the Company’s financial condition allows.

Employees Retirement Plan

The Employees Retirement Plan of the Company is a non-contributory, defined benefit retirement plan governed by the Employee Retirement Income Security Act of 1974. With limited exceptions, all employees of the Company and its participating subsidiaries (including executive officers) are eligible to participate provided they meet certain service requirements. Benefits are paid to or on behalf of each participant upon retirement, normally at age 65, and under certain circumstances upon death. Benefits under the plan are credited to the employee each year based upon years of service and remuneration during such year of service.

Retirement benefits vest partially after three years of service and fully after seven years of service, or upon the participant’s 65th birthday. Benefits payable under the plan are adjusted to reflect the form of payment elected by the participant. The following table shows the annual pension benefits for retirement at age 65 which would be payable to retiring employees with representative earnings and years of service:

link1 "Pension Plan Table"

Pension Plan Table

Assumed Average Compensation(3)	Years of Service(1)(2) — 10	20	30
$ 25,000	$ 2,260	$ 4,520	$ 6,780
50,000	4,760	9,520	14,280
75,000	7,260	14,520	21,780
100,000	9,760	19,520	29,280
125,000	12,260	24,520	36,780
150,000	14,760	29,520	44,280
175,000	15,760	31,519	47,279

| (1) | Represents annual retirement benefits payable at normal
retirement age. To the extent a participant’s service was
rendered prior to February 1, 1964, the effective date of
the plan, actual benefits will be slightly lower than the
benefits shown in the table. |
| --- | --- |
| (2) | The benefits shown are for straight-life annuity payments and
are not subject to deduction for Social Security or other offset
amounts; alternative forms of benefit payments are available
under the plan. |

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(3) Assumed average compensation is based upon regular base compensation before deduction for taxes or group insurance averaged for each year in the plan.

Messrs. Robert Virtue, Dose, Douglas Virtue, Wonder and Ms. Swafford have 47, 13, 18, 25 and 8 credited years of service and $75,000, $132,000, $103,000, $98,000 and $143,000 of assumed average compensation, respectively, under the plan. From time to time the Company may amend the formula used to determine the benefits applicable to certain management personnel who also participate in the VIP Plan. However, the effect of any such change may not result in a modification to such individual’s overall retirement benefits as determined under the VIP Plan, although a change may alter the plan under which such benefits are paid.

Effective December 31, 2003, the Company froze benefit accruals under the Plan. It is the intent of the Company to restore a retirement benefit when the Company’s financial condition allows.

Management Employees Life Insurance Plan

In August 1985, the Board of Directors adopted the Management Employees Life Insurance Plan, which provides for the Company to obtain life insurance policies on management employees selected by the Board. Effective January 2004, the Company terminated the life insurance plan, other than for one employee due to extenuating circumstances. The Company intends to eliminate the plan for active employees altogether prior to January 31, 2006.

Widow’s Salary Continuation Plan

In August 1985, the Board of Directors approved the Widow’s Salary Continuation Plan, which provides for surviving widow benefits to be paid by the Company upon the deaths of Messrs. Julian A. Virtue and Donald Heyl, the former Presidents of the Company. The widows of Mr. Virtue and Mr. Heyl are currently receiving $5,000 per month under the plan. In 2004, the Company paid $60,000 to each of Mrs. Virtue and Mrs. Heyl.

link1 "EMPLOYMENT CONTRACTS AND CHANGE OF CONTROL ARRANGEMENTS"

EMPLOYMENT CONTRACTS AND CHANGE OF CONTROL ARRANGEMENTS

None of Virco’s named executive officers has employment or severance arrangements.

link1 "COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION"

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

The Compensation Committee consists of Robert K. Montgomery, Donald A. Patrick and James R. Wilburn, none of whom is an officer or employee of the Company. Mr. Montgomery is a partner of the law firm Gibson, Dunn & Crutcher LLP, which has provided legal services to the Company. The Company expects that such law firm will continue to render legal services to the Company in the future.

CODE OF ETHICS

The Company has adopted a “Code of Ethics,” which is applicable to its chief executive officer and senior financial officers, including the principal accounting officer. The “Code of Ethics” is available on Virco’s website at www.virco.com. The Company intends to post amendments to or waivers under the Code of Ethics at this location on its website. Upon written request, the Company will provide a copy of the Code of Ethics free of charge. Requests should be directed to Virco Mfg. Corporation., 2027 Harpers Way, Torrance, California 90501, Attention: Robert E. Dose, Secretary.

link1 "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS"

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Robert K. Montgomery served in 2004 as a member of the Board of Directors of the Company as a Class III Director. Mr. Montgomery is a partner of the law firm Gibson, Dunn & Crutcher LLP, which has provided legal services to the Company. The Company expects that such law firm will continue to render legal services to the Company.

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link1 "REPORT ON EXECUTIVE COMPENSATION"

REPORT ON EXECUTIVE COMPENSATION

The Compensation Committee of the Board of Directors is responsible for developing the Company’s executive compensation policies and making recommendations to the Board of Directors with respect to these policies. In addition, the Committee makes annual recommendations to the Board of Directors concerning the compensation paid to the Chief Executive Officer and to each of the other executive officers of the Company.

Executive Compensation Policy

The goals of the Company’s executive compensation policy are to attract and retain qualified executives and to ensure that their efforts are directed toward the long-term interests of the Company and its stockholders. The Company is striving to generally position executive salaries at median competitive levels and to rely on variable, performance-based bonuses to play a significant role in determining total compensation. In addition, by establishing the 1993 and 1997 Stock Incentive Plans, the Company further linked executive and stockholder interests.

The Compensation Committee annually reviews salaries, bonuses and other aspects of executive compensation. In general, the purpose of such annual reviews is to ensure that the Company’s overall executive compensation program remains competitive with comparable businesses and that total executive pay reflects both the individual’s performance as well as the overall performance of the Company.

Base Salary

Each year, the performance of executives is reviewed and, based upon an assessment of individual performance, the Company’s performance, and a comparison of the Company’s executive compensation levels and plans with those of other companies in the furniture manufacturing business, a salary increase may be awarded. In 2004, based upon such review, the Compensation Committee concluded that certain Company’s executive salaries should be adjusted to perceived competitive levels, as well as the Compensation Committee’s evaluation of the overall performance of the Company and the performance of each executive officer.

The salary of Mr. Robert A. Virtue, the Company’s Chief Executive Officer, was determined on the foregoing basis. In addition to consideration of the salary levels of the chief executive officers of other furniture manufacturers, the Board considered the Company’s operating results in 2004, the Company’s stock performance, the effect of the general economy on the Company’s performance and the success of the Company in addressing certain goals.

Bonuses

Early each year the Board of Directors considers and approves an annual profit plan for the Company, which establishes a target level of overall Company profits, excluding certain non-recurring items. The bonuses payable to the Chief Executive Officer and the other executive officers are tied to the Company’s actual performance relative to the annual profit plan. In 2004, a consolidated bonus plan was utilized to determine the bonuses of divisional general managers, as well as the Chief Executive Officer and the other executive officers. In 2004, the Chief Executive Officer was eligible to receive a bonus equal to 45% of his salary, with a potential increase to up to 60% of his salary, and each of the executive officers was eligible to receive a bonus equal to 35% of his or her salary, with a potential increase to up to 50% of his or her salary, if the annual profit plan target level had been achieved. In general, the target bonus amount was subject to a 1%

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increase for each $100,000 that the Company’s actual profits exceeded the plan’s targeted profit level and a 1% decrease for each $50,000 that the plan’s targeted profit level exceeded the Company’s actual profits.

THE COMPENSATION COMMITTEE OF
THE BOARD OF DIRECTORS
Donald A. Patrick, Chair
Robert K. Montgomery
James R. Wilburn

The report of the Compensation Committee of the Board of Directors shall not be deemed incorporated by reference by any general statement incorporating by reference this proxy statement into any filing under the Securities Act of 1933 or under the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates this information by reference, and shall not otherwise be deemed filed under such Acts.

link1 "REPORT OF THE AUDIT COMMITTEE"

REPORT OF THE AUDIT COMMITTEE

The Audit Committee reviews the Company’s financial reporting process on behalf of the Board of Directors. Management has the primary responsibility for the financial statements and the reporting process. The Company’s independent auditors are responsible for expressing an opinion on the conformity of our audited financial statements with accounting principles generally accepted in the United States.

In this context, the Audit Committee has reviewed the audited financial statements included in the Company’s annual report to stockholders and incorporated by reference into its annual report on Form 10-K with management and the independent auditors, including their judgment of the quality and appropriateness of accounting principles, the reasonableness of significant judgments and the clarity of the disclosures in the financial statements. In addition, the Audit Committee has discussed with the independent auditors the matters required to be discussed by Statement on Auditing Standards No. 61 (Communication with Audit Committees), SEC rules, and other applicable standards. In addition, the Audit Committee has received from the independent auditors the written disclosures, pursuant to the Independence Standards Board Standard No. 1 (Independence Discussions with Audit Committees) and discussed with them their independence from the Company and its management. The Audit Committee has also considered whether the independent auditors provision of non-audit services to the Company is compatible with the auditor’s independence. The Audit Committee also reviewed and discussed with management its report on internal control over financial reporting and the related audit performed by the independent auditors which confirmed the effectiveness of the Company’s internal control over financial reporting.

In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board of Directors, and the Board has approved, that the audited financial statements be incorporated by reference in the Company’s Annual Report on SEC Form 10-K for the year ended January 31, 2005, for filing with the Securities and Exchange Commission.

THE AUDIT COMMITTEE OF
THE BOARD OF DIRECTORS
Evan M. Gruber, Chair
Donald S. Friesz
Donald A. Patrick
James R. Wilburn

The report of the Audit Committee of the Board of Directors shall not be deemed incorporated by reference by any general statement incorporating by reference this proxy statement into any filing under the Securities Act of 1933 or under the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates this information by reference, and shall not otherwise be deemed filed under such Acts.

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link1 "STOCKHOLDER RETURN PERFORMANCE PRESENTATION"

STOCKHOLDER RETURN PERFORMANCE PRESENTATION

The stock performance graph set forth below illustrates the Company’s performance in total stockholder return over the period February 1, 2000 through January 31, 2005, relative to the following external indices: (a) the American Stock Exchange market value index (“AMEX Market Index”) and (b) a peer group.(1) Each line on the stock performance graph assumes that $100.00 was invested in the Common Stock and the respective indices on February 1, 2000. The graph then tracks the value of these investments, assuming reinvestment of dividends, through January 31, 2005.

VIRCO MFG. CORPORATION	100.00	88.25	90.33	96.16	79.81	85.24
PEER GROUP	100.00	71.54	89.63	71.48	106.57	114.91
AMEX MARKET INDEX	100.00	105.08	92.41	91.05	127.50	136.92

The cumulative total return shown on the stock performance graph indicates historical results only and is not necessarily indicative of future results.

(1) The peer group comprises all companies identified by CoreData Industry Group 313 — Business Equipment — is as follows: American Locker Group, Cash Systems, Inc., Champion Industries Inc., Diebold Inc., Dorel Industries Inc. B, Falcon Products Inc., Fiberstars Inc., Franklin Electronic Publishers Incorporated, General Binding Corporation, Genlyte Group Inc., Global Payment Tech Inc., Gradco Systems Inc., Herman Miller Inc., Hon Industries Inc., Hypercom Corporation, International Lottery & Totalizer Systems, Inc., Kimball International, Knape & Vogt Manufacturing Company; Kronos Inc., Lipman Electronic Engine, LSI Industries Inc., Mity Enterprises Inc., Moneyflow Systems International, Nam Tai Electronics Inc., Par Technology Corporation, Pitney Bowes Inc., Steelcase Inc., Techlite Inc., Thomas Industries Inc., Ultradata Systems, Vitacube Systems Holdings, Xerox Corporation, and the Company.

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link1 "RELATIONSHIP WITH INDEPENDENT AUDITORS"

RELATIONSHIP WITH INDEPENDENT AUDITORS

Ernst & Young LLP, upon the recommendation of the Audit Committee of the Board of Directors of the Company, served as the accounting firm selected by the Board of Directors to examine the accounts of the Company for fiscal year 2004. The Audit Committee is directly responsible for the engagement of the outside auditor. In making its recommendation, the Audit Committee reviewed both the audit scope and estimated audit fees for the coming year. Each professional service performed by Ernst & Young LLP during the fiscal year ended January 31, 2005, was reviewed, and the possible effect of such service on the independence of the firm was considered, by the Audit Committee. Representatives of Ernst & Young LLP will be present at the Annual Meeting and will have an opportunity to make a statement if they desire to do so and will be available to respond to appropriate questions.

The Audit Committee has adopted policies and procedures for pre-approving all audit services, audit-related services, tax services and non-audit services performed by Ernst & Young LLP. Specifically, the Audit Committee has pre-approved the use of Ernst & Young LLP for detailed, specific types of services within the following categories: annual audits, quarterly reviews and statutory audits, preparation of certain corporate tax returns, regulatory implementation and compliance and risk assessment guidance. In each case, the Audit Committee has also set specific annual ranges or limits on the amount of each category of services which the Company would obtain from Ernst & Young LLP, which limits and amounts are established periodically by the Audit Committee. Any proposed services exceeding these levels or amounts require specific pre-approval by the Audit Committee. The Audit Committee monitors the performance of all services provided by the independent auditor, to determine whether such services are in compliance with the Company’s pre-approval policies and procedures.

Fees Paid to Ernst & Young LLP

The following table shows the fees that the Company paid or accrued for the audit and other services provided by Ernst & Young for fiscal years 2004 and 2003.

	2004	2003
Audit Fees	$ 609,000	$ 286,000
Audit-Related Fees	34,500	34,500
Tax Fees	45,250	45,062
All Other Fees	—	—
Total	$ 688,750	$ 365,562

Audit Fees. Audit fees are the aggregate fees for services of the independent registered public accounting firm for audits of our annual financial statements, the audit of management’s assessment of internal control over financial reporting and the independent registered accounting firm’s own audit of our internal control over financial reporting, including testing and compliance with Section 404 of the Sarbanes-Oxley Act, and review of our quarterly financial statements included in our Forms 10-Q, and services that are normally provided by the independent registered public accounting firm in connection with statutory and regulatory filings or engagements for those fiscal years.

Audit-Related Fees. Audit-related fees are those fees for services provided by the independent registered public accounting firm that are reasonably related to the performance of the audit or review of our financial statements and not included as audit fees. The services for the fees disclosed under this category include the audit of Virco’s 401K and Qualified Pension Plans.

Tax Fees. Tax fees are those fees for services provided by the independent registered public accounting firm, primarily in connection with the Company’s tax compliance activities, including technical tax advice related to the preparation of tax returns.

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link1 "PROPOSAL 2 RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS"

PROPOSAL 2

RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS

The Company’s Audit Committee has selected Ernst & Young LLP, independent auditors, to audit its financial statements for the fiscal year ending January 31, 2006, and recommends that the stockholders vote for ratification of that appointment. The Company’s Audit Committee has reviewed the professional services provided by Ernst & Young LLP, as described above, has considered the possible effect of such services on the independence of the firm, and has determined that such services have not affected Ernst & Young LLP’s independence. Notwithstanding this selection, the Board of Directors, in its discretion, may direct the appointment of new auditors at any time during the year if the Board of Directors feels that such a change would be in the best interests of the Company and its stockholders. If there is a negative vote on ratification, the Board of Directors will reconsider its selection.

The affirmative vote of a majority of the votes cast is required to ratify the Audit Committee’s selection. In addition, the affirmative votes must represent at least a majority of the required quorum. If the stockholders reject the selection, the Board of Directors will reconsider its selection. The Board of Directors unanimously recommends a vote “FOR” the ratification of the appointment of Ernst & Young LLP.

Other Matters

Compliance with Section 16(a) of the Securities Exchange Act of 1934. Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Company’s officers, directors and persons who own more than 10% of any equity security of the Company to file reports of ownership and changes in ownership with the Securities and Exchange Commission and to furnish copies of these reports to the Company. Based solely on a review of the copies of the forms that the Company received, the Company believes that all such forms required during the fiscal year ended January 31, 2005, were filed on a timely basis.

2006 Stockholder Proposal or Nominations. Proposals of stockholders intended to be presented at the 2006 Annual Meeting of Stockholders must be received by the Company by January 4, 2006, for inclusion in the Company’s proxy statement and form of proxy relating to that meeting.

Additional Matters Considered at Annual Meeting. The Board of Directors does not know of any matters to be presented at the 2005 Annual Meeting other than as stated herein. If other matters do properly come before the Annual Meeting, the persons named on the accompanying proxy card will vote the proxies in accordance with their judgment in such matters.

Availability of Annual Report. The Annual Report to the Stockholders of the Company for the fiscal year ended January 31, 2005, including financial statements, is being mailed to stockholders concurrently herewith and is also available online at http://www.virco.com

THE COMPANY WILL ALSO PROVIDE WITHOUT CHARGE A COPY OF ITS ANNUAL REPORT ON FORM 10-K, INCLUDING FINANCIAL STATEMENTS AND RELATED SCHEDULES, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, UPON WRITTEN OR ORAL REQUEST FROM ANY PERSON WHO WAS HOLDER OF RECORD, OR WHO REPRESENTS IN GOOD FAITH HE/ SHE WAS A BENEFICIAL OWNER, OF COMMON STOCK OF THE COMPANY ON APRIL 22, 2005. ANY SUCH REQUEST SHALL BE ADDRESSED TO THE COMPANY AT 2027 HARPERS WAY, TORRANCE, CALIFORNIA 90501, ATTENTION: CORPORATE SECRETARY OR BY CALLING (310) 533-0474.

By Order of the Board of Directors
/s/ Robert E. Dose
Robert E. Dose
Secretary

Torrance, California

May 4, 2005

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PROXY

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF VIRCO MFG. CORPORATION

The undersigned hereby appoints ROBERT A. VIRTUE, DOUGLAS A. VIRTUE and ROBERT E. DOSE, and each of them, with power to act without the other and with power of substitution, as proxies and attorneys-in-fact and hereby authorizes them to represent and vote, as provided on the other side, all the shares of Virco Mfg. Corporation Common Stock which the undersigned is entitled to vote, and, in their discretion, to vote upon such other business as may properly come before the Annual Meeting of Stockholders of the Company to be held June 7, 2005 or any adjournment or postponement thereof, with all powers which the undersigned would possess if present at the Meeting.

(Continued, and to be marked, dated and signed, on the other side)

Address Change/Comments (Mark the corresponding box on the reverse side)

5 Fold and detach here. 5

You can now access your VIRCO MFG. CORPORATION account online.

Access your Virco Mfg. Corporation stockholder account online via Investor ServiceDirect ® (ISD).

Mellon Investor Services LLC, agent for Virco Mfg. Corporation, now makes it easy and convenient to get current information on your stockholder account. After a simple and secure process of establishing a Personal Identification Number (PIN), you are ready to log in and access your account to:

•	View account status
•	View certificate history
•	View book-entry information

•	View payment history for dividends
•	Make address changes
•	Obtain a duplicate 1099 tax form
•	Establish/change your PIN

Visit us on the web at http://www.melloninvestor.com and follow the instructions shown on this page.

For Technical Assistance Call 1-877-978-7778 between 9am-7pm Monday-Friday Eastern Time

Investor ServiceDirect® is a registered trademark of Mellon Investor Services LLC

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THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, WILL BE VOTED “FOR” THE PROPOSALS THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

Mark Here for Address Change or Comments
SEE REVERSE SIDE

The Board of Directors recommends — a vote FOR item 1.		FOR	WITHHELD — FOR ALL
1.	Election of Directors Nominees:	o	o
01	Donald S. Friesz
02	Glen D. Parish
03	James R. Wilburn
Withheld for the nominees you list below: (Write that
nominee’s name in the space provided below.)

The Board of Directors recommends a vote FOR item 2.

2.	Ratification of Appointment of Independent Auditors	FOR — o	AGAINST — o	ABSTAIN — o

Signature Signature Dated:

NOTE: Please sign as name appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such.

5 Detach here from proxy voting card 5

Vote by Internet or Telephone or Mail

24 Hours a Day, 7 Days a Week

Telephone and Internet voting is available through 11:59 PM EST the day prior to annual meeting day.

Your telephone or Internet vote authorizes the named proxies to vote your shares in the same manner as if you marked, signed and returned your proxy card.

Internet http://www.proxyvoting.com/vir Use the Internet to vote your proxy. Have your proxy card in hand when you access the web site. OR Telephone 1-866-540-5760 Use any touch-tone telephone to vote your proxy. Have your proxy card in hand when you call. OR Mail Mark, sign and date your proxy card and return it in the enclosed postage-paid envelope.

If you vote your proxy by Internet or by telephone, you do NOT need to mail back your proxy card.

You can view the Annual Report and Proxy Statement on the internet at: http://www.virco.com/Pages/set1a.htm